Kyrgyzstan, a central Asian nation sharing borders with China, is making strides in the realm of cryptocurrency mining, with the backing of its local government.
On July 27, Kyrgyz President Sadyr Japarov gave the green light to establish a crypto mining farm at the Kambar-Ata-2 Hydro Power Plant, as reported by Kyrgyzstan’s national news agency, Kabar.
The Kyrgyz government plans to invest up to $20 million in constructing this cryptocurrency mining facility.
President Japarov emphasized that operating such a farm would enable the government to utilize surplus power from the hydroelectric plant efficiently, thus avoiding energy losses.
Since the plant’s inception in 2010, Kyrgyzstan has lost a significant 6.8 billion kilowatt-hours of energy due to inefficiencies.
By harnessing the remaining energy for crypto mining, the Kyrgyz government aims to generate revenue that can benefit the country’s budget and ultimately benefit ordinary citizens.
President Japarov highlighted that the earnings from the mining farm will be closely monitored and used for the benefit of the people, emphasizing transparency and automation in the process.
However, the report seems to contradict recent energy-related developments in Kyrgyzstan.
On July 24, the Kyrgyz president announced a state of emergency in the country’s energy sector, scheduled to begin on August 1, 2023, and expected to last until December 31, 2026.
The emergency has been attributed to climate challenges, reduced water inflow into the Naryn River basin, and inadequate generating capacity due to soaring energy consumption.
Despite this, President Japarov asserts that crypto mining will be subjected to the highest tariff available in Kyrgyzstan, approximately 5 Kyrgyzstani soms ($0.057) per kilowatt-hour.
While the press office of the Kyrgyz government has not yet responded to media inquiries, it is evident that Kyrgyzstan’s authorities view cryptocurrency as a potential means to boost the country’s economy.
As early as March 2022, Kyrgyz lawmaker Karim Khanjeza advocated for the legalization of the cryptocurrency industry during a parliamentary committee meeting.
He urged the government to establish a legal framework for cryptocurrencies, emphasizing their rapid growth and potential economic benefits.
Despite some regulations introduced for crypto exchanges in 2021, Kyrgyzstan has yet to pass comprehensive laws concerning cryptocurrencies.
Additionally, a former government official previously claimed that cryptocurrency mining exacerbated Kyrgyzstan’s energy crisis.
In conclusion, Kyrgyzstan’s move to establish a cryptocurrency mining farm at a hydroelectric plant holds the promise of optimizing energy use and contributing to the country’s financial resources.
However, the decision comes amidst an ongoing energy crisis and raises questions about the nation’s energy priorities and sustainability in the long run.
Other Stories:
Crypto.com Receives Approval from Dutch Central Bank
Crypto Mining Firm Explores Initial Public Offering (IPO) in UAE
Former Twitter Product Director Exposes Peculiarities of Working Under Elon Musk
In a formal letter addressed to Apple CEO Tim Cook, United States Representatives Gus Bilirakis and Jan Schakowsky raised concerns regarding the potential impact of the company’s App Store guidelines on emerging technologies, particularly blockchain and nonfungible tokens (NFTs).
The lawmakers expressed worries that the guidelines might inadvertently hinder the progress and growth of cutting-edge innovations.
The lawmakers pointed out a discernible pattern in Apple’s approach to its App Store guidelines, wherein the company appeared to capitalize on crypto apps while simultaneously limiting their functionality.
This was achieved through the requirement of releasing “lite” versions of the apps, which generated profits for Apple but reduced the overall utility of the applications.
The specific case of Axie Infinity’s App Store experience was cited as evidence of this pattern.
By penning this letter, the lawmakers conveyed their concerns about the potential negative consequences of Apple’s policies on the United States’ standing in emerging technologies.
They highlighted that Apple justified these limitations as a measure to enhance security with a “walled garden” approach.
However, there was widespread concern that the company might be using the App Store as a tool to stifle competition.
READ MORE: Former Twitter Product Director Exposes Peculiarities of Working Under Elon Musk
The chairman and ranking member of the Innovation, Data, and Commerce Subcommittee stressed the importance of Congress comprehensively understanding the App Store guidelines and assessing the extent to which they may hinder innovation.
They also emphasized their commitment to promoting full transparency and holding Big Tech accountable for any monopolistic behavior.
Furthermore, the lawmakers expressed their intent to create a level playing field within the industry to ensure that American ingenuity can continue to thrive.
This is not the first time they have raised concerns about App Store policies, as they previously wrote a similar letter to Apple regarding guidelines concerning TikTok and other apps originating from China.
In conclusion, Representatives Bilirakis and Schakowsky are seeking information from Apple to understand the potential impact of the App Store guidelines on emerging technologies.
They are concerned that these guidelines may be hindering innovation and competition, and they are committed to promoting transparency and fairness within the industry to support American ingenuity.
Other Stories:
Crypto Mining Firm Explores Initial Public Offering (IPO) in UAE
Formerly a product director at Twitter, now identified only as X, has revealed new insights into the inner workings of the social media giant under entrepreneur Elon Musk’s leadership.
In a lengthy 2,400-word tweet and accompanying video, X described the pre-Musk era at Twitter as a mixture of “amazing and terrible,” plagued by bureaucracy.
However, under Musk’s leadership, the post-Musk Twitter has been a rollercoaster of challenges and drama.
X was among the few original members of the Twitter team who decided to stick around when Musk took over, hoping that his influence would steer the company in the right direction.
Unfortunately, she was one of the 200 employees who got laid off during Musk’s round of layoffs in February.
X initially viewed Musk as a bold and inspiring entrepreneur, responsible for creating successful companies like Tesla and SpaceX. She believed that Musk’s ownership could breathe new life into Twitter.
Despite Musk’s charm, X soon discovered that his leadership style had its downsides.
He often lacked empathy to a painful extent, and his unpredictability made employees afraid to share bad news or contradictory opinions with him.
This fear led to the formation of a fanatical inner circle that unquestionably supported everything Musk said.
Musk’s aversion to criticism led him to seek advice from unconventional sources, like polling Twitter, consulting friends, or even turning to his biographer for product advice.
READ MORE: Tennessee Realtor Couple Charged in $6M ‘Blessings of God Thru Crypto’ Investment Fraud
He seemed to trust random feedback more than the dedicated employees in the room who were experts in solving the company’s problems. This approach puzzled X and others.
Since Musk took over Twitter in October 2022, he introduced various crypto and finance-related features to the app.
Under the rebranded name “X,” Musk envisions turning the social media platform into an “everything app” with features like electric payments, voice calls, and a potential integration with the meme token Dogecoin (DOGE).
Cointelegraph reached out to Twitter for comments, but they did not receive an immediate response.
In conclusion, X’s revelations shed light on the challenges and peculiarities of working under Elon Musk’s leadership at Twitter.
While his bold and inspiring personality brought some optimism, his unpredictable and unresponsive nature created an environment of fear and an inner circle of unquestioning support.
Despite these hurdles, Musk continues to drive the company forward with ambitious plans for its future as “X.”
Other Stories:
Ripple’s Chief Legal Officer Dismisses Concerns of SEC Appeal, Predicts Further Victory
KuCoin Denies Layoff Rumors Amidst Crypto Industry Stabilization
Animoca Brands’ co-founder and executive chairman, Yat Siu, is optimistic about the potential of personalized Web3-based services, as his firm allocates $30 million for the neobank platform, hi.
Siu’s investment firm plans to support a Web3 app that integrates a cryptocurrency exchange, digital banking services, and a customizable nonfungible token (NFT)-styled crypto debit card, all within its growing ecosystem.
Speaking exclusively to Cointelegraph, Siu explained that hi’s vision for its NFT debit card aligns with his views on the interplay of culture and Web3.
Hi’s flagship Mastercard debit card, designed for crypto enthusiasts, allows users to personalize their physical cards with an NFT avatar they own.
Siu believes this reflects the ongoing shift towards personalization, empowering users to express themselves and showcase their individuality in innovative ways using Web3 technology.
One crucial aspect of the partnership is the potential to enhance the utility of various Web3 tokens and NFTs.
The hi ecosystem incorporates Web3-integrated financial applications and its hi protocol, an Ethereum Virtual Machine-compatible sidechain.
Furthermore, the collaboration aims to promote a “unique-human authentication mechanism” through the hi protocol’s proof of human identity solution.
Hi co-founder Sean Rac explained that this approach addresses the drawbacks of the Web2 era, where a few dominant companies controlled user data and identity as primary credential providers.
The hi protocol utilizes a dual-node structure, with identity validators verifying accounts owned by humans, while block producers secure the network.
This setup could pave the way for “human-only” networks and decentralized applications.
READ MORE :Ripple’s Chief Legal Officer Dismisses Concerns of SEC Appeal, Predicts Further Victory
The partnership will enable users to send and receive Animoca Web3 ecosystem tokens, including The Sandbox (SAND) and ApeCoin (APE). With over 3.5 million users, the Web3 app is gaining popularity.
The hi card service will allow users to make payments worldwide using a fiat or crypto debit card, leveraging Mastercard’s extensive network of about 90 million merchants.
By focusing on Web3, hi aims to enter the space previously shaped by neobanks like Revolut and N26.
This emphasis on Web3 is likely to attract proponents and enthusiasts, even those seeking a debit card to showcase their prized NFTs like Bored Ape Yacht Club, Meebit, or Pudgy Penguin.
Siu believes that investing in hi will bring new users to Web3 and bolster the adoption of Animoca’s own brands, such as The Sandbox.
The neobank has obtained approval as a virtual asset service provider (VASP) in Lithuania and is recognized as a digital currency operator by Italy’s payments service regulator.
While hi is establishing its presence in Asia, it is currently in the pre-registration phase to obtain a VASP license from the Hong Kong Securities and Futures Commission.
Animoca’s focus on blockchain gaming and Web3 projects remains strong, as evidenced by their ongoing pursuit of a regulatory license in Hong Kong for their proposed $1 billion metaverse fund.
The company continues to invest significantly in these burgeoning areas.
Other Stories:
Best Crypto Projects to Invest in For The Next Bull Run
Tennessee Realtor Couple Charged in $6M ‘Blessings of God Thru Crypto’ Investment Fraud
KuCoin Denies Layoff Rumors Amidst Crypto Industry Stabilization
The European Commission’s proposal for the Artificial Intelligence Act (AI Act) has undergone extensive negotiations between the Council of the European Union and the European Parliament.
However, the two legislative bodies face challenges due to differences on specific issues, including biometric surveillance.
In Germany, political groups and digital experts are raising concerns about the proposed changes to the AI Act.
Die Linke, a left-wing party in Germany, is calling for stricter regulation and transparency in European AI legislation.
They emphasize the need for consumer protection and want high-risk AI systems to be thoroughly checked by a supervisory authority before being launched on the market.
Die Linke also advocates for an explicit ban on biometric identification systems in public spaces and AI-driven election interference, among other measures.
On the other hand, the center-right coalition, known as “the Union,” prioritizes fostering innovation and openness in AI.
They believe that excessive regulation should be avoided and emphasize the importance of aligning with existing data protection and digital market regulations.
READ MORE: Tennessee Realtor Couple Charged in $6M ‘Blessings of God Thru Crypto’ Investment Fraud
The German AI Association (KI Bundesverband), representing innovative SMEs and startups, also advocates for openness to innovation but disagrees with the EU’s approach.
The association suggests a focus on mitigating real AI application threats and risks and protecting fundamental rights and European values.
Germany’s government supports the AI Act but aims to strike a balance between regulation and openness to innovation. They are implementing measures to promote German AI companies and continue advocating for an ambitious approach to AI testbeds during negotiations on the AI Act.
Despite these efforts, concerns arise that Europe might fall behind in AI compared to the dominance of U.S. and Chinese tech companies.
A feasibility study commissioned by the German Ministry for Economic Affairs and Climate Action explores the potential of large AI models for Germany, including the establishment of an AI supercomputing infrastructure to foster development.
Experts argue that Europe’s reliance on non-European software and services threatens its AI sovereignty.
They propose the creation of a globally recognized “CERN for AI” to facilitate cutting-edge research and attract talent, contributing to the success of “AI made in Europe.”
In conclusion, the negotiations on the AI Act continue to be complex due to differing perspectives. While Die Linke advocates for stricter regulation, the Union seeks to prioritize innovation.
Germany’s government is working to strike a balance between regulation and innovation, and the German AI Association calls for practical solutions to address AI risks.
To avoid falling behind, Europe must focus on fostering its AI landscape and investing in foundational technologies.
A shift in AI strategy and targeted public investments are essential for the success of “AI made in Europe.”
Other Stories:
Ripple’s Chief Legal Officer Dismisses Concerns of SEC Appeal, Predicts Further Victory
Best Crypto Projects to Invest in For The Next Bull Run
KuCoin Denies Layoff Rumors Amidst Crypto Industry Stabilization
Grayscale, a leading crypto fund manager, has called on the U.S. Securities and Exchange Commission (SEC) to approve all pending spot Bitcoin ETFs simultaneously, arguing that selective approval would grant an unfair advantage to certain proposals.
The request, articulated in a letter submitted by Grayscale’s Chief Legal Officer, Craig Salm, included their own application among the eight filings.
The letter proposed that the SEC could approve the spot ETFs based on precedents set for Bitcoin futures ETFs, as these fund types are closely linked.
Grayscale also refuted the SEC’s requirement for surveillance sharing agreements (SSAs) between the ETF providers and Coinbase, a leading crypto exchange, which aims to prevent market manipulation.
Recently, ETF filings from top financial companies, including Invesco, BlackRock, Valkyrie, VanEck, Wisdom, Fidelity, and ARK Invest, were updated to incorporate SSAs with Coinbase.
The SEC, in turn, had delayed the ETFs’ approval in June citing the absence of such agreements.
READ MORE: Best Crypto Projects to Invest in For The Next Bull Run
However, Grayscale contends that these SSAs are not requisite or sufficient under SEC standards as Coinbase is not a registered securities exchange, broker-dealer, or futures exchange.
Grayscale emphasized that the approval of the ETFs would mark a considerable but positive shift in the SEC’s standard application, warning against any discriminatory ‘first-mover’ benefits to certain proposals.
The firm’s Grayscale Bitcoin Trust (GBTC) currently has close to a million investors, tracking Bitcoin’s price.
Conversion to an ETF could yield billions in investor value, making Grayscale question the SEC’s rationale in withholding GBTC investors from a spot Bitcoin ETF.
The SEC rejected Grayscale’s application to convert the GBTC into a spot Bitcoin ETF last June, leading to a lawsuit by Grayscale against the regulator.
Grayscale accuses the SEC of inconsistency in handling similar investment vehicles, considering it an arbitrary act.
Other Stories:
KuCoin Denies Layoff Rumors Amidst Crypto Industry Stabilization
Tennessee Realtor Couple Charged in $6M ‘Blessings of God Thru Crypto’ Investment Fraud
Ripple’s Chief Legal Officer Dismisses Concerns of SEC Appeal, Predicts Further Victory
In a significant move, the Namibian government has officially reversed its previous decision to ban cryptocurrency exchanges in the country.
Instead, it has embraced a new law to regulate Virtual Asset Service Providers (VASPs) operating within its borders. The Namibia Virtual Assets Act 2023 was approved in the National Assembly on July 6 and signed by President Hage Geingob on July 14.
Subsequently, on July 21, the law was inserted into the Gazette of the Republic of Namibia, solidifying its implementation.
This groundbreaking legislation represents the first comprehensive framework in Namibia’s history that governs cryptocurrency-related activities.
The primary objective of the Namibia Virtual Assets Act is to establish a regulatory authority responsible for supervising and overseeing crypto exchanges within the country.
By doing so, the government aims to ensure consumer protection, curb market abuse, and address the risks associated with money laundering and terrorist financing.
The law sets out strict penalties for non-compliant VASPs, with potential fines of up to 10 million Namibian dollars (approximately $671,000) and a maximum prison sentence of 10 years.
However, it is worth noting that the country’s central bank, the Bank of Namibia, remains firm in its stance that cryptocurrencies will not be recognized as legal tender within Namibia.
READ MORE: Ripple CEO Brad Garlinghouse Criticizes SEC’s ‘Regulation by Enforcement’
The journey towards this regulatory environment started in May 2018 when the Bank of Namibia made a significant policy shift by revising its initial decision to ban cryptocurrency exchanges.
Since then, the government has been exploring ways to address the emerging digital asset landscape while safeguarding its citizens and financial system.
Namibia is not alone in its evolving approach to cryptocurrencies in Africa.
Earlier this month, South Africa’s financial regulator announced that all cryptocurrency exchanges in the country must obtain licenses by the end of 2023 to continue their operations legally.
Other African nations, such as Botswana, Kenya, Mauritius, and Seychelles, have also enacted laws to regulate cryptocurrency activities.
In contrast, some countries, including Cameroon, Ethiopia, Lesotho, Liberia, Republic of the Congo, Sierra Leone, Tanzania, and Zimbabwe, have chosen to ban cryptocurrencies altogether, according to information from the International Monetary Fund.
As for Namibia’s new Virtual Assets Act, it will come into force at a date determined by the Ministry of Finance, giving stakeholders time to prepare and adjust to the regulatory framework.
By embracing this progressive approach to cryptocurrencies, Namibia seeks to strike a balance between fostering innovation and protecting its financial system from potential risks associated with the digital asset market.
Other Stories:
Worldcoin Sparks Controversy As It Launches Ecosystem Token
Crypto Lending Firm Faces Service Disruption as Assets Seized by Regulator
On July 25, PacWest bank experienced a sudden and alarming flash crash, with its shares plummeting by 27%.
The stock value dropped from $10.33 to $7.50 during late trading, raising concerns among investors and the finance community. Some even feared it could mark the beginning of a banking collapse.
However, the panic was short-lived as share prices quickly rebounded during after-hours trading on the same day.
As of the time of writing, the stock had recovered and was priced at $10.10, as reported by Google Finance.
The reason behind the rapid recovery was the merger announcement between PacWest and the Banc of California on July 25.
Both banks appeared to be seeking stability in response to the turmoil that had affected the banking industry earlier in 2023.
The merger was an all-stock deal and received the backing of two private-equity firms, Warburg Pincus and Centerbridge.
These firms injected $400 million in equity, securing themselves a 19% stake in the newly combined business.
The merged entity is expected to hold assets worth approximately $36 billion, along with over $25 billion in total loans.
The market capitalization of PacWest stood at around $1.2 billion, while Banc of California’s was roughly $764 million.
READ MORE: Former FTX CEO Accepts Gag Order Amidst Trial
Following the merger, the combined market capitalization reached about $2 billion, as per Reuters.
Shareholders of PacWest will receive 0.66 shares of Banc of California common stock for each of their PacWest shares.
Additionally, the merged company plans to repay approximately $13 billion in wholesale borrowings, with the funds obtained from the sale of assets.
PacWest had faced a significant setback in May, witnessing a more than 60% plunge in its stock value.
This decline raised worries that the bank might be at risk of becoming the next one to fail in the United States.
Earlier in the year, Silicon Valley Bank, Signature Bank, and First Republic Bank had already collapsed.
Furthermore, in late June, the Federal Reserve’s emergency bank bailout loan facility, the Bank Term Funding Program, surpassed $100 billion, reflecting the severity of the challenges faced by the banking sector.
With the merger now underway and the backing of private-equity firms, PacWest and Banc of California aimed to fortify their positions and weather the storm that had shaken the financial landscape.
Investors and the market were keeping a close eye on their progress as they sought stability in an industry that had faced significant uncertainties and shocks.
Other Stories:
Ripple CEO Brad Garlinghouse Criticizes SEC’s ‘Regulation by Enforcement’
Worldcoin Sparks Controversy As It Launches Ecosystem Token
Crypto Lending Firm Faces Service Disruption as Assets Seized by Regulator
China’s central bank digital currency (CBDC), the digital yuan, is gaining traction as a pilot program takes flight.
Chinese business travelers are now able to use the CBDC to pay for flight tickets, thanks to a collaborative effort between China Merchants Bank and the Civil Aviation Administration of China.
The newly introduced digital yuan platform aims to streamline transactions for travelers within the aviation network.
Companies and entrepreneurs can now conveniently use the digital yuan to pay for business air tickets, while passengers can access new services through the platform.
Already, China Travel Service, based in Suzhou, has leveraged the platform to purchase tickets for its clients.
The official launch of the platform on July 18 was celebrated by the Civil Aviation Administration and China Merchants Bank, who called for more innovative applications of the CBDC within the civil aviation industry.
The People’s Bank of China has been actively promoting the use of the digital yuan in the country’s transportation network.
READ MORE: 2023 Ranking: 4 Best Crypto Projects To Invest In
Beijing Daxing International Airport and Beijing Capital International Airport had previously partnered for a cargo-related digital yuan initiative in 2022.
To further enhance the adoption of the digital yuan, upgrades have been made to railway networks, light rail connections, and metro systems within the CBDC’s pilot zone.
These upgrades now allow for seamless digital yuan payments, independent of power or network connections.
Moreover, bus routes within the zone have also been integrated to facilitate digital yuan payments. Earlier this year, several highway toll booths within the pilot zone started accepting the digital yuan as a payment method.
The city of Shenzhen has been at the forefront of digital yuan adoption, with nearly 36 million digital yuan wallets opened by residents. Impressively, over seven million new wallets were created since the start of 2023.
This widespread expansion of the CBDC pilot program across various sectors demonstrates China’s commitment to transforming its economy through the broad acceptance of the digital yuan.
As the digital yuan pilot program continues to grow, more sectors are likely to embrace the CBDC, further solidifying China’s position as a leader in the digital currency space.
With ongoing efforts to explore innovative applications, the digital yuan is poised to revolutionize the way transactions are conducted in the country’s aviation and transportation industries and beyond.
Other Stories:
Why You Should Be Bullish Despite Bitcoin Price Falling Below $30,000
Bitcoin Mining Companies Employ Derisking Strategies, Offload BTC to Exchanges
The United States Department of Justice (DoJ) has revealed plans to strengthen its efforts in combating crypto-related crimes by significantly increasing the resources of its crypto crime team.
The move comes as a response to the growing threat of cybercriminals utilizing cryptocurrencies for illicit activities.
In an announcement made on July 20, Principal Deputy Assistant Attorney General Nicole Argentieri unveiled the consolidation of two key DoJ teams: the Computer Crime and Intellectual Property Section (CCIPS) and the National Cryptocurrency Enforcement Team (NCET).
The NCET, described as an “enormously successful startup,” will be integrated into the CCIPS, providing it with access to additional resources and support.
The merger will lead to a substantial expansion of the team’s capacity to investigate and prosecute criminal offenses involving the abuse of cryptocurrencies.
The number of criminal division attorneys available to work on crypto-related cases is expected to more than double, as any CCIPS attorney may be assigned to handle NCET cases.
Explore the Crypto Intelligence Blockchain Council
This infusion of talent and expertise will bolster the unit’s efforts to tackle cybercrimes.
As part of the restructuring, the NCET will also welcome a new acting director. Claudia Quiroz, a former assistant attorney from the U.S.
Attorney’s Office for the Northern District of California and a deputy director of NCET since its inception, has been named as the new head of the team.
Quiroz’s experience and knowledge in the field make her a valuable asset in leading the charge against crypto-related criminal activities.
One of the primary areas of focus for the revamped team will be combating ransomware crimes.
Ransomware attacks have become a pervasive threat, and tracking criminals through their crypto payments will be a key strategy to prevent them from escaping justice.
By freezing or seizing illicit funds before they are sent to ransomware hotspots like Russia, the DoJ aims to disrupt the financial incentives that drive these criminal operations.
The NCET’s establishment in 2021 was part of the broader Cryptocurrency Enforcement Framework initiative by the DoJ.
Under the leadership of the former Director Eun Young Choi, the team concentrated on addressing thefts and hacks involving decentralized finance, with a particular emphasis on “chain bridges.”
With the expansion and consolidation of the crypto crime team, the DoJ seeks to send a clear message to cybercriminals that their illicit activities involving cryptocurrencies will not go unchecked.
By equipping the team with more resources, personnel, and a strong leader, the DoJ is taking significant steps to safeguard the integrity of the financial system and protect individuals and businesses from the threat of crypto-related crimes.
Other Stories:
Robert F. Kennedy Jr. Pledges to Back US Dollar with Bitcoin if Elected President
Bitcoin Mining Companies Employ Derisking Strategies, Offload BTC to Exchanges