Monochrome Asset Management, a crypto investment firm based in Australia, has made an update to its application, aiming to introduce a spot Bitcoin exchange-traded fund (ETF) on the Australian Securities Exchange (ASX) in collaboration with Vasco Trustees.
The newly proposed ETF, called the Monochrome Bitcoin ETF, will provide direct exposure to Bitcoin and Ether (ETH) for retail investors in Australia, as stated in the company’s announcement on July 14.
Monochrome CEO Jeff Yew explained in an interview with Cointelegraph that the Bitcoin ETF would allow Australian retail investors to engage with Bitcoin in a regulated environment, offering them the freedom to utilize this asset class as they see fit while operating within the established regulatory framework.
Yew emphasized the advantage of investor protection that comes with a regulated ETF, in contrast to unregulated exchanges where such safeguards may be lacking.
Yew further expressed his belief that the introduction of a Bitcoin ETF on the ASX would convey a significant message to traditional investors, signaling the end of the unregulated “Wild West” phase.
The ETF’s existence would assure investors of a familiar, structured, and protected environment, enhancing their confidence in the crypto market.
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Vasco, Monochrome’s “Responsible Entity Partner,” holds the necessary authorization under an Australian Financial Services Licence to offer regulated exposure to cryptocurrencies to retail investors, as outlined by the company.
Spot Bitcoin ETF applications have garnered considerable attention in the industry recently, particularly in the United States.
Over the past few weeks, major financial firms such as Fidelity, Invesco, Wisdom Tree, Valkyrie, and the $10 trillion asset management giant BlackRock have all submitted filings for spot Bitcoin ETFs, indicating growing interest in providing regulated exposure to digital assets.
The introduction of a Bitcoin ETF on the ASX through Monochrome Asset Management’s application update marks a significant step toward facilitating mainstream adoption and regulatory acceptance of cryptocurrencies in Australia.
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In a significant court ruling, Ripple Labs emerged victorious as the United States District Court for the Southern District of New York declared that XRP, the digital token associated with Ripple, is not a security.
This decision has reignited the excitement and enthusiasm surrounding the Ripple ecosystem. However, with the surge in XRP’s value, Ripple’s Chief Technology Officer, David Schwartz, felt compelled to issue a warning to potential investors.
The legal battle between Ripple and the United States Securities and Exchange Commission, which had been ongoing for two years, took a notable turn on July 13.
The court’s ruling, which removed the “security” label from XRP, had an immediate impact on the token’s market price.
Within a single day, XRP experienced a remarkable rally, surging over 70% and elevating its value from $0.47 to $0.82.
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This spike represents the most significant price increase for XRP in the past year.
Such hype surrounding cryptocurrencies and crypto ecosystems often attracts the attention of scammers seeking to exploit unsuspecting investors.
Schwartz, therefore, took to Twitter to caution against the surge in XRP-related scams.
He emphasized that there were no airdrops, giveaways, or special offers associated with the recent court ruling.
Due to Ripple’s widespread popularity and growing community, scammers frequently mimic the official Ripple website to promote fraudulent giveaways and airdrops.
Their intention is to deceive victims and gain access to their crypto wallets, enabling them to steal funds either immediately or at a later time.
In a related incident back in April 2023, a prominent YouTube creator, DidYouKnowGaming, faced a hacking attack that resulted in the promotion of XRP scams on their channel.
The hackers were able to exploit YouTube’s platform and gain control over the account, which had approximately 2.4 million subscribers.
Fortunately, with swift action from YouTube, the channel owner regained access and recovered the deleted videos.
However, the precise method employed by the hackers to breach YouTube’s security remains unknown.
As the court ruling on XRP’s security status brings renewed attention and value to the token, it is crucial for investors to remain vigilant and exercise caution.
The cryptocurrency ecosystem has unfortunately become a target for scammers seeking to take advantage of unsuspecting individuals.
It is essential to verify the authenticity of any promotional offers and be wary of suspicious activities to ensure the safety of one’s investments.
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United States DoJ Moves $299 Million Worth of Bitcoin in Recent Transactions
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The CEO of Digitex, Adam Todd, has been ordered by a United States federal court to pay approximately $16 million in disgorgement and penalties as a result of a case brought by the Commodity Futures Trading Commission (CFTC).
In a recent announcement on June 12, the CFTC stated that a judge in the U.S. District Court for the Southern District of Florida issued a default judgment against Todd and several affiliated companies, namely Digitex LLC, Digitex Limited, Digitex Software Limited, and Blockster Holdings Limited Corporation.
The judgment was made due to their failure to register with the CFTC and their involvement in manipulating the price of the DGTX token.
As part of the judgment, Todd and the four companies are prohibited from participating in any CFTC-regulated markets.
Additionally, they are required to pay $3,912,220 in disgorgement and a civil monetary penalty amounting to $11,736,660.
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Ian McGinley, the enforcement director of the CFTC, emphasized the commitment of the organization to ensuring the lawful registration of entities and addressing the manipulation of commodities in interstate commerce.
He stated, “Regardless of the technology used, the CFTC will aggressively use its well-established authority to ensure entities are lawfully registered and to address the manipulation of commodities in interstate commerce.”
According to McGinley, Todd allegedly employed a computerized bot to artificially inflate the price of DGTX. In 2020, Todd deployed this bot on third-party exchanges, resulting in the purchase of a larger quantity of the token than what was sold.
The charges against Todd and Digitex were filed by the commission in September 2022.
It is important to note that the $16 million order and any additional financial penalties imposed may not necessarily lead to repayment to Digitex users.
The CFTC, along with the U.S. Securities and Exchange Commission (SEC), is currently engaged in multiple civil suits against cryptocurrency firms and their executives for failing to comply with regulatory guidelines.
Among these cases are allegations against Binance, a popular cryptocurrency exchange, and civil charges against Sam Bankman-Fried, the former CEO of FTX.
The regulatory bodies are actively working to enforce compliance and maintain integrity in the crypto industry.
United States Senators Cynthia Lummis and Kirsten Gillibrand are set to reintroduce the Responsible Financial Innovation Act, a piece of legislation aimed at establishing a comprehensive regulatory framework for digital assets.
The bipartisan bill, which had been tabled in the previous session of Congress, will be reintroduced to the Senate on July 12.
The main objective of the Lummis-Gillibrand bill is to provide clarity on the roles of regulatory bodies such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission in overseeing digital assets.
Additionally, the legislation aims to enhance consumer protection measures within the digital asset space.
Originally introduced in June 2022, during a period marked by a significant crypto market crash, the bill seeks to address the aftermath of the market downturn.
It includes updates to the U.S. tax code that would allow the industry to finance its own oversight and implement safeguards to prevent events like the collapse of FTX, a crypto exchange that occurred after the bill’s initial introduction in November 2022.
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The legislation was prompted by the collapse of Terraform Labs, a South Korea-based firm, which experienced the depegging of its algorithmic stablecoin from the U.S. dollar.
As a response, the bill will require payment stablecoins to be exclusively issued by depository institutions.
Critics of U.S. regulators have argued that there is a lack of clarity in the regulatory environment, which allows firms to operate without fear of enforcement actions.
The Lummis-Gillibrand bill has garnered praise for its bipartisan approach during a time when some elected officials have politicized certain aspects of the crypto space.
While the Responsible Financial Innovation Act represents one option, other legislators in the House of Representatives have proposed alternative legislation to address the regulatory framework for cryptocurrencies.
A discussion draft released in June suggests limiting the SEC’s authority over crypto firms, while the House Financial Services Committee has drafted legislation proposing that the Federal Reserve become the primary regulator responsible for establishing stablecoin requirements.
Overall, the reintroduction of the Responsible Financial Innovation Act reflects ongoing efforts by U.S. lawmakers to develop a comprehensive and balanced regulatory framework for digital assets, with the aim of protecting consumers and promoting innovation within the industry.
Dapper Labs has recently announced its third round of staff layoffs within a span of less than a year.
On July 13, CEO Roham Gharegozlou revealed that the company had to bid farewell to 51 of its talented employees and referred to them as “brilliant colleagues and friends.”
This latest round of cuts affected both full-time staff members and C1 contractors.
Gharegozlou acknowledged the difficulty of this decision, particularly due to the exceptional individuals impacted by it.
However, he emphasized the necessity of the cuts to ensure the company’s efficiency and streamlined operations. Despite the layoffs, Gharegozlou assured that Dapper Labs and its blockchain platform, Flow, remained in a strong financial position.
He expressed confidence in the restructuring, stating that it would enable the company to serve its fans better and foster healthy growth within its communities.
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The reduction in staff represents approximately 12% of Dapper Labs’ workforce, according to employee data from Growjo.com.
This downsizing marks the third occurrence in less than a year, following a 22% cut in November 2022 and a 20% reduction in February 2023.
Inquiries were made to Dapper Labs by Cointelegraph for additional comments regarding the layoffs, but a response was not received at the time of publication.
Dapper Labs gained recognition for its development of popular NFT collectibles, including CryptoKitties and NBA Top Shot.
This move to downsize the staff comes amidst a broader decline in NFT markets and trading. In April, Cointelegraph reported on the market’s imbalance, with sellers dominating the scene.
Additionally, many prominent NFT collections experienced substantial decreases in floor prices over the past few months.
Clegainz, a commentator specializing in sports and NFTs, stated that the layoffs were not a surprising development, considering the current state of Web3 and the overall macroeconomic environment.
They further noted that Dapper Labs is not alone in facing these challenges, as numerous other Web3 companies are in similar situations at present.
The United States Department of Justice (DOJ) has reportedly conducted a series of transactions involving a cryptocurrency wallet associated with them, moving approximately 9,825.25 Bitcoin worth around $299 million on July 12.
The purpose of these transactions and the current whereabouts of the Bitcoin remain unclear.
Initially, around 9,825 Bitcoin associated with the Silk Road seizure were sent in two transactions to three addresses at approximately 1:00 pm UTC.
The majority of these coins, equivalent to 8,200 BTC worth nearly $250 million, were transferred to a single address.
Subsequently, this address split the total amount across 101 separate addresses a little over an hour later.
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The U.S. government had previously announced its plans to sell the remaining Bitcoin from the Silk Road seizure in four batches throughout the year.
It is speculated that the recent transactions may be part of the government’s liquidity testing strategies. On March 7, 2023, one account involved in the batch transactions reportedly made a profit of $237,934,919 from BTC holdings not associated with the July 12 transactions.
However, another account that received 9,825.6 BTC from the DOJ during the March 7 batch distributed the coins among 101 accounts.
Subsequently, this account, along with 599 others, sent approximately 0.1 BTC (about $3,032) to yet another account, which then divided its holdings of approximately 51 BTC across 37 addresses.
The exact nature and purpose of these transactions have sparked speculation within the crypto community.
With over 800 wallet addresses involved, it has become increasingly challenging to track the U.S. government’s intentions with each coin.
This uncertainty has led some to fear that the Bitcoin market may be negatively impacted or that it could disrupt the ongoing bull run in the cryptocurrency economy, prompting investors to abandon their positions.
However, others dismiss these concerns as unnecessary fear, uncertainty, and doubt.
Despite the significant number of transactions, the market movement of BTC remained relatively stable, with less than 1% change in value over six hours after the transactions were conducted.
As the situation continues to unfold, the crypto community awaits further information regarding the DOJ’s actions and their potential impact on the cryptocurrency market.
Elon Musk, the prominent American business magnate, has recently launched an innovative company called “xAI” with a bold objective: to comprehend “the true nature of the universe.”
In an announcement made on July 12, xAI revealed its intention to collaborate closely with Twitter, Tesla, and other enterprises under Musk’s ownership to advance its mission.
The company is actively seeking experienced engineers and researchers in the San Francisco Bay area to join its technical team. Notably, Dan Hendrycks, the director of the Center for AI Safety, has been enlisted as an advisor to xAI.
The developers associated with xAI boast an impressive track record, having previously worked at esteemed institutions such as DeepMind, OpenAI, Google Research, Microsoft Research, Tesla, and the University of Toronto.
They have collectively made substantial contributions to the field, including the development of widely utilized methods like the Adam optimizer, Batch Normalization, Layer Normalization, and the discovery of adversarial examples.
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Moreover, the xAI team has played a pivotal role in groundbreaking projects such as AlphaStar, AlphaCode, Inception, Minerva, GPT-3.5, and GPT-4. To engage with the public and foster discussion, xAI has scheduled a Twitter Space chat for July 14.
In a previous report by Cointelegraph on April 17, it was revealed that Musk is also working on a competitor to ChatGPT called “TruthGPT.”
This large language model is being developed to explore the “mysteries of the universe.”
Musk claims that TruthGPT aims to counter the perceived “left-wing” bias prevalent in the industry, alleging that ChatGPT is programmed by experts who lean towards the left and, therefore, train the chatbots to deceive.
Musk has been vocal about the need for increased regulatory oversight of artificial intelligence (AI).
On July 6, he expressed concerns that AI technology may eventually surpass human intelligence in all domains.
He also emphasized the transformative impact of AI-powered devices such as autonomous cars and robots, stating that they will bring about profound changes in society.
With the launch of xAI and the ongoing development of TruthGPT, Elon Musk continues to make significant strides in the realms of artificial intelligence and technological innovation.
As these ventures progress, the industry eagerly anticipates the potential breakthroughs and advancements they may bring forth.
Suumit Shah, the founder of Dukaan, has faced criticism after announcing on Twitter that his company had replaced 90% of its support staff with an artificial intelligence (AI) chatbot.
Shah defended the decision, highlighting the improved response and resolution times for customer queries.
The tweet quickly sparked outrage online, particularly at a time when concerns about AI taking over jobs, particularly in the services industry, are already prevalent.
Shah’s series of tweets describing the company’s choice to implement a chatbot garnered over a million views.
Shah acknowledged that laying off staff had been a difficult decision but deemed it necessary given the state of the economy.
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He emphasized that startups, including Dukaan, were prioritizing profitability over pursuing “unicorn” status.
The CEO explained that the firm had struggled with customer support for some time and saw the chatbot as a means to rectify the issue.
Highlighting the development process, Shah described how they rapidly built the AI platform and bot to provide every Dukaan customer with their own AI assistant.
He expressed pride in the bot’s ability to provide swift and accurate responses to a wide range of queries. Shah’s tweets also emphasized that the company was actively hiring for multiple roles.
However, many users criticized Shah’s tweets, accusing him of callously disrupting the lives of his staff with this decision. They expressed disappointment that Shah’s thread failed to mention the assistance provided to the laid-off employees.
While responding to the backlash, Shah dismissed the criticism, suggesting that people were in search of profitability rather than sympathy on Twitter.
He promised to address the issue of staff assistance on LinkedIn.
The incident reflects the growing prevalence and accessibility of generative AI tools like ChatGPT, which organizations employ to enhance productivity while reducing costs.
These advancements have sparked fear among workers about potential job losses to technology.
In fact, a report by Goldman Sachs in March indicated that AI could replace the equivalent of 300 million full-time jobs.
The investment in AI by various Indian firms has further raised concerns about potential job losses in the country.
The public backlash against Suumit Shah’s decision to replace support staff with an AI chatbot highlights the need for companies to carefully consider the human impact of such decisions and ensure that appropriate measures are in place to support affected employees.
Balancing technological advancements with ethical considerations and empathy remains a crucial aspect of managing the transition to an increasingly automated future.
The recent surge in filings for spot Bitcoin exchange-traded funds (ETFs) signifies a significant validation for Bitcoin, according to Michael Sonnenshein, the CEO of Grayscale Investments.
Sonnenshein, in an interview on CNBC’s Last Call, dismissed the idea that BlackRock’s entry into the Bitcoin ETF race diminished its appeal.
He emphasized that BlackRock’s involvement adds credibility to the asset class and demonstrates its longevity.
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Over the past month alone, seven prominent institutional firms, including BlackRock, have submitted applications for spot Bitcoin ETFs in the United States.
If approved, these ETFs would offer both institutional and retail investors in the U.S. a straightforward and compliant avenue to gain exposure to Bitcoin’s price without actually owning the digital currency.
Sonnenshein highlighted the tried and tested nature of the ETF structure, which has facilitated access to various assets like commodities and stocks.
He emphasized that Bitcoin is an enduring asset that investors desire and deserve access to.
Previously, Grayscale provided U.S. investors with an indirect method of gaining exposure to Bitcoin through the Grayscale Bitcoin Trust (GBTC), which allowed trading of shares tied to large Bitcoin holdings.
However, the company intends to convert the GBTC into a spot Bitcoin ETF.
This transition would offer investors a more streamlined way to trade Bitcoin’s price, eliminating the discount to net asset value associated with GBTC.
Sonnenshein described the move to an ETF structure as a crucial development, providing investors with the additional safeguards they seek.
In June 2022, Grayscale filed a lawsuit against the United States Securities and Exchange Commission (SEC) after the rejection of its 2021 application to convert GBTC into an ETF.
Sonnenshein stated that a successful outcome in this legal challenge would unlock billions of dollars in investor capital.
Following BlackRock’s filing for a spot Bitcoin ETF on June 15, the price of Bitcoin surged by over 20%, reaching a year-high of $31,460 on July 6. As of now, it is trading at $30,633.
These developments indicate a growing interest in Bitcoin from institutional players and the potential for increased mainstream adoption through the introduction of regulated ETFs.
Overall, the flood of spot Bitcoin ETF filings represents a moment of validation for Bitcoin as a legitimate asset class, with the potential to broaden its accessibility to investors while providing additional protection and market opportunities.
On July 11, the United States Senate Financial Services Committee Chair Ron Wyden and ranking member Mike Crapo reached out to the digital asset community through an open letter, seeking input on the taxation of digital assets.
Recognizing the highly complex nature of this issue, the senators provided background reading from the Joint Committee on Taxation to assist respondents in formulating their answers.
The senators acknowledged that the Internal Revenue Code of 1986 does not offer a straightforward classification for digital assets.
As a result, they posed a series of questions covering nine subject areas to gain a deeper understanding of the challenges surrounding the taxation of digital assets.
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They explained that the Committee on Finance had initiated a bipartisan effort to identify key questions at the intersection of digital assets and tax law.
The letter explored various topics, including fair value (mark-to-market) accounting, the trading safe harbor to encourage foreign investment, digital asset loans, wash sales, constructive sales (related to short-selling), income from staking and mining, “nonfunctional currency,” reporting by foreign firms, and valuation and substantiation on an exchange.
Throughout the letter, specific sections of the tax code were referenced to provide context for the questions.
While the Internal Revenue Service (IRS) has primarily focused on combating criminal activities related to cryptocurrencies, it has also begun taking a more proactive approach to income taxation.
Earlier this year, the IRS proudly announced that it had seized a total of $10 billion in crypto as part of its law enforcement efforts.
In a recent case, the IRS demonstrated its increased emphasis on income taxation by issuing a summons to the crypto exchange Kraken in 2021.
The summons demanded user information on all transactions exceeding $20,000. On June 30, the District Court for the Northern District of California ordered Kraken to comply with the IRS’s request.
Interested parties have until September 8 to respond to the Senate committee’s letter, providing their insights and perspectives on the taxation of digital assets.
This outreach demonstrates the senators’ commitment to understanding the complexities involved and seeking input from the digital asset community to shape future tax policies.