The Law Commission of the United Kingdom has concluded that decentralized autonomous organizations (DAOs) do not require separate legal oversight and can be integrated within existing financial regulations and tax frameworks.
This decision was detailed in a scoping paper that highlighted the lack of a unified definition for DAOs.
The commission, which focuses on law reforms, noted the impracticality of a blanket law for DAOs due to their diverse nature and tendency to adapt to local judicial requirements.
DAOs encompass a wide range, from pure DAOs to hybrid arrangements and digital legal entities, complicating efforts to characterize them for legal reforms.
These organizations often function as trustless entities, adding to the regulatory challenge.
“The Law Commission has already agreed with Government to undertake a review of trust law.
“This will consider — in general terms rather than in the DAO context specifically — the arguments for and against the introduction of more flexible trust and trust-like structures in England and Wales.”
In addition, the commission recommended reviewing the Companies Act 2006 to better oversee DAOs operating as limited liability partnerships.
They also proposed examining reforms for nonprofit DAOs and current Anti-Money Laundering (AML) regulations.
The commission emphasized the need for international cooperation to develop a global AML and tax framework for DAOs.
READ MORE: Bitcoin Long-Term Holders Remain Resilient Amid Deepest Correction of Current Price Cycle
Parallel to these developments, the Solicitors Regulation Authority (SRA) in the United Kingdom issued a warning regarding a Bitcoin scam involving fake lawyers.
Scammers impersonated legitimate law firms, Attwaters Solicitors and Attwaters Jameson Hill Solicitors, using personal data and Bitcoin payments from potential victims to prevent information leaks.
The SRA advised the public to exercise caution and verify the authenticity of any suspicious correspondence.
This can be done by directly contacting the law firm through reliable means and checking the SRA’s records to confirm the firm’s authorization.
These steps are crucial in ensuring the public does not fall victim to such fraudulent schemes, especially with the rise of digital and decentralized technologies like DAOs.
The commission’s recommendations and the SRA’s warning highlight the need for robust regulatory and security measures in this evolving landscape.
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Global cryptocurrency trading is on the rise, with a study from CoinWire predicting industry trading volumes will exceed $108 trillion by the end of 2024.
This estimate represents a 90% increase compared to 2022.
The United States is leading with a projected crypto trading volume surpassing $2 trillion.
While the US may lead in trading volume, Europe dominates in global cryptocurrency transaction value, accounting for 37.32%.
Europe has been proactive in shaping its cryptocurrency industry through regulations, providing clear guidelines for traders and exchanges.
The European Union’s landmark Markets in Crypto-Assets Regulation partially came into effect on June 30, focusing on stablecoins.
Further regulations for crypto asset service providers are expected in December.
This legislative framework, in development since 2020, represents the EU’s first set of uniform market rules for crypto assets.
The survey anticipates Europe’s cryptocurrency trading volume will reach $40.5 trillion in 2024, a 2.7-fold increase from its $15 trillion in 2022.
READ MORE: BitMEX Downplays 2020 BSA Violation as Founders Settle Charges and Avoid Further Penalties
Asia follows closely, accounting for 36.17% of the world’s cryptocurrency transaction value.
The study’s conclusions were drawn by analyzing centralized exchanges with trust scores higher than six on CoinGecko.
This analysis considered factors like web traffic by country, supported languages, headquarters location, and trading time zones.
One key finding is that Binance dominates the crypto exchange market in over 100 countries, with a trading volume of $2.77 trillion.
Binance.US also holds a significant presence, though with a lower trading volume of $3.9 billion. This makes Binance the most “widely used” exchange globally.
On July 5, Binance celebrated its seventh anniversary and the milestone of reaching 200 million users worldwide.
Following Binance are OKX and Cex.io, with a presence in 93 and 92 countries, respectively, and trading volumes of $759 billion and $1.83 billion.
Coinbase and Bybit operate in 90 and 87 countries, respectively, with trading volumes of $662 billion and $1.14 trillion.
The rise in global crypto trading and the increasing regulatory clarity in regions like Europe signify a rapidly maturing industry poised for significant growth in the coming years.
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King Doge (KINGDOGE) is a new memecoin that was launched on the Solana blockchain earlier this week, and it has huge potential.
New Solana memecoin King Doge is poised to skyrocket over 16,000% in the coming days, before it begins trading on centralized exchanges.
The memecoin currently has a market cap of around $20,000, and it can only be purchased via decentralized exchanges, such as Raydium and Jup.ag.
However, once it gets listed on centralized exchanges later this month, its market cap and price will skyrocket, because millions of new crypto traders will be able to easily buy it.
This means that smart crypto investors who purchase King Doge before its first CEX listing will make huge returns.
All of King Doge’s liquidity is burned, meaning the developers cannot take out the liquidity that they have allocated (unlike 99% of new Solana memecoins.) This a major advantage for early investors and it significantly increases its potential of generating huge gains in the coming days and weeks.
To buy KINGDOGE on Raydium or Jup.ag, users need to connect their Solflare, MetaMask or Phantom wallet, and then exchange Solana for King Doge by entering the token’s contract address – 8wcpzdFBrHHkzfZXDV73DnuizCpQUd7WWMyu3nwQWTSy – in the receiving field.
If you don’t have a wallet already, you can easily create a new one and transfer some Solana to it from any centralized exchange of your choice, before swapping the Solana for KINGDOGE tokens.
Crypto investigator ZachXBT has alerted users to avoid the Compound Finance website due to a suspected hijacking.
On July 11, ZachXBT shared on Telegram that the website is redirecting to a newly registered phishing site, presenting a significant security risk.
A member of the Compound Finance team confirmed the breach, advising users to steer clear of the site to prevent potential losses of personal data and funds.
Michael Lewellen, security adviser at the Compound Finance DAO, confirmed that the URL has been compromised and is now hosting a phishing site.
He cautioned users against interacting with the site but assured that the protocol itself and the smart contract funds are secure.
Cointelegraph reached out to the Compound Labs team for comments but has not yet received a response.
This is not the first security incident for Compound Finance. In 2023, the decentralized finance (DeFi) protocol’s official X account was hacked.
Similar to the recent incident, hackers used the company’s social media to promote a phishing site.
At the time, the account advertised free crypto tokens, urging users to click a link mimicking the protocol’s official site. The scam was quickly identified and flagged.
Cybersecurity blogger Officer’s Notes and blockchain security platform Scam Sniffer confirmed that the account had posted phishing links.
On December 30, 2023, the Compound Labs team reported that their account had been compromised for four hours before they managed to recover it and remove the spam messages.
On April 4, CertiK CEO co-founder Ronghui Gu urged the community to prepare proactively for attacks as the market grows.
The company observed that phishing attacks in the crypto space had reached alarming levels.
On July 3, CertiK reported that losses in crypto security incidents totaled $1.19 billion in the first half of 2024, with nearly $498 million attributed to phishing attacks.
Gu emphasized the need for multifactor authentication and improved security practices in response to these escalating threats.
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The United States Supreme Court’s decision in Loper Bright vs. Raimondo has significant implications for the cryptocurrency industry.
The ruling, which ended the long-standing Chevron deference, shifts power between the judicial and executive branches of the US government.
Since 1984, Chevron allowed courts to defer to federal agencies in interpreting ambiguous statutes, but the 6–3 decision on June 28 changed that.
“Chevron is overruled,” the court declared.
“This decision impacts many sectors, including technology, finance, healthcare, and the environment.
Jim Lundy, a securities enforcement and litigation partner at Foley & Lardner, commented, “The Supreme Court did the appropriate thing with this ruling because the Chevron deference had started to stretch too far for certain agencies.”
Joshua Simmons, a partner at Wiley Rein, noted the ruling’s significant long-term impact, especially for the crypto and blockchain sector.
“The decision takes away the deference that agencies had,” Simmons said, suggesting that more companies will challenge agency decisions and face a more level playing field.
Joanna Wasick, a litigation partner at BakerHostetler, highlighted how crypto was referenced during oral arguments.
“Loper Bright’s attorney, Paul Clement, pointed directly to crypto as an example of how the SEC [Securities and Exchange Commission] oversteps its authority.”
This ruling could push Congress to pass crypto reform legislation and encourage companies to bring lawsuits.
Peter Van Valkenburgh wrote in a Coin Center blog, “Without Chevron, a judge in SEC v. Consensys need not defer to the SEC’s own understanding of what exactly a ‘broker’ is.” Uniswap Labs also referenced Loper Bright, urging the SEC to drop its proposal on decentralized finance.
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Other federal agencies might also feel Loper Bright’s impact. Custodia, a state-chartered crypto bank, recently appealed the Federal Reserve’s decision to deny it a Master Account, potentially benefiting from this ruling.
Kathryn Haun called the ruling “the most significant court case for technology policy in the U.S. in years.”
Lundy emphasized that while the ruling doesn’t eliminate regulatory agencies’ rulemaking abilities, it removes Chevron deference in ambiguous cases.
This change may not be a game-changer historically but will influence how agencies like the SEC and CFTC craft rules for the cryptocurrency industry.
In Europe, the impact of Loper Bright is seen as potentially reducing regulatory barriers, similar to the EU’s MiCA framework.
Annabelle Rau of McDermott Will & Emery suggested that a more predictable regulatory landscape could encourage innovation in digital asset tokenization.
Overall, while the ruling alters the game, its full impact will unfold over time through further litigation and challenges.
As Lundy noted, the defense bar will likely explore new ways to challenge SEC and CFTC rulemakings for the cryptocurrency and blockchain industries.
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MicroStrategy, a Nasdaq-listed business intelligence firm, has announced a 10-for-1 stock split of its Class A and B common stock.
This decision, revealed on July 11, aims to increase stock accessibility for both investors and employees.
The split will be executed as a stock dividend, providing stockholders with nine additional shares for each share they currently own.
The distribution of these additional shares is scheduled for after trading closes on August 7, 2024. Trading on the split-adjusted stock will begin on August 8, 2024. Despite this change, the voting rights of stockholders will remain unchanged.
MicroStrategy also emphasized its identity as a Bitcoin development company.
The firm is committed to enhancing the Bitcoin network through its financial market activities.
It has made Bitcoin its primary treasury reserve asset, underscoring its strategic focus on integrating Bitcoin into its operations. The company stated:
“As an operating business, we are able to use cashflows as well as proceeds from equity and debt financings to accumulate Bitcoin, which serves as our primary treasury reserve asset.”
READ MORE: Mt. Gox Begins Long-Awaited Bitcoin Repayments, Sparking Market Volatility
In addition to its Bitcoin initiatives, MicroStrategy is also involved in developing artificial intelligence software analytics solutions.
This announcement follows the company’s plan to purchase more Bitcoin.
On June 13, MicroStrategy disclosed its intention to conduct a $500 million stock sale to fund additional Bitcoin purchases.
Subsequently, the company announced a plan to offer convertible senior notes due in 2032.
Following these announcements, on June 14, MicroStrategy increased the stock sale volume to $700 million and confirmed that the notes would be sold to qualified investors.
Nearly $800 million was eventually raised, with $786 million allocated to purchase 11,931 BTC.
With this acquisition, MicroStrategy’s Bitcoin holdings total 226,331 BTC, valued at approximately $13.2 billion.
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The Institute of Certified Public Accountants of Cyprus (ICPAC) has urged accounting and auditing professionals to play a crucial role in detecting and preventing terror financing.
This alert highlights five primary methods terrorists use to transfer funds, including cryptocurrencies.
ICPAC, which regulates the accountancy profession in Cyprus, issued a “terror financing alert” to enhance efforts against such activities.
While law enforcement agencies usually handle financial crimes such as money laundering and terror financing, ICPAC emphasizes the need for accounting professionals to participate in monitoring. The regulator stated:
“These days, given the nature of services provided and the role of professionals as gatekeepers, it is a requirement for obliged entities to take an active role in the prevention phase.”
ICPAC identified five fund transfer methods used by terrorists: donations through nongovernmental organizations (NGOs), cash, bank transfers and gift cards, cryptocurrencies, and shell companies.
Regarding cryptocurrencies, ICPAC advises accountants to watch for anonymous cross-border peer-to-peer transfers, crowdfunding, charitable donations, and anonymous online fundraising campaigns.
ICPAC instructed its members, firms, and compliance officers to report suspicious activities, warning that failure to do so constitutes an offense.
READ MORE: German Government Continues Bitcoin Sell-Off, Shifts $178 Million in BTC in One Hour
Consequently, flagged transactions will undergo thorough scrutiny, including profiling individuals, screening crypto wallets and transactions, and using specialized blockchain tools.
A U.S. Treasury official revealed that Palestinian militant groups, including Hamas, used small amounts of cryptocurrencies for funding but preferred traditional financial methods.
Blockchain analytics firm Elliptic confirmed that Palestinian Islamic Jihad raised $12 million through crypto fundraising, contradicting a Wall Street Journal report that initially claimed they received between $41 million and $93 million from August 2021 to June 2023.
Elliptic found no evidence of such high amounts raised through crypto, prompting the Journal to correct its report.
“To be clear,” Representative Tom Emmer asked the Treasury’s Undersecretary for Terrorism and Financial Intelligence Brian Nelson, ”Hamas is using crypto in relatively small amounts compared to what’s been widely reported, that’s correct?”
“That’s our assessment, yep,” Nelson confirmed.
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Bitcoin experienced a notable spike to new one-week highs on July 11 following a bullish surprise from United States macroeconomic data.
Data from Cointelegraph Markets Pro and TradingView revealed a rapid yet brief climb in Bitcoin’s price to $59,516 on Bitstamp.
This surge came after the release of June’s US Consumer Price Index (CPI) data, indicating inflation slowing more than anticipated.
Both year-on-year and month-on-month CPI figures were 0.1% lower than expected, resulting in a positive response from both crypto and US stock markets.
“The all items index rose 3.0 percent for the 12 months ending June, a smaller increase than the 3.3-percent increase for the 12 months ending May,” a press release from the US Bureau of Labor Statistics confirmed.
“The all items less food and energy index rose 3.3 percent over the last 12 months and was the smallest 12-month increase in that index since April 2021.”
Despite this, the initial gains were short-lived, with BTC/USD quickly losing the $1,000 it had initially gained.
“Inflation coming down faster than expected. Local higher high for Bitcoin in response,” popular trader Jelle summarized on X.
“Time to let the dust settle, but safe to say it’s much stronger than it was at the start of the month. Reclaim $60,000 and things will look much better.”
The $60,000 level remained a critical target for market participants. Fellow trader Wolf identified it as a key resistance point, citing the 21-week exponential moving average at $60,900.
“The 60-61.6k range is where the strongest resistance lies, due to horizontal and weekly 21EMA barriers,” he told X followers.
“If this level is cleared, the bulls will regain control.”
Other significant levels include the 200-day moving average and the short-term holder cost basis, the latter at $64,088, according to Look Into Bitcoin.
Short-term holders, the more speculative Bitcoin investors, held up to 2.8 million BTC at a loss when prices fell to four-month lows of $53,500 last week.
Caution remained as markets anticipated the distribution of coins from the defunct exchange Mt. Gox.
Crypto commentator Zen suggested a potential BTC price drop as these funds hit exchanges, requiring two days for market rebalancing.
Jamie Coutts, chief crypto analyst at Real Vision, saw this as ultimately beneficial.
“While painful in the short term, the distributions of the Mt. Gox reserve and government sales remove the annoying supply overhang, helping distribute coins to a wider array of holders, thereby growing the network and leaving Bitcoin even better off than before,” he wrote on X on July 10.
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Binance, a leading cryptocurrency exchange, is reportedly in the final stages of negotiating the sale of a majority stake in the South Korean exchange Gopax to the local cloud service provider Megazone.
According to a report by South Korea’s news agency The Chosun Ilbo on July 11, Binance is preparing to reduce its 72.6% stake in Gopax to as low as 10%.
An anonymous industry insider related to Gopax indicated that Binance is pushing the sale to enhance its governance structure as requested by local financial authorities.
Initially, Binance announced the acquisition of a 72.26% stake in Gopax in February 2023, aiming to re-enter the South Korean market after ceasing operations there in 2021.
However, the acquisition faced hurdles as South Korean financial authorities blocked the capital injection by denying the change of the largest shareholder.
Additionally, Binance’s regulatory challenges in the United States, including a lawsuit from the US Securities and Exchange Commission, fueled further regulatory skepticism in South Korea.
The recent news about the potential sale comes just weeks before Gopax is expected to renew its real-name account contract with Jeonbuk Bank, which is due to expire on August 11, 2024.
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Jeonbuk Bank and Gopax had signed a two-year real-name account contract in August 2022.
Cointelegraph reached out to Binance for a comment on the sale of Gopax shares but did not receive a response at the time of publication.
Gopax was significantly impacted by the collapse of Sam Bankman-Fried’s FTX crypto exchange in November 2022.
Shortly after FTX’s collapse, Gopax halted withdrawals of principal and interest payments in its decentralized finance service, which included products from the now-bankrupt crypto lending firm Genesis Global Capital.
Before its bankruptcy, Genesis’ parent company, Digital Currency Group, was reportedly Gopax’s second-largest shareholder and a crucial business partner, supplying its GoFi product.
According to The Chosun Ilbo, Gopax’s total debt was 118.4 billion South Korean won ($86 million) as of April 2024.
Binance’s decision to sell the majority stake in Gopax underscores the complex regulatory landscape and the challenges of maintaining operations in the highly scrutinized cryptocurrency market.
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Bitcoin long-term holders are showing remarkable resilience amid the deepest correction of the current BTC price cycle, according to crypto analytics firm Glassnode.
In the latest edition of its weekly newsletter, The Week Onchain, Glassnode highlighted the strength of Bitcoin holders despite significant market downturns.
Bitcoin is facing its most substantial drawdown of the current bull market, yet its steadfast “diamond hands” are not showing signs of panic.
Glassnode noted, “If we look at performance indexed to the date of the Bitcoin halving, we can see that the current cycle is one of the worst performing.”
This is despite the market reaching a new cyclical all-time high before the halving event in April, an unprecedented occurrence.
Unlike previous well-known capitulation events, Glassnode’s analysis reveals that long-term holders are steadfast, even with BTC/USD hitting four-month lows of $53,500.
The newsletter stated, “Looking at losses locked in by both Long-Term and Short-Term Holders, we note that the loss-taking events this week account for less than 36% of the total capital flows across the Bitcoin network.”
Significant capitulation events in September 2019, March 2020, and May 2021 saw losses exceeding 60% of capital flows over several weeks, with contributions from both long-term and short-term holders.
Long-term holders are defined as those holding Bitcoin for more than 155 days, while short-term holders have it for less, indicating a more speculative nature.
Glassnode’s chart shows the lack of long-term holder participation in onchain selling at a loss during the BTC price drawdown.
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They stated, “Following 18 months of up-only price action after the FTX implosion and 3 months of apathetic sideways trading, the market has endured its deepest correction of the cycle.”
Despite this, the drawdowns in the current cycle remain favorable compared to historical cycles, indicating a robust underlying market structure.
As Cointelegraph reported, short-term holders and day traders are particularly affected as profit margins turn negative.
At $53,500 lows, short-term holders held nearly 2.8 million BTC, or 14.2% of the total supply, at an unrealized loss.
Concerns are also rising among miners, with a hashrate capitulation phase reminiscent of the bear market bottom in late 2022.
Charles Edwards, founder of Capriole Investments, highlighted that the recent drawdown has been preceded by a Hash Ribbon Capitulation signal, suggesting that a buy signal could still be weeks away.
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