What the numbers say: The data compiled by the crypto security firm CertiK has revealed that crypto-related scams, hacks, and exploits caused a $103.7M loss in April. The figure brought the stolen amount since the beginning of the year to $429.7M. The exploits in several MEV trading bots, the hot wallet exploit at the Bitrue exchange, and the hack at the South Korean exchange GDAC became the top three incidents in April, accounting for more than half of the total value stolen last month. De.Fi's data also recorded more than 50 crypto exploits, scams, hacks, and rug pulls in April, with a large portion coming from memecoin rug pulls. Relevance: The crypto-related attacks have shown a significant increase over the last several years. Blockchain analysis firm Chainalysis recently reported that crypto hacking broke a record in 2022, with the total stolen amount reaching $3.8B. October, March, and November, respectively, became the top three months that witnessed the highest amounts of stolen funds. April displayed a relatively safe performance this year with a $103.7M loss, around one-third of $355.5M stolen within the same month of last year. Brands that should care: The increase in crypto-related scams and attacks is expected to force both centralized exchanges like Binance and Coinbase and decentralized exchanges (DEX) such as Uniswap and 1inch to make moves toward improving cybersecurity in their platforms. Governments and state-level regulators worldwide also had to tighten their requirements regarding cybersecurity to ensure consumer protection due to the sudden jump in losses last year.
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U.S.-based crypto exchange Coinbase has launched a new Bermuda-based international derivatives exchange for institutional crypto traders outside the U.S. The move came shortly after the firm received a digital asset license from Bermuda's Monetary Authority. More: - The platform, Coinbase International Exchange, will first list Bitcoin (BTC) and Ether (ETH) perpetual futures.
- The new exchange will only cater to customers outside the U.S., though the firm currently awaits approval to offer futures directly to U.S. customers.
- All trading activities in the platform will be settled in USD Coin (USDC) stablecoin as part of the partnership with the issuer Circle.
- The launch of the international exchange followed the increased tension between Coinbase and the U.S. Securities and Exchange Commission (SEC).
- The firm recently disclosed that it was warned by the SEC with a legal notice about further action over a potential violation of securities laws through its exchange and staking services.
- Following its conflict with the regulator, the exchange entered into a legal battle with the SEC in late April by filing a petition requesting the court to force the agency to create a clear framework for digital assets.
- Coinbase CEO Brian Armstrong recently said the company could move its headquarters outside the U.S. if the regulatory environment does not change in the country.
Zoom Out: - In 2022, Coinbase generated 84% of its revenue from the U.S. market.
- The U.S. has recently become famous for its strict regulatory approach toward the crypto industry, forcing the crypto firms to embark on a quest for alternative markets.
- Over the last several months, many crypto exchanges, including Coinbase, Kraken, Bittrex, and Binance, came under increased scrutiny by the U.S. regulators such as the SEC, the Internal Revenue Service (IRS), and the Commodity Futures Trading Commission (CFTC).
- The U.S.-based crypto exchange Gemini also recently launched a crypto derivatives platform dubbed Gemini Foundation that only caters to users outside the U.S.
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The White House has published a new blog post reiterating its plans to impose a 30% federal tax for all electricity usage for digital asset mining. The post, written by the White House's Council of Economic Advisors, also outlined the details of the Digital Asset Mining Energy (DAME) tax. More: - The tax proposal aims to reduce crypto mining activity in the U.S. that dramatically grew and made the country a center in the industry after China banned crypto mining within its borders in 2021.
- U.S. President Joe Biden's administration suggests that crypto mining harms both the environment, by causing pollution with electricity usage, and local communities, by imposing an extra burden on the equipment, causing service interruptions and creating safety risks.
- The report also argues that crypto miners burden the rest of society with energy costs.
- The White House believes that the new tax will encourage crypto mining firms to better consider the harms they cause to society.
- In the post, the council created a chart showing that crypto mining currently consumes more power than computers, fans, freezers, and washers in the U.S.
- The administration's advisors underlined that there is little evidence regarding the benefits of crypto mining for local communities in the form of employment or economic opportunity.
Zoom Out: - In cryptocurrencies based on the proof-of-work (PoW) model like Bitcoin, computers have to perform complex algorithms to create new coins, requiring massive amounts of computing power and electricity that could harm the environment.
- Only two networks are still using the PoW model: Bitcoin and Dogecoin.
- Another major blockchain, Ethereum, recently switched from PoW to a proof-of-stake (PoS) model with the Merge upgrade to reduce the network's energy consumption by 99.95%.
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The New York State Department of Financial Services (NYDFS) has fined the Japanese crypto exchange BitFlyer's U.S. arm, BitFlyer USA, $1.2M. While explaining the fine, the state's financial regulator cited that the platform does not comply with its cybersecurity regulations. More: - The state agency has accepted the exchange's commitment to improve cybersecurity on the platform.
- BitFlyer USA has presented a remediation plan, promising it will meet New York's cybersecurity requirements by the end of the year.
- The firm already has a license to operate in New York.
- The NYDFS has issued a license dubbed BitLicense for eight years to let a company run virtual currency activities under regulations in the state.
- The license and the state's financial regulator have been criticized many times over the years for restrictive measures, long wait times, and high compliance costs.
- Currently, 22 companies in total have BitLicense.
Zoom Out: - The latest move made BitFlyer USA the latest crypto-related firm fined by NYDFS over the last months after the crypto exchange Coinbase and the financial services company Robinhood's crypto division.
- The state regulator also recently enforced new rules that would be adopted while assessing crypto companies and force virtual asset firms to adhere to strict guidelines for capitalization, cybersecurity, and anti-money laundering (AML) measures.
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China-based crypto exchange Gate.io's parent company, Gate Group, has received a license in Italy to operate as a registered virtual asset service provider in the country through its Italian arm, Gate Italy s.r.l. The license was granted to the platform by Italy's regulatory agency, Organismo Agenti e Mediatori (OAM). More: - The new license will allow the platform to offer crypto and digital asset services in Italy in compliance with the country's regulations.
- The authorized services include the use of digital assets, operating crypto exchange, virtual currency transfers, clearing services, and digital wallet services.
- Gate Group's founder and CEO, Dr. Han Lin, said the new license is an important milestone for their entry into the European market.
- Lin also added that the license represents a significant achievement in terms of the firm's compliance-focused global expansion strategy.
Zoom Out: - In March, Gate.io also launched a crypto debit card in Europe in collaboration with payments services giant Visa through its Lithuania-based subsidiary, Gate Global UAB, revealing its commitment to the European market one more time.
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The U.S. sports magazine Sports Illustrated’s ticketing subsidiary, SI Tickets, has launched a new NFT ticketing platform dubbed Box Office on the Polygon network. The platform was developed in collaboration with the Web3 software company ConsenSys. More: - Box Office will allow owners, organizers, and hosts to create, manage, and promote paid or free ticketed live sports events.
- According to the company, the platform will mark the world’s first complete NFT ticketing service.
- SI Tickets’ CEO, David Lane, said the platform aims to disrupt the primary ticket market.
- SI Tickets will receive a $1.40 and 3% commission per ticket on Box Office and charge event organizers a 3% merchant pass-through fee.
- The new NFT ticketing service will have a feature dubbed Super Tickets that allows for integrating further engagement opportunities into tickets, including highlights, collectibles, exclusive offers, and loyalty benefits through the NFT technology.
- Super Ticket holders will be able to access exclusive offerings, including drink coupons, music downloads, post-event video content, and rewards, before and after the event by scanning their NFTs.
- The event tickets will continue to be kept in the digital wallets forever.
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- The U.S. Federal Bureau of Investigation (FBI) and the law enforcement agencies in Ukraine have seized domains of nine digital currency exchanges.
- Crypto trading platform Enclave Markets has launched a fully encrypted spot exchange dubbed Enclave Spot.
- The U.K.-based digital bank has entered the Latin American market by starting to offer its crypto investment services in Brazil.
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 |  | Doga is a tech and science editor who has been writing news for nearly 10 years. She worked for leading tech platforms and mainstrem media channels as an editor and presenter throughout his career. Then, she carried her know-how to more than one platform. She is a part-time cat lover and binge-watcher, and also fond of science, space, and emerging tech. She always has a story to tell. She is a bit addict to the laughter and -unfortunately- the '90s culture. |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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