News Updates August 26, 2022

1. Union Bank Becomes The First Bank In The Philippines To Offer Crypto Trading Services Through Its Banking App. 

Union Bank of Philippines has become the first bank in the country to offer cryptocurrency trading services to its customers, according to local news outlet Inquirer.Net. Union Bank customers can access the service through the bank's mobile application. Notably, Union Bank customers can buy and sell Bitcoin, the world's largest cryptocurrency by market cap, directly from the app without the need for any third-party wallet.

Initially, the cryptocurrency trading service using a mobile application will be offered to a limited number of bank customers. According to the results of the test period, the number of users of the application will expand. The launch is carried out in accordance with the Central Bank of the country Bangko Sentral ng Pilipinas (BSP).

Union Bank intends to dive deeper into the crypto industry by launching the country’s first Metaverse Center of Excellence. Union Bank first joined Metaverse in April following its partnership with the non-fungible token (NFT) project Ark of Dreams. The bank recently launched a new campaign called Tech-Up Pilipinas, an initiative to promote digital literacy and financial inclusion across the country.

2. Powell Versus Bitcoin Price Log Curve | Daily TA August 26, 2022

In this episode of NewsBTC’s all-new daily technical analysis videos, we are looking at the Bitcoin logarithmic growth curve, the Power Law Corridor, and the 200/100/50-week moving averages.

 *Bitcoin Price Analysis (BTCUSD): August 26, 2022*

owell’s speech today is already having an impact on markets, with Bitcoin losing support at $21,000 and in danger of falling deeper into a bear trend. With the crypto market in doubt, in this video we zoomed out.

 *Log Growth Curve Continues To Support Price Action*

In this zoomed out view we are taking a closer look at the Bitcoin logarithmic growth curve. A logarithmic growth curve increases quickly at the start but gains decrease and become more difficult over time. The log growth curve is closely tied to the law of diminishing returns.

This type of early growth forms naturally. For example, children learn more easily than adults; when dieting, weight comes off faster to start; or in contrast, beginner strength training gains stack up quickly but over time plateau.

The log growth curve has supported the entire history of Bitcoin price action and put a stop to every bull market. On Black Thursday in March 2020 and on August 20 2015 Bitcoin left a wick below the log growth curve. Each time resulted in a powerful bull run. According to legendary investor Sir John Templeton, “The four most dangerous words in investing are, this time its different” Is this time really different?

 *Power Law Corridor Offers Alternative Take With Lower Support*

Some might argue that the log curve is subjective – it is. In the video, we’ve chosen to draw the curve across candle closes allowing a wick below. Slightly adjusting to draw across wicks creates more room at the bottom of the curve.

There is yet another longer-term growth model, called the Bitcoin Power Law Corridor that is less subjective overall. Turning the tool on aligns with both versions of the log curve. The 2018 bear market bottom stopped at the same line we are at now, while the Black Thursday bottom in 2020 fell to the level below.

 *A Long-Term Look At The 200/100/50-Week MA*

For our final long-term look at Bitcoin, we are analyzing the 200, 100, and 50-week moving averages. Unfortunately, Bitcoin remains below the 200-week moving average which is a negative sign. The moving average has acted as bear market bottom support in the past and could be working as resistance currently. The 100- and 50-week moving averages are also about to form a death cross – which is the reason for calling out this tool.

In the past when the 100 and 50 week moving averages cross in Bitcoin, the bottom was already in, and the crypto market began to move up shortly thereafter. Once again, is this time different?

3. Bitcoin's Hashrate Skyrockets, Block Intervals Suggest a 'Notable' Difficulty Increase Is in the Cards

While bitcoin prices hover just below the $22K mark, the leading crypto asset has still shed more than 9% against the U.S. dollar during the last two weeks. Despite the lower prices, Bitcoin’s hashrate has jumped significantly in recent times and block intervals have sped up a great deal. The trend suggests that when the blockchain network’s difficulty changes four days from now, the shift could increase significantly higher as estimates show a 4.43% to 10.3% change.

Bitcoin’s Hashrate Climbs Closer to June’s All-Time High, ‘Notable Difficulty Jump’ Expected

At the time of writing, Bitcoin’s hashrate is running hot at 282.21 exahash per second (EH/s), which is only 3.35% lower than the network’s all-time high (ATH) recorded on June 8, 2022, at block height 739,928. The hashrate has increased a great deal even though the price has dropped 9% against the U.S. dollar in 14 days, and the mining difficulty has increased twice since August 4, 2022.

The crypto community has noticed the increased tempo as the block interval rate (the time measured in between every mined block) has increased. On Thursday, Blocksbridge Consulting tweeted about the block interval and said that the company expected a large difficulty increase during the next shift.

The average bitcoin block interval between current height (751055) and last diff epoch (749952) is about 9.18 minutes,” Blocksbridge Consulting wrote on Thursday. “Expecting a notable difficulty jump in less than 6 days.”

Furthermore, current statistics indicate the block interval time has dropped even lower and is 9:04 minutes at the time of writing. With the current data the next retarget date is expected to happen on August 31, 2022, with a possible increase of 10.3%. A 10% increase or more would make it a lot more difficult for miners to discover block rewards.

Not all difficulty and hashrate statistics are the same, and because it’s harder to measure in real-time, estimates via btc.com’s difficulty page indicate a 4.43% difficulty increase in four days. Whether it is 4% or 10%, both are considerably larger than the last two difficulty increases since August 4.

At current hashrate speeds, the likelihood of an increase is most definitely in the cards. Data shows that since yesterday, August 25, Bitcoin’s hashrate has increased by 44% during the last 24 hours. The rise has increased the probability that the network’s hashrate will see another ATH in the near future.

4. Former SEC chair calls on U.S. to embrace crypto efficiencies before final regulations

Former Securities Exchange Commission (SEC) chair Jay Clayton has acknowledged that getting a consensus for crypto regulation in the United States appears elusive for involved parties but challenged the government to take the first step. 

Clayton noted that amid the controversy, the government should first embrace the benefits of cryptocurrencies to the financial system before enacting any regulation, he said in an opinion piece published by the Wall Street Journal on August 25. 

He cited benefits such as the ability to power quick payments alongside custody of assets digitally and called on the SEC to provide guidelines for the custody of tokenized assets. 

His recommendations come as the SEC, and current chair Gary Gensler has received criticism for the alleged stifling of crypto sector development. In this line, crypto proponents are pushing for the resignation of Gensler through an online petition. 

One criticism around the SEC has been on cracking down on crypto despite a lack of clear regulations to follow. However, according to Clayton, once the regulator unveils guidelines for tokenized assets, the government ‘must go after those who are defying its laws.’

 *U.S. readiness to regulate crypto*

Additionally, Clayton stated that the controversy regarding regulations of assets like Bitcoin (BTC) is due to the global growth of cryptocurrencies. In this case, the former top regulator noted that the U.S. has no readily available requirements on licensing, mandatory disclosures, and marketwide secondary-trading rules.

5. Celsius bankruptcy proceedings show complexities amid declining hope of recovery

Celsius Network’s bankruptcy proceedings have highlighted that the firm has misrepresented many of its assets with deep complexities in its operations.

 *The Celsius Network is one of many crypto*

lending firms that has been swept up in the wake of the so-called “crypto contagion.” 

Rumors of Celsius’ insolvency began circulating in June after the crypto lender was forced to halt withdrawals due to “extreme market conditions” on June 13 and eventually filed for chapter 11 bankruptcy a month later on July 13.

The crypto lending firm showed a balance gap of $1.2 billion in its bankruptcy filing, with most liabilities owed to its users. User deposits made up the majority of liabilities at $4.72 billion, while Celsius’ assets include CEL tokens as assets valued at $600 million, mining assets worth $720 million and $1.75 billion in crypto assets. The value of the CEL tokens has drawn suspicion from some in the crypto community, however, as the entire market cap for CEL is only $494 million, according to CoinGecko data.

Iakov Levin, CEO at centralized and decentralized finance platform Midas, told Cointelegraph that the CEL token value issue could adversely affect its holders. He explained:

Celsius calculated CEL token denominated in $1 per token, requiring someone willing to pay this price for the bankrupt token. The situation is dark not only for Celsius users but also for CEL token holders. CEL has become a sad example of how some events can cause a domino effect, and the broader digital asset market can suffer as a result.”

At the time of its bankruptcy filing, the firm had said it aims to use $167 million in cash-on-hand to continue certain operations during the restructuring process and said it intends to eventually “restore activity across the platform” and “return value to customers.”

A new bankruptcy report filed nearly a month after its Chapter 11 bankruptcy filing showed that the actual debt of the crypto lender stands at more than double what the firm showed in July. The report found that the company has net liabilities worth $6.6 billion and total assets under management of $3.8 billion. While in their bankruptcy filing, the firm has shown around $4.3 billion in assets against $5.5 billion in liabilities, representing a $1.2 billion difference.

Pablo Bonjour, managing director of Macco Restructuring Group, which has worked with several crypto firms going through the bankruptcy process, explained why Celsius’s balance gap increased and what lies ahead for the troubled crypto lender. He told Cointelegraph:

6. 178 South Korean Darkweb Users Arrested on Suspicion of Crypto-powered Drug Trading

Police in Seoul, South Korea, have arrested 178 people on suspicion of buying and selling drugs online using cryptoassets as a means of payment.

According to JTBC, Seoul Metropolitan Police officers said they had arrested 12 suspected drug dealers and 166 of their alleged customers, stating that the individuals had all made use of darkweb portals and crypto payments.

The officers also stated that they had seized tokens, some USD 8,500 worth of cash, 12kg of marijuana, and significant amounts of drugs such as synthetic cannabinoids, ketamine, and MDMA (ecstasy).

A number of the drug payments appear to have been carried out in bitcoin (BTC), and the vast majority of alleged drug buyers were described as being in their 20s and 30s – although a small number of individuals were aged 40-59.

The officers explained that the individuals had all made use of a darkweb platform that allowed would-be dealers to post for free, but demanded 10% commission on all transactions – which were paid in crypto and carried out through the platform.

While the traders have been identified, the darkweb platform operators have thus far eluded capture.

Police officers stated that the platform made use of darkweb technology, cryptoassets, and messaging platforms such as Telegram, making it a natural choice for younger individuals – and less of a draw for older people.

7. Former SEC Chair Compares Crypto to Uber

During a recent interview with CNBC's "Squawk Box," former U.S. Securities and Exchange Commission Chairman Jay Clayton compared crypto to ride-hailing giant Uber when it comes to regulation. Clayton recalled how Uber started claiming that taxi cab regulations were extremely arcane and dated. The company attempted to offer a compelling alternative that would make regulators catch up with them. Clayton described it as the "Uber effect."

Uber has had plenty of run-ins with regulators after falling afoul of existing rules. The company, which positions itself as a communications platform, was forced to suspend operations in Austin, Texas, back in 2016, after it failed to repeal stringent regulations for ride-sharing drivers in spite of lobbying efforts. The ride-hailing company also clashes with regulators in the U.K., Denmark, Italy and Canada as it was attempting to disrupt the old taxi industry.   

Just like Uber, cryptocurrency players claim that existing securities rules are outdated, demanding a different approach. Yet, SEC Chair Gary Gensler, who has attracted strong criticism from crypto proponents because of his hawkish stance toward crypto regulation, has rejected the oft-repeated argument. As reported by U.Today, Gensler believes that cryptocurrencies should not be treated differently just because they use novel technology.

Clayton echoed this view during the latest interview. "You can't give up the core of our financial regulation. You can't give up limits on leverage, requirements of disclosure," he replied. As Clayton explains, U.S. companies generally raise money from institutions, but cryptocurrency projects target individual investors. He has also noted that the SEC largely regulates domestically while crypto is a global innovation.

So, you have a regulatory overlay, which usually focuses on institutions, usually focuses domestically, and a product that is global and retail," Clayton said while speaking about how complicated cryptocurrency regulation is. Clayton claims that there is a strong need for regulatory coordination in the U.S. "There's some securities, there's some commodities. There are a lot of banking products,"

8. UK High Court Slams Door on Two Companies Engaged in Crypto Fraud.

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IN BRIEF
UK Court shuts down companies involved in crypto scam.
Micasa cannot account for £50,000 in transfers.
Crypto crime has doubled globally since 2020 according to research.
PromoTop Crypto Exchanges Without KYC Read Now
 
The Trust Project is an international consortium of news organizations building standards of transparency.
 
 
On Friday, the United Kingdom government announced that an insolvency inquiry into Micasa WW Ltd and Remultex Ltd showed that between February 2019 and December 2020, the companies engaged in bitcoin fraud, transferring 

Share Article
  
 
IN BRIEF
UK Court shuts down companies involved in crypto scam.
Micasa cannot account for £50,000 in transfers.
Crypto crime has doubled globally since 2020 according to research.
PromoTop Crypto Exchanges Without KYC Read Now
 
The Trust Project is an international consortium of news organizations building standards of transparency.
 
 
On Friday, the United Kingdom government announced that an insolvency inquiry into Micasa WW Ltd and Remultex Ltd showed that between February 2019 and December 2020, the companies engaged in bitcoin fraud, transferring close to £1.3 million through their accounts without any trace.

In a press release, the United Kingdom says the two companies fumbled the bag during interrogation about the unrecorded hefty transfers forcing the 

 
IN BRIEF
UK Court shuts down companies involved in crypto scam.
Micasa cannot account for £50,000 in transfers.
Crypto crime has doubled globally since 2020 according to research.
PromoTop Crypto Exchanges Without KYC Read Now
 
The Trust Project is an international consortium of news organizations building standards of transparency.
 
 
On Friday, the United Kingdom government announced that an insolvency inquiry into Micasa WW Ltd and Remultex Ltd showed that between February 2019 and December 2020, the companies engaged in bitcoin fraud, transferring close to £1.3 million through their accounts without any trace.

In a press release, the United Kingdom says the two companies fumbled the bag during interrogation about the unrecorded hefty transfers forcing the High Court to order liquidation and close of their accounts on grounds of lack of accountability.

“Micasa, along with associated company Remultex, both shut down after accounts failed to explain large payments, and misuse of Bounce back loans.