News Updates September 08 & 09, 2022

1. Israel's Markets Regulator Grants First Crypto License to Private Company: Report

Hybrid Bridge Holdings is the first company to receive a permanent license from the country's capital markets authority to engage in crypto-related business activities, Globes reported.

Israel's Capital Markets, Insurance and Savings Authority granted a first permanent license to a private company, Hybrid Bridge Holdings Ltd., to engage in crypto activities, local media outlet Globes reported Wednesday.

* Many companies looking to engage in the crypto industry are still in the process of getting approval from the regulator, the report said.

* Hybrid Bridge is a private Israeli company incorporated in 2021. It's unclear what kind of crypto services the company intends to provide, but it has an active license as a financial services provider in the country.

• In February, global crypto exchange Binance came under the regulator's scrutiny over licensing issues. The Capital Markets Authority ordered Binance to suspend marketing to Israeli users and stop all activities focused on Israel until the issues were sorted.

2. Indian finance minister urges IMF to lead crypto regulation

The International Monetary Fund (IMF) should lead the way in global regulation of crypto assets, India’s Finance Minister Nirmala Sitharaman has urged IMF Managing Director Kristalina Georgieva at their meeting in New Delhi.

See related article: Crypto regulation has to ‘take its time’: India FM Nirmala Sitharaman

* At their meeting on Wednesday, they discussed the significance of regulating crypto assets and the need for a globally coordinated, synchronized approach on the issue.

* They also expressed concern over key downside risks to the global economy and the cross-border effects given a volatile geopolitical situation and tighter financial conditions. 

* India on April 1 introduced a flat 30% tax on all crypto income, and a 1% tax deducted at source on transactions that exceed 10,000 Indian rupees (US$125) from July 1. 

* Aside from digital assets and regulation, the leaders also discussed the upcoming Group of 20 (G-20) presidency and the IMF’s support of India for the role, according to a Twitter post by India’s Ministry of Finance. 

* The 17th meeting of the G-20 will take place in Bali, Indonesia across Nov. 15-16, with expected attendance by Russia and China.

• Nirmala Sitharaman introduced a 30% flat tax on all crypto income from April 1, and a 1% tax deducted at source on transactions above 10,000 Indian rupees (US$125) from July 1.

3. From the valley to oasis: Swiss and Dubai crypto associations team up

Switzerland-based Crypto Valley Association will partner with Dubai’s Crypto Oasis to collaborate in the ongoing development of the blockchain industry in both countries.

The Crypto Valley Association (CVA), based in the Swiss Canton of Zug’s self-proclaimed ‘crypto valley,’ will spearhead the partnership with its counterpart in Dubai to connect a growing group of blockchain communities in Switzerland and the Middle East.

Both associations were founded by Ralf Glabischnig, who played a major role in Zug's establishment as a center for blockchain and cryptocurrency organizations. The likes of the Ethereum Foundation were born in the area, as Cointelegraph Magazine previously explored.  The new partnership between the Swiss and UAE-based associations is set to establish connections and information sharing between businesses in both countries.

Crypto Oasis’ co-founder Faisal Zaidi will spearhead the CVA-led initiative in Dubai, which already has more than 1,100 UAE-based organizations involved in its growing ecosystem. Zaidi highlighted Dubai’s efforts to emulate Zug’s adoption and promotion of blockchain-based businesses, products and services in a statement from the announcement:

The Dubai Crypto Oasis is looking to increase the number of blockchain and cryptocurrency companies within its ecosystem to 1,500 by the end of 2022. In contrast, CVA's ecosystem took nearly six years to surpass the 1,000 mark.

From a regulatory standpoint, Dubai introduced new laws in March 2022 to enhance investor protection and create governance standards for cryptocurrency-related businesses to operate in its jurisdiction.

Around the same time, major cryptocurrency exchange operators Binance and FTX were granted licenses to operate and establish headquarters in Dubai.

4. New French Bill Could Give Authorities Powers to Seize Crypto Assets

The country joins the U.K. in seeking to ensure authorities can get their hands on crypto linked to criminal activities.

In France, suspected criminals could have their crypto assets frozen under a new law presented by the country's government Wednesday.
President Emmanuel Macron’s government wants to join the U.K. in handing the police greater power to freeze assets that could otherwise escape their clutches and be laundered away.

Too often, criminals convert the fruits of their wrongdoing into crypto-assets, which can be more easily dispersed and therefore concealed,” said a report annexed to the government’s draft law.
The measures, which largely repeat those first tabled in March, would extend the rules that already apply to conventional bank account holdings – when authorized by a public prosecutor or investigating judge – to crypto assets.

While much of the bill is dedicated to online crime – such as requiring ransomware payments to be reported to the authorities – it covers a range of other issues under France's Minister of the Interior Gérald Darmanin’s purview, like creating 200 new rural police squads and modernizing the handling of domestic violence cases. June elections saw President Emmanuel Macron re-elected, and Darmanin keeping his job in the cabinet.

The plans are due to be first discussed by the French Senate’s constitutional law committee, responsible for reviewing changes to the criminal code, at a Sept. 14 meeting.
In the U.K., the government led by Boris Johnson promised new powers to seize and recover crypto assets as part of its Economic Crime Bill back in May. On Wednesday, ministers reiterated their commitment to those plans, despite the subsequent change of Prime Minister.

5. Bitcoin squeezes past $20K on US dollar dip as BTC price gains 8.7%

A comedown for U.S. dollar strength provides the fuel for a short squeeze in Bitcoin liquidating over $60 million of shorts.

Bitcoin (BTC) bounced past $20,000 on Sep. 9 as a much-anticipated “short squeeze” took hold.

Bitcoin price hits 10-week low amid 'painful' US dollar rally warning

Previously at twenty-year highs, the U.S. dollar index (DXY) shed a full percentage point to circle 108.6 at the time of writing.

Analysts had often argued that the fate of crypto markets rests with moves in DXY, which remain unpredictable as the Federal Reserve prepares a fresh rate hike next week.

6. BTC Soars 9% Daily to $21K, Here’s the Next Barrier for the Bulls.

Bitcoin is finally showing signs of strength and increased by a considerable 9%. This follows a consolidation phase. The $18K level supported the price once again, proving its sentimental power.

The Daily Chart

The $18K-$19K support appears to be the most crucial level for the bulls to hold. If they fail to do so, the market could fall toward $15K.

Bitcoin’s price has been supported for the fourth time and is now aiming for the 50-day MA at $21.9K. The 50-day moving average line is about to cross the 100-day moving average line, which can be identified as a bullish signal.

If the cryptocurrency successfully breaks the 50-day and the 100-day MA lines, a mid-term bullish phase will become more likely. Also, these lines currently act as critical resistance levels.

The 4-Hour Chart
The $18K level has shown its sentimental power again. The price has increased by around 9% after testing it for the fourth time. As a result, BTC broke the multi-week descending trendline and continued to surge.

The  Fibonacci retracement indicator for the recent bearish expansion move reveals that the 61.8% level of the retracement aligns with the $22.5K resistance. The price must surpass the above-mentioned levels in order to go on with the bullish rally.

7. SEC Enforcement Chief: We Can't Ignore Crypto Law-Breaking
Enforcement Director Gurbir Grewal defended the SEC from accusations it’s stamping out innovation.

Gurbir Grewal, director of enforcement at the U.S. Securities and Exchange Commission, said his agency can’t look the other way as the cryptocurrency industry violates securities laws.

“It often seems that critics are upset because we're not giving crypto a pass,” Grewal said Friday at a Practising Law Institute conference in Washington, D.C. His brief remarks focused largely on crypto – it was the only industry specifically addressed – revealing how much the agency is currently thinking about digital assets.

The SEC needs to “impartially enforce the laws on the books,” and ignoring them "would be a betrayal of trust, and that is not an option for us," he said.

He also noted that crypto has had an outsized, harmful impact on low-low-income and nonwhite consumers.
His comments – and more detailed remarks from the division’s new crypto chief – come on the heels of a series of remarks and interviews done by SEC Chair Gary Gensler this week. Gensler also issued a strong warning to the digital assets industry that his agency would not sit idle on enforcing U.S. laws against unregistered exchanges and tokens that fail to register as securities.
 
David Hirsch, the incoming head of the SEC's crypto enforcement effort, also said at the PLI conference that "registration is key in this area, particularly for issuers." The agency wants to see a culture of compliance in crypto, complete with accountants and specialized attorneys that are there to keep the "wellbeing of their investors forefront in their minds."

8. Bitcoin-powered Darkweb Drug Dealers Handed Jail Time in South Korea.

Drug traders who exchanged narcotics for bitcoin (BTC) using darkweb portals have been handed jail time and suspended sentences as South Korean courts following scores of arrests made earlier this month.

Two separate crackdowns – one in the capital Seoul and the second in North Gyeongsang Province – have seen over 200 people arrested for buying or selling drugs such as ketamine, cannabis, and MDMA (ecstasy) using the Telegram messenger app, bitcoin wallets, and darkweb portals that charged users for using their services.

Newsis reported that four people – all aged between 34 and 36 but unnamed for legal reasons – were sentenced at a branch of the Seoul Northern District Court. The presiding judge handed out jail sentences of between 10 months to one year in prison (suspended), as well as two years of probation. The four were handed fines of up to USD 18,000 and ordered to attend 40 hours of “drug therapy classes.”

The court heard evidence that the four used “dead drop” methods to trade drugs – with customers paying for their purchases beforehand. Dealers would then visit pre-agreed locations in public spaces to drop off bags of drugs. Buyers would then be instructed to visit these locations and pick up their purchases once dealers had left the scene.

9. US Government Recovers $30M From Crypto Game Axie Infinity Hack
Hackers stole over $600 million from Axie earlier this year.

Crypto analytics firm Chainalysis announced Thursday it helped the U.S. government recover about $30 million stolen from online video game Axie Infinity earlier this year.

In a blog post, Erin Plante, senior director of investigations at Chainalysis, said law enforcement officials were able to recover the funds, which were stolen by Lazarus Group, a North Korean hacking entity tied to multiple crypto thefts over recent years.

"With the help of law enforcement and leading organizations in the cryptocurrency industry, more than $30 million worth of cryptocurrency stolen by North Korean-linked hackers has been seized. This marks the first time ever that cryptocurrency stolen by a North Korean hacking group has been seized, and we’re confident it won’t be the last," Plante said.

Hackers stole over $600 million from Axie this past spring, laundering many of the proceeds through privacy mixer Tornado Cash. The U.S. Treasury Department later sanctioned Tornado Cash for facilitating money laundering.