BakerHostetler Announces Launch Of New Cryptocurrency Products, Bank Trials In Crypto Trading, Studies On Bitcoin Halving, DeFi Regulatory Landscape, And Ongoing Crypto Enforcement And Security Breaches – CryptoInfoNet

Launch of Innovative Crypto Payment Solutions and Bank’s Crypto Trading Initiative

Authored by Christopher W. Lamb

Recent news has highlighted that Transak, an eminent provider of payment infrastructures for cryptocurrencies and NFTs, has joined forces with an international payments conglomerate enhancing its services globally. As detailed in a recent blog post from Transak, this partnership aims to give users in over 145 nations the ability to convert crypto assets into their local currencies. This alliance is also set to facilitate immediate withdrawals to cards and increase the options for cryptocurrency to fiat currency conversions significantly.

Additional reports have emerged stating that MetaMask, a widely-used cryptocurrency wallet, is collaborating with Consensys Staking to introduce a new service enabling users to establish Ethereum validator nodes with a minimum of 32 Ethereum. This service is presently described as offering an estimated yield of 4 percent, despite a 10 percent service charge, with the possibility of yield variation.

Moving onto banking sector news, Germany’s second-largest bank is reported to be gearing up for a cryptocurrency trading test phase within this year. The financial institution, managing assets worth approximately $627 billion, launched a crypto custody platform in November 2023 following the announcement that it would employ Metaco’s technological solutions to venture into the space of crypto services.

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New Crypto Exchange Report Sheds Light on Upcoming Bitcoin Halving Effects

Penned by Robert A. Musiala Jr.

In recent developments, a prominent U.S. crypto exchange has put forth insights in a paper titled “Bitcoin Halving and Miner Economics,” exploring the forthcoming Bitcoin halving expected in April 2024. Key findings of this report include:

• Post-halving could see miners’ revenue per terahash dwindle to unprecedented lows unless there is considerable price growth of Bitcoin, while revenue from transaction fees is starting to become crucial.
• As the network hash rate becomes saturated, variations in transaction fees are impacting miners’ revenue more than price volatility, a trend that might accentuate after the halving.
• The halving might squeeze profit margins, possibly causing continuous selling pressure of BTC by miners and a consolidation trend among miners and mining pools.
• Ongoing uncertainties about persistent price rises highlight the need for sustainable miner revenues through transaction fees, a process which seems to be already taking shape as of 2023.
• Although the network hash rate is expected to ascend short-to-medium term, the prospect of unsustainable growth looms, potentially requiring significant price increments.
• Long-term strategies to incentivise miners need to be explored beyond relying only on the current emission schedule and price escalation.
• The halving will emphasize the growing importance of transaction fees within the economics of mining operations.

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A White Paper Proposes Measures to Abate Illicit Activities in the DeFi Sector

Written by Robert A. Musiala Jr.

According to a freshly published white paper, there is a proposal outlining a framework designated to effectively address and curtail illicit financial actions within decentralized finance (DeFi) without compromising its permissionless and impartial foundation. The executive summary describes a tripartite proposal that “(1) introduces ‘independent control’ as a definition to recognize protocols based on smart-contracts that fall outside the realm of DeFi; (2) recommends categorizing authentic DeFi protocols as ‘critical infrastructure’, thus enabling surveillance and security collaboration by OCCIP; and (3) contemplates new legislative measures that would obligate certain businesses involved in DeFi transaction-related communications to adopt illicit finance risk management practices, without categorizing them as ‘financial institutions’ under the Bank Secrecy Act.” The aim of this paper, as stated in the abstract, is to initiate a substantial dialogue on how to balance the fight against illicit financial activities while nurturing the progressive innovation in DeFi.

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SEC Intervenes in Cryptocurrency Pyramid Scheme; Authorities in Germany and the UK Confiscate Illegal BTC

Documented by Robert A. Musiala Jr.

The U.S. Securities and Exchange Commission recently disseminated a press announcement revealing the charge against Xue Lee (also known as Sam Lee) and Brenda Chunga (also known as Bitcoin Beautee) for their involvement in HyperFund, a deceptive crypto pyramid scheme that acquired in excess of $1.7 billion from global investors. The press statement outlined that from mid-2020 to early 2022, Lee and Chunga promoted HyperFund, deceiving investors with promised substantial returns tied to asserted cryptocurrency mining and partnerships with a Fortune 500 enterprise. However, unbeknownst to investors, HyperFund primarily depended on new investor funds, with Lee and Chunga either conscious of or recklessly ignoring the scheme’s true nature.

In separate news, authorities in Europe have recently undertaken significant bitcoin confiscations. German police seized a cache of 50,000 bitcoins linked to a website accused of copyright infringement under German law. Elsewhere, U.K. court disclosures unveiled the apprehension of 61,000 bitcoins associated with a fraudulent scheme originating from China.

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Unrelenting Crypto and DeFi Security Breaches; Revelations About DEX Trading Manipulations

Reported by Robert A. Musiala Jr.

Recently disclosed reports inform that a high-ranking executive from an established U.S. crypto and financial tech organization fell victim to a hefty hack of his personal crypto holdings, resulting in a loss of about $112.5 million in crypto assets.

Another analytical report highlights a spate of DeFi hacking incidents, with January’s breaches costing a cumulative total upwards of $38.9 million. This includes a list of the top five DeFi platform hacks of the month, particularly targeting platforms like Radiant Capital, Gamma Strategies, Wise Lending, Socket, and Goledo Finance.

Fresh insights from a blockchain analytics company, Chainalysis, reveal that 54 percent of ERC-20 tokens listed on decentralized exchanges in the year 2023 exhibit patterns significant for pump and dump schemes. The firm stresses, however, that such questionable activities contribute to a mere 1.3 percent of the overall DEX trade volumes.

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