Solana Mobile made a big impact last year when it introduced Saga, a smartphone designed specifically for cryptocurrency enthusiasts. The phone stood out because it had a built-in hardware wallet and supported decentralized apps. It was a success, and now Solana Mobile is working on a new, more affordable smartphone to attract a wider audience. According to a report by Coindesk, the upcoming Solana phone will have the same important features that made Saga popular among crypto users. The new phone will have a built-in Solana wallet, allowing users to securely store the SOL token, other cryptocurrencies, and NFTs. It will also come with a special app store that has a selection of decentralized apps (dApps) for users to explore.

However, Solana Mobile wants to make the new phone more appealing to a larger group of people by improving the hardware and lowering the price. Saga was originally quite expensive, priced at $1,000, which may have limited its appeal despite its interesting capabilities. The new phone will have updated components and specifications, including a potentially faster processor, better cameras, and other improvements. Most importantly, Solana Mobile plans to significantly reduce the price to make it more competitive and affordable compared to Saga.

A Motivation From the Success of Saga

Solana Mobile’s decision to release a new and more affordable cryptocurrency smartphone was inspired by the unexpected success of Saga phone. Although it initially struggled to attract buyers, it eventually gained a loyal following in the crypto community and caught the attention of investors interested in its token giveaways. Saga phones came with a pre-loaded amount of the BONK tokens and provided built-in support for claiming additional tokens. When crypto traders realized that the free tokens exceeded the $1,000 purchase price, demand for the limited supply of Saga phones skyrocketed. In secondary markets like eBay, prices reached as high as $3,200 per phone, more than three times the original cost.

Solana Mobile is now taking advantage of Saga’s popularity by improving the hardware and making crypto-related features more accessible to people who are curious about cryptocurrencies. Rather than only targeting experienced crypto users, a cheaper and more powerful Solana phone could show the usefulness of decentralized apps and digital wallets to everyday people. In addition, maintaining the core features of the first mobile phone can still appeal to its dedicated supporters and traders. It remains to be seen how successful this strategy will be and whether Solana Mobile can avoid the supply constraints and speculative frenzy that affected Saga. However, the goal is clear: to keep the unique benefits of cryptocurrencies while enhancing the overall smartphone experience.

If Solana Mobile can deliver on these promises with its new phone, while keeping the price reasonable for regular mobile users, it could be a significant step towards mainstream adoption of cryptocurrencies. More people would have the opportunity to experience the benefits of the decentralized internet and apps right from their pockets.

Klaytn and Finschia Foundations have announced a joint proposal for a merger, seeking to create a new mainnet that not only boasts technological superiority but also envisions becoming Asia’s premier Web3 ecosystem.

Objectives of Klaytn and Finschia’s Merger

The proposal, open for discussion with governance voting scheduled from January 26 to February 2, aims to consolidate the foundations into a single entity, combining their technological prowess, services, and extensive business networks. The primary objective of this proposed merger is to establish a new industry leader with a cutting-edge blockchain supporting both Ethereum Virtual Machine (EVM) and CosmWasm. This aims to attract Ethereum and Cosmos builders, capitalizing on the strengths of each ecosystem for enhanced interoperability. The mainnet aspires to create one of the most extensive Decentralized Application (DApp) ecosystems in Asia, bringing together South Korea and Japan’s leading blockchains, resulting in over 420 DApps.

Additionally, the proposed deal will see the merger of Klaytn’s robust networks in Korea, Singapore, and Vietnam with Finschia’s strong presence in Japan, Taiwan, Thailand, and Abu Dhabi. This strategic integration will enable interoperability between Klaytn’s Decentralized Finance (DeFi) and gaming services and Finschia’s NFT, payment, and AI services. As part of the merger, the team noted that a new integrated token, provisionally named PDT, will be issued. Holders of KLAY and FNSA will be able to claim this new token, usable on both LINE and Kakao messengers. The integrated token will feature a revamped tokenomics, with approximately 24% of the total supply burned, reducing the inflation rate to 5.2%. A new 3-Layer burning model will be introduced to sustain growth and ensure a balanced token ecosystem.

“We are excited to be taking the first step toward unlocking the enormous synergy of merging the public blockchains started by Kakao and LINE, which are both leading IT companies in Asia,” the Klaytn Foundation and Finschia Foundation said in a joint statement. “We will give our best to make this merger an opportunity to innovate and lead the Asian blockchain industry in both technology and adoption,” added the companies.

Business Initiatives and Expansion Plans

Should the proposal pass both Klaytn and Finschia’s governance voting processes, the foundations will immediately begin work on the chain merge and subsequent business initiatives. This includes infrastructure development for institutional investors, strengthening DeFi infrastructure with the launch of a native stablecoin, discovery, and onboarding of AI-based DApps, and enhancing the onboarding infrastructure for Web2 companies. Furthermore, the foundations will continue to develop messenger-based Web3 services and the digital commerce platform, acting as a springboard for Asia’s IT and entertainment enterprises. This merger is poised to create the largest Web3 business network in Asia, fostering communities of holders, developers, and partners in each Asian country.

Binance, the world’s largest cryptocurrency exchange by trading volume, has released its yearly report on the digital assets industry for 2023 and a possible outlook for the new year. In a blog post published on January 15, 2024, the company revealed that the industry witnessed a significant comeback with a 109% increase in total market capitalization after the year-long turbulence in 2022.

Market Resilience amidst Turbulence

The report, authored by the Binance research team, JieXuan Chua, CFA, Moulik Nagesh, Shivam Sharma, and Brian Chen, revealed that the market uptick was driven by substantial gains in the first (Q1) and fourth quarter (Q4) of 2023. Binance attributed the market performance in Q4 to the rise in optimism driven by the anticipated launch of Bitcoin spot exchange-traded funds, which was finally approved on January 10, 2024, by the US Securities and Exchange Commission (SEC). The report also cited optimism around the upcoming Bitcoin halving in April as one of the critical factors that contributed significantly to the 109% increase in market cap in 2023. Furthermore, Binance said the broader financial market, marked by resilient global GDP growth and moderated inflation rates, greatly impacted the market growth for risk assets such as cryptocurrencies.

Market Analysis: DeFi vs. NFTs

In terms of segments, the decentralized finance (DeFi) sector saw a robust growth of 38.9% year-on-year (“YoY”) compared to the non-fungible tokens (NFTs). The rise of liquid staking tokens (“LSTs”) and LSTf are major contributors to the positive performance of DeFi in 2023. Additionally, the emergence of intent-centric architecture and the rising adoption of real-world assets also did an excellent job of pushing the DeFi sector for growth. For NFTs, the sector started picking up towards the end of the year. According to the report, the NFT market experienced a rebound in Q4 2023 after decreased interest in digital artworks and other collectibles following the NFT boom in 2021. The market recorded $1.7 billion in trading volume in December, with Bitcoin NFTs showing the most impressive growth.

The Binance report said the ongoing competition among NFT marketplaces emerged as a significant theme for the sector’s growth last year. The study also cited the imminent launch of the Blur-aligned Layer 2 platform, Blast, as a noteworthy development. Regarding SocialFi, the introduction of friend.tech in August 2023 propelled the sector into the limelight, showcasing the market’s potential and its allure for creators seeking to monetize content. Despite the initial success, activity on SocialFi platforms has waned. However, Binance believes the coming months will unveil whether there’s a potential resurgence in interest or if new trends will dominate the evolving landscape.

Eight Key Growth Themes for 2024

The Binance report revealed that on-chain metrics indicated a remarkable resurgence in gaming activity in 2023. The final week of the year witnessed a surge, with 12.6 million weekly unique active wallets—more than double the count at the beginning of the year, which stood at 5.8 million. With the imminent launch of multiple games by renowned gaming giants, 2024 is poised to be an exciting year for gamers worldwide. For 2024, Binance believes the crypto market will experience significant growth driven by eight key themes such as the Bitcoin ecosystem, ownership economy applications, artificial intelligence (AI), real-world assets (RWAs), on-chain liquidity, and institutional adoption.

Andrew Peel, the Head of Digital Assets at financial services giant Morgan Stanley (NYSE: MS), has warned that the use of cryptocurrencies like Bitcoin could negatively impact the US dollar. Peel said a potential paradigm shift in the way people view and interact with digital assets, including CBDCs (Central Bank Digital Currencies), could weaken the US dollar’s dominance as a global currency.

Perception of Bitcoin and CBDCs May be Bad for the US Dollar

In an investment note on Friday, Peel highlighted “a paradigm shift in the global perception and use of digital assets” as a threat to the dollar. The report notes that the past 15 years of Bitcoin’s existence have seen global adoption grow at a “remarkable” rate. There are now 106 million people holding Bitcoin, with Bitcoin ATMs available to holders in more than 80 countries. In addition to the increase in the popularity and adoption of cryptocurrencies, Peel noted the recent approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). The report states that this is a factor that supports the growth and adoption of cryptocurrencies and potentially threatens the dollar.

In addition to Bitcoin, Peel highlights the role played by CBDCs. The note explains that these central bank currencies could also weaken the dollar for many reasons. One such reason is a CBDC’s function as a tool for cross-border transactions, facilitating the transfer of funds without relying on the dollar. Peel wrote: “[CBDCs] hold the potential to establish a unified standard for cross-border payments, which could diminish the reliance on traditional intermediaries like SWIFT and the use of dominant currencies such as the dollar…With their increasing importance, dollar-backed stablecoins are set to have a profound impact on the financial sector, potentially reshaping how money is moved across borders.”

Despite warning about the effect of CBDCs on the dollar, especially with cross-border payments, Peel noted advantages of central bank currencies, including supporting global finance. The report states that CBDCs can significantly support innovation by automating transactions using smart contracts. This encourages the use of “programmable money”, making the possibility very real.

CBDCs So Far

More than 100 countries have either launched a CBDC or are currently working on one. According to the Atlantic Council’s CBDC Tracker, only 35 countries considered a CBDC as of May 2020. Now, 130 countries, 98% of the world’s GDP, are now exploring digital versions of their national currencies. The tracker shows that 11 countries have launched CBDCs, while 21 and 33 are in the pilot and development stages, respectively. In addition, there are currently 46 countries in the research phase. Last year, Morgan Stanley predicted in a research report that the stablecoin market should expect more government regulation as its popularity increases. However, the report suggested that the regulation may not be as accommodating as people might expect.

In November, Morgan Stanley offered a bullish prediction for the crypto sector. According to the company’s analysts in a report, Bitcoin will see an impressive bull run following the upcoming halving event expected in April. However, the report did not specify a price target.

The Philippine Securities and Exchange Commission (SEC) has greatly increased its regulatory fight against the global crypto trading giant Binance. The SEC accused the crypto exchange of illegally operating in the country without licenses. In a recent notice, the Philippine SEC clearly stated that Binance does not have official permission to sell investments or securities to average investors across the country. Calling out the exchange is a part of the agency’s broader efforts to reveal unregistered crypto companies and coordinate blocking access to their platforms.

Even though Binance acts as an approved broker in some places overseas, it still has to meet many legal requirements to handle securities activities in the Philippines under the country’s Securities Regulation Code. This includes officially registering all investment products made available to Filipinos, starting a Philippines-based company, getting a secondary permit for public offerings, and more—none of which the crypto exchange has done according to the SEC’s notice.

In targeting the issue, the regulator also highlighted the company’s use of aggressive social media promotions meant to attract lots of customers in the Philippines. Ads promise Filipinos the ability to trade crypto assets with leverage, speculate on derivatives like futures and options deals, earn interest through crypto savings accounts, take part in staking services, and invest in initial coin offerings—all without proper registration.

Some Steps the Philippine Regulator Is Taking against Binance

In hopes of stopping Binance’s access, the SEC said it convinced both the National Telecommunication Commission and the Department of Information and Communications Technology to take coordinated actions to block the exchange’s website and servers. Moreover, the Commission strongly warned that people promoting Binance’s illegal operations in the country face potential criminal charges, including huge fines of nearly $100,000 or over 20 years in jail. The agency pleaded with the public to be very careful before trusting money to unregistered platforms.

To enforce the crackdown on the exchange’s offerings, regulators outlined plans to fully prohibit access to the exchange within three months, while giving investors a window to close positions and withdraw holdings if wanted. Additionally, the SEC made urgent requests to leading platforms like Google, Facebook, and others to right away ban online advertisements sponsored by Binance targeting web users in the Philippines.

While the SEC removal of unlicensed crypto companies seems far-reaching, some Filipino retail investors have accepted Binance as a trusted marketplace for digital asset trading, praising its services on X.  It seems like the exchange has made some unsuccessful moves in order to get fully regulated in the country last year or the company has not met some basic requirements required by the necessary commissions

However, this does not change the fact that Binance is presently involved in a lot of legal issues that could affect the future of the crypto company. These include the company’s guilty pleas in the US to anti-money laundering violations, along with the recent exit of its founder, Changpeng Zhao, from the CEO position. For now, the regulatory grip continues to tighten on the world’s largest crypto trading center, Binance, with the Philippines representing the latest country to make accusations of illegal financial activities.

South Korea, through its apex bank, the Bank of Korea (BOK) – has revealed its plans to begin testing its central bank digital currency (CBDC) in 2024. A local news outlet, the Korea Times, confirmed the report, saying that the testing will begin either by September or October running for three months.

The report also claimed that South Korea would allow 100,000 citizens to participate in the pilot process. However, they may not store, exchange, or send the CBDC during this period. That is, participants may only use the CBDC to settle payments.

BOK Aims to Gather Information from Testing

The Bank of Korea will be looking to use the pilot stage of its CBDC to determine things such as acceptability and ease of use. It will also seek to determine the effectiveness of issuing and distributing the digital currency, among other things.

To easily achieve some of these goals, the BOK has said it will partner with the Korea Exchange to integrate its CBDC into a simulation system for carbon emissions trading. According to the Korea Times, that is to test the feasibility of delivery versus payment transactions.

It will also work hand in hand with several private banks and public institutions, while also tapping the Bank for International Settlements (BIS) to provide expert technical support.

Part of the BOK’s statement, as quoted by the local newspaper, reads:

“The pilot project will be conducted first in the fourth quarter of 2024. The possibility of conducting separate pilots will be considered as well if banks propose new individual projects.”

Efforts in Top Gear

From all indications, the BOK is leaving nothing to chance with its CBDC plans. Its commitment is once again revealed by its partnership with the BIS, which has been at the forefront of global CBDC adoption. Like South Korea, the Swiss National Bank also sought the help of the BIS to develop a wholesale CBDC. However, the BIS is doing more for the Swiss Bank than just developing a CBDC. It is also helping the institution to build a joint platform with the central monetary authorities of China, Hong Kong, Thailand and the United Arab Emirates.

Even the European Central Bank (ECB) is not left out. The BIS is currently developing a proof-of-concept for a transactions tracker with the ECB, among many other projects. In closely related news, Agustin Carstens, general manager of the BIS, was also recently spotted in South Korea’s capital city, Seoul.

Infura, the Web3 infrastructure firm from Consensys, has just entered into multiple partnerships with Microsoft and Tencent. The move, which appears to be in line with its vision of achieving progressive decentralization, also saw it tap 16 other Web2 giants alongside the leading technology giants.

Infura to Launch a DIN

Infura announced the partnership during a Decentralized RPC Summit in Istanbul on Wednesday. According to the announcement, it will use the partnership to launch a Decentralized Infrastructure Network (DIN). For what it’s worth, the Infura network is arguably Ethereum’s main point of access. At least, for the larger percentage of the decentralized finance (DeFi) sector. However, before now, there was the problem of centralization in that it was single-handedly controlled by Consensys. This meant that it handled all of the costs and complexities of running the network alone.

However, with the new DIN, which is slated to be launched in Q4, Infura expects that all limitations will be broken, thereby giving rise to a more flourishing ecosystem.

About the partnerships, the senior product manager at Consensys, Andrew Breslin clarified that the idea was more about the numbers than the big-name firms that it appears Infura had targeted. He recalls the problems Consensys faced running a service like Infura. He then added that that might now be a thing of the past. Part of his statement reads : “Now there’s this huge flourishing ecosystem of Web3 infrastructure providers that can provide a service that’s complimentary to Infura.”

To buttress his point, Breslin explained that the DIN has a “failover support” feature for the Ethereum and Polygon networks. This means that in a situation where there is an outage somewhere, traffic can be re-routed to one or many DIN partners. This, he said will result in higher uptime as time progresses.

Room for Improvement

Per Breslin, the current list of partners is not the ultimate one. He shared this while speaking to the 18 pioneering partners of the DIN. He noted that the DIN would remain open to other “highly reliable” internet infrastructure providers. For now, though,  the DIN remains in a temporary centralized state for a trial period called the ‘federated phase,’ says Breslin.  But, eventually, it would be governed as a kind of decentralized autonomous organization. That is a structure where every partner wields equally significant influence over the network.

Blockchain infrastructure firm Paxos has announced plans to issue a US dollar-backed stablecoin for its customers in Singapore. The initiative comes after Paxos reportedly received preliminary approval from the Monetary Authority of Singapore (MAS), paving the way for the establishment of Paxos Digital Singapore Pte. Ltd. This entity will operate under the Payments Services Act (PSA) while awaiting full regulatory approval to conduct business in Singapore.

The Initial Approval and Road Ahead for Paxos

The in-principle approval granted by the Monetary Authority of Singapore positions Paxos to offer digital payment token services, marking a significant step towards establishing a foothold in the Singaporean market. The regulatory green light provides an opportunity for Paxos to engage with customers under the PSA, demonstrating a commitment to compliance while awaiting full approval.

Upon receiving the anticipated full approval, Paxos plans to collaborate with enterprise clients to issue a US dollar-backed stablecoin. This move aligns with the increasing global demand for the US dollar, addressing challenges faced by consumers outside the United States in accessing dollars securely and reliably while adhering to regulatory protections. “Global demand for the US dollar has never been stronger, yet it remains difficult for consumers outside the US to get dollars safely, reliably, and under regulatory protections,” said Paxos Head of Strategy Walter Hessert in a statement.

It is worth mentioning that the announcement comes just over a year after Paxos was granted an operating license in the Southeast Asian country, allowing it to provide tokenization, custody, and trade services under the same bill as per Wednesday’s announcement. Paxos is known for its commitment to transparency, evident in its practice of publishing monthly attestations and reserve reports for its stablecoins. This commitment to openness not only builds trust but also sets a benchmark for regulatory compliance in the cryptocurrency space.

Stablecoin Market Growth

Paxos’ decision to delve into stablecoins aligns with the burgeoning growth of this market segment. According to brokerage firm Bernstein, the stablecoin market is projected to witness substantial growth, soaring from $125 billion to an estimated $2.8 trillion over the next five years. This expansion signifies a rising demand for stable digital currencies, and Paxos is poised to capitalize on this trend.

Analysts, including Gautam Chhugani, predict that major global financial and consumer platforms will play a pivotal role in the stablecoin market’s growth. The concept of co-branded stablecoins, closely linked to these platforms, is expected to facilitate seamless transactions and enhance user engagement within their ecosystems. This integration is seen as a key driver for the mass adoption of stablecoins beyond specialized crypto platforms.

Aside from the US dollar, the stablecoin market is seeing developments in other currencies. Circle’s European Union strategy and policy director, Patrick Hansen, highlighted the potential growth of the euro stablecoin market. Remarkably, Circle, a well-known crypto player, currently has one of the top five Euro-pegged stablecoins, the Euro Coin (EUROC).

On Monday, October 30, the Dow Jones Industrial Average (INDEXDJX: .DJI) gained by over 511 points or 1.58%, ending the trading at 32,928.96. This was the biggest single-day gain market by the index, after June 2023. The S&P 500 saw a robust 1.2% surge, reaching 4,166.82, marking its most substantial gain since late August. Simultaneously, the Nasdaq Composite also advanced, rising by 1.16% to 12,789.48. This week is big for traders with major announcements ahead such as jobs report, Federal Reserve rate decision, and Apple Inc‘s (NASDAQ: AAPL) earnings.

The Communication services sector led the way in S&P 500 (INDEXSP: .INX) performance, surging by over 2% in its most substantial daily gain since late August. Mega-cap tech giants Amazon.com Inc (NASDAQ: AMZN) and Meta Platforms (NASDAQ: META) followed suit, with impressive jumps of 3.9% and 2%, respectively.

These developments follow the S&P 500’s recent dip into correction territory last week. During the week, the broader index experienced a 2.5% decline, pushing it more than 10% below its closing high for 2023. Moreover, it has sustained a 2.8% drop in October, signaling its third consecutive month in the red, which hasn’t occurred since the pandemic’s outbreak in 2020. Speaking to CNBC, Art Hogan, chief market strategist at B. Riley Financial said: “We closed on the lows last week. Oftentimes when you get that kind of negativity going into a weekend and nothing new arises that changes the outlook for markets and the economy, you get a bit of a claw back on Monday.”

“Investors are finally feeling a little bit more confident that perhaps we priced in enough bad news and that’s really manifesting in a stronger market today,” he added.

All Eyes on the Fed Decision

The Federal Reserve’s upcoming decision on Wednesday is highly anticipated, and it’s widely expected that the central bank will maintain its current benchmark interest rate. Given that the recent stock market correction has been primarily driven by rising interest rates, investors are eager for any signals from the Fed that it may conclude its rate hikes. Many traders anticipate that the Fed will refrain from further rate increases for the remainder of 2023.

Hogan said: “Whilst we have a Fed meeting, the consensus has never been clearer that they’re not going to do anything at this particular meeting, and that’ll be back-to-back meetings of them not raising rates. I think that may signal that the cycle of raising rates is over, and I think that that likely helps to sort of stop that parabolic rise we’ve seen in Treasury yields.”

At the beginning of last week, the 10-year Treasury yield surged above the 5% mark, but it was hovering around 4.89% on Monday. The upcoming October jobs report, scheduled for Friday, is eagerly awaited by investors, as they are looking for signs of a potential labor market slowdown. A more relaxed labor market would likely make the Federal Reserve more comfortable with maintaining its current interest rate levels for the remainder of the year.

The Open Network (TON) Believers Fund, a non-profit fund operating as a smart contract on the TON blockchain has successfully raised a remarkable 1.3 billion TON coins (approximately 25% of TON supply) from users that will be locked for 2 years.

This impressive achievement has far-reaching implications for the project and showcases the remarkable support and enthusiasm of the crypto community for TON.

The TON Believers Fund in a Nutshell

As highlighted in a blog post, the TON Believers Fund was designed with the core mission of attracting large holders and early miners within the TON community. By locking their TON holdings into the smart contract, these contributors effectively take them out of circulation.

This reduction in the circulating supply has the potential to exert upward pressure on the TON token’s price. Additionally, it addresses questions and concerns surrounding TON’s tokenomics, bolstering confidence among investors and users.

Users were given the option of locking their TON coins for five years and expecting rewards through a mechanism similar to regular staking or donating their TON coins to a reward pool that would benefit those who had locked their coins for the specified duration.

The minimum donation threshold was set at 50 TON, making it accessible to a wide range of community members. Funds were accepted until the closure of the initiative on October 23, 2023. The TON coins deposited will remain locked until October 12, 2025, with a gradual unlocking schedule over the subsequent three years.

At the time of writing, the price of TON stands at approximately $2.17, reflecting a notable 11.28% increase in the past week. While it is challenging to attribute this price movement solely to the TON Believers Fund, it is worth noting that TON, like other cryptocurrencies, is influenced by market dynamics.

However, TON’s recent positive news, increased development activity, and strategic investments, such as MEXC Ventures’ eight-figure commitment, have also contributed to its growing appeal.

Participation and Support for TON Believers Fund

Since its launch, the TON Believers Fund collected a substantial amount of TON tokens. To be precise, it gathered 1,317,379,088 TON coins. This total comprises 1,034 billion TON locked by users and 284 million TON donated for rewards. Participants can anticipate a reward of approximately 7%.

The TON Foundation, crucially, extended its support to this initiative, bolstering the project’s support. The foundation helped promote the event and secured an additional 1 million TON. In tandem with the foundation’s action, a prior vote in the same year’s winter saw 1.1 billion TON locked in for 48 months. This significant commitment involved funds from large inactive early miner addresses.

In total, these two initiatives account for more than 2.3 billion TON tokens being locked for the next several years. Astonishingly, this figure represents nearly 50% of the total TON supply, which is a significant milestone for the project.

After finding that the sanctioning of Tornado Cash only led to the introduction of many other crypto mixers around the world, the United States Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced new proposed measures to combat the growth of international crypto mixers. According to the announcement, FinCEN highlighted a Notice of Proposed Rule Making (NPRM) in a bid to identify international convertible virtual currency mixing as a security threat through money laundering. Precisely, FinCEN highlighted that the CVC mixing has significantly enabled illegal activities and terrorist acts by Hamas, Palestinian Islamic Jihad, and the Democratic People’s Republic of Korea (DPRK).

US Takes Geopolitical Fights to the Crypto Market

The announcement comes a year after the Department of Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash for ostensibly aiding in laundering more than $7 billion of illegal proceeds. However, the US bid to control software development has been met with notable resistance by crypto leaders, including Coinbase Global Inc. (NASDAQ: COIN) CEO Brian Armstrong. Moreover, most of the crypto mixers are a result of open-source software development; in the same way, a road builder cannot be blamed for the careless driving that leads to fatal accidents.

Nonetheless, the United States government has argued that terrorists have been finding their operations through crypto mixers, hence making the ongoing war in Ukraine and Israel more difficult.

“CVC mixing offers a critical service that allows players in the ransomware ecosystem, rogue state actors, and other criminals to fund their unlawful activities and obfuscate the flow of ill-gotten gains,” said FinCEN Director Andrea Gacki. “This is FinCEN’s first ever use of the Section 311 authority to target a class of transactions of primary money laundering concern, and, just as with our efforts in the traditional financial system, Treasury will work to identify and root out the illicit use and abuse of the CVC ecosystem," she added.

The United States has played a crucial role in supporting both Ukraine and Israel in their respective wars through financial aid and military support. Earlier this week, Tether, the leading stablecoins company, announced that it worked closely with Israel’s National Bureau for Counter Terror Financing (NBCTF) in identifying and freezing 32 addresses with about $873k linked to the Hamas group in Gaza.

Earlier this year, Israel Defense Minister Yoav Gallant announced that the NBCTF had seized crypto assets belonging to Lebanon’s Hezbollah and Iran’s Quds Force, amounting to over $1.7 million. Notably, the NBCTF worked closely with blockchain analytic and forensic firm Chainalysis in identifying and freezing the funds.

After finding that the sanctioning of Tornado Cash only led to the introduction of many other crypto mixers around the world, the United States Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced new proposed measures to combat the growth of international crypto mixers. According to the announcement, FinCEN highlighted a Notice of Proposed Rule Making (NPRM) in a bid to identify international convertible virtual currency mixing as a security threat through money laundering. Precisely, FinCEN highlighted that the CVC mixing has significantly enabled illegal activities and terrorist acts by Hamas, Palestinian Islamic Jihad, and the Democratic People’s Republic of Korea (DPRK).

US Takes Geopolitical Fights to the Crypto Market

The announcement comes a year after the Department of Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Tornado Cash for ostensibly aiding in laundering more than $7 billion of illegal proceeds. However, the US bid to control software development has been met with notable resistance by crypto leaders, including Coinbase Global Inc. (NASDAQ: COIN) CEO Brian Armstrong. Moreover, most of the crypto mixers are a result of open-source software development; in the same way, a road builder cannot be blamed for the careless driving that leads to fatal accidents. Nonetheless, the United States government has argued that terrorists have been finding their operations through crypto mixers, hence making the ongoing war in Ukraine and Israel more difficult.

“CVC mixing offers a critical service that allows players in the ransomware ecosystem, rogue state actors, and other criminals to fund their unlawful activities and obfuscate the flow of ill-gotten gains,” said FinCEN Director Andrea Gacki. “This is FinCEN’s first ever use of the Section 311 authority to target a class of transactions of primary money laundering concern, and, just as with our efforts in the traditional financial system, Treasury will work to identify and root out the illicit use and abuse of the CVC ecosystem," she added.

The United States has played a crucial role in supporting both Ukraine and Israel in their respective wars through financial aid and military support. Earlier this week, Tether, the leading stablecoins company, announced that it worked closely with Israel’s National Bureau for Counter Terror Financing (NBCTF) in identifying and freezing 32 addresses with about $873k linked to the Hamas group in Gaza. Earlier this year, Israel Defense Minister Yoav Gallant announced that the NBCTF had seized crypto assets belonging to Lebanon’s Hezbollah and Iran’s Quds Force, amounting to over $1.7 million. Notably, the NBCTF worked closely with blockchain analytic and forensic firm Chainalysis in identifying and freezing the funds.