The Top 4 News You Need to Know: Security, Regulation, Innovation, and Risk

The crypto market is always evolving and changing, with new developments and trends happening every day. If you want to stay ahead of the game and make informed decisions, you need to keep up with the latest news and insights. That’s why I have compiled a list of the top 4 news you need to know today, covering topics such as security, regulation, innovation and risk. Let’s dive in!

1. Gamma Protocol Investigates Potential Attack That Drained Ether 🧐

Gamma Strategies, an Ethereum-based asset management protocol, has suffered a security incident that resulted in almost $500K worth of ETH being drained from its smart contracts. According to a blockchain security firm PeckShield, the attacker exploited a flaw in the protocol’s logic that allowed them to withdraw more funds than they deposited.

Gamma Strategies has confirmed the “possible security incident” on its Twitter account, and assured users that they could still withdraw their funds if needed. It also added that it would reveal further details about the incident after completing its investigation. The protocol has also paused its operations and urged users not to deposit any more funds until further notice.
This incident highlights the importance of security and auditing in the DeFi space, as hackers are constantly looking for vulnerabilities to exploit. Users should always do their own research and due diligence before investing in any protocol or platform, and be aware of the risks involved.

2. South Korea Proposes Ban on Credit Card Payments for Crypto 🇰🇷

South Korea’s Financial Services Commission (FSC) has proposed an amendment to the country’s Credit Finance Act, which seeks to prohibit citizens from purchasing cryptocurrencies using credit cards. The FSC stated that the main reason for the amendment is to limit its crypto traders from buying crypto on foreign crypto exchanges, which could lead to illegal outflow of domestic funds, money laundering and the encouragement of speculative behaviour.

The FSC plans to collect public feedback on the amendment proposal until Feb. 13. It’s expected to be reviewed and voted on with the aim of implementation in the first half of 2024. If passed, the amendment would make South Korea one of the few countries in the world that ban credit card payments for crypto, along with China and India.

This move could have a significant impact on the crypto market in South Korea, as credit cards are a popular and convenient way of buying crypto for many traders. It could also affect the global crypto market, as South Korea is one of the largest and most active crypto markets in the world, accounting for about 10% of the global trading volume.

3. Goldman Sachs Eyeing Bitcoin ETF Role Via BlackRock and Grayscale: Sources 🔎

Goldman Sachs, one of the most influential and prestigious investment banks in the world, is in talks to be an authorised participant for the bitcoin ETFs that BlackRock and Grayscale want to introduce in the U.S., according to a CoinDesk report. An authorised participant is a financial institution that creates and redeems ETF shares to ensure the products trade in lockstep with their underlying assets.

If true, this would mean that Goldman Sachs is joining other finance giants in that role, such as JPMorgan Chase, Jane Street and Cantor Fitzgerald. It would also signal that the bank is bullish on the prospects of bitcoin ETFs in the U.S., despite the regulatory hurdles and uncertainties that have prevented them from launching so far.

Bitcoin ETFs are seen as a game-changer for the crypto industry, as they would provide a more accessible and regulated way of investing in bitcoin for institutional and retail investors. They would also boost the liquidity and legitimacy of the crypto market, and potentially drive the price of bitcoin higher.

4. Binance Places ‘Monitoring Tag’ On 10 Cryptoassets, Including Monero And Zcash ❗️

Binance, the world’s largest and most popular crypto exchange, has announced that it will be placing “monitoring tags” on a number of coins and tokens, namely ANT, FIRO, KP3R, MDX, MOB, REEF, VAI, XMR, ZEC and ZEN. These are assets that exhibit notably higher volatility and risks compared to other listed tokens, and are closely monitored by the exchange, with regular reviews conducted.

Binance stated that tokens with the monitoring tag are at risk of being delisted from the platform, as they may no longer be meeting the exchange’s listing criteria. The criteria include factors such as project quality, team activity, network stability, market demand, compliance and innovation.

Among the 10 assets, two are privacy coins, namely Monero (XMR) and Zcash (ZEC). These are coins that offer enhanced anonymity and encryption features, making them harder to trace and regulate. Privacy coins have been facing increasing scrutiny and pressure from regulators and exchanges, as they are often associated with illicit activities and money laundering.

Binance’s move could have a negative impact on the prices and adoption of these assets, as Binance is a major source of liquidity and exposure for them. However, it could also create opportunities for other exchanges and platforms that support these assets, and for users who value privacy and decentralization.