Crypto News Roundup: August 9, 2023 📢

Welcome to the Crypto News Roundup, where I bring you the latest and most important developments in the world of cryptocurrencies and blockchain technology. Today, I have some exciting news for Cardano, Binance, USDC, and more. Let’s dive in!

Cardano-Based MuesliSwap to Refund ‘High Slippage’ Losses for Users 💸

MuesliSwap, a decentralized exchange (DEX) built on the Cardano blockchain, has announced that it will refund users who suffered losses due to high slippage on its platform. Slippage is the difference between the expected price of a trade and the actual price executed. MuesliSwap uses an order book model, which means that users can set their own slippage tolerance and see the available liquidity for each trade. However, some users were unaware of this feature and ended up paying more than they expected.

The MuesliSwap team apologized for the confusion and stated that they will reimburse users who experienced slippage higher than 1% over the past year. The refund process will take up to four weeks and will be done automatically by analyzing the users’ on-chain trading history. Users do not need to take any action or submit any claims to receive their refunds.

MuesliSwap is one of the first DEXs to launch on Cardano, a smart contract platform that aims to offer scalability, security, and sustainability. Cardano is currently in the final phase of its roadmap, called Goguen, which will enable full-fledged smart contracts and decentralized applications on the network. MuesliSwap hopes to attract more users and liquidity as Cardano grows and matures.

Banks Face Stepped-Up Scrutiny from Fed Over Crypto Activities 🔎

The Federal Reserve, the central bank of the United States, has announced a new program that will enhance its supervision of banks that engage with cryptocurrencies and blockchain technology. The program, called the Novel Activities Supervision Program (NASP), will provide guidance and oversight for banks that offer crypto-related services such as custody, lending, trading, issuance, or distribution.

The Fed stated that the NASP will help ensure that banks comply with existing laws and regulations, as well as identify and mitigate any potential risks associated with novel activities. The program will also facilitate coordination and communication among different regulators and stakeholders in the crypto space.

The NASP does not change any rules or requirements for crypto banking, but rather clarifies how the Fed intends to monitor and supervise them. The Fed acknowledged that crypto activities can offer benefits such as innovation, efficiency, and inclusion, but also pose challenges such as volatility, cyberattacks, money laundering, and consumer protection.

The Fed’s announcement comes amid growing interest and adoption of cryptocurrencies by both individuals and institutions. Several major banks in the US have already launched or announced plans to launch crypto services for their clients, such as JPMorgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, and Wells Fargo.

Binance Secures Crypto Exchange License in El Salvador

Binance, the world’s largest crypto exchange by trading volume, has obtained two licenses from the authorities in El Salvador to operate a crypto exchange platform in the country. El Salvador made history in June when it became the first country to adopt Bitcoin as legal tender alongside the US dollar.

Binance received the Bitcoin Services Provider License (BSP) from the Central Bank of El Salvador and the Digital Assets Services Provider License (DASP) from the Salvadoran National Commission of Digital Assets (NCDA). The licenses will allow Binance to offer a range of crypto services in El Salvador, such as custodial services, crypto payments processing, digital wallets, and trading of various cryptocurrencies including stablecoins.

Binance is the first crypto exchange approved by the NCDA to operate an exchange within El Salvador. The NCDA is a newly established regulatory body that oversees the implementation of the Bitcoin Law and other crypto-related matters in the country. The NCDA stated that it aims to promote innovation and inclusion while ensuring security and transparency in the crypto sector.

Binance CEO Changpeng Zhao expressed his gratitude and excitement for obtaining the licenses and said that Binance is committed to supporting El Salvador’s vision of becoming a global leader in crypto adoption. He also said that Binance will work closely with local partners and regulators to provide safe and convenient access to crypto for Salvadorans.

USDC Issuer Circle Launches MPC Wallet Beta for Ethereum, Polygon, Avalanche 🚀

Circle Internet Financial, the issuer of USDC stablecoin, has launched a beta version of a new wallet service that uses multiparty computation (MPC) technology. MPC is a cryptographic technique that allows multiple parties to jointly compute a function without revealing their inputs or outputs to each other. This enables secure and efficient sharing of data and computation among different entities.

Circle’s MPC wallet service is designed for developers and merchants who want to integrate USDC and other cryptocurrencies into their applications. The service allows users to create and manage programmable wallets that can send, receive, and store various types of digital assets, including USDC, NFTs, and tokens. The service also offers features such as transaction signing, account recovery, fraud prevention, and compliance.

The MPC wallet service is initially available on three blockchain networks: Ethereum, Polygon, and Avalanche. Circle plans to add support for more networks in the future. Circle co-founder and CEO Jeremy Allaire said that the service is part of Circle’s strategy to advance the utility and adoption of digital assets and blockchain-based payments. He also said that the service will ease the common pain points for developers and enable them to build more innovative and inclusive applications.

DOJ Will Still Argue Campaign Finance Charges Against Sam Bankman-Fried ⚖️

Sam Bankman-Fried, the founder and CEO of FTX, a leading crypto exchange and derivatives platform, is facing a legal battle with the U.S. Justice Department (DOJ) over allegations of fraud, money laundering, and campaign finance violations. The DOJ claims that Bankman-Fried conducted an illegal scheme to manipulate the price of Bitcoin futures contracts on BitMEX, another crypto exchange, in 2018 and 2019. The DOJ also accuses Bankman-Fried of laundering the proceeds of his fraud through offshore entities and making straw donations to various political candidates and committees in the U.S.

Bankman-Fried has pleaded not guilty to all charges and has denied any wrongdoing. He has argued that his trading activities were legitimate and that he did not intend to influence any elections with his donations. He has also challenged the jurisdiction and authority of the DOJ to prosecute him, as he is a citizen of Hong Kong and his businesses are registered in other countries.

However, the DOJ has recently announced that it plans to file a superseding indictment next week that will bring seven charges against Bankman-Fried, including a campaign finance charge that was previously dropped due to treaty obligations. The DOJ stated that the campaign finance charge is part of the original wire fraud charge and that the evidence of Bankman-Fried’s political donations is admissible at trial as direct proof of his fraud and money laundering schemes.

The superseding indictment is expected to be filed on August 16, 2023, and the trial is scheduled to begin on September 13, 2023. If convicted, Bankman-Fried could face up to 20 years in prison and millions of dollars in fines. He could also face civil lawsuits from BitMEX, the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC), which have also filed charges against him for violating various regulations.

Bankman-Fried is one of the most influential and wealthy figures in the crypto industry, with an estimated net worth of over $16 billion. He is also known for his philanthropic efforts, having donated over $30 million to various causes such as COVID-19 relief, animal welfare, and effective altruism. He has received support and praise from many prominent crypto personalities, such as Vitalik Buterin, Brian Armstrong, and Michael Saylor.

The outcome of this case could have significant implications for the crypto industry, as it could set a precedent for how the U.S. government regulates and prosecutes crypto-related activities. It could also affect the reputation and operations of FTX, which is one of the largest and fastest-growing crypto exchanges in the world.

FTX has recently made headlines for securing several high-profile partnerships and sponsorships, such as with Major League Baseball (MLB), Tom Brady, Steph Curry, and Coinbase.
We will keep you updated on this developing story as more details emerge. Stay tuned for more crypto news and insights from us.

Conclusion 🎉

That’s all for today’s Crypto News Roundup. I hope you enjoyed reading and learned something new. Stay tuned for more updates and insights from the crypto world. Until next time, happy trading! 😊

Sources 🔗

1. Cardano-Based MuesliSwap to Refund ‘High Slippage’ Losses for Users | Source: CoinDesk
2. Banks Face Stepped-Up Scrutiny from Fed Over Crypto Activities | Source: Bloomberg
3. Binance Secures Crypto Exchange License in El Salvador | Source: Decrypt
4. USDC Issuer Circle Launches MPC Wallet Beta for Ethereum, Polygon, Avalanche | Source: CoinTelegraph
5. DOJ Will Still Argue Campaign Finance Charges Against Sam Bankman-Fried | Source: The Block

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