PayPal allocates 67% financial liabilities to crypto, Fed Governor issues crypto-asset warning, and more
PayPal Holds 67% of Financial Liabilities in Cryptocurrencies including Bitcoin
PayPal, the global payment giant, has invested a considerable portion of its financial liabilities in cryptocurrencies like Bitcoin, as revealed in its recent annual report filed with the Securities and Exchange Commission (SEC) on February 10, 2023. The report states that PayPal held a total of $604 million in various cryptocurrencies including Bitcoin, Ether, Litecoin, and Bitcoin Cash. “Bitcoin has the largest share in PayPal’s crypto assets, accounting for $291 million, while $250 million is held in ETH. The remaining $63 million includes Litecoin and Bitcoin Cash combined,” according to the report. The amount of PayPal’s crypto holdings account for 67% of the company’s total financial liabilities, which were recorded at $902 million as of December 31, 2023. On the other hand, PayPal’s total financial assets stood at more than $25 billion. More here.
Pantera Capital CEO and Osprey Funds Chief See Bright Future for Cryptocurrencies
Pantera Capital CEO Dan Morehead and Osprey Funds Greg King have both expressed optimism about the future of cryptocurrencies in the wake of the recent bear market. Morehead believes that blockchain assets have reached their lows and are now entering the next bull market cycle, regardless of what happens in the interest-rate-sensitive asset classes. He notes that this would be the seventh bull cycle, after six bear cycles. Similarly, Greg King of Osprey Funds shared his sentiment on Bloomberg TV, saying that each down cycle is slightly less than the previous one and that prices wouldn’t necessarily rise in a straight line. Details here.
South Korea Imposes Sanctions on North Korean Crypto Threats
The South Korean government has issued sanctions against four North Korean individuals and seven institutions, accusing them of financing “nuclear and missile development” through illegal cyber activities, including cryptocurrency theft. “This marks the first time that the South Korean government has imposed independent sanctions against North Korea in the cyber sector,” stated a notice from the Ministry of Foreign Affairs. “Our aim is to raise awareness about the potential risks of virtual asset trading with North Korea, by including the virtual asset wallet addresses as identification information for these sanctions targets.” North Korea has seen a surge in cryptocurrency theft, with a pair of North Korean hacker groups being implicated in the theft of $100 million in cryptocurrency from Horizon Bridge, according to the U.S. Federal Bureau of Investigation. More here .
Bitzlato Co-Founder Cleared of Criminal Charges After Moscow Detention
Anton Shkurenko, the co-founder of the now-defunct Russian cryptocurrency exchange Bitzlato, has spoken out against money laundering allegations made by U.S. and E.U. authorities. Despite being briefly detained by police in Moscow for an ID check, Shkurenko denies any active criminal cases against him in Russia. He claims that Bitzlato did everything in its power to prevent criminal activity on the platform and is not ashamed of its work. Bitzlato was shut down in January as a result of a cross-jurisdictional investigation by U.S. and European agencies, which found connections between the exchange and the darknet marketplace Hydra. Shkurenko, who was one of the key holders of Bitzlato’s crypto wallets, said he handed control over to other team members. The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) formally labeled Bitzlato a “primary money-laundering concern. Full report here.
Federal Reserve Governor Issues Warning on Crypto-Asset Losses: Taxpayers Not Liable for Socialization
Federal Reserve Governor Christopher Waller on Friday warned taxpayers in the United States to not expect any sympathy from the government should the prices of cryptocurrencies they invest in, crash. The governor also emphasized the need for banks to be fully aware of the customers’ business models, risk management systems, and corporate governance structures in order to avoid any potential losses in the event of a crypto meltdown. “If people want to hold such an asset, then go for it. I wouldn’t do it, but I don’t collect baseball cards, either. However, if you buy crypto-assets and the price goes to zero at some point, please don’t be surprised and don’t expect taxpayers to socialize your losses,” he said at the Global Interdependence Center event in California. More here.
If needed,” Coinbase CEO is prepared to go to court over the US stance on staking
Joey Krug, the co-Chief Investment Officer of Pantera Capital, has stepped down from his position at the venture capital and investment firm. According to a letter sent out to partners, Joey joined Pantera Capital in 2017 and managed the firm’s early-stage token fund, which suffered significant losses in the past year. In light of this development, the responsibilities previously held by Krug will be taken over by a newly formed executive management committee. In the letter, Pantera’s founder and CEO, Dan Morehead, expressed regret at Krug’s departure, but emphasized that the transition would be smooth. “While Joey is a friend and we are naturally sad to see him go, we expect the transition to be seamless,” Morehead stated. More here.
Banco do Brasil Enables Tax Payments with Cryptocurrency through Partnership with Bitfy
Banco do Brasil, which is the oldest bank in South America, has taken a significant step toward digital currency adoption. The bank has announced that its clients can now pay taxes in cryptocurrency, thanks to a partnership with Bitfy, a startup that was funded by the bank’s VC arm. The collaboration between Banco do Brasil and Bitfy means that clients will be able to use the Bitfy app to convert cryptocurrency in their accounts to the local currency instantly. This conversion will enable them to pay their taxes, settling their tax bills without any inconvenience. This new payment system offers a convenient way to make tax payments for clients who own digital assets. Read More
Cryptocurrencies Bitcoin and Ether Flat After SEC Crackdown on Kraken, Altcoins Continue to Fall
Bitcoin and Ether remain stagnant after experiencing a decline in the past week, following the SEC’s crackdown on Kraken. Bitcoin’s value decreased by 7.6% while Ether plummeted by 9%. Despite a quiet weekend, Bitcoin’s current value remains at $21,630 and Ether at $1,514, as recorded by TradingView. Altcoins such as XRP, Cardano, and Solana also experienced drops ranging from 8% to 17.5%, while Dogecoin and Shiba Inu fell by 16.3% and 15.7%, respectively. The week’s biggest winner was The Graph’s GRT token, which surged by 50%, followed by SingularityNET’s 26% growth.
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