| G20 leaders will discuss advancing the regulatory roadmap for cryptocurrencies; JPMorgan plans to launch payment, settlement deposit tokens (September 11th)
Headline
G20 Leaders to Discuss Advancing FSB's Proposed Cryptocurrency Regulatory Roadmap in October
G20 member leaders on Saturday expressed agreement with the Financial Stability Board (FSB) and the International Monetary Fund's (IMF) proposed recommendations on the regulation and supervision of cryptocurrency activities and markets, as well as global stablecoin regulation and oversight.
The G20 will continue to closely monitor the risks associated with the rapid development of the cryptocurrency ecosystem, and G20 finance ministers and central bank governors will discuss advancing the proposed roadmap by the FSB and IMF at their meeting in October 2023. The next G20 finance ministers and central bank governors meeting is scheduled to take place in Marrakech, Morocco.
The G20 Leaders' Summit declaration states, "We welcome the comprehensive document (including a roadmap) submitted by the IMF-FSB, which will support a coordinated and comprehensive policy and regulatory framework, taking into account the prevalent risks as well as risks specific to emerging market and developing economies (EMDE), and the FATF standards being implemented globally to address money laundering and terrorist financing risks."
The G20 leaders also recognize the work plans on cryptocurrencies by the FSB and standard-setting bodies (SSBs), as well as the report on key elements and risks of the crypto ecosystem by the Bank for International Settlements (BIS).
The G20 leaders also call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and the Common Reporting Standard (CRS) amendments.
Industry News
Sources revealed that JPMorgan is in the early stages of exploring blockchain-based digital deposit tokens to expedite cross-border payments and settlements. JPMorgan has developed most of the infrastructure for this project but still requires regulatory approval from US authorities to create a digital deposit token.
Once approved, JPMorgan Chase can introduce this product to corporate clients within a year. It is said that the digital token payment and settlement system can accelerate transaction speed while reducing costs. The deposit token is a digital version of customer deposits and can be used to transfer funds to users of another bank or settle tokenized securities.
Coinbase CEO Brian Armstrong revealed the company's next steps in an interview with Yahoo Finance, including the team's research on "flatcoin" (a better form of currency created through cryptocurrencies, resistant to censorship and tracks consumer prices to maintain or approximate purchasing power). Armstrong mentioned that although Coinbase has not entered this field yet, they are very interested in it.
Furthermore, Armstrong stated that there are several ways to bring more clarity to the crypto industry, such as through the courts, Congress, and the CFTC. He also hinted that there may be a new SEC chairman in 2024. Armstrong believes that it would be beneficial for the crypto industry if Gary Gensler no longer serves as SEC chairman.
Armstrong also pointed out that cryptocurrencies may be a "hot topic" in the 2024 U.S. presidential election, and Coinbase hopes to donate to presidential candidates supporting cryptocurrencies.
For months, Digital Currency Group Inc. (DCG) and its CEO Barry Silbert have been facing fraud allegations from Cameron Winklevoss, co-founder of the cryptocurrency exchange Gemini Trust Co. Despite denying these accusations, federal officials are conducting an in-depth investigation into the internal financial transactions of DCG and its subsidiary Genesis Global Capital.
U.S. Majority Whip Tom Emmer, who previously expressed concerns about the SEC's cryptocurrency regulations, introduced a significant amendment on September 8th.
In his statement, Emmer criticized SEC Chairman Gary Gensler for overstepping his authority and causing negative impacts on the American people. He urged Congress to use existing methods and appropriate procedures to prevent Gary Gensler and the SEC from misusing taxpayer funds.
Specifically, Emmer intends to introduce a funding amendment that would restrict the use of funds by the SEC in cryptocurrency enforcement actions until comprehensive rules and regulations are established.
Security Notice
CZ: iOS users are advised to update to version 16.6.1 to avoid financial losses
CZ stated on the X platform that the recent iOS/iPadOS 16.6.1 update from Apple includes a security patch to fix an iMessage vulnerability. This vulnerability allows remote code execution without any action required by the victim.
CZ mentioned that the vulnerability has been exploited by the hacker organization Pegasus and advised users to update their systems immediately to protect themselves from attacks.
According to official notifications, PEPE announced that its old Telegram account has been hacked and is no longer under official control. The "lordkeklol" X account has also been compromised and used for scams. This account is not associated with PEPE or its team members.
PEPE calls on community users to report the fake PEPE group and have it removed, and create a new group with appropriate security measures.
In the coming weeks, all official information from PEPE will be posted through this X account.
Blockchain detective Cobie and other KOLs on the X platform have posted to remind that the X account of Ethereum co-founder Vitalik Buterin is suspected to have been hacked and phishing links related to ConsenSys' Proto Danksharding commemorative NFT are being posted for free claiming (which is actually a phishing link).
ZachXBT said that the hacker has already stolen $691,000. Upon investigation, tweets containing the phishing links have been deleted.
According to SlowMist Security Team's on-chain intelligence, when the LDO token contract processes a transfer operation, if the transfer amount exceeds the actual balance of the user, the operation does not trigger a transaction rollback. Instead, it directly returns a "false" as the processing result. This processing method is different from many common ERC-20 token contracts.
Due to this feature, there is a potential risk of "false deposits". Malicious actors may attempt to exploit this feature for fraud.
Project News
Coinbase announces "Recent Priority Markets" plan, including EU, UK, and Singapore
In a blog post on September 6, Coinbase's Vice President of International Business, Nana Murugesan, and Vice President of International Policy, Tom Duff Gordon, listed the European Union, United Kingdom, Canada, Brazil, Singapore, and Australia as Coinbase's "near-term priority markets."
The two stated that these countries are "developing clear rules," and Coinbase will focus on "obtaining licenses, registering, establishing, and strengthening operations" in these countries. The article points out that while cryptocurrency regulations are progressing worldwide, the United States has chosen enforcement regulation, which may limit its influence in the cryptocurrency field. Therefore, Coinbase will focus on expanding operations in countries that have clearly formulated cryptocurrency rules.
Coinbase's new priority market plan is part of its second phase expansion plan, "Go Broad, Go Deep," which includes partnering with global and local banks and payment providers to expand its fiat currency channels while ensuring compliance with its governance system.
MakerDAO Increases $50 Million RWA Assets Again through BlockTower Andromeda
Makerburn data shows that MakerDAO once again increases $50 million in RWA assets through BlockTower Andromeda, mainly invested in short-term US government bonds. The annualized interest rate of these assets is 4.5%.
Simon Morris, Consensys Strategic Executive, stated at Korea Blockchain Week (KBW 2023) that the decentralized version of Infura will be launched by the end of this year, and major Web2 cloud providers may become part of the network.
Simon Morris stated that the ultimate goal is to build an architecture similar to TCP/IP that is not subject to regulation. (Cointelegraph)
USDC circulation decreased by $200 million in the past week
According to official data, as of September 7th, Circle issued a total of $900 million USDC in the past 7 days and redeemed $1.1 billion USDC, resulting in a decrease in circulation of $200 million.
The total circulation of USDC is $25.9 billion, with reserves of $26 billion, including $1.7 billion in cash and $24.3 billion held by the Circle Reserve Fund.
Linea CEO: Ethereum EIP-4844 expected to reduce Rollup costs by over 90%
Nicolas Liochon, the head of zkEVM Linea at ConsenSys, stated during an interview at the Korean Blockchain Week that proto-danksharding (also known as Ethereum Improvement Proposal EIP-4844) has the potential to reduce Rollup costs by over 90%.
It is reported that the Ethereum Foundation has not yet announced the specific release date of proto-danksharding and is still conducting related development and testing work.
NFT
Huang Licheng announces the sale of Noun 69
Huang Licheng announced the sale of Noun 69 on the X platform and asked the community whether it should be sold at the "community culture price" of 69 ETH.
Investors holding 25% of Nouns NFT have begun a "rage quit", and the Web3 community NounsDAO will conduct a financial split within a week.
According to the newly issued "rage quit" rules of the community, if investors holding 20% of Nouns NFT request a "fork", they can separate from the main body and take away their corresponding share of 30,620 ETH (worth about $50 million). As of the time of writing, a total of 214 Nouns NFT have joined the fork, and the fork treasury holds a share of 7,598 ETH (about $12.4 million).
