BitDigest - Tuesday June 8, 2021
Crypto prices sell off falling <10% overnight
The US has seized the majority of the bitcoin from hackers in the Colonial Pipeline cyberattack
US plans to work with G7 on crypto solution regarding ransomware attacks
Crypto Fear & Greed Index
The Fear & Greed Index for bitcoin and other large cryptocurrencies has dropped to monthly lows at a level last seen at the end of May as crypto prices continue to show resistance and investors ask where the next buyer will come from.
The Headlines
DoJ Seizes Bitcoin from Colonial Pipeline Hack
The Department of Justice announced it has seized 63.7 bitcoin (85%) of the funds paid to hackers during the recent Colonial Pipeline cyberattacks.
🅱️There is no question that the government was able to track the flow of the ransomware payments, but what is surprising is that the report claims the FBI “has the private key or the rough equivalent of a password needed to access assets accessible from the specific Bitcoin address.” Understanding how the government obtained the private key is the question many of us are trying to comprehend today.
US Looking to G7 for Crypto Action Plan
National Security Advisor Jake Sullivan said the US views “ransomware is a national security priority” and is looking for the G7 to initiate an action plan covering “how to deal with the cryptocurrency challenge, which is — lies at the core of how this — these ransom transactions are played out.”
BIS to Hold Hearings Regarding Banks Exposure to Digital Assets
The Bank of International Settlements announced the Basel Committee on Banking Supervision plans to hold a public consultation period following discussions on “market developments related to cryptoassets and the next steps in developing its prudential treatment for banks’ cryptoasset exposures” which found “continued growth and innovation in cryptoassets and related services, coupled with the heightened interest of some banks, could increase global financial stability concerns and risks to the banking system in the absence of a specified prudential treatment.
MIIT Proposes Blockchain Development Plan
China’s Ministry of Industry and Information Technology (MIIT) has presented a new proposal to foster blockchain development in the country by accelerating “blockchain technology applications industrial development.”
Hong Kong to Start Second Test with Digital Yuan
The Hong Kong Monetary Authority is planning to begin its second-stage of trials to test China’s digital yuan by allowing local residents to top up an e-CNY digital wallet using Hong Kong’s domestic faster payment system, which Hong Kong people currently use to make domestic payments via mobile phones.
Paraguay Expected to Make Crypto-Supporting Announcement
Paraguay congressman Carlitos Rejala included #BTC and #paypal in a tweet that his country plans to initiate a new project this week that will ‘innovate Paraguay in front of the world’ leading many to assume the South American nation intends to make a crypto-supporting announcement.
Denmark Plans to Update Tax Code for Crypto
Denmark’s Tax Minister Morten Bodskov reported that two-thirsts of domestic crypto transactions have not been taxed properly and has committed to “ensure that [his country’s] rules are up-to-date and limit errors and fraud.”
Sichuan Tells Miners to End Operations by September
China’s southwestern-landlocked Sichuan province – the second largest area for crypto mining in the country – has taken a softer response to the recent crypto crackdown from Beijing telling miners that have until September to cease operations.
The World Economic Forum has released a decentralized finance (DeFi) toolkit for regulators providing “a solid foundation for understanding the major factors that should drive policy-making decisions.”
MSTR to Raise $400 Million for Bitcoin
Microstrategy (NASDAQ: MSTR) announced a new private offering of $400 million in senior secured notes to allow the enterprsie analytics company to acquire additional bitcoin.
Thoughts on the Ecosystem
Trump Sees Bitcoin as Competition to Dollar
Former President Donald Trump says bitcoin “seems like a scam” and he does not “like it because it is another currency competing against the dollar” which he wants to be the “currency of the world.”
El Salvador's Bitcoin Promise Could Hinder IMF Discussions
In response to reports that El Salvador is planning to adopt bitcoin as legal tender, several analysts are warning that this decision could negatively impact ongoing negotiations with the International Monetary Fund for a $1 billion assistance program.
Daily Cartoon
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BitDigest is a weekday news update on digital currencies and blockchain technology for friends and partners of Parsons & Whittemore, a single family office based in Rye Brook, New York. Receipt of BitDigest is by approval of the Author. The commentary, analysis, opinions and recommendations in this newsletter represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in this newsletter is obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. Neither the Author nor any of the Author's affiliates make any guarantee or other promise as to any results that may be obtained from reading this newsletter. While past performance may be analyzed in this newsletter, past performance should not be considered indicative of future performance. No reader should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. The Author is not making a solicitation or offer to buy or sell any securities of any kind.