Month: January 2023

• Coinbase is closing down most of its operations in Japan after announcing a round of job cuts globally.
• The crypto exchange teamed up with Mitsubishi UFJ Financial Group Inc. to launch a crypto exchange in Japan in 2021 and is finalizing its discussions with Japan’s top financial regulator, the Financial Services Agency (FSA).
• Coinbase has been cutting its workforce globally and CEO Brian Armstrong announced the company’s latest round of job cuts Tuesday, letting go of about 950 people.

Coinbase, a Nasdaq-listed cryptocurrency exchange, is closing down most of its operations in Japan after announcing another round of job cuts globally. CEO Brian Armstrong announced the company’s latest round of job cuts Tuesday, letting go of about 950 people. This move, he said, is necessary to weather the industry downturn.

Coinbase had teamed up with Mitsubishi UFJ Financial Group Inc. to launch a crypto exchange in Japan in 2021. However, Nana Murugesan, vice president for business development and international, revealed in an interview with Bloomberg Wednesday that the company has decided to wind down the majority of its operations in Japan, leading to eliminating most of the roles in their Japan entity. Murugesan noted that a small number of employees in Japan will remain to ensure the safety and security of customer assets.

Coinbase has been cutting its workforce globally in order to ensure the company stays “healthy during this economic downturn”. This includes a decision to reduce the size of its team by about 18%, or about 1,200 employees, back in June 2020.

Despite the job cuts, Coinbase CEO Brian Armstrong remains optimistic about the future of the company and the industry. He said, “Despite everything we’ve been through as a company and an industry, I’m still optimistic about our future and the future of crypto.” He also noted that the company is finalizing its discussions with Japan’s top financial regulator, the Financial Services Agency (FSA).

The winding down of Coinbase operations in Japan marks an important transition for the company, as well as the industry. It remains to be seen if the company will be able to weather the current economic downturn and emerge stronger in the long run.

• Kazakhstan has begun to impose higher electricity fees on cryptocurrency miners since the beginning of 2023.
• The fee is calculated according to a progressive scale and can reach up to 25 Kazakhstani tenge (over $0.05) per kilowatt-hour (kWh).
• The influx of crypto miners has been blamed for the country’s growing electricity consumption.

Kazakhstan has recently announced that cryptocurrency miners operating in the country will be paying higher electricity fees starting from the beginning of 2023. This decision was taken with a bill amending the country’s Tax Code, which was signed into law in July 2022. The new fees for power consumption are calculated according to a progressive scale, and are based on the average price of electricity consumed by a miner during a given tax period. The minimum rate of 1 Kazakhstani tenge (over $0.002) per kilowatt-hour (kWh) can go up to 25 tenge (over $0.05).

The introduction of these new fees comes as a result of the influx of mining companies in Kazakhstan after China’s crackdown on crypto mining in 2021. These mining companies were attracted by the country’s low, subsidized electricity rates. However, the heavy power consumption of these companies has been blamed for the growing electricity consumption in the country.

In order to incentivize the use of renewable energy sources, the government has decided to offer the lowest rate of 1 tenge to crypto farms using renewable energy, not taking into account the cost of the electricity. For energy produced from other sources, the cheaper the power utilized, the heavier the tax burden.

The introduction of these new fees is meant to ensure that the cryptocurrency miners in Kazakhstan are not taking advantage of the country’s subsidized electricity rates. It is hoped that this decision will help to balance the energy consumption of the industry, and will ensure that the costs are equally shared between the government and the miners.

• BONK is a new meme coin token on the Solana network, with a circulating token supply of around 41.5 trillion and a market capitalization of around $63 million.
• BONK’s price surged to an all-time high of $0.00000487 per token on Jan. 5, 2023, before plummeting to a low of $63 million 24 hours later.
• 50% of BONK’s total supply was airdropped to the Solana community, with fractions of it distributed to NFT collectors, openbook traders, Solana artists and collectors, and Solana developers.

The cryptocurrency market has been abuzz in recent months with the launch of bonk inu (BONK). This new meme coin token has been launched on the Solana network, and boasts a circulating token supply of around 41.5 trillion and a market capitalization of around $63 million.

The BONK development team and its “one pager” explain that the project was created as an antidote to the toxicity of the “Alameda” tokenomics. With a “fair shot” for everyone, 50% of BONK’s total supply was airdropped to the Solana community, with fractions of it distributed to NFT collectors, openbook traders, Solana artists and collectors, and Solana developers.

The value of BONK started to rise on Dec. 29, 2022, when it was trading for $0.000000086142 per token. With an increase in demand, the price of BONK surged to an all-time high (ATH) at $0.00000487 per BONK on Jan. 5, 2023. This jump in price was short-lived, however, as 24 hours later BONK was down 67.9% since the token’s ATH, representing a market capitalization of $63 million.

The wild price fluctuations of BONK have raised eyebrows in the cryptocurrency community. Analysts have noted the high degree of concentration among BONK holders, with one address holding as much as 50% of the total supply. This suggests that BONK is still in its early stages and is not yet fully decentralized, meaning that it is vulnerable to manipulation.

Regardless of its current market state, BONK is still a relatively new project, and the future of the token remains uncertain. It will be interesting to see how the project fares in the coming months and years, and the extent to which it can become a viable alternative to other meme coins.

• Coinbase has agreed to a $100 million settlement with the New York Department of Financial Services for violating anti-money laundering regulations.
• The compliance investigation started in 2020 and Coinbase agreed to hire an independent examiner to make sure AML and know-your-customer (KYC) guidelines were followed.
• Coinbase is required to pay a $50 million fine and another $50 million will go towards applying necessary anti-money laundering background checks.

Coinbase, the crypto exchange and custodial firm, has agreed to a $100 million settlement with the New York Department of Financial Services (NYDFS) for failing to enact proper anti-money laundering (AML) controls in 2020 and 2021. According to a consent order signed by the NYDFS superintendent Adrienne Harris on Jan. 4, 2023, the exchange’s anti-money laundering controls were inadequate and compliance problems were detected.

The investigation into Coinbase began in 2020, when the company was found to be lacking sufficient personnel, resources, and tools needed to keep up with AML alerts. As a result, the backlog of unreviewed transaction monitoring alerts grew to more than 100,000, many of which were months old, and the backlog of customers requiring enhanced due diligence exceeded 14,000. In response, Coinbase agreed at the time to hire an independent examiner to make sure AML and know-your-customer (KYC) guidelines were followed. However, compliance problems persisted, leading the New York regulator to take action in 2021.

As a result of the settlement, Coinbase is required to pay a $50 million fine and another $50 million will go towards applying necessary anti-money laundering background checks. The New York regulator stated that “We have been very outspoken about illicit financing concerns in the crypto space and will continue to take decisive actions to make sure virtual asset businesses operate within the law.”

The settlement is an important step in ensuring that crypto exchanges comply with regulatory requirements. It is also a reminder that companies must take appropriate action to ensure compliance and prevent money laundering. This settlement reinforces the importance of AML compliance and should serve as a warning to other exchanges and custodial firms.

• Solana (SOL) surged to a high of $14.10 on Wednesday, marking its highest level since mid-December.
• Cardano (ADA) also rose to a one-week high of $0.2668, as market sentiment continues to remain bullish.
• The Relative Strength Index (RSI) for both tokens is currently at its strongest point since November 6.

Cryptocurrencies were on the move on Wednesday, with Solana (SOL) and Cardano (ADA) amongst the biggest movers. SOL/USD surged to a high of $14.10 earlier in the day, representing the token’s highest point since mid-December. Meanwhile, Cardano (ADA) raced to a one-week high of $0.2668 earlier in the session, hitting a long-term resistance level in the process.

The rally in both tokens has been driven by a shift in market sentiment, which has been bullish in recent days. This can be seen in the Relative Strength Index (RSI) for both tokens, which is currently at its strongest point since November 6. For Solana, this has seen the token move beyond a ceiling of 53.00 on the RSI, with bulls now attempting to break out of a resistance level at $14.50.

In the case of Cardano, the RSI has pushed to a resistance of 47.00, resulting in earlier gains easing. This is further evidenced by the moving average of 10 days (red), and its 25-day (blue) counterpart, which have both neared in proximity.

Overall, the latest moves in both tokens have been driven by bullish sentiment in the broader cryptocurrency market. While it remains to be seen whether the gains can be sustained in the coming days, it is clear that both Solana and Cardano are benefiting from the current market environment.