In the wake of the fall of FTX, the government of the UK has planned major reforms in cryptocurrency regulation.

It plans to bring digital assets under mainstream financial laws. However, it has backtracked from the resolve of treating cryptocurrencies as stocks, insurance products, and shares.

On 31 January, the Treasury announced that it would publish several proposals to align traditional finance regulations with the crypto industry.

## Key changes in cryptocurrency regulation UK

The Treasury anticipates the security of the funds of crypto users. The regulatory proposals will likely assure customers of financial security even if the crypto firm experiences insolvency. 

Moreover, it would establish robust rules for token promotion to eliminate misleading information. 

On the other hand, the Treasury will ensure that the crypto firms strictly follow the new regulations. It will help remove bad actors from the industry from running scams like [pump and dump schemes](/news/article/how-to-spot-a-pump-and-dump). Regulators will also focus on data reporting to bring more clarity and better regularisation. 

The ministry believes that these changes will likely protect investors' rights. These reforms may also minimise the risk of potential scams.

## The need for regulations after the FTX fall

2022 was a testing year for cryptocurrency investors. The year's highlights were the [Terra-Luna debacle](/news/article/terra-luna-collapse) and the [bankruptcy of Celsius](/news/article/celsius-bankruptcy-judge-order) and other lenders. However, one event which really rattled the market was the collapse of Sam Bankman-Fried’s exchange, and many began to question, “[Is crypto dead after the FTX collapse?](/news/article/is-crypto-dead)". This crash restricted many investors from accessing their funds. Now, cryptocurrency regulation has become inevitable. 

The UK will be one of the first countries to amend its digital asset laws. According to a [BBC report](https://www.bbc.com/news/technology-64468617), Harriet Baldwin MP says that the crypto market is a wild west.

However, the market also sees many technological innovations, which may help the country's economy. Therefore, the Treasury plans to reform cryptocurrency regulation UK laws to ensure security for investors.

yellow image of regulation files and bitcoins

Cryptocurrency Regulation UK: Big Reform Coming

According to an investor update seen by Moni Talks, [UK-based Monzo bank](https://monzo.com/) experienced a record 250% revenue in 2022 and is on track to attain annual profitability by the end of this calendar year.

![monzo.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/monzo_8465c9275b.png)
 
Source: [Monzo](https://monzo.com/)

The digital bank recorded an annualised revenue of £440m in 2022 (January to December) and expects to break even in 2023 - a feat not many European neobanks have achieved. According to the investor update, the neobank has been "cash flow positive", with ingoings outpacing outgoings.

## Monzo bank turns it around

In the digital bank's annual report for 2020-21, Monzo bank reported £114M in pre-tax annual loss - a similar loss rate to 2019-2020.

Monzo's accountants posed grave concern over the future of the neobank, stating that there was "significant doubt" regarding Monzo's ability to continue.

Fast forward to today, and Monzo has nearly doubled its customer base from 3.9M in February 2020 to 7M, generated record revenue in 2022, and may obtain profitability in 2023 - comeback kings indeed.

[Starling was the first European neobank](/news/article/starling-bank-bans-crypto) to attain annual profitability, in July 2022. Revolut CEO Nik Storonsky 'claims' that they have been profitable for two years, but Moni Talks cannot substantiate these claims. Revolut has missed the deadline to file accounts twice now.

If we compare Monzo to these industry stalwarts, Starling has 3.5M UK customers, while Revolut has 5.75M UK customers. The potential is clear to see.

The neobank claimed its personal account sign-ups averaged around 150k monthly in 2022. These numbers are likely to bode well for the company in the near future.

## What is Monzo?

Monzo is a [UK-based digital bank](/news/article/which-uk-banks-allow-cryptocurrency-purchases) enabling you to open a full UK bank account within 15 minutes from the comfort of your phone. You can earn up to 3.55% gross fixed/AER interest on your savings, set spending budgets, and obtain loans and overdrafts, amongst several other stellar features.

Its programs include Premium, Plus, Abroad, and Flex - take your pick.

At the time of writing, the company's revenues are heavily focused on its famous coral-pink cards.


Monzo Bank Achieves Twofold Revenue

A former Oxford University student has admitted crypto theft charges after stealing more than £2 million in cryptocurrency.

Wybo Wiersma, a 40-year-old computer genius who dropped out of a Ph.D. class at Oxford University, will serve [four and a half years in jail](https://serocu.police.uk/man-jailed-for-2m-cryptocurrency-theft/) after admitting he stole more than £2.1 million in cryptocurrency in a scam that affected over 100 people. The Dutchman created a bogus website – iotaseed.io – that would generate an 81-character 'seed' password for people interested in an online currency called Iota.

## Inserted a malicious code

A ‘seed’ refers to a private key consisting of 81 random characters that allow only the user to access their [crypto wallet](/news/article/best-crypto-wallet-uk-top-picks). However, Wiersma inserted a malicious code so that instead of random seeds, the system delivered predetermined ones that enabled him to access his victims' Iota crypto and unlawfully transfer them to his web of personal trading accounts. Wiersma programmed the site to appear on top of Google searches when victims searched for the phrase 'Iota seed generator'.

Prosecutor Julian Christopher KC revealed that the accused created the [scam](/news/article/crypto-scams-failing) iotaseed.io website between 2017 and 2018 and started transferring his victims’ cryptocurrency in early 2018. He would later set up four accounts with Bitfinex cryptocurrency exchange, where he would keep the stolen crypto funds. Bitfinex would become suspicious of the account’s activities and froze them, despite Wiersma working hard to convince them otherwise.

## Crypto theft due to greed and deception

Judge Michael Gledhill KC of Oxford Crown Court sent Wiersma to jail, noting that he abused his skills to steal, terming it dishonesty at the highest level and adding that he committed the offense of crypto theft due to greed and deception. The accused was due to stand trial in early March but pleaded guilty on the day the jury was supposed to be sworn in. Wiersma was first arrested in January 2019 but fled to his native Netherlands after being released on bail. He was extradited to England in April 2021 to face the law at Oxford Crown Court.

Noting that the investigation covering the crypto theft was complex as it involved more than 100 victims from different parts of the world, Detective Inspector Rob Bryant of the South East Regional Organized Crime Unit (SEROCU) stated that as Wiersma cools his heels in jail, SEROCU would try and ensure as much of the money they seized from his wallets is returned to the owners.


red image of Wybo Wiersma oxford student hacker

Oxford Ph.D. student jailed in £2M crypto theft scam

A disagreement has arisen between the Panama National Assembly and the government regarding a proposed crypto law.
In April, Panama legislators passed a legislative draft aimed at controlling cryptocurrencies, including [Bitcoin](/news/article/jim-cramer-says-ignore-bitcoin-hype), in the country. 

Nevertheless, President Cortizo warned a few weeks later that he would only sign it if it incorporated extra Anti-Money Laundering (AML) regulations.

On 26 January, Panamanian President Laurentino Cortizo referred the crypto law enacted last year to the Supreme Court for examination, asserting that the [crypto](/news/article/best-cryptos-to-buy-now) bill contradicts fundamental aspects of the constitution and cannot be implemented. 

## What is the controversy with the Panama crypto bill?

In September 2021, a Panama crypto bill was introduced to align the nation with the digital economy, blockchain technology, cryptocurrency, and the internet. According to the legislation, Panamanians are allowed to use [cryptocurrency](/news/article/cryptocurrency-books-guide), including but not limited to Bitcoin and Ethereum, as a substitute form of payment for any commercial or civil transaction. 

The government's innovation authority would also examine blockchain or distributed ledger technology for digitising identity.
The Financial Action Task Force, which aims to enhance financial transparency and prevent money laundering, proposed legislation permitting private and public usage of cryptocurrency assets.

The Panamanian National Assembly approved the bill on 28 April, 2022, with a vote of 38 in favour and none against. With this, Panama could soon become the third country in the world to treat cryptocurrencies on equal footing with fiat currency.

A definitive statement from the president's office stated that the provisions of articles 34 and 36 in the bill, which establish administrative structures within the government, infringe upon the state's separation of powers and therefore are invalid. After partially rejecting the legislation in June, President Cortizo also expressed that the approval process for the bill was inadequate.

At the time, the president [stated](https://www.presidencia.gob.pa/Noticias/Ejecutivo-remite-a-la-Corte-Suprema-proyecto-de-ley-que-regula-uso-de-criptomonedas) that further amendments were needed to the legislation to align it with the latest regulations. It is now up to the Supreme Court to determine whether to declare Bill No. 697 unenforceable or to give it the green light with modifications.


yellow image of panama with crypto bitcoins falling from sky

Panama crypto bill Awaits Supreme Court verdict


The UK financial regulatory body has received around 300 applications from cryptocurrency firms, but has [only approved 41 of them](https://cointelegraph.com/news/uk-s-fca-hints-at-why-its-given-only-15-of-crypto-firms-the-regulatory-nod). On 10 January, 2020, the Financial Conduct Authority (FCA) in the United Kingdom put new regulations targeting the cryptocurrency industry into effect.

These regulations are in place to oversee companies operating within this sector and to ensure that they comply with the same anti-money laundering and counter-terrorism financing regulations as traditional financial market companies.

The [UK's financial watchdog](/news/article/fca-crypto-regulation) has only approved 41 out of 300 crypto firm applications for regulatory approval despite plans to make the region a thriving crypto hub.

The UK FCA reported that of the 265 applications evaluated, only 15% were granted registration, 74% were withdrawn by the firms, and 11% were denied. Additionally, 35 applications are still pending review.

The authority did not specify the reasons for the rejection or withdrawal of these petitions. Still, it provided feedback on what is considered to be of "good and poor quality".

## Feedback from the UK's FCA regarding applications

The report stated that petitions deemed more complete included:

•	A comprehensive explanation of the company's business model.

•	The responsibilities of its partners and service providers.

•	The sources of liquidity.

•	Flow-of-funds diagrams.

•	A summary of the risk management policies and systems that have been implemented.


The report implies that some companies may have had applications denied if they could not demonstrate adequate [blockchain-compliance](/news/article/blockchain-use-cases) measures to monitor on-chain transactions.

The FCA also reinforced its stance against money laundering, requiring all companies to appoint a money laundering reporting officer who is actively involved in the application process.

The UK FCA has announced that it is working with other [regulatory agencies](/news/article/uk-crypto-exchange) globally, particularly with the US securities and commodities regulators, to enhance regulations where necessary. This is because many companies offer services on an international level. The FCA has also warned that failure to register before conducting business may lead to criminal charges.


yellow image of London with FCA logo overlayed

UK FCA Explains Low Crypto Firm Approval Rate

Ruja Ignatova, the infamous name placed on the FBI's Ten Most Wanted Fugitives List, has reappeared due to the listing of a luxury London penthouse flat bought by the crypto scammer, a [BBC](https://www.bbc.com/news/uk-england-london-64407723) report disclosed. 

Details of the £12.5 million listing were revealed as part of new transparency rules in the UK, which require owners of properties to be publicly displayed.

The "Crypto Queen" and her associates made off with around £3.2 billion (around $4 billion) from her [cryptocurrency](/news/article/what-is-future-of-cryptocurrency), OneCoin. The BBC estimates that investors from the UK alone lost more than £100 million.

UK authorities believe she is trying to facilitate the sale of her property from the shadows. The reappearance of the name Ruja Ignativa - who did so much harm to stakeholders in her fake cryptocurrency - has reignited hope that some lost funds could be recouped.

A former investor in OneCoin, Layla Begum, said her family lost more than £54,000 after she was persuaded by a friend to risk money on the emerging crypto project. She said that UK authorities could help British investors who lost money in OneCoin since the purchase of the London flat undoubtedly came from proceeds in the crypto scam.

## Reward for information on Ruja Ignatova

While UK prosecutors are trying to avoid proceeds of the sale going back to the coffers of the scammers, the FBI has placed an £80,600 ($100,000) bounty on the head of Ruja Ingatova. 

In 2019, a federal jury in New York found [Mark Scott](https://www.bbc.com/news/technology-50509299), a former lawyer with links to OneCoin, guilty of conspiracy to commit bank fraud and money laundering after helping route more than £300 million out of the US.

The brother of the Crypto Queen, Konstantin Ignatova, also pled guilty to the same charges.

The latest guilty plea came from [Sebastian Greenwood](/news/article/onecoin-scam-co-founder-admits-fraud), co-founder of the worthless cryptocurrency, in December when he admitted engaging in fraud and money laundering.


red image of ruja ignatova in front of onecoin logos

Has Ruja Ignatova, Crypto Queen, Reappeared? 

[Ramp Network](https://ramp.network/) is a fintech company that provides payment infrastructure to bridge the crypto-finance divide.

The company's goal is to create a meshed, easily accessible link between the open blockchain financial system and the old, closed banking system, removing the requirement for a trusted third party to act as a go-between.

It is a non-custodial, full-stack payment system that speeds up transaction implementation and fosters confidence among its partners with its superior technology. It is accessible in more than 160 countries, which has ensured that it has millions of customers and more than 400 registered partners.

Przemek Kowalczyk and Szymon Sypniewicz founded the network in Poland in 2018. Ramp Swaps is a crypto asset firm registered with the [UK Financial Conduct Authority](/news/article/ftx-uk-warning) for crypto activity. The network Link's open banking operation is regulated by the Polish Financial Supervision Authority.

The company has received [$133.9 million](https://www.crunchbase.com/organization/ramp-3b7b) in investment over four rounds. Their most recent funding came from a Series B round on 9 November, 2022. So far, 27 investors have contributed to the financing of the company. The most recent investors are Korelya Capital and Cogito Capital Partners.

## What are the benefits of Ramp Network?

It provides a simple way for users to buy and sell cryptocurrencies directly from Dapp. Ramp's partners could reach larger customers, receive payments, and provide regulated services to their end customers while remaining compliant.

Enterprises, [games](/news/article/best-farm-games-2022), NFT(non-fungible token) marketplaces, decentralized finance businesses, [wallets](/news/article/top-rated-bitcoin-wallets-uk), and any other company that wants to provide fiat-crypto flow to their users within their products can use the company's platform integration, allowing clients to quickly enter into contracts and lock a digital asset for their operations.

## Ramp Network is fully compliant

You can be confident that any transactions done with this tool are entirely secure and guaranteed due to official legislation, institutional control, and modern technology. 

As a regulated organization, it has ensured that KYC rules for [crypto](/news/article/are-crypto-gains-taxed-in-uk) purchases are followed. This implies that to transact via Ramp, you will need to work with this network to verify your identity. This company can verify your KYC identity using your bank account data and the open banking API. This procedure takes only a few seconds, and no physical documents are necessary.

Smart contracts protect Ethereum transactions made possible by the Instant bank transfer payment option. The network’s open source employs smart contracts, which makes them capable of being industry leaders in the coming years. In addition, their smart contracts are audited by Quantstamp, which again proves the quality.

## Bottom line

Ramp partners can reach new audiences, collect fees, and provide regulated services to their end customers while remaining compliant. It will be exciting to see how Ramp Network uses its technology, team, partners, and the trust of its customers to scale its platform to be a leader in the industry.


Green image of computer network with ramp logo

Ramp Network - Accelerating Crypto Adoption

The lawyers for the bankrupt crypto exchange FTX filed a creditor matrix in the [Bankruptcy Court](https://www.deb.uscourts.gov/) of the US in Delaware District on 25 January. It is a detailed document that reveals all FTX creditors, including giants like Netflix, Amazon, Apple, and Coinbase.

The court document suggests that the fall of the [FTX crypto exchange](https://ftx.com/) has affected firms from various domains. Besides crypto firms, the collapse has troubled several banks, hotels, airlines, media agencies, charity organisations, and others. In addition, a few government entities are among its creditors.

## Big names from the list of FTX creditors

The creditor matrix is a 115-page document that provides names and mailing addresses of creditors in alphabetical order.

It illustrates the extent of damage caused by the fall of FTX.

As per the document, the bankruptcy of crypto exchanges left a deep impact on the tech industry. The SBF firm is indebted to the tech giants like Apple, Amazon, Microsoft, Meta, Twitter, Google, Netflix, LinkedIn, and many others. 

In addition, media outlets, including big players like the New York Times, figure among its creditors.

In the Web3 sphere, the firm owes to companies like Coinbase, Yuga Labs, Galaxy Digital, Bittrex, Circle, Binance, and Chainalysis.

## FTX bankruptcy case

Not long ago, the FTX exchange was one of the largest in the industry. However, in November 2022, the firm experienced a liquidity crunch as its FTT token crashed.

This prompted the firm to file for insolvency, and its founder [SBF was arrested](/news/article/former-ftx-ceo-sbf-arrested) for financial laws violation. 

Earlier, the firm's lawyers mentioned that it owes money to more than a million creditors. The rough estimates suggest that the firm owes more than $100 million to each of its top ten creditors. However, the recent creditor matrix did not provide the estimated amounts of each creditor.


red image of blockchain with FTX, coinbase, apple and netflix logos shown

FTX Creditors Include Google, Apple, Netflix

A prolific hacker famously known as the 'Blockchain Bandit' is believed to be on the move again after hacked crypto was moved.

Blockchain Bandit first gained popularity in 2015-16 after using a technique called "Ethercombing" to steal more than £70m in crypto from thousands of holders.

Six years after the infamous incident, the hacker has awakened. The huge amount of crypto hacked back then was moved from the Bandit's wallet last week.

This crypto hacking scandal was considered a programmatic theft because of the sheer amount of money involved. The hacker stole 51,000 ETH and 470 BTC, valued at £73 million today. The hacker is suspected to be moving his funds due to the recent rise in crypto prices.

The Blockchain Bandit got their name after successfully stealing ETH from thousands of holders with weak private keys using Ethercombing. The hacker's attempt emptied more than 10,000 wallets from holders worldwide.

In 2019, the [Blockchain Bandit gained 45,000 ETH](https://cointelegraph.com/news/blockchain-bandit-has-stolen-45-000-eth-by-guessing-weak-private-keys-report-claims) by simply guessing the weak private keys. The now infamous thief heavily relied on the process of being able to guess an address's public key if you are aware of the private key. The hacker seems to have come up with an automated system that helped him scan and identify these weak keys. He exploited this to no extent and was able to steal millions in funds from thousands of crypto holders.

![hacked.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/hacked_008b7d1142.png)
 
Chainanalysis came up with a diagram to portray the shifting of funds. However, they did not mention any specific targets. Chainanalysis advises crypto holders to use well-known and reliable wallets to do transactions and use hardware wallets to move large amounts of funds to avoid getting their crypto hacked.

## Why is the hacker on the move?

After over half a decade of inactivity, the hacker's wallet was seen to be active as he was moving the crypto hacked previously. Crypto experts believe this sudden activity and the moving of funds is due to the recent hike in crypto prices.

The hacker is suspected of moving millions in stolen funds to a more secure location. There have been no updates since his last activity, but his moves are being heavily monitored.

The news comes only days after the [FTX reported more than £342m in stolen funds through hacking](/news/article/ftx-us-reports-415-million-hacked).


red image of hacker stealing crypto with bitcoins falling

Crypto Hacked: Blockchain Bandit Active Again

To assess the future of cryptocurrency, we need to start by looking back.

Bitcoin and Ethereum have dropped more than 50% since their all-time highs in late 2021. While there were some modest gains in late 2022, the cryptocurrency market remains relatively stagnant. Some analysts believe cryptocurrency values might fall considerably further before seeing a lasting rebound.

According to a senior market analyst at brokerage firm [OANDA](https://www.oanda.com/group/news-analysis/meet-analysts/edward-moya/), the crypto market might yet undergo one more significant sell-off before it begins to rebound, with [Bitcoin](https://time.com/nextadvisor/investing/cryptocurrency/bitcoin-price-predictions/) plummeting close to $10,000. According to crypto specialist Wendy O, Ethereum is at risk of falling as low as $750, a 50% drop from its current price.

"We're in a full-fledged bear market, not a bear cycle," says one analyst.

"Just because we're seeing some good pricing activity doesn't mean we're out of the woods," says another. "We're now trading around $1,500 for Ethereum, and to be very positive on Ethereum, it would need to see us break over $2,248. That is a 50% price increase."

Furthermore, crypto firms have laid off employees, halted withdrawals, and attempted to offset losses, increasing concerns about the industry's viability.

Terraform Labs went bankrupt in May, but the bear market has affected numerous companies since then. [Coinbase](https://blog.coinbase.com/a-message-from-coinbase-ceo-and-cofounder-brian-armstrong-578d76eedb12), the biggest cryptocurrency exchange in the United States, stated in June that it was laying off 18% of its workforce. This followed layoffs at other cryptocurrency firms, such as Gemini, BlockFi, and Crypto.com.

Due to "extreme market conditions", crypto bank Celsius unexpectedly ceased [withdrawals](https://blog.celsius.network/a-memo-to-the-celsius-community-59532a06ecc6) towards the end of 2022. The future of cryptocurrency hedge firm Three Arrows Capital was also thrown into doubt. When Bitcoin fell below $19,700, alarm bells rang. 

Crypto investors should invest between 2 and 5% of their net worth, according to Vrishin Subramaniam, founder and financial planner at [CapitalWe](https://www.capital-we.com/about).

"We often see 2 to 3% for most clientele who only watch crypto markets weekly", he added.

## Future of cryptocurrency regulation

Lawmakers in Washington DC and worldwide are debating how to create regulations and norms that would make cryptocurrencies safer for investors and less enticing to hackers.

Additional regulation may be the future of cryptocurrency. More regulation might lead to greater stability in the famously turbulent cryptocurrency sector. It could safeguard long-term investors, deter fraudulent conduct inside the crypto ecosystem, and give clear advice to allow enterprises to develop in the crypto economy, if there's a correct balance.

A recent Biden administration paper details potential laws that would increase regulation of the crypto sector. In recent months, US Fed Reserve Chairman Jerome Powell and [SEC](/news/article/sec-crypto-enforcement-warning) Chairman [Gary Gensler](/news/article/sec-crypto) have expressed concern about the absence of cryptocurrency regulation. 

Despite all the back-and-forth, a few critical themes on the issue of new US cryptocurrency legislation have emerged: preventing cryptocurrency crime and tax fraud, stablecoin regulation, and the possibility for investment vehicles such as crypto ETFs and other funds.

The decentralised nature of digital currencies, which, unlike traditional currencies, are not backed by any organisation or government authority, is a significant appeal for many crypto enthusiasts. However, regulatory guidelines can assist in protecting investors.

"As much as I admire the decentralisation and absence of government involvement, I am pleased they are paying attention since there are many scams with cryptocurrency", says Kiana Danial, author of Cryptocurrency Investing for Dummies.

One potential provision would broaden the definition of a brokerage firm to include entities that handle digital asset trading, such as cryptocurrency exchanges. This move would imply higher tax reporting duty to assist the IRS in tracking crypto tax evasion. 

Furthermore, [Gensler has stated](https://www.sec.gov/news/public-statement/gensler-aspen-security-forum-2021-08-03) that stronger legislation is needed to help avoid future ransomware attacks like the one that took down the [Colonial Pipeline](https://www.nytimes.com/2021/05/08/us/politics/cyberattack-colonial-pipeline.html) in May 2021. The pipeline assault was one of several high-profile examples of hackers demanding [Bitcoin ransoms](https://www.npr.org/2021/06/10/1004874311/how-bitcoin-has-fueled-ransomware-attacks).

While Gensler did not specify how the SEC planned to assist in prosecuting these offences, he did state that the agency will continue to use its full authority. The SEC will continue to push its authority as far as it can, Gensler said at the [Aspen Security Forum](https://www.aspensecurityforum.org/) in Colorado. According to a recent US Treasury assessment, cryptocurrency "poses a serious detection difficulty by promoting illicit conduct, including tax evasion".

## Future of cryptocurrency: Stablecoin regulations

The ease with which stablecoins may be exchanged, along with their stable value, has figures like Yellen and Gensler concerned that they pose threats to the financial system and economy. As a result, they must regulate.

Stablecoins, which act as a bridge between cryptos on various blockchains, might make it easier and cheaper to perform trades on an exchange without using fiat currency. Stablecoins are tied to other assets, often less volatile than cryptocurrencies, such as fiat currency or precious metals, and may price them similarly. 

Therefore, the coins are more "stable" than other cryptos, whose values fluctuate with the markets.

Assisting in reducing or eliminating potential transaction costs since certain exchanges prefer trading from stablecoins to other cryptos over trades from a dollar-based bank account. Many exchanges, like Coinbase, do not charge fees when converting US dollars for USD Coins, which are used to purchase other cryptocurrencies.

According to a [recent study](https://home.treasury.gov/news/press-releases/jy0454) from the Federal Deposit Insurance Corporation, the Working Group on Financial Markets, and the Office of the Comptroller of the Currency, some stablecoins' purpose is to circumvent money-laundering laws or even finance rogue states or terrorists. This has grown even more prominent in policymakers' minds in the aftermath of Russia's invasion of Ukraine, with the possibility that Russia may utilise cryptocurrency to avoid sanctions.

However, there are fears that stablecoins would weaken established US banking institutions, causing financial system difficulties. In other words, the more stablecoins used by investors, the more likely any problems with them would damage the economy. According to White, systemic risks frighten regulators the more, which is why stablecoins are at the tip of the regulatory spear. For example, if you purchased $1,000 worth of stablecoins to decrease or eliminate costs on your cryptocurrency trades, but the stablecoin collapsed before you could utilise it, you'd be down $1,000.


blue image of man trading on ipad in futuristic landscape

What is the future of cryptocurrency?

## HM Treasury seeks to hire new UK CBDC head 

The UK Treasury is seeking to fill the position of "head of a central bank digital currency" (CBDC) to spearhead the government's efforts to create a digital pound.

The United Kingdom has been mulling introducing the UK CBDC, and there are plans to launch a public consultation soon.

According to a [LinkedIn job posting](https://www.linkedin.com/company/hm-treasury/), the successful candidate will, in collaboration with the CBDC task force and the Bank of England, lead the exploration and development of the country’s central bank digital currency. The role of the UK CBDC chief, which is separate from the crypto-assets and digital currencies head, is in tandem with the existing Payments and Fintech Team.

## Ensure they get the UK CBDC design right

Reports indicate that from as early as 2020, the Bank of England was [already chasing the CBDC](/news/article/cbdc-uk) use-case dream in collaboration with other central banks worldwide. Britain's Financial Services Minister Andrew Griffith stated on January 10, 2023, that the country’s [immediate priority](https://www.reuters.com/world/uk/britain-push-ahead-with-readying-ground-digital-pound-2023-01-10/) was to ensure they get the UK CBDC design right. Saying the planned public consultation would be addressing the question of if and not when Griffith said he "would rather be right than be first".

A CBDC is a digital currency, but unlike cryptocurrencies, it’s issued by a central bank. There won’t be any physical money, such as coins or notes, produced, meaning the UK CDBC would only exist in electronic form. According to a report dubbed "[Future of Payments](https://www.omfif.org/about/)" by OMFIF (the Official Monetary and Financial Institutions Forum, an independent think tank focusing on public investment, economic policy, and central banking, at least 100 countries globally are at a particular stage of exploring or developing CBDCs.

## The clearest indicator

The report further stated that at least two-thirds of the central banks surveyed by OMFIF had plans to issue CBDCs within the next ten years. [Statistics in the public domain](https://www.atlanticcouncil.org/cbdctracker/) indicate that all of the G-7 economies and at least 18 others from the G-20 are [working on their CBDCs](/news/article/bank-of-spain-cbdc-project). China leads the larger economies as its digital Yuan is on a trial run. 

The UK's Financial Services Minister assured MPs late last year that there would be a lengthy consultation before the introduction of a CBDC.

The Bank of England maintains there [wasn’t a substantive decision yet](/news/article/cbdc-bank-of-england) on its introduction. However, Deputy Governor Jon Cunliffe suggested that the [FTX fiasco](/news/article/ftx-exchange-under-investigation) and its impact on the crypto sphere was the clearest indicator of the need for a digital pound.


yellow image of big ben and uk flag with digital pound in centre

UK CBDC Head Sought by HM Treasury

According to [Chainalysis research](https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-russia-ransomware-money-laundering/), Binance crypto exchange processed almost $346M in illicit Bitcoin (BTC) funds for seized cryptocurrency exchange Bitzlato.

Bitzlato's Russian co-founder Anatoly Legkodymov was arrested in Miami last week on charges of operating the platform as an unlicensed money exchange business and processing $700M in illegal funds.

Reportedly, Legkodymov admitted to catering to "known crooks" through the medium of the cryptocurrency exchange. On 18 January, 2023, he was charged by the US Justice Department for fueling a "high-tech axis of cryptocrime”.

## Binance's role in Bitzlato's money laundering spree

Between May 2018 and September 2022,[ it is reported ](https://www.fincen.gov/sites/default/files/shared/Order_Bitzlato_FINAL%20508.pdf)that Binance was among Bitzlato’s top three Bitcoin-receiving counterparties, the others being Hydra, a Russia-connected darknet market, and “TheFiniko”, the supposed Russia-based Ponzi scheme.

In the same period, the seized cryptocurrency exchange’s top three Bitcoin-sending counterparties were Hydra, LocalBitcoins, a VASP incorporated in Finland, and “TheFiniko”.

According to the US Treasury's Financial Crimes Enforcement Network (FinCEN), each of these sending/receiving counterparties is associated with illicit activities, and a majority of them have substantial ties and/or operations in Russia.

It is evident that Binance is the only [high-end cryptocurrency trading platform](/news/article/guide-to-binance-uk) among Bitzlato’s top sending/receiving counterparties.

According to Chainalysis research, Binance crypto platform moved more than 20,000 BTC, worth about ~$346M at the time, across 205,000 transactions, between May 2018 and the time of Bitzlato’s closure (last week).
Around $175M worth of Bitcoin was transferred from the seized trading platform to the crypto exchange in this period, making it the largest receiving counterparty of Bitzlato.

Nearly $90M of these transfers took place after August 2021. What adds interest to this is that the Binance crypto exchange had enforced mandatory user identification at this point to combat financial crimes.

Furthermore, in a blog last year, Binance said this would help tackle ["the funding and laundering of money from illicit activities"](/news/article/binance-news-dea-uses-exchange-to-track-cartels). Moni Talks could not confirm whether the identification check was enforced in dealings with the seized cryptocurrency platform.

It is worth noting that Binance is providing assistance to international law enforcement in the quest to support the Bitzlato investigation. Currently, it is unclear whether the trading platform's financial dealings with Bitzlato are under judicial review.

The news has been met with a downturn in crypto markets, as top cryptocurrencies have tumbled in price.


Red image of bitzlato logo and falling binance coins

Binance Crypto Exchange Linked to Bitzlato

## Crypto exchange Gemini in line for the next round of downsizing

In yet another blow to the industry, crypto exchange, Gemini plans to lay off another 10% of its staff to cut back on costs.

The [report](https://www.theinformation.com/articles/gemini-is-laying-off-10-of-staff-marking-latest-blow-for-winklevoss-crypto-startup?utm_content=article_push&utm_medium=organic&utm_campaign=AB_post&utm_term=AB_post) was provided by The Information after it intercepted an internal communication plan meant for Gemini's employees. The message referred to the crypto industry's crisis, as well as some "bad actors" in the industry that caused Gemini to make this decision.

This is the third round of downsizing that Gemini is going through within the past six months, as the crypto exchange is experiencing tough times.

The president of Gemini, Cameron Winklevoss, said the company had hoped to avoid further staff cuts, but that the "persistent negative macroeconomic conditions and unprecedented fraud perpetuated by bad actors in our industry" left it with no choice.

Of course, the party in question was none other than Genesis, and its parent company Digital Currency Group. Due to Genesis' own financial issues and bankruptcy, it has failed to meet obligations to Gemini and the crypto exchange platform's special project, Earn.

Earn is an interest-paying financial instrument that Gemini offers. The finances provided for the lending were covered by the Genesis group. However, due to bankruptcy, it was unable to pay the remainder of the due costs, which – [according to Gemini ](/news/article/winklevoss-claims-genesis-owes-investors)– amounted to around $900m.

There was a back-and-forth between the two entities on social media as well, with [Twitter](https://twitter.com/gemini/status/1592873279232278532?lang=ens) being the main playground for the heated exchange.

## Increasing trend of lay-offs in the crypto industry

Gemini isn't the first crypto exchange or crypto-based company to lay off its employees in the past year. The increasing number of bankruptcies, failures, and downright fraud committed by multiple crypto entities has contributed to a huge crash in the market.

After all these companies inherit losses and find it difficult to cover their expenses, the only stakeholder with a target on its back tends to be the employee.

The mismanagement of funds by upper-level executives is becoming more and more detrimental to not just company employees, but the crypto industry itself.

We wait to see how the market revives – if it does at all – and how much trust skilled workers will have in these crypto entities once again.


red image of employees carrying boxes out of office

Crypto Exchange Gemini Cuts Staff Again 

## Jim Cramer suggests investors ignore Bitcoin hype

Jim Cramer, the host of CNBC's Mad Money, [recently advised](https://www.cnbc.com/2023/01/23/jim-cramer-why-investors-should-ignore-crypto-and-stick-with-gold.html) investors to exercise caution when investing in cryptocurrencies.

###Jim Cramer suggestion to investors

Despite the [recent gains in Bitcoin's value](/news/article/bitcoin-bull-or-bubble-debate), Cramer suggests that investors should consider investing in gold instead. 

Bitcoin continued to rise in value on Monday, reaching a high of $23,155.93 as investors bet the Federal Reserve will slow or halt interest rate cuts.

According to Coin Metrics, the digital currency's price rose to $23,333.83 on Saturday for the first time since August. The coin has risen nearly 39% since the beginning of the month.

![graph](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/Screenshot_2023_01_24_at_11_41_30_289ce18657.webp)

Cramer said the charts indicate investors "need to ignore the crypto cheerleaders" following Bitcoin's resurgence. If you want "a real hedge against inflation or economic chaos", choose gold, he added.
 
The basis for his advice is the analysis by Carley Garner, a senior commodity market strategist and broker at DeCarley Trading. The study compares the daily chart of Bitcoin futures to that of the tech-heavy Nasdaq-100 since March 2021.

It is observed that [Bitcoin](/news/article/scaramucci-bitcoin-price-prediction) and other cryptos are almost trading in lockstep, suggesting they are risky assets rather than a currency or a stable store of value. Furthermore, the advice is that given the volatility of Facebook and Google shares, it would be unwise for business owners to try to conduct transactions with them, and the same goes for Bitcoin.

According to Cramer, "counterparty risk", which is the possibility that the other party in an investment or transaction might not uphold their end of the deal, is why they trade so closely.

He said that although counterparty risk can be avoided by storing Bitcoin in a decentralised wallet, as it is used for trading, the risk will return. Pointing to [FTX](/news/article/ftx-us-reports-415-million-hacked) collapse, he firmly suggests gold should be the potential investment.


Jim Cramer Says Ignore the Bitcoin Hype

If you are planning to purchase Solana-based tokens, you should never miss the powerful [Solanascan](https://solanascan.io/) alternative SolScan. With this blockchain explorer, you can track everything related to the cryptocurrency, including transactions, blocks, prices, and more.

## What is Solscan?

[Solscan](https://solscan.io/) is a cloud-based data analytics platform that lets users search for any information on the [Solana blockchain](/news/article/solana-price-gbp). This way, you can find the most recent price of the tokens, the latest news about the blockchain, and other information.

The platform makes it easier for users to understand the analytics and data on a blockchain.

## Benefits of using Solanascan

•	Track the performance of the portfolio over time.

•	Get alerts about price changes.

•	Analyze market trends and changes.

•	Get the latest company news.

•	No limit to the number of searches from the homepage.

•	Get the entire transaction history, including the transferer, transferee, transaction amount, and current holders.

•	You can also get to know the latest dollar value, SOL balance, and the cumulative number of transactions from the address information page.

## How does Solscan work?

Solscan works just like Solanascan. By entering the correct information (such as token address) into the search bar of the Solana blockchain explorer, you'll be able to view various data such as transaction costs, SOL Balance, and NFTs.

It scans for relevant information from the Solana blockchain and provides real-time updates. For example, you can get every detail of past Solana transactions, the holders, the transaction cost, and so on.

## What does Solscan track?

Apart from monitoring the transactions, it also lets you track more details of NFTs, tokens, smart contracts, blocks, and crypto whale trades. That is why it is considered among the best Solanascan alternative.

If you are new to the Solana blockchain, this tool can really help to understand every term related to Solana transactions. Feel free to explore this platform anytime from anywhere in the world.


blue image of solscan logo with picture of solana rocket

Solanascan Alternative Solscan Explained

Mercado [Bitcoin](/news/article/btc-price-today) is a Brazilian cryptocurrency exchange founded in 2016. It is centralised, has almost 1 million traders, and has a 24-hour trading volume of around 89.91 from 146 coins and 146 trading pairings. BTC/BRL (42.04) is the most active trading pair on the Mercado Bitcoin exchange. 

With more than 2 million registered clients and over 12 billion reais in transactions through 2019, the company's platform usage volume has increased 15-fold in the last 18 months. Expectations for the following two to three years are considerably higher, with a 100-200x increase predicted.

## How does Mercado Bitcoin expect to grow?

After extensive research into Google Cloud products, it was discovered that they were ideal for the demands of its IT team, particularly in terms of performance, security, stability, and support. Such expansion necessitates a highly scalable infrastructure, increased security, and enhanced application administration. The firm already utilised [Google](/news/article/solana-news-google-becomes-validator) Cloud for a few data storage functions and hosted its platform servers elsewhere.

## Mercado Bitcoin announces first stablecoin

Mercado Bitcoin (MB), [Brazil's](https://www.crypto-news-flash.com/stellar-lumens-gets-first-stablecoin-from-brazil-with-mercado-bitcoin-fostering-ecosystem-growth/) largest cryptocurrency exchange, has announced the debut of its first stablecoin, the MBRL, which is purportedly backed by reais. According to the release, the MBRL stablecoin is on the Stellar (XLM) network. 

However, the cryptocurrency exchange has stated that the MBRL stablecoin would be available on other blockchains. Furthermore, the success of a stablecoin is directly proportional to the number of chains it traverses. The objective is to accelerate the potential for the adoption of blockchain applications in Brazil, and produce solutions that empower clients' daily transactions, stated Reinaldo Rabelo, CEO of MB.

The Stellar community will benefit significantly from Mercado Bitcoin's MBRL stablecoin due to increased on-chain activity. Furthermore, the MBRL stablecoins will pay Stellar Lumens blockchain fees using XLM.

## Partnership with Druid

[Mercado Bitcoin](https://forbes.com.br/forbes-tech/2022/12/mercado-bitcoin-amplia-atuacao-e-estrutura-frente-de-games-e-e-sports/), one of Latin America's leading Bitcoin marketplaces, has launched a gaming and e-sports front, with the first announcement being the sponsorship of the INTZ squad. Druid Creative Gaming, a specialised agency, will be responsible for the strategy, conception, and implementation of MB activities for games, metaverse, activations, and sponsorships for the e-sports market.

Druid and Panamera worked together to create a film that features the streamer Sher as an ambassador. She is the first trans streamer of INTZ and was responsible for organising the first League of Legends for transgender people championship, in addition to winning the 'Best Female Streamer' award at the CCXP Awards. 

As a first initiative, Druid is launching a campaign announcing a relationship with INTZ, intending to merge the segment's present expanding strength with the crypto world's advances.


Green image of mercado bitcoin logo on abstract background

What is Mercado Bitcoin?

Beginning on February 1, 2023, SWIFT will no longer handle the transfer of fiat money from bank accounts to cryptocurrency exchanges if [the value of the transaction is less than $100,000](https://techstory.in/swift-will-no-longer-process-fiat-currencies-transactions-below-100k-to-crypto-exchange/). This action will prevent crypto access for hundreds of thousands, if not millions, of clients.

Binance, the world's biggest cryptocurrency exchange in terms of the volume of cryptocurrency trading, was one of the first crypto exchanges to tell its users of the development that occurred this week.

## Binance announces impact of SWIFT crypto restrictions

Binance has stated that this decision will impact only Signature Bank customers. The statement on the SWIFT crypto development was issued to Asia Markets. It said that one of the fiat banking partners, Signature Bank, had informed Binance that as of February 1, 2023, they would no longer support any cryptocurrency exchange customers who bought or sold an amount less than $100,000.

[Binance said that as a direct consequence of this change](/news/article/binance-news-dea-uses-exchange-to-track-cartels), certain customers would no longer be allowed to utilize SWIFT bank transfers to buy or sell cryptocurrency with or for USD for sums less than $100,000.

The previous week, Signature Bank disclosed that it would be taking steps to lessen its exposure to several cryptocurrencies. Concerns about restricting access to cryptocurrencies are becoming more widespread.

Although it is the largest and most important financial network in the world, SWIFT, or Society for Worldwide Interbank Financial Telecommunication, is somewhat of a secretive Belgian-based cooperative.

SWIFT is responsible for the daily settlement of trillions of dollars’ worth of international money transactions. Following the commencement of hostilities in Ukraine in 2014, the US and its allies disconnected Russia from the SWIFT network.

This development brought SWIFT back into the news cycle. Due to the gravity of the situation, the French finance minister likened the decision to shut off Russia's access to SWIFT to the use of a nuclear financial option.

It is, however, still a mystery why institutions involved in stopping SWIFT transfers have moved to release what would become a crypto-nuclear option for millions of people who do not have a minimum of $100,000.

The European Central Bank (ECB) is planning to begin testing a digital currency this year, with the possibility of a complete deployment by 2026. One idea suggests this could be a precursor to central bank digital currencies.


Yellow image of phone doing crypto payment with Swift logo overlayed

SWIFT Crypto Restrictions Leave Users in Dark

Over the last decade, the popularity of cryptocurrencies has grown. Increased interest in the nascent asset class has led to new exchanges popping up, making it easier to purchase crypto. But how do you buy crypto with Amex?

Payment options to purchase cryptocurrencies have expanded. Methods like bank transfers, cash, debit, and credit cards have grown in acceptance.

Despite this, major credit card issuers in the US, like TD Bank, Capital One, and PNC Bank, have blocked crypto transactions. They claim that they're risky assets for their customers. Other financial service providers, like American Express, have maintained support for buying crypto through their credit cards. This is not without caveats, however.

## The American Express Crypto Broker

American Express has maintained a cordial relationship with crypto. It allows customers to deposit money using their Amex card to fund their crypto account. This means that American Express provides the services of a broker that acts as a middleman, allowing you to execute trades while charging small fees.

It is simple to purchase cryptocurrencies on the market with credit cards that permit the transaction. According to a [LendEDU poll](https://lendedu.com/blog/bitcoin-and-credit-cards/), 18.15% of Bitcoin investors claim to have funded their accounts with credit cards.

However, you must find a third-party cryptocurrency exchange that accepts American Express if you want to purchase Bitcoin and other cryptocurrencies using it. First, open an account and then fund it with a credit card.

## What you must know before you buy crypto with Amex

### Brief History

The headquarters of American Express is located in New York City's Three World Financial Center. The company was established in 1850 in Buffalo, New York, as an express mail service. Later, it expanded its offerings to include credit cards, traveller's checks, and money orders. More than 130 countries are served by American Express.

American Express is governed by state banking regulations in the United States and has a license from the US Department of Treasury Financial Crimes Enforcement Network to operate as a money transmitter. American Express is also a Federal Deposit Insurance Corporation (FDIC) member.

### What to know

Credit card issuers are generally still wary of crypto. Hence, there are caveats surrounding Amex's facilitation of crypto purchases.

First, most exchanges limit large purchases of crypto assets when using a credit card. This is to protect users from possible fraud and not allow them to max out their credit cards by funding their account.

Amex limits users to $200 worth of Bitcoin daily and up to $1,000 per month.

Second, credit cards like Amex also offer an additional level of security that other modes of payment don't provide. 

Safeguards like [fraud protection](/news/article/crypto-scam) and the ability to call and reverse purchases help customers secure their funds.

Third, the cost of purchasing crypto with credit cards differs from exchange to exchange. You will pay a transaction fee of 3.5% of your purchase plus $0.15 when using 247Exchange. When you consider that Coinbase charges 3.99% and Coinmama comes in at almost 6%, this is one of the lesser fees. However, CEX.io only charges 0.2%, but using the exchange requires a time-consuming verification process.

American Express transaction fees might be as high as 4%. When you buy crypto with Amex, it may result in a higher fee because American Express charges merchants a larger fee than other payment processors.
An annual fee can be associated with your card, depending on which Amex card you choose. Amex can also charge you for currency conversion fees, returned payments, and late payments.

Furthermore, before deciding to buy crypto with Amex, potential customers should consider the speed, ease of use, and reputation of the intended exchanges.

## Where can you buy crypto with Amex?

All major exchanges accept credit cards as a payment method for crypto. Here are some exchanges to consider:

1.	Paxful: 
Paxful allows users to trade crypto directly with one another. It's an open marketplace where users can quickly buy the crypto of their choice with less hassle. Amex works [seamlessly](https://paxful.com/buy-bitcoin/american-express-card/?paymentMethod=american-express-card&countryIso=NG&hasScroll=true) on the platform.

2.	CEX.io: 
This crypto exchange is one of the pioneer exchanges in the market. It dates back to 2013, when it was established in London. It supports virtually all countries around the globe.
It's registered with [FinCEN](https://en.wikipedia.org/wiki/Financial_Crimes_Enforcement_Network) in the US. In the UK, it's listed as a Money Service Business. The exchange says it's never lost user funds.

3.	eToro: 
This company was established in 2008 as a social trading platform. It caters to CFDs, stocks, indices, currencies, commodities, and cryptos.

Amex is an accepted broker on the platform.

## How to buy crypto with Amex

1.	Choose your preferred exchange: 
The first step is to look for an exchange that allows you to buy crypto with American Express. Though Amex is not as widely accepted as Visa and MasterCard, all the exchanges listed above accept Amex.

Also, confirm the processing fees, trading fees, and withdrawal fees.

2.	Registration and KYC: 
Once you've been able to choose a preferred exchange, you have to set up your account.
Hit the sign-up button and provide any personal information required. Regulated platforms will ask for complete KYC, including a photo ID.

3.	Deposit funds: 
Once you're done with registration, select the "deposit funds" option. Enter your deposit amount, then choose "credit card" as your preferred payment method. Enter the Amex card details required to connect your card. Then make a deposit.

4.	Buy crypto: 
When your deposit reflects on the exchange, you can begin purchasing the crypto of your choice.

## Bottom Line

The pros of using the Amex credit card to buy crypto cannot be overstated. Users enjoy fast processing of their deposits and industry-standard fraud protection.

Though Amex is plagued by high transaction fees and a limited purchase size, its crypto-friendly stance has made it a more widely accepted method of payment on crypto exchanges.


blue image of american express credit card with pile of bitcoins

How to Buy Crypto with Amex 