Find out about the most interesting news of the week about the cryptocurrency industry in the following overview
Square CEO Jack Dorsey revealed that the San Francisco-based digital payments company plans to develop a hardware Bitcoin wallet.
He first mentioned the project in a tweet last Friday, and then later revealed more details at the Bitcoin conference in Miami. The new hardware wallet would be similar to traditional Bitcoin wallets, only that it would be offline and not web-based.
The proposed idea aims to provide an additional level of protection for users who would rather avoid storing their Bitcoin on a web-enabled device. Dorsey, who also serves as a co-founder of Twitter, explained that the company would offer assisted safekeeping, where users will be able to access a certain percentage of funds through their phone and securely store the rest in the hardware wallet.
In addition, it would give users more control over their Bitcoin and reduce the cases of fraudulent activity that leads to unintentional loss of digital assets. As a stated advocate of Bitcoin, Dorsey went on to explain that if Square were to pursue the project, it would not be limited to just the company. The plan is to share ideas and involve the wider community.
New York State Senate Passes a Bill That Will Affect Crypto Mining
The New York State Senate on Tuesday this week passed a bill to regulate crypto mining operations in New York. The amended bill, which originally proposed a three-year halt to all mining operations in New York’s Tri-State region, was introduced by Democratic Senator Kevin Parker of the 21st Senatorial District.
If passed by the Democratic-dominated State Assembly and approved by Governor Cuomo, the law would be a restriction on crypto mining operations that run on carbon-based fuels. In addition, it would require crypto mining operations to document the type of fuel used, carbon footprint and energy output.
The bill is expected to expand the Environmental Protection Act to prohibit the operation of plants powered by carbon-containing electrical energy. The State of New York is taking steps to ensure environmental protection on the way to achieving its sustainable energy goals.
Bitcoin is now a legal tender in El Salvador
Crypto fans around the world were thrilled when El Salvador’s congress approved Bitcoin as legal tender in the country late Tuesday. With the plenum’s approval, the Central American country became the first nation to adopt Bitcoin or any other cryptocurrency as legal tender. The law would come into force 90 days after its adoption and BTC could be used by the citizens of El Salvador to pay taxes and carry out other everyday transactions.
El Salvador, whose primary exchange currency is the US dollar, will now be able to escape the political constraints associated with the dollar. President Nayib Bukele stated that this move would promote development and improve financial inclusion. Further, he added that the acceptance of Bitcoin makes it easier to send remittances on which the country’s economy relies heavily.
Bukele also clarified that the virtual currency is optional and that the government will guarantee the conversion of cryptocurrencies into dollars in exact value. The biggest problem at the moment is that there are already concerns about increasing illegal and fraudulent activity with cryptocurrencies. Given El Salvador’s pre-existing reputation for corruption, it is feared that a Bitcoin currency could result in a lot of illegal activity.
Interactive Brokers to Expand Crypto Trading Services Soon
Interactive Brokers CEO Thomas Peterffy has revealed it is in the company’s planning to offer crypto trading services soon. In a speech Wednesday at the Piper Sandler Global Exchange & amp; FinTech Conference, he revealed that customers are already asking for crypto trading services, and Interactive Brokers should be ready to offer the services by the end of the summer.
With the entry into crypto trading, Interactive Brokers will stand out from close competitors Fidelity Investments and Charles Schwab, who have not yet explored the idea. However, it is important to note that the concept of crypto trading is not completely alien to the company, since, despite its absence in bitcoin trading, it allows users to trade bitcoin futures.
The CEO noted that the biggest challenge in embracing crypto would be ensuring that customers are 100% secure. He explained that the untraceable nature of crypto coins would be an obstacle to overcome in order to protect the consumer. The decision comes as a change of heart from the chairman of Interactive Brokers, who has previously insisted that Bitcoin and other cryptocurrencies must be kept away from the real economy. The company has not yet determined exactly which cryptocurrencies to use when opening the trade.
Banking regulators recommend strict rules for cryptocurrencies
The Basel Committee on Banking Supervision issued a recommendation on Thursday that banks must establish strict rules on cryptocurrencies so as not to endanger the entire financial system. The committee, which is made up of regulators from around the world, suggests that banks take a strict and conservative approach to dealing with cryptocurrencies. The proposal provides for mandatory financial protection of banks to protect themselves from the potential loss of 100% of assets invested in cryptocurrencies.
The group of regulators also warned that the growing nature of cryptocurrencies, even if banks do not currently have a large exposure to cryptocurrencies, could lead to instability and increase the risks that banks face. Even though the proposed rules for crypto are strikingly strict, the committee proposed another set of regulations for stablecoins.
The rules would be less restrictive and similar to the existing rules. The Swiss-based committee did not include any recommendations for CBDCs, saying that given the ever-changing crypto space, further consultations will take place before reaching a conclusion on the guidelines.
DOJ Retrieves $2.3 M in Crypto Assets from Colonial Pipeline Hackers
U.S. officials reported during a briefing on Monday that they recovered $2.3 million in crypto paid by Colonial Pipeline after the company was blackmailed last month. It has managed to recover some of the bitcoin paid to Darkside( a Russian hacking group) in the incident, the Ministry of Justice said.
During the briefing, Deputy Attorney General Lisa Monaco stated that they had only tracked the money to the point of recovery. She also promised that the government would use its resources to make such criminal efforts increasingly costly and unprofitable for the attackers. In the same briefing, FBI Deputy Special Agent Elvis Chan told journalists that foreign criminals were using American infrastructure, giving the US legal leeway to recover assets.
Last month, Colonial Pipeline’s CEO told the Wall Street Journal that they had decided to comply with the $ 4.4 million ransom demand because they were not clear about the extent of the intrusion and the duration of the disruption. However, the company took steps to inform the competent authorities.