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Over the past five months, Iranian authorities have shut down over 9,000 illegal crypto mining rigs in Tehran. Be[In]Crypto has rounded up some of the most important stories from the past week in the crypto industry, just in case you missed them.
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Ethereum merger
Ethereum (ETH) developers have raised concerns about the network’s upcoming “merger”, a transition from Proof-of-Work (PoW) consensus to Proof-of-Stake (PoS) consensus. The merger is expected to take place on or around September 15 and will see the ETH network transition from its current decentralized proof-of-work consensus algorithm to a new proof-of-stake algorithm.
Ethereum co-founder Vitalik Buterin has always been an advocate for the PoS protocol. In his November 2020 blog post, he detailed why he thinks PoS is a better system than PoW. These include more secure security “for the same cost”, decentralization and attacks that facilitate “recovery”.
Chainlink has announced that it will support the PoS chain after the merger. Ethereum is transitioning from a network that needs miners to validate transactions, which is an energy draining procedure, to a network where so-called validators “stake” Ethereum tokens with the ability to approve transactions instead.
Crypto penalties
Following numerous attacks on digital currency, governments around the world have put in place regulations that crypto businesses must follow. Reports detail that the $620 million that was stolen from Axie Infinity’s Ronin sidechain was transferred through illicit crypto mixers.
Private keys were used to withdraw ETH and USD Coin (USDC) from the Ronin sidechain, a crypto bridge that was created to help Axie Infinity players trade tokens between blockchains.
On May 6, 2022, the US Treasury Department sanctioned Blender.io after it revealed that the Bitcoin (BTC) mixing service had been used by North Korean hackers to launder funds for cybercrime. The Treasury Department said the mixer processed $500 million in bitcoin transactions at Axie Infinity when the hack happened.
In a letter to Treasury Secretary Janet Yellen, Minnesota Sixth District Congressman Tom Emmer demanded an explanation for what he calls the unprecedented banning of a similar crypto mixer called Tornado Cash. .
Growth of NFTs
Non-fungible token (NFT) platforms have recently seen rapid growth over the past few months, with users showing great interest in buying, selling, and trading these digital assets.
Recently, Nike, one of America’s most famous sports brands, emerged as the world’s highest earning brand for NFT purchases so far this year. The gaming company tops the list of highest earning digital token brands. The company leads with sales of $185 million, according to data from Dune Analytics.
Illegal crypto mining
The Iranian government has seized more than 9,000 illegal crypto mining rigs in Tehran over the past five months, with many more expected to be confiscated in other parts of the country.
The development comes after the Iranian government cracked down on crypto-mining farms that used subsidized electricity to power their operations. In some cases, these farms were stealing electricity from state-owned utility companies. According to the Central Bank of Iran (CBI), it is illegal to buy or sell cryptocurrencies in Iran, although it is legal to mine them and use them to pay for imports.
The Islamic Republic of Iran recently placed its first import order, worth $10 million, using cryptocurrency, raising concerns about sanctions evasion. According to the head of the bank, those with official permissions are allowed to mine digital currencies for these types of imports.
Cryptocurrency scams
Crypto scams have been a big problem in the crypto space, with billions of dollars lost to scammers every year. This has become the main challenge for the investor in the crypto space and also for the government trying to control it.
In an August 22 report, the owner of a Bored Ape, purchased for $116,000, was scammed just two hours after purchase. Bored Ape’s most recent event is just one of many thefts that have taken place throughout August, as ownership of one of the simian NFTs becomes increasingly precarious.
Scammers stole over $100 million between July 2021 and July 2022. Last summer, NFT sales surged, leading to an influx of new investors and crypto enthusiasts who were unfamiliar with the space. Many of these people have been defrauded of their investments.
Cryptographic Innovations
Samsung plans to launch its own cryptocurrency platform next year, where the tech giant’s investment firm plans to launch its own cryptocurrency. The South Korean giant has developed a wallet function for its range of Galaxy smartphones, and a television supporting NFT and Cardano (ADA).
In 2023, six more top companies will have a crypto trading platform on the exchange, including Mirae Asset Securities. This could attract investors to the cryptocurrency company, as investors will feel more secure when investing in a company with a good reputation. News of the Samsung cryptocurrency exchange has been welcomed by the crypto community as it will help legitimize the industry.
Japan to review corporate tax rules
The Japanese government’s Financial Services Agency (FSA) and the Ministry of Economy, Trade and Industry (METI) will review corporate tax rates for crypto businesses starting in 2023. review will mainly focus on crypto businesses that donate cryptocurrency to raise funds that are used to set up businesses.
The new system considers whether businesses that own digital tokens will only be taxed if profits are generated when sales are made. The agencies say they don’t want to stunt the growth of startups and hamper their work in Japan by having a double tax system. In July 2022, crypto advocates in Japan called for tax cuts.
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