Here's your Tuesday edition of Cryptonews Crunch, featuring the latest stories about ShadowFi's liquidity pool being drained due to an exploit in the contract, the Bank of Russia legalizes cross-border payments in cryptocurrency, and Open Interest in ETH futures has declined since late August.
Ending a long-term dispute, Russia’s Ministry of Finance has announced it has reached an understanding with the Bank of Russia, the country’s central bank, over the legalization of cross-border payments in cryptocurrencies. Referring to the sanctions on Russia’s economy resulting from the country’s invasion of Ukraine, Deputy Minister of Finance Aleksey Moiseev told local news agency TASS that both institutions agreed that, in the current conditions, “it is impossible to do without cross-border settlements in cryptocurrency.”With many Russian businesses struggling to stay financially afloat as they have been cut off from the global financial system, the move is intended to facilitate foreign trade and imports of key products.
In a letter obtained by Reuters, a lawyer for Alexander Vinnik, a man extradited last August to the U.S. to face money laundering charges, requested Russia’s Foreign Minister Sergei Lavrov to set up a prisoner exchange including his client. “Now the only thing that can save Alexander is for the Russian Federation to enter into negotiations with the American authorities within the framework of the exchange of prisoners between the countries mentioned,” lawyer Frederic Belot said in the letter. In a statement, the U.S. Department of Justice says that according “to the indictment, Vinnik and his co-conspirators allegedly owned, operated, and administrated BTC-e, a significant cybercrime and online money laundering entity that allowed its users to trade in bitcoin with high levels of anonymity and developed a customer base heavily reliant on criminal activity.” The alleged money launderer is facing up to 55 years in prison if convicted.
Per the financial arm of the newspaper giant Globo, the Brazilian Securities and Exchange Commission, known locally as the CVM, has ditched its laissez-faire attitude to crypto and now wants to play a key part in policy formation for the sector. The change of heart follows a change of management at the helm of the CVM. But the crypto sector may not welcome this news: A relatively pro-industry bill is now in its advanced stage of formation in the lower house after having passed the Senate. Globo reported that the CVM is now “pressing for significant changes in the legal framework” that governs crypto, which “may make it impossible to approve the bill in Congress” and bring policy discussions about the sector “back to square one.”
Turkey’s official consumer prices index rose by 80.2% year-on-year in August, up from an already high 79.6% in July. This represents the first time official inflation has passed 80% since 1998, and it also represents the highest rate recorded during President Recep Tayyip Erdoğan’s nearly 20-year rulership. Such eye-watering figures have hit Turkish residents hard, yet many have found one fairly novel means of lessening the impact of inflation: cryptocurrency. Yes, while Turkey’s reputation as an undemocratic nation might imply that crypto isn’t welcome in the Eurasian nation, it boasts one of the highest cryptocurrency ownership rates in the world, showing that bitcoin is used for more than just risky speculation. Industry figures in Turkey suggest that 2022’s bear market hasn’t done too much to dampen the enthusiasm of Turks for crypto. This is because, even though BTC has fallen by 71% since an all-time high of USD 69,000 in November, the Turkish lira has fallen even harder.
Open interest (OI) in Ethereum (ETH) futures has retraced from the all-time highs in ETH terms reached in late August, despite Ethereum’s highly anticipated transition to proof-of-stake moving closer by the day. Per a new report from crypto researcher Kaiko, a pullback in ETH OI has been observed so far in September, retracing from 5.1m ETH in the end of August to 4.7m ETH as of September 5. And although the current open interest is a decline from the highs, it still marks one of the largest buildups of OI in the ETH futures market. The uptick in interest from futures traders comes as the Ethereum network is gearing up for the network’s transition from proof-of-work (PoW) to proof-of-stake (PoS), an event known as the Merge that is expected to take place between September 10 and 20. The notable changes in OI has come as the spot price of ETH has continued to rise since the end of August, moving from a closing price on August 31 of USD 1,554 to USD 1,668 as of Tuesday at 11:30 UTC.
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