• IMF Managing Director Kristalina Georgieva has revealed that the International Monetary Fund is seeking to regulate private cryptocurrencies.
• She stated that the IMF does not want an outright ban on digital assets and wants to differentiate and regulate crypto assets.
• Georgieva pointed out that cryptocurrencies could not be legal tender since they are not backed, but added that the option to ban crypto assets should not be completely dismissed if they begin to pose a greater risk.
IMF Seeking More Regulations on Private Cryptocurrencies
The International Monetary Fund is seeking more regulations on private cryptocurrencies, according to Managing Director Kristalina Georgieva. She made this statement while speaking at the G20 finance ministers‘ meetings in India. The IMF doesn’t want an outright ban on digital assets, but instead wants to differentiate and regulate crypto-assets.
Cryptocurrencies Cannot Be Legal Tender
El Salvador recently became the first country in the world to make Bitcoin a legal tender, however Georgieva said this was not possible due to them being unbacked by states. She added that if crypto-assets become too risky then banning them should still be considered as an option.
Differentiating Between Central Bank Digital Currencies & Stablecoins
Georgieva stated that their first objective was to distinguish between central bank digital currencies (backed by states) and publically issued stablecoins. Fully-backed stablecoins can create a good space for cryptocurrency economies, however non-backed crypto-assets are highly speculative and very risky investments.
Regulating Digital Money Is A Top Priority
The IMF director explained how she wanted the UN financial agency’s current approach towards digital money and what it would like to achieve through regulation of it. She said regulating digital money is now a top priority for them as they do not want an all out ban on cryptos or other digital assets yet with high risks involved they must also consider banning options if needed in future.
Confusion Around Classification Of Digital Money Exists
Georgieva also mentioned there is still much confusion around classifying digital money which makes it difficult for regulators worldwide when looking into these new technologies and formulating laws accordingly. As such more clarification is required before any further steps can be taken regarding regulating private cryptocurrencies globally
• Jump Crypto, a Chicago-based subsidiary of Jump Trading, is reportedly the US trading firm that made over $1.28 billion off Luna tokens according to the SEC.
• The SEC has charged Terraform Labs and its CEO Do Kwon with misrepresenting human effort as a software algorithm in order to help TerraUSD (UST) regain its $1 peg.
• The US-based trading firm secured a deal with Terraform Labs to buy Luna tokens at massive discounts, allowing them to make huge profits when they were sold on secondary markets.
Jump is the ‚US trading firm‘ that made $1.28 billion off LUNA: report
The US Securities and Exchange Commission (SEC) recently filed charges against Terraform Labs and its CEO Do Kwon for misrepresenting human effort as a software algorithm in order to help TerraUSD (UST) regain its $1 peg. Sources now claim that the unidentified trading firm is Jump Crypto, a Chicago-based subsidiary of Jump Trading.
Jump’s Deal with Terraform Labs
Jump had been providing market making services for Luna since 2019, but it was not until May 2021 – when UST de-pegged – that the company stepped in to buy Luna tokens at massive discounts from Terraform Labs. This allowed them to make huge profits when they were sold on secondary markets, leading them to realize over $1.28 billion in profit from their trades.
Despite helping UST regain its dollar parity via this deal, Terra misled the public by presenting the re-pegging as a result of the stablecoin’s software algorithm rather than human effort put forth by third parties such as Jump Crypto.
SEC Charges Against Kwon and Terraform Labs
The SEC has thus brought charges against Kwon for his role in this mismanagement of funds and failure to disclose crucial information regarding Jump’s involvement in helping UST repeg.
Ultimately, it appears that Jump Crypto was able to take advantage of an opportunity presented by Kwon and his team at Terraform Labs which led them to reap massive profits while deceiving investors into believing they were dealing with an automated system instead of humans making decisions behind the scenes.
• Tether reported a net profit of $700 million in its recent Q4 attestation report.
• The company revealed that the majority of its investments are held in cash, cash equivalents, and other short-term deposits.
• Tether’s consolidated assets exceeded its liabilities as of Dec. 31, 2022, reflecting excess reserves of at least $960 million.
Tether Reports Net Profit in Q4 Attestation Report
Stablecoin issuer Tether recently published its latest attestation report on Thursday, February 9th revealing a net profit of $700 million in the previous quarter despite the ongoing bear market. In addition to this profit figure, Tether also reported that its reserves remain extremely liquid with the majority of investments being held in cash and other short-term deposits.
The company further revealed that their consolidated total assets amounted to at least $67.04 billion while their consolidated liabilities amounted to $66.08 billion as of December 31st 2022 reflecting excess reserves amounting up to at least $960 million. This is the first time that Tether has disclosed such figures which have been attested by an accounting firm BDO.
Ceasing Secured Loans From Reserves
This news comes barely two months after Tether pledged to stop issuing secured loans from its reserves which would be part of shareholder equity or what is left over from reserves after all expenses have been accounted for.
Adoption & Growth
In a statement released by CTO Paolo Ardoino he said; “Tether once again proved its stability in the troubled year of 2022. Not only were we able to smoothly execute over $21 billion dollars in redemptions during the chaotic events of the year, but Tether has, on the other side, issued over 10 billion USDT an indication of continued organic growth and adoption”
The latest profits reported by Tether show how stablecoins can still generate high returns even during bear markets while maintaining liquidity and security for investors‘ funds through proper management and transparency
• Indonesia is set to launch a national crypto exchange in the next few months.
• The country’s Trade Ministry has identified five active, registered exchanges from a list of 25 for the role.
• The government is aiming to have the crypto bourse ready by June 2023.
Indonesian Government to Launch National Crypto Exchange
The Indonesian government plans to roll out its national cryptocurrency exchange in the coming months. According to the country’s Trade Ministry, five active and licensed platforms have been chosen from a total of 25 exchanges that applied for inclusion in the project. The goal is to have the crypto bourse ready by June 2023.
Omnibus Law Establishes Regulatory Framework
In December 2020, lawmakers in the House of Representatives passed an omnibus law which serves as Indonesia’s primary legal reference for the broader financial services industry. This law also covers regulatory oversight of crypto exchanges, providing clarity and protection for users when trading with digital assets.
Review Process Underway
The review process for digital asset exchanges selected to join the national crypto exchange is currently underway. Once completed, these exchanges will be authorized and supervised by regulators within their respective jurisdictions before they can operate legally on Indonesian soil.
Trade Minister Calls For Caution
Indonesia’s Trade Minister Zulkifli Hasan recently called on authorities not to rush into launching the project too quickly, as this could potentially harm citizens who are still learning about cryptocurrency trading and need proper protection from risks associated with it. He stated that it was important that all due diligence was done before officially launching the platform so that traders would be able to do so safely and securely without any issues or worries about fraud or other malpractices taking place on it.
Growing Crypto Community In Indonesia
Indonesia has one of the fastest growing cryptocurrency communities across Asia Pacific, making this upcoming launch all more important for them as well as other countries looking at increasing their own adoption rates within their borders as well. With greater regulatory clarity provided by laws such as this omnibus bill, more investors will likely feel safe enough to enter into trades with cryptocurrencies in Indonesia going forward.