Crypto News | 20 July 2021 Update

This-Week-In-Crypto-20-7-21




Dacxi
Corporate


19 July, 2021 | 5 MIN

Ukrainian Authorities Unearth Illegal Crypto Mining Nexus 

BNY Mellon Becomes an Asset Servicing Provider for Grayscale Bitcoin Trust

Brazil Approves Ether ETF

SEC Pushes Back Its Decision On Wisdom Tree’s Bitcoin ETF

Property Tax in Bitcoin: Jackson, Tennessee Targets a Bitcoin Solution to Fix Inflation and Dollar Devaluation

 

This week’s updates appear to be a mixed bag. On the downside, one of the most crypto-friendly countries, Ukraine, has been found at the epicenter of a large-scale illicit crypto-mining operation. The SEC has not yet made up its mind on whether to approve Wisdom Tree’s Bitcoin ETF. 

But, on the brighter side, America’s oldest bank, BNY Mellon, has become an asset servicing provider for GBTC, Grayscale Bitcoin Trust. Brazil’s securities regulator has approved its third crypto-ETF, and the Mayor of Jackson, Tennessee, has openly advocated for a crypto-based payment avenue to combat dollar devaluation and inflation.

Ukrainian Authorities Unearth Illegal Crypto Mining Nexus 

Raiding an illegal crypto mining farm in the country, the Ukrainian Security Service has recovered nearly 5,000 computers, 500 graphics cards, and 50 processing units. Additionally, the authorities have also seized notebooks, phones, and flash drives. Out of the 5,000 computer equipment units, 3,800 were PS4 or Playstation 4 consoles. 

The illegal mining racket was functional on the erstwhile premises of JSC Vinnytsiaoblenergo, an electricity supply company. The miscreants manipulated JSC Vinnytsiaoblenergo’s electric meters to steal electricity. 

While measuring the extent of the loss, the security service authorities of Ukraine found that the state’s monthly loss, arising out of electricity theft, fell anywhere between $186,200 and $259,300. Moreover, the stealing could have caused an electric shortage for the entire city of Vinnytsa. 

Ranked as a world leader in Chainanalysis’ Global Crypto Adoption Index, Ukraine is known for its crypto-friendly initiatives. Malpractice of this scale and nature has, therefore, caught the attention of the global crypto community. 

BNY Mellon Becomes an Asset Servicing Provider for Grayscale Bitcoin Trust

In another instance of effective collaboration between traditional financial institutions and crypto players, Grayscale Investments has selected America’s oldest bank BNY Mellon as an asset servicing provider for GBTC, Grayscale Bitcoin Trust. The GBTC is a unique digital currency investment product that offers US investors indirect exposure to Bitcoin. 

BNY Mellon will also serve as the transfer agency and ETF-related services provider for GBTC when it converts to an ETF. Effective from October 1st, 2021, the fund accounting and administration of GBTC will come under the purview of BNY Mellon.

The association of BNY Mellon with Grayscale’s potential ETF is not the first-of-its-kind association for BNY Mellon. In 2019, the Bank also became the official transfer agent and administrator of the Bitcoin ETF proposed by Bitwise Asset Management. 

Brazil Approves Ether ETF

The Comissão de Valores Mobiliários (CVM) is Brazil’s securities regulator. Generating much enthusiasm among the country’s crypto-enthusiast community, the regulator has approved an Ether exchange-traded fund. 

It is not the first time a crypto-ETF won regulatory approval in Brazil. In March 2021, one 100% Bitcoin ETF and another ETF comprising five cryptocurrencies got approval. 

The ETF will trade under the ticker QETH11. The trade will take place on the B3 stock exchange, one of Brazil’s most reputable exchanges that serve both regional and global customers. 

QR Capital, a holding company of QR asset management and issuer of the fund, terms the ETF as “a simple, safe and regulated option” to gain exposure to Ethereum.

SEC Pushes Back Its Decision On Wisdom Tree’s Bitcoin ETF

On July 13, SEC pushed back its decision asking all interested persons to submit their views in writing on whether it should approve or deny Wisdom Tree’s Bitcoin ETF. The public will get 21 days to submit their comments to the Federal Register. 

With the application filed on March 23, 2021, the first-time SEC asked for the public’s comment in April. This time, the SEC wants specific opinions on whether the Bitcoin ETF would succumb to manipulation. It wants to ascertain whether the public believes that the exchange’s proposal can adequately safeguard itself from manipulative acts and practices. 

Rebuttals on public comments should be filed in 35 days from publication.

Property Tax in Bitcoin: Jackson, Tennessee Targets a Bitcoin Solution to Fix Inflation and Dollar Devaluation

What is the fix to a 6.3% inflation in two years? According to Jackson Mayor Scott Conger’s official tweet, the only fix to this is Bitcoin. 

In an exciting update of potential collaboration between the public sector and crypto industry, the city of Jackson, Tennessee, is looking at diving into cryptocurrencies by accepting BTC for property tax payments.  

The blockchain task force of the city has launched a study on potential methods to accept property tax in Bitcoin. 

What appears to be following the steps of Miami Mayor Francis Suarez,  encouraging the city of Miami to adopt tax and salary payments in Bitcoin, Mayor Scott Conger is also leading Jackson, Tennessee, to explore options to pay city employees in cryptocurrency. Apart from Bitcoin, the city could also adopt Ether or LTC for its payments. 



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