Last week of September and so a lot of interesting things to talk about in the crypto-sphere. Today we are going to talk about the massive hack of KuCoin, VISA, Russia's regulations and China's expectations regarding their numerical Yuan. Let's simply dive into it.
1. $150 millions stolen from KuCoin :
A pretty recent news because it happened yesterday and also sad for the exchange and its users. The hack lasted few hours and approximately $157 millions were stolen, in Bitcoin, Ethereum, and ERC-20 tokens like Tether, Alchemy or Ocean. KuCoin assures that if user funds have been affected by the incident, the losses will be fully covered by the platform and its insurance fund.
KuCoin was actually aware of the problem very early but thought it was "a simple security flaw" and nothing bad, as a result it's the analyst firm CryptoQuant who detected that an unusual amount of Bitcoins very quickly left KuCoin’s wallets during the night. This hack is the 4th most important in the history of cryptocurrencies after CoinCheck with $530 millions, Mt.Gox with $460 millions and BitGrail $170 millions, it's the ideal moment to remember you to protect your funds on cold wallets if you own big amounts.
2. VISA is working on offline transactions :
I have talked about VISA a lot in the past because this huge company is more and more implicated in the cryptocurrency world, and this news bears witness to this. Apparently VISA would work on the development of a payments solution based on Sovereign Digital Assets and requiring no Internet connection.
The main purpose of this project is security, transactions online can be the target of cyberattacks as a result offline transactions appear as the ideal solution. Moreover this work is being conducted in a competitive environment between Visa and Mastercard, both of which wish to have a monopoly on working with central banks to develop Sovereign Digital Assets. VISA's involvements answer to a strong demand from companies in the cryptocurrency sector to collaborate in this direction.
3. Russia is becoming hostile to cryptocurrency :
Friday the Roskomnadzor (the Federal Communications, Information Technology and Media Monitoring Service in Russia), decided to backlist Binance, a tough decision knowing that Binance is the number 1 crypto-exchange in the world. Apparently to what the Roskomnadzor stated, Binance would be accused of having disseminated data considered as unauthorized in Russia. For now Russian citizens can still access the website and their funds are "safe" according to Binance Team.
Moreover in Russia this week 3 the government voted for a law regarding cryptocurrency assets, from now on the Russian justice will punish investors with very severe sanctions if they do not declare their crypto assets (up to 3 years of jail with a $600 fine). Russia is more and more tough concerning cryptocurrency regulation and are putting a lot of pressure on the exchanges.
4. China wants to threaten the USD :
Unlike Russia, China are pretty crypto friendly, particularly with their numerical Yuan. The Chinese government have been pretty discreet on it, but this week a publication by the Central Bank of China brought more clarity: it confirms that the digital yuan’s mission is to threaten the hegemony of the dollar. Indeed they used words like " new battlefield", or "break the USD monopole", their objective is clear : be the first country to propose a functional numerical currency.
The release date is not yet confirmed but the tests are pretty encouraging, last month they even added hardware wallet for the numerical Yuan. China plan to get ahead with numerical Yuan's development, indeed the USA don't plan to develop a numerical version of the USD yet as a result they might be late and China could benefit from this possible situation.