Sam Altman’s controversial Worldcoin project is no longer under investigation in Kenya. An official notice issued by the Directorate of Criminal Investigations (DCI) in Kenya has claimed that an array of allegations related to Worldcoin’s user data collection were ‘expeditiously and objectively’ investigated. The file of this case has now been shut with the police being directed to take no further action against the Web3 project. As per Worldcoin’s official page, there are over 5.7 million unique humans on Worldcoin as of Thursday, June 20.

Kenya Lacks Reasoning Over Worldcoin’s Probe Suspension

Kenya’s decision comes across as abrupt because the DCI has not exactly given a reason why investigation on Worldcoin is being brought to a halt. The final decision was taken by Renson M. Ingonga, Kenya’s Director of Public Prosecutions (DPP) who has been serving as the chair since September 2023.

As per DCI’s notice, “the resultant investigation file was forwarded to the Office of the Director of Public Prosecutions for an independent review and advice. Upon review of the file, the Director of Public Prosecutions concurred and directed that the file be closed with no further police action.”

Screenshots of DCI’s notice are circulating on social media.

Kenya was the first country in the world to have dragged Worldcoin under the investigative scanner last year. The project aims to provide blockchain-based universal proof-of-personhood to humans called ‘World IDs’. By giving this unique identity to humans, Worldcoin aims to eliminate the need for humans to give their personal details to interact with bots and the web.

As a mark of human identity, Worldcoin officials were collecting eye scans through an in-house device called the Orb – which raised concerns around user data privacy in many countries. What remains unclear for now is if Kenya has given a green flag to Worldcoin operations by shutting probe over it. This may impact the ongoing investigations into the project in other nations like South Korea, Germany, and Brazil. The project had faced scrutiny in India also last year and had to halt its iris scanning process.

Kenya releases instructions for WorldCoin

Kenyan authorities have decided to officially invite Worlcoin to register legally in the country. Registering with the Registrar of Business registry along with obtaining licences from the Office of the Data Protection Commission (ODPC) and the Communication Authority of Kenya (CAK) have been listed as immediate steps Kenya has instructed the Worldcoin team to take.

As per a CoinTelegraph report, Tools for Humanity, the foundation behind the Worldcoin initiative, is glad about this development.

“This welcome result is, however, not an end but a beginning. We will continue working with the government of Kenya and others and we hope to resume World ID registration across the country soon,” the report quoted Thomas Scott, chief legal officer at the Tools for Humanity as commenting on the development.

Central Bank Digital Currencies, or CBDCs, are picking up the pace in several nations around the world, and Iran is one of them. In the coming days, the country will gradually be deploying its ‘digital rial’ virtual currency into a public pilot phase. The Central Bank of Iran (CBI) is spearheading the trial phase for the digital rial. As part of this phase, the digital currency will be issued to banking users, as well as to tourists visiting the Kish Island to facilitate digital payments.

The digital rial pilot will be implemented June 21, an official release from the CBI said. For now, the trial will remain limited to the Kish Island.

“By scanning the barcode generated by the provided software, make your purchases with new methods or transfer money to the wallets of other customers,” the release said (translated from Persian).

CBDCs like the digital rial are blockchain-supported digital representations of fiat currencies, that let users process quick online payments. The use of CBDCs can result in the reduction of the dependence of central banks on cash notes, while also logging a permanent trail of the transaction history on the blockchain network.

As per the CBI, the digital rial will not require interbank settlements to facilitate fund transfer between the buyer and the seller. Instead, the funds will instantly be made available to the seller as soon as the purchase operation is completed.

“According to the measures taken, the digital rial facilitates the necessary capacities for the development of programmable or programmable money, which will be the driving engine for the formation of new business models, especially in the e-commerce space and the digital economy of the country.” the CBI said in the release.

At present, India is among nations that are in advanced trial phases of their respective CBDCs. In India, the eRupee CBDC is being distributed in the retail ecosystem. Multiple banks are allowing small group of users to convert some of their money into the CBDC and try it for payments through QR codes linked to the accounts of the fund receivers.

China, Japan, the UK, and Russia are all conducting pilot trials of their respective CBDCs. Most recently, Ethiopia has decided to explore the digital currency technology. In fact, back in 2022, Nigeria launched its eNaira CBDC into mainstream adoption.

The crypto industry, currently valued at $2.36 trillion, is attracting entrepreneurs eager to experiment, especially with the emergence of Web3. Coinbase International has decided to step up as a foster for up-and-coming Web3 projects. The exchange, counted among the largest in the world, has announced the launch of its Pre-launch Market initiative. This will serve as a launchpad for upcoming crypto projects. Unlike venture firms that offer help through direct funding, Coinbase has chosen a way to help crypto startups while also bumping up the number of users on its International and Advanced platforms.

Like an Initial Coin Offering, but different

In an Initial Coin Offering (ICO), up and coming Web3 projects supply a bunch of its native crypto tokens for people to purchase as early adopters. This transaction brings funds to starving businesses and offer benefits as well as rewards to their holders.

Meanwhile, with Pre-launch Markets, Coinbase will allow users to trade perpetual futures contracts on the native tokens of eligible crypto projects for similar outcomes, the exchange said in an official post.

“Pre-launch markets significantly differ from standard perpetual futures markets. Pre-launch markets on Coinbase allow users to participate in price discovery for upcoming projects on a trusted and secure platform. When the underlying token is launched on applicable spot exchanges and the market meets our requirements for a standard perpetual future, Coinbase will begin converting the pre-launch market to a standard perpetual future,” the exchange explained.

Coinbase is not launching this feature for all of its customers. Only institutional and retail investors will be able to access this service through Coinbase International and Coinbase Advanced respectively. The exchange has explained that trading on Pre-launch Markets comes with more risks, as unlaunched tokens can be volatile.

“Given the high-risk nature of pre-launch markets, these markets are more prone to lower liquidity, higher volatility and increased liquidation risk. Positions for pre-launch markets will not be assigned to participants of our Liquidity Support Program (LSP). As such, these markets will be at higher risk,” its blog noted.

Rules governing Coinbase’s Pre-Launch Market initiative

The assets listed on Coinbase Pre-Launch Markets will be capped at an initial margin of 50 percent, or twice the leverage. The notional position limit has been capped at $50,000 (roughly Rs. 41.7 lakh) per token.

“It is crucial to exercise caution and refrain from trading contracts that you are unfamiliar with or do not fully understand the associated risks. Coinbase will enforce strict leverage, position limits, and open interest caps on these markets,” its blog added.

The company has also noted that there could be instances where some of these unlaunched tokens may never actually make it to real listings. Under this circumstance it said, “the pre-launch market would not be able to convert into a standard perpetual futures market, and the market may need to be suspended and/or delisted.”

Binance, Bybit, Bitget, and OKX are other exchanges that reportedly offer similar services for upcoming crypto projects.

The crypto sector, after seeing a massive upswing in March this year, has found itself rather stagnated for over a month now. In light of the current volatile market conditions, one of Dogecoin’s developers who goes by the name of Mishaboar has sounded an alert to the crypto community. He has released a warning asking the investor community to gauge the risks of investing in crypto assets before making any final decision. In the long run, Mishaboar hopes that members of the investor community do not get burnt out with unresearched or impulsive investments.

The Dogecoin developer, in his post on X, refers to crypto investing as ‘educated gambling’. He has expressed his fear that investors who are losing sleep over their crypto investments – may have been overexposed to the sector.

“Crypto is extremely volatile and risky. Do not gamble with more than you can afford to lose,” said Mishaboar on June 16.

At present, over 2.4 million cryptocurrencies are circulating in the market. The current valuation of the crypto sector stands at $2.42 trillion (roughly Rs. 2,02,14,054 crore), showed CoinMarketCap.

Not just individual investors, but multiple firms including several from the Fortune 500 group are now engaging with cryptocurrencies. This kind of support from institutional investors can give individual investors a push to test their fate with crypto assets, sometimes without proper research.

Mishaboar noted that crypto criminals are on the rise, hunting for potential victims.

“The biggest risk for newbies, next to leverage trading, comes from trading coins and tokens without understanding the risk/reward ratio. And without realising that this space is mostly filled with grifters, criminals and peddlers,” his post added.

The prices of cryptocurrencies change on a daily basis, owing to the variations in the macro-economic conditions. On Monday, May 17 Bitcoin and Ether were trading at $66,426 (roughly Rs. 55.4 lakh) and $3,232 (roughly Rs. 2.70 lakh) respectively.

Dogecoin itself recorded a price drop of 2.08 percent to trade at $0.13 (roughly Rs. 11.10) on June 17. In the coming days, the DOGE developer plans on updating ‘newbies’ in the crypto space with crypto price observations.

The authorities in Malaysia are said to be cracking down on crypto tax evaders. As part of a special investigation codenamed ‘Ops Token’, officials from the Malaysian federal agency Inland Revenue Board (IRB) reportedly conducted raids at multiple locations having identified firms that were not reporting their crypto-related engagements. Through these taxes, the Malaysian administration much like India, is trying to maintain a trail of crypto-related financial transactions which otherwise are largely anonymous and could be exploited for unlawful activities.

The IRB is said to have joined forces with the Royal Malaysia Police as well as with CyberSecurity Malaysia (CSM) to identify tax evaders. A team of 38 security personnel were part of the team that conducted raids across ten locations situated in the Klang Valley, a report from The Malaysian Reserve said over the weekend.

In Malaysia, cryptocurrencies are said to be categorised as securities. While cryptocurrencies are not considered as payment options, their trading is allowed in Malaysia. Crypto-related businesses functioning in the country however, do fall under the nation’s tax regime.

As per Statista, Malaysia’s cryptocurrency market is projected to reach the valuation of $306.6 million (roughly Rs. 2,556 crore) in revenue by the end of 2024. Statista also estimates that currently three million Malaysian residents are active in the crypto space.

The authorities there are trying to curb cases of tax evasion in the nation overall. In March, the Malaysian Prime Minister Datuk Seri Anwar Ibrahim reportedly instructed the authorities to clampdown on tax evaders.

His direction to conduct audits of crypto-engaged companies and take action against the defaulters came after Malaysia reportedly lost RM 6.34 billion or $1.3 billion (roughly Rs. 11,222 crore) to tax evasion.

In Malaysia, the punishment for evading taxes can be a penalty of up to RM 20,000 0r $4,237.74 (roughly Rs. 3.53 lakh) as well as up to six months in prison.

Previously, Malaysia had cracked down on crypto miners in order to prevent electricity being stolen for mining operations.

Bitcoin has been trading sideways for days, with the value of the popular cryptocurrency remaining under the $70,000 (roughly Rs. 58.4 lakh) mark. On Thursday, the value of the world’s most widely used digital asset grew by 0.66 percent. On international exchanges like CoinMarketCap and Coinbase, Bitcoin is currently trading at $68,105 (roughly Rs. 56.8 lakh) and remains subject to fluctuation. On the other hand, Bitcoin is now worth around $72,005 (roughly Rs. 60 lakh) on Indian exchanges like WazirX and CoinDCX.

“In the last 24 hours, the crypto market experienced volatility following the release of US Consumer Price Index (CPI) data, which came in lower than expected. This initially led to a market pump, but prices soon retraced after the FOMC announcement that the Fed’s fund rate would remain constant. For BTC, holding above the $67,000 level (roughly Rs. 55.9 lakh) is crucial to maintain the uptrend,” the CoinDCX markets desk told Gadgets360.

Ether price increased by 0.30 percent over the last 24 hours. As per CoinMarketCap, Ether is trading at $3,509 (roughly Rs. 2.93 lakh) on foreign exchanges, and $3,112 (roughly Rs. 2.6 lakh) on exchanges in India.

“Despite the imminent launch of Ether’s spot exchange-traded funds (ETFs) in the US, the price has remained below $3,750 (roughly Rs. 3.13 lakh) for the past three days. Some attribute ETH’s lack of bullish momentum to the uncertainty surrounding the timeline for the individual S-1 fund filing approvals by the regulator. As indicated by derivatives metrics, Ether investors’ optimism has dropped to its lowest point in three weeks,” the ZebPay Trade Desk told Gadgets360. “ETH has a strong support at $3,450 (roughly Rs. 2.88 lakh) whereas $3,700 (roughly Rs. 3.09 lakh) will now act as a resistance for the asset.”

Some altcoins also joined BTC and ETH on the profit-making side of the crypto chart on Thursday. These include Binance Coin, Solana, USD Coin, Ripple, and Cardano.

Similarly, the prices of Avalanche, Shiba Inu, Polkadot, Chainlink, Near Protocol, Polygon, and Litecoin also rose on Thursday.

Only a handful of cryptocurrencies that recorded losses, such as Tether, Dogecoin, Tron, Leo, Braintrust, and Circuits of Value marked their names, as per the crypto price tracker by Gadgets360.

The overall crypto market cap rose by 1.40 percent over the last 24 hours. As per CoinMarketCap, the present valuation of the crypto sector currently stands at $2.47 trillion (roughly Rs. 2,06,31,292 crore). At present, Bitcoin’s dominance over the crypto sector valuation is at 54.2 percent. Ether commands 17.2 percent market dominance leaving the rest to other altcoins.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article. 

Crypto trading has become an addictive habit among the younger population of the UK, according to National Health Service (NHS) Chief Executive Amanda Pritchard, who has sounded the alarm on the rising cases of crypto trading addiction. Pritchard has called for intervention from the UK lawmakers, flagging the risks associated with cryptocurrency trading addiction. In recent months, UK Prime Minister Rishi Sunak’s administration has taken multiple crypto-friendly steps in order to project the nation as a lucrative location for Web3 businesses.

The comments on the rise in crypto trading addiction were made earlier this week, when Pritchard was speaking at the ConfedExpo of NHS managers in Manchester. The NHS chief executive said that there was a rise in the number of crypto investors who are addicted to volatile and financially unstable crypto trading activities.

“As a society we need to ask: are we okay to just continue picking up the pieces while the methods employed to keep people hooked get ever-more sophisticated, and ever-more opportunities spring up for younger people to get addicted to gambling, including unregulated cryptocurrency,” Pritchard said in her speech, recalling what she was informed when she visited the national problem gambling clinic earlier this year.

Statista estimates that 17 million people in the UK — 26 percent of the country’s population — owned or used cryptocurrencies as of December 2023. In the next four years leading up to 2028, the number of crypto users is likely to cross the 22 million mark. The UK is expected to fetch $2.5 billion (roughly Rs. 20,886 crore) in revenue from the crypto market by the end of this year.

The NHS chief also warned that if the rising cases of crypto-related gambling are not controlled in time, they could pose a risk to members of UK’s crypto community and the financial stability of the country.

The UK has been trying to protect unaware and uninformed people from volatile crypto trading. For instance, UK lawmakers have restricted crypto-related businesses from displaying promotional advertisements to lure customers on to their platforms. The UK treasury has invited public opinions around crypto-related risks and opportunities.

The UK has also opened discussions with India on handling risks and vulnerabilities associated to crypto assets.

The Times quotes Pritchard as saying that that people in the UK are investing their money in volatile assets and it falls to the NHS to “pick up the pieces”.

“This growing problem could create further demand for the health service. Will we tackle problems at source, or do we accept the NHS becomes an expensive safety net?” Pritchard was quoted as saying while urging the authorities to keep taking action to control these financially risky decisions by UK citizens.

In 2023, a rehabilitation centre in Spain had opened a programme for people who were addicted to cryptocurrency tradnin. For up to $75,000 (roughly Rs. 61 lakh), the rehab facility said it would treat ‘addicts’ of crypto trading with massages, yoga, and therapy for as long as four weeks.

MiCA — or Markets in Crypto Assets — technical standards have been published by the European Banking Authority (EBA) on Thursday. Ahead of the upcoming July deadline, the EBA has published a detailed set of guidelines around technical standards that Web3 firms operating in the region will soon be mandated to adhere to. The aim is to ensure that the Web3 sector in the EU is safe, both financially as well as technically. The European Union (EU), last year, became one of the first regions in the world to regulate the crypto and Web3 sector with its MiCA regulations.

In January 2023, the EU had said that it could take up to eighteen months for the EBA to provide guidelines on the technical standards for MiCA regulations – a task that now stands completed before the estimated deadline.

MiCA regulations published by the EBA: What’s new

The EBA has addressed a number of issues in its final draft of technical standards for MiCA, including those related to liquidity requirements, stress testing programme, asset reserves, and recovery plans, the EBA wrote in its official announcement.

Regulatory oversight on asset-referenced tokens (ARTs) and e-money tokens (EMTs) are also part of the EBA’s guidelines. While ARTs maintain a stable value by being linked to other assets or fiat currencies, EMTs are digital representations of traditional fiat currencies. CBDCs (central bank digital currencies) are part of the EMT category of crypto assets.

“These standards specify the criteria for the assessment of higher degree of risk and a minimum set of requirements for the design and implementation of their stress-testing programmes,” the EBA said on Thursday. It has also spelled out the procedure for authorities to determine the timeline of 25 working days for token issuers to increase and manage their own funds, eliminating risks for the holders of their tokens.

Token issuers within the EU have also been directed to adjust their own funds to three percent of the average reserve of their significant assets. Furthermore, the EBA has identified that crypto assets backed by real estate or commodities can be seen as highly valuable tools for liquidity.

The EBA joined forces with the European Securities and Markets Authority (ESMA) to work on these guidelines that makes the MiCA regulation more comprehensive.

Both organisations agreed that that recovery plans for Web3 firms need to be properly streamlined to safeguard EU’s investor base in light of the collapse of major crypto projects like FTX and Terra, that had left the sector reeling in 2022.

“These envisage procedures for identifying, measuring and managing liquidity risk, a contingency policy and mitigation tools as well as minimum aspects of liquidity stress testing. Considering the feedback received during the consultation period, the Guidelines further specify the content of the communication and disclosure plan,” the EBA said in its announcement.

About EU’s MiCA regulations

The Markets in Crypto Assets (MiCA) framework was approved by the EU in October 2022 by the European Parliament Committee on Economic and Monetary Affairs (ECON). The legislation entered into force in June 2023.

The aim of this legislation is to ensure consumer protection, prevent market manipulation, and curb financial crimes linked to digital assets in the EU.

“MiCA has been pivotal in setting a harmonised regulatory standard for crypto-assets, issuers, and service providers, focusing on consumer protection, transparency, and market integrity,” the European Blockchain Observatory and Forum (EUBOF) had said, lauding the MiCA regulation in May this year.

Solana Labs has unveiled a blockchain-powered verification platform for brands that offer loyalty programmes. The company behind the popular Solana blockchain has launched ‘Bond’, which is a customer engagement platform that is claimed to be helpful to companies that wish to improve the longevity and security of their customer loyalty initiatives. Bond uses blockchain to create personalised, transparent, and engaging digital experiences, according to Solana Labs.

Solana Labs unveils blockchain-based Bond platform: How it works

Earlier this week, Solana Labs announced the launch of Bond on X (formerly Twitter), stating that it will address critical limitations in the current loyalty programs which includes losing direct relationships with end consumers, sharing private data, risking compromised relationships, and losing strategic control among others.

The blockchain firm says that many brands across industries are trying to refresh their marketing strategies with Web3 elements in an attempt to rope in the interest of younger customers.

Solana says that Bond is able to deliver personalised interactions and digital activations bundled with customer loyalty programmes. The platform will also let brands create an ecosystem on a public blockchain while customising privacy settings for the customer data stored by brands.

“Bond is a technology stack that enables brands to create experiences that strengthen their customers’ allegiance and connection through seamless user-centred design, trusted interactions, and enhanced brand partnerships,” the company’s webpage says.

The sectors of digital collectibles, luxury goods, digital product passports and identities, as well as collaborative campaigns can benefit from this initiative. This platform will be open for use for global brands, according to Solana Labs.

In recent times, brands like Mastercard, Visa, Flipkart, and Lufthansa Airlines are offering loyalty programmes for Web3 and non-Web3 initiatives.

India’s independent Web3 advisory body, the Bharat Web3 Association (BWA), has prepared a message for Nirmala Sitharaman, who returned as the nation’s finance minister for a second term this month. In its message shared with Gadgets360, the BWA said India needs a level playing ground for Web3 startups and businesses to thrive in. At present, India is in the process of deploying regulations to oversee the Web3 sector. The aim is to ensure that India’s crypto circle is safeguarded against the financial risks that volatile digital assets could expose them to.

Web3 needs Government support, BWA says

The BWA, that has a total of 36 members from India’s crypto industry, has been working with the lawmakers to help them draft appropriate rules and regulations to govern over the digital assets sector without hampering its growth.

Now that Sitharaman is back and is expected to present the finalised Union Budget 2024 in the coming days, the BWA has decided to bring the needs of the Web3 sector to her notice.

“The Web3 sector holds immense potential to revolutionise multiple sectors, including finance, governance, and supply chain management while also enhancing transparency and efficiency. Given this, we propose the government to develop a clear regulatory framework for Web3, support virtual digital asset (VDA) providers in their customer focus, and rationalise taxation framework for the digital assets sector,” Dilip Chenoy, the Chairperson of the BWA said in his statement.

The BWA said it is of umpteenth importance that Web3 services get access to the provision of banking services. The advisory body has further urged the government to encourage investment and growth in the Web3 sector. The BWA and its members are concerned that if India delays the creation of a lucrative ecosystem for Web3 to grow in, it could miss out on profitable and technical opportunities as it did during the Web2 era.

India’s current position on Web3

Between 2022 and 2024, India made some milestone decisions on Web3 regulations. Starting July 2021, India brought crypto gains under a tax regime. In India, crypto incomes are taxed by 30 percent whereas one percent TDS is deducted on each crypto transaction. The country has brought the crypto sector under the Prevention of Money Laundering Act, that requires all virtual digital asset providers to collect the KYC details of their customers and report any identified suspicious activity to relevant authorities.

During December 2022 and 2023, India served as the President of the G20 group of nations. As part of its presidency, India worked with the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to draft crypto regulations that would work uniformly on a global level.

Despite India’s gradual approach in whole-heartedly welcoming the Web3 sector as part of its financial and industrial ecosystem, the country has shown remarkable growth in blockchain adoption in 2023, as per a report published by Hashed Emergent, a Web3 venture capital firm focussed on India.

From three percent in 2018, India’s global share of blockchain developer pool, rose significantly to 12 percent last year, the report said. The country also reportedly claimed the top spot for on-chain adoption in 2023 over 150 countries, reflecting over 35 million trading accounts on the top Indian exchanges. The report has predicted that India has a promising future in terms of establishing itself as a leader and early creator of Web3 technologies especially because of its large pool of developers.

While the crypto circle in India is hoping for Sitharaman to cut down on crypto taxes, the finance minister has paid no heed to the sector’s urges so far.