Japan preparing amendment to enforce FATF travel rules on crypto by May 2023: Report

Meeting international Anti-Money Laundering standards is the latest in a series of measures Japan has taken in recent months to improve its cryptocurrency regulation.

Japan is expected to enact new rules on money transfers to prevent the use of crypto for money laundering, according to local news agency Nikkei. The changes will bring Japan up-to-date with Financial Action Task Force (FATF) recommendations.

An amendment to the Act on Prevention of Transfer of Criminal Proceeds will be introduced in the National Diet on Oct. 3 that will add crypto to the so-called travel rules on money transfers, Nikkei reported. The rules will be amended to require exchange operators to collect customer information in transactions involving cryptocurrency and stablecoins — as they already do for cash transactions.

The Foreign Exchange and Foreign Trade Act and the International Terrorist Asset-Freezing Act will be updated to reflect the same changes, which will go into effect in May 2023. The amendment foresees the issuance of “administrative guidance and corrective orders” to exchanges that break the new rules, with criminal penalties for violations of thecorrective orders.

Coming soon… FATF’s country assessment of Japan.#FollowTheMoney #StopMoneyLaundering #AML pic.twitter.com/0tvdWFOcyb

— FATF (@FATFNews) August 27, 2021

The amendment will incorporate into Japanese law recommendations the FATF introduced in 2019 and updated in 2021 for virtual asset service providers. The FATF is an intergovernmental money laundering and terrorist financing watchdog. The agency has had limited success with the adoption of its Travel Rule. According to a report released in April, hardly more than half of the countries surveyed by the FATF had adequate Combating the Financing of Terrorism (CFT) and Anti-Money Laundering (AML) laws and regulations.

Related: After four years, Japan brings back its first crypto ATM

Japan has taken important steps to regulate crypto in recent months. The parliament passed a law to limit the issuance of stablecoins by non-bank institutions in June. In July, the Ministry of Economy, Trade and Industry opened a Web3 Policy Office to foster the Web3 business environment. In addition, there are reports that the Financial Services Agency, the Japanese tax authority, is considering easing the punishing capital gains rates on crypto assets after extensive outcry within the industry.

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Brett Harrison will step down as FTX US president, move into advisory role

The soon-to-be former president said he would continue to assist CEO and founder Sam Bankman-Fried "to ensure FTX ends the year with all its characteristic momentum.”

The president of cryptocurrency exchange FTX US, Brett Harrison, has announced he will be transitioning into an advisory role in the next few months.

In a Sept. 27 announcement on Twitter, Harrison said he will be resigning his position as FTX US president but will remain with the exchange “with the goal of removing technological barriers to full participation in and maturation of global crypto markets, both centralized and decentralized.” Harrison had worked as FTX US president since May 2021 following a job at Citadel Securities.

“I can’t wait to share more about what I’m doing next,” said Harrison. “Until then, I’ll be assisting Sam [Bankman-Fried] and the team with this transition to ensure FTX ends the year with all its characteristic momentum.”

1/ An announcement: I’m stepping down as President of @FTX_Official. Over the next few months I’ll be transferring my responsibilities and moving into an advisory role at the company.

— Brett Harrison (@BrettHarrison88) September 27, 2022

Related: Regulators have a weak case against FTX on deposit insurance

Harrison’s announcement was the latest high-profile resignation in the crypto space. Alex Mashinsky said on Tuesday he would be leaving his position as Celsius CEO effective immediately, citing the “difficult financial circumstances” users were facing. On Sept. 21, Kraken’s Jesse Powell announced chief operating officer Dave Ripley will be replacing him as CEO once Ripley’s position was filled. Powell will stay on with the exchange as a board member. Michael Saylor announced in August that he will step down as the chief executive officer of business intelligence firm MicroStrategy, but remain as executive chair.

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Bitcoin price loses $20K as trader warns US dollar 'not quite topped out'

Bitcoin fails to avoid returning back under $20,000 after local highs prove too much to sustain.

Bitcoin (BTC) crossed under $20,000 after the Sept. 27 Wall Street open as United States equities inched higher.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

U.S. dollar has room to run — trader

Data from Cointelegraph Markets Pro and TradingView confirmed the $20,000 mark barely remaining as tentative support on the day.

BTC/USD had managed local highs of $20,344 on Bitstamp overnight, while retracing U.S. dollar strength gave modest relief to risk assets across the board.

The S&P 500 and Nasdaq Composite Index had been up 0.4% and 0.65%, respectively, after two hours’ trading, but subsequently reversed.

At the same time, the U.S. dollar index (DXY) was down 0.15% on the day, back below the 114 mark but still near its highest since mid-2002.

“U.S. open coming up. Green numbers, while Yields & $DXY are correcting,” Michaël van de Poppe, founder and CEO of trading firm Eight, commented.

“Time for Q4 to be good for crypto.”

Popular trader Crypto Tony nonetheless cautioned on assuming that DXY had put in a major top.

“Bad news for the Bitcoin pump, the Dollar has not quite topped out yet, so we are looking for more pumps on the dollar and setbacks on $BTC,” he decided.

“Keep an eye on both of these if you plan on leveraging BTC.”

U.S. dollar index (DXY) 1-day candle chart. Source: TradingView

Binance BTC/USDT volume hits all-time high

With days to go before the monthly close, further BTC price volatility was expected, while traders demanded that October — traditionally a better month than September for crypto return — deliver the goods in 2022.

Related: More ancient Bitcoin leaves its wallet after 10-year hibernation

“Tracking price action over the past decade, Sept. has far and away been the worst performing month for BTC — closing positive only 20% of the time,” popular trading account Crypto Kaleo observed in a thread on Sept. 26.

“Silver lining — Oct. has been one of the best months for BTC — positive 78% of the time w/ a median gain of 28%.”

A close above $20,000 would be just enough for Bitcoin’s first “green” September since 2016.

BTC/USD monthly returns chart (screenshot). Source: Coinglass

In a sign of what the monthly close might have in store, meanwhile, major exchange Binance recorded its highest-ever daily trading volume for its BTC/USDT pair, with over 439,000 BTC equivalent changing hands.

BTC/USDT 1-day candle chart (Binance) with volume. Source: TradingView

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Crypto-focused MPC developer raises $40M

Multi-party computation, or MPC, is a subset of cryptography that distributes computation across multiple parties.

Multi-party computation (MPC) developer MPCH Labs has concluded a Series A funding round totaling $40 million ahead of the planned launch of its Fraction digital asset operating platform later this year. 

The funding round was led by Liberty City Ventures, the same venture studio that incubated MPCH Labs, with additional participation fro QCP Capital, Global Coin Research, Polygon Studios, Quantstamp, LedgerPrime, Animoca and others. To-date, MPCH Labs has raised $50 million in venture financing.

The funding will be used to further develop MPCH Labs’ first product, Fraction, an operating platform that enables institutions to securely safeguard their digital assets. Fraction utilizes MPCH Labs’ MPC6 engine, which enables multiple parties to compute in the same wallet without compromising their data. According to its developers, MPC6 engine will create a “user-centric toolkit” for both crypto-native and traditional institutions.

According to Cat Le-Huy, MPCH Labs’ chief product officer and co-founder, Fraction was designed to enable wider crypto adoption and will be launched sometime in the fourth quarter of 2022.

"Use of MPC (beyond crypto or even within crypto) is to use MPC for process management," MPCH Labs CEO Miles Parry told Cointelegraph in a written statement. "The policy engine for MPC6 can be used for any purpose where it makes sense to cryptographically bind multi faceted and multi layered approval processes."

The fight for privacy continues, and Web3 gives people the opportunity to take their power back. https://t.co/9PookGP9KN

— Cointelegraph (@Cointelegraph) April 25, 2022

As reported by Cointelegraph, organizations from across the crypto ecosystem have looked to MPC as a means to advance Web3, a broad concept that refers to some future iteration of the internet. Specifically, MPC is being used to build private key security and decentralization within Web3 systems as a way to boost privacy and confidentiality.

Related: Crypto Biz: DID you see what Africa is doing with Web3?

On the topic of venture capital, the crypto bear market has taken the wind out of startup raises in recent months. The blockchain industry generated $1.36 billion worth of venture funding in August, the fourth consecutive monthly decline and the lowest level in a year, according to Cointelegraph Research.

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The British pound collapse and its impact on cryptocurrency: Watch the Market Report

On this week’s episode of The Market Report, Cointelegraph’s resident experts discuss the fall of the British pound and its impact on the cryptocurrency market.

On this week’s The Market Report show, Cointelegraph’s resident experts discuss why the British pound is at its all-time low and how that might impact the cryptocurrency market.

To kick things off, we break down the latest news in the markets this week:

Bitcoin gains 5% to reclaim $20K, eyes first ‘green’ September since 2016

A classic snap of sideways trading action sees Bitcoin’s (BTC) price aim higher, but concerns remain over what happens next. Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it added over 7% after the Sept. 26 close. Local highs of $20,344 appeared on Bitstamp before the pair began consolidating at around $20,200. Can Bitcoin achieve a green monthly close, and will the bulls be able to beat “Septembear?”

Is it Bitcoin’s time to shine? British pound drops to all-time low against the dollar

On Sept. 26, the British pound hit a record low against the United States dollar following the announcement of tax cuts and further debt increases to curb the impact of a possible economic recession. But could the British pound’s weakness be a positive for Bitcoin? Is it possible for the general population to move to cryptocurrencies once it realizes that people’s savings and investments are being devalued more aggressively?

Charles Hoskinson and Ethereum dev get into a war of words post-Vasil upgrade

Charles Hoskinson, founder of Cardano and co-founder of Ethereum, got into a war of words with Ethereum developers on the implementation of the proof-of-stake consensus via the Ethereum Merge. Hoskinson is known for his hot takes on his former project, and the bad blood between the two communities is nothing new. However, with both blockchains undergoing key upgrades on their networks, the recent exchange between the two sides highlights the disconnect between blockchain communities.

Next up is a segment called “Quick Crypto Tips,” which aims to give newcomers to the crypto industry quick and easy tips to get the most out of their experience. This week’s tip: Choosing a long-term coin.

Market expert Marcel Pechman then carefully examines the Bitcoin and Ether (ETH) markets. Are the current market conditions bullish or bearish? What is the outlook for the next few months? Pechman is here to break it down. The experts also go over some market news to bring you up to date on the latest regarding the top two cryptocurrencies.

Lastly, we’ve got insights from Cointelegraph Markets Pro, a platform for crypto traders who want to stay one step ahead of the market. Our analysts use Cointelegraph Markets Pro to identify two altcoins that stood out this week: XRP and Digg.

Do you have a question about a coin or topic not covered here? Don’t worry. Join the YouTube chat room and write your questions there. The person with the most interesting comment or question will be given a one-month subscription to Markets Pro, worth $100.

The Market Report streams live every Tuesday at 12:00 pm ET (4:00 pm UTC), so be sure to head on over to Cointelegraph’s YouTube page and smash those Like and Subscribe buttons for all our future videos and updates.

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Axelar, Mysten Labs partner on cross-chain communication for super DApps

Integration will roll out before the end of 2022, enabling General Message Passing on Sui blockchain.

The proof-of-stake (PoS) blockchain Axelar and the infrastructure company behind Sui blockchain, Mysten Labs, disclosed a partnership on Sept. 27 to deliver cross-chain communication for developers through General Message Passing, aiming to advance the prospect of a "super DApp." Integration is expected to be completed before the end of the year.

The collaboration will enable DApps created in Move — Mysten's programming language — to call any function on any external chain. According to the companies, developers will be able to provide users with the ability to “'tap in' with whatever token, wallet, and blockchain they desire, with no need to bridge or swap to access features." The companies also stated that theuse cases range from incorporating liquidity into Web3 games to leveraging digital assets as collateral for multichain lending and borrowing.

Speaking to Cointelegraph, Sergey Gorbunov, Axelar CEO and co-founder, explained:

"The permissionless, open nature of Web3 gives it an advantage that hasn't yet been tapped. In Web2, super apps are based on monopolies or oligopolies. In Web3, developers can compose at will – but until now, this composability has been constrained within the limits of existing ecosystems. General Message Passing, combined with the power of the Move programming language and the Sui blockchain, gives developers a set of tools unequaled even in Web2."

Cross-chain technology facilitates data interchange among distributed ledger technology (DLT) designs or external systems, thus helping in achieving interoperability, which can improve the security of designs, and boost flexibility and performance. In a nutshell, cross-chain communication eliminates the need for developers to identify the chain with the most users or the most liquidity. 

Gorbunov claimed that the partnership will also accelerate the migration of developers from the Web2 industry to blockchain, as it allows them to connect features to their applications from other blockchains and assets to the Sui network. Web3 development saw unprecedented growth in the crypto space last year, with over 34,000 new developers contributing to code Web3 projects.

The Axelar Network achieved unicorn status in February after closing a $35 million Series B funding round. Participants included Dragonfly Capital, Polychain Capital and North Island Ventures. Its blockchain connects Web3 ecosystems such as Avalanche and Polkadot.

Recently, Mysten Labs announced a $300 million Series B investment round to speed up the adoption of its Sui blockchain ecosystem, a proof-of-stake (PoS) layer-1 blockchain that uses a feature called “transaction parallelization” to achieve high throughput, low latency transactions and low transaction fees.

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Celsius CEO Alex Mashinsky resigns

"I am very sorry about the difficult financial circumstances members of our community are facing," writes Mashinsky.

According to a new press release published on Tuesday, Alex Mashinsky, CEO of troubled crypto lender Celsius Network, has resigned effective immediately. In explaining the decision, Mashinsky wrote: 

"I regret that my continued role as CEO has become an increasing distraction, and I am very sorry about the difficult financial circumstances members of our community are facing. Since the pause, I have worked tirelessly to help the company and its advisors put forward a viable plan for the Company to return coins to creditors in the fairest and most efficient way."

Founded in 2017, Celsius Network was a rising star in the crypto-lending space, surpassing over 1.7 million customers, $25 billion in assets under management, and $850 million in cumulative interest paid earlier this year. However, its fortunes took a drastic turn when the ongoing crypto winter exposed the firm's risky, leveraged trading practices.

As a result, the company halted all consumer withdrawals in June and was left with a balance sheet gap of nearly $2.85 billion. Prominent stakeholders, such as the Quebec Pension Fund, lost almost the entirety of their investment in the company. Even Celsius' co-founder Daniel Leon declared that his equity was "worthless" in court. The firm is currently undergoing bankruptcy proceedings. 

Previously, Mashinsky has tried to revive the company by restructuring it to focus on crypto custody. He also allegedly shared plans to turn its debt into crypto and airdrop them to creditors. After Celsius' collapse, rumors circulated that Mashinsky tried to flee the United States, which he denied. Mashinsky was voted #63 on Cointelegraph's Top 100 People in Crypto and Blockchain list last year. 

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