Osunkoya is due to be sentenced for running at least 11 crypto ATMs without Financial Conduct Authority (FCA) registration, which is the UK’s main financial regulator. He operated them between December 2021 and September 2023. For this offence, Osunkoya stands to face a prison term of up to two years.

The press release by the FCA revealed that the ATMs processed over ￡2.6 million ($3.5 million), generating profits of up to 60 percent per transaction. It also added that there are currently no legal crypto ATM operators in the country.

Osunkoya’s unlawful operation

Osunkoya continued the expansion of his ATM network despite being denied registration in 2021. It was found that Osunkoya used a false identity to bypass regulatory scrutiny.

He placed the ATMs in local shops and did not conduct customer verification, which raised concerns that the machines were used for money laundering and tax evasion. Additional charges include forgery, counterfeiting, and possession of criminal property.

Osunkoya is suspected to have made substantial profits from the illegal operation. He could face up to 14 years in prison for these charges.

This case marks a significant moment in the FCA’s efforts to crackdown on illegal crypto operations in the country. FCA’s Joint Executive Director of Enforcement, Therese Chambers, said that using unlicenced crypto ATMs puts users at risk of dealing with criminal enterprises.

She also voiced concern over cryptocurrencies remaining unregulated in the country and carrying financial risks for investors.

Sentencing for Osunkoya’s offences will be held at Southwark Crown Court, with a date that is yet to be determined.

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Unique diversifier

The report comes as investors are finding ways around Bitcoin’s volatile and unpredictable nature. Moreover, the report, called ‘Bitcoin: A Unique Diversifier,’ shows that it behaves differently than traditional risk assets. It also finds that the digital asset is difficult to analyze with traditional economic frameworks.

The report argues that Bitcoin’s distinctive features, like the distributed nature and fixed number, set it apart from other conventional financial assets.

In the short term, Bitcoin prices correlate with other established markers like the S&P 500, but they often rally higher than others over time. Finding that the cryptocurrency shows volatility but remains mostly unaffected by other financial markets in the long term. The report analyses this pattern as an instance of “fundamentals eventually prevailing over short-term leveraged trading reactions.”

An instance of this was marked when bitcoin rose 22 percent since 5 August, while the Yen remained unmoved, and gold and the S&P 500 were up about 11 percent. This highlights that Bitcoin may be exclusive of regular market changes.

Bitcoin relatively safer

Bitcoin is decentralised, open-sourced, detached from traditional currencies, and major geopolitical risks. This makes the digital asset a relatively safer investment, similar to gold, amid political and economic instability. Robert Mitchnick, BlackRock’s head of digital assets and one of the authors of the report, said, “When we think about Bitcoin, we think about primarily as an emerging global monetary alternative.”

Bitcoin does not correlate to the value of the US dollar. This, as concerns over the US national debt rise, makes the digital asset an attractive alternative reserve asset. It can therefore help investors diversify their portfolios, the report claims.

Another key observation in the report is that a large number of Bitcoin holders are profitable. Data shows that the majority of investors who have held investments in the cryptocurrency for three years or more are currently experiencing profits.

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According to CryptoQuant data, while countries like the US are continually challenging China’s dominance by increasing their share of hashrate, the country’s significant presence in Bitcoin mining persists.

The US mining pools account for approximately 40 percent of the global Bitcoin network’s hashrate, as noted by CryptoQuant CEO Ki Young Ju. Representing a large part of this group are institutional miners, who leverage advanced technology and resources to maintain their competitive edge.

Contrary to the US, Chinese mining pools support smaller players in the region, demonstrating resilience despite the legal restrictions on crypto mining and trading.

China’s stance on Crypto

China currently has the strictest stance on crypto globally. In 2017, the country took the first official action against the industry by banning Initial Coin Offerings (ICOs) and shutting down domestic exchanges. Following this was the 2021 ban on crypto activities like mining and trading. The measure was implemented to reduce financial risks and manage the flow of money in the system.

The latest restriction aimed to crackdown on the financial and environmental risks associated with digital assets. However, the miners have found ways around the restrictions thanks to the decentralised nature of Bitcoin. Therefore, maintaining China’s continued control and influence over the global Bitcoin network.

Moreover, underground crypto trading markets are flourishing in the country through the use of VPNs and social media platforms, with estimates of the annual volume of crypto transactions in China at about $86 billion.

Apart from the country’s stance on crypto, it has explored alternatives like the digital yuan, a central bank digital currency (CBDC) controlled by the People’s Bank of China (PBoC).? The digital yuan falls under the country’s broader strategy to maintain financial control over the digital currency while limiting the influence of decentralised cryptocurrencies like Bitcoin.

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Harris, speaking at a recent campaign, said she would recommit the United States “to global leadership in the sectors that will define the next century… remain dominant in AI and quantum computing, blockchain and other emerging technologies.”

At a New York fundraising event held on 22 September, Harris said she wanted to “invest in America’s competitiveness.”

Mentioning crypto for the first time, she said, “We will encourage innovative technologies like AI and digital assets while protecting our consumers and investors.” She said that her campaign is conducting outreach to the industry.

This marks a turnaround from the Biden administration, where the White House has been leading a crackdown on crypto firms in recent years. Recent clampdowns include Sam Bankman-Fried, the founder and CEO of FTX, receiving 25 years in jail for fraud and Binance’s Changpeng Zhao getting four months in prison and the company paying a hefty fine.

However, the digital assets were mentioned only briefly in her 80-page economic plan.

Reactions to Harris’ statements

Venture capitalist Adam Cochran termed her statements as “progress,” adding that “she is very much interested in US financial dominance and US tech supremacy.” He further said that Harris doesn’t stand to gain much from the crypto crowd by promoting it anymore at this stage.

However, some do not believe in what Harris has to say. Skeptics believe that she could reverse this course after she got elected and continue to crack down on crypto like the Biden administration.

Her latest comments on the industry have altered the rating given by the Coinbase-backed crypto collective ahead of the 2024 US presidential election. She had received a B rating for her recent comments about the industry, which were changed to N/A because she has yet to unveil her policy on digital assets officially.

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Caroline Ellison’s role in FTX fraud

Caroline Ellison was a central figure in the rise and fall of FTX, a cryptocurrency exchange that once held a valuation of $32 billion. As the CEO of Alameda Research, Ellison was at the heart of FTX’s financial operations, closely tied to Sam Bankman-Fried, the founder of FTX.

FTX, founded in 2019, quickly ascended to become the third-largest cryptocurrency exchange in the world. In just two years, FTX went from a small startup to a major player in the crypto space, turning its founder into a billionaire and business celebrity.

In 2022, rumours began to swirl about financial troubles at FTX. A sudden surge in withdrawal requests from users sparked a liquidity crisis that the company was unable to manage. Within days, FTX collapsed, and investigations revealed that billions of dollars in customer funds had been funnelled into risky investments by Alameda Research. Ellison’s involvement in the fraud stemmed from her position at Alameda, where she and others were directed by Bankman-Fried to use FTX customer deposits for trading and investment purposes.

Caroline Ellison was charged with multiple counts of wire fraud, conspiracy to commit fraud, and money laundering. Facing up to 110 years in prison, Ellison chose to cooperate with authorities in exchange for a reduced sentence. Her testimony was instrumental in building the case against Sam Bankman-Fried, who was sentenced to 25 years for his role in the fraud.

Ellison’s apology to FTX victims

In court, Ellison expressed deep remorse for her actions, stating, “On some level, my brain can’t even comprehend the scale of the harm that I caused.” Ellison’s plea deal played a crucial role in reducing her sentence. By cooperating with prosecutors and providing invaluable information about the inner workings of FTX and Alameda, she was able to avoid a much harsher penalty.

As part of her sentence, Ellison was ordered to forfeit roughly $11 billion that she earned from FTX. This massive forfeiture reflects the scale of the fraud, though it remains to be seen how much restitution she may ultimately be required to pay. The collapse of FTX has sent shockwaves through the cryptocurrency industry, shaking investor confidence and leading to increased scrutiny of other exchanges.

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However, this concept is only in its infancy and hasn’t yet been widely adopted. For it to become popular in the UK, casinos based in the country would first have to start accepting cryptocurrency. Kane Pepi, who writes expert ratings for non-Gamstop casinos, states that crypto banking is not currently offered by any casino regulated by the UK Gambling Commission (UKGC). He also claims that this fact is unlikely to change in the future.

On the other hand, non-Gamstop casinos – i.e., casinos that can be used while a player is signed up for the Gamstop self-exclusion programme – already widely accept cryptocurrencies. These sites operate offshore, meaning they don’t need to abide by UKGC regulations, which is why they’ve been quicker in adopting crypto. Will offshore casinos bring metaverse casinos into the mainstream?

What are metaverse casinos??

Metaverse casinos are virtual gambling facilities found in metaverse worlds such as Sandbox and Decentraland. Plots of land within these worlds have recently been bought by online casinos with the intent of constructing virtual casinos. When you put on a VR helmet and enter the Sandbox, you can visit these virtual casinos. VR and augmented reality combine to give you a realistic impression of entering a brick-and-mortar casino.

Once you enter, you can explore the casino’s interior, just as you would in real life. You can walk past the casino’s selection of slot and table games, interact with other visitors, and generally soak up the casino atmosphere.

As metaverse casinos develop, virtual entertainment events will likely be held within them – just as brick-and-mortar casinos provide live entertainment.

The benefits of metaverse casinos?

Metaverse casinos are an exciting new concept and will likely increase the popularity of online casinos. Already, physical casinos are struggling to compete with the convenience of casino apps. Metaverse casinos come with a whole host of other benefits, which include the following:

Crypto integration

In the metaverse, everything is digitised – including the currency. In these virtual casinos, players deposit and withdraw funds using crypto. They also receive bonuses – such as sign-up bonuses and deposit bonuses – in the form of crypto. Cryptocurrency is the preferred transaction of metaverse casinos due to the quick transaction processes, transparency, and convenience offered.

Security?

Each transaction completed in metaverse casinos is done through blockchain technology and smart contracts. This ensures that each transaction is transparent and encrypted. All exchanges are recorded on the blockchain, meaning that all exchanges are immutable. Plus, players don’t have to enter their bank details or personal information, meaning that hackers have nothing to steal should they infiltrate the system.

Social engagement

Within the virtual casino, gamers can walk right up to other players and interact with them. This creates a convincingly life-like casino experience. While standard online casinos come with chat rooms, they are incomparable to the socialisation opportunities found in metaverse casinos.

Will metaverse casinos become more widespread soon??

As mentioned above, metaverse casinos haven’t yet taken off. This is partially because mainstream online casinos have yet to accept crypto as a payment means. For metaverse casinos to work, cryptocurrency is needed for deposits and withdrawals. UK-based casinos would have to first start accepting Bitcoin and Ethereum before offering metaverse functionality.

However, as non-Gamstop and other offshore casinos become more popular, crypto gambling and metaverse casinos will become more widespread as a result.

Another aspect that’s holding metaverse casinos back is the limited adoption of VR. When they were first released, VR helmets were expensive and out of most iGamers’ budget. As the years have passed, helmets have gradually fallen in price. Soon, they’ll be more affordable, which won’t only boost metaverse gambling but also metaverse gaming at large.

The VR headset market is expected to grow at a CAGR of 30.6 percent between 2023 and 2030. This suggests that they’re expected to become more popular in the coming years.

Once the above conditions are met, metaverse casinos could well take over as the leading casino option for gamblers.

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US Securities and Exchange Commission (SEC) Chair Gary Gensler said, “Investing public around the globe has lost too much money” because of crypto companies not following the laws his agency aims to enforce.

This comes as the crypto industry is trying to influence the outcome of November’s US elections by spending millions of dollars on political donations, hoping for more favourable future laws for the sector.

As the elections near, the crypto industry is trying to help elect lawmakers who will be more supportive of the industry. A report finds that by last month, the sector had spent $119 million on donations.

Trump’s proactive stance

Donald Trump has taken a more proactive approach towards cryptocurrency as he launched a business called World Liberty Financial, saying, “I think crypto is one of those things we have to do.”

This marks a turnaround from three years ago, when he said Bitcoin seemed like a “scam” and a threat to the US dollar. It is also in stark contrast to the Biden administration, where the White House has been leading a crackdown on crypto firms in recent years.

Recent clampdowns include Sam Bankman-Fried, the founder and CEO of FTX, receiving 25 years in jail for fraud and Binance’s Changpeng Zhao getting four months in prison and the company paying a hefty fine.

Harris’ neutrality

Harris has not been very vocal about crypto, but one of her advisors said she would “support policies that ensure that emerging technologies, and that sort of industry, can continue to grow.”

A hope of brighter future for the industry is what the recent meetings between her team and the crypto business executives are trying to establish.

Paul Grewal, chief legal officer at crypto firm Coinbase, who has been at these meetings, said, “I can’t underscore enough how important this is, not just for the US, but for the world.

“Not only is the US an important market for crypto, but so much of the important technology surrounding has been developed here. And I think it’s also critically important that we not lose sight of the fact that the rest of the world is not simply waiting for the US to get its act together.”

He adds that given how tight the presidential election’s race, “every vote is going to count, and crypto votes are no exception.”

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Blockchain RPC service

Google Cloud’s blockchain RPC service offers developers a new way to interact with blockchain networks using Google’s robust cloud infrastructure. Designed to be fast, reliable, and scalable, this service allows developers to make API calls and integrate blockchain data into their Ethereum-based DApps with just a single line of code.

Blockchain RPC acts as a middleman between blockchain nodes and DApps. It enables applications to interact with a blockchain without having to manage or run full nodes themselves. For developers, RPCs are the backbone of any DApp. Without them, applications wouldn’t be able to interact with the blockchain to retrieve or update information. During peak usage times, such as token claims or NFT drops, DApps often struggle with network congestion, causing delays and even service outages.

Google Cloud’s blockchain RPC service is designed to address these common issues by leveraging Google’s large-scale infrastructure. With Google’s reputation for reliability and performance, developers can trust that their blockchain applications will run smoothly even during high-demand periods.

Important features

The free version of Google Cloud’s blockchain RPC service supports up to 100 requests per second and 1 million requests per day. This is more than enough for most small to medium-sized projects. One of the standout features of Google Cloud’s blockchain RPC service is its scalability. As blockchain-based applications grow in popularity, the ability to scale quickly and efficiently is critical.

Google Cloud’s blockchain RPC service supports Ethereum’s mainnet and testnets. By supporting the Ethereum JSON-RPC standard, Google Cloud makes it easier for developers to integrate the service into their existing projects with minimal adjustments. It brings world-class infrastructure to the Web3 space, offering developers access to one of the most reliable and secure cloud platforms globally.

As the Web3 ecosystem continues to evolve, Google Cloud is well-positioned to become a key player in this new frontier. With its blockchain RPC service, Google Cloud is not only providing essential tools for developers but also signalling its commitment to the decentralised future of the internet.

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Bhutan currently holds 13.047k BTC worth $782.10 million at the time of writing. The country holds more than double the crypto that El Salvador, a pro-Bitcoin nation. El Salvador commands about $350 million in the leading digital cryptocurrency.

Bhutan has an estimated gross domestic product (GDP) of $3.11 billion, according to data from the International Monetary Fund (IMF). This implies about under a third of Bhutan’s GDP in Bitcoin.
In addition, the Himalayan kingdom of Bhutan holds about 656.013 in Ethereum (ETH) worth $1.52 million.

Bhutan’s 2023 wave of bitcoin mining

Bhutan has not derived its Bitcoin from law enforcement asset seizures, which is commonly undertaken by most governments. The country has substantially ramped up its crypto mining operations for Bitcoin since 2023. These mining operations are overseen by the country’s investment arm Druk Holdings.

The Himalayan kingdom has constructed Bitcoin mining facilities in various locations across the country. Its largest facility is on the site of now-disused Education City Project. While the country has substantially increased its mining efforts in 2023, the ventures date back to 2019 when Bitcoin was less than $10,000.

Last year, Bhutan had teamed up with Singapore-based mining firm Bitdeer Technologies Group to develop a 600-megawatt mining farm for Bitcoin by 2025. The move into crypto mining, comes as the kingdom works to recover from the COVID-19 pandemic. Bhutan’s economy contracted by 10 percent in 2020.

In May of last year, Bitdeer had also partnered with Druk Holding & Investments to develop a 100% carbon-free digital asset mining operation in Bhutan.

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Protecting players

The Australian gambling industry has recently experienced a wave of significant reforms. One of the first major changes was the introduction of mandatory pre-verification for all customers on online gambling platforms. Additionally, the government has replaced the familiar “Gamble Responsibly” slogan in betting ads with more impactful, evidence-based warnings designed to better address the risks of gambling. In August 2023, the government launched the BetStop initiative, a nationwide self-exclusion registry aimed at protecting vulnerable individuals from gambling harm. Currently, lawmakers are also considering a potential ban on gambling advertising.

The ban on using cryptocurrency and credit cards for online gambling is part of this broader strategy aimed at preventing individuals from wagering money they do not possess, thereby mitigating the risk of financial harm.

Minister for Social Services Amanda Rishworth highlighted that this nationwide ban represents a critical measure in addressing the adverse effects of online gambling. By enforcing these regulations, Australians are restricted to gambling only with funds they already have. “As a result, minimum deposit online casinos have become more appealing, given that they accept initial deposits as low as $1,” explained GambleOnlineAustralia.com.

Inconsistent consumer protection across the industry

However, the ban on credit card and cryptocurrency payments does not apply to online lotteries and keno, creating inconsistencies in consumer protection across different forms of gambling. Kai Cantwell, CEO of Responsible Wagering Australia, expressed concerns that the exemption might drive players toward less-regulated gambling options, undermining the government’s efforts to control the industry.

The government provided a six-month transition period for operators to adapt to the new regulations, with the Communications Regulatory Authority overseeing the implementation. Companies that fail to comply with the ban face fines of up to $157.000.

Offshore casinos unaffected by the ban

The ban does not extend to offshore online casinos, which are beyond the reach of Australian regulation. With the global rise of cryptocurrencies and the decline of the US dollar, many countries have increasingly accepted cryptocurrencies as a payment method. This includes nations such as the United States, the United Kingdom, Canada, Norway, and New Zealand, all of which permit the use of cryptocurrencies in online gambling.

In the United States, cryptocurrencies are legal and widely accepted by businesses for various transactions. However, their use in online gambling is subject to state-specific regulations. Additionally, many offshore cryptocurrency casinos operating in the US lack Know Your Customer (KYC) protocols, resulting in anonymous transactions.

In contrast, the United Kingdom has a well-regulated gambling market that permits the use of cryptocurrencies. The UK Gambling Commission (UKGC) mandates that all cryptocurrency casinos adhere to KYC requirements for their customers. Furthermore, the UKGC ensures that all licensed operators incorporate anti-money laundering provisions into their terms and conditions.

While Australia imposes strict rules on domestic online gambling, Australian players can still use cryptocurrencies to gamble at offshore casinos, as the ban only applies to platforms registered within Australia.

The industry reaction

The ban on cryptocurrency and credit card payments has ignited debate among stakeholders in the gambling industry. Critics argue that the ban could lead to several significant consequences for the sector:

– Reduced access and convenience: The ban may force players to switch to traditional banking methods, potentially reducing their access to and convenience of gambling.

– Shift to unregulated platforms: Australian players who find the ban restrictive may turn to unregulated or offshore casinos, which could expose them to higher security and financial risks.

– Decreased competitiveness and innovation: The ban could hinder the development of the gambling industry in Australia, putting local operators at a disadvantage and limiting their investment in new payment and gaming technologies.

Despite this ban, Australia remains a crypto-friendly country. According to Statista, 25.6% of Australians own cryptocurrency, placing the country ninth globally in crypto adoption.

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