Author: Staff

In a development that many expected, former CEO Sam Bankman-Fried officially pleads not guilty in the FTX fraud case. The Tuesday hearing has seen the disgraced founders’ official plea to criminal charges by United States prosecutors of fraud and conspiracy.

Bankman-Fried is accused of utilizing customer assets from his now-bankrupt crypto exchange platform to fund bets through hedge fund Alameda Research. Moreover, his not-guilty plea differs from the action taken by Alameda CEO Caroline Ellison, and fellow FTX founder Gary Wang.

There hasn’t been a scandal on the scale of FTX in the relatively brief history of the cryptocurrency sector. Formerly one of the biggest and most well-known cryptocurrency exchange platforms, it is now insolvent and its executive team has been indicted on fraud-related charges.

There was once a time when FTX represented a guiding light for the entire market. As the year presented unheard-of challenges, it was Sam Bankman-Fried and the company were the figureheads for a way forward. Yet, today is the Seminole day that marks Sam Bankman-Fried’s plea of not guilty in the high-profile fraud case.

The plea that took place before United States District Judge Lewis Kaplan of Manhattan did not come as a surprise. It followed reports from Reuters that initially stated the not guilty plea as a possibility.

Concluding the hearing on January 4th, a trial date was set for October 2nd, 2023. Conversely, his plea of not guilty is one that is able to be changed at a later date, should he so choose.

The former crypto wunderkind is charged with two counts of wire fraud and six counts of conspiracy. Moreover, these include conspiracy to launder money and commit campaign finance violations. Bankman-Fried could spend up to 115 years in jail if found guilty.

The latest hearing followed Bankman-Fried’s previous release on a $250 million bond after his extradition from Bahamian custody. Currently located in his parents’ California home, Bankman-Fried was held in the infamous Bahamas Fox Hill prison for eight days prior to his extradition.

The European Union (EU) recently granted the Nigerian cryptocurrency exchange platform, Roqqu a virtual currency license, allowing it to provide its services to customers in 28 European nations. The license allows Roqqu users, including non-Nigerians, to trade digital currencies as well as to participate in the non-fungible token (NFT) market.

According to their statement, the crypto exchange’s EU license means Roqqu is one of the first digital asset exchange platforms from Africa to expand into Europe. The Nigerian crypto exchange also shared a few reasons which influenced its decision to seek a Eurozone license.

The company’s statement read, “In our research, we found that Europe needs to catch up in terms of its global average of cryptocurrency adoption. They crawl globally with an average of 27%. European crypto exchanges come with more complicated user interfaces and high fees, making it difficult for early traders to participate in crypto as much as they want.” 

“We also discovered crypto-curious consumers in these countries interested in learning more about the blockchain space or want to make their first purchase but need help finding a simplified exchange to help build this interest. With all these in mind, the Roqqu team decided to take steps towards expansion and are currently making “BIG MOVES” as the first Nigerian-based Crypto exchange, driving crypto adoption in 28 European countries,” the statement further noted.

The Head of Product at Roqqu, Mr. Israel Ololade, revealed in an interview, how this global expansion aligns with the brand’s drive to become the number one blockchain and crypto company globally to push borderless remittance to its entire course.

He added, “In these countries, Roqqu users would be able to buy, sell and swap their coins, make payments via their virtual cards, accept payments through payment links, and many more we have in store.”

Furthermore, the crypto exchange’s CEO Benjamin Eseoghene suggested the decision to expand into Europe was influenced by users who asked Roqqu to consider making its services available to their friends and family members who live and study abroad.

The Governor of Morocco’s Central Bank, Bank Al-Maghrib (BAM), Abdellatif Jouahiri recently announced that the draft law regulating the crypto market in Morocco is ready and will be presented to the various stakeholders within the market soon.  

Speaking at a press conference following the BAM’s fourth annual meeting, Abdellatif Jouahiri explained that the Moroccan central bank will soon initiate a series of discussions with various players within the ecosystem prior to the implementation of the crypto-regulating document.  According to Jouahiri, the draft law seeks to protect individuals from risks that come with crypto investing.

Jouahiri further emphasized that BAM will notably enter into talks with Morocco’s capital market and insurance watchdogs, the Moroccan Capital Markets Authority (AMMC), and the Insurance Supervisory Authority and Social Security (ACAPS).

Jouahiri commented on the BAM’s journey in drafting the document as well as the planned discussions with other regulators, saying, “For cryptocurrencies, I can assure you that the project is ready. We worked with the World Bank and the consultant to make it happen. The different chapters are completed. Now we are engaged in the discussion with the different stakeholders. It is long but necessary to allow everyone to adhere to this project.”

According to Morocco World news, the draft legislation offers a definition for cryptocurrency that is adapted to the Moroccan context. Additionally, the Governor explained that the piece of legislation does not aim to constrain innovation, but rather to protect individuals from risks associated with dealing in the highly-speculative market.

In Morocco, cryptocurrency trading is currently prohibited. Market regulators in the nation did not even acknowledge the existence of digital assets until 2017, when a statewide ban on trading and keeping cryptocurrencies was issued.

However, the ban did little to curb the appetite of consumers as crypto ownership continued on a steady rise, with Morocco becoming the fastest-growing crypto market in Northern Africa. The latest data suggest that the number of crypto holders in the country reached 1.5 million in 2022.

In June of this year, Morocco’s central bank, aware of the rising popularity of crypto, announced that it was in discussion with the International Monetary Fund (IMF) and the World Bank (WB), and other international partners to establish a regulatory framework for the crypto market.

The news of Morocco’s introducing such regulations comes at a time when the crypto world is experiencing a long bear market. Many experts have speculated that the crisis in the crypto market is an echo of the uncertainty prevailing in the conventional financial market. 

The world’s most valuable cryptocurrency lost about 58% of its value in the second quarter of 2022. Additional shocks, including the dramatic fall of the Luna currency, caused $1.2 trillion to be wiped off the market.

However, despite the concerning global trends, the fundamental technology of the cryptocurrency blockchain appears to be surviving. The cryptocurrency blockchain has grown from $5.94 billion in 2021 to $10.13 billion in 2022 as a result of an increase in demand from numerous industries, including the banking industry.

According to a new budget that was approved by the Italian parliamentary finance committee on December 30th, cryptocurrency traders in Italy will be subject to a 26% capital gains tax starting this year.

According to Reuters, Italian Prime Minister Giorgia Meloni’s 2023 expansionary budget, which was completed in a rush before the end of last year, features 21 billion euros ($22.3 billion) in tax breaks to assist businesses and households facing the energy crisis.

The 387-page budget legalizes crypto assets in Italy and describes them as a digital representation of value or rights that may be transferred and maintained electronically using distributed ledger technology or similar technologies.

Italy’s move to introduce a capital-gains tax on crypto comes ahead of the implementation of the European Union’s Markets in Crypto Assets (MiCA) regulation that promises licensing frameworks and stringent operating requirements for crypto-service providers in the 27-member bloc.

The 26% rate applies to gains from crypto trading if they exceed 2,000 euros per tax period. As an incentive for declaring crypto profits, the new bill also sets a substitute income tax for investors at 14% of the value of the assets held as of January 1, 2023, instead of the cost at the time of purchase.

According to the new rules, losses from crypto investments can be deducted from profits and be carried forward. Investors, however, may require some additional guidance on what qualifies as a taxable event as the document also stated that the exchange between crypto assets having the same characteristics and functions doesn’t constitute a fiscal case.