Blockchain Bites: Refunds, Sovrin’s Layoffs and AML Bitcoin’s AML Issues

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Please consider using a different web browser for better experience. Please enable JavaScript in your browser for a better site experience. Blockchain Bites: Refunds, Sovrin’s Layoffs and AML Bitcoin’s AML Issues Jun 26, 2020 at 16:05 UTC (Christian Wiediger/Unsplash) Daniel Kuhn Blockchain Bites: Refunds, Sovrin’s Layoffs and AML Bitcoin’s AML Issues New York officials have instituted a three-strike rule for crypto firms applying for the BitLicense, the Sovrin Foundation is now fun by volunteers and Aussies can now buy BTC at their post office. Here’s the story: You’re reading Blockchain Bites , the daily roundup of the most pivotal stories in blockchain and crypto news, and why they’re significant. You can subscribe to this and all of CoinDesk’s newsletters here . Top shelf Watchdogs Snarl New York’s financial watchdog has warned crypto companies their BitLicense applications could be thrown out after “ three strikes ” of failing to address deficiencies highlighted by the regulator. Meanwhile, the European Union is preparing a new cryptocurrency regime that could include stricter requirements for “global stablecoin” projects such as Libra. Finally, the DoJ and SEC have filed charges against the founder of “ AML Bitcoin, ” a crypto which claimed to include anti-money laundering protections. AML Bitcoin’s founders are known for (erroneously) claiming the National Football League rejected an AML Bitcoin advertisement for being too controversial. Tidy Endings? The Sovrin Foundation, a U.S.-based umbrella organization that oversees the development of blockchain-based digital identity standards, or self-sovereign identity (SSI), laid off nine full-time and six part-time employees in March, officially becoming a volunteer-run operation. Sovrin works with the likes of IBM, Cisco and T-Mobile, and was unable to complete a fundraising campaign that started before the COVID-19 crisis hit. Elsewhere, CEO Kris Marszalek said will refund 100% of customer funds as the Financial Conduct Authority (FCA) suspended the activities of Wirecard Card Solutions, a subsidiary of the Wirecard Group, which filed for insolvency on Thursday after admitting last week to be missing $2.1 billion. Funds will be refunded within 48 hours. Grants & Partnerships Nearly half a dozen companies have announced new grants for open-source bitcoin contributors and projects since the coronavirus crisis began, from exchanges such as Kraken and OKCoin to the Human Rights Foundation. Grants are generally around $150,000 each. Wasabi Wallet-maker zkSNACKs Ltd is the latest to join the cohort by donating 1 bitcoin to the HRF’s Bitcoin Development Fund. Meanwhile, in a collaborative effort between Australia Post and, customers will now be able to use the Post Billpay feature to purchase bitcoin and other cryptocurrencies, using cash or cards, at over 3,500 post offices across the country. Bitcoin Mining Consumer advocacy group Public Citizen is trying to stop Canadian firm DMG Blockchain from plugging its bitcoin mining rigs into the American power grid. DMG Blockchain has been aggressively expanding its cryptocurrency mining capacity in recent months by tripling its fleet of ASIC and applying for permission to export U.S. electricity, writing that its 15 megawatt mining operation will grow to 60 megawatts in the next year. Message Received Telegram will pay $18.5 million and notify the SEC if it plans to issue any sort of digital currency in the next three years in a proposed settlement, effectively ending a six-month court fight. The messaging platform will be responsible for a $1.22 billion disgorgement offset by $1.19 billion paid as “termination amounts.” Quick bites Synthetix is the latest “DeFi plot” for yield farming CoinList will distribute Filecoin tokens after its August mainnet ( The Block ) There’s been a P2P crypto exchange flippening ( The Block ) A U.K. artist is selling his art collection for bitcoin and other cryptocurrencies ( Decrypt ) Uber will “deprioritize” its finance-related projects, including Uber Money and a digital wallet ( Bloomberg ) Market intel Bitcoin Narrative Deflated New Federal Reserve data shows a 78.6% chance of entering a U.S. deflation – the highest since 2008 – putting a pin in the narrative that bitcoin’s price will soar as an inflationary hedge. Some bitcoin optimists suggest the cryptocurrency would appreciate in a deflationary environment – if its adoption as a medium of exchange rises, as discussed in April. This is because deflation boosts the purchasing power of the monetary unit. For this reason, the U.S. dollar tends to appreciate during deflationary bouts. Exchange Spreads Trading U.S. dollars for bitcoin can have fairly...