South Korean Government Calls for Voluntary Regulations From Crypto Industry

Monday saw representatives of the South Korean government meeting with the People Power Party to discuss issues relating to crypto space. These consultations took place in the wake of last month’s collapse of the terrausd UST algorithmic stablecoin (UST) and its sister coin terra LUNA (LUNA), which affected many South Koreans.

Arirang revealed that Korean lawmakers and officials are considering a new law to protect investors and prevent such crashes. They urge the crypto industry also to develop its own regulations, which would include safety mechanisms.

According to the English-language TV channel, South Korea’s cryptocurrency assets market was valued at 55.2 trillion Korean won (or around $43 billion) at the time of writing. The rapid growth of the market over the last few years is evident in the fact that 24 licensed cryptocurrency exchanges in South Korea process an average daily transaction volume of 11.3 trillion won (over 8.7 billion).

However, South Korean authorities believe that the current regulations are inadequate to deal with rapid expansion. The government of South Korea and the country’s most powerful political force have called on the sector for ‘voluntary regulatory actions’. Meanwhile, many countries are looking at the effects of digital currencies on their economic policies and financial systems.

Arirang said that more than a dozen crypto-related bills were pending in Korea’s National Assembly. The country’s Financial Services Commission plans to introduce additional legislation to protect investors from the volatility of the crypto market.

Lee Bok-hyun, Governor of Financial Supervisory Service, was quoted as stating that he believes a fair regulation system is necessary. This would enable the crypto asset market to experience responsible growth, he said.

Terra Whistleblower Publishes Alleged Chat Log Between Do Kwon and Network Validators

A whistleblower named Fatman ( @fatmanterra), published a chat log on June 1, 2022 that allegedly shows a discussion regarding Terra’s blockchain halt. Bitcoin.com News reported previously on Fatman, as the Twitter account had accused Terraform Labs and Do Kwon in a series of sketchy acts. Fatman stated Wednesday that an anonymous source had provided the whistleblower a document showing Do Kwon and Terra community members discussing a chain stop.

I was provided the missing pages by an anonymous source from the internal validation chat. You can find the link in the next tweet. It was necessary to stop the chain. However, it would be interesting to see if anyone here can map to the large LUNA purchases that occurred just before.

– FatMan (@FatManTerra June 1, 2022

Bitcoin.com News reported about the Terra blockchain’s block production halting on May 12, 2022. At 7,603,700 blocks, the network was stopped. Terra Rebirth League was the chat conversation. The discussion started with Terra validators asking TFL for their opinions. The chatroom’s active participants add to the conversation throughout the chat. Do Kwon, Terra founder, said in the chat: “I think a stop makes sense. Validators can also discuss ways to restart the network.

The network’s native token LUNA was being minted at a rapid rate, which was one of the reasons for the suspension of the chain. According to data stored by archive.org, the circulating supply was 359,024,672 units of LUNA on April 16, 2022. There was a total supply of 742,371,433 LUNA that day and a maximum supply at 1,000,000,000. archived data showed that the supply had risen to 18,511,882,771 (LUNA) with a total supply at 19,407,034,276. The maximum supply displayed on coingecko.com for that day was an infinity symbol.

Participants are aware that LUNA is being minted into infinite amounts, as shown by the ‘Terra Rebirth League” discussion. One participant asks if all validators were present during chain halt discussions. “So, we agree to stop the chain?” One person asks. “[Are] all validators representatives present? The person continued. Another validator stated that he had already stopped his node. Someone scolded him and said: “This is not how it’s done.” It’s time to restart it. Although more validator representatives were brought into the discussion, there is still a lot of confusion.

“Can anyone tell me the benefits of stopping the chain?” A chat room member asked. “Hello everybody, what’s the deal? Another person asked.

Active Network Participants and Confusion Grips Terra Validators

Do Kwon, co-founder of TFL, isn’t very active during the conversation. However, he can be seen adding Terra community members to the chat and making comments. Some people expressed concern about the Terra community. Do Kwon states that he thinks halting makes sense in the 11:00 a.m. chat log. Someone says that they need to ask TFL for their opinion. At 11:05 AM, an individual stated that TFL was not making any statements. They want to reduce any further liability. One participant also asked about the presence of all validator representatives. A person replied that the only validators needed to stop the chain are the top five validators. One participant wrote:

To stop, we need the top five. It doesn’t really matter what rest does.

Another screenshot was also provided by the individual showing the top five validators during the Terra blockchain participants’ search for escape routes. One person said that all five of the top validators were present at the Terra Rebirth League discussion. People discussed block heights and when it would be best to stop production. Fatman’s supposedly chat log shows that Do Kwon is more active in trying to determine when the chain will stop and whether or not there will be a patch. Kwon wrote:

Is the chain broken?

The chain was active and had not stopped when he asked the question. Some of the participants in the discussion confirmed that it was still active. Kwon answered that it was too costly to attack the network stake and why the chain was being stopped. Kwon will also be asked to merge code into Terra’s codebase at 11:40 AM. One person also wants to know if blockchain snapshots will be taken. Bitcoin.com News reported that on May 31, the Terra development team explained that some Terra token holders’received fewer LUNA from an airdrop than they expected.

A verified TFL insider claims that Anchor’s core team, which included the Anchor whitepaper creators, quit TFL prior to Anchor’s release due to Do’s insistence on imposing a 20% interest rate they could not sustain, which they knew would lead to collapse.

– FatMan (@FatManTerra June 2, 2022

Six Trillion, Nine Hundred, and Seven Billion Luna Classic Tokens

The new LUNA 2.0 tokens can be swapped on exchanges today. The old coin, now known as luna classic (LUNC), is being called luna classic (LUNC). At $0.00009820/unit, LUNC tokens were well below a U.S. dollar at the time of writing. The coin has a market value of $794 million and a 24-hour global trade volume of $271 million. The circulating supply of LUNC remains unknown, and the total supply is 6,907.072,876,045. This means that LUNC’s total supply has increased 930,306% over 45 days since April 16, 2022. The total supply of LUNC grew 35,490% even after the chain was broken on May 12.

Bitcoin’s Hashrate Taps an All-Time High, Next-Gen Machine Deployment Could Push it Much Higher

Recently, Bitcoin’s mining difficulty reached an ATH of 29.79 trillion. It’s currently the most difficult time to find a BTC reward. After cruising at 28.2 trillion for the past two weeks, the difficulty of Bitcoin’s mining jumped 5.56% on April 27.

Despite the difficulty increasing, Bitcoin miners have maintained a high-speed pace. In addition, Bitcoin has lost 6.2% against the U.S. Dollar over the past two weeks. During the two-week downturn, bitcoin miners have also found it less profitable due to the price drop.

Despite these setbacks, bitcoin miners managed to push the hashrate to an all-time high in computational processing power. On May 2, 2022 at block height 734 577, the hashrate hit 275.01EH/s at its highest ever level.

Before the 275 EH/s block height of 733,197 on April 23, the network had reached an ATH 1,380 blocks. The ATH at that time was 271.19EH/s. The overall hashrate rose by 1.40% over seven days since block height 733.197.

Soon to be deployed Next-Generation miners

According to seven-day statistics, Foundry USA was the most popular mining pool. It seized 233 of the 1,071 Bitcoin blocks last week. Foundry USA holds 21.76% network hashpower and has a 49.29 EH/s on average for the past seven days. Antpool was the second-largest mining pool, with 145 block subsidy reward rewards.

Antpool held 13.54% global hashrate over the past week with 30.68 EH/s. Today, there are 12 pools that dedicate hashpower to the Bitcoin network. 0.93% of global hashrate (or 2.12 EH/s) is controlled by unknown bitcoin miners.

The hashrate of Bitcoin has reached an all-time high, before the new next-generation bitcoin mining rig manufacturers shipped their latest machines. Next-generation miners, from Bitmain to Microbt which have a lot more hashrate than previous generations, will be available for shipment next month.

Bitmain’s Hydro Bitcoin Mining Rig, the Antminer Pro+ Hyd. commands 198 TH/s, and was released earlier this month. These next-generation, high-powered miners can be deployed by miners depending on the lead time and could increase the overall network’s hashrate significantly.

Russian Bankers Suggest Criminalizing Crypto Storage in Non-Custodial Wallets

Challenges with foreclosure and seizure of crypto assets held by debtors and criminals have motivated the Association of Banks of Russia ( ABR) to suggest introducing criminal liability for storing coins in non-custodial wallets, the organization’s Vice President Anatoly Kozlachkov told Izvestia this week.

ABR’s initial proposal, made with the advisory assistance of the Russian Ministry of Internal Affairs, was to criminalize the undeclared storing of cryptocurrency in such wallets. The association is now leaning towards targeting refusals to provide the wallet keys when requested by authorized bodies, Kozlachkov said.

The ABR remarks that it is not referring to digital assets in wallets provided by crypto exchanges, which are de facto controlled by these platforms similar to bank deposits, but wallets controlled directly by the users.

When the relevant authorities establish a connection between a debtor and a cryptocurrency wallet, for example, the person may be given a choice – to either share their keys or risk penalties for hiding property in the form of digital assets.

Besides preventing capital outflow through crypto, the bankers say their approach would help to create ‘a closed circuit for the circulation of cryptocurrencies’ in Russia. According to the ABR, this would be impossible without an effective foreclosure mechanism for non-custodial cryptocurrencies.

In mid-April, the ABR sent its regulatory concept to the Central Bank of Russia, the Ministry of Finance, and Rosfinmonitoring, Russia’s financial watchdog. Rosfinmonitoring told Izvestia that it deserves attention and the finance ministry was ready to consider it. Bank of Russia declined to comment.

Meanwhile, the idea has been met with criticism from lawmakers and representatives of the crypto industry in the expert council at the parliamentary working group tasked to develop comprehensive crypto regulations. Andrey Lugovoy, the group’s deputy chairman, said he understood ABR’s concerns but warned the move would hinder the legalization of the crypto market.

Experts interviewed by Izvestia were also skeptical. According to Roman Yankovsky, deputy dean of the Faculty of Law at the Higher School of Economics, a leading Russian university, it’s unrealistic to identify the non-custodial wallets of ordinary citizens and seizing them would be difficult, if not impossible.

Andrey Gusev, managing partner of the Nordic Star law firm, considers the introduction of criminal liability for owning such wallets unnecessary and says that tax incentives and administrative fines should be enough to dissuade Russian crypto holders from using or hiding them.

Criminalizing non-custodial wallets is ‘fundamentally wrong,’ thinks Maxim Bashkatov, head of the Legal Development Department of the Center for Strategic Research. He points out that right now it’s unsafe for Russians to store cryptocurrency on exchanges because of the risk of asset freezes as a result of western sanctions imposed over the war in Ukraine.

JPMorgan CEO Jamie Dimon to Shareholders: Decentralized Finance, Blockchain Are Real

Jamie Dimon, CEO of JPMorgan, recognized the value of decentralized finance (defi), and blockchain technologies in Monday’s annual letter to shareholders.

Dimon spoke about his company’s investment in technology.

Blockchain and decentralized finance are real new technologies that can both be used in public and private settings, whether permissioned or otherwise.

The CEO stated that JPMorgan Chase was at the forefront in this innovation. To enable banks to share complex data, we use Liink blockchain. We also use blockchain to move U.S. dollars with JPM Coin.

According to the website, Liink now covers 39 countries. Over 250 leading institutions signed letters of intent to join the Liink network and more than 25 banks around the globe have signed up. According to the global investment bank, Liink was established to help transfer data via custom applications more efficiently.

JPMorgan explained that JPM Coin is a permissioned shared ledger system that acts as a payment rail, deposit account ledger and allows participating J.P. Morgan clients transfer US Dollars that are held on deposit with J.P. Morgan.’ Morgan.

Dimon commented further on blockchain in his letter addressed to shareholders:

We believe that a blockchain can be used to replace or enhance contracts, data ownership, and other enhancements.

He cautioned, however, that it is not currently feasible to deploy the technology for all purposes.

Dimon praises decentralized finance and blockchain technology, but he hasn’t been open to cryptocurrency, even though JPMorgan started offering some crypto products to clients.

was warned by Dimon last November: “Cryptocurrency does not have an intrinsic value… I would be very cautious. He said that bitcoin was useless in October and challenged its limited supply. He advised people to avoid cryptocurrency in May.

A JPMorgan report last week stated that crypto markets have limited upside. The firm did predict that bitcoin’s long-term price would be $150,000 in February. JPMorgan stated that global regulation was essential to allow banks to assist clients with crypto investments.