Everything in view: The most exciting crypto news of the week
A laptop with a biro on it, a coffee cup and a newspaper with a pair of glasses on it lie on a wooden table.
Federal government restricts crypto-anonymity; study predicts record year for NFTs; MoneyGram cancels partnership with Ripple; Cardano looks to expand and FED defines requirements for CBDC approval.
Another exciting week in the crypto space is drawing to a close. A compact overview of the most important events around Bitcoin and Co.
The German government is planning additional measures to curb the use of crypto assets in connection with money laundering or terrorist refinancing. This emerges from a small enquiry of the FDP parliamentary group, which is exclusively available to BTC-ECHO. According to the question, future Bitcoin Supersplit crypto transactions that exceed a volume of 1,000 euros will have to be reported. Last year, gold transactions with a sum of 2,000 euros or more had to be disclosed. The current changes result from the introduction of the „Transparency Financial Information Act Money Laundering“ (TraFinG Gw) and the associated changes to the Money Laundering Act (GWG), among others to section 10 paragraph 3 no. 2 GwG.
This section of the law is now being expanded by another point within the framework of the TraFinG Gw. The federal government justifies this step with the fight against money laundering and terrorist financing. However, precise statistics on the concrete extent of the use of cryptocurrencies in the area of terrorist financing and money laundering and for the payment of donations to terrorist groups could not be provided at the request of the FDP.
New study says: „2021 will be a record year for NFTs“.
The trade in non-fungible tokens (NFTs) is booming. Again and again, unique digital artworks are sold for record sums. Canadian crypto analytics firm NonFungible has published a report predicting that 2021 is likely to be an extremely bullish year for NFTs. Overall, the total market capitalisation of all NFTs has grown to about 338 million by the end of 2020. In doing so, the NonFungible team believes that the momentum in 2020 is a sign that 2021 could be an even more eventful year for NFT adoption. The current bull market is therefore only a harbinger of what lies ahead in 2021. In addition, the NonFungible team expects a large number of mature use cases and structured projects to become established this year.
MoneyGram puts relationship with Ripple on ice
After Ripple had to cope with one stroke of fate after the other this year, now comes the next blow. The payment service provider MoneyGram terminates its partnership with XRP. As part of a two-year cooperation, MoneyGram had entered into an agreement with DLT company Ripple Labs since June 2019. In the process, Ripple agreed to invest US$50 million in MoneyGram. In return, Ripple could use the on-demand liquidity (ODL) service from the payment service provider. For the use of the XRP token, Ripple Labs paid market development fees to MoneyGram.
Now, the money transfer service provider expects no more profits from Ripple’s market development fees for the first quarter of 2021. In the first quarter of last year, the company generated $12.1 million from such revenues. Those payments now appear to be on hold. At least until the legal rift between Ripple Labs and the US Securities and Exchange Commission (SEC) is resolved. As a reminder, the agency claims that XRP constitutes an unregistered asset and that Ripple Labs is therefore in violation of US investment law.
Cardano has big plans in the coming months
A lot is about to change at Cardano (ADA) in the next 30 to 60 days. This is what CEO Charles Hoskinson said in a recent interview. In doing so, he explained in concrete terms how things are to continue with ADA after the long-awaited launch of the Goguen Mainnet. In the coming months, everything will revolve around smart contract applications. Above all, Hoskinson wants to expand massively in the DeFi sector. In addition, the interview reveals that Hoskinson has been meeting with some well-known names from the crypto scene over the past few months to push the adaptation of Cardano, especially with institutional investors. So far, Cardano is working with teams from Celsius, SingularityNET, Fireblocks and Prime Trust. In addition, the Cardano Foundation research team is said to be working on a new initiative that can drive smart contract development on Cardano. It is highly likely that the University of Wyoming will play a central role in this, Hoskinson said.