Here is a summary of the most important cryptocurrency news you may have missed during the first week of August
Bank of America Sees Benefits in El Salvador’s Adoption of Bitcoin
Bank of America (BofA) published a report last week expressing a generally positive view of El Salvador’s decision to adopt Bitcoin as legal tender. The multinational investment bank argued that market reaction had been overly pessimistic and that the move could yield several tangible benefits for the Central American nation.
One of the primary advantages highlighted in the report is the potential to reduce remittance fees. Remittances account for roughly 24 percent of El Salvador’s GDP, and traditional banking channels can take around 10 percent of each transfer—representing an estimated 2.4 percent of national GDP. BofA suggested Bitcoin could lower transaction costs for cross-border payments and remittances.
The report also noted that Bitcoin could help broaden access to electronic payments in a country where up to 70 percent of the population lacks access to formal banking services. Additionally, the bank said Bitcoin adoption might attract foreign direct investment, drawing businesses such as mining operations and ATM manufacturers while increasing consumer choice.
BofA further observed that volatility concerns could be mitigated if Bitcoin transactions were automatically converted into dollars, though the bank maintained that Bitcoin’s price swings still represent an overall negative factor for the policy.
Matrixport Reaches Unicorn Status After Series C Funding
Crypto firms in the Americas crossing the $1 billion valuation mark continue to multiply, and Matrixport is the latest to join that cohort. On Monday, Matrixport announced that a Series C funding round raised $100 million, valuing the company at over $1 billion.
The round was led by C Ventures, DST Global, and K3 Ventures, with participation from Dragonfly Capital, Qiming, Palm Drive Capital, CE Innovation Capital, Tiger Global, Cachet Group, A&T Capital, and Foresight Ventures. Matrixport, which provides cryptocurrency trading and financial services, plans to use the capital to pursue global expansion and invest in research and development to improve its product offerings.
In related crypto funding news, NFT platform MakersPlace secured $30 million in a Series A round backed by venture firms and numerous celebrity and angel investors, including Eminem, Sabrina Hahn, Paul Rosenberg, Julia Hartz, and Bill Ruprecht. Strategic investors included Sony Music Entertainment, Coinbase Ventures, and Uncork Capital. MakersPlace intends to use the funds to develop new ways to promote digital art and NFTs to mainstream audiences, improve digital tools for creators, and expand its market presence.
Former Monero Developer Arrested Over Invoice Fraud Allegations
Ricardo Spagni, a former Monero developer known by the alias “fluffypony,” was reportedly arrested at his home on June 20 on allegations tied to fraud that allegedly occurred in South Africa between 2009 and 2011. He is accused by his former employer, Cape Cookies, of using a false identity to obtain payments from another company.
Authorities allege Spagni intercepted an invoice from information technology firm Ensync and then used the company’s details to create fraudulent invoices that redirected payments to him. He is also accused of producing similar fake invoices involving three other entities, defrauding his former employer of approximately $100,000 in total.
Spagni’s crypto career began in 2011 when he mined Bitcoin and later moved into building mining rigs and other crypto-related work. He eventually became a lead developer for Monero before stepping back from the project in 2019. Monero has since grown into one of the largest privacy-focused cryptocurrencies, widely known for offering enhanced privacy to users.
Google Updates Ad Policy to Allow Some Crypto Ads with Restrictions
In March, Google implemented a broad ban on crypto-related advertising, excluding many crypto derivatives and trading services, including exchanges. This week a revised advertising policy took effect that reintroduces limited allowances for cryptocurrency advertising on Google platforms.
The updated Financial Products and Services policy, announced in June, is intended to serve advertisers targeting the United States and imposes strict eligibility requirements. Advertisers must either be federally chartered banks or be registered with the U.S. Financial Crimes Enforcement Network (FinCEN) as money services businesses in order to run crypto-related ads.
Google’s new policy continues to prohibit ads related to initial coin offerings (ICOs), unregulated decentralized applications (dApps), custodial wallets without proper oversight, liquidity pools, initial offerings of decentralized exchanges (DEXs), and celebrity endorsements of crypto products. The change marks a cautious reopening for regulated crypto firms to advertise while maintaining protections against higher-risk crypto products.
Singapore Grants “In Principle” Approval to Australian Exchange Independent Reserve
Independent Reserve, an Australian cryptocurrency exchange, has been given “in principle” approval by the Monetary Authority of Singapore (MAS), a development that will be welcomed by the many exchanges awaiting licensing in Singapore.
MAS published a letter detailing the conditional approval, and Independent Reserve confirmed it has been recognized as a regulated service provider under Singapore’s Payment Services Act. As a regulated virtual asset service provider, the exchange will be expected to perform customer due diligence, implement appropriate risk-management procedures, comply with anti-money laundering rules, and apply consumer-protection measures.
Independent Reserve initially applied for a license in April of the previous year, and this approval signals that Singapore’s regulatory framework for crypto payment services is beginning to take effect. The move is likely to influence other exchanges seeking formal authorization to operate within Singapore’s regulatory environment.