To prevent tax fraud and illegal business practices, Kazakhstan is enacting new cryptocurrency legislation. The first law mandates that issuers of secured digital assets obtain government approval and are subject to oversight. The second regulation mandates that cryptocurrency miners sell at least 75% of their earnings through authorized cryptocurrency exchanges and targets unsecured digital assets. All Kazakh permits for cryptocurrency mining are only valid for three years, and they vary depending on whether the miner controls the mining infrastructure. Kazakhstan launched the CBDC project’s pilot phase and delivered a report on the state of the Central Asian DeFi and digital assets markets. Binance has been given a perpetual license to run a platform for digital assets and offer custody services. News Sorce

Binance, a cryptocurrency exchange, announced a major upgrade to its proof-of-reserves verification system on February 10, which will now include zk-SNARKs, a zero-knowledge verification method. Binance CEO Changpeng Zhao stated that the upgrade, first proposed by Ethereum co-founder VitalikButerin, will provide “more privacy and security.” Binance’s open-source PoR system will give all users the confidence they require to feel SAFU. Binance was among the first exchanges to adopt the system following the collapse of FTX in 2022, initially using traditional cryptography. Despite this, some retail crypto traders had a chance to gain 350.68% on BONK in four days. News Sorce

The New York Department of Financial Services is reportedly investigating Paxos Trust Company, the New York-based stablecoin issuer behind Binance USD (BUSD) and Paxos Dollar (USDP) (NYDFS). The exact reason for the investigation is unknown, but the department is attempting to protect consumers from the risks associated with investing in the cryptocurrency market. Paxos recently denied rumors that the Office of the Comptroller of the Currency (OCC) in the United States may order the company to withdraw its application for a full banking charter, despite receiving preliminary approval in April 2021. In 2015, the NYDFS granted Paxos a “BitLicense,” which allows companies to conduct digital currency-related activities in the state of New York. News Sorce

Ethereum co-founder and ConsenSys founder Joseph Lubin is confident that Ether (ETH) will not be classified as a security in the United States following Ethereum’s transition to a proof-of-stake (PoS) consensus model. He believes it would have the same impact as making Uber illegal, and he has been privy to discussions with the Securities and Exchange Commission and the Commodity Futures Trading Commission. Brian Armstrong responded to rumors that the SEC was considering banning retail consumers from staking crypto, noting that it would be a “terrible path for the U.S.” if a staking ban was passed. Lubin believes that ETH is sufficiently decentralized, with no centralized group of promoters or builders attempting to increase the value of Ether and enrich themselves. News Sorce

The cryptocurrency market, according to Michael Demissie, the head of digital assets at Bank of New York Mellon, is “here to stay,” as institutional investors have shown a strong interest in crypto. According to a BNY Mellon survey conducted in October 2022, 91% of custodian bank clients are interested in investing in blockchain-based tokenized products, 86% of institutional players are adopting a “buy and hold” strategy, and 88% of those surveyed have long-term plans to invest in the digital asset sector. Caroline Butler was named CEO of Digital Assets at BNY Mellon on February 2 to help drive the next wave of adoption for the bank’s clients. Butler was previously the CEO of custody services and will now lead the company. News Sorce

As a judge orders a fee examiner, Voyager subpoenas FTX and Alameda executives NEWS. The subpoenas request copies of documents and communications between FTX entities and the SEC or DOJ, as well as information about the loan portfolio between Alameda and Voyager, as well as FTX’s financial condition before and after it declared bankruptcy. Voyager claimed that its creditors suffered “significant harm” after Alameda made a bid for its assets that it was unable to honor, costing Voyager $100 million and making Alameda’s claim subordinate to those of its other creditors. Judge Michael Wiles appointed a fee examiner to investigate professional fees, but recommended that the examiner’s own fees be limited. News Sorce

The Bank for International Settlements (BIS) will intensify its research into Central Bank Digital Currencies (CBDCs) and launch a new project to track stablecoins. Project Pyxtrial will create a platform to monitor stablecoin balance sheets and investigate technological tools to assist supervisors and regulators in developing policy frameworks based on integrated data. CBDCs and payment system improvements accounted for 15 of the 26 active projects in the last few years. As part of the G20 countries’ program to improve cross-border payments, the Bank for International Settlements (BIS) has increased its focus on improving payment systems and experimenting with CBDCs. It also intends to test the distribution of a retail CBDC via an open API ecosystem in a commercial setting. News Sorce