An overview of current news in the crypto space

By bit.team

In our digest, we took a look at some important crypto industry news over the past week:

Malware attacked Ledger crypto wallets to the tune of $680,000
The number of people applying for citizenship in El Salvador for crypto investments is known
Digital Tenge: successful completion of the pilot project in Kazakhstan
Herman Gref on cryptocurrencies: evolution of Sberbank CEO’s point of view
China to launch blockchain-based citizen verification system
Satoshi Nakamoto disappeared 13 years ago: bitcoin creator’s story continues to be shrouded in mystery
Regulation of digital assets in Russia in 2023: trends and challenge

Now for more details. Reading time: 9 minutes.

Hardware cryptocurrency wallet developers Ledger have warned users of a compromised library used by decentralised applications (dApps). The supply chain attack allowed attackers to inject malicious JavaScript code into the Ledger dApp Connect Kit, leading to the theft of cryptocurrency and NFT from connected wallets. The problem was discovered after a phishing attack on Ledger’s account on the NPMJS resource.
Company representatives have removed the compromised versions of Connect Kit and released a new secure version 1.1.8. However, it is not recommended to use older versions of dApps for now, as the problem persists for them. The use of Ledger Live and hardware wallets have not been affected by the attack.
Ledger recommends users to be vigilant and not share the 24-word secret phrase with the attackers. The investigation into the incident is currently ongoing and the exact amount of damage has not yet been determined. More than $600,000 in cryptocurrency is expected to be affected.
It has become known that a total of 153 people have applied for citizenship in El Salvador in exchange for investing in bitcoins or USDT stablecoins. This news came to light after Salvadoran authorities announced a new emigration programme called the El Salvador Freedom Visa. Under this programme, individuals are able to gain residency and a chance at citizenship by investing $1 million in bitcoins or USDT in the country’s economy. Tether has taken over the technological support for this programme. Some countries such as Malta, Portugal and Greece also offer citizenship for investment, but for smaller amounts. Salvadoran President Nayib Bukele, who is behind the high profile bitcoin law, has announced that he is stepping down from his post, due to run in the presidential election, the results of which will be known in February 2024. This new emigration programme in El Salvador aims to attract capital and develop the country’s economy.
The Central Bank of Kazakhstan has successfully completed a pilot project on the use of the digital tenge in retail transactions. Under the project, plastic debit cards linked to the digital tenge were launched; their functionality is similar to conventional plastic cards. The cards can be used at any point that accepts credit and debit card payments. The digital tenge is also available through the local Onay transport card. An important part of the project was the provision of free lunches to schoolchildren using the Onay transport card. The digital tenge can also be used abroad thanks to partnerships with Visa and Mastercard. The Central Bank of Kazakhstan plans to test offline transactions with the digital tenge and its use in international settlements. As a result of the pilot project, high compatibility was achieved for the state digital currency. In the future, the Central Bank plans to develop the functionality of the digital tenge platform and conduct quantitative research. The introduction of the digital tenge is expected to increase accessibility of financial services and reduce costs in cross-border settlements.
Herman Gref, the head of Sberbank, has long been interested in cryptocurrencies and blockchain. In his speeches, he expressed different opinions on the subject, and his point of view changed as the industry evolved. At the beginning of his introduction to cryptocurrencies, Herman Gref experimented and made transactions in bitcoin. He even bought a T-shirt for 12 BTC in 2011. In 2013, he spoke favourably about virtual currencies, considering them an interesting international experiment that should be regulated but not banned. However, Herman Gref’s stance became tougher over time. He began to highlight blockchain as a promising technology that should be developed and cryptocurrencies as a threat to banks and the financial system. In 2017 at the Eastern Economic Forum, Gref explicitly stated the need to regulate bitcoin, while emphasising that this should not hinder the development of blockchain.
Herman Gref believes that the state is not ready to abandon its centralised money supply model in the next 10 years, and will not allow cryptocurrencies to replace fiat money. He also spoke in favour of stablecoins and the preservation of cryptocurrency as an investment asset. Thus, Herman Gref’s viewpoint on cryptocurrencies has evolved from interest and favourable attitude towards them to a more cautious and regulatory approach. He emphasises the importance of blockchain as a technology, but doubts the prospects for cryptocurrencies to replace traditional money.
The Chinese government is working with the national Blockchain Service Network (BSN) project to launch a citizen verification system called RealDID. This new platform, developed by China’s Ministry of Public Security, is designed to authenticate citizens’ identities for online purchases and interactions with institutions over the internet. RealDID promises identity protection and certification through the use of decentralised identifiers (DIDs) and private keys. This will increase user security and privacy as data and transactions will be kept separate from personal information. The launch of RealDID for all 1.4 billion Chinese citizens has not yet been disclosed. The project comes in the wake of new regulations that require influencers to provide their real names on social media and messengers. In order to increase trust in online content and provide greater transparency in the digital environment, China has been actively implementing the People’s Bank of China’s (PBOC) digital currency, the digital yuan, and investing in the development of artificial intelligence and blockchain. Some U.S. lawmakers have expressed concern about blockchain development in China, fearing that it could provide access to sensitive intelligence information. This news is exciting and raises questions about data privacy and the protection of personal information.
On 12 December 2010, the creator of the first cryptocurrency under the pseudonym Satoshi Nakamoto, posted his last message on the bitcointalk forum before disappearing from public view. At the time, the price of bitcoin was only $0.20 and the network was vulnerable to DoS attacks. Nakamoto’s last post contained a description of the update and code to control the DoS version of the protocol.
Since the bitcoin founder’s disappearance, his identity has remained a mystery. There are different theories about who is actually behind the alias Satoshi Nakamoto. Some suggest it is Ilon Musk or Craig Wright, while others believe Satoshi is a group of developers hiding under one alias.
Despite Nakamoto’s disappearance, the development of the bitcoin project continues and the price of the cryptocurrency has reached an all-time high of $69,000. Bitcoin has also been accepted as legal tender in El Salvador and the Central African Republic.
Satoshi Nakamoto left a huge legacy in the world of cryptocurrencies and decentralisation. His disappearance reminds us that more important than personal glory is the movement for economic freedom and sovereignty.
GMT Legal lawyers have analysed the regulation of cryptocurrencies, digital financial assets (DFAs) and the digital ruble in Russia in 2023 in an author’s column for RBC Crypto. One of the important trends has been the introduction of the digital ruble, which proposes to replace cryptocurrencies. The Bank of Russia has already conducted almost 14,000 transactions using the digital ruble, and in 2024 it is planned to involve 30 banks. The second trend was the development of the CFA market, where liquidity appeared and interesting CFAs were issued, such as Digital Metres from Samolet. The CFA market is still not very liquid, but new opportunities for investors are emerging. The third trend was the lack of a law detailing the legal status of digital currency and its circulation in Russia. Legislation uses the term “digital currency”, but the definition is general and vague. The legislation also lacks a definition of cryptocurrency. In general, the regulation of digital assets in Russia continues to develop, but questions remain as to their legal status and regulation.

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