The crypto world was abuzz with a range of developments this week. 

As Fireblocks and Coinbase joined forces to bolster trading capabilities, Singapore warned of a Bitcoin-demanding ransomware plaguing local businesses. 

Tensions flared between Elon Musk and Apple over AI integration, with Musk threatening to ban Apple devices. 

Concurrently, former President Donald Trump reinforced his pro-crypto stance, vowing to be the “Crypto President.” 

Meanwhile, Australia’s move to crack down on certain crypto-gambling services added another layer of regulatory scrutiny.  

Fireblocks Enhances Offerings Through Coinbase Collaboration

Infrastructure provider Fireblocks has broadened its services by teaming up with Coinbase. As announced on June 10, this partnership allows Fireblocks’ platform to now support perpetual futures and spot trading via the Coinbase International Exchange. 

This new capability primarily caters to institutional investors such as hedge funds, proprietary trading firms, and family offices. A key benefit touted is the ability to conduct perpetual and spot trading adhering to pre-defined governance policies and workflows, helping mitigate security risks and prevent unauthorized transactions.

As the announcement stated, “Perpetual trading involves betting on future price changes without an end date or obligation to own an asset, unlike spot trading, in which you immediately buy or sell the asset.”

Geographic Limitations Outside U.S.

However, these enhanced trading options are restricted to “eligible jurisdictions” outside the United States. Coinbase International, being a Bermuda-based entity, does not clearly specify the countries it serves on its website or within its Terms of Service.

Expansion Amid Bull Market 

The recent crypto bull market seems an opportune time for Fireblocks’ expansion moves. The company recently unveiled plans to launch a custodian arm in the U.S., targeting institutional demand for digital asset custody services. 

This new entity will initially offer custody for Bitcoin, Ether, and three specific stablecoins, with more assets added as mandated by the New York Department of Financial Services (NYDFS).

Market projections indicate continued growth for the digital asset space as traditional financial players and institutions increase their involvement, including through asset tokenization to improve overall market liquidity. Institutions are also displaying keen interest to diversify their portfolios with crypto assets.

Fireblocks claims its platform has processed over $6 trillion in transactions across more than 200 million wallets worldwide. The company currently serves over 30 cryptocurrency exchanges and 55 banks operating in the digital asset realm.

Singapore Warns Businesses About Bitcoin Ransomware Threat

Singaporean authorities have issued a joint advisory cautioning local businesses about the rising threat posed by a variant of the Akira ransomware. This warning comes after agencies like the Cyber Security Agency of Singapore, the Singapore Police Force, and the Personal Data Protection Commission received numerous complaints from victims recently hit by these cyberattacks.

The Akira ransomware, which made headlines by extorting over $42 million from more than 250 organizations across North America, Europe, and Australia within just one year, has now set its sights on compromising systems in Singapore.

Demands Bitcoin Ransom Payment

Prior investigations conducted by the United States Federal Bureau of Investigation revealed that Akira primarily targets businesses and critical infrastructure entities. Once successful in hijacking a victim’s systems, the Akira group’s ransomware message demands payments in cryptocurrencies like Bitcoin in exchange for restoring access and control.

Authorities Advise Against Paying Ransom

However, the Singaporean authorities have firmly advised businesses against giving in to such ransom demands. As their advisory states: “If your organization’s systems have been compromised with ransomware, we do not recommend paying the ransom and advise you to report the incident immediately to the authorities. 

Paying the ransom does not guarantee that the data will be decrypted or that threat actors will not publish your data.”

The authorities outline several cybersecurity best practices to detect, deter and neutralize Akira attacks. These include implementing robust recovery plans, multi-factor authentication, filtering network traffic, disabling unused ports and hyperlinks, and employing system-wide encryption. 

Notably, the FBI’s findings indicate that Akira operatives never directly contact victims, instead expecting them to initiate communications.

Musk Threatens Apple Device Ban Over OpenAI Integration Plans

Billionaire Elon Musk has issued a stern warning – integrate OpenAI’s ChatGPT into Apple’s operating systems, and he will ban Apple devices across his companies. In a recent post, Musk declared such a move by Apple would constitute “an unacceptable security violation.” 

His proposed ban could even extend to visitors at Tesla, SpaceX, and other Musk-led companies’ headquarters, who may be required to store their Apple devices in “Faraday cages” upon entry.

Apple’s “Unacceptable” AI Outsourcing

Musk’s aggressive stance stems from his belief that Apple “isn’t smart enough” to develop its own artificial intelligence capabilities. During its Worldwide Developers Conference on June 10th, Apple unveiled “Apple Intelligence” – a suite of new generative AI features powered by OpenAI’s GPT-4 language model. 

Musk deemed it “patently absurd” for Apple to outsource AI instead of creating it in-house, accusing the tech giant of “selling you down the river” and not truly “protecting privacy” as claimed.

Apple’s Planned AI Rollout

The contentious “Apple Intelligence” is slated for release with iOS 18, iPadOS 18, and macOS Sequoia later this year. One key feature allows Apple’s Siri voice assistant to relay queries to ChatGPT when needed, with user permission. 

Apple states user data like IP addresses won’t be stored by OpenAI. However, Musk hasn’t addressed these stated privacy protections, prompting criticism that he overlooked important context.

Trump Pledges to be ‘Crypto President’ in 2024 Campaign

Former U.S. President Donald Trump is intensifying his advocacy for cryptocurrencies as part of his 2024 presidential campaign bid. At a recent fundraising event hosted by tech leaders, Trump reportedly declared “he would be the crypto president.” He reiterated his support for the crypto industry and plans to push it forward if elected.

Contrasting Stance from Democrats

Trump highlighted the contrasting approach of the Democratic Party, suggesting they intend to implement harsh crypto regulations. His pro-crypto stance sets him apart from the current administration’s perceived hostile stance toward the industry.

Changing Regulatory Landscape

Some experts believe a positive regulatory shift is already underway in Washington regarding cryptocurrencies. Bitwise’s Matt Hougan thinks the U.S. is finally moving toward regulatory clarity, which could open up the $20 trillion financial advisory market to crypto.

Industry Lobbying Efforts

Meanwhile, the crypto industry isn’t idly waiting for change. Major exchange Coinbase recently donated $25 million to crypto-focused super PAC Fairshake as it ramps up lobbying ahead of the November elections. The PAC has now raised $160 million this cycle, matching donations from Ripple and Andreessen Horowitz.

Australia Cracks Down on Online Gambling with Crypto, Credit Card Ban

To protect its citizens from financial risks associated with online gambling, the Australian government has implemented a ban on using cryptocurrencies and credit cards for such platforms. As reported by The Canberra Times on June 11th, the new rules prohibit digital currency and credit card use for online betting.

Strict Penalties for Non-Compliance  

The government warned betting companies that failing to comply with these new regulations could result in hefty fines. The announced penalty is up to approximately 234,750 Australian dollars ($155,000). The banned payment methods include credit cards linked to digital wallets, cryptocurrencies like Bitcoin, and other new credit forms.

Aligning with Land-Based Gambling Laws

The updated online gambling rules align with Australia’s existing laws governing land-based betting operations. However, some exceptions remain in place, such as still allowing credit card use for online lottery payments. 

Industry Perspective

Kai Cantwell, CEO of Responsible Wagering Australia, an independent body for licensed Australian gambling providers, welcomed the move. He stated: “This is an important measure to protect customers, making it easier for people to stay in control of their own gambling behavior.”

Cantwell further urged extending the ban to all exempt gambling forms, warning that inconsistent protection could lead people to “move to less-regulated types of gambling, where they are more at risk of harm.”

Six-Month Transition Period

The gambling industry was provided a six-month transition window, with the full ban on crypto and credit card payments coming into effect on June 11th. Enforcement will be handled by Australia’s communications watchdog.

Crypto Users’ Gambling Habits  

Cryptocurrency users are known for gambling on a wide range of outcomes, from speculative token prices to major regulatory decisions. On January 11th, users of platform Polymarket gambled $12 million on the outcome of spot Bitcoin ETF approvals in the U.S. Bets on Ether ETF decisions reached $2.4 million in March before eventual approval in May.

Closing remark

This week underscored the cryptocurrency industry’s dynamism as it navigates strategic partnerships, emerging cyberthreats, corporate rivalries and a complex regulatory landscape. 

While collaborations like Fireblocks-Coinbase aim to enhance offerings, cyberattacks and the tech giants’ AI feud underscore prevailing risks. The political crypto agenda gained steam with Trump’s rhetoric, even as Australia’s gambling ban highlighted authorities’ evolving approach. 

As it forges ahead, the industry must balance innovation with robust security measures and compliance.

What are your thoughts on this week’s crypto news? Did any particular development stand out to you? Leave a comment below and let us know your perspective!

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