Category: Blog-new

The Financial Conduct Authority (FCA) has extended its regulatory reach to include crypto asset promotions, aiming to provide consumers with accurate information and adequate risk warnings. As of October 8, 2023, firms involved in promoting crypto assets in the UK must be authorised or registered by the FCA, or have their marketing approved by an authorised firm.

Common Issues Identified by the FCA:

1. Misleading Claims: Some promotions make exaggerated claims about the ‘safety,’ ‘security,’ or ease of using crypto asset services without adequately highlighting the inherent risks.
2. Visibility of Risk Warnings: Risk warnings are not sufficiently visible due to small fonts, hard-to-read colouring, or non-prominent positioning.
3. Lack of Information: Firms fail to provide customers with adequate information on the risks associated with promoting specific products.

FCA’s Actions:

• Authorised firms approving crypto asset financial promotions must take their regulatory obligations seriously. Non-compliance may result in restrictions, as the FCA has already taken action against an authorised firm.
• Collaborating with social media platforms, app stores, search engines, and domain name registrars to remove or block illegal promotions.
• Working with payments firms to limit UK consumer exposure to firms issuing illegal promotions.
• Issuing 221 alerts against firms illegally promoting crypto assets to UK consumers since the new regime went live.

Consumers’ Role:

• Check the FCA’s Warning List before making any crypto decision to identify firms whose promotions may be breaking the law.
• Understand that even with new marketing rules, crypto assets remain high-risk and largely unregulated, and consumer protections may be limited if something goes wrong.

Coinsdrom’s Commitment:

Coinsdrom emphasises transparency throughout the entire process of buying and selling cryptocurrency. Users need to be aware of the risks involved in the crypto industry. While Coinsdrom provides a transaction platform, users are encouraged to exercise due diligence, conduct research, and make informed decisions.

Key Information for Firms Promoting Crypto Assets:

• Authorised or registered status is required by law for firms promoting crypto assets in the UK.
• Promotions must be clear, fair, and not misleading, with prominent risk warnings.
• The financial promotion regime applies to all firms marketing crypto assets to UK consumers, regardless of their location.
• Four lawful routes for communicating crypto asset promotions, including authorization, approval, registration under Money Laundering Regulations, or compliance with exemption conditions.
• Firms engaging in good faith with the FCA for compliance will be treated proportionately, but non-compliance will lead to robust actions to protect consumers.

The FCA’s new financial promotion rules align with its core commitments to reduce harm, set higher standards, and promote competition and positive change. Coinsdrom encourages users to approach crypto assets cautiously, considering the FCA’s warnings and the risks associated with the crypto market.

In a recent interview with Business Insider, Steve Wozniak, co-founder of Apple, emphasised his trust in Bitcoin, labelling it as having “pure gold mathematics.” Despite his enthusiasm for Bitcoin, Wozniak expressed scepticism regarding other cryptocurrencies and NFTs, highlighting potential risks for users.

Bitcoin’s Solid Foundation

Wozniak’s confidence in Bitcoin stems from its robust mathematical underpinnings. He equates its stability to gold, emphasising the importance of these calculations in safeguarding its value. While Wozniak didn’t delve into technical specifics, his endorsement aligns with Bitcoin’s reputation as a secure and enduring “store of value.”

“Bitcoin is the only digital gold that has this mathematical nature. It’s pure gold mathematics.” – Steve Wozniak.

Caution Amidst Crypto Diversity

While championing Bitcoin, Wozniak cautioned users exploring other cryptocurrencies and NFT projects. He expressed concerns about the motivations of project founders, suggesting the potential exploitation of early-stage users.

Unicorn: A Unique Perspective

Wozniak, a judge on the Unicorn Hunters TV show, showcased a more positive outlook on Unicorn, a cryptocurrency featured on the program. Unicorn aims to address volatility concerns and protect holders from inflation, presenting itself as an opportunity for broader participation in the startup world.

“Unicorn is not just words and talks; it’s real financial strategy,” said Steve Wozniak.

Despite his optimism for Unicorn, Wozniak refrained from explicitly comparing its underlying technology to that of Bitcoin. His involvement in the cryptocurrency space, coupled with his measured endorsement of specific projects, provides nuanced insights into the evolving crypto landscape.

Key Takeaways for Crypto Users

Wozniak’s perspective is a valuable guide for crypto users navigating the dynamic cryptocurrency market. Understanding the unique attributes and potential risks associated with different cryptocurrencies becomes increasingly crucial as the industry matures. Crypto users are encouraged to approach the market discerningly, considering the diverse landscape shaped by technological nuances and varying project intentions.

Note:

This article is intended to provide insights into the opinions expressed by Steve Wozniak, co-founder of Apple, regarding cryptocurrency, specifically Bitcoin. Readers must understand that the article does not endorse or support any cryptocurrency. The views expressed by Wozniak are personal and represent his individual perspective on the subject.

Readers are strongly advised to exercise caution when exchanging cryptocurrencies. Coinsdrom, as an online exchange, does not provide  financial advice. This article should not be construed as such. Coinsdrom strives to provide informative content, but users should independently assess the opportunities and risks associated with cryptocurrency.

In a recent revelation, SlowMist, a leading crypto security analytics company, has exposed a sophisticated phishing scam organised by Chinese hackers. The scammers ingeniously employed a cloned version of the Skype video app, taking advantage of China’s restrictions on international applications. This deceptive move targeted crypto users actively seeking banned apps like Telegram, WhatsApp, and Skype on third-party platforms.

The Elaborate Scheme

SlowMist’s analytical team meticulously examined the counterfeit video app, identifying a version discrepancy (8.87.0403) compared to the official version (8.107.02.215). Further investigation unveiled an altered signature, indicative of malware insertion, and a modified version of the Android network framework, “okhttp3.” This modified framework posed a significant threat to cryptocurrency users as it accessed images from diverse directories on the device.

Phishing Tactics

The attackers deployed a well-established phishing strategy, embedding the fake video app with malware to compromise crypto wallets and steal funds. Once installed, the deceptive app requested access to internal files and images. Unsuspecting users, perceiving it as a routine permission request from a social application, inadvertently granted all requests.

Exploiting Trust

Upon gaining permission, the malicious video app surreptitiously uploaded sensitive data, including images, user device details, identity documents (driver’s licence, passport, and national ID), and phone numbers, to the hackers’ backend. The app actively collected images and messages, scanning for keywords like Tron (TRX) and Ether (ETH) to detect crypto wallet transfers. Upon detection, the destination address would be automatically replaced with a predetermined malicious one.

Notable Patterns

SlowMist highlighted the similarity of this phishing scam to a previous fake Binance (BNB) hack case in November 2022. The team uncovered specific cryptocurrency addresses associated with the scam, including Tron and ETH addresses. 

Counteraction and Prevention

In response to the threat, SlowMist’s analytics team took proactive measures. Testing for ongoing activity on the fake Skype app, they discovered that the address replacement was no longer effective, indicating the shutdown of the phishing interface backend. The platform promptly sourced and blacklisted all cryptocurrency addresses linked to the scam.

While SlowMist’s swift actions contribute to the ongoing battle against fraudulent operations, such as phishing scams, all crypto users are advised to exercise caution. This latest incident serves as a reminder of the evolving tactics employed by cybercriminals in targeting crypto users. It underscores the importance of remaining vigilant in the ever-changing landscape of digital security.

In the cryptocurrency market, a phenomenon known as “altcoin season” has started to capture the attention of users and experts. This term refers to a period when alternative cryptocurrencies (altcoins) outperform the leading digital currency, Bitcoin. Recent market data suggests that such a season might be on the horizon, with notable shifts in Bitcoin dominance and promising indicators across various metrics.

Bitcoin’s Dominance Retreat

For months, Bitcoin seemed content at the $35,000 level, consolidating its position. However, the recent scenario paints a different picture. Altcoins have taken centre stage, showcasing notable price performances and causing a dip in Bitcoin dominance by almost 1.5% in just a week. This marks the most significant drop since August, signalling a potential shift in market dynamics.

Indicators Pointing Towards Altcoin Season

Several indicators are pointing toward the emergence of an altcoin season. Analysts report a substantial increase in altcoin sector market valuations since the last cycle peak. The total value locked across all chains has reached a three-month high, and even “Bitcoin Ordinals”, typically associated with meme coins and NFTs, have experienced a boost. These signs collectively suggest a growing momentum in the altcoin market.

Defining Altcoin Season

While there is no official declaration for the commencement of an altcoin season, a popular approach suggests that 75% of the top 50 altcoins, excluding stablecoins and asset-backed tokens, should outperform Bitcoin for 90 consecutive days. If this condition is met, it is argued that altcoin season is in full swing.

The crypto market recently transitioned out of the “Bitcoin season” zone. Historically, even under the best circumstances for altcoins, reaching the “Altcoin season” area has taken several months. However, major catalysts are required to favour altcoins. With the anticipation of a potential spot Bitcoin ETF approval in the coming months, the attention might remain on Bitcoin in the short term.

Bitcoin’s Response and Potential Implications

In response to the recent surge in altcызoin performance, Bitcoin set a new 2023 high, surpassing $37,000. This move coincided with rumours about negotiations between the SEC and Grayscale to transform GBTC trust into a spot Bitcoin ETF. The market is now closely observing Bitcoin’s trajectory, considering the possibility of a further ascent to $40,000.
However, a potential bearish divergence can appear, hinting at fading bullish momentum and the likelihood of a price correction. The ascending channel could be crucial in determining the future direction of Bitcoin’s price.

As the cryptocurrency market witnesses shifts in dynamics, the possibility of an altcoin season looms. While indicators point towards a favourable environment for altcoins, the market’s focus on Bitcoin and potential regulatory developments could influence the short-term narrative.