PayPal allows crypto transfers to outside wallets, Robinhood lets users buy coins directly and what is the biggest motivation for new investors to buy Bitcoin? These stories and more, this week in crypto.
PayPal Expands Crypto Services
PayPal is expanding its crypto services for Venmo users by introducing a new feature that allows its customers to transfer crypto to one another. Venmo, the popular peer-to-peer mobile payment service owned by PayPal, now lets users use QR codes to transact crypto with other Venmo accounts or with external wallets.
Users Can Buy Crypto Directly with Robinhood
Popular trading platform Robinhood has announced “Robinhood Connect,” which lets crypto investors directly buy and withdraw crypto to self-custody wallets using a credit card. The service is currently available to MyDoge and Slingshot wallets, with Phantom and Exodus to come in the future. Robinhood Connect is set to compete against MoonPay and Coinbase Pay.
CFTC’s Largest Ever Bitcoin Fraud
A federal judge has ordered a South African firm to pay $3.4 billion in what the US Commodity Futures Trading Commission says is its largest ever case involving Bitcoin fraud. The judge ruled that Mirror Trading International committed fraud tied to retail foreign-currency transactions when the company solicited Bitcoin from people for participation in an unregistered commodity pool.
Binance.US Drops Voyager Acquisition
Binance.US has decided to drop its $1.3 billion deal to buy the assets of bankrupt crypto lender Voyager Digital. The acquisition met fierce opposition from regulators, but was eventually approved by the court. Now Binance.US says the hostile and uncertain regulatory climate in the U.S. has led to their decision to withdraw.
Mastercard Launches Crypto Credential Service
Mastercard is launching a service designed to ensure transactions between wallets are verifiable and compliant. Beginning with transfers of crypto between countries, the Mastercard Crypto Credential service will use a common set of standards that allows wallets to be identified in transactions that are compliant with requirements. The aim is to prevent money-laundering, terrorist financing, and other fraud activity.
Hong Kong – A Crypto Hub
The Hong Kong Monetary Authority said in a letter that banks should support regulated digital asset businesses with their legitimate need for bank accounts. The regulator said that lenders should avoid a “wholesale de-risking approach” which would turn away potential participants, and encouraged lenders to train staff and form dedicated teams to support the sector, efforts which would align with the state’s aim of becoming a crypto hub.
Hacked AT&T Accounts Lead to Crypto Theft
A gang of cybercriminals hacked into AT&T-issued email addresses and used that access to hack into victims’ crypto exchange accounts. The hackers gained access to a part of AT&T’s internal network, which allowed them to create mail keys for affected users, which in turn let them reset passwords for more lucrative services, such as accounts held at cryptocurrency exchanges.
New Study Reveals Reasons to Buy Crypto
A new study reveals that for nearly a third of new crypto investors, their primary reason for buying was because of a friend’s suggestion. 31% of new crypto investors bought in on advice from friends compared with just 8% of new investors in stocks and bonds. The disparity indicates there is a social element to cryptocurrency investing not seen in traditional markets.
That’s what’s happened this week in crypto, see you next week.