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Democratic Senators Push Against Meta’s Idea of Bringing the Metaverse to Teens

▪️Meta, the social network company, is getting some pushback on its plan to market and bring Horizon Worlds, its flagship metaverse app, to teens. Democratic senators Ed Markey and Richard Blumenthal directed a letter to the company to halt these actions, citing concerns about the interactions that teens could have in Meta’s virtual worlds.

Two Democratic senators have written a letter asking Meta to stop its recently reported plan of opening its metaverse world to teens. Ed Markey and Richard Blumenthal, Democrat senators from Massachusetts and Connecticut, criticize the idea of opening Horizon Worlds, Meta’s flagship metaverse app, to teens 13 years and up, citing diverse factors that might endanger them through the interactions available in this virtual world.

The letter differentiates between standard virtual reality experiences and Horizon Worlds, explaining that “the cumulative set of immersive virtual reality experiences a teenager would confront on the socially-driven Horizon Worlds are distinct from their use of a virtual reality headset to, for example, play a specific single-player game. Inviting young teens into this environment, therefore, poses serious risks.”

Markey and Blumenthal call for halting the plan to protect the health of these young users and their privacy in the metaverse, calling out the company for its previous mistakes involving this demographic.

The Wall Street Journal reported on Meta’s plan of including teens in its metaverse on Feb. 7. According to an internal memo obtained by the news outlet, the company’s new strategy included opening the Horizon Worlds experience to teens aged 13 years old and up. This would constitute a change from the current policies of the app, which only allows users from 18 years old to roam the virtual world.

According to WSJ, Meta’s memo reinforces the need of pushing these services to young users in order to keep growing. Horizon Worlds VP Gabriel Aul reportedly stated:

🔝Today our competitors are doing a much better job meeting the unique needs of these cohorts. For Horizon to succeed we need to ensure that we serve this cohort first and foremost.

While Horizon Worlds experienced rapid growth in its initial stages, growing its user base tenfold soon after release in Decemeber 2021, the app has been criticized for its buggy state even by Meta’s own employees. In October, VP of Metaverse Vishal Shah acknowledged that the issues present in the app hampered the experience for its users and that even employees of the company were not spending much time using it.
🏦Silvergate Bank Announces Voluntary Liquidation as Crypto Industry Woes Persist

At 4:30 p.m. Eastern Time, Silvergate Bank announced its intention to wind down the crypto-friendly bank’s operations and voluntarily liquidate the company’s assets. The news follows significant financial troubles the bank faced, and the firm’s stock plummeted in value.

Over the last six months, Silvergate Capital Corporation’s (NYSE: SI) stock dropped 94.82% against the U.S. dollar as the company faced significant financial troubles tied to its exposure to the now-defunct crypto exchange FTX. On Wednesday, March 8, 2023, the company announced it was winding down operations and plans to liquidate the bank. Four days ago, Silvergate discontinued the firm’s Silvergate Exchange Network payment platform.

“In light of recent industry and regulatory developments, Silvergate believes that an orderly wind down of bank operations and a voluntary liquidation of the bank is the best path forward,” the company’s press release detailed.

“The bank’s wind down and liquidation plan includes full repayment of all deposits. The company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets,” Silvergate’s statement added.

💫Silvergate’s stock closed Wednesday at $4.91 per share after the stock shed 40.99% in USD value over the last five days. Last week, it told the U.S. Securities and Exchange Commission (SEC) that it had to delay its annual fiscal earnings report, and the bank’s stock was downgraded by banking giant JPMorgan. In the filing, Silvergate mentioned its “ability to continue as a going concern,” and it also noted that it faced regulatory scrutiny from U.S. officials.
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Cryptocurrency Turnover Growing in Russia, Watchdog Reports to Putin

Use of cryptocurrencies is increasing in Russia, the head of the country’s financial watchdog has informed President Putin. The agency, Rosfinmonitoring, is following thousands of participants in digital asset transactions with a new blockchain analytics system, the official revealed.

The turnover of crypto assets in Russia is growing, according to Yury Chikhanchin, director of the Federal Financial Monitoring Service of the Russian Federation, who reported to President Vladimir Putin about the agency’s current operations.

The watchdog is monitoring the activities of over 25,000 participants in crypto transactions, the executive revealed at a meeting with the head of state. The service has also identified around a dozen financial organizations that provide assistance to them.

Quoted by the business news portal RBC, Putin remarked that wherever money or new financial instruments appear, “swindlers” appear as well. Chikhanchin admitted that the use of cryptocurrency is increasing in Russia in the absence of comprehensive regulation.

“We believe that the cryptocurrency turnover today is more than 630,000 bitcoins,” he detailed without elaborating. At current rates, that amount of BTC nears $13 billion in fiat equivalent. According to an estimate quoted by the Bank of Russia in 2021, the annual volume of crypto transactions made by Russians at the time was around $5 billion.

Rosfinmonitoring has carried out about 120 crypto-related investigations and initiated over 60 criminal cases. Chikhanchin pointed out that this was possible thanks to the launch of Russia’s new ‘Transparent Blockchain’ platform.

“A year ago, the service could only track bitcoin, but using this system allows you to see the movements of more than 20 different crypto assets,” the official explained. The crypto analytics tool is currently undergoing tests at the Ministry of Internal Affairs, the Federal Security Service, and the Investigative Committee.
The Pokémon Company Might Be Preparing to Make Moves in the Metaverse

The Pokemon Company
, a corporation in charge of the development of the Pokemon brand, might be preparing to make some moves regarding the franchise and the metaverse. The company has opened a job opportunity that includes experience and knowledge of fields like blockchain, Web3, and the metaverse as a requirement, including connections with investors in these areas.

The Pokemon franchise might be taking its brand to the metaverse. Fans of the franchise believe that the opening of a new job position involving metaverse and Web3 knowledge could hint at the company moving in this direction. The company is not directly responsible for developing Pokemon games, and is more involved in the development of the brand and the distribution of its products.

The company is currently seeking a “Corporate Development Principal,” that will be responsible for the construction of strategies and partnerships to grow the Pokemon Company, bringing new ideas and developments for the brand. However, the role also includes two requirements that hint at an approach of the company to the metaverse.

These requirements include having “deep knowledge and understanding of Web3, including blockchain technologies and NFT, and/or metaverse,” and being “deeply connected to a network of investors and entrepreneurs” in these industries.

This job opening has fans fearing that Nintendo might be planning to release a series of NFTs or to prepare a metaverse based on the franchise. Twitter user Rogue reacted negatively, rejecting the possible development, posting:

I think a lot of people boutta drop interest in pokemon. This, to me, as a 10-year player, scares me.

Although other companies like Niantic have already developed virtual reality-enhanced Pokemon games like Pokemon Go, Nintendo has been apprehensive when it comes to dealing with NFTs and the metaverse. In February 2022, Nintendo president Shuntaro Furukawa stated that while the metaverse had great potential, the company would have to be able to offer new and fresh experiences to experiment with it. Furukawa explained:

We might consider something if we can find a way to convey a ‘Nintendo approach’ to the metaverse that many people can readily understand.

This differentiates Nintendo from other game developers that have already included NFTs, Web3, and metaverse experiences as part of their business plans, like Square Enix, Bandai Namco, and even Sega.
🇷🇺Russian Crypto Industry Queries Government About Proposed Criminal Liability for Miners

The organization representing Russia’s crypto sector has asked the government in Moscow to clarify a proposal to introduce criminal liability for “gray” miners. The draft legislation seeks to punish those who fail to report their income to the state and share information about their digital assets.

🟢The Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib) has asked Finance Minister Anton Siluanov to explain a proposal made by his department to introduce penalties for cryptocurrency miners violating the law.

🟢In a letter addressed to Siluanov, the industry organization requests an opportunity to get acquainted with the respective draft amendments to the Criminal Code put forward by the Ministry of Finance, which provide for the prosecution of miners for tax evasion, for example.

Racib is referring to a package of texts sent by Deputy Finance Minister Alexey Moiseev to the Ministry of Economic Development, the Ministry of Justice, the Federal Tax Service, the Central Bank of Russia, and other government institutions in February.

The provisions oblige mining companies in Russia to report their income and provide tax authorities with detailed information about their digital asset holdings, including wallet addresses, in order to avoid criminal liability. Penalties for failure to do so include hefty fines and even prison time. Quoted by RBC Crypto, Racib’s letter states:

This document has caused a lot of confusion and questions in the digital economy business community.

The association is asking Anton Siluanov to share the proposals with it so that its experts can study them. Furthermore, Racib insists that the minister includes its representatives in the working group drafting the legislation that will regulate cryptocurrencies in Russia. A bill devoted to crypto mining is to be resubmitted to the State Duma along with the amendments to the Criminal Code.
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📌Argentine Tax Authority AFIP Detects Irregularities in 184 Digital Wallet Tax Statements

💎The Argentine tax authority (AFIP) is increasing its scrutiny when it comes to digital wallets. The institution recently revealed it found irregularities in at least 184 tax statements that include digital wallets and cryptocurrencies. These taxpayers did not include their wallet holdings as part of their 2021 tax statements, leaving close to $7.6 million in such assets undeclared.

✖️The Argentine tax authority has ramped up its vigilance for digital and cryptocurrency taxes. Recently, the institution announced that it had discovered a series of irregularities that involved at least 184 taxpayers, who failed to refer to their digital and cryptocurrency holdings in their tax statements.

➡️The scrutinized tax statements, corresponding to fiscal year 2021, involve a difference of close to $7.6 million in assets undeclared, which will have to be paid according to rules for existing estate taxes.

➡️The AFIP explained this was the result of cross-referencing the data provided by taxpayers with the information available in the databases of the institution, which let it know some individuals underreported their holdings in crypto and digital wallets, while others did not report their holdings in their entirety.

🟢The findings of the Argentine tax authority are possible due to the information that both digital wallet providers and cryptocurrency exchanges must deliver to the institution in order to comply with national laws. Part of this information delivered includes the ID data of the owners of the accounts, their account balances, and a detailed list of movements, including the destination of the transacted funds.

🟢While some users have moved their transactions to P2P exchanges, the common movement of funds, and the amounts moved can also bring the attention of the AFIP to them, according to national analysts. Roberto Sanchez, of PWC Argentina, told Iproup about the rise in this kind of transaction. He stated:
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💲💲💲Nigerian Digital Currency Transactions up 63% Says Central Bank Boss💲💲

📈According to the 🇳🇪Nigerian central bank governor, central bank digital currency or e-naira transactions have gone up 63% to $47.7 million, while the number of downloaded wallets since Oct. 2022 is around 13 million.

The value of Nigeria’s central bank digital currency (CBDC) transactions surged by 📈 63% to $47.7 million (₦22 billion) while about 13 million e-naira wallets have been downloaded since Oct. 2022, the Nigerian central bank governor has said.

After the Nigerian Supreme Court ruled against the demonetization process, the CBN relented and now has said the previously demonetized banknotes will remain legal tender until the end of the year.

Emefiele claimed that more than 4 million e-naira wallets had been opened as a result.

🗣“The e-naira has emerged as the electronic payment channel of choice for financial inclusion and executing social interventions,” Emefiele added.

➡️Although the CBN is thought to have minted more than ₦10 billion of the digital currency, according to the governor only ₦3.4 billion of the CBDC is in circulation.
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💲Analyst Predicts Gold Prices Might Exceed $8,000 in the Next Decade as Central Banks Lose Confidence in Foreign Currency

Jan Nieuwenhuijs
, a gold market analyst, has predicted that gold might exceed prices of $8,000 during the next decade.

Nieuwenhuijs states:

🗣️Central banks in aggregate have an unusual faith in foreign exchange, as gold’s percentage of total reserves accounted for 16% in 2022, against a historical average of 59%. These central banks, however, are starting to lose confidence in the currencies issued by their peers.

According to his model, if central banks stockpile 51% of their reserves in gold, the price of gold would reach $10,000 per troy ounce.

Central banks have been stockpiling gold in recent times. In 2022, central banks purchased a record amount of gold, with reserves going up by 1,136 tons, while reserves held in the form of foreign currencies went down by $950 billion. In Q3 2022 alone, close to 400 tons of gold were purchased by central banks, according to reports from the World Gold Council.

🇹🇷Turkey was the country that purchased the most gold, acquiring 23 tons.

Other personalities have also alerted about the rise of gold and other scarce assets, such as bitcoin. Robert Kiyosaki, author of the best-selling book Rich Dad, Poor Dad, predicted in February that gold could reach $5,000 by 2025, also signaling the possibility of bitcoin reaching $500,000.
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🟢Crypto Exchange By bit Partners With Innovation Growth Hub to Launch Blockchain Education Program

By bit has said it is inviting African youths that wish to attend a blockchain education training program to submit their applications.

The training program is expected to help young people learn and understand the fundamentals of blockchain, as well as how this creates new opportunities.

According to a local report, experts in the blockchain field are expected to lead or oversee the interactive discussions and online lectures. An unnamed spokesperson for Bybit is quoted in the report highlighting the importance of the training program.

🗣️“Our goal is to give young people the knowledge and skills they need to understand and engage with blockchain technology. Hence, we will work together with Innovation Growth Hub to create a unique learning experience for participants,” the spokesperson said.
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🔔Bitcoin Profits Deemed Taxable by Denmark’s Supreme Court

Profits made from the sale of bitcoin are taxable in 🇩🇰Denmark, the country’s Supreme Court has decided in two separate rulings announced on Thursday.

The Supreme Court assumes that bitcoin is generally only acquired with a view to being sold and, to a limited extent, to be used as a means of payment.

The rulings that profits made from the sale of the cryptocurrency are taxable are likely to set a precedence for the tax treatment of crypto investments in the Scandinavian country.

National authorities in the 🇪🇺European Union have been taking steps to clarify the taxation of crypto holdings and related profits.
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‼️ECB Member Fabio Panetta Claims Rising Profit Margins Could Be Fueling Inflation

Fabio Panett
a, a member of the executive board of the European Central Bank (ECB), has stated that companies increasing their profit margins could be helping to fuel inflation.

The current headwinds the world economy is facing could lead companies to raise their profit margins if they are expecting a rise in their costs, which can come from different sources, according to Panetta. He stated:

🗣️“We are probably paying insufficient attention to the other component of income — that is, profits. The situation which prevails in the economy, there could be ideal conditions for firms to increase their prices and profits.”

However, Panetta explained that his statements did not imply that the European bloc would act to control these prices.

Preliminary numbers issued by the European Union indicate that March finished with a 6.9% inflation rate, cooling down from the 8.5% reached in February.

📌This means that the ECB will likely keep raising interest rates in the foreseeable future, as it embraces its data-dependent approach.

On March 16, the ECB raised interest rates by 0.5%, with President Christine Lagarde stating that inflation was “projected to remain too high for too long,” with levels being still very far from the 2% goal proposed by the institution.
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🔝Trustwave Spiderlabs Researchers Warn of New Strain of Malware That Drains Crypto Funds

According to researchers at Trustwave Spiderlabs, a strain of malware known as Rilide is believed to be helping cybercriminals steal funds from cryptocurrency exchanges. Although the steps being taken to tackle this malware are likely to make life more difficult for cybercriminals, two researchers — Pawel Knapczyk and Wojciech Cieslak — said this alone may not be enough to “solve the issue entirely.”

Researchers at Trustwave Spiderlabs recently said they discovered a new strain of malware which clandestinely draws funds from crypto wallets. According to the researchers, the malware, known as Rilide, is thought to disguise itself as a legitimate Google Drive extension. Besides giving cybercriminals the ability to monitor the browsing history of their targeted victims, Rilide enables the injection of “malicious noscripts to steal funds from cryptocurrency exchanges.”

In their blog post published on April 4, the two researchers Pawel Knapczyk and Wojciech Cieslak concede that Rilide is not the first malware to use malicious browser extensions. However, the researchers said they have seen how the malware tricks users before it drains funds from their respective crypto wallets.

🗣️ “Where this malware differs is it has the effective and rarely used ability to utilize forged dialogs to deceive users into revealing their two-factor authentication (2FA) and then withdraw cryptocurrencies in the background,” the researchers argued.

While steps such as the pending enforcement of the so-called manifest v3 are expected to make life a little more difficult for cybercriminals, Knapczyk and Cieslak assert that this alone may not be enough “to solve the issue entirely as most of the functionalities leveraged by Rilide will still be available.”
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✔️Strategist Expects US Recession by Year-End, Fed Tightening to Drag Down Economy

Investment bank MPS Capital Services has warned that the U.S. economy will be in a recession by year-end.

MPS Capital Services is an Italian corporate and investment bank, part of the banking group that includes Banca Monte dei Paschi di Siena SpA. The strategist was quoted as saying:

🗣️We expect the recession in the U.S. by year-end … The tightening of the monetary policy will drag down on the economy.

Mannucci predicts that the Federal Reserve will raise interest rates by an additional 25 basis points, while the European Central Bank (ECB) is expected to increase rates by at least two quarter-points.

The MPS strategist further warned that the failure of several regional U.S. banks, along with the issues faced by Credit Suisse, could result in tighter credit conditions and hurt the economy.
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🇪🇺Europeans to See More Interest Rate Hikes, Central Bank Governors Indicate

Further rate hikes are warranted by persisting inflation in the eurozone, according to members of its monetary authority’s decision-making body.

Two central bank governors, with different opinions about how aggressive the European Central Bank should be, nevertheless agree that more increases of key interest rates are yet to come.
CBDC Debate Heats Up: BIG Project Sparks Controversy Among Critics; Lynette Zang Warns of Dangers of CBDCs

During the weekend, discussions about central bank digital currencies, or CBDCs, trended on social media as many people believe the idea will result in increased financial surveillance and a totalitarian monetary system. In a recent interview, Lynette Zang, the chief market analyst at ITM Trading, warned that CBDCs will

🗣️“take the world into a full surveillance economy that can be controlled directly by the central bank.”

During the weekend, discussions about central bank digital currencies, or CBDCs, trended on social media as many people believe the idea will result in increased financial surveillance and a totalitarian monetary system. In a recent interview, Lynette Zang, the chief market analyst at ITM Trading, warned that CBDCs will “take the world into a full surveillance economy that can be controlled directly by the central bank.”
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🔥African Blockchain Business Funding Rose 4️⃣2️⃣9️⃣🔤 in 2022 — Report

In 2022, African blockchain businesses raised a total of $474 million, a 429% increase from what was raised in the year earlier, the latest CVVC African blockchain funding report has revealed.

According to the latest CVVC Africa Blockchain funding report, blockchain businesses from the continent raised $474 million in 2022, a year-on-year funding increase of 429%.

➡️Regarding individual countries with the biggest share of the total funding, the report showed that South Africa (37.3%) and Seychelles (43.9%) alone received more than 80% of the total. Nigeria, which accounted for the second-highest share in 2021, had nine deals with a total value of nearly $16 million, just 3.4% of the total funding.

Besides Nigeria and Egypt — the only countries from the continent to have recorded a decrease in the value of funds raised — the report data indicates that the rest of the tracked countries recorded significant funding increases.
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