Summary:
• Bitcoin mining difficulty has hit a new All-Time High (ATH) of 39.35 T.
• The NYDFS is investigating crypto exchange Gemini over its claims related to the safety of customer funds.
• South Korea’s Ministry of Justice plans to implement a Virtual Currency Tracking System to monitor transactions and check the source of funds.

Bitcoin Mining Difficulty Hits New ATH

The difficulty of mining a Bitcoin (BTC) block increased by 4.68% on Sunday, hitting a new all-time high (ATH) of 39.35 T. It had hit its previous ATH of 37.59 T following the previous difficulty adjustment on January 15.

Gemini Investigated by NYDFS

The US, New York Department of Financial Services (NYDFS) is investigating crypto exchange Gemini over its claims related to the safety of customer funds. Gemini reportedly claimed last year that the assets of its Earn product customers were safe due to it being backed by the Federal Deposit Insurance Corporation (FDIC). Current and former FDIC officials told Axios that while the FDIC language Gemini used is misleading, it’s unclear whether it actually violates the law.

South Korea Plans Crypto Tracking System

The South Korean Ministry of Justice said it plans to create a crypto tracking system in the first half of 2021, in order to „strengthen the tracking of money laundering using virtual currency and recovery criminal proceeds.“ The “Virtual Currency Tracking System” will be used to monitor transaction history, extract information related to transactions, and check sources funds before and after remittance.

China Should Consider Long-Term Effects Of Crypto Ban

Huang Yiping, a former adviser to China’s central People’s Bank of China (PBOC), said Beijing should consider long-term effects when considering its cryptocurrency ban as reported by South China Morning Post..

FTX Seeks To Remove Turkish Units From Bankruptcy Case

Crypto exchange FTX seeks removal Turkish units from bankruptcy case arguing Turkish authorities are unlikely follow instructions from US courts according court filing stating: “The orders entered this Court do not have legal or practical effect Türkiye Debtors have no reason believe Turkish government will comply with this Court’s orders.“

• Alfa Romeo racing team has secured a $100 million sponsorship from crypto casino Stake.com.
• This is one of the first and biggest crypto-related sponsorships following the crash of FTX exchange.
• Stake has a growing list of partnerships with sports teams and famous personalities.

The crypto gambling platform, Stake.com, based in Australia, has made a landmark move by entering a partnership agreement worth $100 million with the Alfa Romeo Racing team. This marks one of the biggest, and first, crypto-related sponsorships since the catastrophic collapse of FTX exchange, which was widely known for its high-level and wide-reaching sponsorships.

The new year has brought with it a sense of optimism towards the markets, with Bitcoin rallying up around 40% year-to-date and on-chain data increasingly indicating that the worst may have passed. This resurgence in the crypto market, particularly with the rally of Bitcoin, has seemingly led to an increased interest in crypto-related sponsorships.

As part of the partnership agreement with Stake, the racing team will be adopting a new name, „Alfa Romeo F1 Team Stake“, and will be part of a long-term collaboration, as per the official statement. Bijan Tehrani, co-founder of Stake.com, commented on the partnership by saying that it will open up new opportunities for fan engagement through brand integration and activation, and that the company is dedicated to improving race weekends by providing unique experiences for fans and increasing engagement in the digital space.

Stake has a growing list of partnerships with sports teams and famous personalities. The company has previously signed a deal with Everon football club, which was considered to be one of the most valuable sponsorship agreements in the team’s history. Additionally, it also collaborated with the rapper Drake for a Bitcoin giveaway.

The Alfa Romeo F1 Team Stake partnership with Stake.com is a further indication of the renewed interest in crypto-related sponsorships, and a sign that the bear market may finally be over. With Bitcoin prices continuing to rise and the crypto market looking to make a comeback, we may be seeing more of these kinds of partnerships in the near future.

Bulletpoints:
• Enjin Coin Price has surged by 68.9% in two weeks
• An update for the War of Ants mobile game has been released
• The update fixed several bugs, removed the menu wallpaper and introduced interstitial ads

Enjin Coin has been experiencing a tremendous surge in price lately, with its value growing by 68.9% in two weeks. The NFT and gaming platform has seen its price skyrocket by 59.7% in a month, with its value currently dodders at $0.42. Bulls were able to successfully conquer resistance at $0.40, flipping it into immediate support.

To keep up with its growth, Enjin Coin has announced new updates for one of its games, War of Ants. The mobile strategy game, which is fueled by war, is a real-time PvP experience. Players are in charge of their own ant colony, competing with other colonies throughout the world. The updates for the game fixed several bugs, removed the menu wallpaper and introduced interstitial ads. Additionally, some units were nerfed and buffed to provide a better gaming experience.

The Enjin Coin ecosystem is continuing to expand, with the updates for War of Ants being just one example of the team’s dedication to product development. With its growing popularity, many investors are asking whether Enjin Coin will be able to reclaim its all-time high of $1 by next week. Only time will tell, but the outlook is certainly looking bullish so far.

• South Korean crypto exchange Bithumb has been the subject of a „special“ tax investigation by the National Tax Service (NTS) and prosecutors have summoned its suspected largest shareholder for questioning.
• The investigation is being carried out by a branch of the Bureau of Investigation of the Seoul Regional Tax Service and will examine cases of possible tax evasion.
• Prosecution officials are also investigating Bithumb’s owners, which are thought to be highly complex, with many shareholders owning stakes.

South Korean crypto exchange Bithumb has recently become the subject of a „special“ tax investigation by the National Tax Service (NTS). The investigation is being carried out by a branch of the Bureau of Investigation of the Seoul Regional Tax Service and seeks to examine cases of possible tax evasion. In addition, prosecutors have summoned its suspected largest shareholder for questioning.

The investigation was launched on January 10, when NTS officers were dispatched to the headquarters of both Bithumb Korea and Bithumb Holdings, the two companies operating the Bithumb trading platform. The NTS is seeking to “examine the domestic and international transactions of Bithumb Korea, Bithumb Holdings, and affiliate companies.” This is not the first time that Bithumb has been subject to a tax investigation. Back in 2018, the exchange was hit with a tax bill worth over $64 million.

The ownership of the exchange is thought to be highly complex, with many shareholders owning stakes. These include a number of publicly listed companies that have no other ties to the blockchain or crypto industries. As such, prosecution officials are also looking into the owners of Bithumb. This investigation was prompted by the death of the Vice President of one of the publicly listed companies, which was ruled a “suspected suicide.”

The investigation into Bithumb has caused concern amongst its users, many of whom remain unaware of the potential implications for the exchange. This has been further complicated by the fact that the NTS has yet to issue a statement regarding the investigation.

It is unclear how the investigation will impact the exchange, but it is likely that the process will take some time to resolve. In the meantime, Bithumb users are advised to take extra precautions when using the platform, to ensure that their funds remain safe.

• The Chinese government has announced plans to launch a state-backed „non-fungible token (NFT)“ marketplace.
• The platform will go live on January 1 and will be an official “secondary market for digital assets that comply with national regulations”.
• Private blockchain networks and NFTs are being used, but crypto assets are being sidelined in favor of fiat yuan.

The Chinese government has recently made moves to enter the NFT space with its own version of a state-backed „non-fungible token (NFT)“ marketplace. The Hangzhou Internet Court ruled that virtual items such as NFTs can be legally recognized as property, and Beijing is now ready to launch the China Digital Asset Trading Platform on January 1. It will become an official “secondary market for digital assets that comply with national regulations”.

The government is determined to sideline all crypto assets and instead cherry-pick technological advances associated with crypto and the blockchain space. Private blockchain networks and NFTs are part of this picture, but firms have been encouraged to label their products as „digital collectibles“, rather than NFTs, and limitations have been placed on secondary market trading in a bid to reduce „speculation“ on NFT prices. Cryptocurrency will be replaced by the fiat yuan currency, and marketplace transactions will be recorded on centralized ledgers, rather than on the blockchain.

The Chinese government is placing a heavy emphasis on its own version of an NFT marketplace, and it’s clear that it sees potential in digital assets. Although it remains to be seen how this platform will be used, it could be a way of allowing Chinese citizens to access the virtual asset market. It is also possible that this platform could be used to provide a gateway to wider international markets, with digital assets being traded with foreign countries.

The Chinese government’s decision to launch its own NFT platform could be the start of something significant. It will be a test of whether the state-backed model can be successful in a space that has traditionally been dominated by decentralized networks. It will also be interesting to see how the Chinese government will continue to regulate the space, and if other countries, such as the United States, will follow suit.