The Crypto Compass Issue #38

Hello to our dear readers and crypto enthusiasts!

From regulatory developments in Hong Kong to technical advancements like ERC-7512, there's no shortage of noteworthy events. In this issue, we'll also dive into Coinbase's latest stance on Layer 2 solutions and what it means for the industry. Here are the top stories that have defined the past week in the crypto world. Let's get started!

Hong Kong Influencer Joseph Lam Disassociates from JPEX Amid Controversy

Hong Kong's popular influencer, Joseph Lam, has publicly distanced himself from the crypto platform, JPEX. Following his arrest and subsequent release on bail, Lam vehemently denied any accusations related to an alleged fraud conspiracy that cost investors a staggering HK$1.37 billion. Although Lam had previously showcased his partnership with JPEX on social media, he has now taken a step back, shutting down his company and ceasing all operations tied to JPEX. The controversy took a further twist when JPEX began deregistering its Australian entity amidst mounting regulatory scrutiny.

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ERC-7512: A New Standard for Onchain Smart Contract Audits

Safe, in collaboration with leading security experts, has introduced ERC-7512, a groundbreaking initiative to represent smart contract audit reports on the blockchain. Addressing the alarming amount of DeFi-related losses in 2023, ERC-7512 promotes transparency by providing a standardized approach to display audits directly on-chain. The proposed standard not only facilitates users and developers by eliminating manual verification but also fosters trust by creating an on-chain reputation system for auditors. Richard Meissner, co-founder of Safe, envisions ERC-7512 as a pivotal step to fortify the security ecosystem of blockchain.

Coinbase's Base Network May Get its Own Token

In a recent interview, Coinbase's Chief Legal Officer, Paul Grewal, revealed that the company might reconsider its initial stance on not launching a new token for its Layer 2 network, Base. Launched in August, Base has witnessed considerable growth, even surpassing daily transactions of its competitors, Arbitrum and Optimism. While the focus currently remains on developing tools and technologies for user experimentation, Grewal hasn't dismissed the potential viability of a Base token in the future. Amidst this, Coinbase continues its advocacy for clearer crypto regulations and anticipates a more proactive regulatory stance in line with global crypto trends.

Happenings of the week

• Laser Digital Asset Management Launches Bitcoin Adoption Fund for Institutional Investor - PDF

• Global regulators look for US guidance on crypto, says SEC official

• The IRS’ crypto tax guidance is a slow creep toward rationality

• Coinbase Obtains Bank of Spain Registration in Spain

• USD Coin and Euro Coin are now exclusively: USDC and EURC

HTX Security Breach: Quick Recap

HTX, once known as Huobi, faced a security breach resulting in the loss of 500 ether (ETH), equivalent to around $8 million. Justin Sun, HTX adviser and Tron founder, quickly took to social platform X (previously Twitter) to address the situation. He assured that while the loss was from one of HTX's hot wallets, which has seen transfers of around $500 million since March, the exchange has fully covered the deficit. Sun emphasized that the lost amount is minuscule compared to the platform's holdings and revenues. Despite the setback, the platform's operations have remained unaffected. In a surprising twist, Sun has offered the hacker a $400,000 bug bounty on the condition of returning the stolen funds, even suggesting a potential role at HTX as a security advisor. Amidst these events, the HT token saw a minor slump of 1.24% over the past day.

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