New measures to mitigate crypto crashes, Bitbns hacked for $7.5M

Read about this week's developments, news, and trends in the Web3 ecosystem.

New measures to mitigate crypto crashes, Bitbns hacked for $7.5M

Friday March 03, 2023,

2 min Read

Interdependencies in crypto

A report was recently released by Policy 4.0, a think tank for emerging technology, which highlighted the interdependencies in the crypto ecosystem and suggested risk management frameworks to prevent cascading crashes like USDTerra-Luna and FTX.

Given the absence of central regulatory frameworks on crypto, the report proposes the remodeling of existing internal risk frameworks, as well as more coordinated supervision and peer learning around interconnections among blockchain networks and firms.

The report found that crypto contagion was transmitted not only through large actors, but also through "systemically important actors" like Three Arrows Capital (3AC) - a crypto hedge fund that collapsed. Additionally, it found that the risks from the contagion existed not only in centralised finance institutions in crypto but also in decentralized finance (DeFi) systems.

IMF, FSB to prepare crypto regulation paper

India, which currently holds the G20 Presidency, has urged the International Monetary Fund (IMF) and Financial Stability Board (FSB) to collaborate and prepare a technical paper on crypto assets. This paper could aid in formulating a coordinated and comprehensive policy to regulate these assets.

As per a finance ministry statement, the international organisations are scheduled to present their joint paper at the 4th Finance Ministers and Central Bank Governors Meeting in October 2023.

The IMF's discussion paper, policy seminar, and the joint IMF-FSB paper are expected to address policy questions regarding macro-financial and regulatory perspectives of crypto assets. It may facilitate global consensus on a well-coordinated and comprehensive policy approach to crypto assets.

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Bitbns clarifies $7.5M hack

Bitbns, a crypto exchange, has confirmed that it was compromised on February 1. Gaurav Dahake, the Founder and CEO, addressed the issue during a live session on YouTube.

The incident came to light after ZachXBT, a well-known crypto researcher, tweeted about some discrepancies in the exchange's practices. When questioned about the hack, Dahake mentioned during the live session that Bitbns had observed some irregular activities on the platform around the time when Binance, one of the largest crypto exchanges globally, was also targeted in an attack.

He added that the exchange was taken offline for a brief period to investigate the issue. Dahake stated that similar incidents had been observed by multiple exchanges and the movement was not considered unusual.

Edited by Megha Reddy