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‘Bitcoin never gets hacked’ — crypto players respond to US Treasury breach

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Crypto players were quick to respond to the news that hackers breached the U.S. Treasury Department.

According to a report from Reuters, a “sophisticated hacking group” backed by a foreign government — reportedly Russia, according to three people familiar with the investigation — was able to breach the U.S. Treasury Department as well as the National Telecommunications and Information Administration, or NTIA, with the Department of Commerce.

The incident happened less than a month after Donald Trump fired Department of Homeland Security cybersecurity chief Chris Krebs. However, Reuters stated that the hackers had been monitoring NTIA staff emails run on Microsoft’s Office 365 “for months.” Other government agencies may also have been breached, but sources did not provide additional details.

In response to the attack on such a powerful government agency, crypto players pointed out the advantages of Bitcoin (BTC).

“Bitcoin never gets hacked,” said Kraken’s head of business Dan Held on Twitter. Bitcoin bull Anthony “Pomp” Pompliano echoed Held’s sentiment, saying “Bitcoin has never been hacked.”

Blockfolio took aim at the NTIA’s cybersecurity, implying the agency used dated algorithms for its cryptographic security:

It’s unclear whether any funds have been compromised as a result of the breach. At the time of publication, the hack seems to be limited to information potentially stolen from government agencies’ emails.

“Jokes on them,” said MyCrypto founder and CEO Taylor Monahan. “The treasury’s already been hacked by internal actors.” The statement may reflect the United States government printing more money in 2020 than for nearly entirety of the country’s existence.





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Regulation

New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.