Today in Crypto: JPMorgan Partners with 6 Indian Banks on Blockchain-Based Interbank Transactions, APPG Makes 53 Crypto Recommendations to the UK Government, Charles Hoskinson Warns About the Rise in AI-generated Frauds

Get your daily, bite-sized digest of cryptoasset and blockchain-related news – investigating the stories flying under the radar of today’s crypto news.
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Banking news

• JPMorgan partnered with six Indian banks to settle interbank dollar transactions in real time, 24 hours a day, 7 days a week, on its blockchain-based trading platform, Onyx, Bloomberg reported. The major investment bank will run a pilot project over the coming months with HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, IndusInd Bank, and JPM’s own banking unit at Gujarat International Finance Tec-City (GIFT). The blockchain project aims to expand the capacity of the existing settlement system, said JPMorgan’s senior country officer Kaustubh Kulkarni.

Regulation news

• The Crypto and Digital Assets All Parliamentary Group (APPG) made 53 recommendations to the UK Government on a number of key areas, including the country’s approach to the regulation of crypto; the role and the current approach of UK regulators, including the Bank of England; the potential offered by central bank digital currencies (CBDC); and risks faced in terms of Consumer Protection and Economic Crime. APPG published these findings of their inquiry in a report titled ‘Realising Government’s Vision for the UK to Become a Global Hub for Cryptocurrency & Fintech Innovation’ on Monday, which “sets out the primary issues and considerations for policymakers when developing future regulation for the cryptocurrency and digital asset industry in the UK,” they said. 

Security news

• Cardano founder Charles Hoskinson warned about the rise of AI-generated fraud, with the technology increasingly being used to spread misinformation and swindle investors. In a Twitter broadcast on Sunday, he discussed “the future of scams” and said that the problem is that AI technology is growing exponentially. “And as a result of it growing exponentially, what will occur within a 12-month to a 24-month horizon – so likely next year – will be that videos [and audio] of me could be manufactured using generative AI to make it appear that I’m calling you, talking to you, or soliciting your money,” Hoskinson said, adding that “thousands of people are going to fall for that.”

Legal news

• The Blockchain Association called the US Treasury Department‘s decision to sanction Tornado Cash “unprecedented and unlawful,” according to a new amicus brief. “The decision of the Office of Foreign Assets Control (“OFAC”) to sanction Tornado Cash – privacy-protecting software used on the Ethereum blockchain – raises serious regulatory and constitutional questions that have wide-ranging effects on the blockchain ecosystem and the digital asset economy,” it said. The Blockchain Association, alongside DeFi Education Fund, filed the legal brief in support of Coin Center, which filed a lawsuit against the Treasury Department over the sanctions. 
• Defunct crypto hedge fund Three Arrows Capital (3AC) asked to be included in a bankruptcy mediation process for crypto lender Genesis Global, CoinDesk reported, citing a Sunday filing. “[Genesis’] mediation and plan negotiation efforts will be unable to address consensually the claims of all stakeholders and thereby maximize the value of the Debtors’ estates without the participation of the [3AC] Joint Liquidators,” said a filing made by Russell Crumpler and Christopher Farmer, appointed to represent the 3AC wind-up in the British Virgin Islands.

Investment news

• Demox Labs, a company working on zero-knowledge technology, raised a $4.5 million pre-seed funding round and debuted Leo Wallet, a privacy-focused crypto wallet for use with the Aleo blockchain. Per the press release, the funding round was led by HackVC with participation from DCVC, Amplify Partners, Coinbase Ventures, CRV, OpenSea, and CSquared. The funding will be used to support the creation of zero-knowledge blockchain infrastructure for enterprises, deploy privacy-based frameworks for innovative developers, and advance Leo Wallet’s privacy technology and interoperability with other blockchains, it said. 

Mining news

• Marathon Digital Holdings published its unaudited Bitcoin (BTC) production and miner installation updates for May 2023, reporting that it produced a record BTC 1,245 in May and BTC 4,141 year-to-date; it increased the operational hash rate by 9% to 15.2 EH/s and the installed hash rate by 13% to 20.1 EH/s; and it had unrestricted cash and cash equivalents of $97.3 million and increased unrestricted Bitcoin holdings to BTC 12,259 (c. $333.7 million) as of May 31.