🔒 New Ledger NanoX update compromises seed phrase safety!

Namaste! Welcome to Coinsauce’s daily roundup. Our newsletter will keep you informed and ahead of the curve with daily insights, analysis, and market updates!

Let’s dive straight into the top headlines for the day 👇️ 

1. 🐢 Slow and SEC-various: SEC responds to Coinbase’s plea for crypto regulation.

2. 🔓️ Security Alert: New seed recovery firmware compromises Ledger’s security.

3. 🟢 Green Light: MiCA regulations approved by the EU.

The Coinbase VS SEC saga continues 👀 

The SEC has finally responded to Coinbase's plea for clear crypto regulation, and it seems to be a case of "no rush, no obligation." In court documents filed on May 15, the SEC made it clear that rulemaking may take years, leaving enforcement actions to continue in the meantime. Talk about a slow dance!

The regulator has asked the court to deny Coinbase's plea, saying it's an "extraordinary remedy" they don't see fit to grant. It also states that it will continue to use enforcement actions as a substitute for rulemaking for the foreseeable future. It looks like they are making a statement to the crypto industry that rulemaking isn't going to be a sprint but a marathon that could stretch over the years 🏃 

The regulator also argued it should not be compelled into rule-making for the crypto industry. If there's one thing this response makes clear, it's that the crypto industry is stuck in a maze without a map 😥 

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Ledger’s controversial choices 👀 

Ledger's recent Nano X update has sent shockwaves through the crypto community, igniting a fiery debate. The latest firmware update allows users to subscribe to a recovery tool that encrypts the users’ seed phrase and sends it to different custodians to reconstruct the seed phrase after going through ID verification 🙈 

According to Wired, the three recovery custodians are Ledger, Coincover – a crypto custody firm – and EscrowTech – a code escrow company, and the seed phrases would be shared with them for “further safety” at $9.99 per month 🤡 

The concern around Ledger’s update comes a few years after the company was targeted by a cyberattack in the summer of 2020, leading to the personal information of 270,000 customers being leaked.

However, it’s not all as bad as you think, as users always have the option to opt out of this service and continue to HODL their private keys. Ledger’s USP has always been “Hold your keys”, and the community is not pleased with its latest update. A word of advice to our readers - always remember that when a middleman is involved, security will be compromised sooner or later. So, keep your private keys to yourself and HODL safe.

MiCA Regulation Gets Thumbs Up 👍️ 

In a unanimous decision that had the crypto community buzzing, the EU's Economic and Financial Affairs Council gave the nod to the much-anticipated Markets in Crypto-Assets (MiCA) regulation. This is big news with finance ministers from all 27 member states on board!

A MiCA license will allow companies to operate across the entire EU market under common regulations. Some of the forward-looking rules proposed include 👇️

1. Clear classification of digital assets.

2. Disclosure of relevant information in the whitepaper (Including environmental impact).

3. Mandatory review and approval of business models for stability.

4. Mandatory registration of Service Providers as legal entities in the EU.

5. KYC disclosure requirements (Transfer Rule: A separate law is passed for this), etc

The legislation also provides a framework to prevent market abuse, insider trading and manipulative behaviour in cryptocurrency.

Cryptocurrency service providers and proponents alike have broadly welcomed the approval. Unlike the case with the SEC, MiCa regulations bring clarity and confidence to the world of digital assets. With such regulatory certainty, we hope that the EU could soon become a hub for crypto innovation and development, which would be a big boost for the entire industry ❗️ 

Meme of the day

What owning a Ledger feels like today

That's all for today's Coinsauce Daily Crypto Roundup 📰 We hope you found our coverage engaging, informative, and thought-provoking. Stay tuned for tomorrow's edition, where we'll bring you more breaking news and witty commentary from the exciting crypto world! Until then, trade safely and study Bitcoin!

Disclaimer: This newsletter is educational and does not constitute financial advice. You must exercise caution and conduct your research before making any financial decisions.