BNB Chain Was the Most Targeted Chain in Q2 with 36 Incidents, Crypto Scammers Posing as Canadian Police Officers, Bill to Exempt Foreigners in Israel from Crypto Taxes Passes Preliminary Reading

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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Security news

• Bug bounty and security services platform Immunefi released its Crypto Losses in Q2 2023 Report, which found that in Q2, the number of attacks spiked and the number of single incidents increased 65% YoY from 49 to 81. The total number of losses, however, decreased by 60.4% when compared to Q2 2022, amounting to nearly $265.5 million. Overall, there was a total loss of over $702 million across the ecosystem YTD. In Q2 2023, BNB Chain was the most targeted chain, with 36 incidents, followed by Ethereum with 26 incidents, Arbitrum with 10  incidents compared to 0 in Q2 2022, Polygon and ZKSync with 2 incidents each, and Optimism, Sui, and others, with 1 incident each. “We have witnessed a considerable increase in rug pulls, both in terms of stolen funds and the number of incidents,” said Mitchell Amador, CEO of Immunefi. “As bad actors continue to expand their malicious activities and employ increasingly sophisticated scams, users must thoroughly assess projects.”

Scam news

• Canadian police are warning about scammers who are claiming to be Calgary officers while stealing thousands of dollars in cryptocurrency schemes, the National Post reported. Investigators said that in most cases the scammers claim to be a family member who was arrested, while someone impersonating an officer demands money for lawyer fees in bitcoin (BTC). “Scammers often use high-pressure and fear-based tactics in order to receive payment quickly,” said the police. “Do not feel pressured to provide money to strangers and take the time to talk to trusted friends and family to verify the legitimacy of the situation.”

Tax news

• A bill granting the exemption from capital gains taxes on the sale of digital currencies for foreign residents in Israel and other tax benefits passed through a preliminary reading in the parliament. “The significance of last night’s vote outcome is that Israel is wholeheartedly endorsing cryptocurrency. Similar to Rishi Sunak in the United Kingdom and lawmakers throughout Europe, Finance Minister Bezalel Smotrich has invigorated the local sector, and issued a clear call to global investors and companies – Israel invites you to engage in business on our shores,” said an explanatory note.  
• Crypto poses significant tax problems, which could get worse, said a report by the International Monetary Fund (IMF). Among the key problems, “the most fundamental difficulty in taxing crypto assets is that they are “pseudonymous”,” it said. “This can make tax evasion easier. Implementation is thus at the heart of the matter for tax authorities.”

Regulation news

• South Korean Financial Services Commission (FSC) clarified the standards for its employees to report crypto holdings, as defined under the Specific Financial Information Act. According to Decenter, citing an administrative notice, this affects the employees currently performing digital assets-related duties and those who have performed them within the last six months. The FSC also created a new form to report digital asset possession, which requires the employees to disclose the type of digital assets held, the date of purchase, and the amount.

Stablecoin news

• USDC issuer Circle is considering issuing a stablecoin in Japan, as legislation governing stablecoins took effect on June 1, CEO Jeremy Allaire told CoinDesk Japan. He said that Circle is interested in partnerships in this country, adding that if stablecoins become more widely used for cross-border trade, foreign currency transactions, and global commerce, Japan will become an extremely large market.

Investment news

• Data analytics platform CryptoQuant announced that it raised $6.5 million in a Series A led by South Korea-based Atinum Investment. The company said it plans to use the proceeds to recruit for its South Korea and international operations. The Series A brings its total capital raise to $9 million, with previous investments from Galaxy Interactive and Mirae Asset Capital.