- Square Crypto has challenged Wright through COPA, an organization it formed last year whose members include Coinbase and Blockstream.
- COPA wants Wright to provide proof that he is Satoshi Nakamoto as part of its response to a cease-and-desist order sent to Square by Wright.
Square Crypto, the cryptocurrency arm of payments company Square, is challenging Craig Wright’s claim to being Satoshi Nakamoto, the creator of Bitcoin and the author of its white paper. The firm has sent a letter to Wright, asking him to provide proof that he is Satoshi.
The letter is a response to Wright’s request for Square Crypto to remove download links to the Bitcoin white paper. Wright had started off with BTC developers on Bitcoincore.org and Bitcoin.org whom he demanded to take down the white paper. The former did in fear of the repercussions of a lawsuit.
Square Crypto is now responding to Wright via the Crypto Open Patent Alliance, an organization it formed in September last year. The alliance tweeted that it was hosting the Bitcoin whitepaper and would stand with its members who chose to. Some of its members include Coinbase, Protocol Labs, Blockstream and ARK.
It further attached a letter it had sent to Wright’s legal team, asking him to prove he was Satoshi.
COPA stands for an open financial system and was formed to remove barriers that stifle innovation. We are hosting the Bitcoin whitepaper and stand with our members and the crypto community to address this issue. Here’s our letter in response to last week’s cease and desists. pic.twitter.com/NfM56rfCEc
— COPA (@opencryptoorg) February 5, 2021
COPA’s letter wants Wright to clarify a number of issues to enable its members to “assess and evaluate [Wright’s claim.”
“Please explain on what basis you assert that your client is the individual behind the pseudonym Satoshi Nakamoto and is the author of the White Paper,” states the first issue COPA wants clarification on. It also requests for the date and location in which Wright wrote the white paper. COPA also wants to know if Wright wrote the white paper alone. If not, it asked for the names of all the other co-authors.
The battle for the white paper
COPA goes on:
On what basis provided for by any applicable international convention does your client claim to be entitled to UK and other copyrights of the White Paper?
It also wants to know whether Wright was employed at the time of writing the white paper. If so, he must clarify if his work on the white paper fell outside such employment.
COPA has given Wright two weeks, which end on February 19, to respond to the questions. It hopes that such a course of action will keep the matter away from court. However, as some pointed out on social media, Wright’s legal team has no obligation to respond. In addition, Square may have exposed its defense beforehand, if the fight for the white paper ends up in court.
@opencryptoorg – you need new lawyers.
You’ve instructed your lawyers to explain your defence before the case. They’ve taken your money without saying that this is a matter for discovery & depos, and the plaintiff-to-be has no need to conduct the case before suit is filed.
— iang (@iang_fc) February 5, 2021
This is the latest twist in what is becoming a defining moment for the future of digital currencies. Wright, who is the chief scientist at nChain, has long claimed to be Satoshi Nakamoto. Many have dismissed him, including Ethereum founder Vitalik Buterin who called him a fraud.
For years, the back and forth has been limited to social media. However, with Wright going to court, it has taken a new dimension. Already, there are those that have heeded his request to take down the Bitcoin white paper.
Wright has indicated that he intends to do much more aside from requesting BTC-affiliated sites take down the white paper. Being in the Bitcoin SV camp himself, he believes that BTC and Bitcoin Cash (BCH) are infringing copyright by using the Bitcoin database. Wright’s legal team stated in its letter to Square Crypto:
We should add that our client, and others associated with him, have further rights relating to the Bitcoin technology and the Bitcoin name. It is their firm intention to enforce such rights in due course.
Central Bank of Spain requires cryptocurrency companies to register in the country
The Bank of Spain (BDE) made available on Thursday (21) an electronic form for registering individuals and companies wishing to initiate or formalize operations with cryptocurrencies. The call comes a week after the agency formally sent a notice on the subject to the country’s financial institutions.
According to the BDE, registration is mandatory for companies operating in the cryptocurrency sector, regardless of whether they already have registration with the country’s central financial agency, that is, even banks. Such a requirement could confuse financial entities already licensed in Spain, as they are already directly supervised, Coindesk commented.
“The obligation to register in this form applies to all individuals or legal entities that provide exchange services between virtual and fiduciary currency and custody, regardless of whether they are also registered in other administrative records at the Bank of Spain or other competent authorities”, says a short excerpt from the BDE instructions.
Another point is what clarifies the BDE about the registration of individuals who work in the exchange service in Spain, such as P2Ps. Something that the central bank makes clear is that these actors must register “regardless of the location of the service recipients”. However, both individuals and corporations will have to adapt or revise their money laundering policy.
Entities now have one week to start the registration process and deliver documentation. The BDE advises that “it is advisable to submit all documents complete from the start to avoid delays in processing the order”.
Cryptocurrencies in Spain
About four months ago, the BDE said it would provide instructions and the necessary forms to apply for registration. But the instructions have only just arrived, with just 7 days to go before the registration deadline.
Another point of action by the BDE is the lack of clarity, since the entity works as the country’s central bank, but under the supervision of the European Central Bank (ECB).
The Spanish bank BBVA, for example, already has a bitcoin trading and custody service in Switzerland. CaixaBank, the third largest Spanish bank, is also preparing to explore the cryptocurrency sector with startup Onyze.
This Is What Jack Dorsey’s Cryptic ‘705742’ Tweet Might Mean
A simple but cryptic tweet from Jack Dorsey, Founder and CEO of Twitter and payments firm Square, has sparked a debate about the meaning of the post, and whether the well-known Bitcoin (BTC) advocate has any BTC-related plans that have yet to be announced.
As pointed out by many users replying to the thread, the tweet, saying just “705742,” likely refers to a block number on the Bitcoin blockchain. A block with that number was indeed mined on Tuesday at 20:14 UTC, but it is still unknown what else is special about the particular block.
Been updating block explorer for the last 7 minutes— Katie The Russian (@KatieTheRussian) October 19, 2021
Twitter users were quick to pull up the bitcoin block explorer to see if there was anything unusual about block 705742, which at that point had yet to be mined. However, little out of the ordinary could be found.
Others, meanwhile, joked that the number could be Dorsey’s “[end of year] price target for bitcoin,” or that it could be somehow related to “Moscow time,” – bitcoin slang for the value of 1 USD in satoshis.
Speculating further, one user on Reddit suggested that the block number could be the first block to be mined by a new mining system that Dorsey has proposed.
“Maybe the first block that Square mined as part of their [research & development] for a potential public mining platform,” the user wrote, before adding that it looks like the wallet that received the block reward already has both in and outbound transactions worth almost USD 2bn. “Seems like a plausible volume for Square/Cashapp,” the user added.
However, according to various Bitcoin blockchain explorers, the block in question included 2,787 transactions and was actually mined by the BTC.com pool. Moreover, the block was mined almost an hour after the tweet was published.
In either case, as reported, the latest tweet from the Twitter CEO followed another thread from last Friday, where Dorsey said that Square is considering building “a bitcoin mining system based on custom silicon and open source.”
“Mining needs to be more distributed” and it “should be as easy as plugging a rig into a power source,” Dorsey wrote, asking his followers what the biggest barriers are for people who want to run miners.
Facebook Finally Launches Digital Currency Wallet Novi but Senators Want to Close This Project
Amid the Facebook Novi launch, some federal legislators want the social media giant to discontinue the project.
Facebook Inc (NASDAQ: FB) has launched the pilot phase of its digital currency wallet Novi in the US and Guatemala using stablecoin Paxos. Facebook finally launches Novi and is going with Paxos’ USDP after its own native crypto Diem failed to secure regulatory approval. Furthermore, the social media giant heralded the pilot launch in a blog post on Tuesday.
Novi’s pilot launch is more than two years after it was first announced. The wallet will facilitate fast, secure, and free fund transfers between users via mobile smartphone apps. However, all users must register with government-issued identification.
For now, Paxos’ stablecoin will serve as Novi’s transactional currency, while powerhouse exchange Coinbase will provide custodial services. According to David Marcus, head of Facebook’s Novi wallet, this pilot phase will, “test core feature functions, and operational capabilities in customer care and compliance.” Furthermore, it will test the viability of stablecoins as a valid and sustainable form of payment.
Facebook Launches Novi to the Disapproval of US Congress
Amid the Facebook Novi launch, some federal legislators are calling for the social media giant to discontinue the project. Senate Democrats addressed a letter to Facebook CEO Mark Zuckerberg on Tuesday questioning the company’s credibility with crypto. In their own words, Facebook “cannot be trusted to manage cryptocurrency”. The senators base this conviction on the social media company’s past inadequacies in handling cyber risks and keeping consumers protected. Signed by Senators Brian Schatz, Sherrod Brown, Elizabeth Warren, and others, the letter read:
“Facebook is once again pursuing digital currency plans on an aggressive timeline and has already launched a pilot for a payments infrastructure network, even though these plans are incompatible with the actual financial regulatory landscape — not only for Diem specifically, but also for stablecoins in general.”
Part of the Congress letter to Facebook further states:
“We urge you to immediately discontinue your Novi pilot and to commit that you will not bring Diem to market.”
Facebook responded to the Senators’ query through a spokesperson for Novi, suggesting that the company would address the issues raised therein.
Facebook Has a Long-Running History with Federal Lawmakers over Its Operational Practices
In recent times, Zuckerberg and Facebook have locked horns more frequently with Congress. Back in 2019, Congress summoned the Facebook CEO to provide testimony on the Diem project (then called Libra). Zuckerberg’s summoning was the culmination of weeks of tussling, between Facebook and the federal lawmakers, who were skeptical of the project. In addition, the Zuckerberg hearing came just a year after Facebook’s Cambridge Analytica scandal. This may have been another reason federal legislators were agitated against the company.
Another recent red flag raised against Facebook was earlier this month from whistleblower Frances Haugen. Haugen appeared before the Senate Commerce Committee to testify on the threat Facebook posed to users. Some of these include the usage of Facebook itself and other affiliated services, such as photo and video-sharing behemoth Instagram.