Hey there, PoI readers! 💫

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. From the US Treasury's controversial DeFi surveillance plans and Pavel Durov's ongoing French legal saga to MicroStrategy's relentless Bitcoin accumulation and Metaplanet's meteoric rise to index stardom, we've got a lot to unpack. So, buckle up and get ready for a wild ride through the wonderland of digital assets!

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INTEL BRIEF

🟧 US Treasury is considering embedding ID verification into DeFi smart contracts, sparking debate about compliance vs. permissionless finance.

🟧 Telegram founder Pavel Durov claims French authorities are still finding zero evidence of wrongdoing a full year after his dramatic August 2024 arrest, while he continues his court-mandated bi-weekly trips to France.

🟧 MicroStrategy founder Michael Saylor is reportedly signaling another Bitcoin purchase, which would mark the company's third BTC buy this August despite their stock hitting four-month lows.

🟧 Metaplanet promoted to mid-cap and added to FTSE indexes, potentially funneling passive flows into Bitcoin while massively outperforming Japanese stocks.

US Treasury Wants to Put ID Scanners Inside Every DeFi Protocol

The US Treasury is apparently exploring the wild idea of shoving identity checks directly into DeFi smart contracts - and let me tell you, the crypto community is having some feelings about it. This brilliant brainstorm comes courtesy of the GENIUS Act.

Imagine every time you want to swap some tokens, the smart contract politely asks for your government ID, maybe a biometric scan, or your digital wallet's hall pass before letting you proceed.

Supporters are cheering from the compliance corner, with Fraser Mitchell from SmartSearch arguing this could "unmask the anonymous transactions that make these networks so attractive to criminals."

Mamadou Kwidjim Toure from Ubuntu Tribe dropped what might be the quote of the year.

Toure warns that tying biometric or government IDs to blockchain wallets would make "every transaction permanently traceable to a real-world person." Suddenly, your DeFi adventures become about as private as posting your bank statement on Instagram.

This could lock out billions of people who don't have formal ID - migrants, refugees, and the unbanked. So much for DeFi's "financial inclusion for everyone" party slogan, right?

Treasury wants to embed ID verification directly into DeFi smart contracts under the GENIUS Act

Critics argue this would destroy DeFi's permissionless nature and create mass surveillance infrastructure

Privacy advocates suggest zero-knowledge proofs and decentralized identity as better alternatives

Telegram Founder Still Trapped in French Legal Limbo After One Year

The Telegram mastermind dropped a Sunday update that's basically the legal equivalent of "still no evidence, folks!" Durov is claiming that after a full year of investigation, French authorities are "struggling" to find anything he or Telegram actually did wrong. That's got to be awkward for everyone involved.

Durov has to return to France every 14 days like some sort of tech executive parole situation. Imagine explaining that travel schedule to your accountant! "Well, you see, I have this mandatory bi-weekly trip to France because..." 🇫🇷

Durov's not mincing words either, calling his arrest "unprecedented" and arguing that holding tech executives responsible for what users do is "legally and logically absurd." He's basically saying "I built the messenger, I didn't write the messages!"

The crypto community and free speech activists went absolutely ballistic when this whole thing started, accusing the French government of trying to pressure Durov into censoring Telegram. Even President Macron had to jump in with damage control, insisting this wasn't politically motivated.

Durov says France has done "irreparable damage" to its image as a free country. That's some serious diplomatic shade right there! Meanwhile, he's claiming Telegram's moderation practices are totally in line with industry standards and they've always responded to legally binding French requests.

Durov says French authorities still have zero evidence after a full year of investigation

He must return to France every 14 days with no appeal date scheduled yet

Claims the arrest damaged France's reputation and was "legally absurd" for holding tech execs responsible for user actions

MicroStrategy Addicted to Buying Bitcoin Despite Stock Price Nosedive

The Bitcoin-obsessed company just dropped $51.4 million on 430 BTC on August 18th, bringing their absolutely bonkers total to 629,376 BTC. That's worth over $72 billion right now.

The market drama, SaylorTracker shows they're still up over 56% on their Bitcoin investment with $25.8 billion in unrealized gains.

MicroStrategy is usually the "go big or go home" type, typically buying thousands or tens of thousands of Bitcoin at once. But August has been surprisingly chill with only 585 BTC across two transactions.

The company's treasurer, Shirish Jajodia, recently dropped some insider knowledge that's actually pretty fascinating. Apparently, MicroStrategy doesn't actually move Bitcoin's price with their massive purchases because they use over-the-counter transactions.

"Bitcoin's trading volume is over $50 billion in any 24 hours" - so even their billion-dollar shopping sprees are like "a drop in the digital ocean."

While Saylor keeps stacking sats like it's going out of style, MicroStrategy's stock has been having a bit of a rough summer vacation. The shares hit a four-month low at around $325 on Wednesday, though they bounced back to $358 by Friday.

Saylor signals a third Bitcoin purchase for August after buying 430 BTC for $51.4 million on Aug 18

MicroStrategy holds 629,376 BTC worth $72+ billion with $25.8 billion in unrealized gains

Company uses OTC transactions that don't impact Bitcoin's market price, despite stock hitting 4-month lows

Japanese Hotel Chain Becomes Crypto Royalty and Joins Major Stock Indexes

Metaplanet just got the ultimate glow-up in FTSE Russell's September review. They've been promoted to the big kids' table with inclusion in both the FTSE Japan Index and the FTSE All-World Index.

This former hotel operator turned Bitcoin treasury powerhouse is absolutely demolishing Japan's biggest names. We're talking about 187% year-to-date gains compared to the TOPIX 30's measly 7.2%. That means they're outperforming giants like Toyota, Sony, and Nintendo.

Metaplanet is currently sitting pretty with 18,888 BTC in their corporate treasury, making them the seventh-largest publicly traded Bitcoin holder globally. They've got more Bitcoin than Coinbase, Tesla, and Hut 8.

CEO Simon Gerovich isn't stopping there. In July, he dropped hints about using some of their Bitcoin stack to buy additional businesses - maybe a digital bank or something adjacent to digital assets.

These absolute mad lads have set a target of accumulating 210,000 BTC by 2027 - that's literally 1% of Bitcoin's total supply. If that's not big brain energy.

Being included in these major indexes means passive investors will automatically get Bitcoin exposure through traditional stock investments, potentially supporting Bitcoin's floor price with fresh capital flows.

Metaplanet upgraded to mid-cap status and added to FTSE Japan and All-World indexes

Company delivered 187% YTD gains vs 7.2% for Japan's top 30 stocks, outperforming giants like Toyota and Sony

Holds 18,888 BTC (7th largest publicly traded holder) with ambitious goal of 210,000 BTC by 2027

And that's a wrap, my lovely PoI readers! I hope this edition left you feeling informed, entertained, and maybe even a little bit richer (in knowledge, of course). From government overreach in DeFi to corporate Bitcoin strategies, today's stories remind us that the crypto world never stops evolving. Remember to stay curious, stay informed, and keep spreading the love. Until next time, this is Mochi, signing off with a virtual high-five!

P.S. Don't forget to share your thoughts, questions, and favorite crypto puns with us. very voice matters in the PoI community! 📣❤️ Share the newsletter

🍨📰 Catch you in the next issue! 📰🍨