https://tokenist.com/russias-central-bank-plans-to-launch-a-limited-cbdc-pilot-on-april-1st/?utm_source=rss&utm_medium=rss&utm_campaign=russias-central-bank-plans-to-launch-a-limited-cbdc-pilot-on-april-1st

According to a local report, the Bank of Russia is preparing to launch a central bank digital currency pilot on April 1st. The bank’s deputy chairman, Olga Skorobogatova, stated the pilot will include real transactions between real customers, but that their number will be limited.

Russia To Launch CDBC Pilot in April

On February 17th, Russia’s Central Bank announced it is planning to go live with a CBDC pilot on April 1st. The pilot will include transactions with real customers but will be limited and not available to the general public. Reportedly, 13 banks will participate and have already signaled their readiness.

If the test proves successful, the digital ruble could become a fully-fledged reality in 2024. Throughout the previous year, Russia has slowly been working on becoming more crypto-friendly. In late September, the Moscow Stock Exchange revealed its plans to start offering cryptocurrencies. 

Last September, Russia’s Central Bank reached an agreement with the country’s Ministry of Finance on a bill that would enable cross-border cryptocurrency payments. More recently, it was reported that Sberbank is working on an Ethereum-based platform which it intends to launch in May.

Join our Telegram group and never miss a breaking digital asset story.

How Close Are Widespread CBDCs?

Russia is far from the only country actively pursuing a central bank digital currency—around 100 countries and all G7 economies are actively exploring CBDCs. In early 2023, the Bank of Spain greenlit a relatively small private company-led project that it hopes will become an “embryo” for the future development of the planned digital euro.

Additionally, while many in the FED are skeptical toward an American CBDC, more and more reports are indicating that central bank digital currencies are the future. Already in January 2022, the Bank of America concluded that a digital dollar is inevitable, while IBM’s Web3 Executive Parter stated that such digital currencies are simply the future of money and payments.

Some, however, remain highly skeptical of CBDC. There have been long-standing disagreements on the impact central bank digital currencies will have on privacy. More recently, a UK advocacy group launched a campaign attempting to prevent the creation of a digital pound.

Do you think a CBDC could help Russia evade international sanctions? Let us know in the comments below.

The post Russia’s Central Bank Plans to Launch a Limited CBDC Pilot on April 1st appeared first on Tokenist.

https://tokenist.com/ftxs-former-chief-engineer-preparing-to-enter-a-guilty-plea-for-fraud/?utm_source=rss&utm_medium=rss&utm_campaign=ftxs-former-chief-engineer-preparing-to-enter-a-guilty-plea-for-fraud

According to a report from Friday, FTX’s former chief engineer Nishad Singh is preparing to enter a guilty plea to fraud charges. Singh has been working out an agreement with prosecutors since at least January and his plea could help further weaken SBF’s defense.

Nishad Singh Set to Become the Latest FTX Executive to Plead Guilty

Nishad Singh, who served as the director of engineering both for FTX and Alameda Research, is reportedly nearing the end of his negotiations with Manhattan prosecutors. Singh, along with Caroline Ellison and Gary Wang, was a member of Sam Bankman-Fried’d inner circle and one of his Bahamas flatmates. 

The former chief engineer is facing fraud charges for his role in the collapsed crypto empire, though prosecutors are reportedly waiting for an agreement to be made before filing them. Singh is allegedly preparing to enter a guilty plea—a move that could further isolate Sam Bankman-Fried as he would then remain the only major player in the FTX saga to maintain his innocence. 

Reports on an investigation of Nishad Singh initially emerged in early January, shortly after SBF made his first US court appearance. At the time, it was revealed that the SDNY, the SEC, and the SEC are all looking into the former chief engineer’s activities.

Join our Telegram group and never miss a breaking digital asset story.

Sam Bankman-Fried Increasingly Isonalted, May be Sent Back to Jail

While FTX’s former CEO saw a lull in law enforcement activity after his exchange went bankrupt on November 11th calling on many to question if he will ever face consequences, US authorities turned the heat up on him in mid-December. Near the end of 2022, SBF was arrested in the Bahamas and a slew of charges, civil and criminal, were filed against him by the DoJ, the SEC, and the CFTC.

The bad news for the fallen billionaire didn’t end then, as, around the same time, it was revealed that two of his close associates, Gary Wang and Caroline Ellison, chose to plead guilty and cooperate with the authorities. At the time, Wang’s decision was reported as particularly problematic for Bankman-Fried due to their long-standing relationship.

More recently, SBF has been facing increased pressure over his use of the internet since he was released on a $250 million bail bond. In recent weeks, FTX’s former CEO has been accused of trying to influence witnesses and his use of VPNs has seen him brought back to court. On Thursday, February 16th, the Judge even threatened to revoke his bail.

Do you think Singh’s guilty plea could guarantee SBF getting convicted? Let us know in the comments below.

The post FTX’s Former Chief Engineer Preparing to Enter a Guilty Plea For Fraud appeared first on Tokenist.

https://tokenist.com/blockchain-has-no-borders-cz-denies-binance-is-leaving-the-us/?utm_source=rss&utm_medium=rss&utm_campaign=blockchain-has-no-borders-cz-denies-binance-is-leaving-the-us

A Friday report indicated that Binance is planning to leave the US and delist the tokens of projects based in the country. Not long after, the exchange’s CEO CZ took to Twitter calling the allegations “false” and added that “blockchain has no borders”.

Is Binance Leaving the US?

A report from February 17th stated that the world’s largest Binance is preparing to exit the United States. Allegedly, the international cryptocurrency exchange is considering delisting all tokens issued by US-based projects and severing its ties with companies in the country. The decision, reportedly stemming from the recent surge in regulatory activity, would not affect Binance.US.

Not long after the report was published, Binance’s CEO Changpeng Zhao took to Twitter to deny the claims. Additionally, when another user asked “what’s even a US-based token”, CZ agreed adding that “blockchain has no borders.”

Zhao, however, also clarified that his exchange has decided to postpone certain investments in the US, as well as bids on bankrupt companies. According to Binance’s CEO, his company is waiting for regulatory approval before proceeding with the ventures. In late 2022, it was announced that Binance entered into a $1 billion agreement to acquire Voyager’s assets.

Join our Telegram group and never miss a breaking digital asset story.

Is Binance in Trouble in the US?

While many of the recent regulatory actions targeting digital asset firms haven’t been aimed directly at Binance, they have caused alarm bells to ring in certain parts of the community. Perhaps the most notable news when it comes to the world’s largest cryptocurrency exchange is the enforcement actions targeting Paxos.

Paxos is a well-known stablecoin issuer that, among other tokens, offers the Binance-branded BUSD. The company was recently ordered by the New York Department of Financial Services (NDFS) to stop minting BUSD, allegedly as it has proven unable to continue doing so “safely”. Furthermore, Paxos revealed it had received a Wells notice from the SEC as the Commission believes the stablecoin constitutes an unregistered security.

In a Twitter thread, Binance’s CZ explained that the matter of BUSD is not particularly troubling for his exchange and stated that the stablecoin is not a major part of its business. However, he conceded that if BUSD is found to be a security, it could have profound consequences for the future development of digital assets in the United States.

By mid-February, several stories directly related to Binance’s regulatory issues also came out. The exchange even acknowledged that its compliance was lacking in the past and that it is fully expecting to pay some fines, but added that it had since resolved said issues. More recently, a troubling report stated that Binance had access to Binance.US’—an officially independent entity—bank accounts and used the access to transfer at least $400 million to a CZ-managed trading firm. A Binance spokesperson, however, called the information “outdated”.

Do you think Binance is facing serious issues in the US? Let us know in the comments below.

The post “Blockchain Has No Borders” CZ Denies Binance is Leaving the US appeared first on Tokenist.

https://tokenist.com/tencent-abandons-vr-hardware-plans-amid-a-strategic-shift/?utm_source=rss&utm_medium=rss&utm_campaign=tencent-abandons-vr-hardware-plans-amid-a-strategic-shift

Chinese internet and tech giant Tencent will not venture into VR hardware as a tougher regulatory crackdown and a challenging economic outlook force the company to reduce its metaverse bets. According to Reuters, Tencent’s metaverse plans “no longer quite fit in” the company’s strategy.

Tencent Cites Tougher Economic Outlook and Regulatory Concerns

Tencent Holdings scrapped plans to foray into virtual reality (VR) hardware, becoming the latest tech company to reduce its bets on the metaverse. The decision comes as part of the Chinese internet giant’s efforts to slash costs and headcount at its metaverse team amid a deteriorating economic outlook.

The move marks a sharp U-turn for Tencent, which hired almost 300 employees last year to venture into VR software and hardware at its “extended reality” (XR) business. The company planned to build a cloud gaming hand-held controller. Still, challenges in reaching quick profitability and the need for hefty investments to build a competitive product forced the company to abandon the move, the Reuters report stated.

According to one of the sources, the XR project was not expected to achieve profitability until 2027. A separate Reuters source said Tencent’s metaverse unit did not have a strong lineup of promising games and non-gaming apps.

“Under the company’s new strategy as a whole, it no longer quite fit in.”

– Reuters source said.

Earlier this year, the internet giant also abandoned plans to buy a gaming phone manufacturer Black Shark, which the company believed had a robust supply chain and inventory to boost its VR hardware efforts and add 1,000 people to the team. But Tencent eventually decided not to pursue the deal due to its shift in strategy and growing regulatory scrutiny, adds the report.

Join our Telegram group and never miss a breaking digital asset story.

Tech Giants Forced to Reduce Costs

Tencent launched its XR unit in June last year to tackle the burgeoning metaverse market and growing interest in the concept of virtual worlds. As part of this strategy, the Shenzen, China-based tech company teamed up with Web3 firm Strange Universe Technology to create and host virtual enterprise experiences.

But last year was one of the most challenging periods for the 25-year-old company as mounting regulatory concerns and headwinds from China’s stringent zero-Covid policy battered its revenue.

This forced Tencent to shift strategically and scale back on its big metaverse plans. The challenging economic outlook also weighed on Tencent’s US rivals, including Alphabet, Microsoft, and Meta – all of which adopted cost-cutting measures in recent months. Recent reports revealed that Microsoft terminated its metaverse division to focus on AI.

Do you think tech companies will ramp up the metaverse bets once again when the economic outlook improves? Let us know in the comments below.

The post Tencent Abandons VR Hardware Plans Amid a Strategic Shift appeared first on Tokenist.

https://tokenist.com/crypto-options-daily-volume-hit-2023-ath-with-3b-in-notional-value/?utm_source=rss&utm_medium=rss&utm_campaign=crypto-options-daily-volume-hit-2023-ath-with-3b-in-notional-value

Crypto options daily trading volume surged above $3 billion in notional value on Feb. 16, the highest in 2023. The jump came from a recent crypto market rally, boosting Bitcoin above the $25,000 mark on Wednesday.

Deribit Accounts for 90% of Crypto Options Trading Volume

Crypto options trading volume reached a 2023 peak on Feb. 16, surging beyond $3 billion, according to data analytics firm Laevitas. Deribit, the world’s biggest crypto options exchange, accounted for around $2.75 billion of that volume, translating to around 90%. Meanwhile, the trading volume of perpetual contracts remained high at $144 billion.

The new options trading volume high follows the latest crypto rally that boosted Bitcoin (BTC) above the $25,000 threshold on Thursday. Other tokens, including Ether (ETH), Cardano (ADA), and Avalanche (AVAX), also rose higher yesterday.

The Thursday rally came as investors shook off worries over a regulatory clampdown by US regulators on certain crypto products. Earlier this week, a New York regulator ordered the crypto firm Paxos to stop issuing the Binance stablecoin, Binance USD (BUSD). In response, Paxos said it “categorically disagrees” with the regulator’s stance and is “prepared to vigorously litigate” if needed.

Bitcoin rallied more than 43% since the start of the year, marking a strong rebound from last year’s downturn amid a very harsh crypto winter. Blockchain adviser Cici Lu said the recent momentum in the crypto market is forcing speculators to reconsider their bearish bets, further boosting the prices.

Lu argued that investors “forget the free float of Bitcoin can be limited at times and when shorts get squeezed the price just pops.” Coinglass data shows that around $64.5 million of short positions in Bitcoin were liquidated on Feb. 16, the highest in around a month.

Join our Telegram group and never miss a breaking digital asset story.

Investors Optimistic Interest Rate Hikes Will Not Cause Recession

Another factor that likely contributed to the recent crypto rally is the hope that interest rate hikes by the Federal Reserve can further bring down inflation without tipping the US economy into a recession. Earlier this week, the latest consumer price index (CPI) print showed that inflation slightly declined in January to 6.4%.

However, even though inflation fell for a seventh consecutive month, the Fed is unlikely to stop raising interest rates. The reason for this is that some sources of inflation remain difficult to tame, such as the hot labor market and increasing wages.

Bitcoin and other cryptocurrencies lost some of their gains on Friday, with the world’s biggest crypto token dropping nearly 3% in the past 24 hours to $23.878.

Do you think the crypto market will retain its current momentum in the coming weeks? Let us know in the comments below.

The post Crypto Options’ Daily Volume Hit 2023 ATH with $3B+ in Notional Value appeared first on Tokenist.

https://tokenist.com/japan-joins-the-cbdc-race-will-conduct-tests-in-april/?utm_source=rss&utm_medium=rss&utm_campaign=japan-joins-the-cbdc-race-will-conduct-tests-in-april

Japan’s central bank said it would roll out a pilot program to run experiments on the use of a Digital Yen, according to a Friday announcement. The decision makes the Bank of Japan the latest global central bank to start working on a central bank digital currency (CBDC), joining the likes of China, France, and India, among others.

Digital Yuan Program Will Take Several Years

Bank of Japan (BOJ) will launch a pilot program to test the use of a digital yen, the central bank announced on Friday. The move comes after two years of tests the BOJ was running to decide whether to issue a digital yen, joining an ever-growing number of countries developing central bank digital currencies (CBDCs).

The BOJ will use the pilot program to carry out simulated transactions with private entities, said executive director Shinichi Uchida. The program aims to help BOJ prepare to launch a digital yen if the government decides so.

“Our hope is that the pilot program will lead to improved designs through discussion with private businesses.”

– said BOJ Executive Director Shinichi Uchida

Kazushige Kamiyama, head of the BOJ department monitoring the development of a CBDC, noted the pilot program would take several years and involve negotiations with commercial banks and non-bank settlement institutions and carriers. In addition, the BOJ could run experiments through actual transactions among retail firms and consumers, though there are no definite plans for that yet.

“To a certain extent, we need to move in lockstep with other advanced economies in deciding on the timeframe.”

– said BOJ executive Kazushige Kamiyama.

Join our Telegram group and never miss a breaking digital asset story.

BOJ Approaching Critical Leadership Change

With the launch of a pilot program, Japan becomes the latest global economy to join the CBDC race as central banks worldwide develop their digital currencies to upgrade financial systems and facilitate domestic and international payments. Other countries recently launched CBDC programs include Brazil and India, though Indians’ interest in the project seems very poor.

China is one of the frontrunners in this race, with its digital yuan app being used by millions of users. China’s central bank expanded digital yuan trials last year to some of its most populous provinces.

Meanwhile, the rollout of the digital yen pilot program comes amid a critical period for the BOJ as governor Haruhiko Kuroda nears the end of his second five-year term. Kuroda, the man behind Japan’s ultra-dovish monetary policy, is expected to be replaced by academic Kazuo Ueda.

Do you think the US government and the Federal Reserve should ramp up efforts to develop a digital dollar? Let us know in the comments below.

The post Japan Joins the CBDC Race, Will Conduct Tests in April appeared first on Tokenist.

https://tokenist.com/binance-moved-us-affiliates-400m-via-secret-access-to-silvergate-account/?utm_source=rss&utm_medium=rss&utm_campaign=binance-moved-us-affiliates-400m-via-secret-access-to-silvergate-account

On Thursday, February 16th, Reuters reported that Binance moved $400 million from the Silvergate account of its US affiliated to a trading firm listing Changpeng Zhao as its manager. According to the same report, Binance called the information “outdated”.

Binance Moved $400 From US Affiliate to a Zhao-Managed Firm in 2021

According to a Thursday report, internal messages and bank records reviewed by Reuters revealed that Binance had secret access to the Silvergate account of its US affiliate—Binance.US. The access was allegedly used to transfer $400 million to a trading firm called Merit Peak. The trading firm lists Changpeng Zhao—best-know as the CEO of Binance international—as its manager.

The transfers reportedly occurred in early 2021. However, a spokesperson from Binance.US allegedly called Reuters’ information outdated. Furthermore, the report states that the ultimate fate of the money—nor whether the transferred funds included user assets—could not be determined. 

Additionally, the reasons behind the transfers could also not be discerned. A report from early 2022 listed Merit Peak as one of Binance’s trading affiliates facing an SEC probe. Furthermore, Binance recently confirmed its regulatory compliance in the past was lacking but stated that the issues have mostly been fixed since and that the exchange is actively working with relevant agencies in the US. 

The report had no dramatic impact on the price of Binance’s BNB. However, Bitcoin went into a sharp decline to around $24,500 from its Thursday high of over $25,000. Furthermore, the shares of Silvergate Capital were down nearly 20% on the day.

Join our Telegram group and never miss a breaking digital asset story.

Binance Under Increased Regulatory Scrutiny

Early February was a notable spike in regulatory activity targeting digital assets that even managed to temporarily halt a rally started in January. The first big blow of the month came on the 9th when it was announced that Kraken, one of the major cryptocurrency exchanges, agreed to settle with the SEC and end its crypto staking service in the United States. 

Around the same time, it was reported that the New York Department of Financial Services (NDFS)  is investigating Paxos over its Binance-branded stablecoin BUSD and just days later, the company was ordered to stop minting the token. Not long after, it was alleged that another stablecoin issuer—Circle—filed a complaint against Paxos leading to the investigation.

Additionally, the same report indicated that Binance repeatedly failed to properly collateralize its tokens and that Paxos received the order to stop minting BUSD as it failed to conduct regular risk assessments and do its due diligence. Paxos also revealed it had received a Wells notice from the SEC alleging that the stablecoin constitutes an unregistered security.

 While CZ publicly distanced his exchange from BUSD and called the stablecoin a very minor part of its business model, Wednesday brought reports of an investigation into Binance’s operations conducted by US regulators. By the evening of February 15th, Binance revealed that the exchange is expecting to have to pay penalties to settle its issues with United States regulators.

Do you think Binance really has secret access to Binance.US’ funds? Let us know in the comments below.

The post Binance Moved US Affiliate’s $400M Via Secret Access to Silvergate Account appeared first on Tokenist.

https://tokenist.com/rarible-aggregator-adds-support-for-tezos-nfts/

This Thursday, Rarible announced it has expanded to include Tezos NFT collections. Orders from Versum, objkt, FXHash, Teia, and Rarible will now be featured on the marketplace. Less than a month ago, the non-fungible token marketplace also added support for Polygon collections.

Rarible Expands NFT Aggregator to Include Tezos

According to a Thursday blog post, collectors on Rarible will now be able to access Tezos-based non-fungible tokens. The most recent expansion of Rarible’s aggregator includes collections from Versum, objkt, FXHash, Teia, and Rarible itself. The announcement also states that the decision was driven by the fact that while Tezos has proven to be one of the best blockchains for independent artists, it has so far been rather difficult to get a clear overview of its NFT offering.

Tezos has long been one of the best blockchains for independent artists, thanks to the low gas fees and a vibrant community of diverse art styles. However, it’s been hard to get a clear overview over the Tezos NFT market with so many marketplaces and minting platforms. As a result, collecting on the art chain could also get quite tricky. That’s why Rarible now aggregates liquidity across the most popular Tezos marketplaces, similarly to what we do on Ethereum and Polygon.

Apart from launching its aggregator last October, Rarible has also actively been working to expand its offering throughout 2022. For example, just days before its aggregator was announced, Rarible was revealed to be one of the marketplaces integrated with the NFT-focused Twitter tiles. The Tezos found itself in the news most recently when it was revealed as the blockchain of choice for California’s plan to tokenize car titles and transfers.

Join our Telegram group and never miss a breaking digital asset story.

NFT Aggregators’ Rising Popularity

Considering that NFTs can be minted on a variety of blockchains and traded on around 200 marketplaces, it perhaps isn’t odd that tools helping collectors get a better overview of the various collections are becoming increasingly popular. By the end of 2022, NFT aggregators reportedly reached a trading volume of $1.9 billion.

Already in April 2022, OpenSea, the world’s largest non-fungible token marketplace, acquired an aggregator called Gem.xys. Furthermore, Uniswap launched its own aggregator last November after acquiring $165 million in a Series B funding round—with a part of the money being immediately earmarked for the development of the tool.

Considering digital art firms haven’t been idle throughout the downturn of the “crypto winter”, these NFT tools are also likely to see further expansion throughout 2023. The addition of Tezos wasn’t Rarible’s first major move this year. In mid-January, the company expanded its aggregator to include Polygon non-fungible tokens.

Do you think aggregators will prove beneficial for NFT collectors and artists long-term? let us know in the comments below.

The post Rarible Aggregator Adds Support for Tezos NFTs appeared first on Tokenist.

https://tokenist.com/global-financial-watchdog-zeroes-in-on-defi/?utm_source=rss&utm_medium=rss&utm_campaign=global-financial-watchdog-zeroes-in-on-defi

Global financial watchdog FSB is looking to adopt measures to address vulnerabilities and data gaps seen in the fast-growing DeFi space, the authority said in a report issued on Thursday. The regulator argues that digital assets underpinning DeFi “lack inherent value” and are significantly volatile.

DeFi Assets “Lack Inherent Value,” Says FSB

International regulator Financial Stability Board (FSB) issued a report to ministers from the Group of 20 (G20) nations, announcing its plan to take measures to address shortcomings and data gaps in decentralized finance (DeFi). The move comes amid growing risks posed by the rapidly-growing and unregulated DeFi space highlighted by several collapses in the crypto industry last year.

“The fact that crypto-assets underpinning much of DeFi lack inherent value and are highly volatile magnifies the impact of these vulnerabilities when they materialize, as recent incidents demonstrate.”

– the report states.

The report adds that FSB’s member countries will “proactively” assess DeFi vulnerabilities as part of regular monitoring of the crypto markets. The regulator hinted at potential policy responses such as “regulatory and supervisory requirements concerning traditional financial institutions’ direct exposures to DeFi.”

The report mentions vulnerabilities exposed by the far-reaching collapse of the crypto exchange FTX in November 2022, with its contagion impact still spreading. FSB said the full extent of the impact on FTX-owned DeFi projects and the broader crypto space would take time to become evident due to low disclosure and transparency in these markets.

Join our Telegram group and never miss a breaking digital asset story.

FSB Cites Liquidity Mismatches as DeFi’s Biggest Vulnerability

While DeFi offers numerous innovative services, the sector is not significantly different from traditional finance (TradFi) in its functions, the FSB noted in the report. In fact, by attempting to replicate some TradFi features, DeFi amplifies potential risks due to its use of novel technologies, high level of ecosystem interlinkages, and poor regulation and compliance. Furthermore, the regulator argued that the extent of decentralization in DeFi “deviates substantially” from the popular claims.

The report said the most troubling shortcoming in DeFi is related to “mismatches” in liquidity from different maturities in liabilities and assets. Some arrangements in this sector could be cross-border on purpose to exploit vulnerabilities in supervision.

A recent research report by TRM Labs showed that DeFi accounted for 80% of all crypto hacks in 2022, through which the attackers stole a record $3.7 billion. As a result, several global regulators shifted their focus to DeFi, including the European Commission.

Do you think tighter DeFi regulation could impede the sector’s future growth? Let us know in the comments below.

The post Global Financial Watchdog Zeroes in on DeFi appeared first on Tokenist.

https://tokenist.com/taiwan-mulls-disclosure-of-crypto-holdings-for-public-officials-report/?utm_source=rss&utm_medium=rss&utm_campaign=taiwan-mulls-disclosure-of-crypto-holdings-for-public-officials-report

The Ministry of Justice in Taiwan and the Independent Commission Against Corruption (ICAC) are looking to include cryptocurrencies in property declaration law for public officials, a local news outlet reported Thursday. The move comes amid the increasing use of crypto in money laundering and other illegal activities.

Taiwan Could Also Regulate Crypto Exchanges to Minimize Money Laundering

Taiwan’s Ministry of Justice is considering adding cryptocurrencies to the list of assets that public officials must disclose amid their increased use in illicit activities such as money laundering, according to a local news outlet. The ministry also said it had included crypto exchanges and other related businesses in the scope of money laundering prevention.

According to the ministry and the Independent Commission Against Corruption (ICAC), cryptocurrencies have not gained enough popularity yet to be used as a payment method or accepted by financial institutions in Taiwan. However, given that crypto assets still have considerable value, Taiwan’s Ministry of Justice could include cryptocurrencies in the Public Official Property Declaration Act.

The ICAC also highlighted that after reaching a record high in 2021, Taiwan scored 68 points in the global Corruption Perceptions Index, ranking the East Asian country in the 25th position. With this ranking, Taiwan has surpassed more than 86% of countries, indicating that its anti-corruption efforts have been globally recognized.

“Our efforts to root out corruption, bribery, and graft have produced these results for the world to see.”

– said Taiwan’s Minister of Justice Tsai Ching-hsiang

Join our Telegram group and never miss a breaking digital asset story.

New Risks Emerge amid Rapidly-growing Crypto Adoption

Taiwan’s efforts to potentially include cryptocurrencies in the property declaration law for public officials come amid the growing popularity in the region, as well as on the global scale. But crypto’s increasing use as a currency also identified notable money laundering risks, as evidenced in several cases in recent years.

Last year, Chinese police arrested a crime group suspected of laundering $5.6 billion worth of cryptocurrencies. The substantial increase in the use of crypto for money laundering was made possible by tools known as crypto mixers and cross-chain bridges such as Ren Bridge and Tornado Cash, which was sanctioned in the US in 2022.

Meanwhile, Taiwan remains interested in fostering the nascent technology and launched a new ministry last year focused on information security, Web3, and digital innovation.

Do you think global governments should further tighten regulations to reduce money laundering risks in crypto? Let us know in the comments below.

The post Taiwan Mulls Disclosure of Crypto Holdings for Public Officials: Report appeared first on Tokenist.

https://tokenist.com/hong-kong-raises-102m-with-first-tokenized-green-bond-offering/?utm_source=rss&utm_medium=rss&utm_campaign=hong-kong-raises-102m-with-first-tokenized-green-bond-offering

Hong Kong said it has successfully sold $102 million worth of digital green bonds, marking the first tokenized green bond issued by a government. The sale comes just a month after a Hong Kong official said the government is looking to launch tokenized green bonds for institutional investors.

Hong Kong Becomes the First Government to Issue a Tokenized Green Bond

The Hong Kong government announced Thursday it has successfully raised 800 million HKD ($102m) through the sale of digital green bonds, expanding the use of the burgeoning blockchain technology. The move represents the first tokenized green bond issued by a government, with a yield of 4.05%.

The Hong Kong government hired several major banks including Bank of China, Goldman Sachs, Credit Agricole, and HSBC, to hold investor calls for the issuance of tokenized green notes. The officials said the beneficial interest in the notes will be stored on a distributed ledger technology-based (DLT) platform developed by Goldman Sachs.

“Following a virtual roadshow earlier this week, the one-year, HKD-denominated Tokenised Green Bond was priced yesterday at 4.05%. It was distributed by a four-bank syndicate, two of which also act as investor custodians. The Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority (HKMA) is the clearing and settlement system for the bond, leveraging Goldman Sachs’ tokenization platform – GS DAP”

– the HKMA said in the press release.

Join our Telegram group and never miss a breaking digital asset story.

Hong Kong to Provide a Blueprint for Issuing Tokenized Bonds

As the first tokenized bond issued and managed by the Hong Kong government, the sale indicates that the city’s legal and regulatory environment is supportive of innovative forms of bond issuances. In addition, the government plans to publish a whitepaper in the future to summarize the experience gained from this initiative, as well as “set out the next steps and provide a blueprint for issuing a tokenized bond in Hong Kong,” Hong Kong Monetary Authority said in the press release.

Hong Kong’s debut digital green bond sale represents the latest push by the special administrative region to restore its financial hub status following years of turmoil during the coronavirus pandemic. The city has shown interest in exploring blockchain technology and its potential applications such as developing a central bank digital currency (CBDC).

Meanwhile, digital bonds are still a relative novelty, with Singapore’s banking giant DBS among the notable pioneer issuers so far. Earlier this week, DBS said it plans to apply for a license in Hong Kong to offer crypto trading services.

Do you think global governments should show more interest in using DLT? Let us know in the comments below.

The post Hong Kong Raises $102M With First Tokenized Green Bond Offering appeared first on Tokenist.

https://tokenist.com/robinhood-reports-3-7b-january-crypto-volume-up-95/?utm_source=rss&utm_medium=rss&utm_campaign=robinhood-reports-3-7b-january-crypto-volume-up-95

On Wednesday, February 15th, Robinhood published its operating data for January. While many of the provided numbers showed a notable increase from the last month of 2022, the broker’s cryptocurrency trading volume was perhaps the biggest standout being up a staggering 95%.

Robinhood January Crypto Trading Volume Up 95%

This Wednesday, the online broker Robinhood revealed its operating data for January 2023. The information showed increased numbers in most categories with, for example, Assets Under Custody rising 20% to $74.7 billion. Notional Trading Volumes also saw an increase across the board.

Equity volumes amounted to $46 billion, a 19% increase, and options contracts were also up by 10%. Still, perhaps the most impressive figure of the report came from cryptocurrency trading volumes. After suffering a sharp decline in the wake of the FTX bankruptcy in November 2022, they were up 95% in January 2023 and stood at $3.7 billion. The broker has been offering cryptocurrency trading since 2018.

While significantly below its all-time highs, Robinhood shares have been doing fairly well since the start of the year. Year-to-date, HOOD is up nearly 32%. However, the company’s shares also went through a decline after the Q4 results were published, despite an initial slight upturn, as it had missed most of the estimates.

Robinhood also already found itself a target of an embarrassing if short hack. In late January, the broker’s Twitter account was compromised and used to promote a fraudulent token offering for just under an hour.

Join our Telegram group and never miss a breaking digital asset story.

Early 2023 Brings a Renewed Interest in Cryptocurrencies

While multiple firms with major connections to digital assets delivered disappointing results for the final quarter of 2022, their upcoming reports might just tell a different story. Robinhood’s cryptocurrency trading volume increase is very much in line with a market rally, and renewed interest that the markets saw in January.

Furthermore, while a set of aggressive actions undertaken by US regulators in early February created a fear-and-doubt-filled atmosphere for several days, the sentiment has by this Wednesday once again turned bullish—at least for the time being—as Bitcoin reached a six-month high and rose above $24,000.

Still, the ongoing disruption caused by the collapse of FTX—most recently felt in the form of Genesis’ bankruptcy—and the heightened regulatory scrutiny still pose a threat to a possible longer-running 2023 rally. Just in the last seven days, the SEC managed to cast doubt on the future of crypto staking when it announced an enforcement action against and a settlement with Kraken, and disrupt the stablecoin market with a Wells notice sent to BUSD-issuer Paxos.

Do you think the staggering rise in crypto trading volume Robinhood saw in January will extend to the entirety of Q1? Let us know in the comments below.

The post Robinhood Reports $3.7B January Crypto Volume, Up 95% appeared first on Tokenist.

https://tokenist.com/creator-of-wallstreetbets-now-suing-reddit-says-he-was-ousted-unjustly/?utm_source=rss&utm_medium=rss&utm_campaign=creator-of-wallstreetbets-now-suing-reddit-says-he-was-ousted-unjustly

A WSJ report from Wednesday revealed that Jaime Rogozinski, the man who created the now-famous WallStreetBets subreddit in 2012 is now suing the website. According to Rogozinski, his ousting as a moderator, and subsequent removal from the subreddit were unjust and baseless, just as Reddit’s effort to block his attempt to put a trademark on the “WallStreetBets” name.

Founder of WallStreetBets Sues Reddit

According to a Wednesday report, the creator of the famous—or perhaps infamous —r/WallStreetBets, Jaime Rogozinski, is suing Reddit. Rogozinski, who created the subreddit in 2012 and was ousted as its moderator in 2020, believes that the platform’s action to remove him was unjust.

Furthermore, the subreddit’s creator finds that the website’s move to block his trademark filing for the name of the subreddit that same year is similarly unfair. Reddit reportedly revealed it strongly disagrees with Rogozinski, who sold his GameStop tale to Holywood in 2021, and allegedly called the lawsuit “frivolous”.

Apart from the r/WallStreetBets creator’s conflict with the website, he also found himself in conflict with the community he founded on the subreddit. Shortly after being removed as the community’s moderator, Rogozinski was also outright banned from WallStreetStreet bets over what the subreddit claimed were his attempts to monetize it. 

Join our Telegram group and never miss a breaking digital asset story.

What is WallStreetBets?

While the WallStreetBets subreddit has been around for over a decade, it truly earned its place in the spotlight during the “meme stock” craze of late 2020 and early 2021. At the time, the massive short squeeze caused by retail investors from the forum was very controversial and led to some major challenges for one of the main platforms used by the Redditors—Robinhood—and even lead to a Congressional hearing and report.

While the craze has since died down, the subreddit still has an impressive headcount with more than 13 million users. Furthermore, it has created a lasting legacy both in culture and arguably changed the fortunes of some of the firms whose shares the short squeeze targeted. The turbulent events of early 2021 even got the SEC to use the term “meme stocks” in official documents when discussing GME and AMC.

GameStop, the company at the center of the “meme stock” craze also used its renewed relevance to try and rejuvenate its business. While the brick-and-mortar video game seller’s attempts to make its business digital, or enter the NFT game with its own marketplace haven’t gone entirely smoothly, the company is definitely no longer at death’s door as it was in late 2020.

Do you think Rogozinski’s lawsuit against Reddit has merit? Let us know in the comments below.

The post Creator of WallStreetBets Now Suing Reddit, Says He Was Ousted Unjustly appeared first on Tokenist.

https://tokenist.com/bitcoin-above-24k-as-crypto-markets-recover-from-regulatory-assault/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-above-24k-as-crypto-markets-recover-from-regulatory-assault

After a week of decline caused by a slew of enforcement actions against major players in the industry, Bitcoin renewed its 2023 rally and rose above $24,000 by Wednesday afternoon. The day also saw multiple other major digital currencies, as well as crypto-related stocks, rise significantly.

Crypto Markets Make a Comeback After Several Days of Regulator-Casued Turmoil

After several days of losses and stagnation, the cryptocurrency market started rising again on Wednesday, February 15th. While the rise was seen across the board, perhaps the most notable action was seen with Bitcoin which rose above $24,000 for the first time in half a year, and Silvergate which closed 28% in the green.

Multiple other digital assets rose significantly throughout the day. The world’s second-largest cryptocurrency, ETH, traded for around $1,665—near its 2023 high. Binance’s BNB, which suffered a sharp drop on Monday after the exchange-affiliated stablecoin BUSD came under regulatory scrutiny, also climbed more than 5% to above $311.

Several cryptocurrency-related stocks also ended the trading day significantly in the green. The cryptocurrency exchange Coinbase, which went into a decline after SEC’s settlement with Kraken was revealed last week, was up nearly 20% by the end of the day. MicroStrategy, well-known for its bullish stance on Bitcoin, also ended the regulator-prompted decline and closed 10% in the green.

Join our Telegram group and never miss a breaking digital asset story.

The Dynamic Start of 2023

While only a month and a half old, 2023 has already seen a lot of turmoil when it comes to digital assets. On the one hand, last month saw a rally that finally ended the downward spiral that permeated 2022 and became one of Bitcoin’s best Januarys in a decade. On the other, there have been multiple bankruptcies, disruptions, and regulatory actions shaking the industry.

The year started with Sam Bankman-Fried’s first court hearing with regard to the collapse of his exchange. and with the start of a feud between Gemini’s Winklevoss twins, and DCG’s Barry Silbert—itself started due to the effects of the FTX contagion. The public disagreement ultimately led to an agreement and to a bankruptcy filing by DCG’s Genesis Global.

The first half of February also saw a renewed regulatory offensive with the SEC taking aim at both crypto staking, and stablecoins. Furthermore, the New York State Department of Financial Services (NYDFS) also joined the fray when it ordered Paxos to stop minting its Binance-branded stablecoin.

Despite last year’s “crypto winter” and the dramatic events seen so far this year, major companies from outside the industry have continued showing a keen interest in digital assets. Companies like Walmart and Amazon reportedly have great plans pertaining to NFTs and web3 in general. Furthermore, non-fungible tokens appear set to take their place in art history with more and more donations made to museums worldwide and even an NFT-focused exhibition ongoing in New York’s MoMA.

Do you think Wednesday’s upturn signals a greater rally across the crypto markets? let us know in the comments below.

The post Bitcoin Above $24K As Crypto Markets Recover From Regulatory Assault appeared first on Tokenist.

https://tokenist.com/napsters-journey-to-web3-relevance-pipedream-or-legitimate-opportunity/?utm_source=rss&utm_medium=rss&utm_campaign=napsters-journey-to-web3-relevance-pipedream-or-legitimate-opportunity

Napster, the pioneering pre-blockchain music streamer, makes its first big move in the Web3 space. As one of the top 5 NFT music marketplaces, Mint Songs is now in the hands of Napster. However, this acquisition is one of the many planned as the new iteration of Napster tries to find its footing in the world of web3.

Napster Revisiting its P2P Roots But Now in Web3

On Wednesday, the CEO of Napster, Jon Vlassopulos, issued a press release that Napster Ventures acquired the sunsetting Mint Songs. The music startup tells the story in its name. Just as people can mint images into non-fungible tokens, so can audio files be minted in the same way.

This can revolutionize the music industry because artists can embed royalty logic into the smart contracts of minted songs. In turn, artists cease to rely on big music companies for scraps. Depending on the music license, record label companies can take as much as 80% cut off musicians and bands.

In stark contrast, Mint Songs allowed artists to take 95% of the proceeds.

As Napster takes over Mint Songs, the former top brass will remain in charge. Former Head of Product Nate Pham will lead Napster’s Web3 initiative, while the Mint Songs co-founder and CTO Garrett Hughes will serve as an advisor to roll out the new Mint Songs roadmap.

“We already have hundreds of thousands of artist storefronts where our fans go to listen to music every day so adding collectibles is very contextual in the fan experience,”

Jon Vlassopulos, Napster CEO

Napster is a natural fit to take over Mint Songs. Founded in the early internet days in 1999, Napster created a peer-to-peer network for users to share music without any mediators. At the time, many faulted Napster for ruining the music industry as music-sharing became rampant, having reached 80 million users in just two years.

For comparison, it took Spotify 16 years to reach 456 million active users. Annually, this is 28.5 million users on average vs. Napster’s explosive growth of 40 million per year.

However, Napster’s glory began to fade away following the copyright infringement notices issued by Dr. Dre and Metallica. In July 2001, Napster settled the case for $94 million, with a stipulation that Napster would block music sharing for any artist that requested it. 

Join our Telegram group and never miss a breaking digital asset story.

Napster’s Web3 Revival

In August 2020, MelodyVR bought Napster for $70 million. Surviving on the edges, the music streaming platform shrunk its user base to just 3 million users at the time of the acquisition. Interestingly, MelodyVR’s purchase was explicitly aimed at competing with Spotify and Apple Music.

After failing to do so, two Web3 companies acquired Napster, Hivemind, and Algorand for an undisclosed price in May 2022. In the transitional period, Emmy Lovell headed Napster, having previously worked for the BBC, Warner Music Group, and EMI Music.

Hivemind Capital was founded just a year prior, in 2021, as a “multi-strategy crypto-focused investment firm” based in New York. On the other hand, the eponymous Algorand developed the Algorand (ALGO) proof-of-stake blockchain focused on fast payments with near-instant finality similar to Solana.

The two Web3 companies bought Napster to “once again revolutionize the music industry by bringing blockchain and Web3 to artists and fans”, as officially relayed on Hivemind’s Twitter.

Why Did Mint Songs Shut Down?

On September 14, 2022, Mint Songs announced they would cease minting on Polygon (Mint Songs Factory) and Ethereum (Mint Songs V2). Unlike Rally’s NFTs which became defunct when their sidechain shut down, Mint Songs migrated all metadata on-chain via NFT.storage. 

This secured Mint Songs’ collections as long as Ethereum stays online. Until then, the platform minted 90,000 music NFTs from nearly 2,000 artists that received ~$100,000 in revenue. Yet, just after one and a half years, founders Dwight Torculas and Garrett Hughes started to wind Mint Songs down. 

It appears that Mint Songs was already in the acquisition negotiation phase. 

“As we looked for a partner that could take what we’ve built over the last two years and give artists a true marketplace for their assets where millions of fans are already active, it became abundantly clear that Jon and Napster have the vision to finally take web3 music to the mainstream.”

Garrett Hughes, Mint Songs CTO and co-founder

Nathan Pham, now Napster’s Web3 Head of Product, posted at the end of July that Mint Songs was laying off staff, and he was a part of that reduction. In the end, Mint Songs appears to be a classic story of startup trailblazing, only to become a part of a larger vision by more prominent players.

What Stands in Napster’s Way?

Whether Napster will succeed in restoring its former glory depends on how the NFT asset class is perceived. There are clear benefits to minting music. In the case of Mint Songs, the platform gave artists 95% of the proceeds. This gives them complete control and flexibility to focus on content rather than a business.

Likewise, artists can issue NFT collectibles and other incentives to engage their fans. Much will also depend on Ethereum’s scaling, both its mainnet and how easy it is to use Arbitrum, Polygon, and other layer-2 networks.

For the time being, the NFT asset class is driven by speculation. According to CoinGecko’s NFT survey in April 2022, flippers represent 42% of NFT ownership. At the same time, metaverse/gaming NFTs are the most common NFT type, owned at 35.8%.

More importantly, the sentiment that would apply to Napster’s Web3 expansion is in the low numbers. Only 21.8% of respondents place artistic value/attachment on NFTs. With that said, music is an integral part of gaming and the metaverse.

If that ecosystem gains traction, as legacy financial institutions predict, music-based NFTs will inevitably follow suit. And just as Polygon managed to forge so many business partnerships to become the go-to Ethereum rail, so will Napster have to accomplish the same.

Would you support artists with smart contract-automated NFT revenue? Let us know in the comments below.

The post Napster’s Journey to Web3 Relevance: Pipedream or Legitimate Opportunity? appeared first on Tokenist.

https://tokenist.com/binance-announces-debit-card-launch-in-brazil/?utm_source=rss&utm_medium=rss&utm_campaign=binance-announces-debit-card-launch-in-brazil

This Wednesday, Binance’s CEO Changpeng Zhao announced that the long-awaited Binance Card is launching in Brazil. The card, already available in most of Europe and some Caribbean countries, offers enables its holders to transcend the barrier between cryptocurrencies and TradFi by using tokens like Bitcoin, BNB, and many others in any store that supports Visa.

Binance Card Now Available in Brazil

As a part of its ongoing effort to expand its offering in Brazil, Binance’s CEO Changpeng Zhao announced this Wednesday that the Binance Card is now available in the South American nation. Binance Card is a Visa debit card enabling its holders to use their cryptocurrencies to make payments in numerous stores all around the world. 

The card, which is already available in most European countries and several Caribbean nations is also a part of the exchange’s effort to bridge the gap between digital assets and traditional finance, as well as to boost global crypto adoption. According to reports from late January, Brazil is also set to receive a Binance prepaid card—less than a year after Argentina.

Recent months also saw Binance open new offices in Brazil. In early October 2022, it was reported that the cryptocurrency exchange aimed to expand its operations in Latin America with the opening of new offices in Sao Paulo and Rio de Janeiro. At the time, the press release also highlighted that all of Binance’s operations in the country are fully compliant with Brazil’s regulations.

Join our Telegram group and never miss a breaking digital asset story.

Visa and Mastercard Continue Expanding Crypto Offering

The two payment giants, Visa and Mastercard, have maintained a keen interest in digital assets for several years now. Already in early 2021, Mastercard announced its plans to start supporting the cryptocurrency sector. Later that same year, both companies chose to disregard the regulatory issues their partner exchange—Binance—was facing at the time.

Throughout the “crypto winter” of 2022, both companies continued working on bridging the gap between digital assets and TradFi by working with both cryptocurrency companies and traditional banks. The autumn of the last year in particular saw Mastercard actively working with banks on crypto adoption.

At the very beginning of October, the payment giant launched a new AI tool intended to help banks detect suspicious cryptocurrency-related transactions. Later that same month, Mastercard announced a pilot project meant to enable banks to offer cryptocurrency trading to their clients.

Visa was particularly active with regard to digital assets around the New Year. In early January, it was reported that the firm is exploring the future of stablecoin settlements. Furthermore, the company announced the results of a hackathon it held and offered a solution for setting up automatic payments from self-custody wallets of Ethereum’s StarkNet.

Do you think the increased regulatory crackdown will prevent Binance from ever offering its debit card in the US? Let us know in the comments below.

The post Binance Announces Debit Card Launch in Brazil appeared first on Tokenist.

https://tokenist.com/abu-dhabi-entices-web3-businesses-with-2b-initiative/?utm_source=rss&utm_medium=rss&utm_campaign=abu-dhabi-entices-web3-businesses-with-2b-initiative

The UAE capital Abu Dhabi has rolled out a $2 billion initiative to foster the growth of Web3 and blockchain startups in the region, according to a press release on Wednesday. The program will help startups relocate to Abu Dhabi and connect with various partners.

Abu Dhabi Unveils “Hub71+ Digital Assets” Program

Abu Dhabi tech ecosystem Hub71 has launched a new $2 billion initiative to support Web3 and blockchain startups in the region. In addition to funding, the initiative, dubbed “Hub71+ Digital Assets,” will provide local startups with access to a broad range of programs and potential corporate, investment, and government partners.

“The ecosystem has over US$2 billion of capital committed to fund Web3 startups and blockchain technologies in Abu Dhabi. Hub71+ Digital Assets will offer Web3 startups access to an extensive range of programmes, initiatives, and corporate, government, and investment partners in the UAE and global markets.”

– the press release states.

Additionally, the initiative will help startups relocate to Abu Dhabi and foster their growth across the Middle East and other global markets. As per the press release, the initiative will be based at Hub71 in Abu Dhabi Global Market (ADGM).

One of the partners of the program is FABRIC, the research and innovation hub of First Abu Dhabi Bank (FAB). Other partners include multiple digital asset exchanges and service providers, who joined the initiative to facilitate the discovery, trading, and custody of digital assets.

Hub71 deputy CEO Ahmad Ali Alwan said the launch of the Hub71+ Digital Assets initiative underscores Abu Dhabi’s interest in attracting disruptive businesses that can make a global impact. He said decentralization represents the future of the internet, with Web3 and blockchain startups expected to play a central role in facilitating this transition.

Join our Telegram group and never miss a breaking digital asset story.

The UAE’s Big Bets on Digital Assets Continue

The rollout of Hub71+ Digital Assets represents the latest in a series of efforts by the United Arab Emirates (UAE) to spur digital assets and blockchain market growth in the region.

Earlier this month, Dubai virtual asset regulator VARA released a set of regulatory requirements for crypto firms planning to operate in the UAE’s biggest emirate. The rules cover various activities related to virtual assets, including custody, advertising, exchanges, and more.

The UAE has been ramping up investments in the digital asset industry recently, establishing itself as one of the region’s leading digital and crypto hubs in innovation and regulation. Last year, the world’s biggest crypto exchange Binance obtained a license from Abu Dhabi regulators to offer crypto custody services in the UAE capital.

Do you think the UAE could become one of the leading crypto and digital asset hubs on a global scale? Let us know in the comments below.

The post Abu Dhabi Entices Web3 Businesses with $2B Initiative appeared first on Tokenist.

https://tokenist.com/china-telecom-and-conflux-introduce-blockchain-enabled-sim-card/?utm_source=rss&utm_medium=rss&utm_campaign=china-telecom-and-conflux-introduce-blockchain-enabled-sim-card

China Telecom and Conflux have joined forces to launch a blockchain-enabled SIM card, dubbed “BSIM,” the companies said in a statement today. The goal of the product is to lower “the barriers to entry for Web3 and the Metaverse.”

Hong Kong to Host the First BSIM Pilot Program

China Telecom has teamed up with blockchain protocol Conflux Network to launch blockchain-enabled SIM cards known as BSIM, according to a Wednesday press release. The SIM cards will be “the largest blockchain hardware product ever seen globally,” Conflux said in the release.

China Telecom, the second-largest telecom operator in China with over 390 million subscribers, is expected to roll out the first BSIM pilot program in Hong Kong later in 2023. The carrier is then expected to follow up with additional pilots in major mainland China locations such as Shanghai.

“BSIM will dramatically lower the barrier to entry to Web3 for China Telecom’s 390+ million mobile phone subscribers, while making transactions faster and more secure. By making telecom users’ personal digital assets more secure, the goal is to make mobile phones more secure.”

– Conflux Network wrote in the press release.

Join our Telegram group and never miss a breaking digital asset story.

How is BSIM Different from Traditional SIM Cards?

Conflux said the BSIM card integrates its Tree-graph, dual proof of stake (PoS), and proof of work (PoW) technology, enabling optimal system performance for any blockchain. Through the use of hardware security benefits of SIM cards, BSIM offers improved protection of users’ private keys, which is viewed as a safe and convenient Web3 entry solution.

The release explains that the product will manage and store users’ public and private keys in the card and execute digital signatures “in a way that the private key does not exit the card.” It also enables encrypted storage and key retrieval, among other features.

While the BSIM card is physically no different from a traditional SIM card, it offers numerous significant advantages, such as 10-20 times larger storage space and substantially higher computing power. Further, it allows users to safely store and transfer digital assets and display them in multiple applications.

While crypto remains banned there, China and Chinese companies have been actively betting on Web3 and the metaverse in recent years. Last year, Beijing released a document outlining plans to develop a $7.5 billion virtual human industry in the following three years using Web3 technology.

Meanwhile, China’s special territory Hong Kong has been trying to restore its financial and crypto hub status following years of turmoil. The city unveiled plans to legalize crypto trading in 2023, attracting interest from traditional institutions such as Singapore’s banking giant DBS.

Would you like to see a US-based carrier launch a similar product in the United States? Let us know in the comments below.

The post China Telecom and Conflux Introduce “Blockchain-Enabled” SIM Card appeared first on Tokenist.

https://tokenist.com/circle-denies-receiving-wells-notice-as-rumors-of-sec-crusade-engulf-twitter/?utm_source=rss&utm_medium=rss&utm_campaign=circle-denies-receiving-wells-notice-as-rumors-of-sec-crusade-engulf-twitter

On Tuesday afternoon, Dante Disparte, the chief strategy officer of Circle, denied the rumors that his company received a Wells notice from the SEC. The account that initially shared the news was briefly deleted before getting restored and publishing a correction.

Circle Denies Receiving Wells Notice from SEC

On Tuesday afternoon, Eleanor Terrett, a Fox Business reporter, published a tweet claiming that certain sources revealed that the SEC has sent a number of Wells notices to multiple stablecoin issuers including Circle. While the post swiftly spread on the social media platform, some were quick to point out that news might just be stemming from the FUD surrounding stablecoins due to recent aggressive regulatory actions. 

Circle’s chief strategy officer, Dante Disparte, was quick to react denying that his company received a Wells notice from the Commission. A Wells notice represents a notification sent from the SEC to a company that the agency planning to launch an enforcement action.

Shortly after Disparte denied the rumor, Terrett published a correction and offered an apology to the community. Interestingly, the reporter’s account was unlisted for about an hour after making the original post.

Join our Telegram group and never miss a breaking digital asset story.

Regulators Increase Pressure on Digital Assets

While a report recently published by the White House called on Congress to step up its efforts with regard to regulating cryptocurrencies, the SEC increased its pressure on the industry. Last week, the Commission revealed it had launched an enforcement action against the cryptocurrency exchange Kraken claiming that its staking service constitutes an unregistered securities offering.

At the same time, it was announced that the exchange agreed to pay $30 million and terminated its staking service in the US in a settlement with the agency. Just days later, it was revealed that along with staking, stablecoins might be in regulatory crosshairs. 

Earlier this week, the stablecoin issuer revealed it had been ordered to stop minting its Binance-branded BUSD tokens by the New York State Department of Financial Services (NYDFS). A later report alleged that the regulatory action was initiated after Circle filed a complaint with the New York watchdog claiming that Binance was not properly backing its tokens. 

The pressure was further increased when it was revealed that the SEC was also targeting Paxos over its BUSD offering. On Monday afternoon, the stablecoin issuer published its official statement on the matter signaling its willingness to “vigorously litigate” against the regulatory action if necessary. 

Editorial note (February 14th, 6:02 PM EST): The article was updated to include Terrett’s correction.

Do you think the SEC is preparing to target other major stablecoin issuers this year? Let us know in the comments below.  

The post Circle Denies Receiving Wells Notice as Rumors of SEC Crusade Engulf Twitter appeared first on Tokenist.

https://tokenist.com/save-privacy-stop-cbdcs-uk-advocacy-group-launches-anti-britcoin-campaign/?utm_source=rss&utm_medium=rss&utm_campaign=save-privacy-stop-cbdcs-uk-advocacy-group-launches-anti-britcoin-campaign

On Tuesday, February 14th, the Tax Reform Council, a UK think tank and advocacy group, launched an anti-CBDC initiative through its “cut my tax campaign”. The group believes that the introduction of a central bank digital currency would constitute “an unprecedented incursion by tax authorities.”

UK Advocacy Group Launched Anti-CBDC Campaign

As the UK Central Bank moves closer and closer to the creation of a digital pound, not everyone appears to be happy about the possible introduction of a national central-bank digital currency. Tax Reform Council, an advisory board with multiple professors and economists from across the United Kingdom, announced on Tuesday the launch of an anti-CBDC campaign.

The initiative, run through the “cut my tax” project, believes that the introduction of the digital pound—or any other CBDC—would represent “an unprecedented incursion by tax authorities.” The campaign’s website lists several key concerns surrounding what the media has recently nicknamed the “Britcoin”.

The group believes that a CBDC would be immensely detrimental to privacy as “every personal transaction would be recorded on a central ledger”, and could endanger the entire financial ecosystem as it would make it susceptible to hacking. They also believe that the digital pound could fundamentally change taxation and reduce regulatory oversight.

Concerns over the implications CBDCs could have on privacy have been raised multiple times over the years. Last summer, the European Central Bank warned that a digital Euro would not offer the same anonymity as cash. Furthermore, a successful action in late 2021 that saw Chinese police catch scammers thanks to the increased government oversight provided by the digital Yuan highlighted the danger that a central-bank digital currency could help countries keep a close eye on their citizens.

Join our Telegram group and never miss a breaking digital asset story.

UK Actively Exploring a Digital Pund

The United Kingdom has been exploring a possible introduction of the digital pound since at least early 2020, and the country has been increasing its pace since the start of 2023. In late January, a LinkedIn post revealed that HM Treasury, the UK government’s economic and finance ministry, is actively seeking to hire a head of CBDC. 

Around the same time, however, Andrew Griffith, UK’s Financial Services Minister, signaled that the ramped-up efforts to set up the infrastructure for the digital pound, and while the UK Treasury recently revealed a roadmap for the “Britcoin”,  the introduction of the CBDC’s is not likely to happen soon. According to the Minister, Britain’s priority is to get the design right and the country isn’t in a rush to launch the national digital currency. 

The UK is far from the only country actively working on a national digital currency. Already in 2020, the Bahamas launched its CBDC, and the island nation was quickly followed by Nigeria’s e-Naira and by China’s digital Yuan. More recently, the Bank of Spain greenlit a project it hopes will become the core of the planned digital Euro.

Do you think CBDCs pose a major threat to privacy? Let us know in the comments below.

The post “Save Privacy Stop CBDCs” UK Advocacy Group Launches Anti-Britcoin Campaign appeared first on Tokenist.

https://tokenist.com/opensea-challenger-launches-its-long-awaited-native-blur-token/?utm_source=rss&utm_medium=rss&utm_campaign=opensea-challenger-launches-its-long-awaited-native-blur-token

Blur, an NFT marketplace that launched in October and quickly rose to prominence, announced this Tuesday the launch of its long-awaited native token. The Blur token has been eagerly awaited by the marketplace’s community since its inception and was initially set for launch in January.

Blur Launches its Native Token

On Tuesday, February 14th, the NFT marketplace Blur announced the launch of its native token—BLUR. The token has been long-awaited by the community and has been initially set for launch in January before being postponed with the company stating that it is “trying new things and the extra two weeks will allow us to deliver a launch that hasn’t been done before.”

The launch comes after three rounds of “care packages”—airdrops issued as rewards for trading on the marketplace that can be opened to receive BLUR tokens now that they have been released. The NFT marketplace stated that “care package” holders, creators and traders that have been active within the previous three months have 60 days following February 14th to claim their tokens.

BLUR is intended to enable traders to benefit from the marketplace’s success through community ownership and participate in the platform’s governance protocol. Alongside the announcement, Blur warned that users should be careful and only follow URLs posted by the official account due to the increased likelihood of scams.

Join our Telegram group and never miss a breaking digital asset story.

The NFT Marketplace Targeting “Professional” Traders

While a relative newcomer to the industry, Blur has managed to achieve some impressive results since its inception in October 2022—despite the beating the sector took throughout the “crypto winter”. The Ethereum-based marketplace launched with the offer of zero fees and “care package” airdrops that have now become redeemable for BLUR to regular traders. 

The NFT marketplace positioned itself as the platform for “professional” traders and is offering a set of features including a portfolio analytics tool and “floor sweeping” across multiple platforms. By late December, Blur accounted for most of the $78 million trading volume seen by NFT marketplace aggregators that month.

Blur’s success at a time when the crypto markets were seeing troubling lows perhaps represents another signal that the sector can make a resurgence. Despite the “crypto winter”, several legacy companies have decided to try their hand at offering NFTs—with some like Nike seeing success in their endeavor—and there has been a renewed push to cement non-fungible tokens’ place in art history with multiple donations to major museums across the world.

Do you think Blur will manage to dethrone OpenSea as the number 1 NFT marketplace? Let us know in the comments below.

The post OpenSea Challenger Launches Its Long-Awaited Native BLUR Token appeared first on Tokenist.

https://tokenist.com/siemens-issues-first-blockchain-based-digital-bond/?utm_source=rss&utm_medium=rss&utm_campaign=siemens-issues-first-blockchain-based-digital-bond

Europe’s largest industrial manufacturer Siemens rolled out a digital bond on a blockchain worth 60 million euros. With a maturity period of one year, Siemens said a blockchain-based digital bond would offer numerous advantages, such as enabling direct sales to investors without the need for an intermediary.

Blockchain-based Bonds Eliminate Need for Banks and Intermediaries, Says Siemens

Siemens issued a blockchain-powered digital bond worth 60 million euros on Tuesday, the company said in a press release. The bond, launched in compliance with Germany’s Electronics Securities Act, has a maturity of one year.

Siemens said issuing the bond on a blockchain offers several benefits, including eliminating the need for paper-based global certificates and central clearing. In addition, it allows the company to sell the bond directly to investors without an intermediary bank.

Siemens’ Chief Financial Officer, Ralf P. Thomas, stated that the company’s success in supporting its customers’ digital transformation made it only “logical that we test and utilize the latest digital solutions in finance.”

“We are proud to be one of the first German companies to have successfully issued a blockchain-based bond. This makes Siemens a pioneer in the ongoing development of digital solutions for the capital and securities markets.”

– Ralf P. Thomas, Siemens CFO said in the press release.

Siemens said the introduction of the Electronic Securities Act in June 2021 made it possible to issue digital bonds on blockchain in Germany and allowed the company to sell securities directly to investors without hiring established central securities depositories. Payments for the securities were carried out using conventional methods since the digital euro was not yet available at the transaction time. The entire transaction was completed within two days, Siemens added in the release.

“By moving away from paper and toward public blockchains for issuing securities, we can execute transactions significantly faster and more efficiently than when issuing bonds in the past. “

– said Peter Rathgeb, Corporate Treasurer at Siemens AG.

Join our Telegram group and never miss a breaking digital asset story.

The Importance and Growth of Tokenization

Siemens’s foray into blockchain and tokenized bonds comes amid an essential period for real-world asset (RWA) tokenization. This process involves representing physical and traditional financial assets as digital tokens on a blockchain. RWA is turning out to be a promising growth area for the digital asset industry in 2023, as it allows for a more secure, inclusive, and efficient investment environment for investors.

This is because blockchain and distributed ledger technology (DLT) have many potential benefits beyond cryptocurrencies, one of them being tokenization. This concept has the potential to unlock several benefits, including increased liquidity and accessibility of assets, reduced transaction costs, and improved transparency and security.

By representing assets as digital tokens on a blockchain, investors can trade and exchange them more efficiently and at a lower cost than traditional methods. Recent research by global consulting firm BC showed that the cumulative size of tokenized assets globally could reach a staggering $16 trillion by 2030.

Have you ever invested in digital bonds? Let us know in the comments below.

The post Siemens Issues First Blockchain-Based Digital Bond appeared first on Tokenist.

https://tokenist.com/us-inflation-declines-for-the-7th-consecutive-month-january-cpi-at-6-4/?utm_source=rss&utm_medium=rss&utm_campaign=us-inflation-declines-for-the-7th-consecutive-month-january-cpi-at-6-4

The latest US CPI print showed annual inflation cooling to 6.4% in January, marking the seventh straight month of declines from 40-year high inflation last year. The latest inflation data will be crucial in determining Fed’s next moves. However, many expect the central bank will continue raising rates amid a hot labor market and rising wages. 

Core CPI Drops to 5.6% in January

The US annual inflation rate fell for a seventh consecutive month in January, dropping to 6.4% from 6.5% in December, the Labor Bureau reported on Tuesday. The report is higher than economists’ expectations of 6.2%. 

The core consumer price index (CPI), which ignores energy and food costs, stood at 5.6%, compared to the estimated 5.5% and down from 5.7% in December. On a monthly basis, the CPI and core CPI increased by 0.5% and 0.4%, respectively, in line with consensus projections of 0.5% and 0.4%. 

The Bureau of Labor Statistics (BLS) used a different method to calculate the new CPI, considering only one year of expenditure data instead of 2 years. 

US equity futures and European stocks rose on Monday as investors braced for the CPI release, which will play a pivotal role in assessing the Federal Reserve’s monetary policy going forward and the pace of interest rate hikes. The tech-weighted Nasdaq Composite led the gains, rising 1.5%, trailed by the Dow Jones Industrial Average and the S&P 500, which gained 1.1% and 1.2%, respectively. 

The yield on the 10-year Treasury note fell 2.7 basis points (bps) Monday to 3.71%, whereas the two-year yield increased by 2.3 bps 4.53%. Last year, the yield on the 10-year Treasury note slipped below its 2-year counterpart for the first time in 15 years when inflation peaked at 9.1%. 

Join our Telegram group and never miss a breaking digital asset story.

Strong Labor Market and Rising Wages Likely to Justify Further Hikes 

While the latest CPI report met expectations that inflation cooled down in January, it remains to be seen how the Fed will react. The US central bank has been reiterating the need to keep raising interest rates and slow the US economy in recent months. Some sources of inflation remain difficult to tame, such as the hot labor market and increasing wages.

Nonfarm payrolls rose 0.2% in December to 223,000, beating the Dow Jones estimates of 200,000. The Fed responded earlier this month when it hiked interest rates by 25 bps, its first rate increase in 2023. 

Even though it did not stop raising rates yet, the 25 bps hike gave some respite to investors after the central bank delivered several consecutive jumbo increases of 75 bps last year to bring down 4-decade high inflation. 

When do you think is the earliest we can expect the Fed to stop hiking interest rates? Let us know in the comments below. 

The post US Inflation Declines for the 7th Consecutive Month: January CPI at 6.4% appeared first on Tokenist.

https://tokenist.com/taurus-closes-65m-round-led-by-credit-suisse/?utm_source=rss&utm_medium=rss&utm_campaign=taurus-closes-65m-round-led-by-credit-suisse

Geneva-based digital asset firm Taurus raised $65 million in a financing round led by Swiss bank Credit Suisse, the company said in a press release Tuesday. The transaction, backed by other major banks, including Deutsche Bank, shows TradFi institutions remain interested in crypto assets despite a persisting downturn.

Taurus to Fuel Expansion with Fresh Capital

Swiss digital asset infrastructure firm Taurus has bagged $65 million in an equity funding round led by Credit Suisse, marking the latest bet by traditional finance (TradFi) institutions on the crypto sector despite the ongoing market downturn. Other banks participating in the funding round include Deutsche Bank, Pictet Group, Arab Bank Switzerland, and Investis Holding.

Switzerland-based Taurus said it would use the fresh capital to hire new employees, fuel its international expansion, and continue developing its technology. The company said it plans to open new offices in Europe, UAE, as well as in the Americas and South-East Asia.

Founded in 2018 in Geneva, Taurus develops blockchain solutions that allow financial institutions to store and launch cryptocurrencies and tokenized securities. Taurus said that the Swiss financial regulator FINMA approved the deal, adding its co-founders Lamine Brahimi, Sebastien Dessimoz, Oren-Olivier Puder, and Jean-Philippe Aumasson will remain the company’s most significant shareholders.

“Raising USD 65mn in the current market environment tells a lot about the quality of Taurus’ people and products. We are proud to welcome such high-profile investors and benefit from their expertise to further develop one of the richest platforms in the industry, covering any type of digital assets, way beyond cryptocurrencies.”

– Lamine Brahimi, co-founder and Managing Partner of Taurus

Join our Telegram group and never miss a breaking digital asset story.

TradFi Institutions Continue Betting on Crypto

The deal, which brings Taurus’s valuation to several hundred million dollars, comes amid a persisting crypto winter defined by depressed crypto prices, weak startup funding, and a series of high-profile company collapses. Last month, crypto firm Genesis Global filed for bankruptcy protection after its debt to creditors accumulated to $3.4 billion.

But a funding deal of this scale indicates that some major TradFi institutions have faith in the digital assets space, including the beleaguered Credit Suisse. The second-biggest Swiss bank intends to use Taurus to develop its digital asset products, one of which will allow the bank to advise corporate clients on potential issuances using blockchain technology.

Deutsche Bank, the biggest bank in Germany, is also planning to roll out its digital asset custody offering in collaboration with Taurus, Deutsche’s global head of securities services, Paul Maley said. The bank unveiled plans to launch digital asset custody services in 2021.

Do you think traditional finance banking will eventually be entirely replaced by crypto? Let us know in the comments below.

The post Taurus Closes $65M Round Led by Credit Suisse appeared first on Tokenist.

https://tokenist.com/digital-art-influencer-donates-22-pieces-to-lacma-as-more-nfts-go-to-museums/?utm_source=rss&utm_medium=rss&utm_campaign=digital-art-influencer-donates-22-pieces-to-lacma-as-more-nfts-go-to-museums

An NFT influencer going by the name Cozomo de Medici announced on Monday that he will be donating 22 pieces to the Los Angeles County Museum of Art (LACMA). According to the reveal, the donated artwork comes from 13 artists from across the globe and spans 2017-2022.

Cozomo de Medici Donates 22 NFTs to LACMA

Possibly inspired by his Florentine namesake—a well-known Maecenas of Renaissance art—an NFT influencer announced this Monday he would be backing up his claim to be a grand patron of digital art. Writing on Twitter, Cozomo de Medici revealed he is donating a collection of 22 non-fungible tokens to the Los Angeles County Museum of Art.

According to the thread, the collection features pieces created between 2017 and 2022 by 13 artists from Brazil, Canada, China, England, Germany, Portugal, and the United States. In its press release, the museum wrote that “the collection reflects a boom of artistic experimentation with web3 technologies like blockchain that have been budding since the 2010s.”

Cozomo also wrote that his hope is that the donation will help cement on-chain art in the annals of history. He also expressed the wish for the act to inspire more similar artworks and his hope that the collection will pave “the way for museums everywhere to hold the greatest digital works alongside the greatest physical”.

Join our Telegram group and never miss a breaking digital asset story.

NFTs Find Their Place in Museums Across the World

While the “crypto winter” quieted down the NFT boom of previous years, digital artworks have managed to maintain their relevance. Despite the market suffering a major downturn, an onslaught of non-fungible token projects coming from big-name companies like Nike met with significant success throughout last year. This year also already showed signs that major firms are still more than interested as, for example, Amazon is reportedly working on an NFT-related project set to be announced in a few months. 

While corporate interest in non-fungible tokens certainly remains present, recently a new trend arose. Last November, Yuga Labs, the creators of the famous Bored Ape Yacht Club, launched the “Punks Legacy Project” by gifting CryptoPunk #305 to the Institute of Contemporary Art in Miami. 

More recently, both Larva Labs and Yuga continued the initiative. On February 10th, the companies donated Autoglyph #25 and Cryptopunk #110 to Paris’ Centre Pompidou. Furthermore, NFTs now have their dedicated exhibition in New York’s Museum of Modern Art (MoMA) in the form of Refik Anadol’s “Unsupervised”.

Would you go to a museum to see an NFT-focused exhibition? Let us know in the comments below.

The post Digital Art Influencer Donates 22 Pieces to LACMA As More NFTs Go To Museums appeared first on Tokenist.

https://tokenist.com/paxos-strongly-disagrees-with-sec-on-busd-willing-to-vigorously-litigate/?utm_source=rss&utm_medium=rss&utm_campaign=paxos-strongly-disagrees-with-sec-on-busd-willing-to-vigorously-litigate

On Monday afternoon, Paxos acknowledged it had been notified by the SEC that the watchdog is preparing an enforcement action over the Binance-branded stablecoin BUSD. Paxos stated it “categorically disagrees” with the regulator’s stance and is “prepared to vigorously litigate” if needed.

Paxos Responds to SEC’s Wells Notice

On Monday afternoon, Paxos confirmed an earlier report indicating that the SEC is looking to sue it over BUSD claiming the stablecoin represents an unregistered securities offering. The company stated it had received a Wells notice—a letter from the watchdog heralding an enforcement action—on February 3rd. In its statement, the stablecoin-issuer expressed its disagreement with the SEC and its intent to fight the complaint:

Paxos categorically disagrees with the SEC staff because BUSD is not a security under the federal securities laws. This SEC Wells notice pertains only to BUSD. To be clear, there are unequivocally no other allegations against Paxos. Paxos has always prioritized the safety of its customers’ assets. BUSD issued by Paxos is always backed 1:1 with US dollar-denominated reserves, fully segregated and held in bankruptcy remote accounts. We will engage with the SEC staff on this issue and are prepared to vigorously litigate if necessary.

Earlier on Monday, Binance’s CZ stated that, while he has no additional information about SEC’s lawsuit against Paxos, he believes the case is likely to have a profound impact on the industry—especially if BUSD is found to be a security. He, however, also stated that his exchange would continue supporting Binance USD stablecoin, but may move away from using it in time.

The SEC’s targeting of BUSD represents the second potentially far-reaching enforcement action undertaken this February. Last week, the Commission revealed a complaint alleging that Kraken’s crypto staking service constitutes an unregistered securities offering. The exchange agreed to settle with the regulator and discontinue the offering causing concerns over the future of staking in the US.

Join our Telegram group and never miss a breaking digital asset story.

Regulators Closing in On Paxos

Apart from the SEC probe into BUSD, Paxos also found itself in the crosshairs of the New York state regulator. The NYDFS recently ordered the stablecoin issuer to discontinue minting Binance USD. Allegedly, the company failed to properly conduct periodic risk assessments with regard to the token and is unable to issue it “safely”.

Paxos complied with the request and cease minting new Binance-branded stablecoins by February 21st, but stated that all existing BUSD remains fully backed and redeemable. The company also stated that the regulatory action did not impact its overall operation and commitment—nor discouraged it from its goal of “becoming the global leader in the blockchain tokenization infrastructure”.

Already last week, PayPal announced it would indefinitely pause work on its own stablecoin due to increased regulatory pressure. PayPal’s work alongside Paxos on a new stablecoin was initially reported in January 2022 and the token was allegedly just weeks from launch when the project was frozen.

Do you think Paxos could successfully argue that BUSD is not a security if the case goes to trial? Let us know in the comments below.

The post Paxos Strongly Disagrees With SEC on BUSD, Willing to “Vigorously Litigate” appeared first on Tokenist.

https://tokenist.com/usdcs-circle-warned-ny-regulators-binance-wasnt-properly-backing-tokens/?utm_source=rss&utm_medium=rss&utm_campaign=usdcs-circle-warned-ny-regulators-binance-wasnt-properly-backing-tokens

According to a Monday report, Circle, best known as the issuer of the USDC stablecoin, warned New York watchdogs that Binance was not properly backing the tokens it was issuing.  The complaint ultimately led to the order that Paxos should stop issuing BUSD.

Circle Filed a Complaint With NYDFS Over Binance-Issued Tokens

Reportedly, the stablecoin issuer Circle filed a complaint with the New York State Department of Financial Services sometime during the Autumn of 2022 alleging that Binance wasn’t properly backing the tokens it was issuing. For example, the world’s largest cryptocurrency exchange at one point allegedly had only $100 million worth of assets backing $1.7 billion of Binance-peg USDC.

A similar situation was true for multiple tokens issued by Binance, including its own BUSD. Paxos, the firm issuing the Binance-branded stablecoin, was recently ordered to stop minting it. The stablecoin-issuer, while agreeing to stop minting new coins, stated that all already-issued BUSD remains fully backed. New York regulators also allegedly stated that Paxos failed in its obligation to conduct regular risk assessment and due diligence with regard to the token. 

Last week, on February 10th, Binance admitted that BUSD wasn’t always properly collateralized but primarily due to a lower frequency of balance updates. At the time, the world’s largest cryptocurrency exchange also stated that it had already detected the issue and implemented measures to resolve it.

Join our Telegram group and never miss a breaking digital asset story.

Binance’s CZ Responds to NY Regulator’s Order to Paxos

Quickly after it was revealed that NYDFS ordered Paxos to stop minting BUSD, Binance’s CZ took to Twitter to publish his statement on the situation. According to the exchange’s CEO, Binance will, much like Paxos, continue supporting the stablecoin “for the foreseeable future”. He also added that despite the regulatory actions all user funds are safe.

CZ also touched upon the allegation that the Securities and Exchange Commission is preparing to sue Paxos as it considers BUSD to constitute an unregistered securities offering. Binance’s CEO stated that while he has no information on the case as it is not directly related to his company, he believes that if BUSD is ruled to be a security, it could have a profound impact on the future development of digital assets.

Recent aggressive actions taken by regulators in the US significantly shook the cryptocurrency market and disrupted several large projects. Last week, NYDFS’s investigation of Paxos proved significant enough for PayPal to pause its stablecoin project indefinitely.

Do you think Circle “snitched” on Binance for personal gain, or was its complaint entirely justified? Let us know in the comments below. 

The post USDC’s Circle Warned NY Regulators Binance Wasn’t Properly Backing Tokens appeared first on Tokenist.

https://tokenist.com/what-is-warren-buffets-exposure-to-crypto/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-warren-buffets-exposure-to-crypto

There are many ways one could measure Bitcoin’s penetration into mainstream investing. One of the more exotic is measuring Warren Buffet’s indirect exposure to Bitcoin despite his distaste for the new asset class. 

Why Does Warren Buffett Dislike Bitcoin?

Following the rapid descent of Gautam Adani after Hindenberg’s scathing report, Warren Buffett is now ranked the world’s 5th richest man, at $108.9 billion net worth, according to Forbes. Yet, besides his wealth, Buffett is best known as probably the most quotable investor alive.

Specifically, Warren’s value-oriented investment philosophy has had much traction. The ‘Oracle of Omaha’ once said that “price is what you pay, value is what you get.” But he also warned that “risk comes from not knowing what you’re doing.”

Both of those statements manifested regarding Buffett’s take on Bitcoin. Notably, he doesn’t see Bitcoin as ‘sound money,’ which is peer-to-peer, limited in supply, and censorship-resistant. Instead of emphasizing them, as some would say, revolutionary attributes, Buffett has always likened Bitcoin to something utterly irrational. 

When Charlie Munger called Bitcoin “rat poison” in 2013,  BTC was at $100. Five years later, when Bitcoin got over $9,000, Buffett one-upped Munger’s take, calling it “probably rat poison squared.” Therefore, Bitcoin’s problem is not value appreciation but the baseline for it. 

“Cryptocurrencies basically have no value and they don’t produce anything. They don’t reproduce, they can’t mail you a check, they can’t do anything, and what you hope is that somebody else comes along and pays you more money for them later on, but then that person’s got the problem. In terms of value: zero.”

Warren Buffet to CNBC, February 2020

This view disregards fiat currency devaluation and the risk of having bank accounts frozen or going defunct via bank runs. It also conflates cryptocurrencies with Bitcoin, disregarding that each BTC is backed by energy. More importantly, Bitcoin’s core value is disambiguating the transmission of the value. 

Yet, as these Bitcoin attributes became recognizable, it was inevitable that Buffett himself would’ve been indirectly exposed to Bitcoin investments. 

Join our Telegram group and never miss a breaking digital asset story.

Berkshire Hathaway’s Crypto Exposure

Since 1965, Warren Buffett has served as the Chairman and CEO of Berkshire Hathaway. In that time, the company grew to a $690 billion investment juggernaut. The bulk of Buffett’s portfolio is in Apple (41.76%) and other classic holdings such as Coca-Cola (7.57%), Chevron (8.02%), and Bank of America (10.30%).

However, Buffet also holds $1.47 billion worth of Visa shares (V), $1.1 billion worth of Mastercard shares (MA), and $471.3 million worth of Nu Holdings (NU). All three companies are heavily involved in crypto rails. 

The Brazil-based Nu Holdings, previously Nubank before going public, is none other than a digital neo-bank set to launch its token, Nucoin, in the first half of this year. Aside from offering Bitcoin and Ethereum trading, Nu will use Ethereum’s Polygon network for Nucoin to reward customer loyalty. 

In Brazil alone, Nubank’s customer base has expanded to 53.9 million in 2021, a +439% increase from 2019. Moreover, last May, Nu Holdings announced that 1% of neobank’s equity would be converted to Bitcoin.

“There can be no doubt that cryptocurrencies are a growing trend in Latin America. We have been following the market closely and we believe that [crypto has] transformational potential in this region.”

David Velez, Nubank CEO

Likewise, both Visa and Mastercard payment processors have partnered with crypto companies to offer crypto-linked debit cards. To name a few, Mastercard partnered with BitOasis, the top MENA (Middle East & North Africa) crypto exchange, enabling customers to convert fiat to crypto across 90 million global merchant locations.  

Visa recently partnered with Wirex for the Asia-Pacific (APAC) region, alongside the UK, to expand crypto-linked debit cards that had already been issued in the US. Visa’s strategy has always been clear when it comes to digital assets.

“Visa wants to bring more payment options to consumers by connecting digital currencies with our network of banks and merchants,”

Matt Wood, Head of Digital Partnerships, Asia Pacific, Visa

In this light, where does Warren Buffett apply his advice that “risk comes from not knowing what you’re doing”?

Suppose so many people and companies see value in cryptocurrencies. In that case, his approach is to rely on payment rails to cushion the risk, whether it is the risk from the people not knowing what they are getting into or Buffett’s lack of knowledge.

Which do you think is more likely? Is Buffett too accustomed to the fiat system, or that he privately owns cryptos? Let us know in the comments below.

The post What is Warren Buffet’s Exposure to Crypto? appeared first on Tokenist.