Altcoins

Binance has Received the MVP License from Dubai’s VARA – Here’s What You Should Know About It!

Because many users can access the Binance platform, its immense popularity is not surprising. Today, this cryptocurrency trading platform handles the most volume of transactions around the globe.

Following the issuance of its provisional license earlier in March, the global blockchain services provider Binance has earned a minimal viable product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA).

What Does This Permit Entail, Exactly?

Within Dubai’s internationally benchmarked legislative framework for virtual asset service providers, Binance is now authorized to deliver an approved range of virtual asset-related services to appropriately qualified retail and institutional investors, thanks to the MVP license.

Simply put, Binance is dedicated to upholding rigorous investor and market protection principles, and the exchange will only work with customers who have been pre-screened and approved by VARA. These customers will now be able to take advantage of the local banking channels made available due to the industry’s first regulatory license of its kind.

Here are some key takeaway points of this transition:

  • Trading on a regulated platform under the supervision of VARA in Dubai will result in higher consumer protection levels for the platform users.
  • The license will be a significant achievement after several registrations for Binance’s local organizations in the Middle East and North Africa region and throughout Europe in Italy, France, and Spain.
  • Lastly, this transition allows Binance to open a client money account with a domestic bank, which will provide various services to qualified customers. These services will include virtual asset exchange, transfer, virtual asset and fiat currency conversion, custody and management of virtual assets, virtual token and trading services, and payment through virtual assets and remittance services.

White House Releases a Detailed Framework for Regulating Digital Assets

In recent years, the market for digital assets has expanded rapidly. Digital assets have been purchased by millions of people worldwide, including 16% of adult Americans, and their market capitalization hit $3 trillion in November of last year.

Now where the widely purchased and opted digital assets play a vital role in benefiting the global financial system, the drawbacks as unfortunate events in the crypto market have also impacted how the investors see these digital assets. 

However, with the first government-wide strategy for mitigating the dangers and capitalizing on the opportunities presented by digital assets and the underlying technology being laid out in an Executive Order (EO) signed by Vice President Joe Biden on March 9 – there’s more to come for us to evaluate and benefit from the digital assets. 

Here’s everything you need to know about this framework:

  • Six months after US Vice President Joe Biden requested federal agencies to investigate the pros and cons of digital assets and submit their results, this framework was unveiled.
  • The potential advantages of a CBDC issued by a central bank were emphasized in this model. The CBDC is designed to be a digital currency; fully backed by the US government and governed by a centralized authority, like the Federal Reserve.
  • Getting rid of illicit practices is another topic covered in this framework. As per the fact sheet, the US President plans to ask for changes to be made to the Bank Secrecy Act (BSA), anti-tip-off statutes, and unlicensed money transmitting laws so that they apply explicitly to providers of digital assets like NFT and relevant exchange platforms.

Conclusion:

In the end, it is worth mentioning how the Director of the National Economic Council, Brian Deese, claims that the new mandates will position the United States as a global leader in the governance and management of digital assets. But will it work as advertised in the cryptosphere?

From Santander embracing crypto, Solana opening a real-life store in NYC to Telegram going the NFT way: This month in crypto

Let’s examine what was making news throughout the last month. There’s something extra at the end of the read!

Mercedes-Benz has launched Acentrik, a blockchain-based data-sharing platform. The project is aimed primarily at corporate users, with features such as Know Your Business and stringent access restrictions. The data is not saved on the blockchain. Rather each dataset is represented by a non-fungible token (NFT) and a metadata hash.

According to reports, the Spanish banking giant Santander will begin offering cryptocurrency trading to its clients in Brazil. According to Santander Brazil CEO Mario Leo, the bank is trying to create crypto services in response to increasing demand from its Brazilian consumers.

Solana’s real-life store is open in New York City. The store named Solana Spaces aims to educate users about Solana blockchain and Web3. “This isn’t the first time the cryptocurrency has stepped outside the Metaverse; it has previously announced the launching of the ‘Saga,’ a Web3 Android mobile phone. New Solana-themed stores have opened in New York City. The “Solana Spaces” store attempts to educate visitors on how Solana operates and what web 3 is.

Binance announced that Fans of the Rome-based professional Italian football team Società Sportiva Lazio (aka “S.S. Lazio”) might “open the upcoming 2022/23 season with cutting-edge NFT tickets.” Lazio’s NFT tickets include additional incentives for the Binance Fan Token community, such as discounts, freebies, and experiences, making the upcoming season a great highlight for all S.S. Lazio Fans.

The largest asset manager in the world, Blackrock, signs a deal with Coinbase to provide crypto trading, custody, prime brokerage and reporting capabilities to its clients.

Meta begins its international expansion of NFT support on Instagram. As a result of this extension, users and businesses in over 100 countries across Africa, Asia-Pacific, the Middle East, and the Americas will be able to publish their NFTs on Instagram. Before this, support was only accessible to a limited number of creators in the United States.

The United States Federal Reserve Announces “FedNow” Fast Payments System For 2023. According to Fed, the FedNow Service will transform how everyday payments are made across the economy. Users can send instant payments at any time of day or night, and the funds are immediately available to recipients.

Bitcoin now has over 1 million unique wallet addresses, according to research. Regarding network utilization, Ethereum and Litecoin are distant runner-ups behind Bitcoin, with 158 million and 148 million unique addresses, respectively.

Telegram co-founder Paul Durov intends to establish an NFT marketplace and hopes to incorporate a “little bit of web3.” Paul intends to build a platform where username holders may sell their identifiers to interested parties through blockchain using NFT-like smart contracts.

Binance has teamed with payments giant Mastercard to create a cryptocurrency-enabled payment card in Argentina. The Binance Card, issued by Credencial Payments and meant to “bridge the gap between cryptocurrencies and ordinary transactions,” would allow Binance customers to make crypto purchases online and in-store, including Bitcoin (BTC), wherever Mastercard is accepted. Mastercard CEO Michael Miebach announced the project on Twitter and LinkedIn. 

As The Merge Approaches, Ethereum Classic’s hash rate achieved an all-time high on August 20, 2022. The Ethereum Classic network’s hash rate measures the processing power per second employed when mining a coin. The ATH hash rate lowers the chances of a “51% attack.” 

Australia Will Use’ Token Mapping’ As Crypto Regulation Framework. The Australian government will review how bitcoin assets are managed to keep procedures current and safeguard consumers.

John McAfee’s ex-girlfriend alleges McAfee faked his death and is still alive and well in Texas. Ex-girlfriend Samantha Herrera said in a Netflix documentary titled Running with the Devil: The Wild World of John McAfee, published on Wednesday. In June 2021, John McAfee died in a Spanish jail cell while awaiting extradition to the United States on allegations of neglecting to file tax returns from 2014 to 2018 and failing to declare revenue from crypto ventures and consultancy services. When he died, he was 75 years old. 

Besides some gripping news from the crypto industry, some memes and videos added to the fun side of the tech groups. Time for five hilarious crypto memes!

Some Bitcoin humour

Ethereum was not spared either

Want to swim in the Metaverse?

 Hodling Vs Day trading

Why I don’t go to parties anymore

How DeFi is ready to power its way beyond investment and speculation

What do you think about when you hear “the future of finance?” Most people envision mobile payments, internet banking, and other cutting-edge technology. What about decentralization, though?

DeFi refers to peer-to-peer finance enabled by decentralized technologies built on the blockchain. From lending and borrowing platforms to stablecoins and tokenized BTC, the DeFi ecosystem has launched an expansive network of integrated protocols and financial instruments.

However, Decentralized finance (DeFi) is currently undergoing soul-searching. Terra’s collapse in May 2022 had a contagion effect on many other DeFi platforms. Subsequently, there has been a widespread perception that DeFi offers little more than circular financing and dangerously leveraged speculation, the type that may produce a domino of bankruptcy and failures. And to our horror, it’s partially true.

Read more about the Terra collapse here

The “crypto-winter”

DeFi has since faced many criticisms. The thrust of all these criticisms is that most DeFi revolves around highly leveraged speculation – users deposited their money into these platforms that promised high yields. The platform, in turn, uses these funds to lend or invest in other projects. However, many such projects were wiped out when the crypto bear market hit in 2022. 

Nonetheless, there is a silver lining. Authorities in the crypto and DeFi sectors confirm that DeFi is still a developing field that will grow and consolidate as it evolves. Indeed, many think DeFi will become more integrated with traditional banking in the following years by linking with the Internet of Things, digital ID, and data storage. And the more it does, the less it will be centered on the risky habit of lending and borrowing virtually entirely for speculation.

DeFi benefits from using blockchain technology in various ways, including transparency, which may increase due diligence and assist individuals in identifying and avoiding dangerous financial frauds and damaging corporate practices. Similarly, smart contracts give further protection against rogue actors and fraudulent transactions.

DeFi’s Current Status and Potential

Some reports indicated that DeFi’s growth on the Ethereum blockchain was 780% in 2021. The total value locked (TVL) in DeFi protocols was more than $172 billion by the first quarter of 2022. The future of DeFi rests on the three strong pillars: composability, DeFi insurance, and governance.

Composability

Composability refers to the ability of several components to collaborate to produce the intended result. In the context of DeFi, composability is how diverse protocols and platforms work together to generate new financial solutions. This is not to imply that flexibility has not existed in conventional finance. DeFi, however, takes composability to the next level by allowing the creation of a trustless system.

On the blockchain, users can verify every transaction and activity. Ethereum serves as the impartial settlement layer, with no one entity wielding power. Furthermore, because DeFi is permissionless, anybody may design new financial products and apps that would not be viable with old infrastructure.

DeFi insurance

DeFi insurance is the missing link that will bring DeFi up to speed with traditional finance.

DeFi insurance arose out of need, as indicated by the predicted $10 billion fraud losses in the DeFi business in 2021. Insurance safeguards against unfavourable occurrences in the cryptocurrency sector, such as exchange hacks, smart contract failures, and stablecoin price collapses.

Despite the benefits of DeFi insurance, the claims procedure is still unknown. As a result, additional study is required to evaluate the usefulness of this new instrument.

Governance

Some DeFi platforms reinforce the blockchain community’s commitment to decentralization by making governance tokens available to users.

A governance token gives consumers control over the platform’s protocol, goods, and future innovations. Governance tokens are usually established using decentralized protocols that promote community-driven growth and self-sufficiency.

To make critical choices concerning protocol changes, recruiting, and even governance framework alterations, decentralized networking initiatives require governance mechanisms.

For example, a borrowing and lending platform may use its regulating mechanism to compute the requisite amount. In other words, decisions made by project stakeholders through its governance structure can directly influence the project’s success or failure.

When approached correctly, governance efforts can bring in a new era of decentralized growth and collaboration.

In essence, there remain many defenders of DeFi within the crypto sector. All of them continue to affirm that the space will continue to grow and, ultimately, make good on its promises.

Samsung, Among Others, Plans to Launch Crypto Exchanges Next Year

In an interesting development, the electronic media giant Samsung and a few other Korean companies are planning to launch independent crypto exchanges by next year. It is interesting to note that all of these companies are launching exchanges with their securities branch. 

Samsung is using its branch Samsung Securities and other South Korean securities companies such as Mirae Asset Securities are on the list. However, the plans can be impeded by the domestic financial regulators who have taken a strict stand against crypto-related entities in the last few years. Moreover, in 2021, the regulators created mandatory requirements that the FIU (Financial Intelligence Unit) enforced over several crypto platforms.

The Changing Landscape of Crypto in South Korea

The news of seven major South Korean securities companies looking to establish crypto exchanges was revealed by local media. It was also revealed that these entities are collaborating with the regulators to receive a license for such activities by the end of 2022. 

“Currently, discussions necessary for the establishment are being finalized,” an official from one of the firms stated.

Among these seven entities, Mirae Asset Securities and Samsung Securities are in the spotlight. While the former aims to develop a consulting subsidiary that will provide Bitcoin and Ether trading services and NFTs, Samsung Securities is likely to enter the blockchain-based security token business. Samsung tried launching a token trading platform in 2021 but could not recruit the necessary professionals to make it happen.

However, with the newly elected President Yoon Suk-yeol with a pro-crypto stand, the future looks bright for the company. This pro-crypto stand is also beneficial for all the crypto developers and local investors as last year several crypto platforms shut their operations because of failing to comply with FIU’s anti-money laundering rules. 

2023 will bring all the crypto enthusiasts in South Korea, a new opportunity to enter the crypto industry.