Filmmaker Jordan Bayne Confesses Web3 Potential to Share Accounts of Marginalized Communities

The award-winning film producer Jordan Bayne announced on Monday that Web3 and blockchain technologies provide the artist with a platform to engage their audience. Bayne stated that by adopting crypto technologies, the artist manages to cope with the dynamism in the cinema industry. 

He mentioned that blockchain technology could potentially address challenges battling the Hollywood industry. Speaking at the Festival de in France, Bayne asserted that the Web3 technology exhibits distinctive features unavailable in the Hollywood sector.

With Web3, Bayne confessed that adopting these technologies enabled the creator to improve his artistic work.

Importance of Web3 and Blockchain Technologies in Film Industry

Since 2015 Bayne has been making headlines in Film production. After gaining massive interest in the crypto sector, Bayne reportedly leveraged the emerging technologies to launch “Film Squad Media.”

After the launch of Squad, Bayne utilized his vast experience to demonstrate practical strategies that top-rising filmmakers could garner endless benefits from the blockchain and web3 technologies.

In her address, Bayne confirmed that the Squad team had hosted more than 350 shows since its launch in February 2021. Besides adopting Web3 in the film industry, Bayne observed that blockchain technology had been utilized in the finance, distribution and property sector.

She noted that Web3 technology enables an individual to own an IP. Bayne’s announcement outlines the main advantages of blockchain technology in the film industry. She noted that through Web3 technology, there was no need to establish a studio.

The Web3 technology also enables the community to participate in a project actively. Besides the advantages of Web3 technology, Bayne mentioned the advantages of the Squad platform.

She mentioned that the Squad platform had integrated a unique platform that supports other artists to attain their end plan. The developers of the Squad team utilized internet technology to onboard massive users, developers and businesses on the platform.

Among the core features of the Squad, the platform aims to support Web3 to improve inclusivity and acceptance. She was delighted to state that the main objective of the Squad project was to showcase other people’s work and support them to achieve their goals.

How will Web3 Technology Support Marginalized Community?

Initially, Squad was created to demonstrate the challenges facing marginalized communities, including women and members of the LGBTQIA. In her past life, Bayne confessed to facing multiple challenges, referred to as “pain points.”

She stated that Squad was created to boost the quality of life of women, black people and other vulnerable communities. The Squad team plans to feature these vulnerable communities’ “untold” stories in their films.

In her report, Bayne stated that most of her show explores the lives of people stuck in shadows. This implies Bayne has focused on bringing people who haven’t been heard to the limelight.

Regarding some of her completed tasks, Bayne outlined some projects focusing on vulnerable communities, such as the “Red Flags.” In this film, Bayne and the team focus more on the social impact of Web3.

She mentioned that Web3 technology had created fierce competition as every creator seeks to assist marginalized groups. The adoption of Web3 in the filming sector has assisted the marginalized community in protecting their image in the media.

In her final remarks, Bayne explained that adopting web3 and blockchain technologies in the film industry has created a unique method of promoting inclusivity. 

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Ripple Network Activity Surges to Unprecedented Levels. Will XRP Price Follow?

The top crypto payment platform Ripple has experienced a massive increase in activity on the network. On-chain data from Santiment shows that XRP wallet address activity has reached it’s second and third-highest levels in the last few days.

Specifically, the network recorded a 4,600% increase in active addresses, which is the total number of unique addresses engaging in any form of transaction on the Ripple blockchain. The huge increase suggests that there are many more people using the network for transactions, which is a sign of increasing adoption.

Ripple has only experienced higher activity than in the past few days back in March when XRP price surged by 45%. in a similar manner, the current sruge in activity is happening alongside an increase in the price of XRP. If the increased activity had anything to do with the XRP rally in March, then a similar price increase may be anticipated if everything else is normal.

The sixth largest cryptocurrency by market cap currently, XRP price has increased steadily in within the last 24 hours to reach a peak of $0.505 from $0.48. Although the price has dipped a bit, it still maintains strong momentum between $0.499 and $0.505, suggesting that it may still push upward at any moment.

Ripple Gaining Popularity In Spite of Court Case

Ripple and its executive have been in court since 2020 to challenge the allegation by the Securities and Exchange Commission (SEC) that XRP is a security. It was a challenging time for the company as many cryptocurrencies including Coinbase delisted the token.

XRP price suffered for a while as a result of the initial effect of the lawsuit. The price plummeted to a low of $0.2118 as exchanges delisted the asset and sentiment around it became negative. Few years down th line, the case is still ongoing, but the sentiment around XRP has improved in spite of the ongoing case.

While Coinbase is still contemplating relisting XRP, renown crypto payment gateway CoinGate has since relisted the asset. Even prior to this, XRP was one of the top performing assets early this year when the crypto market made a recovery from the crash last year.

If anything, the SEC lawsuit has made the cryptocurrency more popular than it initially was, because of the progress the company is making in the case. There have been several small wins and the crypto space is hopeful that things could turn out in favor of XRP, which will be good for the whole industry.

Uphold Refuses to Delist XRP

Even in the heat of the debate on whether XRP was a security or not, one crypto exchange that refused to delist the asset was Uphold. The exchange assured the crypto community last month that it was not delisting XRP or limiting its services in any way because it was convinced that the top asset was not a security.

With the case which is almost coming to a conclusion, XRP and Ripple may be seeing better days if the court rules in favor of the company. This is a landmark case whose outcome will significantly affect the crypto industry especially in the US.

The SEC refers to any cryptocurrency other than bitcoin as a security, so the verdict for XRP could be extended to other crypto assets.

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CypherMindHQ Crypto Trading Robot – Is it the Real Deal?

CypherMindHQ is an AI-powered crypto trading robot designed to maximize profits for traders. Join the revolution and start trading smarter today.

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Russian Government Abandons Plans to Launch National Crypto Exchange

On May 29, the Russian government announced plans to abandon launching the national crypto exchange. The Russian regulators plan to supervise the crypto exchanges in the coming days completely.

In November 2022, the Russian regulatory agencies issued a proposal describing the need to develop a national crypto exchange. The proposal was submitted across the government arms for further review.

Importance of Russian National Crypto Exchange

Afterward, the Russian local government urged the authority to create a unified crypto exchange that would support the operation of the Moscow exchange. An announcement issued by Anatoly Aksakov, a member of the State of Duma, stated that the government had reconsidered the decision to establish a unified crypto exchange. Instead, the authority would prioritize formulating the rules for managing the proposed crypto exchange.

In an interview with the local news site, Izvestia  Aksakov stated that most Russian regulatory agencies demonstrated mixed signals during the previous debate concerning establishing a national crypto exchange. He announced that officials from the Ministry of Finance were among the members who were against establishing the national crypto exchange.

Aksakov, with vast expertise and experience in the financial market, observed that establishing the proposed crypto exchange will boost Russian cross-border transactions. He admitted that the crypto exchange would minimize cases of violation of law, shielding the local firms from facing any administrative sanction.

Why Did Russians Scrap the Development of the National Crypto Exchange?

Irrespective of this, Aksakov noted that with the rise of the crypto-savvy population in Russian more trading platforms would be created. He urged the regulators to adopt an enforcement action to supervise the operation of the local crypto exchanges.

In his speech, Aksakov stated that the central bank of Russia would be mandated to regulate the crypto exchange. Recently the Russian apex bank launched a regulatory framework to support the operation of the national crypto exchange.

In response, the deputy governor of the Bank of Russia, Alexey Guznov, stated that the motion to establish the crypto exchange was inappropriate. He confessed that it was too early to hold advanced talks concerning establishing crypto exchanges in Russia. 

Guznov suggested that the proposed crypto exchanges should be used in cross-border trade to streamline the export and import processes. He mentioned that regional investors could settle for parallel imports more effortlessly by managing the crypto exchange to control cross-border transactions.

In addition, the local crypto firms have opposed the creation of a national crypto exchange in Russia. They have urged the authority to create a friendly environment for crypto by implementing a well-defined regulatory framework. 

In an advanced report, the compliance officer at BitRiver, Oleg Ogienko, argued that the regulatory framework would address cyber attacks battling the digital sector. He urged the government to adopt restrictive measures to flee non-compliant crypto entrepreneurs.

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Gemini Teams Up With Bankrupt Genesis to Challenge SEC Case

Top crypto exchange Gemini has teamed up with bankrupt digital asset lender Genesis Global Capital to challenge a Securities and Exchange Commission (SEC) case against the exchange’s earn program.

The SEC had in January this year filed a lawsuit against the two companies, alleging that they sold unregistered securities through Gemini’s earn program.

In response, the two companies have filed a document at the at the United States District Court for the Southern District of New York on Friday, May 26. The document says that the SEC has no legal grounds to claim the earn product was a sale of unregistered securities since it was a lending service and did not involve the sales of any tokens.

“Specifically, the SEC claims that the MDALA—which was entered into as a prerequisite to participation in the Earn program—is itself the unregistered security. This has no basis in law or fact. Further, the Complaint never explains how, when, or where the MDALA was supposedly sold, or on what terms,” the document states.

The two companies are therefore demanding dismissal of the lawsuit for two reasons. First, the program wasn’t an investment contract or security note that qualifies as “security” under federal law. Secondly, the SEC has failed to prove that the MDALA was sold to anyone, even if it adequately pleaded that it was a security.

“Accordingly, there was no requirement that any party register it with the SEC, and so there was no violation of Section 5. This point is discussed in detail in Genesis’ motion to dismiss the Complaint, and Gemini incorporates Genesis’s arguments in that regard,” the document further argued.

SEC Crypto Crackdown

Crypto companies have come under intense pressure from the SEC and other regulatory bodies in the US this year. The commission through its chair person Gary Gensler, has argued that all cryptocurrencies except bitcoin are securities.

Based on this assumption, any crypto company that involves trading of crypto tokens is considered a securities exchange, and the commission now claims that Gemini and Genesis sold unregistered securities to investors.

This kind of crackdown has caused many crypto companies to relocate from the country, while more are considering it. Gemini itself has launched a derivatives trading platform outside of the US because local regulation forbids such trading.

Some lawmakers have argued that such crackdowns can lead to complete paralysis of the crypto industry and all its innovation, which is not healthy for the country’s economic growth.

Even though there have been outcries from crypto companies suggesting a lack of regulatory clarity, the SEC has on many occasions claimed that there is adequate regulatory guidance available for the industry as it is.

Other Lawsuits Against SEC

Gemini isn’t the first to file a lawsuit against the SEC. Coinbase, another US-based crypto giant also filed a lawsuit last month challenging the SEC to provide regulatory guidance.

Asked to respond to the suit, the commission said that coming up with the kind of regulation Coinbase demands takes time, and there’s sufficient regulatory guidance at the moment.

Coinbase has also launched an offshore derivatives trading platform, just like Gemini. Its CEO Brian Armstrong had much earlier stated that the company was open to the idea of relocating from the US should regulatory approach remain unchanged.

Coinbase also recently entered conversations with regulators in UAE about increasing its presence in the region.

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A16z Debuts Cicada, an Anonymous Voting System for Ethereum Network

Andreessen Horowitz (A16z), the fast-growing venture capital firm, has rolled out a unique solidity library dubbed “Cicada.” The newly launched library enables the community to engage in anonymous voting completed on the Ethereum network.

The team behind the Solidity library has integrated cutting-edge tools to uphold privacy and security of the voting system. This implies that the casted votes are protected before the results are announced.

Features of Cicada

An announcement by the A16Z technical expert Michael Zhu revealed that the new library would ensure the voter’s confidential information remains unknown. Zhu stated that the developers integrated zero-knowledge technology such as Semaphore to safeguard the voters’ information.

He explained that Cicada technology utilizes time-lock puzzles, which enable the user to encrypt sensitive data. Zhu mentioned that the time-lock puzzle is a unique type of cryptography that allows data to be decrypted over time.

The puzzle technology was first launched in 1996 but has undergone multiple continuous developments to meet the intended purpose. In 2019 the puzzle system required the user to disclose their “secret value” after some time.

Zhu analyzed that the puzzle technology failed to support the voting system accordingly. He outlined challenges the puzzle technology could have created if the voters went offline after casting their votes. 

Will the Time-Lock Puzzle Improve the Voting System?

Reportedly, the puzzles technology requires the voters to be online, which limits the counting of the votes processes. After analyzing the strengths and the weakness of the puzzle technology, various experts submitted their proposals recommending different ways to improve the efficiency of the time-lock puzzles.

A submission made by the famous cryptographer Giulio Malavolta and his counterpart Aravind Thyagarajan introduced homomorphic technology. The cryptographers strengthened the puzzle technology by enabling the various puzzles to combine and create a final puzzle. 

The final product formed after undergoing the homomorphic process summarizes the individual values. In the final puzzle, it was difficult to identify the exact figure of the individual values; only the total individual values were provided.

Based on the endless benefits of the homomorphic puzzles, Zhu and his development team integrated Malavolta and Thyagarajan systems into the Cicada platform. This integration aimed at enabling the votes to be counted even when the voter is offline.

Importance of Homomorphic Technology

Per the A16z post, the developers confessed they experienced technical complexities while integrating the homomorphic technology into the blockchain network. The post explained the developers encountered challenges when creating a friendly voting system that was easy to use and fair. 

They witnessed that failure to encode the votes at a boolean value of either 1 or 0 made it easy for the attackers to compromise the system. In a situation where the attacker managed to encode the votes to 100, it was easy to manipulate the final results. 

After identifying the threats, the A16z developers agreed to integrate the zero-proof knowledge into the Cicada system. This development aimed at allowing the voters to use zero-proof ballots, illustrating how the voting was done. 

It was reported that the zero-proof ballots reveal how the encoding process was conducted. Additionally, it is used to safeguard the votes from being known before the official release of the results.

How Does the Cicada System Operate?

Furthermore, the Cicada system prevents the public from counting the votes when the polling is in progress. However, after the time-lock period had elapsed, the developers observed that individuals could access the voting content by brutally forcing the logging details for the puzzle. 

The developers plan to address the challenge by integrating the Cicada system into zero-knowledge membership groups such as Semaphore, Semacaulk, or any other zero-knowledge state proof.

Nevertheless, the developers argued that in case an individual attempted to engage in brute forcing of the puzzle, the only details that would be available on the system were the eligibility of the votes. The system will not allow the individual to access the credentials that support the eligibility of the voters. 

In the latter, Zhu shared a link illustrating the voting samples generated by the Cicada system, which is linked to Semaphore technology. He stated that the Semaphore was used to demonstrate the voter’s eligibility.

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Binance Partners with Gulf Innova to Establish Crypto Exchange in Thailand

Binance, the largest crypto exchange by daily trading volume, penned a partnership agreement with Gulf Innova Co, Ltd to expand to Thailand. The announcement conveyed by Binance on May 26 revealed that the crypto exchange received the Thai digital asset operator permit approval from the Ministry of Finance.

The Binance team was pleased to announce that the approval of the permit enabled the firm to provide brokerage and crypto-related services in Thailand. Per the licensing requirement, the Thai Securities and Exchange Commission (SEC) will regulate the crypto exchange. 

Binance Partners with Gulf Innova

According to the Binance report, the Thai offices of “Gulf Binance” will launch in Q4 of 2023. But before the expected launch Binance team has pledged to provide further updates concerning its operation in Thailand.

A subsequent report from the Binance head of Asia, Europe, the Middle East, and North Africa, Richard Teng, revealed that Thailand had experienced high adoption of blockchain technology. He observed that recently the Thai crypto industry had witnessed gradual growth. Teng confirmed that the Ministry of Finance had approved Binance digital asset operator licenses.

In support of Teng’s argument, a Binance spokesperson applauded the Gulf Innova effort in leveraging their expertise and experiences to provide a trading platform for digital assets in the Asian country. The spokesperson announced that the Gulf constitutes the largest market for Thai. 

The Gulf Innova is an affiliate of the Gulf Energy Development company that Sarath Ratanavadi owns. In 2022 the Gulf Innova team signed a memorandum of understanding (MoU) with Binance to establish a trading platform in Thailand.

Importance of Binance Expansion to Thailand

Under the partnership agreement, the Gulf Innova team will support Binance in complying with the regulation. The Gulf Innova will assist the Binance team to operate in a compliant manner.

The Binance spokesperson mentioned that the partnership with a forward-thinking company would boost customers’ experience. He admitted that the partnership would foster innovation and stimulate economic growth.

Additionally, Binance plans to utilize its extensive experience in digital assets to explore new opportunities in Thailand. The partners have been working towards examining the crucial digital assets that will perfectly meet the needs of Thai customers.

According to The Crypto Readiness Index, Thailand has a population of 72 million. Thailand ranks among the emerging crypto hubs in the Southeast Asia country. Correspondingly, a study conducted by Chainalysis revealed that Thai ranks eighth in Global Crypto Adoption. 

Despite the rise of the crypto-native community in Thailand, the country imposed restrive measures on crypto-related payments in 2022. In an interview with the chief executive of Recap, Daniel Howitt mentioned that the crypto ban in Thailand had minimal impact on trading activities.

In January, the Thai regulators imposed new regulations to safeguard investors from exploitation. According to the new rules, all crypto custodial service providers in Thai must develop a contingency plan outlining the strategies to address unplanned events.

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Worldcoin Project Yields $115M in Series C Funding Round

An official publication dated May 25 revealed that the Worldcoin project generated $115 million in a series C funding round. The Worldcoin project team  Tool for Humanity revealed that Blockchain Capital led the completed funding round.

The report stated that the funds generated would be utilized in executing different projects, such as developing an alternative approach to the “oft-derided” CAPTCHA examination.

Worldcoin Funding Round

In an interview with the general partner at Blockchain Capital, Spencer Bogart, he was pleased to announce that the innovative idea adopted by Worldcoin enables the system to differentiate between a bot and a human. He was thrilled to work with the Worldcoin engineers in developing the new tool.

Bogart explained that the bot has been competing with blockchain and crypto-related projects for years. Initially, CAPTCHA has been utilized to differentiate between a botted activity and a human.

He admitted that AI technology has come to replace CAPTCHA technology by introducing automated technologies. A recent study revealed that adopting bot technology has exposed the public to cyber-related crimes. 

In July last year, the Web3 company Civic launched a suite of new tools to combat the use of bots in cybercrime. The Civic’s latest advancement aims to restrict the ownership of digital wallets. The restrictive approach embraced by the Civic group aimed to discourage bots’ use in nonfungible token drops.

Benefits of Worldcoin

In his statement, Borgat admitted that Blockchain Capital invested human and financial resources to support Worldcoin. During the interview, it was observed that Borgat failed to expound on the amount of funds the company generated to support the funding round. 

It was reported that the successful funding round was supported by Andreessen Horowitz (a16z ), Bain Capital Crypto, and Distributed Global.

According to Tool of Humanity, the $115 million will be utilized to conduct an extensive study on strategies to support the Worldcoin initiative and the development of World software.

Over the past, the Tool of Humanity has embraced the culture of innovation, attracting new talents from  Revolut, Uber, Apple, and Electric Coin Company, among other best-performing companies.

A few days ago, the co-founder of Worldcoin, Sam Altman, engaged in advanced talks in the bid to secure $100 million in funding for the iris scanner project Worldcoin.

The Worldcoin project is centered on the Ethereum network, providing users with a platform to boost their income. The Worldcoin group targets to become the leading inclusive identity platform linked to the financial network.

Additionally, the developers of the World ID and the Worldcoin token aim to develop a decentralized autonomous organization (DAO) that will improve the decision-making process.

Worldcoin Reveals Next Move

In the meantime, Worldcoin’s early adopter has reached 2 million. The Tools of Humanity team has confirmed that jurisdictions with restrictive measures cannot access Worldcoin due to regulatory clampdowns. 

The community opposed the idea after the announcement that the WorldID project would utilize human retina organs to verify the account. The WorldID platform integrates the Proof of Personhood (PoP) to distinguish between humans and bots.

At the initial development of the WorldID, the developers regretted that the eyeball scans were damaged immediately after production. The elimination of eyeball scanners has created mixed thoughts among tech experts. 

An announcement conveyed by the popular whistleblower Edward Snowden protested against the Worldcoin technology. On the contrary, the Blockchain Capital group remains committed to supporting the Tools for humanity to attain the end plan.

The Worldcoin technology will soon provide the user with additional information through an open nature. 

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Ava Labs Releases Web3 Launchpad AvaCloud to Enable Businesses Develop No-Code

An official publication by the Brooklyn-based blockchain firm Ava Labs revealed that the blockchain firm has successfully launched AvaCloud, a web3 launchpad. The post mentioned that the AvaCloud technology aims at supporting firms to create “no-code,” which will be controlled by blockchain technologies.

The developers of the AvaCloud infrastructure integrated four main elements to boost the functionality of the launchpad. According to the post, the Ava Labs team integrated an automated blockchain builder, chain interoperability, improved validators, and a unique data tool.

Features of the AvaCloud Platform

In light of the Ava Labs post, each of the main features is designed to support the performance of the launchpad. It was observed that the automated blockchain enables companies to access the blockchain-powered no-code. 

The no-code integration aims to support the customer service team to provide technical support to the user 24/7. Also, the no-code had a unique feature that streamlined the processes conducted on the custom network.

The developers reported that the AvaCloud blockchain utilizes smart contracts that can easily be customized and generated on the blockchain ecosystem.

Correspondingly the developers integrated the managed validators to shift the installation system from manual to automatic. The comprehensive data tools on the AvaCloud platform are utilized to provide blockchain updates from the Avalanche network and the Ethereum network. 

The AvaCloud was launched after the blockchain firm launched Avalanche Warp Messaging, which aimed at supporting communication across the entire Avalanche subnets.

The AvaCloud and Avalanche, Warp Messaging release aims to enable users to build their testnets at zero fees. Ava Labs’ latest development also focused on supporting the user to launch on the mainnet and launch onto the mainnet.

In the latter, the Ava Labs team is seeking to develop innovative tools that the user can later integrate new features and functionalities.

Benefits of AvaCloud

A report from Ava Labs senior vice president of product development Nicholas Mussallem confirms that the launching of the AvaCloud platform aimed at enabling the company to widen its market presence in Web3 at a minimum risk. He admitted that the AvaCloud platform has the massive capability to execute blockchain-related tasks. This implies that companies utilizing the AvaCloud platform do not need to recruit professionals majoring in the blockchain sector.

Initially, the firms utilizing custom blockchain technology were required to invest their financial and human resources to support the operation of the blockchain network. A study investigating the cost and time required to improve the performance of custom blockchain illustrated that deployment of end-to-end blockchain networks required at least 1 year and costed $1.5 million per annum. 

Beyond this, Mussallem explained the setbacks of implementing blockchain in business and government-owned companies. In most cases, Mussallem observed that companies failed to comply with existing regulations fully.

He added that some government agencies and business entities lamented that blockchain technology implementation exposed them to high operation costs. Some Ava Labs supporters noted that blockchain technology was slow compared to other emerging technologies.

How will Blockchain Technology Improve Compliance?

Mussallem mentioned that the growth of blockchain technology had enabled developers to distinguish between the size of blockchain network. He demonstrated that one side of the blockchain network cannot be compatible with the other.

Nonetheless, AvaCloud has adopted blockchain technology supporting Know Your Customer (KYC) requirements. Therefore companies operating under tougher crypto regulations will benefit more by utilizing AvaCloud blockchain.

According to the publication, the AvaCloud blockchain supports the TradeFi adoption and upholds compliance with Health Insurance Portability and Accountability Act (HIPAA) of 1996.  Also, the Ava lab’s latest technology focuses on supporting government projects.

The AvaCloud technology will create revenue opportunities for businesses government and tech developers. The technology used in developing Ava’s new tool utilizes cloud infrastructure created on blockchain technology. The Ava Labs report reveals that these development will lead to mass adoption of blockchain technology.

After the launch of the AvaCloud platform, the team behind AAA games Sharpnel and a Korean-based company SK were among the early adopters of the new tools.

Over the years, the Ava Labs team has worked closely with fast-growing companies such as Deloitte, Wisdom Tree, and T. Rowe Price to provide users with Web2 and Web3 products. 

The need to satisfy the customers’ needs compelled tech company Alibaba to create a unique launchpad designed for business purposes. The Alibaba launchpad aimed to introduce the metaverse technology to the Avalanche platform.

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Former CFTC Commissioner Classifies Ether as Security and Commodity

In a recent announcement Dan Berkovitz, the former Commodities Futures Trading Commission Commissioner (CFTC), stated that Ether (ETH) could be grouped as a security and commodity. Commissioner Berkovitz stated that two regulatory agencies could regulate ETH.

In an interview with Laura Shin titled “Unchained Podcast,” Berkovitz confirmed the possibility of Ether being regulated by the CFTC and the Securities Exchange Commission (SEC). Initially, the SEC and CFTC officials had engaged in heated discussions on classifying the second largest crypto asset Ether. 

CFTC and SEC Classification of Crypto Assets

In the last six months, it was reported that the CFTC official considered Ether a commodity. Elsewhere the chairperson of SEC, Gary Gensler, grouped ETH under a specific legal category. He stated that other crypto assets except Bitcoin should be considered as security.

Gensler’s statement created mixed thoughts on the classification of most crypto assets. Upon further inquiry on the grouping of cryptos, Gensler failed to provide additional information.

According to Berkovitz, the classification of Ether as both a security and commodity could confuse the public. He noted that even though there is a close relationship between the legal definition of commodities and securities.

Citing the legal definition of commodities and securities, Berkovitz confirmed the possibility of grouping digital assets into both categories. He added that grouping a product as either a commodity or security was legally acceptable.

Difference Between Securities and Commodities

A commodity refers to an intangible product that falls under the futures contract. Berkovitz noted that commodities differ from “wheat” and “oats,” which have physical features. From the definition of CFTC, Berkovitz noted that the assets with “futures” elements are regulated by the agency mentioned above.

On the contrary, security refers to physical items such as notes and investment documents. Berkovitz explained under certain conditions, securities can be classified under the futures contract, which CFTC regulates. He emphasized that the term securities were derived from the SEC.

Under the existing regulatory framework, futures and swaps are considered commodities that CFTC regulates. Correspondingly, other digital assets classified as securities are supervised by the SEC.

Berkovitz observed that some of the crypto assets that the CFTC classified as commodities were considered by the SEC as securities. In such a scenario Berkovitz proposed that such a commodity can be regulated under two agencies.

Community Remarks on Classification of Ether

Speaking at the podcast, a partner at Sullivan & Cromwell legal entity Collin Lloyd opposed Gensler’s statement that all crypto assets are classified as securities except Bitcoin. After examining the characteristics of most cryptos, such as the digits attached to their respective blockchain network, Lloyd observed that some of the digital assets failed to qualify as securities.

In his address, Llyod was more concerned about whether digital assets should be traded as securities or commodities. He added that facts and conditions determine the grouping of the crypto.

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Crypto Exchange OKX Establishing Regional Hub in France

A recent report from the Seychelles-based crypto exchange OKX revealed that the firm is seeking to acquire the Digital Asset Service Provider (DASP) permit to pursue the French market. According to the OKX report, the firm plans to establish its regional hub in France.

The Financial Market Authority (AMF) recently approved permits for 74 companies seeking to acquire the French DASP license. OKX plans to join other crypto firms which have broadened their market presence to the regions.

OKX Expands to France

A report from the OKX head of international government relations, Tim Byun, revealed that the crypto exchange plans to explore the French market. He added that the crypto exchange would increase its workforce by recruiting 100 employees in three years.

The suitability of the French market, which ranks as the second largest economy in the EU, had inspired firms to expand to the region. In 2022 the Binance team entered France to create the leading EU hub in the region. The Binance implicit move has created employment opportunities for over 150 employees.

Before the launch of the Binance Paris office, the crypto exchange prioritized complying with the DASP requirements.

In an interview, Byun revealed that OKX plans to recruit 30 professionals from France in the first year. He confirmed that the crypto exchange would increase its workforce by hiring roughly 100 employees in the next three years.

Byun mentioned that the crypto exchange has already started the registration process, which might take six months. At the primary registration process, the AMF official examines whether the company meets the global anti-money laundering requirements.

Examining the Suitability of the French Market

Also, AMF officials are keen to check the firm’s internal operations to evaluate whether management practices uphold conformity. Recently the EU launched the market in crypto assets (MICA), green-lighted by 27 member states.

Elsewhere the French minister of economy and finance, Jean-Noël Barrot, expressed his delight after OKX revealed plans to expand to France. Barrot argued that the presence of OKX in the region supports the country’s objective in exploring Web3.

In 2017 President Macron and his ally Minister Bruno Le Marie demonstrated their commitment to stimulating the growth of Web3 technology in France. Notably, the friendly crypto environment in the French market will aim at providing the user with endless opportunities.

The French regulators plan to use the OKX to experiment with whether the new regulations would bear the desired results. The regulators developed a resilient and secure crypto industry a few months ago to attract foreign investors.

After the engagement, the regulators explored strategies to support compliance and transparency in the crypto sector. Notably, the attempt to comply with the global regulatory requirements compelled the OKX team to increase its workforce to enable the crypto exchange to meet international regulations.

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Openfort Generates $3 Million for Creating Frictionless Wallet for Web3 Gaming

Openfort, a crypto infrastructure company, announced on Monday to successfully generated $3 million in a seed funding round. The company plans to redirect the resources to create a “wallet-as-a-service” product designed for Web3 gaming.

In its advanced announcement, Openfort revealed that Gumi Cryptos led the completed funding round in collaboration with Maven 11. Other fast-growing businesses, including Game7, Newman Capital, and NGC Ventures, were among the key participants in the funding round.

Features of Openfort Frictionless Wallet

The main objective of the Openfort funding round aimed to provide Web3 developers and users with a video game studio that utilizes “frictionless” digital wallets. At the initial development of the new wallet, the developers utilized the application programming interface (API) to support the compatibility of the browser game platform and the PC games centered on Unreal Engine 5 and Utility games.

The announcement revealed that Openfort developers would soon launch the mobile version SDK of the new wallet. In an interview, the co-founder of Openfort, Joan Alavedra, argued that the company’s latest development aimed at eliminating complex crypto transactions by utilizing new technology.

She was pleased to announce that Openfort’s recent advancements aimed to boost user experiences. Alavedra highlighted the key features of the new wallet, which will address the challenges battling digital gaming sector. 

Benefits of Adopting Account Abstraction Technologies 

She mentioned that the developers integrated the game session feature, commonly known as session keys, into the wallet. A session key limits user interaction with blockchain technology through the cookies feature. 

In her report, Alavedra explained the benefits of cookies in gaming. According to Alavedra, the cookie’s features provide the user with crucial information, including their gaming history. The integration of session keys enables the system to distinguish real players from bots.

The Openfort development also allows the system to identify new users’ and players’ activities and monitor their experiences. The development aligns with the company’s core goals of adopting the latest account abstraction technologies. This technology automates most gaming activities to reduce user involvement in the approval of transactions.

A statement conveyed by a managing partner at Gumi Crypto, Rui Zhang, revealed that account abstraction (AA) provides innovative solutions for dealing with Web3 gaming user accounts. Zhang noted that the account abstraction technology enables users to explore the Web2 and Web3 features more seamlessly. 

He confirmed that the Openfort team leads in adopting account abstraction use cases. In support of this, the managing partner at the Maven 11 Balder Bomans revealed that the adoption of verticals, such as games on Web3, has failed to satisfy the user’s needs.

Openfort Next Move

He added that the Openfort team would bolster the user experiences by integrating the AA technology. The Openfort has zero setup fees, allowing users to execute transaction processing effortlessly.

In an earlier report, the Openfort team had planned to utilize the smart contracts to streamline the gaming processes. The adoption of innovative contract technology aims at improving the user experience by allowing the system to perform specific transactions without involving the user.

Interestingly most of the transactions completed by the smart contract technologies utilize the instructional codes to issue commands to the connected decentralized application (dAPPs).

In her concluding statement, Alavedra revealed that the new wallet would provide the user with white-label features. She stated that the developers could customize their products and create projects on the Openfort platform with the white label.

Will Openfort Overcome Competition in Web3 Gaming Sector?

In light of the May 21 announcement, the features of the Openfort wallet can support the Ethereum Virtual Machine (EVM) functionality. The new wallets demonstrated enormous capabilities to support games built on Ethereum, Avalanche, Arbitrum, Optimism, and Polygon, among other networks.

Beyond this, the presence of Openfort in the gaming sector exposes the firm to fierce competition. The race to dominate the crypto gaming industry has challenged MetaMask, Immutable Passport, Coinbase Wallet, and Fractal Wallet, among others, to develop cutting-edge products that address current gaming challenges. 

In the meantime, Openfort has teamed up with Merit Circle and Tacter to create decentralized autonomous organization (DAO) games. The company plans to launch a multi-chain network on the platform in the coming days.

Nonetheless, the Openfort team plans to collaborate with Playfab to strengthen its capabilities in related gaming backends.

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Exchange Safe Review – Is exchangesafe.com Scam or a Legit Crypto Broker?

Exchange Safe Review

I have been reviewing online platforms nonstop for many years. At the same time, there was a point when I was a trader like you, so I’ve had the chance to try many of them as a customer. There came a point in my career when most of the online brokers started to seem similar.

There was nothing new they could offer until I discovered Exchange Safe. My Exchange Safe review talks about how this broker brings a breath of fresh air to the online trading industry.

As a broker, you can only offer what’s technologically available to you. In other words, your options are limited to a certain extent. However, it seems that the options aren’t limited for this broker. Let me tell you more in my ExchangeSafe review.

Tremendously Powerful Trading Platform

How good a broker is can easily be discovered by looking at the trading platform it offers. Exchangesafe.com broker has a trading platform that goes beyond the limitations that many other platforms succumb to. For example, you might download a trading platform on your iPhone and not be able to use it when you switch to a Windows computer or Android phone.

No such compatibility issues will haunt you when you go with the web-based trading platform from Exchange Safe broker. This platform is online and can run on any system, device, etc. that you can think of.

You can use it from anywhere you like and the best part is that the software will be exactly the same no matter which device you are on. It gives you a sense of a uniform trading experience, which makes trading much more exciting and smooth for you.

Trading Education and Tools

It’s a complete system and you will find that out when you look deep into its trading features. At first, I thought it was just another typical online broker. However, when I looked at the educational features of this platform, I was blown away with how well-organized the educational material is. There is a section specifically for basic traders with basic knowledge, guides, and tips. You then have lessons and courses that are targeted at experienced and advanced traders.

The best part about the education ExchangeSafe broker has to offer is that there is no rush. You can learn at a pace you are comfortable with and choose from tutorials, visualizations, videos, and eBooks to learn everything you want. Last but not least, all the trading tools you need are also there on your platform.

Account Manager Help

I have seen that most online brokers wouldn’t offer this feature to their basic traders. So, when you sign up with them and choose a basic trading account, there is no account manager in the features for you. On the other hand, Exchangesafe.com trading platform has this feature available for all of its traders.

There is an account manager for every trader who signs up with this company. The only difference is that you get a junior account manager when you go with a basic account and a senior account manager when you are already experienced and pick an account accordingly.

The account manager won’t trade on your behalf but can definitely help you figure out which strategy will be best for you. For example, if you want to start crypto trading, they can tell you the best crypto assets and strategies that will work for you.

Transparency in All Matters

One of the things that many new traders complain of is the lack of transparency they experience with other brokers. This company has done the exact opposite of that. When you are on ExchangeSafe trading platform, you will know just about everything that affects you in any way. In most cases, most of the fees and service charges that others keep hidden are not even present on this platform.

In addition to that, if there are any commissions associated with your trades, you will know about them beforehand, the company has clear privacy policy and terms of service on the website for you to know how it will use your information and what your use of the service entails.

Is Exchange Safe Scam or Legit?

I always say that you should ask all the right questions before you sign up with a broker. However, when you know you have found the right option, you shouldn’t overthink. I believe this broker is reliable and overthinking may cause you to lose the chance to sign up with it on time.

Final Thoughts

There is a reason I chose to call this broker a breath of fresh air in my Exchange Safe review. I think its features keep the online trading experience quite exciting for traders. It makes trading easy and gives you trading conditions wherein you feel comfortable to trade every day. Perhaps, you should visit the website to know more about it?

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Ethereum Co-Founder Vitalik Buterin Warns on Risk of Overloading Ethereum Consensus

On May 21, the co-founder of Ethereum, Vitalik Buterin, shared an official publication highlighting the benefits of maintaining Ethereum consensus at its minimalism. Buterin’s post mentioned the potential risk of overloading the Ethereum validators with unnecessary devices.

In his blog post, Buterin explained the dangers of strengthening Ethereum consensus beyond its capabilities. Notably, the Ethereum consensus is crucial in validating the block using the proof-of-stake (PoS) technology.

Risk of Overburdening Ethereum Consensus

In September 2022, the PoS mechanism was integrated into the Ethereum consensus to improve the network’s security. Initially, the Ethereum consensus utilized the proof-of-work (PoW) technology before adopting the PoS.

Before the integration, Buterin had warned the developers from misusing the Ethereum consensus. He lamented that inappropriate use of the Ethereum consensus could expose the ecosystem to systemic concerns.

Buterin’s early warnings were accompanied by a report labeled “Don’t overload Ethereum’s consensus.” He urged the developers engaging in unacceptable conduct on the Ethereum consensus to avert their plans.

In his 2021 report, Buterin proposed practical strategies to boost the maintenance of blockchain minimalism technology. Initially, Buterin had received multiple proposals from the developers advocating for using the Ethereum consensus for other business use.

What are Systemic Risks?

A review of the proposals submitted revealed that the developers intended to utilize the Ethereum consensus social category to engage in re-staking projects. Other developers believed that the Ethereum layer-1 forks have enormous capabilities to support data recovery on layer- 2 networks.

Additionally, some developers requested to utilize the Ethereum consensus on price and supporting important data oracles.

As of this writing, the blockchain is ranked among the leading technologies that stimulate economic growth and has the highest adoption. The innovative solutions provided by blockchain technology have inspired many developers to invest in exploring ways to boost the performance of the ecosystem. 

Buterik argued that some blockchain development projects were crucial while others rendered the system more fragile. He lamented that some of the upgrades on the blockchain network could expose the network to systemic problems. 

As such, the occurrence of potential systemic threats subjects the system to bugs and roughly 51% of malicious attacks.

Review of Buterin Proposal

On the pricing aspect, Buterin argued that developing ETH/USD prices under specific terms might lead to misuse of funds in case of agreement violation. Reflecting on a scenario whereby the price oracle allows the ETH card holders and validators to vote in case of misunderstanding, the users can be bribed by one party to side with their proponent. 

Therefore if price oracle disagreements occurs some customers might be exposed to losses. Commenting on this, Buterin proposed adopting a case-by-case mechanism to bolster the functionality of oracles.

 He argued that most oracle challenges were “inherently so different.”In his concluding remarks, Buterin admitted that using Ethereum consensus to perform other duties limits the operation of the validators.

Also, it exposes the Ethereum consensus to high operation costs and complexities. Buterin urged the Ethereum community to maintain the network’s minimalism features. He encouraged the community to participate in re-staking activities on the Ethereum consensus in compliant manner.

Besides supporting the Ethereum consensus performance, Buterin challenged the community to work closely with the developers to explore practical strategies to improve system security.

Recently, the Ethereum team launched the Shapella upgrade to improve network security. On April 12, the Ethereum developers demonstrated their commitment to enhancing the roles of the validators and improving the system’s security.

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Strike Expanding to 65 Countries and Relocate Headquarters to El Salvador

The famous Bitcoin payment company Strike has revealed plans to broaden its market presence to over 65 countries. On May 19, the Strike chief executive officer Jack Maller conveyed an advanced report on the company expansion plan.

Before this, Strike announced plans to relocate its head office to El Salvador. Maller stated that the ongoing regulatory clampdowns in the US forced the firm to establish its presence in a crypto-friendly country such as El Salvador.

Significance of Strike Expansion Plan

Unlike the US, El Salvador has adopted a friendly regulation to boost technological advancement in the region. The regulatory inclusivity approach in El Salvador has motivated the best-performing crypto firms to pursue new opportunities in the region.

In his discussion, Maller briefed on the legalization of Bitcoin as a legal tender in El Salvador. He highlighted the benefits of Bitcoin adoption in El Salvador. A recent update from the El Salvador tourism sector revealed that adopting Bitcoin in the region has attracted many local and foreign investors.

Surprisingly, the entrance of Strike to El Salvador positions the payment company, among other crypto exchanges seeking to obtain operational permits to comply with the regulation. Strike’s expansion plans aim to address the current challenges battling the crypto sector.

Speaking at the Bitcoin 2023 conference in Miami, Florida, Maller announced that the Chicago payment company plans to increase its clientele to 3 billion. In a separate report, Strike vice president of product development Manuel Rios stated that Strike aims to serve 7 to 8 million individuals in every country.

He revealed that the Strike payment application utilizes the Bitcoin and Lightning networks to expedite transactions. 

Features of Strike New App

Rios added that the Strike team has integrated additional features to improve the onboarding process. The team behind Strike’s latest upgrade confirmed that it has been working on revamping the user interface for years.

After passing several beta tests, the Strike new app was first launched in the US market. Rios stated that Strike users who have adopted the new app had provided positive feedback concerning the efficiency and reliability of the payment method. 

Some customers were pleased to announce that the new app has a unique design that differentiates Strike from other brands. In the meantime, users outside the US cannot download or access the new application. 

The Strike platform has provided diverse users with a cheap, secure, fast platform for Bitcoin transactions.The Strike team has also utilized its proprietary tools to enable users to store measurable amounts of funds in either Bitcoin (BTC) or Tether (USDT). 

Per the Strike announcement, users outside the US will complete their transactions using Tether. Afterward, the Strike developers plan to introduce debit cards before the end of this year.

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Ripple Launches Platform for CBDC and Stablecoin Development

Despite the lingering court case against Ripple and its native token XRP, the distributed ledger technology (DLT) payment company has launched a new platform for developing central bank digital currencies (CBDCs) and stablecoins.

Ripple announced on 18 May it is launching a full service platform that will be used to easily mint, manage, transact and redeem CBDCs and stablecoins. The frictionless end-to-end solution will allow central banks, governments, and financial institutions to issue their own central bank digital currency.

The platform makes digitization of the fiat currencies of countries easy, and is a way to bring about inclusiveness in countries and areas where there are many unbanked. While the new platform is built on a separate blockchain, it is powered by Ripple’s fast and seamless payment system.

Central banks, monetary authorities or commercial banks issuing a CBDC will be able to manage the full life cycle of their fiat based digital currency every step of the way, from minting and distribution all the way to redemption and destruction.

End users can also own wallets that enable them to pay for and receive payments for goods and services, just like any existing payment system, including for offline transactions. Even people without smartphones will be able to use such CBDCs.

A Response to the Growing Need for CBDCs

There is a recent rising interest in CBDCs from governments all over the world. China was one of the first to start pursuing a digital form of their currency, the Chinese Yuan. The country is now in advanced stages of testing the CBDC and could be doing an official launch soon.

Other countries like Russia are just starting out, but the trend shows that there will be an increasing demand for CBDCs. While governments say they pursue CBDCs for inclusivity in financial transactions, another leading motivation is to curb the use of cryptocurrencies.

Ripple has seen this potential and is positioning itself as the go-to platform for governments seeking this solution, and has already started working with clients. The company has already assisted the Republic of Palau to create a CBDC. According to the country’s president Surangel Whipps Jr,

“Partnering with Ripple to help create our national digital currency is part of our commitment to lead in financial innovation and technologies, which will provide the citizens of Palau with greater financial access.”

Recent news also reveals that Ripple is working with the Hong Kong government to create a CBDC. Hong Kong Monetary Authority announced that the pilot project will explore the potential use cases of the digital Hong Kong dollar (HKD) using a select group of firms from the financial, payment and technology sectors.

Responding to questions in a Q&A session, Ripple vice president of central bank engagements and CBDCs James Wallis said “Experiences coming out of the Rail 2 pilots will factor into any decisions by HKMA to go live with an e-HKD at a later date (Rail 3).”

The Case Against CBDCs

CBDCs are digital currencies, just like Bitcoin and other decentralized crypto assets. While the possess the attributes of transaction transparencies that are inherent in Bitcoin for example, they possess central control, unlike Bitcoin.

This empowers an entity such as the central bank of a country to directly monitor transactions and can decide who spends how much and on what. CBDCs take financial privacy and power from the people and puts it in the hands of the government, and this has been protested in many quarters.

This is why some crypto fans may be disappointed at Ripple – a leader in the crypto space – for subscribing to facilitating the creation of CBDCs which directly work against everything that crypto represents.

Such a move by the largest cryptocurrency exchange in the world, Binance was severely criticized in thepast, and this may not be an exception. By empowering governments to create CBDCs, Ripple could be helping to facilitate a totalitarian regime in the world, where financial freedom could be lost forever.

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Custodia Bank Set to Launch Bitcoin Custodial Services

The Wyoming-based financial institution Custodia Bank plans to launch Bitcoin custodial service for its diverse clients. Speaking at the Bitcoin 2023 panel in Miami, Custodia Bank chief executive Caitlin Long stated that the diversification of businesses had compelled companies to separate the custody service offering from the other asset management products.

In her presentation, Long outlined different investment companies, including corporate, advisory, and registered investments. Initially, Custodia Bank had issued a 60-day notice informing the customers of the impending launch of Bitcoin custodial services.

Custodia Bank Rolls Out Bitcoin Custody Services

Notably, the  Bitcoin 2023 event recorded the highest absenteeism rate due to crypto market uncertainty. Dylan Leclair, the head of market research, was the core moderator. He worked closely with the chief executive of Lumida Ram Ahluwalia and his close ally Mark Connor the head of research and development at 3iQ.

Based on the Wyoming special purposed depository institution (SPDI) requirement, the regulators demand that the bank provide a 60 days notice before developing custody services for their preferred digital asset.

In her address, Long briefed the history of Custodia banks explaining how it was started as a hardcore Bitcoiner. She lamented that the world is still unprepared for hyperbitcoinization.

According to Long, hyperbitcoinization is a situation whereby Bitcoin becomes the default value whereby most people will prefer BTC compared to the other fiat currencies. She stated that hyperbitcoinization would undermine the growth of the traditional financial system.

Long opposed the idea whereby one financial system hinders the growth of the other. She later explained the benefits of adopting two financial models in the economy. 

Custodia Bank Sues Federal Reserves

Over the past, Custodia Bank has been providing a complete package of financial tools to meet the customer’s ever-changing demands. Initially, the bank was named Avanti before undergoing further restructuring.

Reportedly, the Custodia Bank was the first financial institution to comply with Wyoming SPDI requirements. The attempt to uphold compliance forced the Custodia Bank to seek Fed approval to allow the bank to become a member institution. 

The Custodia group anticipates that the bank will be permitted to access the Fedwire network after obtaining the Fed approval. In 2022, the Fedwire network supported over a hundred million transactions, which generated revenue of $1 quadrillion.

After reviewing the Custodia proposal, the Fed observed inconsistency in the bank’s business plan. On January 27 Fed dismissed the proposal submitted by the crypto-friendly bank due to the potential risk associated with digital assets.

Factors Contributing to Bank Crisis

The Custodia team lamented that the Fed failed to respond within a week, limiting the firm’s expansion. After 19 weeks of waiting, the Custodia bank considered the delays unlawful and filed a new lawsuit against the Fed.

In their court submission, the bank argued that Fed’s delays undermined the firm’s ability to provide crypto-related service to retail and institutional clients.

In her presentation, Long failed to update the attendees on the progress of the Fed lawsuit. However, Long condemned the actions taken by the Fed during the collapse of Silvergate, Silicon Valley, and Signature Bank. 

In March, the head of supervision at the Fed, Michael Barr, issued an anti-crypto speech arguing that the agency’s supervisory approach prevented the banks from collapsing. Barr’s speech coincided with the liquidation of Silicon Valley due to the banking crisis in the US.

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Treat Crypto as Gambling Business – UK MPs Say

UK members of parliament have called for regulation of crypto in the same category as gambling business. The country’s treasury committee made this recommendation citing the risks and uncertainties associated with crypto investing, such as price volatility

A report released by the committee says that crypto assets such as Bitcoin have no intrinsic value, don’t serve any purpose in society and are used to facilitate criminal activities. The committee expressed concern that regulating crypto like any other investment asset would mislead investors to think it is safe.

It is on this ground that the MPs are calling for a regulation that regards crypto assets as gambling.

“…with no intrinsic value, huge price volatility and no discernible social good, consumer trading of cryptocurrencies like Bitcoin more closely resembles gambling than a financial service, and should be regulated as such. By betting on these unbacked ‘tokens’, consumers should be aware that all their money could be lost,” the report said.

Conversely, the report also recommends that regulators keep up with innovation in blockchain – the technology that underpins crypto – since it has potential for other applications such as cross-border payments.

“The events of 2022 have highlighted the risks posed to consumers by the crypto asset industry, large parts of which remain a wild west,” said Harriet Baldwin MP, chair of the treasury committee. “Effective regulation is clearly needed to protect consumers from harm, as well as to support productive innovation in the UK’s financial services industry.”

UK Making a U-Turn?

The UK has shown tremendous support for cryptocurrencies, making it a much more friendly environment for the industry than the US. Its financial regulator, the Financial Conduct Authority (FCA) recently called for input from crypto companies in drafting regulations for the industry.

This gave the impression that the country was ready to embrace cryptocurrencies and help the industry to grow for mutual benefits. However the recommendations by the treasury committee makes it look like the country may be taking a different stand from the previous.

If implemented, the regulations will put crypto investing in the same category as gambling, which could cast a negative shadow on the industry. This doesn’t sit well with CryptoUK, an association of crypto industry players in the UK.

CryptoUK Criticizes Committee’s Report

CryptoUK has voiced its criticism of the recommendations made by the treasury committee suggesting that crypto assets be regulated as gambling. Ian Taylor, board advisor at CryptoUK expressed the board’s concern and disappointment at the the claims that the crypto industry is similar to the gambling industry.

“Professional investment managers see Bitcoin and other cryptoassets as a new alternative investment class – not as a form of gambling – and institutional adoption of unbacked crypto assets has increased significantly.” Talylor said in a comment on the news.

“Furthermore, gambling is exempt from capital gains tax. Does the Government really wish to exclude tens of millions of pounds in tax income from gains made by the buying and selling of unbacked crypto assets?” he added.

According to HM Revenue & Customs, around 10 per cent of adults hold or have held crypto assets. It remains to be seen if the UK will implement the recommendations and lose the income tax from a booming industry like crypto which is seeing wider acceptance as corporate investors see growth potentials in it.

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Tether Set to Plow 15% Profits to Acquire Bitcoin

An official report from the popular stablecoin issuer Tether reveals that the company will heavily invest in purchasing Bitcoin (BTC) to strengthen the excess reserves. The May 17 report disclosed that the company would allocate approximately 15% of the profits to purchase Bitcoin.

The Tether team has proposed that the proceeds generated in May will be utilized to make the first purchase of BTC. Subsequently, the Tether chief technology officer Paolo Ardoino mentioned that BTC had demonstrated a reliable store of value that would stimulate growth in the long run. 

In his statement Ardoino outlined most Bitcoin features, including its resilience, limited supply, and decentralized characteristics. Ardiono argued that Bitcoin’s distinctive features provide innovative solutions that match the needs of institutional and retail investors.

Overview of Tether’s Investment Strategy

The Tether report illustrated that the purchase of BTC was one of the investment strategy implemented by the firm to boost the firm’s financial performance. The Tether team revealed plans to diversify their portfolio reserves in the coming days.

In his report, Ardiono stated that the stablecoin issuer company would consider BTC as minimum reserve assets supported by Tether stablecoins. A recent report from Assurance revealed that Tether owns roughly $1.5 million BTC stored as company reserves.

As of this writing, Tether (USDT) ranks among the third largest cryptos by market capitalization. In addtion, Tether is the largest stablecoin pegged to the US dollar.

According to Tether’s report, the company will only utilize the profits generated to purchase measurable amounts of BTC. The stablecoin issuer will not invest the unrealized gains from changes in crypto prices.

Tether USDT Market Performance

An official tweet from Adroino reveals that the company has accumulated over $ 2.5 billion in excess reserves along with the 100% reserves that back the stablecoin. The report illustrated that the regulators spiking interest and other investments, including gold, compelled the company to back the digital asset using the fiat currency.

Adroino argued that it was important for Tether to protect the user base value since the firm cannot execute fractional reserves done by the financial institutions. He confessed that the fractional reserve approach failed to create more value for the stablecoin.

A review of Tether’s Q1 financial report demonstrated that the stablecoin issuer generated a net profit of $1.48 billion, and the reserves reached an all-time high. The company reserves reached $1.48 billion in Q1. The report demonstrated that the total stablecoin supply jumped by 20% by March.

Tether Face Public Criticism 

Besides generating measurable gains in Q1, the US Securities Exchange Commission (SEC) accused Tether of providing “dubiuos” reserves. SEC Commissioner, John Reed Stark, issued a report on May 8 arguing that the stablecoin issuer’s unaudited reports were meaningless. In his tweet, Stark labeled Tether’s USDT token as “a mammoth house of cards.”

Before this, the US House of Financial services committee issued a stablecoin bill highlighting the key areas that key stakeholders should adjust. Following the release of the Stablecoin bill, the US House of Financial services committee will subject Tether to potential legal action for violation of the law.

Elsewhere market critics argued that Tether fails to provide the user with sufficient information regarding US dollar reserves used to back the stablecoin USDT. A report from a Twitter user, “Girevik,” revealed that Tether violated the US Federal Reserve regulations to fulfill their interest. Girevik argued that Tether has regularly failed to settle the depository charges even after generating considerable income from interest from the US treasuries.

In a subsequent tweet dated May 10, Girevik expressed concern about whether the investors fled the Tether platform to explore the exceptional services banks and money markets provided.  

In a recent announcement by Wall Street Journal (WSJ), it was observed that most documents used to back the stablecoin USDT were fake reports and were associated with shell companies. Additionally, the WSJ report demonstrated that Tether utilized inaccurate and misleading information to back the USDT.

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Coinbase Suspends Ethereum Staking Reward Withdrawal for Three Days, Cites Technical Problem

On May 16, the leading crypto exchange in the US, Coinbase, suspended the  Ethereum (ETH) staking rewards due to technical challenges. The Coinbase team revealed that the suspended ETH staking platform would continue to allow the user to earn rewards which will be paid out after resolving the technical problem.

After assessing the technical hitch, the Coinbase team revealed that it would require three days to address the concern. In their address, they confirmed to identify the system failure, and they would prioritize fixing the bug.

Will Coinbase Team Address the Technical Problem in 3 Days? 

The report illustrated that due to the technical problem, the system would require 48 to 72 hours to address the concern. 

Over the past, the investors have used the Coinbase staking platform to deposit Ether and other proof of stake cryptos. The crypto assets on the Coinbase staking are then utilized to secure blockchain that allows the user to earn measurable rewards.

The distinctive features of the Coinbase digital products allow investors to access the platform and engage in ETH staking easily. Unlike the ordinarily individual staking products that require the user to deposit a minimum of 32 Ether which translates to $58300, the Coinbase platform has no minimum deposit.

A few months ago, the Securities and Exchange Commission (SEC)  alleged that some of the best-performing crypto firms offering staking products contravened US  regulations. In February, the SEC filed a new lawsuit against crypto exchange Kraken for providing unregistered staking services.

Does Coinbase Staking Product Conform with SEC Regulations?

In their submission, the court argued that Kraken failed to conform with the SEC regulation and withheld relevant information on risk associated with staking products. The court ruled out that Kraken should suspend the ETH staking withdrawal platform indefinitely to meet the regulatory requirements.

Additionally, Kraken non-compliance with the SEC regulation subjected the firm to settle a court fine amounting to $30 million. 

Even though the SEC has not imposed charges on Coinbase staking products, the regulatory agency issued a Well Notice in March.

A scrutiny of Coinbase Well Notice revealed that the SEC would take potential legal action against the crypto exchange for violating the securities regulations. Responding to the Well Notice, the Coinbase team argued that the SEC was examining the conformity of most of its digital products, such as staking services offered. The Coinbase report indicated that the staking services are not classified as securities. 

Coinbase Demands for SEC Regulatory Clarity

The team agreed to undergo further potential action against the SEC in a US court to address the matter. In July, the crypto exchange filed a petition requesting the SEC to clarify crypto regulations. 

After the long wait, the SEC  offered their responses to Coinbase, urging the court to dismiss claims submitted by the crypto exchange. The SEC argued that the Coinbase team demanded the commission adopt a different regulatory approach, which was impractical. 

The SEC responses created mixed thoughts among the Coinbase community. Some Coinbase users argued that the SEC action forced the crypto exchange to halt the ETH staking rewards.

A subsequent report from the Coinbase team revealed that the  SEC May 16 response was not associated with suspension of the ETH staking platform. The Coinbase team plans to issue a statement after either 48hrs or 72 hrs explaining the nature of the technical issue on the ETH staking product.  

In the meantime, the Coinbase team will keep the community updated on the progress of fixing the technical problem.

The post Coinbase Suspends Ethereum Staking Reward Withdrawal for Three Days, Cites Technical Problem first appeared on CryptocyNews.com.

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Ethereum Network Resumes Finalizing Blocks Feature After Suffering Technical Issues

On May 12, the second largest blockchain by market capitalization, Ethereum, suffered technical challenges that disrupted the operation network on the finalizing blocks for over an hour. The Ethereum finality issues created embroiled debates among consumers. 

A scrutiny of the market critics revealed that most users were concerned about the security of the Ethereum network. A report from Ethereum Foundation stated that suspension of the block’s finalization feature created multiple pending transactions which cannot be reordered or retraced back to the network. 

The analyst argued that finality challenges only take 15 minutes and might require burning 33% of total staked ETH.

Ethereum Network Finality Issues

It was reported that on May 11 at noon, the Ethereum network experienced a similar challenge where the blocks failed to validate for more than 25 minutes. Following the two finality challenges, the Ethereum community have attempted to examine the cause of the problem. 

A tweet from the popular venture capitalist Adam Cochran lamented over the Ethereum block finality, which made the user inactive for over an hour. Cochran believed that the technical hitch was a minor problem affecting one client but not the larger protocol.

Commenting on Cochran’s concern, the Ethereum core creator Eric Conner argued that the finality issues created bugs in some clients’ accounts. He stated that the technical challenges had minimum impact on the Ethereum network.

Over the past, the Ethereum network has attracted many clientele due to its stability and reliability. However, the two incidences of finality challenges have sparked debates on Ethereum network credibility and stability.

Ethereum Resumes Block Finalization

A report from Ethereum developer Toghrul Maharramov urged the company to investigate what happened to the network to develop a clear understanding of finality concerns. On the contrary, another Ethereum developer, Superphiz, shared a warning message.

He argued that the finality concern has minimal impact on halting transactions. Superphiz explained that finality issues have minimum effect on the on-chain activity since most services are conducted atop Ethereum.

He added that the atop Ethereum facilitates a multi-billion-dollar network of financial tools. As such most of the economic infrastructure and applications on the Ethereum network can change operations due to finality issues.

According to Superphiz, a third wave of the finality challenge might occur if the network’s validators fail to increase the hardware specifications. He urged the Ethereum developers to deploy patches where necessary and turn on the minority client mode.

An announcement from crypto exchange DyDx revealed that the finality challenges forced the company to suspend deposits. 

As of this writing, the Ethereum network is operating to its complete capacity, and blocks are finalizing perfectly. According to CoinMarketCap data, Ethereum is exchanging hands at $1,822.68, up by 0.97% in a day. The Ethereum trading volume jumped by 30.65% to reach $5,869,805,904 in the last 24 hours.

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