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Business

Namibia signs crypto exchange regulation bill into law

The Namibian Government’s recent decision to sign a law regulating Virtual Asset Service Providers (VASPs) marks a significant shift from its previous stance of banning cryptocurrency exchanges. The Namibia Virtual Assets Act 2023 is a crucial milestone in the country’s approach to regulating cryptocurrency-related activities. This article explores the implications of this new law, its objectives, and its potential impact on the broader cryptocurrency landscape in Africa.

Namibia’s legal U-turn began in May 2018 when the Bank of Namibia revised its initial decision to ban cryptocurrency exchanges. Fast forward to July 2023, and the country has officially embraced a regulatory framework to supervise crypto exchanges. This move signals a maturing attitude towards virtual assets and showcases Namibia’s willingness to embrace technological advancements in the financial sector.

Key Objectives of the Namibia Virtual Assets Act 2023

a. Consumer Protection: One of the primary focuses of the law is to safeguard consumers engaging in cryptocurrency transactions. By establishing a regulatory authority, the government seeks to ensure that consumers are not exposed to fraudulent or unreliable services.

b. Preventing Market Abuse: The law addresses concerns about market manipulation and fraudulent activities related to virtual assets. By implementing regulatory measures, Namibia aims to maintain market integrity and investor confidence.

c. Combating Money Laundering and Terrorism Financing: The Act also targets money laundering and terrorism financing risks associated with cryptocurrencies. By imposing strict compliance measures on VASPs, the government seeks to mitigate potential threats and align with international anti-money laundering standards.

The law brings a strong deterrent for non-compliance, with penalties of up to 10 million Namibian dollars ($671,000) and a maximum of 10 years in prison for offenders. Such stringent measures are intended to encourage VASPs to adhere to the regulatory framework and foster a secure and transparent crypto market.

It’s worth noting that the Bank of Namibia maintains its position that cryptocurrencies will not be recognized as legal tender in the country. While this stance may limit cryptocurrencies’ use for everyday transactions, it does not hinder their potential as investment vehicles or stores of value assets. Namibia’s move towards regulation places it among a growing number of African nations actively engaging with cryptocurrency legislation. Countries like Botswana, Kenya, Mauritius, and Seychelles have already enacted their own regulatory measures, recognizing the importance of balancing innovation with investor protection.

However, some nations, like Cameroon, Ethiopia, Lesotho, Liberia, the Republic of the Congo, Sierra Leone, Tanzania, and Zimbabwe, continue to enforce a ban on cryptocurrencies. The diversity in regulatory approaches across the continent reflects the ongoing global debate on how best to handle the emergence of virtual assets.

As Africa continues to grapple with various regulatory approaches, Namibia’s embrace of crypto regulation sets a positive precedent for other nations to follow suit.

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Business

Worldcoin Unveils Exclusive NFT Project to Commemorate Mainnet Launch

Worldcoin, a groundbreaking project founded by Sam Altman, Alex Blania, and Max Novendstern, has made yet another stride in the crypto space with the launch of its NFT project, ourZORA collectible. This collection marks the project’s first NFT endeavor and pays homage to Worldcoin’s mission to create an inclusive platform, preserve privacy, and explore the potential of AI-funded Universal Basic Income (UBI).

At the core of the Worldcoin ecosystem are two vital components: the privacy-preserving digital identity system, World ID, and the digital currency, WLD, which is distributed to individuals based solely on their human identity.

The World App, the project’s protocol-compatible wallet, empowers users to secure their share of the digital currency. By utilizing Orbs for biometric verification, World ID ensures users’ uniqueness while safeguarding their privacy.

In celebration of this significant milestone, Worldcoin has announced the release of an exclusive NFT collection. Additionally, Binance users can now deposit WLD tokens, with withdrawals set to commence on July 25, 2023, at 09:00 UTC.

Worldcoin’s vision to empower individuals globally while preserving their privacy and enabling access to global finance sets it apart in a landscape where AI and blockchain integration are gaining momentum. However, some blockchain personalities, including Jack Dorsey of Block and Vitalik Buterin of Ethereum, have voiced criticism of the project, suggesting alternative solutions to the challenges it seeks to address.

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Business

Momint Launches Blockchain Wallet That Allows South Africans to Spend Crypto at Over 10,000 Retailers


Momint, a Cape Town-based tech start-up, is breaking new ground with its innovative blockchain wallet, allowing South African consumers to use their crypto at over 10,000 retailers nationwide. This groundbreaking feature lets users spend their digital currency on a variety of goods, from food and household items to airtime and data, at major retail partners like Checkers, Woolworths, Engen, and Takealot. Even transportation options, such as Lift Airlines and Intercape buses, accept crypto for travel fees.

But that’s not all; Momint’s impact goes beyond large retailers. With the option to buy a 1Voucher with crypto, more than 10,000 small businesses and spaza shops are now part of the crypto spending potential, supporting the growth of South Africa’s informal economy.

The Momint blockchain wallet doesn’t stop at national borders. It enables transactions and payments at 5,000 overseas retailers, providing users with seamless global access. This not only facilitates cross-border fund transfers but also does so at a fraction of the cost associated with traditional methods, making centralized financial systems and conventional banks unnecessary.

While Momint is not a cryptocurrency exchange platform, its in-app wallet integrates with external exchanges like Transak and BankX, allowing users to conveniently top up their crypto within the app. Real-time exchange rate information assists in purchasing USDC and Ethereum directly from the wallet.

Safety and compliance are top priorities for Momint’s blockchain wallet. By incorporating peer-to-peer sending capabilities and adhering to “know your customer,” “know your transaction,” and anti-money-laundering checks, the platform ensures secure and compliant transactions.

Ahren Posthumus, CEO of Momint, highlighted the transformative potential of the technology that is granting consumers true self-sovereignty over their digital assets. According to Ahren, by removing barriers and increasing accessibility, Momint is at the forefront of revolutionizing Africa’s financial landscape, empowering individuals to embrace crypto for their daily purchases.

In conclusion, Momint’s blockchain wallet is a trailblazer, paving the way for widespread crypto adoption in South Africa. Its inclusive and efficient financial ecosystem fosters growth in the informal economy, setting the stage for a more financially empowered future in the region.

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Business

Bitmama’s Cross-border Payment Platform Changera Integrates With MoneyGram

Changera, a dynamic cross-border payments startup, has teamed up with MoneyGram, a leading global player in digital peer-to-peer payments, and the open-source Stellar network, ushering in a game-changing collaboration that enables cash-to-crypto deposits and withdrawals worldwide.

This integration marks a significant stride towards Changera’s goal of extending access to cross-border payments for individuals and businesses on a global scale. Customers can now take advantage of cash-in services in Canada, Senegal, Uganda, and Kenya, while cash-out services using USDC, Circle’s stablecoin, are made possible through the Stellar blockchain network. These services are available at participating MoneyGram locations in over 180 countries, making it an extensive and accessible solution.

Ruth Iselema, the CEO of Changera, highlighted the importance of this collaboration, stating, “Our primary objective is to simplify the funding of Changera wallets for users. With approximately 1.4 billion people lacking bank accounts globally, and 60% of adults worldwide operating in the cash economy, our solution comes at a crucial time. MoneyGram’s vast agent network will facilitate easier cash deposits and transfers in these regions, granting recipients unparalleled access to conveniently cash out their funds. This groundbreaking collaboration between MoneyGram and an African fintech company outside of traditional banking institutions makes us proud pioneers.”
With direct cash deposits and withdrawals now available, Changera’s customers can experience a significant enhancement in accessing their funds rapidly and securely, removing previous limitations. The company anticipates that individuals in Canada, Senegal, Uganda, and Kenya will enjoy cost savings and faster transactions when depositing cash into their Changera Wallets at nearby MoneyGram agents. This milestone cements Changera’s position as a pioneer in delivering cutting-edge financial solutions that cater to the needs of a global clientele.

Founded in 2021, Changera’s mission revolves around providing seamless and secure cross-border payments and remittances for its customers. With a particular focus on businesses in Nigeria, Ghana, Kenya, and Canada, the fintech platform offers a compelling value proposition.

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Business

Bundle Africa shuts exchange operations after three years

Bundle Africa, the crypto payments app operating for three years, has recently announced discontinuing its exchange services. The company’s focus will now shift toward its peer-to-peer platform, Cashlink.

In a statement released recently, Bundle Africa revealed that the decision to halt exchange services was made by its shareholders as part of a business restructuring plan. The company expressed its commitment to addressing the needs of the growing Web3 and blockchain community through its peer-to-peer platform, Cashlink. Notably, Bundle Africa has achieved significant milestones, with 50,000 monthly active users and a monthly volume of $50 million on Bundle, along with over 3 million transactions on Cashlink.

With the announcement, users will no longer be able to sign up on Bundle, deposit assets into their wallets, or swap assets, except for USDT. They are encouraged to withdraw all their funds to any exchange of their choice. The deadline for converting assets to USDT is set for the 30th of August, 2023.

Despite this transition, Bundle Africa reassures its users that their funds are secure and can be withdrawn until September 10th. The company’s CEO, Emmanuel Babalola, emphasized the team’s commitment to providing unparalleled support during this period of change.

The cessation of Bundle Africa’s exchange operations comes at a challenging time for the African crypto industry. Other Nigerian crypto startups, such as Nestcoin, Fluidcoins, and Lazerpay, have also faced difficulties, showcasing the volatility and challenges that exist within the crypto space.

As Bundle Africa realigns its focus towards Cashlink and other services, it remains to be seen how the company will navigate the ever-evolving crypto landscape while striving to meet the needs of the blockchain community in Africa.

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Business

African DeFi Platform Mara Releases Ethereum-Compatible Testnet

Mara, the Africa-focused decentralized finance platform, has released a testnet for its upcoming project called Mara Chain. This innovative Ethereum-compatible layer 2 network operates using MARA tokens for fees, as shared by the developers in an email statement.

This release opens up opportunities for developers in Nigeria and across Africa to construct and evaluate their decentralized applications on the Optimism forked Mara Chain. The platform’s launch follows closely after the introduction of the Mara Wallet, which facilitates users in trading and withdrawing both fiat currencies and tokens.

CEO of Mara, Chi Nnadi, emphasized the significance of blockchain technology as a crucial utility and infrastructure for every country, comparable to electricity or the internet. He further expressed that Africa holds immense potential that can be unlocked by utilizing blockchain technology to provide widespread benefits for its people.

Testnets, such as the one introduced by Mara Chain, replicate real-world blockchains, enabling developers to test applications and identify any potential bugs or shortcomings prior to a full-fledged launch.

The developers behind Mara Chain have outlined several advantages of their platform, including sub-second transactional speeds, low gas fees, and compatibility with other Optimism-based networks.

Moreover, Mara actively seeks feedback from the developer community and partners, demonstrating their commitment to continuous improvement of the platform in preparation for the mainnet launch. By gathering valuable input, Mara aims to refine its offerings and create a robust and user-friendly decentralized finance ecosystem for Africa and beyond.

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Opinions

Cryptocurrency Integration In Business

Deloitte, a prominent audit firm, has released a groundbreaking research report shedding light on the use of cryptocurrencies in business. The report highlights the advantages of incorporating digital currencies into business operations and explores the potential impact on various aspects of the business landscape. We delve into the insightful details of the report, examining the benefits, factors to consider, and the opportunities that businesses can harness by integrating cryptocurrencies into their operations.

One of the key insights from the research is how adopting cryptocurrency in business can open up previously untapped demographic groups. As cryptocurrencies are often favored by tech-savvy individuals with disposable income, businesses accepting crypto payments can access this new consumer base, gaining a competitive edge in the market. Additionally, early adoption of cryptocurrencies helps companies develop an internal understanding and preparedness for potential future use, especially as central bank digital currencies (CBDCs) gain traction.

The adoption of cryptocurrencies can significantly enhance treasury activities and capital management. With quick and secure transactions, businesses can better manage their capital, control digital investments’ risks and opportunities, and gain transparency into their financial balances.

Cryptocurrencies also serve as a valuable hedge against inflation and provide unique investment opportunities. Their limited supply prevents arbitrary printing or issuance, making them less susceptible to inflationary policies. This feature contributes to increased demand and potential appreciation during inflationary periods, offering investors a means to preserve the value of their wealth.

Deloitte’s research provides businesses with two main approaches to integrating cryptocurrencies. The first option offers a simpler solution through third-party suppliers or custodians, suitable for those with basic understanding. On the other hand, self-custody grants businesses more control but requires greater crypto experience.

However, businesses must recognize that alongside the potential rewards, there are challenges and responsibilities to address when incorporating cryptocurrencies. Adherence to Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations is crucial to mitigate risks associated with cryptocurrency transactions. Moreover, companies must understand the risks posed by second-layer protocols like smart contracts and take appropriate security measures.

Navigating tax and accounting treatments, addressing payroll implications, implementing robust security and custody measures, managing volatility and risks, and offering customer education and support are all essential considerations for businesses integrating cryptocurrencies.

A well-defined implementation roadmap, backed by strong leadership and departmental engagement, is vital for successful crypto integration. Companies embracing cryptocurrencies strategically are well-positioned to thrive in the future digital economy, as the corporate landscape continues to evolve.

As businesses stay informed, and educated, and actively embrace the opportunities cryptocurrencies offer, they can pave the way for a transformative path to success in the ever-changing world of finance.

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Business

Meme Coin Economy Grows By $759M In 30 Days

The meme coin economy continues to demonstrate remarkable growth, reaching a valuation of $16.29 billion, a substantial increase from $15.54 billion just a month ago on June 22. This surge represents a gain of over $759 million, equivalent to 4.82% against the U.S. dollar within the top meme coin economy.

Leading the charge, Dogecoin has witnessed an impressive 10% surge over the past 30 days and a 1.3% rise in the past week against the U.S. dollar. With a market valuation of $10.12 billion, Dogecoin currently holds a dominant 62.12% share of the entire meme coin economy.

Meanwhile, SHIB has shown moderate gains of 1% against the U.S. dollar in the last month but experienced a slight loss of 2.7% in the past week. With a market valuation of $4.61 billion, SHIB accounts for 28.29% of the overall value of the meme coin economy. Together, Dogecoin and SHIB represent an impressive 90.41% of the total meme coin market.

Pepe (PEPE) emerges as the third-largest meme coin asset, experiencing a 1.6% increase in value over the past month. However, PEPE faced a 7.6% dip in the past week. Its market valuation stands at $628 million, contributing 3.85% to the overall meme coin economy.

In the last 24 hours, global trade volume within the meme coin economy reached $528 million. Notably, kabosu inu (KABOSU), 3d3d (3D3D), and pepemon pepeballs (PPBLZ) emerged as the top three performers on Sunday, showcasing gains ranging from 9.9% to an astounding 210%.

Conversely, shibaken finance (SHIBAKEN), cheems inu (CINU), and Dingocoin (DINGO) experienced declines against the U.S. dollar, ranging between 7% and 22% in the past day. In terms of 24-hour volume, DOGE takes the lead, followed closely by SHIB and PEPE, with FLOKI securing the fourth position in this weekend’s meme coin market. The thriving meme coin economy continues to be an intriguing area to watch, attracting both traders and enthusiasts with its dynamic and unpredictable nature.

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Opinions

Coinmarketcap (CMC) Report Highlights Exciting Trends In the Cryptocurrency Market For H2 2023

The cryptocurrency market is evolving rapidly, and the H2 2023 Coinmarketcap (CMC) report sheds light on some exciting developments that could shape the industry in the coming months. From potential regulatory breakthroughs to innovative blockchain solutions, the second half of 2023 holds both opportunities and challenges for crypto enthusiasts.

Bitcoin Spot ETF: A Major Debate

The much-debated topic of a Bitcoin spot ETF continues to capture the attention of the crypto community. Prominent asset managers like BlackRock, Valkyrie, Fidelity, ARK Invest, and 21 Shares have filed for approval of a Bitcoin spot ETF in the U.S. If regulatory approval is granted, these ETFs could attract significant institutional investors, potentially driving Bitcoin’s price beyond its current all-time high.

DePIN: Unlocking New Opportunities

The emergence of solutions like Decentralized Physical Infrastructure (DePIN) presents exciting new opportunities for sharing physical assets and services, such as warehousing and data networks. This concept incentivizes builders and users and allows access through staking, burning, or purchasing tokens/NFTs. Key industry players already exploring DePIN include Helium, IoTeX, Arweave, and Filecoin.

Real World Assets (RWAs) Go On-Chain

The crypto ecosystem is witnessing a growing focus on making Real World Assets tradeable on-chain, and H2 2023 could see further developments in this direction. Credit market protocols like Maple Finance and Goldfinch enable businesses to leverage DeFi for securing financing and loans, opening up new possibilities for the integration of traditional finance with the crypto space.

Liquid Staking Derivatives (LSDs) Continue to Thrive

H1 2023 witnessed a surge in activity for Liquid Staking Derivatives (LSDs) following the Ethereum Shapella upgrade. Platforms like Lido and Rocket Pool experienced significant growth in their total value locked (TVL). This trend is expected to continue in H2 2023, with platforms like Pendle, Lybra, and Flashstake gaining momentum in the LSDfi landscape.

Restaking: A Promising Concept

Restaking gained traction in H1 2023, particularly with the introduction of EigenLayer. The middleware platform enables users to earn an additional yield on their staked ETH or liquid staked ETH tokens by restaking them elsewhere. EigenLayer’s Restaking Smart Contracts witnessed significant demand, and the platform plans to increase its LST restaking capacity, potentially giving rise to a new wave of restaking projects.

zkSync and Modular Blockchains Offer Scalability Solutions

zkSync, a popular Ethereum-based layer-2 solution, competes with existing Ethereum optimistic rollups like Optimism and Arbitrum. As a zero-knowledge rollup (zkRollup) solution, zkSync utilizes zero-knowledge technology to enhance Ethereum’s throughput and enable new applications. Meanwhile, Modular Blockchains (Celestia) aim to address the blockchain trilemma by separating blockchains into layers, offering developers the ability to leverage modular data availability and consensus layers for dApps and sidechains.

FTX Bankruptcy: Progress Toward Resolution

The FTX Bankruptcy outlook for H2 2023 and beyond indicates promising signs of progress. Over $7.3 billion in liquid assets were obtained in April 2023, and creditors have been given a “Customer Bar Date” for a potential refund. Although the path to resolution is complex, there is hope for a resolution in H2 2024, as stated in the CMC report.

The H2 2023 Coinmarketcap report presents an optimistic outlook for the cryptocurrency market, with various trends and developments pointing to a promising future. As regulatory developments, innovative solutions, and improved scalability measures continue to unfold, the crypto industry is poised for further growth and maturation in the coming months.

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Business

Egyptian And Nigerian Central Banks Sign Fintech Agreement To Deepen Cross-Border Regulation

In a significant move towards promoting financial technology (fintech) in Africa, the Central Banks of Egypt and Nigeria have recently signed a collaborative agreement aimed at deepening cross-border regulatory collaboration and information sharing. This Memorandum of Understanding (MOU) is not only expected to boost innovation but also encourage regional technology investments. The signing ceremony took place during the Seamless North Africa 2023 meeting held in Cairo, where both countries demonstrated their commitment to fostering fintech growth.

Aishah Ahmad, the Deputy Governor of the Central Bank of Nigeria (CBN), expressed her enthusiasm for the collaboration, emphasizing that it would pave the way for cultivating an innovative space for fintech startups and entrepreneurs in both Egypt and Nigeria. By accelerating financial inclusion, deepening payment systems, and driving economic growth across the African continent, this partnership is poised to bring significant benefits to the region.

As part of the fintech bridge initiative, the London Institute of Banking & Finance joined hands with the Egyptian central bank, signing an MOU that underlines their commitment to supporting the Egyptian fintech sector. This partnership will involve offering training programs, workshops, and courses to leaders in the Egyptian fintech space. Such training initiatives can play a pivotal role in fostering expertise and nurturing talent, ultimately contributing to the growth and sustainability of the sector.

During the same event, Governor Hassan Abdallah of the Egyptian central bank announced the release of the Fintech Outlook report. This report highlights the positive indicators and potential of Egypt’s fintech sector. By shedding light on the sector’s strengths, challenges, and opportunities, this report can be instrumental in attracting investors and stakeholders, ultimately fostering its growth.

The collaborative agreement between the Egyptian and Nigerian central banks marks a significant step towards promoting fintech development in Africa. By facilitating cross-border regulatory collaboration and sharing information, the partnership aims to enhance financial inclusion, drive economic growth, and stimulate innovation across the continent.