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IMF Warns Zimbabwe On Gold-Backed Digital Currency

The Zimbabwean monetary authorities have been urged by the International Monetary Fund (IMF) to carefully weigh the advantages of issuing a digital currency backed by gold against any potential economic risks.  The international lender suggested that instead of rushing to issue the gold tokens, officials think about liberalizing the nation’s foreign exchange market.

The Reserve Bank of Zimbabwe (RBZ) started issuing the digital currency backed by gold just days prior to the IMF’s comments.  The RBZ is attempting to reduce local demand for US dollars by introducing gold-backed digital coins.

The local currency has fallen in value on the black market from just over US$1:ZWL1000 at the beginning of 2023 to about US$1:ZWL2000 by the end of April due to high demand and limited supply for the dollar on the official market. The RBZ increased the benchmark rate in response to the local currency’s depreciation over the previous year. In the same year, the government’s central bank unveiled actual gold coins that it claimed would serve as an alternative store of value.

The IMF warned of several risks associated with such a digital currency after the RBZ began issuing the gold-backed digital currency, though.

“A careful assessment should be conducted to ensure the benefits from this measure outweigh the costs and potential risks including, for instance, macroeconomic and financial stability risks, legal and operational risks, governance risks, cost of forgone FX reserve,” the unnamed spokesperson said.

In addition to calling for the liberalization of the foreign exchange market, the IMF spokesperson reportedly advised Zimbabwe’s monetary authorities to stick to more traditional solutions, like preserving a tight monetary policy.

The Bretton Woods organization has reprimanded an African nation for using an unconventional strategy for managing its currency for the second time with this warning. After the Central African Republic adopted bitcoin, the IMF issued a 2022 warning about a possible threat to the country’s financial stability.

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Binance Exiting Canada’s Market

Binance cited two factors for leaving Canada in its statement on Twitter: the country’s new stablecoin guidance and investor restrictions for cryptocurrency exchanges.

“Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace,” the statement said. “Unfortunately, new guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time.”

Other cryptocurrency businesses that have left Canada include OKX, Paxos, and dYdX, all of which gave the regulatory environment as their reason. In July of last year, Bittrex left Canada, citing regulation as its primary justification.

As a result of being compelled to register with them by March 23 due to pressure from the Canadian Securities Administrators, Binance has left the market. By the deadline, crypto trading firms that had not complied with the “pre-registration requirements” had to stop operating. 

The Canadian agency also instructed exchanges to cease selling and holding stablecoins and to commit to segregating cryptocurrency custody while keeping a chief compliance officer in place.

Binance stated that it “put off the decision” for as long as it could before concluding that there was no way forward. 

The tweet said that Binance is confident that it will “someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets.”

The remaining Binance customers in Canada will receive “an email with comprehensive information on how this will impact their accounts going forward.”

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French citizen jailed for buying a car with Bitcoin in Morocco

Thomas Clausi has been fined €3.4 million and sentenced to 18 months in prison for using cryptocurrency, which Morocco considers illegal.

According to a recent report from Euronews, the Moroccan courts have upheld an 18-month prison sentence handed down to the 21-year-old French citizen for fraud and illegal use of cryptocurrency.

According to Thomas Clausi’s attorney, Mohamed Aghanaj, the ruling against him was maintained by the Casablanca Court of Appeal on Tuesday.

Clausi was detained in 2021 after using Bitcoin to purchase a high-end vehicle and according to Moroccan customs, using cryptocurrencies is against the law. 

Along with the jail time, he also had to pay a fine of over €3.4 million. The legal action was started in response to a fraud accusation made by a French woman who lives in Casablanca and sold him a Ferrari in exchange for a €400,000 Bitcoin payment.

Clausi was also the subject of another complaint, this time from a Moroccan citizen who accused him of signing a bad check in the name of a third person, obtained by the young Frenchman in exchange for Bitcoin – to buy three luxury watches. The court ordered him to compensate the owner of the watches to the tune of 40,000 dirhams (€3,900).

“He has one month and a few days left in prison”, noted Aghanaj.

Despite its illegal status in the country, Morocco was hailed as the number one in BC trading across North Africa in 2021. According to Triple-A, a Singaporean cryptocurrency provider and aggregator, about 900,000 individuals, approximately 2.4% of Morocco’s population, currently possess cryptocurrency.

More than a year later, the country has started to finalize a crypto regulatory framework that will legally define crypto within its market, according to its central bank.

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Do Kwon’s Attorneys Deny His Using Falsified Travel Documents And Propose $437K Bail

Do Kwon, founder of Terraform Labs, is currently facing charges for attempting to go to Montenegro with falsified passports. His attorneys have now suggested that he be released on supervised bail.

Montenegrin authorities arrested Kwon and fellow Terra executive Han Chang-joon in March, and they were charged with document forgery by local prosecutors.

The defendants denied committing a crime and presented their defense at a court hearing held on Thursday in the country’s capital Podgorica.

“Instead of detention, the defendant’s lawyer suggested that bail and supervision measures be imposed, prohibiting them from leaving the apartment and periodically reporting to a certain state authority,” a notice on the outcome of the hearing said.

The two Korean nationals, who are still in detention, had bail set at 400,000 euros ($437,000) each by their attorneys. The next trial date is scheduled for June 16, and the court has stated that it will decide on the proposal.

After the Montenegrin case’s legal proceedings, Kwon could be extradited to South Korea or the United States. Kwon is accused of crimes in both nations for the $40 billion market loss caused by the failure of his cryptocurrency company Terraform Labs in May 2022.

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Venom Foundation partners with the Kenyan Government to launch a blockchain hub

Venom Foundation has announced a strategic partnership with the Government of Kenya to establish a blockchain hub in Africa, focusing on the development of Web3 and blockchain technology applications. This collaboration aims to drive innovation in key sectors such as financial infrastructure, supply chain, agriculture, SMEs, and cross-border trade, benefiting Kenya and the entire African continent.

Cabinet Secretary, Ministry of Investments, Trade & Industry of The Republic of Kenya Moses Kuria expressed and commented on the partnership via Twitter saying,

“This partnership signifies Kenya’s stance towards next-gen technology, and financial development, and will catalyze further innovations in various industries, benefitting people both nationally and globally. Furthermore, the partnership will focus on the development of Web3 and blockchain technology applications.”

Christopher Louis Tsu, CTO of the Venom Foundation, also commented, “Africa is already rich in natural resources and human capital, by bringing next-generation blockchain technology to the continent it will empower the people and help not only Kenya but many other African nations to capitalize on their assets and participate in new global markets, competitively.”

Venom Foundation’s expansion into Africa highlights the continent’s forward-thinking approach to adopting Web3 and blockchain technologies, showcasing its commitment to embracing innovation and leading through implementation. 

By advocating for the adoption of blockchain technology, Venom Foundation seeks to empower African communities, create a bridge between traditional finance and trade with the web3 world, and stimulate regional economic growth by enabling seamless cross-border trade and transactions. Tangible benefits that can be realized include minimized transaction costs, enhanced security and transparency, increased access to financial services, expedited settlement times for cross-border transactions, and the creation of new investment opportunities through asset tokenization. These advancements hold considerable potential to substantially contribute to economic development and financial inclusion across the continent.

The blockchain hub will act as a central platform for forging partnerships with innovative companies, fostering knowledge sharing, networking, and collaboration among key stakeholders in the blockchain space, such as projects, entrepreneurs, and government officials based in Africa. 

Venom will also supply crucial tools and resources to support African countries in establishing a solid foundation for digital transformation. This includes blockchain-based solutions for supply chain management, land registry, voting systems, tokenization of assets, and other areas where blockchain technology can make a significant impact. By implementing these solutions, the partnership aims to promote transparency, efficiency, and trust across various sectors throughout the continent.

Venom Foundation is licensed by the Abu Dhabi Global Market (ADGM) and enables the acceleration of global Web3 projects. The decentralized network operates under the jurisdiction of the ADGM. The ADGM is an oasis for investors and financial services firms, positioning Venom as the world’s first compliant blockchain, affording authorities and enterprises the freedom to build, innovate, and scale.

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Worldcoin launches World App

The Worldcoin project made an announcement recently, revealing the launch of their new World App. The application dubbed the minimalist wallet is designed to bring decentralized identity and finance to the masses. 

According to Worldcoin, the World App is designed for simplicity and engineered for privacy and inclusivity. It allows users to prove their personhood with World ID, claim Worldcoin Grants, send money to anyone for free, and explore crypto tokens. Over time, it will evolve to empower individuals in the Age of AI, built on top of the largest network of real humans.

“World App, the first wallet for the Worldcoin ecosystem, is launching today. It’s designed to be friendly, and it supports private digital identity and a new financial system. You can use it to authenticate with World ID to prove you’re a real person, get your Worldcoin tokens, and send digital money anywhere,” the announcement further states.

The new World App will also feature a crypto wallet that will utilize Worldcoin’s native token, as well as Bitcoin (BTC) and Ethereum (ETH).

The announcement also revealed that over 1.5 million people have already joined the World App’s beta phase, and the app will now be available in more than 80 countries. This initial rollout is being referred to as Phase I, with plans to expand the application into a comprehensive toolkit in the future. The project’s ultimate goal is to provide universal basic income (UBI) to verified users.

The World App is available on both iOS and Android operating systems, and it was developed by Tools For Humanity (TFH), a technology company built to ensure a more just economic system. According to the TFH web portal, the company is dedicated to using Worldcoin technology to achieve this goal. Before unveiling the World App, Worldcoin introduced the World ID, an identification protocol that relies on iris recognition and claims to be resistant to AI manipulation. The project employs zero-knowledge (ZK) proofs that are linked to biometric data scans.

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Polygon partners with Niger to build a blockchain ecosystem in the country

To help the blockchain ecosystem in the country thrive, Polygon has announced a partnership with the landlocked nation of Niger in West Africa. 

As a country that ranked 189 out of 191 in the United Nations Human Development Report, Niger seems to have been relegated to the background by its counterparts in the Sahel region. It is one of the countries described to have a poorly diversified economy.

The Polygon blockchain platform believes that Niger has great prospects which are somewhat connected to the younger generation in the country. 

So far, Polygon has linked strategic collaborations with Impact Plus and GeoAnalytics Center, a technology-focused non-governmental organization in Niamey. In the meantime, the trio is focused on three activities which they plan to achieve with outstanding results to show for it. These include;

  • Mapping blockchain ecosystem to identify local projects.
  • Roundtable discussion with key stakeholders, that is to say, the Government, youth, start-ups, universities, and incubators.
  • Debates with the community to discuss findings.

For a start, they have begun to map out blockchain ecosystems with the aim of identifying local projects to embark on. Once these grassroots projects have been identified as a fit for the most appropriate blockchain technology, discussions with stakeholders including the Government, youths, tertiary institutions, startups, and incubators will commence, gaining their support towards the potential policy.

Before this, Jordi Baylina, the technical lead co-founder of Polygon led a team in 2018 to organize a regional hackathon in Niamey. The Sahel hackathon was focused on addressing gender inequality. It was during that time that it was discovered that only one-fifth of developers in Africa are females. Ultimately, Polygon is seeking strategies to promote diversity and inclusion of Web 3.0 in Niger.

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Coinbase considers UAE as a potential International crypto hub

It is not uncommon for crypto companies based in the U.S. to relocate to other regions due to the uncertain regulatory landscape in the country. Several governments across the world have been introducing clear regulations for the crypto industry, however, the U.S. government is not there yet. 

Meanwhile, the United Arab Emirates (UAE) has been praised for its efforts to regulate the crypto market. This has lured several organizations into the region and crypto exchange Coinbase could be next in line.

In its recent blog post, Coinbase lauded the country’s initiatives in the crypto space. The firm stated, “There is no doubt that UAE has the potential to be a strategic hub for Coinbase, amplifying our efforts across the world. It further serves as a particularly strategic bridge between Asia and Europe – two of our existing focus international regions to date.”

Additionally, it appears that Coinbase’s executive team, along with the CEO and co-founder Brian Armstrong, is currently in the UAE for a series of meetings with policymakers, regulators, crypto founders, and clients. He met officials from the Abu Dhabi Global Market (ADGM) and the Virtual Assets Regulatory Authority (VARA), the regulators in Abu Dhabi and Dubai respectively. 

The CEO has also been scheduled to give a keynote address at the Dubai Fintech Summit.

Earlier on Monday, Armstrong expressed on Twitter his impression of the UAE’s inclination towards crypto.

While it’s unclear if Coinbase will completely migrate to the UAE, recent developments suggest that the exchange may soon expand its services to the Middle East, as well as parts of Africa and Asia.

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Bittrex enters Chapter 11 bankruptcy protection following SEC lawsuit

Bittrex filed for Chapter 11 bankruptcy in Delaware on Monday, while its parent company Bittrex Global will continue to operate outside the United States. This development comes after the exchange announced its decision to sunset U.S. operations in early April. By mid-month, the U.S. Securities and Exchange Commission (SEC) sent the company a Wells notice.

On April 17, 2023, the SEC took action against the exchange by charging it for operating an unregistered exchange, clearing agency, and a broker. The lawsuit also classified OMG, ALGO, and DASH as unregistered securities. 

Recently, Randall Reese from Chapter 11 Dockets revealed that the crypto platform has 100,000 creditors. To keep them informed, the company has enlisted the help of Omni Agent Solutions to provide regular email and website updates.

The Bittrex Chapter 11 filing reveals assets and liabilities ranging from $500 million to $1 billion. Additionally, Bittrex Global’s two other subsidiaries, Bittrex Malta Holdings Ltd. and Bittrex Malta Ltd., have also filed for bankruptcy protection. 

U.S. customers who used the crypto exchange were instructed to withdraw their funds by the end of April. 

Currently, it remains unclear who the company’s largest creditors are and how long the case will last. In response to the situation, Bittrex Inc., based in Seattle, released a statement at 6:30 p.m. (ET).

​​The announcement stated, “Having previously announced that Bittrex, Inc. would be ceasing all operations in the U.S. effective April 30th, we have now made the decision to file Chapter 11 bankruptcy in federal court in Delaware.” 

“This announcement does not impact Bittrex Global, which will continue operations as normal for its customers outside the U.S. For those customers who did not withdraw their funds from the platform prior to the end of April, your funds remain safe and secure, and our main priority is to ensure that our customers are made whole,” the exchange added.

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Nigeria Among Global Top 10 Countries With Meme Coin Adoption

According to the latest research by CoinGecko identifying top countries leading the craze for meme coins in 2023, it shows that among the top 10 countries, only two African countries featured, with Nigeria leading at 5th position, while Morocco stood at 10th. 

Nigeria’s meme coin interest has a relatively different profile than the other 8 countries. Floki and ArbDoge AI captured the highest interest at 24.2% and 20.8% respectively. Dogelon Mars generated 17.4% of Nigeria’s interest in meme coins, despite receiving limited interest share elsewhere.

This suggests that people in  Nigeria are also keeping an eye on the less well-known meme coins, instead of aping into those that are already trending. 

On the other hand, pioneer Dogecoin generated 61.1% of Morocco’s interest in meme coins, but received only minor interest among the rest of the countries.

The top ten countries in their order are the USA, India, United Kingdom, Philippines, Nigeria, Australia, New Zealand, Canada, Malaysia, and Morocco. 

The US is unsurprisingly leading the meme coin craze, accounting for 23.6% of the interest in 2023 so far with over 2 million views of the top meme coin pages.

According to the study, people are by far most interested in Shiba Inu, which drove 46.7% of interest among the top meme coins in 2023. Baby Doge Coin generated 12.3% of meme coin interest, followed by more recent meme coins Pepe (9.4%), Floki (8.6%), and Bonk (8.2%).

The most popular meme coin in the US this year is Shiba Inu, which generated 60.7% of US interest in meme coins. The recent trending crypto Pepe drove another 11.8% of meme coin interest in the US, followed by Bonk and Volt Inu.

India is a close second in driving the meme coin hype this year, making up 20.3% of interest across all countries.

Shiba Inu is also the most popular coin in India, driving 55.8% of the South Asian country’s interest in speculative assets. Meanwhile, Baby Doge Coin generated a relatively high 29.9% of India’s interest in meme coins.