Author: Staff

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Business

Binance resumes Bitcoin withdrawals

Binance has once again resumed Bitcoin (BTC) withdrawals after a second pause, as the Bitcoin network suffers from unprecedented congestion.

Binance briefly paused Bitcoin withdrawals for around two hours Sunday afternoon U.S. time as the number of unconfirmed transactions hit a record high. Its second pause was on Sunday evening U.S. time for just over two hours.

“To prevent a similar recurrence in the future, our fees have been adjusted. We will continue to monitor on-chain activity and adjust accordingly if needed. Our team has also been working on enabling BTC Lightning Network withdrawals, which will help in such situations,” the exchange mentioned in a tweet.

The number of unconfirmed transactions was approaching 500,000 when the second halt took place from around 400,000 when the first pause occurred. It is now beginning to decline and is currently just over 430,000.
The price of Bitcoin continues to drift downward and is now at $28,240, down 2.6% in the last 24 hours. CoinGecko data shows Binance has significantly slid in its position for bitcoin trading volume and is no longer in the top 10 exchanges for bitcoin trading pairs.

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Business

The Financial Times Names Zone As Africa’s Fastest Growing Blockchain

The Financial Times and Statista’s Fastest Growing Companies in Africa award named Zone, Africa’s first regulated blockchain network for payments, as the continent’s fastest-growing blockchain company. The business becomes the first blockchain business in Africa and one of the select Nigerian fintechs to be included on the illustrious list.

The ranking, which is done every year, identifies the best companies in Africa’s private sector and honors those that have made significant contributions to their respective industries as well as impressive growth. Zone was chosen as one of only 100 companies, and the first blockchain company on the entire continent, to feature on the list after a rigorous process of reviewing entries from hundreds of African businesses.

The announcement was met with excitement from Obi Emetarom, co-Founder and CEO of Zone, who also said that the group is “deeply honored by this recognition from the Financial Times and Statista.”

He continued by saying that the team will be inspired to work even harder to use blockchain technology to connect all known stores of value. “By fulfilling our mission, we are laying the foundation for a truly cashless world while expanding access to financial services and fostering a more inclusive and prosperous future for the African continent.”

After successfully converting to a payment infrastructure provider in November 2022 from a provider of banking as a service, Zone has had an impressive year.

The business also obtained a payment switching license from the Central Bank of Nigeria, which enabled it to expand its decentralized payment network and link different financial service providers.

Zone is laying the foundation for a world where digital payments are frictionless, cross-border, and compatible with all forms and stores of money by connecting more than 20 of the largest commercial banks, fintechs, and OFIs in Africa to its Layer-1 blockchain network.

Olayiwola Osoba, vice president of marketing at Zone, expressed his excitement about the recognition, saying, “Being named one of Africa’s Fastest Growing Companies by the Financial Times and Statista is quite exciting for us at Zone. This recognition is an indication of our team’s immense effort to transform Africa’s payment landscape using an innovative architecture and a superior tech stack.”

The Zone payment network is the first decentralized payment network in Africa. It fully automates settlement, reconciliation, and dispute management while enabling participating institutions to connect directly with one another and conduct payments without a middleman.

A testament to the company’s commitment to using cutting-edge technology to revolutionize the payment landscape in Africa, according to experts, is Zone’s recognition by the Financial Times and Statista as one of the Fastest Growing Companies in Africa. The company is laying the groundwork for a truly cashless society as it expands its decentralized payment network and links various financial service providers, fostering a more inclusive and prosperous future for the African continent.

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Business

Kenya considering tax on crypto and NFTs

A recently introduced bill suggests that Kenya’s lawmakers introduce a 3% tax on cryptocurrency and nonfungible token transfers as well as a 15% tax on online content that is monetized.

A digital asset tax would be implemented on “income derived from the transfer or exchange of digital assets,” according to the Finance Bill 2023, which was presented to the Kenyan parliament on May 4. It also includes specific language for NFTs.

The National Assembly will go through five rounds of readings, committee hearings, and reports on the bill; if it passes, the president will give his or her final approval before it becomes law.

To collect the tax, crypto exchanges or those who start a transfer of cryptocurrency or NFTs would need to take 3% of the transfer’s value out of it to pay the government. Under the tax regime, exchanges that are not registered in Kenya would need to do so.

The bill also proposes to impose a 15% tax on content creators who are compensated to promote and advertise goods and services online, including but not limited to sponsorships, affiliate marketing, product sales, and paid subscriptions.

Online reactions to the bill’s section on digital assets have been conflicting. The apparent official recognition of cryptocurrency and NFTs in the nation surprised some people. The Central Bank of Kenya previously issued cautionary statements about the use of cryptocurrencies, but no outright bans were enacted.

A comparison between the government’s proposed 3% tax and Binance’s 0.10% trading fee was made in order to highlight how much higher the tax was when compared to the fees levied by exchanges.

In November, Kenya made its first attempt to regulate cryptocurrency by amending its capital market laws to require people who own or deal in cryptocurrency to report information about their activities to the authorities.

Kenya barely makes it into the top 20 nations in terms of adoption of cryptocurrencies.  The nation was ranked 19th in terms of cryptocurrency adoption in a September report from blockchain analytics company Chainalysis.

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Business

Jury convicts Ex-OpenSea manager in NFT insider trading case

According to Reuters, the former manager of OpenSea who was charged with insider trading of NFTs was found guilty of wire fraud and money laundering on May 3.

According to prosecutors, Nathaniel Chastain, a former product manager at OpenSea, was in charge of choosing which NFTs would be featured on the website’s nonfungible token marketplace.

After making these decisions, he frequently purchased these NFTs and then resold them after they had been featured, prosecutors said. He was charged with wire fraud and money laundering on June 1 in connection with these alleged transactions. 

The trial began on April 24 and has been watched closely by lawyers specializing in crypto-related issues. Some legal experts have argued that the outcome of the case may affect whether NFTs are considered securities.

The former OpenSea manager who was accused of insider trading of NFTs was convicted on May 3 of wire fraud and money laundering in a New York federal court, according to Reuters.

According to the report, defense attorney Daniel Filor argued in the trial’s closing statements that Chastain wasn’t guilty because he had never been told the information was supposed to be confidential.

He stated, “Nobody told Nate that he couldn’t use or share that information.”

By contrast, prosecuting attorney Allison Nichols argued that Chastain knew he was breaking the law. She claimed that he used anonymous OpenSea accounts to make the trades, implying that he was afraid of being caught.

“He hid what he was doing. He knew that he had violated OpenSea’s confidentiality agreement,” Nichols reportedly told the jury in her rebuttal. 

It marks the first time a person has been slapped for using privileged knowledge to trade nonfungible tokens.

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Blockchain

The Gitcoin passport: What it is and how to create one

Gitcoin is a decentralized platform built on the Ethereum blockchain that promotes open-source development by facilitating financing and incentives to developers to various projects through crowdfunding.

The decentralized platform is not only famously known for matching donations in the digital ecosystem but also for creating a digital passport last year. Coined the Gitcoin passport, it was launched for the decentralized community.

The Passport is a decentralized identifier (DID). It allows anyone to own, manage and verify their digital identity without relying on a centralized database.

The passport was originally created for Gitcoin’s own needs. That is to say, to defend Gitcoin’s Grants program from sybil attacks so that only real people can help decide which projects receive funds from a shared matching pool. The platform later opened the tool for public use.

“One thing we have learned from defending the Gitcoin Grants program is this: Sybil defense is complicated and resource intensive. Yet it is essential for any web3 project that hopes to have longevity, because users will not stick around if your project is filled with scammers. As we developed years of in-house expertise in sybil defense, we saw a responsibility to help other web3 projects protect their communities from bots and bad actors,” Gitcoin states on its site.

The Passport makes it easy for one to aggregate the different pieces of your identity on the internet from social media sites like Twitter and Facebook to online verification tools like BrightID and Proof of Humanity, into a single place that showcases that you are a trustworthy person who deserves access to the best and most trustworthy digital experiences in Web3.

How to create one

Step 1: Go to passport.gitcoin.co.

This should be the interface of the website. 

Step 2: Click on “Sign in with Ethereum”. It will then lead you to “Connect your wallet”. Here you’ll see the available wallets. If you have any other crypto wallets such as Meta Mask, connected as extensions on your computer or laptop, it should still be visible under the available wallets. 

After selecting, you will then be required to either create a new wallet if you do not have one or if you already have one, you will be required to connect it.

Step 4: After successfully connecting your wallet, a signature request modal will pop up. Click sign.

Step 5: You will be required to collect stamps. Stamps represent a web3 citizen’s participation in various groups and communities. These are collected by connecting to external accounts including Gmail, Discord, Github, and LinkedIn, among others. To earn stamps, you have to scroll down and click “Explore stamps.” Click Connect Account on the Stamp you’d like to add. Follow the provided instructions until you see a verified notification.

The more accounts you connect/ verify, the more stamps you collect. The stamps score is at the top right corner. To successfully be verified, you have to earn a passing score above 15.1. This shows your unique humanity score.

Pros;

  • Single sign-on across multiple platforms; Gitcoin Passport provides users with a single sign-on (SSO) system that allows them to use a single set of login credentials to access multiple blockchain-based platforms. This eliminates the need for users to remember multiple usernames and passwords for different platforms.
  • Increased security; Gitcoin Passport uses blockchain technology to provide secure authentication and identity verification. This eliminates the need for users to provide personal information such as their name, address, or email address, which can be vulnerable to hacking or phishing attacks.
  • Reputation tracking; Gitcoin Passport tracks users’ activity and contributions on various blockchain-based platforms, which allows users to build a reputation and earn rewards for their contributions. This can be especially useful for freelancers or developers looking to build their reputation within the blockchain community.
  • Decentralized control; Gitcoin Passport is built on the Ethereum blockchain, which means that users have complete control over their identity and personal information. This eliminates the need for a centralized authority to manage user identities, which can be vulnerable to hacking or data breaches.

On the other hand, despite its potential benefits, Gitcoin Passport is a relatively new technology that has not yet been widely adopted by blockchain-based platforms. This means that users may not be able to use their Gitcoin Passport credentials to access all the platforms they might want to use.

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Business

Nigerian FEC approves national blockchain policy

At its seating yesterday, the Nigerian Federal Executive Council (FEC) approved a national blockchain policy.

Minister of Communications and Digital Economy, Isa Pantami, made the disclosure while briefing the media after the Council’s meeting, presided over by President Muhammadu Buhari at the Presidential Villa, Abuja.

Pantami explained, “The Federal Government of Nigeria, today, approves the national blockchain policy for Nigeria. This policy was obtained through consultation with our stakeholders, where 56 institutions and personalities were involved in conceptualizing, developing, and reviewing the policy.”

“With the approval of the national blockchain policy for Nigeria today, we can safely say that blockchain technology with all its components and types has been institutionalized in the country,” the Minister further stated.⁣

He also noted that the Security Council has directed regulatory bodies to liaise with the National Information Technology Development Agency, to come up with regulatory instruments in all sectors.

The approval, according to the minister, underlines the potential opportunities of blockchain technology, even as studies predict that blockchain would add $1.76 trillion to the global GDP by 2030.

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Business

Coinbase launches international crypto derivatives exchange

Coinbase is one of the key players in the cryptocurrency space in the US. The exchange and its CEO, Brian Armstrong, have been quite vocal about the lack of regulatory clarity for cryptocurrencies in the US.

The exchange has now decided to go international. This is considered a step towards implementing the chapter of the exchange’s Go Deep, Go Broad global expansion strategy. According to the details, Coinbase has now launched an international crypto exchange.

The exchange said that it decided to become a public company in the US because it believed the country could embrace fundamental innovation. However, the firm has now decided to also focus on international markets, where many nations are trying to establish themselves as crypto hubs.

“Coinbase is dedicated to partnering with high-bar regulators across US and non-US jurisdictions to help update the financial system by developing additional solutions and products, leveraging our high standards of customer protection and robust risk management frameworks. With the recent approval of our regulatory license from the Bermuda Monetary Authority (BMA), today we are excited to announce the launch of Coinbase International Exchange,” Coinabse further stated.

According to Coinbase, Coinbase International Exchange will enable institutional users based in eligible jurisdictions outside of the US, to trade perpetual futures. 

The exchange noted, “Perpetual futures accounted for nearly 75% of global crypto trading volume in 2022, creating highly-liquid markets and offering traders additional versatility in their trading strategies.”

“Building out a global perpetual futures exchange for digital assets will help support an updating of the financial system by making Coinbase’s trusted products and services more accessible to users of digital assets who live outside of the US,” the exchange added.

Coinbase International Exchange will have a high standard of customer protection alongside a robust risk management framework. The exchange listed BTC and ETH perpetual futures contracts yesterday, with all trades settled in USDC. The contracts will also initially offer 5x leverage.

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Coins

Sui native token: What you need to know

The highly anticipated Sui mainnet is scheduled to go live today at 8 a.m. ET. (12pm UTC)

The protocol makes use of a modified version of the Move programming language, which was first developed at Meta-formerly Facebook before it chose to wind down the Diem project. It is also a layer 1 designated Proof-of-Stake (dPoS) blockchain.

Sui’s move has been highly touted for its speed and transaction. The platform’s native asset, the SUI token, has been in the midst of an initial coin offering, or ICO, since April 20, however, that will end today when the mainnet goes live.

The SUI token also focuses on instant transaction finality, and reducing latency in the deployment of smart contracts.

Furthermore, the token uses the capitalized version of SUI to distinguish the token from the Sui platform.

According to Sui, the total supply of SUI is capped at 10,000,000,000 (i.e. ten billion tokens). A share of SUI’s total supply will be liquid at Mainnet launch, with the remaining tokens vesting over the coming years or distributed as future stake reward subsidies.

The layer 1 blockchain platform also notes on its site that the SUI token serves four purposes on the Sui platform namely;

  1. Users can stake SUI to participate in the proof-of-stake mechanism.

2. SUI is the asset denomination needed for paying the gas fees required to execute and store transactions or other operations on the Sui platform.

3. SUI can be used as a versatile and liquid asset for various applications including the standard features of money – a unit of account, a medium of exchange, or a store of value – and more complex functionality enabled by smart contracts, interoperability, and composability across the Sui ecosystem.

4. SUI token plays an important role in governance by acting as a right to participate in on-chain voting on issues such as protocol upgrades.

Investors have been purchasing IOU versions of the token, albeit from four smaller exchanges: BitForex, DigiFinex, HotBit, and SuperEx. 

Sui is built by Mysten Labs, one of the two spinoffs that came from Meta’s Diem project, the second being none other than the so-called Solana Killer, Aptos Labs which launched its mainnet in October. Leading up to its launch, Sui has raised enormous amounts of money. By September last year, Mysten Labs had closed a $300 million Series B round and reached a $2 billion valuation, according to CrunchBase.

The team behind Sui also mentioned it wants the network to become the premier NFT and gaming platform for the cryptocurrency industry, by virtue of its Move programming language, which developers have said is a more intuitive way to write smart contracts.

Although Move was not initially designed with NFTs in mind, Sui Move is looking to change that by implementing certain NFT-specific functions. Unlike other popular language, like Rust which is used by Solana and focuses on accounts. Sui is centered around objects which have made it possible for objects on Sui to be owned by a single user or shared, which can then be modified by users as long as they follow certain smart contract functionalities.

After the token launches, it will be listed on OKX, Kucoin, Bybit, and Binance.

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Business

Nigeria’s SEC plans to allow asset-backed tokens but not crypto

Nigeria’s Securities and Exchange Commission is considering allowing tokenized coin offerings backed by equity, debt, or property but not crypto, on licensed digital asset exchanges, Bloomberg reported.

Commenting on this, the Head of Securities and Investment Services at the Abuja-based commission,  Abdulkadir Abbas said, “We always like to start, as a regulator, with a very simple, clear proposal before we go into the complex ones.”

According to Bloomberg, the regulator is also processing applications for digital exchanges on a trial basis, intending them to undergo one year of regulatory incubation with limited services offered and under SEC monitoring to determine the firms’ fitness to provide services.

“By the tenth month, we should be able to make a determination whether to register the firm, extend the incubation period or even ask the firm to stop operation,” Abbas also emphasized.

According to the report, the SEC will not start registering digital asset exchanges until it reaches an agreement with the nation’s central bank, which has blocked local financial institutions from interacting with crypto services providers. Before the central bank doubled down on its restrictive rule, Nigeria was one of the fastest crypto adopters in the region.

Despite the central bank’s resistance, there have been attempts to include crypto in the scope of regulations, with a new bill in the works that could recognize crypto as capital for investment.

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Business

Mastercard launches crypto credential service for cross-border transfers

At Consensus 2023, Mastercard unveiled a new innovative step in its work in blockchain technology. Specifically, the payment company has unveiled a Mastercard crypto credential service in collaboration with Polygon, Solana, AVan, and others.

The executive in charge of crypto products and blockchain at Mastercard (MA), Raj Dhamodharan said that the payment processing company is bringing out a service designed to ensure transactions between users’ wallets are verifiable and compliant, beginning with transfers of digital assets between countries.

In this first cross-border use case, the Mastercard Crypto Credential service, allows wallets to be identified in transactions that are compliant with requirements such as the Financial Action Task Force’s (FATF) travel rule.

Mastercard Crypto Credential, a set of common standards for attestation of interactions, uses technology from CipherTrace, the well-known blockchain analytics platform Mastercard agreed to acquire in late 2021.

“If two people want to transfer value from one country to another country, the level of compliance and verification needed is complex. So how do you identify those wallets, and how do you exchange enough information about the other party?” Dhamodharan noted.

Cross-border transactions have been a focus of blockchain tracker CipherTrace, the creator of a cryptocurrency system that helps companies comply with the travel rule. 

Under that rule, whenever crypto worth over $1,000 is transacted between two parties, the crypto service provider of the sender is expected to communicate the personally identifiable information of the sender to the crypto service provider of the recipient, and vice versa.

To roll out the service, Dhamodharan highlighted that, Mastercard worked with wallet providers Bit2Me, Lirium, Mercado Bitcoin and Uphold. The firms are working on an initial project to enable transfers between U.S. and Latin America and the Caribbean corridors.

More use cases for the service, such as non-fungible token (NFT) transactions, will follow, according to Dhamodharan. To that end, Mastercard is teaming up with public blockchain network organizations Aptos Labs, Ava Labs, Polygon and the Solana Foundation.