Author: Staff

Categories
Business

Gucci partners with Yuga Labs

Several mainstream brands around the world have been expanding into the Crypto, NFT, Metaverse, and Web3 space. The luxury brand Gucci is one such name. The luxurious fashion brand recently announced a multi-year partnership with Bored Ape Yacht Club’s Yuga Labs.

According to a report from The Business of Fashion, the deal would extend engagement between each company’s communities by exploring the intersection between fashion and entertainment in the Metaverse.

Robert Triefus, Gucci’s Senior Executive Vice President, Corporate and Brand Strategy, and Chief Executive of Gucci Vault and Metaverse Ventures commented on the partnership saying, “We are excited to unveil this multifaceted partnership with Yuga Labs, a leader, and creative pioneer in web3. This will give us an active role in Otherside and 10KTF’s continuing narrative, unfolding in multiple forms.”

The executive reportedly stated at a recent fashion-tech gathering that Web3 represents a long-term possibility for the company. He argued that the upcoming web generation may promote customer loyalty, foster community, and ultimately contribute to income production.

Furthermore, Triefus went on to label the early NFT days as a wild west period. On the other hand, he called the latest meltdown a correction.

According to the executive, NFTs are now in a more sensible place, and Gucci intends to capitalize on the same via partnerships. Here it is worth recalling that Gucci partnered with 10KTF last year for its Gucci Grail project. As far as the latest deal is concerned, the luxury brand’s participation in Otherside” will kickstart this week.

Otherside fostered Yuga Labs’ expansion into the Metaverse. Bored Ape Yacht Club’s parent company recently undertook its second trip or second test of its gamified metaverse platform. More than 7,200 “concurrent Voyagers” embarked on the same. The trip was open to Otherdeed NFT holders.

Otherdeed Non-Fungible Tokens are linked to be released in Otherside’s impending Metaverse. Yuga Labs hosted the first trip in Q3 last year. Post that, in Q4, Yuga Labs went on to acquire Web3 ecosystem WENEW and its flagship NFT collection 10KTF. 

Michael Figge, Yuga Labs’ Chief Creative Officer also stated, “We’re looking forward to showcasing how that partnership extends to endless opportunities in Otherside.”

Categories
Business

Coinbase plans to develop inflation-pegged stablecoin-‘flatcoins’

Platforms are still being developed despite all the regulatory scrutiny that the crypto-verse is being subjected to. Prioritizing innovation, Coinbase, a prominent cryptocurrency exchange is exploring flatcoins on its Base network. 

Recently, Coinbase revealed that flatcoins which are inflation-pegged stablecoins, would be essential to be formulated on the Base network. According to the exchange platform, this is among three other critical innovations that are expected to be built on the exchange’s layer-2 network.

The exchange’s latest interest is being viewed as bizarre as most stablecoins are pegged to the U.S. dollar (USD) or a fiat currency. Coinbase’s flatcoins are looking to be backed by the price of living. This will be done by tracking the consumer price index, as well as inflation data.

The launch of the Base network garnered interest. Now, the layer-2 network’s first step is the creation of an inflation-pegged flatcoin. 

In light of the current financial crisis, Coinbase stated that it is now more important than ever to create an inflation-tracking stablecoin that contradicts central banks’ flawed monetary policy decisions. 

Elaborating on this, Coinbase wrote, “We are particularly interested in ‘flatcoins’ — stablecoins that track the rate of inflation, enabling users to have stability in purchasing power while also having resiliency from the economic uncertainty caused by the legacy financial system.”

Furthermore, since flatcoins would be tied to inflation rates, they are expected to retain their value over time. This option is particularly beneficial in nations or states with high inflation rates, as consumers may be hesitant to keep their savings in local currency owing to its volatility.

Apart from flatcoins, developers are urged to formulate an on-chain reputation system and an on-chain limit order book (LOB) exchange. 

In addition, tools to make the DeFi ecosystem more secure are also being requested.

“We recently launched Base, a secure, low-cost, developer-friendly Ethereum L2. Our vision is to collectively work towards an ambitious goal: bringing the next billion users on-chain. One of our values from the beginning has been “Base is for everyone” and we’re so grateful to see builders around the world starting to make Base their home,” the network commented.

Categories
Business

US Lawmaker introduces bill to affirm blockchain developers and non-custodial services are not money transmitters

The Blockchain Regulatory Certainty Act (BRCA), introduced by U.S. Congressman Tom Emmer (R-MN), majority whip of the U.S. House of Representatives, was made public last week. It states that blockchain service providers and developers who do not hold consumer funds are not money transmitters. Representative Darren Soto is co-leading this bill, which is nonpartisan. (D-FL). Emmer first put out a comparable bill in 2018.

“Crypto and blockchain technology, by nature, does not easily fit into the frameworks policymakers have considered when crafting regulations in the past. For too long, federal regulators and lawmakers have jammed the blockchain ecosystem into statutory definitions that just do not make sense,” Rep. Emmer explained. 

He further noted, “it should be simple: If you don’t custody consumer funds, you aren’t a money transmitter. My bill provides that necessary confirmation for the blockchain community.”

“The longer we delay providing this commonsense clarification, the greater risk that this transformative technology is driven overseas, depriving domestic users and investors. This bill will help America remain a technological leader in the crypto space,” the House majority whip continued.

Jerry Brito, Executive Director of Coin Center, a nonprofit focused on the policy issues facing cryptocurrencies, also commented, “Sound cryptocurrency policy requires calibrating regulations specifically for the activities that present risks that should be mitigated.” 

He explained:

“The Blockchain Regulatory Certainty Act would reinforce in law the established understanding that non-custodial services, such as mining or providing wallet software, should not be regulated in the same way as something like running a custodial cryptocurrency exchange,” he emphasized.

Categories
Business

Nasdaq Aims To Launch Crypto Custody Services In The Second Quarter

Global exchange Nasdaq Inc. plans to launch custody services for Bitcoin and Ether in the next three months, according to Ira Auerbach, senior vice president and head of Nasdaq Digital Assets.

In order for the new company to begin operations before the end of the second quarter, Auerbach said the company is working to complete the technical infrastructure and secure the last regulatory approvals. A representative for Nasdaq declined to provide more context.

The business named Auerbach to lead Nasdaq Digital Assets, a new division, and stated in September that it was looking to establish custody services.

“Nasdaq Digital Assets builds upon the successful solutions we have introduced in recent years to serve the digital assets ecosystem, including marketplace technology for digital asset exchanges, crypto-native anti-financial crime offerings, and crypto-related index solutions for tradable products,” CEO Adena Friedman said in a statement at the time.

For the new services, Nasdaq submitted an application for a limited-purpose trust company charter to the New York Department of Financial Services. According to Auerbach, the company eventually wants to provide a comprehensive range of services for the division of the group that deals with digital assets, including execution for financial institutions.

By entering the cryptocurrency market, the exchange would depart from its core competency of trading stocks and bonds. Additionally, it would aid in bridging the gap in cryptocurrency custody services left by FTX’s demise the previous year.

In a statement released in September last year, the company stated; “Nasdaq Digital Assets builds upon the successful solutions we have introduced in recent years to serve the digital assets ecosystem, including marketplace technology for digital asset exchanges, crypto-native anti-financial crime offerings, and crypto-related index solutions for tradable products,” said Adena Friedman, President and Chief Executive Officer, Nasdaq.

“The technology that underpins the digital asset ecosystem has the potential to transform markets over the long term. To deliver on that opportunity, our focus will be to provide institutional-grade solutions that bring greater liquidity, integrity, and transparency to support the evolution,” he further stated.

Nasdaq Digital Assets will initially develop an advanced custody solution that will incorporate liquidity and execution services to address industry challenges around connectivity, availability, and efficiency. Nasdaq’s custody solution will bring together the best attributes of hot and cold crypto wallets through an innovative technology offering, which will provide a high degree of accessibility and scalability without compromising security. Nasdaq’s offering is subject to regulatory approval in applicable jurisdictions.

“Demand among institutional investors for engaging in digital assets has increased in recent years, and Nasdaq is well-positioned to accelerate broader adoption and drive sustainable growth,” said Tal Cohen, Executive Vice President and Head of North American Markets, Nasdaq. 

He added, “With our trusted brand and strong track record as a technology provider for the global capital markets, Nasdaq is uniquely placed to address industry pain points by improving liquidity, scalability, and resiliency, with the goal to engender greater trust and confidence in the digital assets ecosystem.”

Categories
Business

Do Kwon Faces Extradition To U.S. And South Korea

Do Kwon, a co-founder of Terra who may have been the catalyst for the cryptocurrency crash last year and who was positively not on the run, was finally apprehended on Thursday. Several countries, including Montenegro, South Korea, and the United States, are now interested in the failed crypto founder, making him a far more valuable commodity than any cryptocurrency he’s recently tried to promote.

According to Nicholas Biase, the public affairs chief for the Southern District of New York, the US Attorney’s Office for the Southern District of New York is seeking Kwon’s extradition to the United States.

Following Kwon’s arrest at the Podgorica airport by Montenegrin authorities on Thursday, federal prosecutors in New York indicted him on new charges of commodities fraud, securities fraud, and wire fraud. This was all in relation to his time promoting the Terra/Luna crypto ecosystem, which eventually crashed in May of last year.

The allegations specifically state that Kwon misled clients and investors regarding the number of people utilizing the Terra blockchain ecosystem in interviews and social media posts. Although Terraform Labs simply duplicated the payment system on its own blockchain, a recent complaint from the Securities and Exchange Commission claimed Kwon had lied about how the crypto ecosystem was being used on a well-known South Korean payment app. Kwon is accused by the SEC of living large after sending 10,000 bitcoin to an unidentified Swiss bank.

International police service Interpol had previously issued a red notice for Kwon, and police have been trying to track his movements for months. His arrest was confirmed to CNN on Thursday by Interpol.

Considering that Kwon is now in custody of the police, Montenegro has accused him and a second, as of yet unidentified suspect, of falsifying passports from Belgium and according to an official statement to Reuters, he was allegedly attempting to board a flight to Dubai to Reuters. Prior to facing extradition, Kwon will appear before a court in Montenegro. The U.S. intends to request extradition, and South Korean authorities have been attempting for some time to apprehend the discredited cryptocurrency founder. His passport has already been revoked by the nation because he refused to reveal his face when asked to. 

The crypto industry has not been able to return to its prior zeniths of the late 2021s and early 2022s since Kwon’s Terra/Luna ecosystem collapsed. Since then, the demise of the cryptocurrency exchange FTX has further dampened the enthusiasm for cryptocurrency. With Kwon’s arrest, we could be in for two significant court cases involving cryptocurrency, just as FTX’s Sam Bankman-Fried is preparing for his first court appearance later this year.

Categories
Business

UAE Central Bank Kickstarts Its Digital Dirham Strategy

On Thursday, March 23, the Central Bank of the UAE (CBUAE) launched its Central Bank Digital Currency (CBDC) strategy called “The Digital Dirham.” The CBUAE joined hands with G42 Cloud and R3, as the infrastructure and technology providers for its digital currency program.

The bank recently launched a Financial Infrastructure Transformation program. As reported last month, the initiative intends to enhance the pace of digital transformation of the financial services sector. It will do so by promoting digital transactions and encouraging innovation in the ecosystem. This is expected to sharpen UAE’s prospects to become the financial and digital payment hub.

Specifically, the program entails nine initiatives, and launching a Central Bank Digital Currency is one among them. The digital currency will help in addressing the challenges pertaining to domestic and cross-border payments. 

Additionally, it will help enhance financial inclusion and aid the UAE’s move towards a cashless society. 

Khaled Mohamed Balama, the Governor of the CBUAE commented on this saying, “CBDC is one of the initiatives as part of the CBUAE’s FIT program, which will further position and solidify the UAE as a leading global financial hub. The launch of our CBDC strategy marks a key step in the evolution of money and payments in the country.”

“CBDC will accelerate our digitalization journey and promote financial inclusion. We look forward to exploring the opportunities that CBDC will bring to the wider economy and society,” he added.

According to reports, the first phase of the strategy encapsulates three major pillars. The first phase will facilitate real-value cross-border CBDC transactions for international trade remittances.

The second major focus will be on the proof-of-concept work for bilateral CBDC bridges with India. Finally, the strategy will also cater to the proof-of-concept work for domestic CBDC issuance, encompassing both wholesale and retail usage. In all, the first phase is expected to roughly wind up within the next 12 to 15 months.

Categories
Business

Terra co-founder Do Kwon reportedly arrested in Montenegro

According to the Minister of Interior of Montenegro, Filip Adzic, Terra Founder Do Kwon has reportedly been arrested in Montenegro. 

The tweet reads;

“ONE OF THE WORLD’S MOST WANTED FUGITIVES WAS ARRESTED IN PODGORICA

Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs.”

According to the authorities, he was found in an airport with falsified documents and was taken into custody on the suspicion of his identity.

Montenegro is geographically south of Serbia and shares borders with the country. Since December 2022, South Korean prosecutors have alleged that Kwon was hiding in Serbia, where no extradition agreement exists with South Korea. 

Interpol issued a red notice for the arrest of Kwon last year and was wanted by regulatory authorities in South Korea, Singapore, and the U.S. 

Categories
Business

Telegram users can now transfer USDT through chats

Tether (USDT), the largest stablecoin in the world by market cap, can now be transferred between Telegram users within chats.

According to an email message shared with CoinDesk on Wednesday, USDT has been added to Telegram’s @wallet bot, strengthening the messaging app’s ability for buying and selling cryptocurrencies.

Integrating crypto payments into messaging apps like Telegram, in theory rendering sending cryptocurrency as easy as sending a text or a photograph should be an extremely positive development for mainstream adoption.

According to CoinDesk, bitcoin (BTC) and toncoin (TON) were added to @wallet’s marketplace last April, with the latter also available to send within chats. Stablecoins like USDT offer many of the benefits other cryptos do but without the price volatility that often besets the likes of bitcoin and ether. Therefore they are a vital component for users who wish to keep their money in the crypto ecosystem without risking it being on the receiving end of any sharp swings in value.

Therefore, the inclusion of USDT may prove to be a significant advancement for Telegram’s crypto service. The messaging service’s history with cryptocurrencies dates back to the creation of the Open Network (TON) blockchain project. However, due to legal disputes with the U.S. Securities and Exchange Commission, this development was abandoned in 2020. (SEC).

However, the TON project has continued to advance thanks to community members who go by the name of The TON Foundation. Despite not having a direct role in TON, Telegram still has a stake in the network as evidenced by the fact that it built its blockchain-based auction platform Fragment on top of it in late 2017.

Categories
Business

MetaMask enables direct crypto purchases in Nigeria

Self-custody cryptocurrency purchases are becoming more accessible in Nigeria as major crypto wallet MetaMask expands direct on-ramps with local banks. On March 21, MetaMask’s parent firm ConsenSys announced a new integration with crypto fintech MoonPay, enabling users in Nigeria to purchase crypto via instant bank transfers.

“Today, ConsenSys,  a market-leading Web3 company, revealed that MetaMask, the world’s leading self-custody wallet, and MoonPay, the leading web3 infrastructure company, have expanded their offering in Nigeria. Users of MetaMask in Nigeria can now use instant bank transfers to purchase crypto directly within the MetaMask mobile app and the Portfolio Dapp, resulting in a more seamless experience that is cheaper, faster, and more efficient,” ConseSys announced in its statement.

The new feature is available within the MetaMask mobile and Portfolio DApp, significantly simplifying the process of buying crypto without using credit or debit cards in Nigeria.

Before the partnership, MetaMask users in Nigeria had access to the MetaMask wallet, but the process of buying crypto was costly and time-consuming, MetaMask product manager Lorenzo Santos commented on this saying,

“While Moonpay had a card integration feature, about 90% of attempts to buy crypto with a credit or debit card were declined.”

With the new integration supporting local bank transfers, crypto purchases on MetaMask are now faster and cheaper, allowing users to access crypto without sending assets from a centralized exchange.

According to MoonPay Chief Product and Strategy Officer, Zeeshan Feroz, the integration is estimated to reduce the decline rate for direct crypto purchases in Nigeria from 90% to 30%. 

He also noted that customers of all banks in Nigeria would have access to the service through bank transfers, which is a widely used payment method across Nigerian e-commerce businesses.

Lorenzo Santos, Senior Product Manager at MetaMask noted that this is an essential next step in a critical market that has embraced crypto and web3 but faces serious challenges when using fiat to the crypto on-ramp. 

“We are reducing friction and bringing down barriers to keep supporting Nigerians as they onboard into Web3,” he added.

Zeeshan also stated, “Our partnership with MetaMask will enable us to provide Nigerian users with Bank Transfers, a widely used payment method across Nigerian e-commerce businesses. We hope this integration opens the doors for Nigerians to fund their self-custody wallet through a simplified user experience.” 

According to Santos, Nigeria has emerged as a major market for MetaMask, ranking third in mobile monthly active users despite the current issues with crypto on-ramps in the country. He noted that it is also among the top ten countries regarding visitors to metamask.io over the last month.

ConsenSys also hinted on its expansion in its statement saying, “We are committed to providing seamless experiences for users in Africa, starting with Nigeria and expanding the rollout of this feature to Kenya, Botswana, and South Africa in the coming month. Our collaboration with MoonPay is a step towards achieving this goal by providing users with a more convenient on-ramp experience in these countries.”

Categories
Business

Circle seeks to register in France as it expands in Europe

Stablecoin issuer Circle has filed applications to register as a crypto provider in France, and to gain a license as an e-money provider.

The company revealed this on Tuesday, emphasizing that it is seeking to make France a hub for expanded European operations and is preparing for new European Union rules that require stablecoin issuers to manage stability risks.

Jeremy Allaire, Circle’s Chief Executive Officer, stated in an emailed statement, “We are excited to kick our European growth strategy into high gear with this application. France’s comprehensive efforts towards innovation-forward crypto regulation are commendable and closely align with Circle’s vision for the future of the digital payments sector.”

Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy also commented saying, “We are committed to expanding our presence and engagement with regulators in the European market, with our operations in France being critical to this. We look forward to continuing to work with the AMF and the ACPR as we expand the application of our product suite in France, offering individuals and businesses safer, faster, and more economical means of exchanging value.”

Registration requires companies to undergo checks on governance and money-laundering protocols, enabling them to serve the French market.

Circle also said it wants its euro-backed stablecoin EUROC to conform with the EU’s Markets in Crypto-Assets (MiCA) regulation. It requires issuers of any cryptocurrencies tied to fiat to hold reserves and imposes caps on the trading of those matched to foreign currencies like the U.S. dollar.

Axa Investment Managers, Binance, and Societe Generale are already registered under France’s regulatory regime, which is set to get tougher as of January 2024.

MiCA is set for a final debate in the European Parliament on April 18 and will include an extra transitional provision for companies already registered within an EU member country.