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Business

Digital lending infrastructure Pezesha gets license to operate in Uganda

Pezesha, a Pan-African fintech company building scalable lending infrastructure for small and medium-sized enterprises(SMEs) and institutions, recently acquired a license to operate in Uganda.

The fintech announced this news on LinkedIn saying, “We are excited to announce that Pezesha is now fully licensed to operate in Uganda and impact more MSMEs with affordable financial services and forge deeper embedded finance partnerships in Uganda. We received our Mobile Lending License.”

Pezesha further added that thanks to Uganda Microfinance Regulatory Authority (UMRA), they also received their Digital Lending License.

The Kenyan fintech platform received an $11 million investment from Cardano last year in August and it revealed that one of the goals for the funding was to expand into Nigeria, Ghana, Uganda, Rwanda, and Francophone Africa. 

According to The Kenyan Wallstreet, Pezesha has been in operation since 2017, and it provides financial access to underserved micro, small and medium-sized enterprises by linking them to banks, microfinance institutions, and other retail lenders through a digital platform.

The fintech received a nod from Capital Markets Authority (CMA) in 2020, which saw it become the first local firm to successfully exit the CMA sandbox with a letter of no objection to operate in Kenya.

According to their website, the platform now operates in Kenya, Ghana, and Uganda and will soon launch operations in Rwanda and Nigeria.

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Business

IMF paying attention to African nations that support cryptocurrencies

African nations that welcome cryptocurrency Between 2020 and 2021, the cryptocurrency market in Nigeria, Kenya, Tanzania, and South Africa expanded at a combined rate of 1,200 percent, reaching a market value of $105.6 billion (roughly Rs. 775 crores). 

The International Monetary Fund (IMF) is interested in the growth trajectory of the cryptocurrency industry in Africa. The IMF recently urged African nations to swiftly enact stricter regulations for the cryptocurrency industry in a blog post. The IMF wants to safeguard investors from monetary risks.

The IMF stated in its post that it is still difficult to control a highly volatile and decentralized system. “Many people use crypto-assets for commercial payments, but their volatility makes them unsuitable as a store of value. Only a quarter of countries in sub-Saharan Africa formally regulate crypto,” said the IMF.

According to Chainalysis, one of the crypto markets with the fastest growth is in Africa. The region continues to be the smallest in terms of transactions, with a peak of $20 billion (roughly Rs. 1,63,006 crore) per month in the middle of 2021.

The IMF reports that South Africa, Kenya, and Nigeria are the countries in the region with the most cryptocurrency users. Early this year, the Central African Republic became the second country after El Salvador to legalize Bitcoin.

Other African regions have also seen an increase in cryptocurrency activity.  For instance, the Mara cryptocurrency wallet, which is supported by Coinbase, is prepared to go live in Kenya and Nigeria.

In order to create a special economic zone supported by the cryptocurrency industry, Nigeria and the Binance cryptocurrency exchange are working together.

The IMF does not support or encourage countries to integrate cryptocurrencies into their financial systems.

The international financial organization had earlier this year stated that using Bitcoin posed serious risks to consumer protection, financial integrity, and financial stability because of its high price volatility.

“If crypto-assets are held or accepted by the government as a means of payment, it could jeopardize public finances. Policymakers are also concerned that cryptocurrencies could be used to illicitly siphon money out of the region and circumvent local regulations to prevent capital outflows,” the IMF report said.

In particular, recent studies have suggested that as more countries begin to regulate the crypto sector, the use of cryptocurrencies by criminals to launder money may decline.

Ransomware payments made using cryptocurrency reportedly reached over $600 million (roughly Rs. 13,330 crores) in 2021. But according to a Kaspersky report, Bitcoin will become less valuable as a digital currency for dealing with and paying ransomware.

Currently, six African nations, Cameroon, Ethiopia, Lesotho, Sierra Leone, Tanzania, and the Republic of the Congo, ban the use of cryptocurrencies. All banks in Zimbabwe have been told to stop processing transactions, and a local cryptocurrency startup in Liberia has been told to stop operating (implied bans).

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Opinions

Global crypto regulation discussed in G-20

The topic of regulating crypto assets will be discussed at G20 meetings, according to India’s Finance Minister Nirmala Sitharaman, as a consensus needs to be formed on the subject.

“Crypto is heavily tech-led and less of human intervention. We are talking to all nations that if a regulation has to be framed then one country cannot frame it alone. So we are speaking to all to form a Standard Operating Procedure (SOP) so that it is effective. So all these are part of the discussion. The discussion process is on in G20,” Sitharaman told reporters to post her address to the RBI board in New Delhi.

For 2023, India will hold the G20 presidency. A key player in the governance of the global economy is the G20, a leading forum for international economic cooperation. Sitharaman has previously stated that India will push for global regulation of crypto assets to stop the funding of terrorism.

The minister listed eight topics for discussion during its G20 presidency, which began on December 1, including multilateral institution reforms and food and energy security. The recent failure of the cryptocurrency exchange FTX and the subsequent market sell-off have highlighted the crypto ecosystem’s weaknesses.

Because they lack any inherent cash flows, crypto-assets do not strictly meet the criteria for being considered financial assets. Instead, they are self-referential instruments. Bitcoin, Ether, and a number of other crypto assets are no longer considered securities by US regulators.

According to the most recent Economic Survey, the US Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) made a rare joint statement on January 3, 2023, outlining their concerns about the risks that crypto-assets pose to the banking system.

The global response to cryptos is developing, it had been stated, and the geographically diffuse nature of the crypto ecosystem necessitates a common approach to the regulation of these volatile instruments.

The market for crypto assets, which are novel digital asset classes implemented using cryptographic techniques, has, according to the survey, been incredibly volatile, with its total valuation varying from almost USD 3 trillion in November 2021 to less than USD 1 trillion in January 2023.

The unstable nature of the ecosystem, along with its growing complexity and lack of transparency, have been brought to light, according to the statement, by its instability. 

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Business

State-sponsored crypto mining facility being constructed in Buryatia, Russia

In the Russian Republic of Buryatia, a new cryptocurrency mining facility is being constructed with assistance from a business connected to the government. A subsidiary of Bitriver, the largest mining company in Russia, is currently building the infrastructure for the large-scale project.

The Russian Far East and the Arctic Development Corporation (KRDV) announced that a 100 megawatt data processing facility devoted to the production of digital coins will open this year in Buryatia, a Russian republic in south-central Siberia.

The project will cost around 900 million rubles (more than $12.3 million), according to a press release, which was cited by the business news website RBC. The 30,000 mining machines that will be housed in the facility are expected to start operating in the first half of 2023.

Buildings and other infrastructure are already being constructed, along with the provision of the necessary power equipment, according to Bitriver-B, a subsidiary of the massive Russian mining company Bitriver. The company estimates that the new business will generate 100 new jobs.

The location of the bitcoin mining farm is in the village of Mukhorshibir, which is part of the “Buryatia” Priority Development Area, a region of the republic where a special legal system has been put in place to support business operations.

The Russian Ministry for Development of the Far East and the Arctic and the President’s Plenipotentiary Representative in the Far Eastern Federal District are both subordinates of the management firm KRDV. Its main task is to help investment projects in Russia’s Far East and the Arctic.

“Bitriver-B has been given access to a wide range of government support resources, helping it to establish one of the most significant businesses for Buryatia’s digital development. These include no property or land taxes, 7.6% insurance premiums, and a lower income tax rate, according to Dmitry Khameruev, director of KRDV Buryatia. The executive continued, “The bitcoin farm will also pay for the electricity it will use at almost half the regular tariff.”

The major mining project’s announcement follows news last week that Russia’s industrial mining farms will have a combined power capacity of more than 500 megawatts by the end of 2022. The country’s mining potential has been negatively impacted by sanctions targeting it as part of punishments for the invasion of Ukraine, despite the decline in the cryptocurrency market last year and the sanctions’ negative impact.

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Business

Vaultavo Launches Crypto Custody Solution Based On Biometric Smart Card

The world’s first biometric digital asset custody smart card, along with cutting-edge proprietary vaults, a secure SaaS digital platform, and access portals, are all included in the Vaultavo Custody Solution, which reinvents custody as we know it today.

Vaultavo has introduced the world’s first biometric smart card, which is designed to protect digital currencies from hacking and outright theft. The vulnerability of online trading, transacting, and asset protection is one of the major barriers preventing the adoption of cryptocurrencies, and it is addressed by the Vaultavo system, which is created for the institutional market.

Vaultavo has unveiled the first biometric smart card in the world, which is intended to safeguard digital currencies against hacking and outright theft. One of the major obstacles to the growth of cryptocurrencies is the vulnerability of online trading, transacting, and asset protection. The Vaultavo system is created for the institutional market to address this issue.

By creating and managing the Blockchain private key on the bank-grade secure Vaultavo Card, a decentralized approach to security that is similar to cryptocurrencies, Web3, and DeFi, the integrated hardware and software solution protects digital assets. This is in contrast to competing solutions that have attempted to provide security in a centralized manner.

The foundation of the solution, the Vaultavo Card, has a secure element that is EAL7 security certified, making it more secure than most, if not all, other custody solutions. The Vaultavo Card is the same size and thickness as a bank card, and it has Bluetooth, NFC, and USBC connectivity options in addition to a built-in biometric reader, an E Ink display, and a rechargeable battery.

The vulnerable nature of online trading, transacting, and asset protection is one of the major barriers to the growth of cryptocurrency. This patent-pending technology was created to overcome this issue. The problem is enormous in scope and size; according to Chainalysis, a blockchain data provider, the volume of illicit transactions increased in 2022, reaching an all-time high of $20.1 billion.

“Unlike other providers who have to trade off accessibility for security, the Vaultavo Custody Solution is designed to address all the challenges of crypto custody,” said Philip Meyer, CEO, Vaultavo. 

He added, “Ours is the only solution that guarantees the highest grade of security while allowing for the easiest level of accessibility and use. It has the potential to make using digital currencies as commonplace as debit cards for institutions and their clients, thereby increasing participation in the new digital economy. This solution will go a long way to ensure that the long tail of crypto again starts trusting the industry.” 

According to Sean Sanders, CEO of Revix, “Vaultavo is a crucial partner for our business; the company will essentially allow us to offer all of our customers a biometric card where customers can essentially and safely transact with crypto. Vaultavo is currently offering users the option to self-custody their cryptocurrency without giving up control of their assets, which is something that no other provider in the market is currently doing. They are the key to finally getting us to the position we’ve wanted to get to for a long time, which is, allowing our customers to use crypto for real-world purchases like getting a cup of coffee.” 

Joe David, managing director and founder of Myna Accountants, “We are very excited by this new technology and this new approach to one of cryptocurrency’s biggest challenges, custody and self-custody. They’re making it simple and secure for Myna and our clients to use something that has historically been fundamentally challenging and full of challenges. In the end, our collaboration with Vaultavo will benefit Myna’s clients and make it possible for us to offer them best-in-class services.”

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Business

Bank of England Launches Digital Pound CBDC Project

The Bank of England has officially launched its digital pound CBDC project as a new form of money, for households and businesses. The new initiative and the various features of the digital pound are described in an official consultation paper that was released by the Bank of England and HM Treasury.

The CBDC project from the UK has been in the works for some time, with many anxious about its eventual release. According to the documents, the digital currency would be issued by the nation’s central bank. Households and businesses would access it through digital wallets.

The digital pound will complement established financial institutions as a digital currency, not as a replacement for them, as stated in the project’s consultation paper.

Moreover, stating the intention of the CBDC is to ensure that central bank money remains available and valuable in an ever-more digital economy.

During the introductory phase of the CBDC, the consultation paper notes a potential limit on the amount held by each citizen. 

It states, “We judge that a limit of between £10,000 and £20,000 per individual is likely to strike an appropriate balance between hanging risks and supporting wide usability of the digital pound.”

The paper makes note of “private sector innovation,” amidst the benefits of the diversification of payments in the UK. 

Additionally, noting that the development would be one that would occur over a matter of years. Stating the decision of whether digital payment in the country is even needed would only come through observation of how the payments landscape evolves in coming years, both in the UK and abroad.

The report also stated that it is too early to take the decision on whether to introduce the digital pound. 

The statement further noted, “That decision will be made in coming years making account of developments in money and payments and based on our findings as we investigate further operational features and technology required for its implementation. “

Conclusively, the idea of a CBDC in the UK is still way away, but the launching of the program is still a massive feat for the digital asset industry.

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Business

AI startup Fastagger Inc. receives funding from CV VC

A renowned blockchain venture capital firm based in Switzerland, CV VC, has recently invested in Fastagger Inc., an African AI and blockchain startup. This marks the first time a Web3 and AI startup based in Africa has received investment from a firm based in Crypto Valley Switzerland, where blockchain unicorns such as Ethereum are based.

Mutembei Kariuki, CEO of Fastagger expressed his merriment saying,  “I am excited to share that this investment will be used to further develop and scale our cutting-edge technology expertise that combines the power of Web 3 and AI. Our focus is on providing innovative solutions that utilize the best of both worlds to create new opportunities for businesses and individuals.”

“I am confident that this investment will help us to accelerate our growth and bring our vision to life. Our team is excited to work with CVVC to achieve our mission and make a real impact in the world. This is a major milestone for our company and for the African startup ecosystem as a whole,” he added.

CV VC’s Principal and Global Head of Investments, David Long also commented, “At CV VC, our mission is to bridge the gap between Web2 and Web3 by fostering the growth and global adoption of blockchain technology. CV VC is excited to welcome Fastagger to our global blockchain and Web3 portfolio and to support the company in its development.”

He further noted, “Fastagger is the perfect example of the caliber of innovation and talent coming out of Kenya’s Web3 and AI ecosystem, enabling the acceleration of Africa’s prosperity by bridging the gap between the old economy and the new. We are honored to be a part of their journey.”

According to The Kenyan Wallstreet, Fastagger Inc won the Emerging Talents category at the Falling Walls Conference in Berlin, Germany focused on Breaking the Wall of Democratizing Artificial Intelligence. They are also part of the NVIDIA Inception program on AI innovations and part of the exclusive Startup with Chainlink program, a purpose-built program supporting Web3 founders. 

Fastagger Inc started operations in Kenya by using data to support the over 90% of SMEs in emerging markets such as Africa that have been and continue to be impacted by climate change. By using AI and blockchain technologies to increase sales and access to finance, Fastagger is bringing customer insight and engagement to decentralize mobile-first retail and onboarding the next billion onto Web3.

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Business

Binance to suspend USD deposits and withdrawals starting today

Starting on February 8, 2023, Binance will temporarily halt all USD deposits and withdrawals as they resolve an administrative issue. In a statement issued, a Binance spokesperson assured affected customers were to be notified directly, with the suspension only affecting 0.01% of monthly active users.

The statement noted, “We are temporarily suspending USD bank transfers as of February 8th. Affected customers are being notified directly. Only 0.01% of our monthly active users leverage USD bank transfers.” 

Currently, there is no reasoning given behind the suspension of USD withdrawals. Conversely, Binance has assured that “All other methods of buying and selling crypto remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance,” according to the spokesperson.

Additionally, the statement noted, “All other methods of buying and selling crypto remain unaffected, including bank transfers using one of the other fiat currencies supported by Binance (Including Euros), buying and selling crypto via credit card, debit card, Google Pay and Apple Pay, and via our Binance P2P marketplace.”

Subsequently, there has been no firm timetable as to when the suspension of USD activity would be lifted for the platform. 

Binance’s exchange token, BNB has been largely unaffected by the news. As of this writing, it is now holding at 330.09.

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Business

Interpol looking to police the metaverse

Police organizations are facing difficulties when adopting certain policies to enforce the law in the metaverse. However, Jurgen Stock, the Secretary General of the International Criminal Police Organization, Interpol, believes the organization must be prepared to act on crimes that are happening in the digital world.

The organization is currently preparing to expand its operations to platforms utilized by some groups to commit crimes in the metaverse. In a BBC interview, Stock stated:

“Criminals are sophisticated and professional in very quickly adapting to any new technological tool that is available to commit a crime. We need to sufficiently respond to that. Sometimes lawmakers, police, and our societies are running a little bit behind.”

Among these crimes currently happening in the metaverse there are verbal harassment, assaults, and others including ransomware, counterfeiting, money laundering, and financial fraud. However, some of these are still in legal gray areas.

According to Dr. Madan Oberoi, Interpol’s executive director of technology and innovation, one of the main issues the agency is now facing is assessing whether certain activity on the metaverse qualifies as a crime or not.

He stated, “If you look at the definitions of these crimes in physical space, and you try to apply it in the metaverse, there is a difficulty. We don’t know whether we can call them a crime or not, but those threats are definitely there, so those issues are yet to be resolved.”

Oberoi knows for a fact that Interpol must communicate with and be present on metaverse platforms in order to police the metaverse. This is why the organization already has its own place in the metaverse, which was inaugurated during its 90th General Assembly in New Delhi in October.

Interpol’s metaverse platform also serves another purpose by enabling it to provide training online to personnel from other nations and enabling them to immediately put their new skills to use in the metaverse.

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Business

Binance launches a tax tool for crypto traders in France and Canada

Crypto exchange, Binance has announced that it is launching a new tax tool that will let users calculate the tax associated with their crypto trading activity.

The new tool, which can reportedly support up to 100,000 transactions, will allow users to download a report showing a tax summary of any gains or losses made using Binance. 

The tool is currently only available in France and Canada, but a Binance spokesperson revealed that there will be more markets added later this year. The crypto exchange didn’t provide any more specifics about when or to what countries.

The current version of Binance tax doesn’t integrate with other platforms or wallets other than the exchange’s in-house Binance Wallet. Binance also revealed that it’s planning to develop these integrations and that it is considering which integrations and future improvements would be beneficial in the future for this product.

Binance tax does not cover all types of transactions, including futures trading and NFTs, though it does support activities such as spot trades, crypto donations, and blockchain fork rewards.

Unfortunately, the tool may have been introduced slightly too late for users in many locations. The tax deadline for crypto traders in the UK, for example, was January 31.

U.S. traders will have slightly longer to do their taxes, until April 18, but it’s unclear if Binance’s tool will be available for them to use before then.

In terms of paying capital gains taxes, many long-term investors may not have much to declare given the nuclear crypto winter that set in over the last tax year.