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Technology

Mauritius Financial Regulator Seeks Public Input for Metaverse Integration

The Mauritius Financial Services Commission (FSC) is actively engaging with industry experts and the general public to explore the integration of the metaverse into the country’s financial sector. Throughout the month of November, the FSC is dedicated to gathering feedback and insights to understand the potential impact and opportunities offered by the virtual ecosystem in the financial realm.

The metaverse, a digital universe where individuals interact, create, and conduct business, poses exciting possibilities for Mauritius’ financial landscape. Recognizing its significance, the FSC aims to ensure a seamless transition into this new digital frontier. This initiative follows the FSC’s recent emphasis on strategic innovations to enhance the country’s financial services ecosystem, highlighting the regulator’s commitment to informed decision-making for the industry and the public.

In preparation for the global surge in metaverse adoption, the FSC has proactively studied metaverse-focused initiatives in several jurisdictions, including China, Dubai, Indonesia, Singapore, South Korea, the European Commission (EU), and the United Kingdom. Drawing inspiration from these experiences, the FSC is keen on reshaping Mauritius’ financial services collaboratively. To this end, the regulator has posed seven pivotal questions to the public, emphasizing the importance of collective efforts in aligning financial services with the metaverse.

The FSC’s proactive approach showcases its dedication to staying ahead in the rapidly evolving landscape of financial technology. The commission’s goal is to establish a regulatory framework that not only supports the metaverse but also fosters innovation and growth within Mauritius’ financial sector. Mauritius aims to be a trailblazer in the metaverse revolution, particularly in Africa, and the FSC has set a deadline of November 30 for respondents to provide their input on these crucial metaverse-related questions.

These insights will form the foundation of a diverse working group, guiding future policy and regulatory decisions concerning the metaverse initiative and other innovative technologies. Additionally, there are reports suggesting that Mauritius is gearing up to launch the pilot phase of its digital rupee in November 2023. While an official announcement is pending, Harvesh Kumar Seegolam, the governor of the Bank of Mauritius, has prioritized central bank digital currency (CBDC) development during his tenure, indicating the nation’s commitment to embracing advancements in financial technology.

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Business

Minit Money Empowers Zambians In South Africa With Revolutionary Blockchain Remittance Services

In a significant move, Minit Money, the cutting-edge blockchain remittance app, has expanded its services into Southern Africa, unveiling its inaugural remittance corridor connecting South Africa with Zambia. This expansion, announced during the Africa Fintech Summit in Lusaka, Zambia, marks a momentous occasion for Minit Money as it extends its reach into Southern Africa, specifically catering to the needs of Zambians residing in South Africa.

Minit Money has experienced remarkable growth within its existing remittance corridors, spanning countries such as Ghana, Nigeria, Uganda, Cameroon, Senegal, Benin, Ivory Coast, and Kenya. The launch of the Zambia corridor signifies a significant milestone for the company, broadening its horizons and providing essential financial services to the Zambian diaspora community in South Africa.

The connection between South Africa and Zambia runs deep, rooted in historical solidarity during the apartheid era. Zambia played a vital role in supporting the South African liberation movement, offering refuge to prominent anti-apartheid activists like Nelson Mandela and Oliver Tambo. Beyond history, these nations share a robust economic partnership, particularly in the copper mining industry. This collaboration has led to technological advancements, job creation, and infrastructure development, benefiting both countries and contributing to the global copper market.

The seamless transfer of funds between South Africa and Zambia holds paramount importance for many Zambians with family members employed in South Africa’s economic hubs. Minit Money’s innovative solution addresses this need efficiently.

Minit Money stands out as an easy-to-use consumer digital remittance app harnessing the power of blockchain technology. This approach simplifies, expedites, and reduces the cost of money transfers. The introduction of the South Africa-Zambia corridor signifies substantial cost savings, faster transfer times, and an enhanced user experience for Zambians in South Africa, strengthening their financial connections with their homeland.

Minit Money’s expansion into Southern Africa, especially the South Africa-Zambia corridor, underscores the company’s dedication to meeting the diverse needs of the Zambian diaspora community. By leveraging blockchain technology, Minit Money ensures cost-effective, efficient, and user-friendly remittance services, enhancing the financial well-being and connections of individuals relying on these vital services. This expansion not only addresses the financial requirements of the Zambian community in South Africa but also reinforces the historical and economic ties between these nations. Minit Money’s ongoing commitment to expanding its remittance corridors positions it to make a meaningful impact on the lives of its users, fostering financial stability and strengthening cross-border collaborations in the process.

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Business

Empowering African Businesses: Hurupay Revolutionizes Cross-Border Payments With Stablecoin-Based Platform

Hurupay, a cutting-edge crypto wallet founded earlier this year, has emerged as a game-changer in Africa’s financial landscape. This innovative platform provides users with access to stablecoins, cryptocurrencies pegged to the value of the US dollar at a 1:1 ratio. Designed with the specific aim of assisting small and medium-sized enterprises (SMEs) and individuals, Hurupay offers a solution to combat the adverse effects of fluctuating local currencies against the dollar, ensuring a stable and dependable payment method.

The brainchild of Philip Mburu, the CEO and co-founder, Hurupay was born out of his struggle as a migrant in Ghana. With limited options for cross-border transactions and exorbitant fees, Mburu envisioned a platform that could provide easier access to stable currencies such as the US dollar. Partnering with James Mugambi, now the COO, and Allan Okoth, the CTO, the trio embarked on a journey to address the financial uncertainty experienced by millions of SMEs in Africa.

Hurupay facilitates businesses in accepting stablecoin payments seamlessly, allowing them to scan QR codes for customer transactions and pay suppliers with zero fees. Individuals can save money in both dollars and stablecoins, conduct cross-border transactions at minimal costs, and make purchases at various shops. The platform’s user-friendly interface and low transaction fees have garnered widespread attention.

Mburu emphasized the pressing need Hurupay aims to fulfill: “In Africa, more than 44 million SMEs employ over 80% of the population. These businesses often rely on local currencies, which frequently depreciate against stable currencies like the US dollar, leading to financial insecurity. Hurupay bridges this gap by enabling SMEs to process stablecoin payments effortlessly, empowering them in the digital economy.”

The demand for stablecoins in Africa is soaring due to their accessibility to dollars and cost-effectiveness across borders. Hurupay’s rapid growth underscores this trend, with over 1,500 active users onboarded within two months of its launch in Ghana, Kenya, and Nigeria. The platform has processed transactions totaling over US$100,000 during this period.

Currently, Hurupay operates with the support of a US$21,000 grant from Prezenti Grants in collaboration with the Celo Blockchain Foundation. The startup monetizes its services through a two percent fee on off-ramping and a 0.5 percent fee on payments to SMEs. Looking ahead, Hurupay plans to integrate Visa and Mastercard, enabling users in North America and Europe to deposit funds on the platform for instant transfers to their families and friends in Africa.

Exciting developments are on the horizon for Hurupay, as Mburu revealed, “By the end of this year, we aim to expand our services to Rwanda, Tanzania, and Uganda, and our vision includes adding 10 more countries by 2024.” With its commitment to financial inclusivity and innovative solutions, Hurupay is poised to reshape how businesses and individuals conduct transactions in Africa, ushering in a new era of stability and prosperity.

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Coins

Understanding The Factors That Influence Bitcoin Prices

In January 2009, the Bitcoin blockchain was introduced, marking the inception of a groundbreaking digital currency. Satoshi Nakamoto, the creator, envisioned Bitcoin as a decentralized electronic cash system, initiating its release to a small community of cryptography enthusiasts. Initially lacking a definite monetary value due to the absence of a marketplace, Bitcoin faced the challenge of determining its worth in fiat currencies like the U.S. dollar (USD).

Market Dynamics: Supply and Demand

The fundamental principles of supply and demand, governing the prices of goods, fiat exchange rates, and commodities like corn and oil, also apply to cryptocurrencies, including BTC. Surpluses of in-demand supplies tend to lower prices, while supply shortages lead to price appreciation, assuming demand remains constant. These dynamics play a crucial role in determining the value of BTC and other digital currencies.

Evolution of Bitcoin Price Markets

Bitcoin’s journey from obscurity to prominence can be traced back to May 22, 2010, when 10,000 BTC were exchanged for two pizzas, marking the first notable Bitcoin transaction. Over time, more individuals and businesses started accepting Bitcoin as payment, fostering a vibrant market and enabling organic price discovery. Transactions expanded from pizza deliveries to luxury goods and even real estate, propelling Bitcoin into a global economic force.

Bitcoin’s Demand Drivers

BTC’s popularity stems from its perceived role as an alternative fiat currency and payment system. Its limited supply and decentralized nature attract investors seeking an inflation hedge, store of value, or investment opportunity. Additionally, individuals disillusioned with traditional banking systems or national currencies find solace in an asset that is resistant to confiscation and eliminates the need for intermediaries in transactions.

Market Determinants and Predictions

Bitcoin’s price predictions vary widely, ranging from global reserve currency status to being deemed worthless. However, these forecasts are mere opinions and do not directly influence Bitcoin’s market price. Similar to fiat exchange rates and other assets, BTC’s value is subject to the laws of supply and demand. Centralized crypto exchanges (CEXs), where BTC is traded for fiat currencies and various other cryptocurrencies like ether (ETH) and litecoin (LTC), play a pivotal role in shaping its market dynamics.

In conclusion, the intricate interplay of supply, demand, and market acceptance determines the price of Bitcoin. From its humble beginnings to its current position as a transformative digital asset, Bitcoin’s journey exemplifies the power of decentralized currency in today’s ever-evolving financial landscape.

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Business

Old Mutual Wealth And Inves Capital Collaborate To Boost Liquidity For ZARP Stablecoin

Old Mutual Wealth and Inves Capital have recently announced a joint effort to enhance liquidity for the ZARP Stablecoin, a cryptocurrency linked to the South African rand’s value. This strategic partnership involves injecting substantial liquidity into the ZARP network and promoting its integration within decentralized finance protocols.

Initially entrusted with managing the cash reserves supporting the ZARP Stablecoin project in 2022, Old Mutual Wealth has extended its collaboration with Inves Capital to further explore opportunities in decentralized finance. Simon Dingle, Managing Director for Inves Capital and ZARP Stablecoin, highlighted the significance of this expansion, stating, “We are venturing into new territories within decentralized finance to provide robust liquidity to emerging capital markets. With the evolution of crypto, ZARP is poised to play a pivotal role in representing rand value within these innovative protocols.”

Dingle emphasized that South Africa’s regulatory clarity has paved the way for Crypto Asset Service Providers to explore new business prospects, with stablecoins serving as the cornerstone of this emerging financial ecosystem. He explained, “ZARP empowers the rand, transforming it to align with the realm of programmable money and enabling novel applications that reshape markets and enhance financial inclusivity.”

Farhad Sader, Managing Director of Old Mutual Wealth, shared his perspective, stating, “Our partnership with Inves Capital in 2022 to oversee the ZARP treasury was driven by our desire to engage in a groundbreaking project that pushes the boundaries of innovation. Extending this partnership aligns with our vision, as we have witnessed the technology’s potential applications firsthand.”

ZARP stands out as a fully collateralized stablecoin, ensuring that there is at least one rand held in its treasury reserves and managed by Old Mutual Wealth for every ZARP token issued on the blockchain. The fresh infusion of liquidity resulting from this collaboration is currently accessible as of the time of this announcement.

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Business

Paxful Faces Imminent Closure Amidst Worsening Operational Crisis

Paxful, the cryptocurrency exchange, has been in the spotlight this year for both positive and negative reasons. Earlier, there were rumors of a shutdown, internal conflicts among co-founders, and a subsequent relaunch. However, recent revelations indicate that Paxful continues to grapple with issues, hindering its ability to provide efficient services to customers.

Behind the scenes, the company faces several challenges, leading to customer dissatisfaction. Social media platforms are flooded with complaints about the platform’s inefficiency, citing problems such as a surge in fraud cases, slow transaction speeds, arbitrary account bans, disputes left unresolved, and difficulties in fund withdrawals.

One user shared their experience of attempting to withdraw nearly $2,000 USDT, which has been pending for a week without a transaction ID. Similar complaints from other users suggest a recurring problem on the platform. Paxful’s support team responded vaguely, indicating a lack of clear resolution timelines.

Additionally, insider sources revealed to Technext publications that Paxful is operating at a loss and dipping into user funds to cover legal expenses. The company is allegedly on the verge of financial instability, raising concerns about its future. Tensions between co-founders Ray Youssef and Artur Schaback have further complicated the situation, leading to management changes and operational challenges.

Under the new leadership of CEO Roshan Dharia, the company is reportedly functioning with minimal staff, notably lacking in compliance officers and engineers. This shortage has contributed to the recent withdrawal issues, raising questions about the platform’s safety and adherence to industry standards. Paxful, which once boasted about 200,000 daily transactions, has seen a significant decline, dropping to below 30,000 daily transactions. Consequently, trade statistics that were previously public have been removed from the website, reflecting a concerning trend for the exchange.

Furthermore, Paxful has faced legal challenges, including a recent default judgment in a New York court, resulting in substantial financial liabilities. Despite these mounting concerns, when approached for comments, CEO Roshan Dharia remained optimistic, stating that Paxful has appointed experienced executives and is well-capitalized, with millions of users globally. However, the company refrained from addressing specific allegations.

Paxful’s future remains uncertain as it navigates these challenges, leaving users and the crypto community closely watching how the exchange will address its issues and sustain its operations in the face of mounting obstacles.

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Business

Cryptocurrency Industry Grapples With Taxation Challenges In Kenya

The cryptocurrency sector in Kenya is facing a significant challenge as players withhold billions of shillings in taxes from the Kenya Revenue Authority (KRA). This situation has arisen following a circular from the Central Bank of Kenya (CBK) that prohibited banks from dealing with businesses involved in virtual assets. The Blockchain Association of Kenya has informed the National Assembly’s Finance committee that, despite collecting taxes from clients, the sector has not remitted the three percent tax withheld from Kenyans selling digital assets.

The lobby group explained to MPs that their decision not to remit taxes from over four million Kenyans involved in cryptocurrencies like Bitcoin is a consequence of the CBK’s directive. The CBK had warned Kenyans about the use, holding, and trading of virtual currencies, stating that they are not legal tender and are unregulated digital currencies not guaranteed by any government or central bank.

Alan Kakai, the director for legal and policy affairs at the association, stated that although they had withheld the digital asset tax since its implementation on September 1, 2023, they were unable to remit it to the KRA due to the banking restrictions imposed by the CBK. He did not disclose the exact amount withheld but emphasized the association’s willingness to be regulated, taxed, and licensed to operate legally. The industry seeks to be understood better, highlighting the need for clearer regulations.

The Finance Act of 2023 introduced a three percent tax on earnings from selling digital assets, affecting both cryptocurrency holders and traders in non-fungible tokens (NFTs). Kakai urged MPs to repeal the Digital Asset Tax (DAT), arguing that taxing the Gross Fair Market Value could potentially impact loss-making entities negatively. He pointed out ongoing court cases against the Finance Act that introduced the DAT.

Kakai revealed that nearly Sh3 trillion worth of transactions occurred between July 2021 and June 2022 in Kenya. There is a pressing need for the enactment of the Digital Assets Act by July next year to address potential financial losses and prevent money laundering, emphasized Kuria Kimani, the chair of the National Assembly’s Finance Committee. The Finance Act defines digital assets as intangible items of value, including cryptocurrencies, token codes, and numbers held in digital form and generated through cryptography.

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Technology

Pacimer’s $50 Million Investment Boosts Blockchain Innovation In Ghana

Blockchain mining platform Pacminer has recently made a significant stride in the African market, joining hands with Ghanaian government agencies and fellow blockchain companies in a joint venture worth $50 million. The collaboration aims to fortify Pacminer’s industrial chain and enhance user earnings, marking a pivotal moment in the company’s expansion journey.

Having set foot in Ghana in October 2022, Pacminer has revolutionized employment and investment strategies, leading to substantial growth in the mining sector. Its innovative approaches have garnered praise from a global user base exceeding one million. Pacminer’s unwavering dedication to technological advancements has resulted in a remarkable 20% increase in its network mining capacity, gaining industry-wide recognition.

This $50 million investment serves as a testament to Pacminer’s credibility and commitment to the Ghanaian market. With this substantial capital injection, Pacminer plans to optimize mining pools and implement cutting-edge cloud infrastructure, meeting the escalating demands of users in Ghana.

At the heart of Pacminer’s success lies its proficient team, comprised of early cryptocurrency investors and seasoned researchers with extensive expertise in research and development. Through this initiative, Pacminer is refining its mining pool solutions to ensure maximum efficiency and minimal costs, aligning with its global mission to enhance digital economic exchanges.

Pacminer has transitioned from conventional digital mining to intelligent mining, focusing on large-scale data centers powered by sustainable, low-carbon energy sources. By employing distributed node algorithms, Pacminer generates data in an eco-friendly manner, minimizing environmental impact. These efforts underscore Pacminer’s steadfast commitment to sustainability, using oversight technologies to maintain high ethical standards.

In a bid to enhance extraction efficiency in Ghana by 20%, Pacminer is upgrading machines tailored specifically for the sector’s scaling needs and optimizing algorithms. This strategic move guarantees high data availability, reliability, and agility, enabling flexible expansion of storage capacity and reinforcing Pacminer’s dedication to seamless data access and preservation.

Leveraging its expertise and unique advantages, Pacminer stands out as an industry leader, reducing costs and amplifying computing power to safeguard user interests and fuel growth. The company continues to shape the digital mining landscape with its pioneering spirit, setting new benchmarks in the industry.

Simultaneously, blockchain technology is rapidly gaining momentum globally and within Africa, extending its reach beyond digital currencies into areas such as supply chain management, voting security, and cross-border transactions. In Africa, blockchain plays a pivotal role in promoting financial inclusion, offering innovative services where traditional banking systems fall short. Several nations are exploring blockchain for transparent land registries, agricultural traceability, and digital IDs.

As blockchain adoption continues to grow, it holds the potential to drive economic growth, reduce fraud, and empower underserved populations in Africa. With the global landscape evolving, Africa is poised to become a thriving blockchain hub. Pacminer’s substantial investment in Ghana signifies growing confidence in blockchain’s immense potential, paving the way for a transformative digital future in the region.

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Business

FTX Africa Ambassadors: Victims Of A Financial Fallout

Representatives of the now-defunct FTX Africa find themselves in grave danger as they navigate through life-threatening threats from their own community. These ambassadors, initially entrusted with the task of expanding FTX Africa’s user base, are now facing severe backlash after the company’s financial collapse. The situation has escalated to the point where some ambassadors fear for their lives.

Pius Okedinachi, who previously managed educational initiatives at FTX Africa, shared his story with CoinDesk, highlighting how the platform once seemed promising compared to its competitors. “We encouraged many of our close ones to join the FTX platform,” he said. However, in the aftermath of FTX’s downfall, those they had recruited turned against them, eroding the trust of their friends and family members.

The controversy revolves around FTX Africa’s ambitious initiative led by Sam Bankman-Fried, aimed at expanding the company’s presence in Africa, primarily among college students. Sadly, this initiative suffered a severe setback following FTX’s collapse, leaving brand ambassadors to bear the brunt of the community’s anger.

Unlike competitors Binance and KuCoin, FTX Africa’s engagement program, which spanned two years, focused on recruiting tech-savvy, younger demographics. Insiders from FTX Uganda’s student engagement effort revealed that while students were enticed by potential profits, they often lacked a full understanding of the substantial financial risks involved.

CoinDesk reported that one ambassador had withdrawn from public view out of fear of retaliation from the community for encouraging investments in the failed FTX platform. Several ambassadors have remained out of the public eye for months as the community demands accountability. Physical threats have been directed at these ambassadors, exacerbating an already dire situation.

When a project or organization within the industry faces significant challenges, the impact goes beyond mere financial losses. The livelihoods and social identities of stakeholders are often tragically affected. The case of FTX Africa serves as a somber reminder of this harsh reality, shedding light on the broader consequences of financial collapses within the industry.

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Business

Uncertainty Surrounds South African Crypto Platform’s Hopes For Fund Recovery

Revix, the South African cryptocurrency investment platform, is clinging to optimism as its custody partner, Haru Invest, proposes a phased asset recovery plan, potentially enabling users to regain access to their blocked funds. Despite this glimmer of hope, Sean Sanders, Revix’s CEO, remains cautious, stating that the completion timeline for this process remains uncertain.

The trouble began in June 2023 when Revix restricted users’ access to 24% of their funds, attributing the decision to the abrupt withdrawal suspension by their South Korea-based custody partner. While some have drawn parallels between Haru Invest and previous incidents like Celsius, Sanders emphasized that it’s premature to make such comparisons. He highlighted that details about what occurred at Haru Invest have yet to surface, although Haru’s public communication implies the intention to distribute held assets, suggesting potential value for users.

Sanders assured Revix’s commitment to closely monitoring the recovery efforts, prioritizing users’ interests by aiming for the highest possible value during the process. Additionally, the company has proactively engaged regulators, hoping that regulatory involvement will expedite the resolution of this complex situation. The fate of users’ funds remains uncertain, underscoring the challenges faced by both Revix and its customers in this ongoing crisis.