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- Binance Receives Licenses To Offer Crypto Services In El Salvador 🇸🇻 , $120M Crypto Ponzi Scheme Unerathed In India 👮
Binance Receives Licenses To Offer Crypto Services In El Salvador 🇸🇻 , $120M Crypto Ponzi Scheme Unerathed In India 👮
Circle launches MPC wallet beta for Etherum, Polygon, Avalanche. UK National Crime Agency strengthens crypto crime fight.
Manan Vora
August 09, 2023
Snapshot Web3
August 9, 2023
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Regulatory Updates
The Federal Reserve has launched a program to closely oversee state-owned banks' cryptocurrency activities, focusing on stablecoins. Banks need approval before engaging in stablecoin operations, showing they've implemented safeguards. This reflects growing government interest in regulating digital currencies due to their integration into the financial system. The emphasis on stablecoins recognizes their impact on stability and aligns with global regulatory efforts. This move signifies a significant step in shaping the regulatory landscape for cryptocurrencies.
Binance has received licenses to provide crypto services in El Salvador, where Bitcoin is legal tender. The exchange obtained a Bitcoin Services Provider license from the Central Reserve Bank and a Digital Assets Services Provider license from the National Commission of Digital Assets. This allows Binance to offer customized crypto-related products and services in the country. However, Binance is facing regulatory issues in the United States, including lawsuits and regulatory scrutiny.
Law enforcement in India's Odisha state has busted a $120 million crypto Ponzi scheme. The Economic Offences Wing arrested key individuals behind the fraud, which attracted over 10,000 participants across multiple states. The scheme centered around the Solar Techno Alliance (STA) Crypto Token, promising quick profits through persuasive tactics. The scheme's leaders, Gurtej Singh Sidhu and Nirod Das, were apprehended. The investigation found that STA lacked authorization from regulators and operated under the pretense of a green energy venture.
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Innovation and Launches
Circle, the issuer of USD Coin (USDC), has introduced a beta version of an MPC wallet service, enabling developers in the blockchain space to create customized wallets for users. This new service, initially available on Ethereum, Avalanche, and Polygon, utilizes multiparty computation (MPC) to enhance wallet security by splitting private keys into multiple shards. Developers can choose various security configurations, including hosting their own MPC nodes or using Circle's nodes. The move aims to simplify the user experience and encourage the adoption of digital assets like USDC.
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Trending DApps
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NFT and Metaverse
LiveArt's NFT collection "Kingdom of the Laughing Man: Boundless," by renowned artist Yue Minjun, sold out in under two hours, totaling $1 million in sales. The collection featured 999 unique NFT artworks priced at $700 each and garnered significant attention on major NFT marketplaces. LiveArt plans to unveil 3D animated artworks and an Interactive Immersive Experience as part of the ongoing collaboration with Minjun. The success solidifies LiveArt's position as a premier platform for fine art in the Web3 space.
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Resource of the Day
Solana offers speed and scalability for NFTs. Set up a Solana Wallet using CLI Tools or Phantom extension. For CLI, generate a wallet and save the keypair. With Phantom, link to Solsea platform after email confirmation. To create NFTs, upload an image, add details, and set royalty (0%-50%). Solana's low fees and Proof-of-History mechanism make it great for NFTs. Trade on platforms like Metaplex and Solanart.
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Interesting Reads
Cross-chain interoperability faces hurdles like the absence of standardized protocols, challenging user experiences, inefficient cross-chain markets, and a lack of unified understanding. Demand needs to be nurtured through reduced gas fees and added value. Ensuring the validity of proofs, dealing with complexity, managing high computational loads, and addressing the potential for hacks are also issues. Scalability concerns arise due to slow data transfers between chains. Overcoming these challenges requires technological advancements, simpler user experiences, collaborative efforts, and a strong drive towards achieving cross-chain interoperability.
Web3 is embracing self-sovereign identity (SSI) to tackle data management issues. Shiba Inu's lead developer, Shytoshi Kusama, plans to integrate SSI into their projects, granting users control over their personal data without intermediaries. SSI aligns with Web3 principles and uses technologies like zero-knowledge proofs to enhance security and privacy. It addresses Web2 challenges, improving compliance, reducing risks, and enabling potential data monetization. This empowers users by putting them in charge of their data and fostering a more secure online environment.
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Quick Links
Former FTX co-CEO Ryan Salame is reportedly in talks with US federal prosecutors to plead guilty in connection with FTX's collapse. He could admit to violating campaign donation laws as early as next month and might cooperate as a witness against FTX founder Sam Bankman-Fried in October. Salame's plea would follow similar actions by other former FTX executives who are expected to testify in the US government's prosecution of Bankman-Fried. This comes after Salame reported alleged fraud involving FTX and Bankman-Fried to Bahamian authorities.
The UK's National Crime Agency (NCA) is strengthening its fight against cryptocurrency-related crimes by expanding its digital assets investigation team. They plan to hire senior investigators to focus on high-end crypto fraud and money laundering by organized crime groups. Collaborating with police and surveillance teams, these investigators will gather evidence to build complex cases. This initiative reflects the UK's commitment to curbing illicit crypto activities and combating cybercrime in the financial sector.
Galaxy Digital CEO Mike Novogratz suggests that the first US spot Bitcoin ETF could be approved within six months, citing sources at BlackRock and Invesco. Galaxy Digital, partnered with Invesco, is in the running for this ETF. Novogratz predicts fierce competition among ETF issuers for market share once approved. Analysts also speculate that approval might speed up if Grayscale's lawsuit against the SEC is successful.
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The information provided in this newsletter is for informational purposes only and should not be interpreted as investment advice, endorsement, or recommendation. Cryptocurrency investments carry significant risk due to their volatility. You should consider your financial situation, investment goals, and risk tolerance before making any investments. We strongly recommend consulting a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
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