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- Donald Trump Unveils New 'Mugshot' NFTs, Stirring Up Prices for His Previous NFTs 🇺🇸🏦
Donald Trump Unveils New 'Mugshot' NFTs, Stirring Up Prices for His Previous NFTs 🇺🇸🏦
PLUS: China’s Blockchain ID Revolution: RealDID for 1.4 Billion Citizens. BSC records the highest number of transactions processed.
Manan Vora
December 13, 2023
Snapshot Web3
December 13, 2023
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Regulatory and Legal News
Senator Elizabeth Warren's proposed bill, the "Enhanced Financial Oversight and Transparency Act," aims to expand the Bank Secrecy Act to include non-custodial software products, such as cryptocurrencies and Free and Open Source Software (FOSS). While gaining support from additional co-sponsors, the bill has sparked a heated debate over its potential impact on privacy, innovation, and the technology ecosystem. Critics argue that imposing bank-like Know Your Customer (KYC) rules on decentralized technologies may not be suitable, highlighting concerns about regulatory overreach and the unique characteristics of non-custodial software. The outcome of this ongoing discussion will likely influence the future of financial regulations in the digital age.
The UK's National Audit Office has criticized the Financial Conduct Authority (FCA), stating that the financial regulator is slow to take enforcement action, particularly against companies violating rules in the crypto space. The report highlights delays in registering crypto firms and addressing issues related to crypto ATMs. Despite the FCA requiring crypto firms to register for anti-money laundering compliance since January 2020, enforcement actions against illegal crypto ATM operators only commenced in February 2023. The FCA's slow response has been a subject of industry criticism, with the regulator attributing delays to challenges in recruiting and retaining staff with crypto compliance skills, leading to a backlog of 1,400 cases related to unregulated crypto activity from January 2020 to June 2023.
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Innovation and Launches
China's Ministry of Public Security, in collaboration with BSN, has unveiled the RealDID initiative, aiming to utilize blockchain for secure and efficient identity verification for its 1.4 billion citizens. The initiative centers on decentralized identifiers (DID) and private keys, allowing individuals to confirm their identity online without compromising sensitive information. While promoting enhanced privacy and security, critics express concerns about the potential misuse of this technology and the risk of creating a surveillance state. China's broader push toward digital innovation aligns with the RealDID initiative, reflecting the government's commitment to balancing secure online interactions with regulatory oversight. The move raises questions about responsible technology use and potential implications for individual freedoms, emphasizing the global significance of this blockchain-based identity verification system.
Brazilian neobank Nubank is responding to demand from the local Bitcoin community by allowing users to make crypto withdrawals from its platform starting next year. The move follows the bank's deal with USD Coin operator Circle, enabling the addition of USDC pairings. Nubank, which added crypto pairs to its banking app last year, will now provide increased flexibility for users, allowing them to transfer cryptocurrencies and make payments. The initiative aligns with the growing trend of Brazilian banks entering the crypto space, with Itaú Unibanco recently launching its own crypto trading service.
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NFT, Gaming and Metaverse
Former U.S. President Donald Trump has unveiled a new NFT collection called the "Mugshot Edition," priced at $99, which references his legal troubles. The announcement has stirred up prices for Trump's previously issued NFTs. Buyers of 47 or more Trump cards from this collection will have the opportunity to dine with him at Mar-a-Lago and receive a piece of the suit he wore during his August arrest. Some cards in this edition will be unique, and some may be hand-signed by Trump himself. While previously issued Trump NFTs briefly dropped to 0.1 ETH after the announcement, they rebounded to around 0.18 ETH. Despite being a crypto skeptic during his presidency, Trump's earlier NFT projects, Trump Digital Collectible Cards, sold out, and he held $2.8 million in a cryptocurrency wallet as of August, earned from NFT sales.
The Web3 gaming sector has seen significant investment, with over $2.3 billion poured into projects in 2023, according to on-chain data tracker DappRadar. Despite a crypto market correction, Web3 gaming remains resilient, focusing on real value and sustainable gameplay models. The relative calmness in the crypto industry has allowed companies to build with a long-term perspective, driving investor interest. The dominance of games like Axie Infinity raises concerns about market diversity, but experts predict a more balanced ecosystem as trends shift and new games emerge. The play-to-earn (P2E) model, once dominant, is evolving, with a focus on varied gaming experiences and improved gameplay rather than excessive emphasis on earnings. The industry anticipates continued growth, even during a potential crypto bull run, with sustained interest driven by blockchain technology's integration into traditional gaming and the potential for unique and engaging user experiences.
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Scams and Hacks
Crypto hacking incidents in 2023 have significantly decreased to around $1.7 billion, contrasting with the $4 billion reported in October 2022. Increased security measures within the industry are believed to have contributed to this decline. Notable incidents in 2022, such as the Axie Infinity Ronin bridge exploit and the Mango Markets hack, led to losses totaling $3 billion by October. Despite the potential for some December hacks, the overall figures for 2023 are expected to be lower. Governments' heightened scrutiny and regulatory efforts aim to establish robust frameworks to safeguard crypto investors, as seen in Kenya's proposed bill for digital asset taxation and Spain aligning its rules with EU regulations.
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Interesting Reads
Binance Smart Chain (BSC) achieved a new industry record by processing 32 million transactions in a single day, surpassing its previous all-time high. This milestone, observed between 2:00 am and 5:30 am UTC, showcased the chain's resilience and capability during a real-time stress test. Despite the increased activity, gas fees on BSC remained stable. Users encountered issues with BSCScan due to elevated loads on RPC and indexing services, impacting data synchronization. BSC has committed to resolving the issue promptly and has implemented measures to enhance the chain's functionality. The block size has been increased from 140 million to 200 million to accommodate future transaction volumes. Binance Coin (BNB) saw a 7.06% price increase in the last 24 hours, reaching $250.06.
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Miscellaneous
A change to the structure of proposed spot bitcoin ETFs would enable authorized participants (APs) to create new shares in the fund with cash, rather than only with cryptocurrency, essentially opening the door to banks who cannot hold crypto directly.
The KuCoin crypto exchange is set to shutter its operations in the ‘Big Apple’ following an agreement with the Supreme Court of the State of New York County. Besides restricting access to its platform for New York residents, KuCoin has agreed to pay a $5.3 million fine to the Attorney General’s Office of the county to settle charges brought against it.
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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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