OKX Secures Crypto License in Dubai

Audy Castañeda
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OKX Secures Crypto License in Dubai

OKX cements Middle East Presence by securing a crypto license in Dubai.

The Dubai-based subsidiary of cryptocurrency exchange OKX, named OKX Middle East Fintech FZE, announced today (Tuesday) that it has received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Asset Regulatory Authority (VARA), allowing the company to offer virtual asset exchange services.

The newly obtained license would allow the global crypto exchange to offer spot and spot pair services to institutional and qualified retail clients in the Middle East. However, the newly obtained license will remain non-operational as the company needs to “fully satisfy all remaining conditions and select localization requirements,” which is expected to be concluded in the coming weeks.

The operating license came months after VARA granted OKX’s Dubai subsidiary a preparatory license.

“The MENA region has immense potential to become a center of excellence for Web3 and virtual assets. We eagerly anticipate the opportunity to further enhance the already thriving ecosystem across the region,” said Rifad Mahasneh, General Manager for the MENA Region of OKX.

Mahasneh praised VARA’s license application process, explaining that it was facilitated efficiently. According to the executive, the regulator demonstrated its effectiveness in regulating the local virtual asset sector.

The executive also believes that the collaboration between his company and VARA highlights the importance of well-defined regulations when promoting “responsible” growth within the cryptocurrency space.

Today, OKX CMO @Haider posted the following on X:

“We have been granted the (VASP) license to prepare operations in Dubai. We will be opening up our spot markets w/ local currency pairs in the coming weeks. These services will be soon available to qualified investors and institutional clients.”

A Bit of Context

Once the VASP license is operational, it will allow OKX Middle East to offer regulated VASP services, including “spot and fiat trading services, deposits and withdrawals in AED and spot trading pairs.” The executive explained that the services will be available for retail and institutional users.

In March 2022, Sheikh Mohammed bin Rashid Al Maktoum, Prime Minister and Ruler of Dubai, passed the Virtual Assets Law, establishing a legal framework for cryptocurrencies in Dubai. In addition, the ruler of Dubai also appointed VARA with enforcement powers in its special development zones and free zones, except for the Dubai International Financial Center (DIFC).

Dubai’s Bet on Crypto Companies

Dubai, one of the emirates of the United Arab Emirates known for its encouraging service-based businesses, simplified crypto rules with a framework last year and established a separate regulatory body, VARA, to oversee the sector.

Dubai’s decision to boost regulation of the cryptocurrency industry also encouraged many big and small names to establish their presence in the city. Crypto.com, Ripple, Binance and Bybit are just some of the names that can obtain crypto licenses from the Dubai regulator.

“This license was a crucial step for OKX as we move from a trust-based system to a trustless system that allows users to take control of their financial future,” said Tim Byun, global head of government relations at OKX. “Dubai is an important market for us and we are excited to build strong relationships with our users and contribute to the development of their crypto and Web3 ecosystem.”

Global cryptocurrency companies, including Coinbase, have been scrambling to explore the United Arab Emirates as a potential new market at a time when U.S. regulators and lawmakers are cracking down on digital assets.

By Audy Castaneda

Circle Co-Founder and CEO Jeremy Allaire on Stablecoin Regulation

Leonardo Perez
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Circle Co-Founder and CEO Jeremy Allaire on Stablecoin Regulation

“There is a very good chance” that the US will pass stablecoin laws this year, says Circle CEO

On January 15, 2024, Jeremy Allaire, CEO of Circle, best known as the issuer of the fiat-backed stablecoin USD Coin (USDC), spoke with CNBC at the World Economic Forum in Davos, Switzerland.

Allaire said that regulatory developments around the cryptocurrency industry were picking up around the world, and that the United States was more likely than before to pass laws for stablecoins.

Stablecoins and Blockchain technology

Allaire began by addressing progress in blockchain technology, comparing it to the post-dotcom era where, despite market fluctuations, technological development continued strongly. He emphasized that stablecoins remain the “killer app” of blockchain technology, and their use is expanding globally.

Allaire sees 2024 as a crucial year for blockchain, especially with regulatory clarity and developments like the spot ETF, which he believes will further open up the market.

Bitcoin ETF Impact on USDC

When asked about the potential impact of the new Bitcoin spot ETF on USDC (Circle’s stablecoin), Allaire expressed confidence that growing participation in the digital asset market would drive greater demand for digital dollars in Internet. He sees the growing market and participation as a positive tide lifting all boats, including USDC.

Circle IPO and Regulatory Filings

Regarding Circle’s IPO, Allaire declined to comment on specific regulatory filings but reiterated the company’s commitment to becoming a trustworthy, transparent and well-regulated public company. He highlighted that Circle’s move toward an IPO aligns with its long-term vision for regulatory compliance and transparency.

Global Regulatory Progress and US Stablecoin Legislation

Allaire analyzed the global regulatory landscape, highlighting significant developments in Congress, courts and regulators around the world. He anticipates that stablecoin legislation will be enacted in almost all major global financial markets in 2024. He believes this context favors growth in the stablecoin sector.

Technological Progress and Market Cycles

Allaire, as a technologist, focused on lasting technical innovations in blockchain technology. He emphasized that these innovations are compounding and surpassing previous technological advances. Allaire believes that regardless of the current interest rate or inflationary environment, technological progress in blockchain will continue unabated.

Perspectives on US Stablecoin Regulation

Allaire expressed optimism about the chances of stablecoin regulation in the US in 2024. He noted a strong desire from the administration, Treasury, Federal Reserve and bipartisan support in Congress to regulate digital dollars. Allaire believes that US leadership in this area is crucial, especially since other countries are already regulating digital currencies.

“Digital dollars are existing around the world; other governments are regulating digital dollar currencies before the United States. That’s why I think there is a very strong desire to act and affirm American leadership and get the right consumer protections,” Allaire added.

Dante Disparte, Circle’s chief strategy officer and global head of public policy, echoed Allaire’s view that 2024 would be the year the United States sees the entry of rules for stablecoins.

“I remain optimistic that stablecoin payments policy is a possibility at the beginning of the new year. And that’s increasingly a bipartisan reality, to a large extent,” Disparte told CNBC’s Mackenzie Sigalos.

Industry Challenges and Regulation

Reflecting on the industry’s challenges, including high-profile deals and collapses in 2022, Allaire acknowledged that parts of the industry remain unregulated globally. However, he predicts that 2024 will be a year of regulatory advances in many jurisdictions, leading to a clearer, regulated market structure. This change, according to Allaire, will reinforce confidence in the cryptocurrency space.

By Leonardo Perez

Cryptocurrency Research Firm Says “Sell All Your Cardano (ADA)”

Audy Castañeda
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Cryptocurrency Research Firm Says “Sell All Your Cardano (ADA)”

The report bluntly advises investors to get rid of Cardano, citing the lack of meaningful usage of its native token, ADA.

K33 Research, a prominent organization in the cryptocurrency research sector, published a scathing report on Cardano (ADA), sparking widespread discussion in the crypto community.

In a detailed examination, K33 Research claims that the Cardano network suffers from a significant lack of practical application, which is essential to the inherent value of its native token. The report states that “A smart contract network needs meaningful usage for its native token to have any value. The Cardano network, however, has no meaningful use or credible avenue to achieve this.”

Sell ​​All ADA Now?

Addressing the counterargument often put forward by Cardano supporters regarding the network’s daily transactions averaging around 90,000, the report argues that these do not amount to significant blockchain activity. The report further details: “There is nothing more happening on the Cardano Network than exchange transfers and a group of exchange holders manufacturing blockchain activity.”

K33 Research highlights the absence of external evidence supporting any significant activity on the Cardano network, comparing it to other protocols where actual activity is corroborated by external evidence. The research company calls this lack of external validation “proof by contradiction.”

One of the most telling indicators of inactivity, according to the report, is the situation of stablecoins on the Cardano network. K33 Research notes that the absence of major stablecoins like USDT and USDC on Cardano is a clear indicator that no significant decentralized finance (DeFi) activities are taking place. The only stablecoins present are reportedly collateralized by Cardano and valued at 76 cents on the dollar, which is referred to as “another word for nothing.”

Future Prospects for Cardano

K33 Research is pessimistic about the future of Cardano and draws parallels with other blockchain projects that started without traction and then became irrelevant. The report notes that successful blockchains evolve over time, while “creationist, big-idea, subsidized-startup, no-real-use blockchains” eventually lose their luster. He cites examples like IOTA, NEO and EOS to illustrate this pattern.

Despite Cardano’s current market valuation of $19 billion, K33 Research attributes this to its availability on several exchanges and its appeal to new cryptocurrency investors. The report criticizes the narrative surrounding Cardano, describing it as “scientific nonsense” that could mislead newcomers.

“Ada is a well-established coin that can be traded ‘everywhere’, also on smaller local exchanges, making it one of the coins to be ‘pushed’ to aspiring cryptocurrency investors. Cardano also has an attractive story for newcomers, as Cardano is branded as ‘the blockchain network powered by peer-reviewed research,’” the report mentions.

However, K33 Research foresees a decline in this attractiveness and predicts that the number of new investors attracted to Cardano will decrease. Additionally, K33 Research casts doubt on ADA’s long-term viability, citing a lack of rebound in its price compared to other strong smart contract tokens during recent market rallies.

K33 Research claims that the market does not quickly eliminate such coins, but rather “bleeds” them over time. The report concludes: “Things never happen overnight and these processes often take years to fully develop. Still, all price signals also point to Ada gradually disappearing from the crypto map.”

According to CryptoPredictions, ADA price for today (16.01.2024) is forecast to be in the price range of $0.45177172856339 – $0.6643701890638. Cardano price is forecast to end at $0.53149615125104 today.

By Audy Castaneda

Market Experts Share Their Bitcoin Predictions

Leonardo Perez
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Market Experts Share Their Bitcoin Predictions

Bitcoin (BTC) has become the focus of investment discussions in the traditional and cryptocurrency markets. Speculation is rife after the US Securities and Exchange Commission (SEC) recently approved several Bitcoin spot ETFs.

Industry leaders are trying to chart the price trajectory of BTC, with predictions ranging from $100,000 to a staggering $1.5 million. The largest cryptocurrency’s spot ETF approvals are a major milestone and offer a more mainstream investment avenue for cryptocurrency. It could potentially broaden Bitcoin’s investor base, especially among institutions.

Despite Bitcoin’s lukewarm response following its approval, trading below $45,000, the general sentiment among experts and investors points to an optimistic future.

Experts Reveal Bitcoin Price Prediction

Anthony Scaramucci, CEO of SkyBridge Capital, highlighted the approval of the ETF as a “huge step forward for Bitcoin.” He projected a price increase of $100,000 in one year. His comparison of Bitcoin’s ETF approval to the 2004 green light of the first gold spot ETF provides historical perspective, suggesting potential long-term value growth.

However, Scaramucci’s cautious tone, acknowledging past prediction errors, reflects the volatile and unpredictable nature of cryptocurrency markets.

“I think Bitcoin will probably reach its all-time high by the end of the year, and it will probably surpass its all-time high by the end of the year…Bitcoin could reach $100,000, which is more or a little more than double in the next year? I believe that… But I have been wronged many times before.”

ETF and Bitcoin Halving

The impending Bitcoin halving in 2024, an event inherent to the code that reduces miners’ rewards and limits supply, further fuels the optimistic projections.

MicroStrategy CEO Michael Saylor said Bitcoin could suffer a “supply shock” as the halving will significantly reduce the amount of BTC available for sale by miners.

For this reason, experts such as Tim Draper, founder of Draper Associates, see this as a catalyst for rising prices, with Draper speculating a valuation of $250,000 by July.

“Halving, the increased use of a currency that is decentralized, trustworthy, global, [and that] stores value from anywhere, are factors supporting Bitcoin right now.”

Adding in the chorus, Tom Lee of Fundstrat Global Advisors predicted a short-term rise to $150,000, with a long-term potential of $500,000. He emphasized the finite supply of Bitcoin and the expected increase in demand following the approval of the Bitcoin ETF as key factors.

Bitcoin worth $1.5 Million Could Be in the Works

Ark Invest CEO Cathie Wood laid out an even more ambitious vision. In her “base case,” she predicts Bitcoin will reach $600,000.

However, in her “bullish case,” she believes Bitcoin could advance to $1.5 million by 2030, fueled by significant institutional investment following SEC approval. Wood’s focus on institutional investments following SEC approval suggests a potential shift in the landscape of Bitcoin ownership and utilization.

These optimistic predictions are rooted in Bitcoin’s unique attributes: a finite supply similar to digital gold and immunity to external economic and geopolitical influences. Its growing acceptance, adoption and technological advancements further solidify its position as a leading investment asset.

However, it is essential to approach these predictions with caution. Bitcoin’s past performance, while impressive, has been marked by volatility and correlation with stock markets, especially high-tech indices. This, coupled with regulatory uncertainty and the complex nature of cryptocurrency markets, can make investing in Bitcoin a high-risk endeavor.

By Leonardo Perez

Nike Dives into the World of Video Games with Virtual Wearables, and other News

Audy Castañeda
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0
Nike Dives into the World of Video Games with Virtual Wearables, and other News

Nike is diving deeper into the world of video games with the launch of a new line of virtual products: “Nike In-Game Wearables.”

Nike’s blockchain and digital devices division, known as. Swoosh, announced its deeper foray into the video game space next year. However, the extent of his future gaming activities is still unclear. Nor has it been confirmed if they will include NFTs.

In a blog post, Nike’s .Swoosh expressed its philosophy on the value of virtual products, highlighting that it should be based on enjoyment when expressing oneself or unlocking access to physical products. The brand emphasized the idea of ​​the joy of collecting and being a true fan, beyond simply transacting.

Google Play Store Removes Binance and OKX Apps in India

Google’s Play Store in India removed crypto exchange apps Binance and OKX after the government issued a non-compliance notice against them. This action follows a similar decision made by Apple’s App Store in India in December 2023.

Even though Google Play Store blocked Binance and OKX apps. Both platforms are still available through their websites and work for existing users.

In response to the block, Binance South Asia posted on X that “existing app users will not be impacted. We will continue to work with regulators to resolve the situation and will share updates here. Rest assured that your funds are SAFU.”

African Developers Face Regulatory and Educational Barriers in the Web3 Era

In the vibrant world of blockchain and Web3 technology, African developers face significant challenges that hinder their progress. Jathin Jagannath, a committed advocate for the developers of Cartesi, a Web3 rollup protocol, has noted that regulatory uncertainty is one of the biggest hurdles in the African Web3 landscape.

According to a recent report by PricewaterhouseCoopers and Emurgo Africa on Web3 in Africa, blockchain financing on the continent saw a staggering 1,668% increase in 2022, with Kenya, Nigeria and South Africa leading Web3 adoption.

Taking a closer look at the educational challenges, Awosika Israel Ayodeji, Program Director at Web3bridge, highlighted the lack of education. As well as the accessibility of knowledge for African developers.

SEC Addresses X Account Hack

The Securities and Exchange Commission (SEC) issued a statement to address the recent security incident that resulted in a false announcement of approval of a Bitcoin ETF in the SEC’s X account. According to the statement, the agency is currently evaluating the impacts of this incident on the agency, investors and the market, without making explicit mention of multi-factor authentication.

In the statement, attributed to SEC Chairman Gary Gensler, it is mentioned that an unauthorized party gained access to the @SECGov account by taking control of the phone number associated with the account. This method is reminiscent of SIM swapping attacks, a common form of X account hijacking that can be prevented by implementing multi-factor authentication, a measure that Gensler had previously recommended in his posts.

Gensler expressed that Commission staff is working with law enforcement to investigate the incident further, and acknowledged that the effects include concerns about the security of the SEC’s social media accounts. The statement does not offer additional details about future measures the SEC could implement to strengthen the security of its online accounts.

The SEC is collaborating with law enforcement and security agencies on the investigation, including the U.S. Federal Bureau of Investigation and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, among others.

By Audy Castaneda

Buckle up! Market Expert Predicts Bitcoin Could Hit $1 Million ‘Within Days or Weeks’

Leonardo Perez
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0
Buckle up! Market Expert Predicts Bitcoin Could Hit $1 Million ‘Within Days or Weeks’

This innovative development not only provides investors with a regulated means of owning Bitcoin, but also eliminates the complexities associated with directly holding the digital asset.

The recent launch of the long-awaited Bitcoin spot ETF has sent shockwaves through the financial world, heralding a significant moment for the world’s leading cryptocurrency.

The market response to this news has been overwhelmingly positive, fueling a wave of optimism that has led some experts, including Samson Mow, founder of investment firm Jan3, to make bold predictions.

Mow’s “Max Pain Theory” speculates that Bitcoin could reach a price of $1 million within days or weeks. The basis of Mow’s bold forecast lies in the belief that holders of high-value BTC could strategically orchestrate a temporary liquidation. This tactical move would drive the price to such a tantalizingly low level that institutional giants like BlackRock and Fidelity would find it irresistible to enter the market.

According to Mow, the recent drop in Bitcoin price may be simple “selling the news” before the real rise begins, highlighting the intricate strategies at play in the cryptocurrency market.

However, skeptics remain cautious and recognize the significant boost in legitimacy and accessibility that the ETF offers, while noting Bitcoin’s well-documented volatility and the potential for unforeseen regulatory hurdles.

“Max Pain Theory” Explained

The Max Pain theory consists of the following: “The market will tend to close on the expiration date at a point very close to the strike price at which most option holders (buyers) lose money.”

Max Pain is usually represented with a graph expressing the accumulated profit of call and put buyers assuming that the market ends up pinned at that exercise or strike price.

Samson Mow’s bold BTC price forecast is based on this theory. In his view, holders of high-value Bitcoin could trigger a temporary liquidation that would make the price incredibly low for institutional investors.

However, it should be noted that the Max Pain Theory is only one perspective among many in understanding market dynamics, and the cryptocurrency market remains unpredictable and influenced by several factors.

BTC Price Feels the Pressure

The recent withdrawal of shares from the Grayscale Bitcoin Trust (GBTC), a separate investment vehicle that reflects the coin’s performance, has been cited as a contributing factor to the price drop. This serves as a reminder that, in the complex space of cryptocurrencies, factors beyond ETFs can exert substantial influence.

Despite reservations expressed by some, the prevailing sentiment leans toward optimism. The ETF’s strong debut, coupled with the prospect of substantial inflows from institutional heavyweights, paints a compelling picture of further widespread adoption.

Proponents argue that this new accessibility, combined with Bitcoin’s inherent scarcity, could propel the cryptocurrency to new heights in the medium and long term.

Crypto Community Awaits Price Boom

It remains uncertain whether the royal currency will reach the million-dollar milestone in a matter of days or years. However, the launch of the spot ETF has undoubtedly accelerated the Bitcoin game.

With institutional players eagerly entering the scene and the price flirting with new highs, the next chapter in the Bitcoin saga promises to be exciting and capture the attention of investors and enthusiasts alike.

Bitcoin has lost 3.2% of its value in the last 24 hours, according to data from Coingecko, and is currently trading at $42,800. The market capitalization of the leading cryptocurrency has fallen to $841 billion from a recent high of $850 billion.

By Leonardo Perez

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