Binance CEO CZ Denies Any Link to Mysterious Company CommEX

Leonardo Perez
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Binance CEO CZ Denies Any Link to Mysterious Company CommEX

CZ confirmed that Binance encouraged CommEX to have a similar design and technical features as Binance.

Binance is the world leader in cryptocurrencies, a sector that has recently gone through a series of scandals, including hacks, thefts and stock market crashes. It could be under investigation by US authorities. According to a report by the Bloomberg agency last May, Binance was suspected of having allowed Russian people to evade US sanctions imposed against Moscow after the invasion of Ukraine.

Changpeng Zhao (CZ) has denied claims that he may be the owner of CommEX, a company whose identity continues to raise suspicions. CZ issued the disclaimer on Thursday in line with growing speculation about the ownership of the mysterious company.

Earlier this week, CZ announced that Binance would leave Russia. In the announcement, he stated that the decision has to do with an ongoing investigation of the company by the United States Department of Justice that alleges that it may have violated sanctions.

“We acknowledge that operating in Russia is not compatible with Binance’s compliance strategy,” company spokesperson Noah Perlman was quoted as saying in a recent statement.

Meanwhile, on the same day, reports also emerged that CommEX had purchased Binance’s business in Russia. However, CommEX has little to no trading history. In fact, the company appears to be only a few days old, and even more so, it still looks a lot like Binance.

CZ’s Explanation

In a bid to put an end to all speculation about having affiliations with CommEX, CZ has now taken to X (formerly Twitter) to exempt itself from such ties. His statement reads as follows:

“Some answers about Binance/CommEx.

There will be crypto transfers between Binance & CommEx as users migrate with their funds. There are also older transactions during the testing phase of the integrations. This is expected.

A few ex-Binance CIS team members may join their team, or have already done so. We think that is a good thing.

Their design, APIs, etc. are similar to Binance. We asked for this to ensure a smooth user experience.

CommEx does not service US or EU users. They have IP and KYC blocks. This is a term we asked for in the deal.

I am not their UBO, nor do I own any shares there. The deal does not have any buy back options. (A google search seem to show some businesses like Mercedes, McDonalds, Nissan have buy-back options in their Russia sell off deal. This is not the case here.)”

Meanwhile, CZ attempted to dissuade any further rumors that might arise from CommEX’s recruitment pattern. He hinted that some former Binance employees in the region have already joined the company. Zhao also shared that there is a possibility that many more employees in the region will do the same in the future.

Similarity Between Binance and CommEX, According to Changpeng Zhao

According to Zhao, the similarity in the perspectives of both companies was well thought out in the times before the transition. CZ confirmed that Binance encouraged CommEX to have a similar design and technical features as Binance. However, this is only to ensure a smooth transition, the CEO added.

Interestingly, Binance has confirmed that there will be no revenue split between the companies. Binance also states that there is no option to buy back shares of the new company.

The abovementioned therefore implies a “total” exit from Russia, with the transition expected to be completed within a few months.

By Leonardo Pérez

Lawmakers Push Gary Gensler to Approve Bitcoin Spot ETF

Audy Castañeda
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Lawmakers Push Gary Gensler to Approve Bitcoin Spot ETF

This week, US lawmakers increased pressure on the SEC chairman to approve a spot Bitcoin ETF.

Earlier this week, the US House of Representatives Financial Services Committee increased pressure on regulators. In a letter, lawmakers asked Securities and Exchange Commission (SEC) Chairman Gary Gensler to approve a Bitcoin spot ETF.

For this group of four legislators, there are no compelling reasons to deny approval of exchange-traded funds to several companies. In the letter they express that there are no major differences between futures and spot funds, which should be sufficient reason for approval.

Last year, the regulatory agency approved several Bitcoin futures funds. However, it maintains a strong negative on cash funds and assures that it does so to protect investors. For lawmakers, the SEC’s arguments are meaningless.

Bitcoin Spot ETF Should Be Approved Without Delays

The aforementioned letter maintains that the agency’s position to delay approval is unsustainable. They base the latter on the recent decision of an appeals court in the Grayscale case, which was forceful against the SEC, according to which, Judge Neomi Rao backed Grayscale’s stance by stating that its proposed Bitcoin ETF was “materially similar” to Bitcoin futures products that have already obtained SEC approval to operate on the markets.

Baded on the above, the refusal to approve a spot Bitcoin ETF does not have legal support.

“There is no reason to continue denying such requests under inconsistent and discriminatory standards,” says the letter from the representatives of both parties.

More than a dozen applications for these instruments have been on the shelves of the SEC for a few years. The legislators’ letter to the agency was defiantly responded to with a new postponement of Ark Invest’s application.

Following the court’s decision, the agency appears to have no intention of obeying the mandate. Grayscale itself complained and asked those led by Gary Gensler to rush its approval. In this way, they explain that this slowness negatively affects investors at an ideal time in the cryptocurrency market to invest.

Some analysts consider that it is a matter of time before the agency proceeds to approve a Bitcoin spot ETF. However, the agency remains firm in its position.

A Cash Fund Would Allow Greater Security for Investors

Contrary to the SEC’s arguments, the legislators’ letter considers that a larger cryptocurrency ETP provides security to the market. In that sense, people could invest in Bitcoin without the need to go to unregulated market actors, but through stock funds from licensed companies.

“A regulated spot Bitcoin ETP would provide greater protection to investors by making access to bitcoin more secure and transparent. Congress has a duty to ensure that the SEC approves investment products that meet requirements set by Congress “, specifies the letter.

This new struggle becomes further proof of the need for clear rules for the crypto sector in the United States. Since 2017, with the ICO fever, the SEC has had a smear campaign against the virtual currency market. However, it was 2023 that the attacks began with greater force. In June, the agency attacked two of the largest exchanges, Binance and Coinbase.

The position of refusing to approve a spot Bitcoin ETF is another of the actions destined to hurt the sector. Regulators also have open cases against companies of all types and even against media outlets that promote NFTs.

By Audy Castaneda

World Economic Forum: Within Five Years, only 9% of Payments Will Be Physical

Leonardo Perez
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World Economic Forum: Within Five Years, only 9% of Payments Will Be Physical

According to the World Economic Forum, by 2028, only 9% of all transactions will be made with physical money. Since 2017, the use of cash has decreased by approximately 15% each year, mostly due to sociological aspects. In this perspective, CBDCs would be more of a prototype and even a warning rather than a project destined to succeed.

The forecasts for cash are not very encouraging. According to the World Economic Forum (WEF), by 2028, only 9% of all transactions will be made with physical money.

This eye-opening outlook raises an important question: Will we miss cash? Beyond the dilemma of cryptocurrencies about how many and which will survive the next five years, and whether its adoption expands or is squandered, the truth is that advances in digital payments do not seem to stop either.

Added to these two alternatives, with pressure and controversy, is the CBDC proposal.

World Economic Forum: By 2028, 1 in 10 Transactions Will Be with Physical Payments

Will cash registers disappear? According to an article published by the World Economic Forum, it suggests that it is likely.

However, beyond digital payment opportunities such as those of Visa and Mastercard, and the development of cryptocurrencies such as Bitcoin, Ethereum and Polkadot, the WEF attributes the gradual elimination of cash to the advance and possible acceptance of CBDCs in capitalist societies.

According to the thesis presented at the World Economic Forum, the development of CBDCs is accelerating. However, skeptics question the need to replace cash. While current electronic payment systems work well, they do not offer the same personal freedom as cash.

The Importance of Physical Money in the 21st Century and the Rise of CBDCs

Cash is the only payment mechanism that does not require anyone’s authorization to spend it, and it’s the only form of money that doesn’t leave a trace. Opting for a form of money like the CBDC would necessarily bring new challenges in the governance of the massive data that would be created.

Even under the naive assumption that a government or state derivative had no intention of monitoring said information, the truth is that this information would have been created unnecessarily, bringing with it unwelcome vulnerability, as well as the costs of managing and protecting said information.

Since 2017, cash usage has decreased by approximately 15% each year. Furthermore, it is estimated that by 2028, only 9% of all transactions will be made in physical cash. The direction is clear: cash will not disappear in a single explosive moment. However, its irrelevance is assured as a result of the individual decisions of millions of citizens and merchants.

This fact dissipates the arrogance that some regulators could fall into, when stating what is “right” or “wrong.” The decline in popularity of cash would therefore be due to a process of evolution of societies, rather than a simple whim of debate in congress.

The real debate about CBDCs would then move to the role of provider: the Central Bank or the private sector?

“A digital cash substitute is the essential product that citizens will demand once physical cash disappears. The private sector knows how to create attractive consumer products and is willing to help. However, the uniquely complicated regulatory properties of cash mean that only a central bank could actually deliver it.”

By Leonardo Pérez

Bitcoin on September 28: $25,000 in Sight for BTC?

Audy Castañeda
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Bitcoin on September 28: $25,000 in Sight for BTC?

Will BTC price experience a new drop towards $25,000?

Altcoins have been low profile for several months, and this is also the case with PEPE. This altcoin, which is part of the memecoin sector, has fallen 85% since its inclusion on the Binance platform. For its part, the price of Bitcoin attempted to rise again, but the sellers showed up at the $26,700 resistance level. While liquidity has approached $27,000, more is forming a little lower.

After bouncing around $26,700, Bitcoin finally plateaus above $26,000. The price of Bitcoin stagnates in 24 hours and shows a drop of 3.5% in a week. In three months, the course shows a drop of more than 13%. At the same time, the BTC/ETH pair stagnated for a week but shows an increase of 4.4% in a month.

Liquidity is Below $26,000 for Bitcoin

Yesterday buyers managed to raise the price to $27,000. Thus, the existing liquidity was taken and the sellers saw their positions liquidated. According to data from the Coinglass website, the large cash reserves are below $26,000.

If sellers continue to push, the market could recoup this cash. A fence below $26,000 daily would generate bearish momentum. The price could then return to the lowest level, marked on September 11 at $24,900. What are the key levels in the short term?

Bitcoin Price Stalled at the $26,700 Resistance Level

The course has recovered the liquidity that was below $27,000. The price locked to the resistance level at $26,700 in 4 hours.

BTC is stuck between resistance at $26,700 and support at $26,000. A hurdle above the last high marked at $26,870 would allow the price to return to the resistance level at $27,300.

On the other hand, a fence below the latest low at $25,990 could trigger a drop towards the support at $25,000. The RSI once again shows bullish momentum. Buyers benefit from the momentum.

Bitcoin price has returned near $27,000. The market has recovered almost all of the liquidity present up to $27,000. There is a lot of liquidity below $26,000 and the market could go after it. A break of the $26,000 support could push the price back towards the $25,000 support level. Buyers also defend support for the Oceanic Protocol (OCEAN). Can the course be restarted?

Bitcoin Enters the “Positive Seasonality” Phase

Financial commentator Tedtalksmacro was bullish on Bitcoin for the rest of 2023. “Bitcoin is entering a period of positive seasonality,” he argued.

Noting that October is traditionally a lucrative month for BTC hodlers, Tedtalksmacro noted that 2022 had marked an exception thanks to US benchmark interest rates. “However, for BTC, this is an unprecedented environment,” he continued.

“Before 2022, BTC had never existed in a world with rates much higher than 2%… while now at the end of 2023, the Fed Funds rate is above 5% and will likely stay there for much longer.” while the world’s central banks try to maintain control over inflation.”

Bitcoin is reported to be tipped for a return later in the year as its next block subsidy halving approaches.

BTC September 28 Update

Bitcoin (BTC) is trading today, September 28, at US$26,496.29, according to the Live Coin Watch portal. This price positions it 101% compared to its value 24 hours ago and 98% compared to the same day last week. The token’s current dominance (market capitalization) is US$516,625,216,024

By Audy Castaneda

MoneyGram Crypto Wallet Will Serve for Cross-Border Payments

Leonardo Perez
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MoneyGram Crypto Wallet Will Serve for Cross-Border Payments

Money transfer firm MoneyGram announced the launch of a non-custodial crypto wallet for cross-border remittances.

The money transfer firm, MoneyGram, announced the launch of its own crypto wallet to improve its business efficiency. One of the most striking characteristics of the initiative is that it is a non-custodial wallet. The portfolio is developed in partnership with Stellar Development Foundation.

Among the main functions of the address is to allow users to convert cryptocurrencies into fiat money when transferring. As reported by the firm, the portfolio will be officially launched during the first quarter of 2024.

This step is a fundamental one that recognizes the advantages of blockchain technology over previous cross-border shipping mechanisms. It is to be hoped that other similar companies will soon undertake similar initiatives that will allow them to attract more users. Commerce through the blockchain is faster and cheaper.

MoneyGram Crypto Wallet Will Be Self-Custody

The biggest advantage of the wallet, apart from the economy and speed of transactions, is its self-custodied nature. This means that users manage their own money directly with the network without the company having anything to do with it.

Simply put, the firm has no control over user funds, which nullifies the possibility of losses due to possible bankruptcy. In this way, from anywhere in the world, merchants will be able to exchange through this new wallet from the payment company.

On the other hand, it was learned that the company will apply compliance control with all users of its platform. Consequently, the wallet, despite allowing greater autonomy and security, will not be completely supportive of people’s financial privacy.

“Our vision of connecting the world’s communities by empowering our clients through innovative financial solutions takes a new step today,” said the firm’s CEO, Alex Holmes. He added that the wallet takes the company’s mission one step further.

MoneyGram’s crypto wallet will be fee-free during the first half of 2024. Stellar’s blockchain technology will be combined with the payments company’s fiat on- and off-ramps.

The Portfolio Will Continue its Evolution Process

A positive element of this initiative is that it does not intend to remain ossified once it is launched for users. Contrary to this, the company says that, from day one, they will begin the process of adding new features to the wallet. However, the firm did not offer further details of what these new functions could be.

In any case, this is not MoneyGram’s first initiative in the world of digital currencies. In that sense, it is notable that this year (June) the company launched a program that involves USDC, Circle’s stable currency, which allows withdrawals in crypto.

Likewise, in November 2022, the firm gave the green light to customers to be able to buy cryptocurrencies directly from its platform. In this way, the crypto wallet represents a consolidation of MoneyGram’s new strategy to open up to new technology.

As expected, this initiative marks a stimulus for other companies in the same sector to take similar actions. It should not be lost sight of that blockchain technology stands as a powerful tool to reduce costs. The big obstacle for many companies when adopting it is the fact that it is a very new technology.

By Leonardo Pérez

An Internal Leak Gives Clues to Next Week’s Debut

Audy Castañeda
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0
An Internal Leak Gives Clues to Next Week’s Debut

Ethereum futures exchange-traded funds (ETFs) could begin trading for the first time in the United States as soon as next week, according to Bloomberg analysts.

The US Securities and Exchange Commission (SEC) is reportedly accelerating the launch of Ethereum futures exchange-traded funds (ETFs), with a possible trading debut as soon as next week. This comes amid growing anticipation of a possible US government shutdown.

First Ethereum Futures ETF Could Launch on Monday

Bloomberg ETF analyst Eric Balchunas provided important information on this development in a post on X:

“UPDATE: Hearing the SEC wants to accelerate the launch of Ether futures ETFs (bc they want it off their plate bf shutdown) so they’ve asked the filers to update their docs by Fri pm (no small task to jam into 48hrs, esp for indie issuers), so they can go eff Mon and trade Tue.”

His colleague, Bloomberg Intelligence analyst James Seyffart, confirmed the sentiment, noting that “it looks like the SEC is going to potentially let go of a bunch of Ethereum futures ETFs next week.” Although a recent Bloomberg report had posited that Ethereum futures ETFs had a 90% chance of launching in October, these latest updates appear to reinforce the immediate timeline.

According to the previous forecast, the Valkyrie Bitcoin Futures ETF (BTF) was going to be the first to add Ethereum exposure on October 3, with a strategy change that will see the inclusion starting October 4.

Volatility Shares, another issuer, was anticipated to be the first to exclusively offer exposure to Ethereum futures, which is expected to go into effect on October 11, facilitating an October 12 launch. Due to the impending US government shutdown, launch approvals from the SEC could already be moved up to next week.

However, as Bloomberg notes, of the 15 Ethereum futures ETFs filed by nine issuers, not all are expected to receive the green light. Notable issuers in the queue include VanEck, ProShares, Grayscale, Volatility Shares, Bitwise, Direxion and Roundhill.

Implications of the Decision

Scott Johnsson, financial attorney at Davis Polk, commented on the SEC’s last-minute approach: “I want everyone to realize that Gensler waited until now (giving issuers 48 hours) because he didn’t want to answer questions about this in the HFSC hearing today. You know, just functional agency stuff.”

Johnsson highlighted significant ramifications, including Gensler’s SEC implicit confirmation that CME ETH futures are not security futures, thus solidifying Ethereum’s status outside the realm of being a security. The move could lay the groundwork for spot-traded ETFs, as it would mean an approval that SEC Chairman Gensler will not withdraw Bitcoin futures approvals to prevent a spot ETF. Johnson had discussed this possibility in the past.

The impending US government shutdown, scheduled for 12:01 a.m. ET on October 1 if Congress does not finalize funding for a new fiscal year, threatens to disrupt the operations of all federal agencies, including financial regulators. This urgency appears to underscore the SEC’s pressure to speed up ETF approvals.

Although the possible introduction of Ethereum futures ETFs has stirred up the cryptosphere, it is crucial to note that the enthusiasm surrounding these instruments does not match the fervor seen for their spot counterparts. The United States already hosts Bitcoin futures ETFs since 2021. The ETH price was at $1,609, showing no reaction to the positive news so far.

By Audy Castaneda

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