Panama is on the FATF grey list for having deficiencies in stopping money laundering.

The Superintendency of Banks of Panama reported that the country plans to exit the list in 2022.

Panama has created an uncertain scenario in the bitcoin ecosystem after highlighting its attempt to leave the grey list of the International Financial Action Group, better known as FATF. In 2022 it will be three years since the country appears in this global list that registers the countries with deficiencies in the fight against money laundering.

Ana Raquel Velasco, the director of the SBP, revealed that due to a review that the FATF will do in January 2022, they hope to leave the grey list; something that raises concerns about the regulation of cryptocurrencies. The official stated that they have already managed to meet the parameters needed by the regulatory body, including on remittances.

According to Velasco, all the FATF highlights, particularly the exercise of illegal remittances that reside in the role of SBP, have already been qualified by the evaluator as long complied by Panama.

Velasco also notes that the country’s financial sector got already governed by frameworks that discourage money laundering and reflect a favorable outlook.

The director of the SBP explained that the challenge now is to apply the implementation and effectiveness of the frameworks approved in recent years to fight against money laundering. Panama entered the grey list back in 2019, and since then, it has remained there, although it had previously entered in 2014 and managed to leave in 2016.

The FATF commits the countries that it puts on its grey list to resolve identified strategic deficiencies as soon as possible while they are there. The countries in the grey list must also create advisories for entities to avoid trading. Its goal is to prevent illegal activities and damage to society by promoting the control of money laundering and the financing of terrorism.

Panama Continues in the Process to Regulate the Bitcoin Environment

The FATF evaluation would know if their laws to fight against money laundering are correct or if they will have to apply more control adjustments, which could have serious repercussions on the regulation of cryptocurrencies.

The FATF has set up strict parameters to regulate the bitcoin ecosystem recently. Two months ago, it revealed a guide with recommendations such as reducing peer-to-peer (P2P) transactions, viewing and controlling cryptocurrency operations, and censoring transfers to non-recommended accounts.

This guide got catalogued as a flawed method to regulate the sector by the research center in public policy with cryptocurrencies Coin Center. Different figures from the industry stated they sort many difficulties to comply with this guide.  ATH21, a law firm on crypto assets, said that achieving an application would require an overwhelming effort for the countries.

The FATF decision, in January, could consolidate operations with bitcoin and other digital assets in Panama. Meanwhile, the analysis of the bills on cryptocurrencies in the nation is still ongoing, although it has not yet released its status.

By: Jenson Nuñez

The Web3 concept appears to be the new target for venture capitalists. Jack Dorsey and others dismiss that Web3 can come to fruition.

Elon Musk boosted a discussion that caught the attention of a considerable part of the cryptocurrency ecosystem that interacts on the social network Twitter.

Joining Elon Musk in the discussion regarding the Web3 was Jack Dorsey, former CEO of Twitter and current CEO of Block, a company focused on bringing Bitcoin-based solutions. Dorsey was the protagonist of this day of discussions with his responses and comments about Web3.

Dorsey said users do not own the web3, Venture capital investors and their limited partners are. It is, finally, a centralized body with a different name.

In front of a user who showed concern about this recent conflict, Jack highlighted he was worried about seeing the technology industry get distracted by pretenses when they could all be working on things that have a chance to solve real problems.

The Web3 discussions brought out the constant rivalry between Bitcoin and altcoins

Although there are not many definitions of Web3, the project could focus on becoming a decentralized Internet network at all levels and aspects. This debate also highlights a technology like Ethereum, a protocol based on smart contracts, and a distributed ledger (blockchain).

Regarding the cryptocurrency ether (ETH), countless tokens and so-called decentralized applications (dApps) can meet their issuances in this network.

Regarding the origins of Ethereum, there was an initial sale offer for both private investors and the general public and pre-mined or early issuance of ethers (ETH) in favor of its founders before the public launch.

This situation goes in parallel with launching a company or an investment fund, this is a subject that got criticized by Bitcoin enthusiasts. Dorsey thinks the Web3 is the relaunch of the same concept that haunts the media and social media since the emergence of other alternative cryptocurrencies.

Chris Dixon, the general partner at the firm Andreessen Horowitz (a16z), invited Jack Dorsey to join at some point in building and developing Ethereum, noting that other blockchains might be necessary to do other things that Bitcoin cannot do. According to Dorsey, users must focus their efforts on embracing truly safe and resilient technologies, appropriated by the mass of people, not technologies led by individuals or institutions.

What is Web 3?

The premises are quite similar to those proposed by Bitcoin for the financial and monetary system Eliminate intermediaries and return property rights where they belong: The user.

The Web3 highlighted via the Foundation page that it intends to develop a set of technologies that interact and work with each other in a coordinated way to bring greater experience on a new network.

Despite the excitement that this concept of universal and generalist aspirations can generate, the experiences with Ethereum and other cryptocurrencies have more than one skeptical position about the concept of Web 3 and how much it could endure.

By: Jenson  Nuñez.

Decentralized exchange Uniswap has opted for Arbitrum’s optimistic rollups. ConsenSys and Mastercard prefer ZK rollups in their solutions intended for corporate clients.

The Ethereum network does not currently bring an optimal user experience due to its congestion, waiting times for confirmation of transactions, and the high fees for miners to operate.

This reason is why scalability solutions (for example, second layers or sidechains) take on relevance. These solutions are vital in a context in which dozens of decentralized finance protocols (DeFi), collectible token marketplaces (NFT), or play-to-earn games.

Among the second layer solutions in Ethereum, the rollups stand out due to the way they got developed and also their popularity. These rollups allow users to “wrap” various transactions and execute them outside the first chain. The transactions can be ether (ETH) shipments, tokens, or smart contract signatures.

By applying these solutions, there is no need to pay fees to the miners. Gas must only get paid when entering the rollup or when leaving (to settle the operations on the Ethereum blockchain) because that does imply a transaction in the mother chain. Two types of rollups compete for the vast fields of the market: ZK rollups and optimistics.

 Ethereum’s ZK and Optimistics Rollups

From the user’s perspective, both scalability solutions work the same way. They wrap transactions and open the doors to work outside the main Ethereum blockchain (often referred to by its English name, “the mainnet” ).

These two features are similar in that both rollups must prove to the Ethereum network that they are doing the right job. OffchainLabs, the development team at Arbitrum explains that the rollups demonstrate their accuracy using specialized tests that allow Ethereum to verify the accuracy even without executing the transactions.”

How to Trust an Ethereum Rollups

On the one hand, optimistic rollups take an “optimistic” stance, in which all parties act in good faith. Instead, ZK rollups seek to ensure that this is the case.

Optimitics rollups solve that problem by bringing a period (for example, a week) while that assumption can go through question. In case of discrepancies, proof of fraud gets generated. This situation implies that the entire second layer transaction runs on the first network.

The case of ZK rollups is different, which use validity tests. This situation implies that a party must bring cryptographic proof publicly. This party can establish the existence of a valid string ending in a particular state.

When it comes to execution costs, optimistics rollups only execute contracts without needing the complex cryptographic tests of the ZKs. However, optimistics inevitably needs that the system has enough nodes.

On these subjects, the defenders of rollup optimistics highlighted that if a chain gets executed on a large scale, yes or yes, they will need many nodes, so it does not imply an additional expense.

On the other hand, the defenders of the ZKs argue that the cryptographic tests could get done with only part of the operations without needing to create replicas of many transactions.

By: Jenson Nuñez

The Chinese government has decided to support technologies that operate on blockchains, such as non-fungible tokens. Even though the bans in China did not reach NFTs, they were in a gray area.

Official Chinese news agency Xinhua recently announced it would issue a collection of digital photographs in the form of non-fungible tokens (NFTs). The news agency itself released the information, which international media outlets such as Reuter replicated.

Many people interpret the announcement as support for specific uses for blockchains by the Chinese government. It is happening after China banned the activities related to Bitcoin and other cryptocurrencies.

The Central Bank of China said that business activities related to cryptocurrencies are illegal, reaffirming their policy against them. The monetary authority stated that those conducting them commit crimes and be subject to investigation, ratifying the policy implemented for at least three years.

The NFT collection will consist of a selection of digital photographic reports that reflect the historical moments of 2021. The Xinhua agency said they were adopting blockchain technology so that each image has unique identification and property information.

The news agency stated this first digital news collection would consist of 11 photos with special commemorative meaning and collectible value. They will issue the assets for free in a limited edition of 10,000 copies. However, they will also release some unique NFTs.

According to the announcement, the NFTs will be part of a metaverse, but there are no details. It is relevant to know that decentralized cryptocurrencies like Bitcoin are a crucial/essential part of the economy of those virtual universes.

China Goes from Banning Cryptocurrencies to Supporting NFTs

The Chinese government did not outlaw NFTs as part of the measures against the cryptocurrency market and the ban on Bitcoin mining. However, the lack of a direct pronouncement allowed McDonald’s, among other companies, to launch free collectibles.

The fast-food chain launched a collection of NFTs to celebrate the 31^st  anniversary of its entry into the Chinese market. As they award the tokens through a lottery, they would not be breaching the law against the trade of digital assets.

Some companies decided to refer to NFTs as digital collectibles to avoid using the word token, which links them to prohibited activities. AntChain and Tencent were among the firms that chose to take that route.

According to Reuter, the official endorsement by China of NFTs represents a novelty. At the same time, People’s Daily stated that non-fungible tokens were a possible fraud less than a month ago. The official media outlet of the Chinese Communist Party also referred to another official Chinese media outlet called Securities. The latter recently said that metaverses are an impractical and illusory concept.

The authorities of the Asian country recently reiterated their zero-tolerance policy with those challenging the bans on the cryptocurrency industry. They highlighted that they especially reject those who persist in mining crypto assets clandestinely.

The role of Bitcoin and other cryptocurrencies in the economy is increasingly evident, which Chinese regulators do not overlook. The ban on the trading and mining of crypto assets did not include some uses of blockchain technology such as NFTs. However, it does not allow selling or buying them in the territory.

By Alexander Salazar

A significant price rebound confirms the trend reversal of the price of IOTA, which suggests further profits in the next few days. The price remains in a broadly sideways range, for which the low volatility might drive it to the upside.

The cryptocurrency IOTA recently resumed the bullish trend with much force, jumping by 28.32% in the last seven days. That situation is generating an excellent technical scenario for the short term.

IOTA is currently trading at around USD 1.3 and has accumulated a 0.2% profit in the last 24 hours. Its daily trading volume is above USD 66.5 million, and its market capitalization is about USD 3.6 billion. It occupies 51^st place in the cryptocurrency ranking, according to CoinGecko.

The announcement of the new function of that network was the catalyst behind the recent rally of IOTA. They said that it would allow the staking of the token to obtain rewards and secure its blockchain.

Technical Analysis of the Short-Term Upward Trend of IOTA

The Price of IOTA recently experienced a strong price rally, which allowed it to break through an inverted Shoulder Head Shoulder pattern. That confirms the trend reversal signal that this chart formation throws out.

The short-term trend for IOTA is bullish, for which there should be higher profits in the next few days.

The price has undergone a minor correction, which might extend a little further. However, the dominant bullish force in the market of IOTA should halt sales soon and give way to new momentum. The closest target of the price is to reach USD 1.51.

The Price Must Still Break Through a Large Symmetrical Rectangle

The weekly IOTA/USDT chart reveals that the short-term upward trend is currently little relevant. The price is still in a broad sideways range, in the shape of a symmetrical triangle.

The price of that cryptocurrency has remained on this side after a significant bullish rebound earlier in the year. That suggests that the low volatility might be a break before continuing to the upside.

The value of IOTA may resume the medium/long-term bullish trend. However, it must first break through the resistance at USD 1.47 to confirm that this will happen.

If it loses the support at USD 1.00, there could be higher selling next. However, that is not very likely to happen at the moment.

The Position of IOTA in the Ranking of Cryptocurrencies

IOTA is just below Monero (XMR), which occupies 50^th place in the cryptocurrency ranking. While XRP has grown by 14.0%, XMR has accumulated a 10.7% profit this week.

Concerning XMR, it is currently trading at around USD 205,76 and has achieved a 0.2% gain in the last 24 hours. Its daily trading volume is above USD 169.8 million, and its market capitalization is about USD 3.7 billion, according to CoinGecko.

Although it is difficult to predict the price of IOTA in the short term, the above technical analysis indicates that there might continue rising. It is only a matter of time before it reaches significantly high levels.

By Alexander Salazar

Daily, the outgoing flow of exchanges surpasses $ 150 million. Strong-handed HODLers keep racking up the first cryptocurrency.

More than three-quarters of bitcoin that are already circulating generate profits to its holders, Glassnode revealed this information in his weekly report on this cryptocurrency. 76.2% of the bitcoin circulating yields benefits to its holders, which shows parallelisms with about 14.41 million BTC, out of a figure of 18.907 million.

Regarding the number of holders that show earnings, the report presents the evolution of this indicator since November 2020. Last July, 76% of the entities showed earnings with a value similar to the current one. The price in July, which was among the weaker levels this year, seems to be $ 32,500, almost 50% less than the actual price. Even so, the share of holders in profit was the same as the one that appeared the day before.

Another way to highlight the information is to check on the distribution of the unrealized price, which shows all the circulating BTC with the last price at which it changed hands. The report shows that 24.6% of the supply got purchased above the current price, which circles USD 47,000. Approximately a quarter of currency, or 1 BTC out of 4 is in a red stage.

Accumulation of Holders Nearly Quadruples BTC that Got Already Mined

According to the study, the so-called HODLers, those market participants who have just a bit of willingness to sell, have kept the constant accumulation going.

The supply in these holders’ hands got sold in May along with a large piece of the market. However, since then, they have kept making the pressure of accumulation and are now taking coins at a daily coin issue rate of 3.4x, According to the report. In easier words, strong Hodlers absorbed the supply at triple the rate of new coins mined daily.

Recent price weakness has ended up in sell-offs, says Glass node. Although in October there were sudden flows of BTC to the exchanges, at times above USD 200 million per day, in the last week, BTC leaves with average daily values of at least USD 150 million to USD 175 million.

A report that appeared in December revealed that exchanges’ BTC inventories have crumbled down to 13%, the same level as February 2018. According to an analysis led by Willy Woo, the constant departure of BTC from exchanges takes effect due to the gathering of long-term holders, which, although it has not continued with an upward trend; it still remains at high levels.

Woo also explains that, despite the price correction that started after the all-time high on November 10, intensive purchases by smallholders, with less than 1 BTC have also taken effect.

By: Jenson Nuñez