Crypto Guides, Knowledge & Insights

Nigerians Embrace Virtual Banking as Commercial Banks apps and USSD turn out unstable

By: Damian Okonkwo　　As Nigeria grapples with a shortage of local currency, businesses and individuals are increasingly turning to virtual banks to manage their financial transactions. This shift comes as the countrys commercial bank apps and USSD codes continue to experience technical difficulties.　　The Naira scarcity, which has been a persistent problem in the country, has intensified in recent weeks, causing significant disruptions in the financial sector. Many commercial banks have been unable to meet the high demand for physical cash, leading to long queues and frustrated customers.　　To avoid these inconveniences, Nigerians are now embracing fintech solutions that offer more flexibility and convenience. Virtual banks provide users with access to a range of financial services, including savings accounts, loans, and investment options, without the need for physical branches.　　One such platform that has gained popularity in recent months is Kuda Bank, a digital-only bank that offers zero charges on transactions and easy account opening processes. Another player in the market is Carbon, which provides instant loans and virtual debit cards.　　As these virtual banks continue to gain traction, traditional banks are struggling to keep up. Many of their mobile apps and USSD codes have been crashing, leaving customers unable to access their accounts or

2023-03-13Deep Dive

Another Issuer Of Digital Assets Is Registered With The Bank Of Russia

Five new licensed digital asset issuers have emerged in Russia.　　According to the Russian business news outlet RBC, the Central Bank of Russia (CBR) has registered Distributed Registry Systems and its Masterchain platform in its list of information system operators authorized to issue digital financial assets (DFAs). The CBR has previously registered four other issuers, including Sberbank and Alfa-Bank, the two largest state-owned and private banks in Russia, respectively. Lighthouse, a fintech firm, and Atomyze, a tokenization service, have also been included in the register.　　Distributed Registry Systems, established in April 2021, is an IT company that specializes in developing blockchain-based solutions for various industries, including finance, transport, and logistics. It is supported by several large Russian banks, the Moscow Stock Exchange, and the Association “Of Fintech.” The company plans to initially issue digital financial assets for the rights to monetary claims in the form of either unsecured bonds or structural instruments linked to various assets. The press release also stated that the company would launch other types of DFAs on its platform in the future.　　Recently, Moscow Credit Bank, Russias largest private regional bank, issued the countrys first digital bank guarantee in Chinese yuan using the Master chain platform.　　In January 2021, Russia

2023-03-13Deep Dive

Be AWARE! Online Investment and Romance Frauds!

A 60-year-old woman from Macau was cheated out of nearly 6.75 million Hong Kong dollars. According to local police, the victim met a man who claimed to be a successful investor through a mobile application in December 2022. The man taught the victim to invest in a cryptocurrency, and they quickly developed a romantic relationship. The man proposed to her, and they bought a property together and shared a joint investment account! The victim transferred about 6 million Hong Kong dollars before realizing she might have been cheated and reported the case. How could she have given so much trust (or blind faith) and transferred so much money to a person she had never met？　　In addition, another female victim in her twenties was involved in an online dating fraud case. She met a male Chinese-American online who claimed to send her some valuable gifts. The victim transferred a total of 120,000 yuan to pay for the related package and tax fees, but she did not receive the gifts after the transfer. Below are some related screenshots of the cases of those male scammers who send semi-nude photos to lure innocent women:　　These romance scams have also victimized countless people in Malaysia!

2023-03-13Deep Dive

Be AWARE! Online Investment and Romance Frauds!

2023-03-13Deep Dive

After US Officials End Parent Firm, Bank of England Closes Silicon Valley Bank's UK Office

The Bank of England has closed Silicon Valley Bank (SVB), which was shut down by American authorities on Friday. The company will be subject to bank bankruptcy processes, the central bank stated.　　BOE is forced to close its U.K. branch as a result of the SVB failure.　　The U.S. Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation (DFPI) have closed Silicon Valley Bank (SVB), the 16th-largest bank in the country. This is the result of ripple effect that has spread overseas to the companys U.K. subsidiary. SVB UK is no longer handling payments or taking donations as a result of the Bank of Englands (BOE) intervention. According to the BOE statement, the bank will enter a bank bankruptcy process, and qualified savers will receive payouts from the FSCS up to the safe maximum of £85,000 or up to £170,000 for combined accounts.　　Customers tried to extract $42 billion in savings via bank transfers after SVB failed, causing pandemonium. The companys U.K. affiliate has also been impacted by the banks failure, according to Susannah Streeter, director of money and markets at Hargreaves Lansdown, who claimed that it was unavoidable that the SVB UK branch would fail. Despite claims

2023-03-13Deep Dive

After Silicon Valley Bank Failed, Fears Of A Financial Disaster Arose

The largest financial institution failure since the financial crisis more than a decade ago occurred on Friday as Silicon Valley Bank (SVB) had its assets seized by US regulators. SVB was the 16th largest bank in the country, catering to depositors such as technology workers and venture capital-backed companies. This week, many of its customers withdrew their money due to anxiety over the banks situation, resulting in the banks inability to manage the large withdrawals. Despite attempts to raise new funds, the bank ultimately failed. The Federal Deposit Insurance Corporation (FDIC) took control of the bank and its management, as per their responsibility to guarantee deposits. Although it may not be well-known to the public, SVB specialized in financing start-ups and was one of the largest banks in the US, with $209 billion in assets and about $175.4 billion in deposits as of the end of 2022.Tech Employees Are Becoming More Anxious　　Silicon Valley Banks collapse marks the second-largest retail bank failure in the US since 2008s Washington Mutual collapse. On Friday, US Treasury Secretary Janet Yellen convened financial regulators to discuss the situation, assuring them that she trusted their ability to take appropriate action and emphasizing the banking sectors resilience.

2023-03-13Deep Dive

Binance CEO Speculates Coordinated Efforts To Destabilize Crypto; Is Bitcoin Under Attack?

The crypto market experienced a tumultuous year in 2022, and it seems that the challenges are likely to persist in the current year as well. Due to regulatory hurdles and the collapse of prominent companies, the crypto industry is facing a difficult situation that appears to be a deliberate attempt to undermine it.　　Binance CEO Raises Concern On Crypto　　　　Binance CEO, Changpeng “CZ” Zhao, shared a similar view. In a recent tweet, he suggested that the current situation in the cryptocurrency space may be a coordinated effort to shut down banks that are supportive of crypto, which could have negative consequences for the industry in the future.　　Despite the impact of attempts to hinder the cryptocurrency industry, traditional financial institutions are currently struggling while blockchain technology continues to operate due to its decentralized nature. This decentralized approach prevents any central authority from taking control. As an example, Bitcoin has maintained its $20K value despite facing regulatory obstacles, negative press coverage, and media scrutiny.　　Recently, several influential authorities in the United States, such as the Federal Reserve, the OCC, FDIC, SEC, NYAG, NYDFS, DOJ, and members of Congress, have been making efforts to destabilize the growing cryptocurrency industry, which has been challenging the traditional market

2023-03-13Deep Dive

Stablecoins In Trouble? USDC, DAI, USDD Depeg As SVB Crisis Deepens

Following a significant sell-off, the worldwide digital asset market experienced a widespread rebound on Saturday morning, with Bitcoin and Ethereum prices increasing by 3% and 5%, respectively. Nonetheless, the top stablecoins, namely USDC, DAI, and USDD, suffered significant de-pegging, as the crypto market remains haunted by the Silicon Valley Bank crisis.　　USDC To Fall Amid Market Crash？　　According to the data, USD Coin (USDC), the second-largest stablecoin, has experienced an 11% drop in its value pegged to the US dollar in the past 24 hours. At the time of writing, USDC is trading at an average price of $0.912. Its 24-hour trading volume has surged by 321% to reach $18.54 billion as it continues to deviate from its fixed $1 value.　　According to a statement by Circle, the issuer of USDC, Silicon Valley Bank is one of their six banking partners. However, they only use these banks to manage 25% of the USDC reserves held in cash. The Circle is still awaiting clarity on how the Federal Deposit Insurance Corporations (FDIC) receivership of SVB will affect its users.　　Besides USDC, DAI, an Ethereum-based stablecoin, is also experiencing de-pegging issues during the current crisis. DAIs dollar-pegged value dropped by 10% over the past day and

2023-03-11Deep Dive

DOJ Wants To Stop Binance.US Buying Voyager — Because SEC

Despite gaining approval for its acquisition by Binance.US two days ago, Voyager is now facing an appeal by the Department of Justice (DOJ) in New York seeking to halt the deal. On Tuesday, U.S. Bankruptcy Judge Michael Wiles approved Voyagers restructuring plan, which involves Binance.US taking over Voyager client assets for $20 million, originally valued at $1.3 billion in July last year. However, during the hearing this week, SEC officials opposed the plan, claiming that Binance.US is operating an unregistered securities exchange.　　In response to concerns about creditors waiting for access to their invested property amid the uncertainty, Judge Wiles stated that action must be taken. The Department of Justice (DOJ) has filed an appeal, claiming that the SEC has the authority to intervene to ensure compliance with securities laws regarding the management of Voyagers cryptocurrency assets.　　According to the appeal filing, the Confirmation Order and Plan do not grant jurisdiction to the court over any police and regulatory actions taken by the SEC. The SEC retains the power and authority to initiate and continue any such actions against any individual or entity, including the Debtors.　　Even if the appeal is dismissed, Voyager still has the option to withdraw from the agreement with

2023-03-11Deep Dive

Crypto Market Loses $60 Billion; Bitcoin Crash Under $20K; What’s Happening?

On Friday, the digital asset market worldwide experienced a significant sell-off as concerns mounted about the prospects of US-based banks that support cryptocurrencies. The collective market capitalization of the crypto market has plummeted by 7%, shedding over $60 billion in the past 24 hours, bringing it down to $930 billion.　　Liquidation Breaches $300 Mln　　According to WikiBIT data, the crypto market has seen liquidations totaling $308 million in the last 24 hours. The largest single liquidation order, worth $9.49 million, occurred on the Bitmex exchange. Meanwhile, Binance recorded liquidations of approximately $106 million over the same period, with OKX exchange following closely behind with $74 million in liquidations.　　According to data, Bitcoin, the largest cryptocurrency in the world, experienced a liquidation of $120 million in the past 24 hours. During the same time frame, the price of Bitcoin plummeted by a significant 8%, and it is currently trading at an average price of $19,988 as of the time of writing.　　　　In the past day, the price of Ethereum also decreased by more than 7%, and it experienced a liquidation of $75 million during the same period. As of the time of writing, Ethereum is trading at an average price of $1,421.　　　　　　Why Crypto Market Is

2023-03-10Deep Dive

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