Crypto Guides, Knowledge & Insights

SEC to look at possible securities violations in NFT market

The US Securities and Exchange Commission (SEC) is investigating NFT marketplaces and creators for possible breaches of its securities rules.　　According to Bloomberg, this investigation would mark the first regulatory scrutiny of NFTs since the sectors explosive growth started.　　NFTs reportedly under SEC radar　　The report claimed that the SEC enforcement unit has sent subpoenas asking for more information on certain NFT offerings. This is part of its quest to find out whether “certain nonfungible tokens… are being utilized to raise money like traditional securities.”　　“Over the past several months, attorneys in the SECs enforcement unit have sent subpoenas demanding information about the token offerings.”　　The inquiry appears to focus mostly on the use of fractional NFTs. With the spaces growth, fractional NFTs have become very common as it allows retail investors to purchase a stake in high-value tokens. The SEC appears to consider such a practice to be selling unregistered securities.　　As far back as 2021, SEC commissioner Hester Peirce warned NFT issuers to be careful when selling fractional NFTs as this could amount to creating an investment product.　　SECs litany of crypto regulatory skirmishes　　With the SEC spotlight now on NFTs, it joins the list of crypto products that the watchdog has under its regulatory scrutiny.

2022-03-04Deep Dive

USA’s DFS to Use Blockchain to Strengthen Sanctions Enforcement Against Russia

The Department of Financial Services (DFS) will use blockchain analytics technology to build strengthen the enforcement of the sanctions against Russia. Specifically, the effort will be to detect if Russian individuals try to bypass the imposed penalties.　　Blockchain Technology to Help Monitor Sanction Enforcement　　The Department of Financial Services oversees numerous key programs and initiatives concerning the monetary sector. As a result of the growing conflict in Ukraine, it will expand its efforts towards Russian citizens, too.　　According to a recent statement, the DFS will use blockchain technology to monitor if the financial sanctions applied to Russia are appropriately executed. It will also observe whether some individuals seek a backdoor to avoid embargoes.　　Adrienne Harris – Superintendent at the agency – predicted that bad actors will try to evade sanctions through the transmission of digital currencies. As such, “it is imperative that we have the ability to monitor transactions and exposure in real-time,” she outlined.　　Harris also asserted that the DFS will coordinate its operations with federal and other state regulators. Their joint efforts must “ensure the full weight of our regulatory regime is brought to bear in the fight to protect Ukraine,” the exec concluded.　　Speaking on the matter was also Kathy Hochul – Governor

2022-03-04Deep Dive

Ukraine has the highest crypto adoption in Europe and fourth globally

People worldwide are utilizing crypto to send aid to Ukraine in light of the current conflict. The current total stands at a staggering $33 million with donations from Polkadot Founder Gavin Wood, Binance, Uniswap and even a CryptoPunk NFT worth over $200,000. Further information suggests that the Ukrainian government has already converted most donations into fiat through the Ukrainian-founded exchange, Kuna. However, data from Chainalysis suggests that this isn’t wholly unexpected. As of July 2021, Ukraine had the 4th most significant adoption of crypto per capita. So the Ukrainian people are well-positioned to utilize cryptocurrency during times of financial uncertainty in fiat currencies.　　This graphic from Statista makes it easier to visualize the meaning behind the data. Ukraine stands out within Europe as a center for cryptocurrency adoption.　　Whilst this information was collated in July 2021, interestingly, the week commencing Feb 21, 2022, saw the highest purchasing volume on Binance for the BTC/UAH (Ukrainian hryvnia) pair in six months. Moreover, the volume compared to the week prior was more than double.　　This is not the first time that Ukrainians have fled to cryptocurrency in recent times. In September 2021, whilst Ukraine was celebrating 30 years of independence from the Soviet Union, volume for

2022-03-03Deep Dive

Starlink Terminals Arrive in Ukraine as Elon Musk Makes Good on Promise

Ukrainians Get Starlink Internet Amid Ongoing Russian Offensive　　Ukraine has received a batch of terminals needed to connect to the satellite internet constellation Starlink. The network is operated by Spacex, the aerospace manufacturer founded and managed by U.S. tech entrepreneur Elon Musk, and offers high-speed broadband internet across the globe.　　The arrival was announced by Mykhailo Fedorov, Ukraines deputy prime minister and minister of digital transformation. “Starlink — here. Thanks, @elonmusk,” the Kyiv official tweeted on Monday, posting a photo of a truck full of antennas and routers used to connect to the satellites.　　On Saturday, Fedorov took to Twitter to ask the billionaire to provide Ukraine with Starlink stations. The call was issued after media reports revealed that the internet monitor Netblocks had registered “significant disruptions to internet service” in the country since the launch of the Russian military assault on Feb. 24.　　“Starlink service is now active in Ukraine. More terminals en route,” Musk replied within hours. “Starlink terminals are coming to Ukraine!” the Ukrainian minister confirmed later, thanking Elon Musk and others supporting his country.　　Ukrainian reports on social media have indicated that Starlink equipment is already working in the capital Kyiv. According to a tweet by software and communications engineer Oleg

2022-03-03Deep Dive

South African Mobile Network Operator MTN Buys Land in the Metaverse

MTN Seeks to ‘Amplify Consumers’ Digital Experiences‘　　South Africa’s mobile network operator, MTN, recently bought 144 plots of digital land in the Ubuntuland metaverse, a report has said. The purchase reportedly makes MTN one of the first companies from South Africa to enter the metaverse.　　As the Mybroadband report explained, MTN now owns 144 plots with an area of 12 square meters.　　Commending the company‘s pivot to the metaverse, MTN’s group executive for marketing, Bernice Samuels, is quoted explaining how this dovetails with its Ambition 2025 strategy. The executive said:　　This is exactly what our Ambition 2025 strategy is premised on — leveraging trends that amplify consumers digital experiences and engagement. We have always been at the forefront of technological and digital changes and we remain alive to the exciting opportunities the metaverse presents for us and our customers.　　The mobile network operator added that its presence in the metaverse demonstrates its support for African innovation.　　Also, through this presence in the metaverse, MTN will attempt to increase what the report calls its customer attractiveness. This will be done via a series of experiences that are merged with consumer passion points like gaming and music, the report explained.

2022-03-03Deep Dive

Ukraine Adds Dogecoin to List of Accepted Cryptos, Prime Minister Asks DOGE Co-Founder and Elon Musk

Ukraine Vice Prime Minister: ‘Even Memes Can Support Our Army’　　Following the acceptance of polkadot (DOT) on March 1, the Ukrainian government is now poised to take dogecoin (DOGE) donations as well. Mykhailo Fedorov, the country‘s vice prime minister, announced the government would accept DOGE via the Ukrainian official’s Twitter account. Fedorov even gave a shout-out to the Dogecoin networks co-creator Billy Markus and Tesla CEO Elon Musk. The Ukrainian official stated:　　[Dogecoin] exceeded [the] Russian ruble in value. We start to accept donations in meme coin. Now even [memes] can support our army and save lives from Russian invaders. DOGE owners of the world, [Elon Musk, Billy Markus], lets do it.　　The dogecoin acceptance follows the Ukrainian governments initial plea for bitcoin and ethereum donations which saw millions worth of BTC and ETH pour into the donation addresses. Furthermore, the crypto exchange Binance launched a crowdfunding initiative to support Ukraine, and Binance donated $10 million as well. After Fedorov announced the DOGE acceptance a number of dogecoin advocates replied.　　“Sent some,” DOGE‘s co-founder Billy Markus tweeted in response to Fedorov’s tweet. “Dogecoin folks arent usually rich and dogecoin itself is generally used for small transactions, but we are a caring and passionate bunch.

2022-03-03Deep Dive

This crypto firm wants to use DeFi loans to fund its trades

One of the biggest crypto trading firms, Alameda Research, is financing part of its daily trading activity with DeFi loans. 　　The leading crypto firm transacts around $5 billion worth of crypto daily and revealed that it would borrow $750 million from TrueFi and Maple Finance over the year.Alameda Research uses DeFi loans for trading　　Alameda Research is one of the crypto firms founded by Sam Bankman-Fried of FTX and is a major trader on the exchange. It was also one of the major investors in the $12.5 million funding round for TrustToken, TrueFis parent company.　　DeFi platforms like TrueFi were built to help solve one of the many problems crypto traders face: access to funds.　　Due to the industrys volatile nature and the cloak of anonymity surrounding players in the space, traditional financial institutions rarely provide access to funding. 　　This has left a gaping hole in the crypto industry that TrueFi, alongside a host of others, tries to fill.　　According to Sam Trabucco, a top executive at Alameda, he revealed that the firm already conducts a double-digit percentage of its trading using DeFi before adding that DeFi borrowing was also a significant part of its balance sheet.　　Trabuco also stated that the firm plans to

2022-03-03Deep Dive

EU Data Act Proposes Shutdown Function for Smart Contracts

The European Union has published its new Data Act, a law proposal that aims to regulate the generation and handling of data by the actors that harness it. The act, in its large scope, touches on the subject of smart contracts and proposes that every smart contract should have a termination function to stop the flow of transactions when required.　　Smart Contracts Might Be Stifled by EU Data Act　　The newly proposed EU Data Act, published on February 23, aims to regulate and control the ways in which data is being generated, bringing legal clarity to the data market in Europe. According to a press release, the new Data act seeks to “ensure fairness in the digital environment, stimulate a competitive data market, open opportunities for data-driven innovation and make data more accessible for all.”　　However, due to its large scope, this new act touches the subject of smart contracts, which are pieces of software designed to execute certain tasks based on data inputs. The document, in its article 30, titled “essential requirements regarding smart contracts for data sharing,” defines the requirements that smart contracts must fulfill to be deployed in conformity with EU laws.　　One of these requirements, called “safe termination and interruption,”

2022-03-03Deep Dive

Mike Novogratz: Russia-Ukraine War Will Boost Crypto Adoption and Dollar Marginalization

Mike Novogratz, CEO of digital assets company Galaxy Investment Partners, predicted that the Russia-Ukraine war will boost crypto adoption and lead to the marginalization of the dollar.　　“This is a big deal, in a lot of ways. This is starting the acceleration of de-dollarization of the world,” he commented.　　The billionaire American investment banker made it clear in a tweet on February 25 that he stood with Ukraine in this war. He also shared a picture with Kyiv Mayor Vitali Klitschko, saying, “I pity the Russian that runs into Klitschko.”　　Bitcoin prices witnessed a sudden spike, going well past $44,000 from the below $40,000 level in a matter of two days. Novogratz‘s forecast of the dollar’s importance to progressively decline vis-à-vis bitcoin and other digital assets after this war sounds true for the ruble, which saw its value fall by 25% in a day.　　Boost for Crypto, Marginalization of Dollar　　According to a Bloomberg report, Novogratz believes the war might “push more regular people toward crypto.” But, similar to Ripple CEO Brad Garlinghouse, he doesnt think that bitcoin is going to be used as a workaround against the hefty sanctions that the Western world imposed on Russia.　　It may simply be the case of people reaching

2022-03-03Deep Dive

UK Regulator Bans Floki Inu Ad for Being Irresponsible, Exploiting Investor FOMO

The U.K.‘s advertising authority has banned an ad for cryptocurrency floki inu (FLOKI). The authority says the ad’s “Missed Doge？ Get Floki” claim “exploited consumers‘ fears of missing out and trivialized investment in cryptocurrency.” The ad was also “irresponsible” and “took advantage of consumers’ inexperience or credulity,” the regulator said.　　 Floki Ad Banned in the UK　　The Advertising Standards Authority (ASA), the U.K.s regulator of advertising, published its “Ruling on Floki Inu” Wednesday.　　The advertising authority began investigating an ad campaign for floki inu (FLOKI), the cryptocurrency inspired by Elon Musks shiba inu dog, in November last year after the Floki ad was seen on public transport in London.　　The ad contains a floki inu logo and text that says, “Missed Doge？ Get Floki.” It also contains smaller text at the bottom that reads, “Your investment may go down as well as up in value. Cryptocurrency is not regulated in the UK.”　　After investigation, the ASA ruled:　　“The use of an image of a cartoon dog wearing a Viking helmet and the claim ‘Missed Doge. Get Floki,’ exploited consumers fears of missing out and trivialized investment in cryptocurrency.”　　In addition, the advertising watchdog ruled that “the ad was irresponsible” and “took advantage of consumers inexperience or

2022-03-03Deep Dive

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