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Some Senators Believe Congress Should Have Permission to Trade Cryptocurrency

By
Adam Barry
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0

In recent weeks, the debate that haunts the members of Congress is whether or not they should trade using cryptocurrencies or other digital assets. A few ministers believe that the currency is making serious headway, and thus its inclusion into the economy should be allowed.

During a press conference, Pennsylvania’s Senator Pat Toomey stated that the members of Congress should be allowed to trade with cryptocurrency and other digital assets. He further added that for this to be possible, the members of Congress should be issued with information on various digital assets that the public was not privy to.

Controversy as members of congress trade cryptocurrency

Recently,  President Bidden issued a legislative directive that implements laws that govern the use of cryptocurrency. However, this decision sparked controversy when members of Congress took part in the trading of cryptocurrencies.

The members of Congress implicated were part of the team that assisted President Bidden in discussing the currencies.

Congress’s buying of cryptocurrency stocks is estimated to be $570,000  in crypto-assets and $290 million In stocks in 2021 alone.

This decision landed half of Congress in trouble as it should be based on integrity and transparency.

Cryptocurrency is an industry that diversifies and grows fast; therefore, a few of those in Congress believe that digital assets have the power to diversify an investor’s portfolio.

Congress trading in crypto could interfere with freedom to trade

Congress’s involvement in the trading process broke the country’s trading rules. This implementation is because Congress develops and formulates regulations to control the crypto market; therefore, the indication of members of congress trading under the same regulations hinders the freedom to trade.

Several legislative events like the senate passage of the infrastructure bill yielded similar effects where members of Congress create laws for their benefits and unfair gains.

Last year, politicians earned millions of dollars in profits from trading in various industries they regulate.

Senator Toomey also stated that even with a stance on cryptocurrencies and digital assets, he still advocates for a free market and lower taxes to help the average American survive.

Several members of Congress argue that they should be permitted to trade with cryptocurrencies.

China Tests the Use of Bitcoin Technology in the Country

By
Adam Barry
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0

China’s government recently permitted some of its cities to implement trials on the blockchain currency. This movie shows the country’s commitment to the cryptocurrency industry. A few of the areas where the experiment is to be conducted include Shanghai and Beijing.

This initiative follows an opinion issued by the Chinese Central and Cyberspace administration to the government, asking it to allow blockchain to be used in areas that allow data sharing and corporate operations.

The government selected several organizations, banks, and power companies to test the adaptability of blockchain. The number of organizations selected is estimated to be 164 and has the advantage of adopting the asset while applying and fastening the formulation of appropriate technology and standards.

Critics have stated that the yuan is a weak digital currency

The people’s Bank of China implemented the yuan, a digital form of currency. The bank implemented this following the government amplified its ban on the use of cryptocurrency last year.

The government considers the forms of cryptocurrencies as dangerous and a method for scammers to earn a living.

However, critics rated the yuan as a weak form of currency, stating that it is not a decentralized form of digital currency like the others and that only the bank has control over the currency.

The government implements a set of rules that any person transacting with the  technology should be aware of. The government advised the areas selected that they should prioritize blockchain transactions and develop the currency as much as possible.

How to define the Blockchain currency 

Initially, the term blockchain was developed as a technology that underpins the Bitcoin currency. It is a record of transactions that are difficult to make alterations or interference by other consumers or hackers.

The currency possesses the advantage that an individual or organization does not own it; however, it is not similar to the initial Bitcoin blockchain as more organizations adopt the technology.

The blockchain concept is quickly developing; thus, more governments, organizations, and individuals. China hopes to be the next government to implement and promote the use of blockchain; however, it still places rules and regulations for the protection of consumers.

Binance Intends To Expand Into Russia as Regulators Issue a Ban

By
Adam Barry
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0

Russia might be among the countries that issued a ban on trading cryptocurrencies and other digital assets. However, Binance, a form of crypto asset, plans to extend its reach into Russia.

Binance’s developers affirm the need to expand into Russia, stating that several countries implemented the currency; however, they watch Russia.

The company’s European Eastern Director, Gleb Kostarev, stated that its objective is to receive a license and do business where it is required. He further added that the company’s director predict a progressive regulatory approach from the country.

Cryptocurrency regulations in Russia

The cryptocurrency market is on the fast rise, and Russia is among the countries that want to control it.

A report published by the central bank highlighted that the estimated value of a cryptocurrency transaction each year is equivalent to $ 5 billion.

The Russian government became more skeptical of cryptocurrencies and selected regulators to control the market in the previous years.

The regulators proposed banning the trading or mining of cryptocurrencies and other digital assets.

However, a portion of the public disagrees with this approach and states an alternative method to deal with cryptocurrency.

Following the outcry from the public, the president of Russia, Vladimir Putin, directed the government and the central bank to reach a consensus on how to deal with cryptocurrencies.

The president added that the Central Bank does not possess the power to prevent technological progress and that the country is developing efforts to introduce the technologies right.

Regulator’s proposal to ban cryptocurrencies and other digital assets 

The government of Russia’s decision to use cryptocurrencies and other digital assets might influence its neighbor’s decision.

Currently, the government of Russia allows the trading and mining of crypto assets in the country. However, the country forbids using the currency to buy goods and services.

The only sector authorized to use cryptocurrencies include the financial transaction sector. However, Kostarev believes that the proposed regulation invites parties to discuss the way forward.

He also admits that the proposed regulations seem harsh and unfair for the cryptocurrencies developers. However, despite this regulation, the  Binance developers still intend to expand into the country.

The HMRC Releases New Guidelines of Staking and Lending Cryptocurrency

By
Adam Barry
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0

Ian Taylor, Crypto UK’s executive director, has stated that while the Her Majesty’s Revenue and Customs (HMRC) considers cryptocurrency as property for taxation purposes,  other regulatory bodies and the government are not.

Details of the regulations 

In addition, the HMRC has announced regulations that could interfere with progress in Decentralized Finance (DeFi). The new regulations focus on treating UK DeFi staking and lending as property.

They also consider if rewards and returns from such services should be revenue or capital for the sake of taxation. These rules are essential as tax professionals did not know how to handle DeFi with the current rules.

The HMRC explained that staking it lending tokens using DeFi is constantly changing. For this reason, it isn’t possible to know all situations where a liquidity provider or lender earns retains and the kind of returns they earn. For this reason, the regulator has released guiding principles.

As per the guidelines, returns through lending and staking DeFi assets will not be considered interest. The reason is that the U.K does not think of digital assets as currency. It instead considers them property.

Guidelines could burden the investors 

Critics believe that these guidelines could cause tax problems. The guidelines suggest beneficial ownership if the token was transferred to the platform. As a rainy, they would have to pay capital gains tax and be disposed of because of taxes.

Taylor points out that these rules create issues for crypto investors. Moreover, investors in the stock market do not undergo similar challenges. In addition, the rules force investors to report any transaction, which could cause confusion in tax compliance.

According to the HMRC, many factors could influence the returns. For this reason, investors should find out all details of the transaction to understand the nature of the returns.

Taylor adds that these guidelines do not align with the government’s goals to attract innovation and investment after Brexit.

Matt Hancock, a member of parliament and the previous Secretary of State for Health and social care, had asked the House of Commons to make progressive crypto-related policies that would make the country crypto-friendly.

Alphabet Inc Class C (NASDAQ: GOOG) CEO Says Web3 is the Future of the Internet

By
Adam Barry
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0

Sundar Pichai, the CEO of Alphabet Inc Class C (NASDAQ: GOOG), believes that blockchain and Web3 can transform the internet. He adds that Web3 could have various applications on the internet.

According to Pichai, Google is ready to become a leader in the emerging Web3 ecosystem. He adds that the company could add a lot of value to the industry and that Google is ready to venture into the Web3 space. However, the company didn’t relay its plans on cryptocurrency. Google does not accept digital currency as payment.

Google could ass value to web3

Pichai also speaks about incorporating blockchain into the cloud. The CEO explains that Google’s cloud team is working towards dispersing products, storing value, transacting, and building on blockchain-based spaces to supper its clients.

The CEO explains that he has been studying the sector to find how his company could benefit while adding value to Web3. He also points out that many of its competitors have ventured into the space. Pichai also expresses his excitement with innovations in the sector and states that companies should support Web3.

Many investors have invested money in companies that have entered the web3 space. Moreover, tech companies like Twitter Inc (NYSE: TWTR), Meta Platforms Inc (NASDAQ:FB), and Block Inc (NYSE: SQ) are now planning for coins or services that utilize digital tokens. However, until now, Google has not contributed to the excitement.

Many people see web3 as the solution for a more equitable, decentralized, and transparent web. This contradicts the current internet, which a few big corporations control. With web3, services and apps will operate using blockchain rather than platforms owned by individual platforms. As a result, internal operations would be more transparent, and content creators would get more profits.

Some CEOs have criticized web3

However, not all companies are supportive of web3. Tesla Inc’s (NASDAQ: TSLA) CEO, Elon Musk, and former Twitter CEO Jack Dorsey have been dismissive of web3. Furthermore, they have criticized companies venturing into the sector.

Dorsey believes that while web3 is an exciting concept, it will still be under a few companies. He even hinted that Andreessen Horowitz would own it. He describes it as another centralized entity but with a different name.

Member of Parliament Predicts That the U.K. Will Be the Home of Fintech

By
Adam Barry
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0

Several nations are setting down laws and legislation to regulate the spread of cryptocurrencies. The current government to implement measures on the fast-rising industry is the U.K.

A local media outlet, the U.K. post-Brexit, reported that the House of Commons agreed that the cryptocurrencies had the potential to interrupt the country’s financial market.

Some of the ministers on board with the decision included Matt Hancock, West Suffolk’s member of parliament. Hancock termed the technologies as economic drivers and stated that if the country implemented them efficiently, the country would develop one of the leading markets in the world.

The reasons for the legislation being implemented in the U.K

The U.K. plans to implement Fintech and other cryptocurrencies in the types of currencies. The country believes in the tech’s transparency and plans to utilize it to control fraudulent crimes.

Hancock stated that the implementation meant that the country was not left behind through his Twitter account. However, he argued that this was a bonus and not a factor that people should worry about.

Due to the implementation, the U.K. possesses a high probability of being the home Fintech. Furthermore, Hancock reiterated that the country’s implementation would position the country among the top influencers in the cryptocurrency industry.

Hancock’s contributions to the rise of cryptocurrencies assist the revolutionizing technology to effect transparency and authenticity. However, the country has implanted various strict policies that hinder the spread of cryptocurrency.

Certain implementations include compelling consumers to issue a 2% digital service tax after the amendment of Her Majesty’s Revenue and Customs (HMRC) regulations.

Hancock compared cryptocurrency growth to social media

During the house of common discussions on the implementation of cryptocurrency, Hancock compared its rapid growth to that of social media. He reiterated that the effects of social media disrupted the communications sector, just like cryptocurrency has the potential to disrupt the economy.

Although some of the houses of common members do not support cryptocurrencies, they agreed that the industry did require regulations. The members argued that preventing its spread would hinder economic growth. However, proper implementations should be put in place to protect all consumers.

Meta Platform Inc’s (NASDAQ: FB) Crypto Venture Ends As It Disposes of the Diem Tech to a Crypto-Focused Bank

By
Adam Barry
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0

Meta Platforms Inc (NASDAQ: FB) recently terminated its influence into the cryptocurrency industry following an agreement to dispose of its currency to venture Diem Association. Previously listed as Facebook launched the digital currency in 2019, the company recently sold it to Silvergate Capital bank.

The company sold the currency at $200 million despite various reports of the company encountering trouble while selling the currency; it recently concluded the sale of its intellectual property and issued a destination for the engineers.

In collaboration with the Diem association, the company plans to reimburse its investor’s assets following its dissolution and the disposal of assets. Among the organizations that Dem was in communication with, Silvergate seemed to be a good fit due to the role of the banks in the cryptocurrency industry.

The indications that Meta’s venture was starting to crack began after David Marcus, the company’s financial technology executive, departed from the company. Unfortunately, his departure derailed the company’s plans to develop more than the social networking fields such as global payments.

Critics believe Meta’s involvement in crypto would be harmful 

Following the launch of Diem, the company’s cryptocurrency, several investors and consumers criticized this and stated that the company’s involvement in the industry would harm the consumer’s privacy. The critics were also concerned that the company’s decision would destroy the existing control over the currency.

The Diem currency encountered much resistance from regulators, thus rebranding the currency into a U.S dollar stablecoin. The company’s other crypto asset, Libra, attracted distinguished investors following its launch exited after the asset’s scrutiny from the regulators. The payment platforms that withdrew their support include Mastercard Inc (NYSE: MA).

The company’s achievements despite the regulatory scrutiny 

Even following the scrutiny from the relevant regulatory officials, Diem obtained victories following the launch of Novi, its cryptocurrency wallet. The wallet assists consumers in various countries trade stablecoins while using the wallet.

The company further designed Diem to manage the volatility of other cryptocurrency assets. Upon dissolution, Meta will acquire a majority share, and the remaining will be distributed among the other partners. The company contributed a third to the venture, while the other partners include Ribbit Capital and Union Square Ventures.

The U.S Is Developing a Plan To Regulate Crypto as a Matter of National Security

By
Adam Barry
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0

An anonymous source recently revealed that the White House was developing an executive action that commands federal agencies to regulate and control cryptocurrency assets. Furthermore, the source reported that the federal agents treat the executive action as a matter of national security.

The White House will issue the latest national security memorandum in a few weeks. The memorandum establishes a group of federal agencies to implement a framework that regulates the use of cryptocurrency assets such as non–fungible tokens (NFTs), among others.

The decision was made by the white house to review the digital assets and create a framework that issues the government with coherency on its plans for the industry. The agencies expected to be involved with the initiative are the Treasury Department, the council of Economic advisers, etc.

The connection between the economy and national security. 

Following the memorandum’s release, the agencies’ tasks will include developing legislations that regulate the use of cryptocurrencies not only in the U.S. but across the globe. In addition, digital assets are utilized in various states. It is crucial to collaborate with other states.

The collaboration will aid the agencies in developing the economy while protecting the consumer’s rights and information. The approved agencies will have a three to six months’ period to draft proposals and hand them to the White House, who will act as the policy coordinator.

Things that constitute a matter of national security

In the U.S, national security is regulated by the National Securities Act and anything that hinders the consistency of the country’s economy. National Security can be divided into Terrorism, Cybercrime, and others. Cybercrime is considered the most potent division as it influences money exchange via the internet.

The cryptocurrency industry is also attractive to hackers from all over the globe. The national security memorandum attempts to regulate and protect consumers from illegal activities. Crypto assets such as Bitcoins utilize an electronic wallet to buy items from the internet.

Hackers can access these platforms and use the information to corn or extort consumers for their gain. The National Security aims to protect U.S. consumers and those who trade internationally.

Cardano Network Has Manages to Beat its Competitors After the Alonzo Update

By
Adam Barry
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0

The Cardano Network had a significant update in September 2021. The Alonzo update included improved ADA speed and scalability and smart contract functionality.

Cardano launched Alonzo on September 2021, much to the excitement of developers and investors, and 100 smart contracts were added to the blockchain hours following the launch.

Since the upgrade, Plutus, a platform for Cardano smart contracts, has grown to reach 1000 contract milestones in four months. Plutus scripts in the Cardano network are now 1003. In addition, the update allowed Cardano to offer a platform for creating DeFi (decentralized finance) applications. It also provided developers with programmability.

Notable changes in the Cardano network

While Cardano made many changes with the upgrade, its most notable addition was the smart contracts. Moreover, the blockchain’s success is influenced by developers adapting Cardano. It is also determined by the number of applications linked to the network.

Other factors that have led to the success of Cardano’s network are stability and quick transactions. The platform also seems intent on working in these two areas, proving that its growth could be long-term.

However, Cardano has warned its users of difficulties in developmental stages. Despite this, Cardano attained an average blockchain load of 94.49%, which is its highest. Surprisingly, the network has managed to sustain this for a week, which has never happened before.

There has been improvement in several metrics indicating that the smart contract functionality has enhanced activity on the platform. Furthermore, Cardano has had more volume and cheaper fees than its competitors, including Ethereum.

The Alonzo upgrade is part of the Goguen era

The Alonzo upgrade’s launch aligns with Cardano’s Goguen era, named after Professor Joseph Goguen, a computer scientist at the Universities of Oxford and California. The success of the program shows that Plutus is now popular with developers.

Cardano has organized its development into five was. These are Byron, Shelley, Goguen, Bashon, and Voltaire. The platform centers them around set functionality that it delivers with specific code releases.

Cardano’s founder, Charles Hoskinson, believes platforms like Cardano will be more prevalent in the future with mainstream users. The Cardano network had the most developer activity in the crypto industry than other platforms such as Polkadot, Kassam, and Ethereum.

Binance Announces Plans to Move To Russia Despite Proposed Ban

By
Adam Barry
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0

Binance plans to expand into Russia despite legislators proposing to ban cryptocurrency. The Central bank has given its reason for the ban as a threat to the well-being of Russians and financial stability.

Russia’s regulations will influence neighboring countries

According to the Director of Binance in Eastern Europe, Gleb Kostarev, crypto could be vital for Russia’s economic development. Countries in Eastern Europe such as Uzbekistan, Kazakhstan, and Ukraine have been more accepting of digital currency. Binance’s goal is to get a license and operate where legislators will let them.

Kostarev adds that the region is waiting for Russia to set regulations. If the country makes progressive laws, which Binance expects, other countries could follow suit.

Russia has an interest in regulating the cryptocurrency market in the country. Its cryptocurrency transactions each year amount to $5 billion. Moreover, the country is now more skeptical of the industry going as far as to propose a ban on trading and mining. The reason is that regulators see cryptocurrency as a way to finance terrorism or money laundering schemes.

The bank pointed out that cryptocurrency has the characteristics of a pyramid scheme as its growth is determined by demand. It warned that this instability threatens the financial stability of the public and the whole economy.

The central bank supports crypto-related technology

However, this stance is only held by Russian regulators as other government departments, and the public does not agree to ban crypto. They instead argue for a more lenient approach. The president of Russia, Vladimir Putin, has urged the Central Bank and government to decide.

Putin has assured the public that the Central Bank will not prevent Russia’s technological development. Instead, it is finding ways to integrate the newest technologies from this sector. The Ministry of Finance adds that it is setting up regulations on the sector and that crypto should have a chance to grow.

Kostarev has stated that the proposed ban is harsh. However, Binance takes this as a chance to dialogue with the regulator. He views Russia’s ultimate decision as brutal since it will affect neighboring countries.

Russia currently allows using crypto for transactions. However, the public cannot use it to make purchases.

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