Hong Kong’s ZA Bank, Blockchain gaming investments soar, Binance CEO’s take on crypto regulations & more
ZA Bank’s Crypto Expansion: Pioneering Digital Asset Services in Hong Kong
> Co-founded by Chinese tycoon Ou Yaping, among others, the bank plans to facilitate token-to-fiat currency exchanges through licensed platforms, according to CEO Ronald Iu in a recent interview.
> By acting as a settlement bank, ZA Bank will enable customers to withdraw funds in Hong Kong, China, and US currencies after depositing crypto tokens on exchanges.
> Iu revealed that this business model is already functioning with HashKey and OSL, the only two licensed crypto exchanges in Hong Kong at present. More here.
Q1 2023 Sees 12.95% Surge in Blockchain Gaming and Metaverse Investments, Reaching $739 million
In Q1 2023, the blockchain gaming and metaverse sectors experienced a significant surge in investments, with a 12.95% increase bringing the total to $739 million, according to the latest DappRadar x BGA Games Report.
> Although daily unique active wallets decreased by 8.58% during the same period, blockchain gaming’s overall dominance in the dapp industry rose to 45.60%, up from 42.87% in Q4 2022.
> Polygon, a blockchain previously known for its DeFi dapps, has emerged as a major player in the blockchain gaming industry, ranking third in terms of activity with an average of 122,307 daily unique active wallets (dUAW) in Q1 2023.
> Alien Worlds and Splinterlands stood out as the top games in terms of user activity on their respective blockchain platforms, with Alien Worlds accounting for 66% of WAX activity and Splinterlands capturing 99% of Hive activity.
Binance CEO Stresses the Need for Clear Crypto Regulations at Hong Kong Web3 Festival
> He stated, “Having no regulatory clarity is the worst.
> Having bad restrictive regulations are better than that. And then having unclear ones and then chasing people by enforcement is really, really bad.”
> These comments follow a recent lawsuit against CZ and Binance by the U.S. Commodity Futures Trading Commission, accusing them of operating an “illegal” exchange and a “sham” compliance program.
> At the time, Zhao had characterized the suit as “unexpected and disappointing.”
> CZ discussed how regulators often attempt to apply traditional financial rules to the crypto sector, despite their fundamental differences. Continue here.
EU Pushes for Stricter Crypto Identity Checks to Combat Darknet Markets
> The study, commissioned by the European Union’s European Monitoring Centre for Drugs and Drug Addiction, comes as lawmakers in the region advocate for more rigorous anti-money laundering measures for cryptocurrency transactions.
> The report also suggests that enhanced police training could be more effective than outright prohibitions.
> The authors of the report, Kim Grauer and Eric Jardine from Chainalysis, emphasize the importance of countries worldwide implementing recommendations from the Financial Action Task Force.
> This would ensure that users of exchanges, brokers, and ATMs can be identified when cashing out illicit earnings. Details here.
Zane Tackett’s Vision for Creditor Tokens and a New Market
> He communicated this idea via Telegram, stating, “If they try and fail, it’s not like the creditors are much worse off.”
> Tackett believes FTX should be relaunched with all its previous products and include a market for trading creditors’ claims on the bankrupt firm.
> He cited the example of Bitfinex, which introduced a BFX token after being hacked in 2016. Tackett proposed that the new exchange could offer a market for FTX claims based on one token per $1 lost, similar to Bitfinex’s approach. More here.
Bitcoin Rallies Strongly Amid Regulatory Hurdles and Banking Crisis
> The bank highlights that both bitcoin and gold have seen gains as they are considered safeguards against a potential “catastrophic scenario.”
> According to the report, led by analyst Nikolaos Panigirtzoglou, recent issues in the banking sector have “highlighted the frailties of the traditional financial system, as banks’ maturity mismatch makes them vulnerable to bank runs.”
> This situation has been perceived by cryptocurrency enthusiasts as evidence supporting the value of the crypto ecosystem.
> Additionally, the launch of bitcoin ordinals two months ago has been seen as a positive for the cryptocurrency, with some arguing it could increase transaction fees and boost miner revenues. Continue here.
Unveiling the Ethereum Shanghai Update: A Comprehensive Guide
> It allows validators to withdraw staked ether (ETH) and rewards that have been locked up in the Ethereum network.
> This marks the completion of Ethereum’s transition from a PoW to a PoS network, opening up new possibilities for scalability, sustainability, and mainstream adoption.
> Ethereum started its transition from a PoW to a PoS blockchain in September 2022 with the Ethereum Merge.
> This upgrade replaced the energy-intensive PoW consensus mechanism with the more energy-efficient PoS, where users stake cryptocurrency to validate transactions and receive rewards for their participation. Continue reading.
Warren Buffett Slams Bitcoin Again: Calls It a ‘Gambling Token
> Buffett is a highly respected name in the financial world, and his skepticism toward the leading cryptocurrency is well-known.
> However, his recent comments may seem ill-timed given the asset’s strong performance since the beginning of 2023.
> During a recent appearance on CNBC’s Squawk Box, Warren Buffett labeled Bitcoin (BTC) as a “gambling token” while questioning its overall worth.
> The legendary investor has previously expressed doubts about the digital asset, and his latest remarks reinforce his negative view of its value. More here.
Over $7.3 Billion Recovered in Cash and Crypto Assets
> FTX attorney Andy Dietderich mentioned during a Delaware court session that the company is beginning to consider its future following months of efforts to gather assets and determine the root causes of its issues under the direction of its indicted former founder, Sam Bankman-Fried.
> “The situation has stabilized, and the dumpster fire is out,” Dietderich stated.
> FTX sought bankruptcy protection in November 2022 when traders withdrew $6 billion from the platform within three days, and competing exchange Binance withdrew from a bailout agreement. Full report here.
Bitcoin Hovers Around $30,000 as Inflation Slows Down, Ethereum’s Shanghai Upgrade Concludes
Bitcoin teetered around the $30,000 mark on Wednesday afternoon as the latest Consumer Price Index (CPI) report revealed inflation slowing down slightly, but not as much as economists had predicted.
> The leading cryptocurrency by market capitalization was hovering at $30,030, showing little change in the last 24 hours, according to CoinDesk data.
> BTC’s price peaked at $30,548 earlier in the day, following the Bureau of Labor Statistics’ closely monitored inflation report, which showed a 0.1% rise in CPI for March.
> Meanwhile, Ether (ETH), the second-largest cryptocurrency by market cap, traded at $1,914, a 0.3% increase from Tuesday at the same time.
