El Salvador officially adopted Bitcoin as legal tender this week, and the cryptocurrency market experienced a lightning crash on Tuesday. Here is a recap of other hot topics.
US regulator investigates Uniswap Labs
The regulatory eye of the Securities and Exchange Commission (SEC) has now fallen on Uniswap Labs, developer of the world’s largest decentralized finance (DeFi) exchange platform Uniswap. This is what emerges from a report released on Friday by the Wall Street Journal. According to the report, people familiar with the matter described the SEC investigation as looking into the use of Uniswap by investors and the nature of its marketing.
The investigation appears to reinforce the words of SEC Chairman Gary Gensler, who insisted last month that all DeFi projects could be regulated, regardless of their degree of decentralization. The investigation is said to be in its early stages, as the SEC has yet to make allegations against Uniswap.
As the investigation is currently under civil law and not criminal law, it may not result in charges. Uniswap has established itself as a key player in the decentralized finance industry, even after suffering setbacks. Through its offering, users can reduce the risk of loss of assets typically associated with centralized trading platforms. In addition, its Ethereum-based open-source protocol inspired the emergence of several other projects.
Bitfinex exchange platform’s new security tokens launched in Kazakhstan
Bitfinex securities announced Monday that he would launch his proprietary investment exchange platform in Kazakhstan. The new platform will focus on security token offerings (STOs). The Hong Kong-based cryptocurrency exchange seeks to improve the experience of its investors by increasing the efficiency of transactions, optimizing the success rate of return on investment and reducing the transaction costs incurred.
Although the exchange platform allows the transaction of tokenized securities by investors from several parts of the world, it remains regulated by Kazakh laws under the authority of the Astana Financial Services Authority (AFSA). The exchange also clarified that users in the United States, Canada, Venezuela, Austria, British Virgin Islands and Italy will not be able to use the platform.
Panamanian lawmaker proposes new cryptocurrency law
It started with El Salvador, but the wave of cryptocurrencies has reached Panama. After the official launch of Bitcoin as legal tender in El Salvador, Gabriel Silva, a Panamanian opposition lawmaker, presented a bill in parliament affecting the cryptocurrency industry. The Minister tweeted earlier this week, announcing the bill and acknowledging that its adoption would bring several benefits to the country.
He highlighted some of the benefits such as creating jobs, attracting investment opportunities and improving government transparency. The latter goal would be partially achieved by moving all public records to blockchain storage, while adopting digital forms of administrative and legislative acts. If the bill is enacted, Panamanians will benefit from all possibilities of using crypto assets.
Panamanian citizens would be able to use Bitcoin and Ethereum in various contexts, for example to pay their tax obligations, trade fees and other civil costs. The argument for the bill is that cryptocurrencies offer fairly low transaction costs, regardless of the volume of the transaction and the distance between the parties involved. The new legislation would make the adoption of cryptocurrency optional, unlike in El Salvador, where it would be mandatory. This means that companies will retain the option of accepting fiats, with crypto being only an alternative.
FTX announces the launch of its NFT marketplace
FTX CEO Sam Bankman-Fried announced on Monday on Twitter the launch of a cross platform of non-fungible tokens (NFT) based on Ethereum and Solana. Mr. Bankman-Fried confirmed that the new platform allows users to strike, buy and sell NFTs. The exchange appears to be benefiting from the growing appetite of institutional and retail clients for NFTs. He added that if the deposit and withdrawal features weren’t available at the moment, they would be active in a few weeks.
Separately, the cryptocurrency exchange announced that it has struck a deal with NBA star Steph Curry. Seven-time NBA All-Star Curry will be the FTX Global Brand Ambassador and his pay includes a stake in the company. FTX is also committed to making charitable contributions to the Eat.Learn.Play foundation created by Steph and his wife Ayesha.
According to Standard Chartered, Bitcoin will hit $ 175,000 and Ether $ 35,000 in the long run
A Standard Chartered research team led by Geoff Kendrick has published Tuesday a cryptocurrency report with predictions of Bitcoin and Ether valuation in the near future. The team predicts Bitcoin will hit $ 100,000 at the end of this year, or early next year. The Bitcoin rally will influence Ether, which is predicted to be worth $ 15,000 in mid-2022.
Mr. Kendrick noted that Bitcoin could reach $ 175,000 in Bitcoin’s next halving cycle. Ether, meanwhile, could hit the $ 35,000 mark if Bitcoin hits that $ 175,000 valuation. The researchers also compared the capabilities of Ethereum and Bitcoin. They felt that while Bitcoin remained the dominant option for peer-to-peer transactions in the future, it remained limited in its use cases.
In contrast, they hailed Ethereum as a token capable of playing the role of a financial market. The team added that the diversity of the token’s use cases would go a long way in maintaining its usefulness in the future. She also warned that Ether was at risk of SEC scrutiny in the days to come.
Risk Disclosure: The articles and articles on Arover.net do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies.