The Securities and Exchange Commission (SEC) of the Philippines has requested that tech giants Apple and Google remove Binance apps from their respective app stores. The SEC chairman stated that the blockade on Binance, coupled with the removal of its app, curbs the further spread of its unlawful activities in the country. Binance Apps Pose […]
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Worldcoin Foundation Announces ‘World Chain’ for Enhanced Human-Centric Apps
Worldcoin is set to introduce a new blockchain called “World Chain,” which is designed to give precedence to human users over bots, purportedly enhancing both utility and accessibility. The Worldcoin Foundation stated that this platform will be deeply integrated with the Worldcoin protocol, employing the World ID’s proof of personhood to promote a user-centric approach […]
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Blockchain-Based Ride Apps Could Restore Confidence in Ride-Hailing Industry, Says Firdosh Sheikh
According to Firdosh Sheikh, the co-founder and CEO of DRIFE, blockchain-based ride-hailing platforms could disrupt and revolutionize the industry, much like Uber and Lyft did to the traditional taxi industry over the past decade. To support this argument, Sheikh, whose ride-hailing platform is already taking on Uber in markets like India, pointed to how the […]
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Blockchain Association Rebuffs CFPB’s Proposal on Payment Apps and Digital Assets
In a detailed critique, the Blockchain Association counters the CFPB’s latest proposal to oversee digital consumer payment applications, citing legal and jurisdictional overreaches in the bureau’s approach to cryptocurrencies and digital assets.
CFPB Faces Criticism from Blockchain Association Over New Proposal
In November 2023, the Consumer Financial Protection Bureau (CFPB) proposed a new rule aimed at bringing non-bank payment providers and certain crypto transactions under its oversight. The proposal was ostensibly seen as a step towards modernizing financial regulation, and has sparked backlash in the crypto community.
The proposed rule by the CFPB seeks to define a market for general-use digital consumer payment applications. This would bring apps like Venmo and other digital asset platforms under the same regulatory scrutiny traditionally reserved for banks. The implication for the crypto industry is profound, as this could subject various crypto transactions to increased regulation and oversight. The rule is part of the CFPB’s effort to extend its examination authority over larger participants operating in the digital payment space.
CFPB requested feedback to the proposal, which the Blockchain Association, a prominent group in the crypto sector, delivered in a detailed 14 page response today. In a press release with the response, the Association summarized their position:
The Proposal, which would give the CFPB supervisory authority over certain “general use digital consumer payment applications,” is overly broad and lacks the requisite analysis to justify such broad application.
The Association raised several concerns, primarily questioning the CFPB’s jurisdiction over digital assets. The Blockchain Association argues that the CFPB can’t assume authority over digital assets without additional rulemaking, noting that the CFPA, passed in 2009, does not clearly define “funds” to include digital assets, which emerged shortly after the Act’s inception.
The Association further contends that the proposal lacks legislative history or case law to support extending the definition of “funds” to include digital assets. They emphasize that such a significant extension of regulatory scope necessitates a separate rulemaking process under the Administrative Procedure Act (APA) to allow public engagement on this critical issue.
Beyond the jurisdictional challenge, the Association criticizes several aspects of the proposal, recommending that its scope be confined to transactions involving fiat currency only, citing the absence of a thorough impact analysis on digital assets, especially those used for non-financial purposes like NFTs. They also question the proposed threshold of 5 million transactions for platforms to fall under the regulation, labeling it as arbitrary and lacking justification.
Concerns are also raised about the proposal’s vague terms regarding non-custodial wallets and the challenges digital asset wallet developers face in tracking the nature of transactions. The group calls for a more detailed cost-benefit analysis, concluding that the current proposal fails to meet APA standards and risks being “arbitrary and capricious.”
In the end of a thread on X, the Blockchain Association’s Head of Legal, Marisa Coppel, recommends, “the CFPB to consider the implications of the Proposal’s application to digital assets and recognize the Proposal’s deficiencies in light of APA requirements.”
Do you think the CFPB is attempting to expand its power through this proposal? Share your thoughts and opinions about this subject in the comments section below.
Developer Alerts Ledger Live Software Could Be Tracking User IDs, Apps and Balances
Rektbuilder, a developer, has stated that cryptocurrency hardware wallet company Ledger can track user identities, apps, and even cryptocurrency balances in the device through the use of Ledger Live, its wallet management software. The developer discovered this behavior while working on Lecce Libre, a lighter, less intrusive software for the hardware wallet.
Ledger Live Sends User Information to Ledger, Developer Alleges
Developer Rektbuilder alerted about the information that Ledger, the hardware wallet manufacturer, receives through its wallet management program Ledger Live. According to his findings, the software embeds checks for the ID of each device when installing or updating apps and firmware.
The developer, currently working on “Lecce Libre,” a less intrusive and lighter app to manage Ledger hardware wallets, warned that removing this verification code breaks the app, meaning that using it is mandatory. He stated:
I tried disabling the remote tracking and it’s impossible, it breaks if you do. Which means Ledger knows it’s you every time you plug the device in.
Previously, he had also reported having removed balance summary details involving network calls for asset balances. Rektbuilder stated that the Ledger Live made 2,000 network calls for “all sorts of unnecessary stuff,” having already removed them in Lecce Libre.
He escalated his concerns, stressing that due to the available recovery function that allows retrieving the private keys in the device, nobody can be sure these are not being read.
Emin Gün Sirer, founder and CEO of Ava Labs, also called on Ledger to address the issues presented by Rektbuilder. He stressed that Ledger “should be able to confirm or deny (1) if these claims are true, (2) if there’s a way to work entirely offline without tracking, and (3) if the private keys are readable from the secure element.”
Ledger, which recently faced an attack that caused users to lose 0,000 in assets, has contacted Rektbuilder, who reported they are now working with the wallet company to obtain feedback on the issues raised.
What do you think about Ledger Live’s alleged privacy issues? Tell us in the comments section below.
Google to Allow NFTs in Apps and Games on Play Store
Google will let developers expand offerings of blockchain-related content including through support for non-fungible tokens (NFTs) in apps on its store for Android devices. The change will allow users to earn and transact with digital collectibles, potentially reviving interest in the NFT market.
Google Play Marketplace Announces NFT Integration
Google unveiled that it’s updating its app store policy to “open new ways to transact blockchain-based digital content within apps and games.” The amendment means that developers will be able to offer users opportunities to earn and trade NFTs as part of loyalty and rewards programs, for example.
“Google Play hosts a variety of blockchain related apps, and we know that our partners are excited to expand on these offerings to create more engaging and immersive digital experiences with tokenized digital assets such as NFTs,” the tech giant said in an announcement on Wednesday. Google added:
We’re excited to see creative in-app experiences flourish and help developers expand their businesses.
At the same time, the company emphasized it will require developers to provide safe experience with the tokenized digital assets. This includes informing players about the value of an NFT at the time of purchase and refraining from promoting potential earning from playing or trading activities.
Google also promised to continue to engage with developers to support them in their efforts to build sustainable businesses using blockchain technology. Further improving its support of blockchain-based app experiences is part of Google’s plans, according to the statement.
The popularity of NFTs took a hit during the latest crypto winter but Google’s new policy may help revive the waning market. According to blockchain data provider Cryptoslam, the monthly global sales volumes were down 38% in June over the same period of last year, to 3 million, Bloomberg noted in a report.
Google has clarified its rules for non-fungible tokens, which will take effect on Dec. 7, after Apple introduced new guidelines on crypto trading and the use of NFTs within apps and games in October, 2022. In mid-March, 2023, the owner of social media networks Facebook and Instagram, Meta, announced it’s winding down support for digital collectibles on its platforms amid turbulence in the crypto space.
Do you think Google’s NFT integration will have a positive effect on the NFT market? Share your thoughts on the subject in the comments section below.
HSBC Enables Bitcoin and Ethereum ETF Trading on Mobile Apps in Hong Kong
Banking giant HSBC has begun letting customers buy and sell bitcoin and ethereum exchange-traded funds (ETFs) that are listed on the Hong Kong stock exchange (HKEX) using its mobile apps. The stock exchange currently has three crypto futures ETFs listed.
HSBC Customers Can Trade Crypto Futures ETFs Using Mobile Apps
Banking giant HSBC has reportedly begun allowing customers to buy and sell bitcoin and ethereum exchange-traded funds (ETFs) listed on the Hong Kong stock exchange (HKEX) through its mobile apps. Chinese reporter Colin Wu tweeted Monday:
HSBC, the largest bank in Hong Kong, today allows its customers to buy and sell bitcoin and ethereum ETFs listed on the Hong Kong exchange, and is also the first bank in Hong Kong to allow it. The move will expand local users’ exposure to cryptocurrencies in Hong Kong.
Wu further noted that HSBC has launched “Virtual Asset Investor Education Centre,” emphasizing: “Investors need to read and confirm the educational materials and risk disclosures in the Virtual Asset Investor Education Center before investing in any virtual assets-related products through HSBC HK Easy Invest app, HSBC HK Mobile Banking app, and online banking.”
Currently, there are three crypto ETFs listed on the Hong Kong stock exchange: CSOP Bitcoin Futures ETF (stock code: 3066), CSOP Ether Futures ETF (stock code: 3068), and Samsung Bitcoin Futures Active ETF (stock code: 3135).
The CSOP bitcoin and ether futures ETFs, which began trading on the HKEX in December last year, track the standardized, cash-settled bitcoin futures contracts and ether futures contracts traded on the Chicago Mercantile Exchange (CME) respectively. The Samsung bitcoin futures ETF was listed in January; it seeks to provide economic exposure to the value of BTC by investing predominately in front-month bitcoin futures on CME.
Hong Kong recently revamped its regulatory framework for crypto in an attempt to become a crypto and innovation hub. The new law went into effect on June 1. The Hong Kong Securities and Futures Commission (SFC) stated that its new regulatory regime “seeks to capture all the dimensions of the public’s interface with virtual assets, providing for investor protection and market integrity while managing key risks to financial institutions.”
Many people were quick to point out on social media that the cryptocurrency ETFs that customers can trade through HSBC’s apps are not spot crypto ETFs. In the U.S., the Securities and Exchange Commission (SEC) has approved several crypto futures ETFs but has yet to greenlight any crypto spot ETF.
Moreover, these crypto ETFs have been available through the HSBC Broking service since they were listed on the HKEX but were not available on mobile apps. HSBC Broking offers ETF trading on the Hong Kong Stock Exchange and other major markets around the world.
Hong Kong is setting itself apart from the United States in terms of regulatory approaches towards cryptocurrencies. While the U.S. SEC has been actively taking action against unregistered crypto trading platforms and securities tokens, including charging Coinbase for violations of security laws, Hong Kong has adopted a different stance. In response to developments in the U.S., Hong Kong legislator Johnny Ng invited Coinbase and other global crypto exchanges to apply for licenses in Hong Kong. The lawmaker stated, “I hereby offer an invitation to welcome all global virtual asset trading operators, including Coinbase, to come to Hong Kong for the application of official trading platforms and further development plans.”
HSBC recently filed trademark applications for a wide range of digital currency and metaverse services. The bank’s CEO, Noel Quinn, however, has said that crypto is not in HSBC’s future. In March, the bank joined the metaverse by partnering with blockchain virtual gaming platform The Sandbox. In May, the Hong Kong Monetary Authority (HKMA) announced that HSBC and 15 other firms have been selected to participate in the first round of e-HKD pilots for 2023.
What do you think about HSBC letting customers trade bitcoin and ethereum ETFs listed on the Hong Kong stock exchange using its apps? Let us know in the comments section below.
More People Are Downloading Crypto Apps Like Coinbase, Binance, Here’s Why
According to real-time app data provider Apptopia, the top 10 crypto applications for exchanges and self-custody wallets have risen by about 15% since Silicon Valley Bank (SVB) and two other lenders fell last week.
Bank App Demand Drops
The recent shake-up in the United States banking system appears to shift interest and demand toward crypto solutions. Trackers note that since last week’s crisis, there has been a remarkable increase in downloads of crypto dapps offering exchanging and asset storage services.
According to Apptopia, the top 10 crypto apps, defined as Coinbase, Crypto.com, Trust, Binance, Bitcoin and Crypto DeFi Wallet, Blockchain.com, KuKoin, Kraken, eToro and BitPay, comprising both exchanges and self-custody wallets, have risen by around 15% since Silicon Valley Bank’s stock fell 60% last week.
crypto app downloads and the price of bitcoin go up 15% in the week after SVB collapse.@TechCrunch with the story behind the numbers: https://t.co/rvJX09ULph
— Apptopia (@Apptopia) March 16, 2023
This starkly contrasts the top 10 traditional banks and top 10 “digital-first” bank app downloads, which have fallen by around 5% and 3%, respectively, over the same period.
Last week, Silvergate Capital, Silicon Valley Bank, and Signature Bank shut down or halted operations, leading to crypto companies, investors, and traditional users scrambling to move their assets. Last week’s events significantly impacted Circle, the issuer of USDC, a stablecoin.
The circumstances surrounding the collapse of these banks raised questions about where people and companies should park assets and which entities are trustworthy. Amid this development, crypto assets rose as the United States government and the Federal Reserve (Fed) intervened to prevent an extension of the crisis.
Bitcoin and Ethereum, two of the largest cryptocurrencies by market capitalization, have posted impressive gains this week. BTC is trading above ,000 and remains the most dominant crypto asset.
The expansion in asset prices has seen the global crypto market cap rise by 8.3% to about .1 trillion when writing on March 17, according to CoinMarketCap data.
Fear Driving Crypto Prices
The banking crisis in the United States puts midsize and regional banks, like First Republic, under pressure. According to Reuters, First Republic had the third-highest rate of uninsured U.S. deposits behind SVB and Signature Bank, at about 9.5 billion.
The top 10 traditional banking apps saw a 5% download decline. Interest fell in banking apps like Capital One, Chase, Bank of America, Wells Fargo, Discover, Citi, and U.S. Bank.
Meanwhile, the top 10 “digital-first” apps posted a 3% decline as app users lost interest in, among other apps, Chime, Dave, Albert, Empower, Varo, MoneyLion, Current, Aspiration, Sable, and Oxygen.
According to Stefan Rust, CEO of Truflation, the current shift in investor sentiment towards cryptocurrencies is positive and unexpectedly supported asset prices. He believes the situation is similar to what happened in 2020 when investors fled traditional markets during the COVID-19 pandemic in favor of alternative assets.
Polygon Team Reports Apps On The Network Surge By 400%
While the crypto market remains in its winter, some other sectors in the industry are experiencing a steady rise, one of the prominent examples of these sectors is the operational teams in the Polygon network.
As of March this year, its total monthly active teams were around 8,000. However, recent data shows that the current monthly active teams for the network as of last month are about 11,800.
Meanwhile, the DApps (decentralized applications) on Polygon, the Ethereum scaling platform, has also attained a new high. Based on recent data, the total number of decentralized applications on the blockchain is now 37,000. This figure projects a 400% increase from the beginning of this year.
The blockchain team revealed this through a blog post on Wednesday. Sources stated that the information originated from Alchemy, a partnered web3 development company. The data provides the total number of applications the blockchain has launched on the mainnet and testnet.
We’re having quite a year at @0xPolygon
~500 dApps in November, now 37,000+ with 11.8k active teams.
“Many projects are increasingly choosing to build solely on Polygon. Alchemy data shows that 74% of teams integrated exclusively on Polygon”https://t.co/ERiLHJiVdh pic.twitter.com/UzKZPlazWD
— Ryan Wyatt (@Fwiz) August 11, 2022
According to the information, the number of active teams on the blockchain has hit 11,800. This figure shows a 47.5% increase in the last four weeks, dating from the end of July.
Reports On Polygon DApps
Reports from the project team cited an interruption regarding decentralized applications. The integrated teams on the polygon blockchain alone were 74%. On the other hand, those deployed on the blockchain and Ethereum were 26%.
Furthermore, the proof-of-stake blockchain is renowned for hosting decentralized applications from several notable projects.
These projects include Decentraland, The Sandbox of the Metaverse platform, and NFT marketplace OpenSea. Others include Animoca Brands, an NFT venture gaming/fund company, and Aave, a DeFi lending platform.
The reports indicate that the blockchain carries out its hosting tasks through its EVM (Ethereum Virtual Machine).
Moreover, over 142 million addresses are attached to the decentralized applications used on the Polygon blockchain. These are more pieces of information drawn from the blog post.
According to the post, these unique user addresses contain up to billion worth of assets secured on the network. Additionally, about 1.6 billion transactions are already carried out on the blockchain.
Ryan Wyatt, the CEO of Polygon, has expressed how excited he is about the growth. He revealed this on a Twitter post, noting that the team is experiencing a good year at the company.
MATIC’s price trends downwards on the chart. Source: MATICUSDT Tradingview
The Polygon team announced the primary cause of the growth of the decentralized applications earlier this year. They acknowledged that their partnership with the web3 development platform, Alchemy was what facilitated the growth of the DApps.
They added that the partnership made it easy for the Polygon developers to build decentralized applications.
Featured image from Forbes, Chart from TradingView.com
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Messaging Apps: Where Cryptocurrency And Conversation Collide
The global financial landscape is changing. Every day, more and more people start using cryptocurrency. But as the popularity of crypto rises, so does the number of adversaries hunting for unsuspecting victims in hope of stealing the tokens right out of their wallets. In a world where the privacy and security needs of users have evolved, major messaging apps are stuck in the past.
A large portion of the messaging app market is cornered by Meta Platforms (previously Facebook). It owns both WhatsApp, with 2 billion users, and Facebook Messenger, with 1 billion users. WhatsApp drew in much of its base through the promise of security via end-to-end encryption, and Facebook Messenger promises robust privacy through user controls. However, industry experts question either app’s ability to deliver on its claims – Meta Platforms is known for its involvement in a myriad of user data scandals. Given the company’s track record, it’s irresponsible to claim that either of its messaging apps is safe.
The next-popular messaging app is Telegram, with about half a billion users. While Telegram does offer end-to-end encryption for private chats, this alone is not enough protection. Telegram is popular among cryptocurrency enthusiasts, who commonly congregate in large chat groups to discuss various tokens and investment strategies. Anyone that has participated in one of these groups knows that they are heavily polluted by scammers and bots. With real money on the line, this is incredibly dangerous, especially for those who are new to cryptocurrency.
So far, no major messaging app has broken into the cryptocurrency space. Without catering to the cryptocurrency enthusiasts, these apps are turning their backs on the cryptocurrency community that turned two-cent Bitcoin into one of the best-performing assets of all time. Millions, or even billions, of users worldwide could be waiting to sign-up for a messenger that takes cryptocurrency seriously.
That’s exactly what we’re doing with TokLok, the world’s first secure messenger to utilize cryptocurrency tokens. With the needs of cryptocurrency investors in mind, we have pioneered advanced security features that make it the most secure messenger in the world.
First – a standard – TokLok offers encryption but goes far beyond that to ensure private correspondence. What makes TokLok unique is that it is a non-public messenger, meaning that users decide who can communicate with them. This is achieved using private chat rooms that give their hosts total control – only they can invite other users. As such, neither scammers nor bots can send unwelcomed messages, and hosts can limit who has access to their conversations.
Furthermore, TokLok guarantees total anonymity. Encrypted message content is automatically deleted, and TokLok does not collect or store any information about users or their correspondence. All together, these features enforce that only intended audiences are able to read messages and be involved in conversations. Whether messages are on the way to their recipients or being read, they are safeguarded.
We are also working on a feature that will enable users to connect directly, without going through cellular or internet networks. This feature will leverage secure Bluetooth technology to create long-distance connectivity meshes while preserving TokLok’s current security features.
Though our app is already developed, we have decided to go public via an Initial Coin Offering, or ICO. The sale of our TOL token (ERC20) will be used to fund the development of new features, such as our secure Bluetooth mesh, and to provide continuous security updates. In total, there will be three token sale rounds, each selling the TOL token for a higher price than the last. The first round is off to a good start, selling nearly 10% of its supply in the last few days. By providing what cryptocurrency users actually need, TokLok is set to become not just the most secure, but also the largest, messaging app in the world.