Hodl Hodl, a non-custodial Bitcoin exchange, has announced changes to its “Terms of Service” agreement affecting the availability of its lending services. The platform is now excluding residents of the U.S. as well as U.N. embargoed countries from its lending platform, citing “regulatory uncertainty” as the reason behind these changes. Hodl Hodl to Exclude US […]
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China Expands Digital Yuan Pilot: Hong Kong Residents Can Now Set up E-CNY Wallets Locally
The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBOC) have advanced the digital yuan (e-CNY) pilot for payments, aiming to increase e-CNY wallet usage in Hong Kong. Residents can now set up and top up wallets via the Faster Payment System (FPS), marking the first global linkage of a faster payment […]
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Wealthy London Residents Reportedly Use Cryptocurrency for High-End Property Rent Payments
Some of London’s wealthy residents are reportedly using cryptocurrency to pay for luxury home rentals. High interest rates and a dampened real estate market have led the city’s affluent residents to opt against buying properties. The acceptance of payment in cryptocurrency demonstrates the real estate agency’s openness and its eagerness to become “a leader within […]
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Australian Cash Use in Decline as 75% of Residents Now Seen as ‘Low Cash Users’
On Dec. 12, Michele Bullock, the governor of the Reserve Bank of Australia, revealed that as much as 75% of Australians are now considered to be “low cash users.” Bullock also noted that the reduction in the use of cash for transactions is putting a strain on the cash distribution system.
Australian Senior Citizens Still Using Cash
According to Michele Bullock, the governor of the Reserve Bank of Australia (RBA), the share of payments made via cash fell from 70% in 2007 to just 13% in 2022. This decline in cash’s share of payments by Australians is further exemplified by the over 0 million (AUD 1.1 billion) drop in the total value of cash in circulation during the 2022-23 financial year.
Bullock, who spoke at the recent Australian Payments Network Summit, said cash is still an important means of payment and storing value for some residents. For instance, while three-quarters of Australians are now seen as “low cash users,” the elderly and those residing in certain regional areas use cash for at least 80% of their purchases.
However, despite remaining an important method of payment, the scale of the drop in cash use has created new problems for the central bank.
“The challenge we face is that as the transactional use of cash declines, it is affecting the economics of providing cash services and putting pressure on the cash distribution system,” Bullock said.
To highlight the extent of the problem, Bullock revealed that Linofox Armaguard, a cash transporter whose merger with rival Prosegur was approved earlier in the year, is now blaming the decline in cash use for its misfortunes. Bullock said Australia is now looking at solutions such as the cooperative model which has been proposed by countries that face similar problems.
The RBA governor also suggested that Australians’ declining use of cash is forcing banks to reduce the number of cash access points including ATMs and bank branches. In the future, this will likely see residents traveling farther to access cash, Bullock added. Interestingly, the Australian state has for years forcefully limited the use of cash by way of its legal system.
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Nigerian Central Bank Warns Counterfeiters as Residents Reportedly Grapple With Cash Shortages
As Nigeria grapples with cash shortages, the country’s central bank warned of the presence of counterfeit, higher-denomination naira banknotes. The bank has urged members of the public to report anyone suspected of falsifying or counterfeiting the banknotes.
Central Bank Collaborates With Nigerian Agencies
The Central Bank of Nigeria (CBN) has issued a warning to residents of the West African nation to be on the lookout for counterfeit naira banknotes that are circulating “in food markets and other commercial centres across major cities in the country.” The bank has warned that individuals caught falsifying or counterfeiting the banknotes face a prison term of no less than five years.
Press Release: Beware of Counterfeit Naira Banknotes in Circulation. pic.twitter.com/CWxGDyiSmZ
— Central Bank of Nigeria (@cenbank) December 8, 2023
The CBN’s confirmation of the presence of counterfeit naira banknotes comes as Nigerians grapple with cash shortages. According to a Techeconomy report, which has now been taken down, Nigerians in different parts of the country are having to contend with ATMs that are not dispensing cash.
The central bank, however, insists that there are no shortages and has identified panic withdrawals by some members of the public as the cause of the artificial shortages.
Meanwhile, in its Dec. 8 post on X, the Nigerian central bank revealed that it is working in concert with relevant security and financial agencies to seize the fake banknotes. The CBN also urged members of the public to do their part in helping to weed out said banknotes.
“Members of the public are also encouraged to report anyone suspected of having counterfeit banknotes to the nearest police station, branch of the Central Bank of Nigeria or via contactcbn@cbn.ng.gov,” the bank said in a statement.
The CBN also implored all financial institutions, currency changers, and the public to do more to curtail the acceptance and distribution of fake banknotes. In addition, the Nigerian Central Bank told residents that by embracing alternative payments, they help to “mitigate the risk of spreading counterfeit banknotes.”
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Residents of Swiss City of Lugano to Pay Taxes With Bitcoin
Citizens of the Swiss city of Lugano can now settle their tax bills and other community fees with bitcoin and the stablecoin tether. By adding crypto to payment options, Lugano joins three other Swiss cities and cantons which already accept crypto payments.
Accelerating the Use of Bitcoin
The Swiss city of Lugano announced on Dec. 5 that it has added cryptocurrencies to its list of acceptable payment options. This means that city residents can now settle tax bills and all other community fees with Bitcoin (BTC) or the stablecoin USDT.
Previously, Lugano residents could only use this payment option for transactions made on the city’s online platform. However, according to a statement from Bitcoin Suisse, previous restrictions have been removed. Residents can now use crypto to settle regardless of the nature of the service rendered or the amount invoiced.
Commenting on the city of Lugano’s decision to accept crypto payments, Armin Schimd, the chief product officer at the crypto-native pioneer and trusted gateway Bitcoin Suisse said:
We are delighted to support the city of Lugano in accelerating the use of Bitcoin technology as the foundation to transform the city’s financial infrastructure. It is great to see that more and more Swiss municipalities are offering payments in cryptocurrencies as an option available to both citizens and companies, complementing traditional payment methods such as post office counters or e-banking platforms.
According to a statement, Lugano has become one of the first cities to accept cryptocurrencies as a payment option, making payments more flexible and modern for everyone. Other Swiss cities that have similarly embraced crypto payments include Zug, the Canton of Zug, and the municipality of Zermatt.
By taking this step, Lugano aims to integrate blockchain and BTC into various aspects of daily life in the city. Bitcoin Suisse is the Swiss city’s technical infrastructure provider.
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South African Crypto Premium Surge After Kraken Abruptly Starts Blocking Deposits by Local Residents
The premium on crypto assets listed on South African exchanges briefly surged to 3.5% after Kraken’s abruptly started blocking deposits from users based in the African country. Some South African crypto experts have linked Kraken’s decision to the Financial Action Task Force’s recent addition of the African country to its greylist.
Impact of the FATF’s Greylisting
According to a report, the U.S.-based crypto exchange Kraken’s recent decision to stop accepting deposits from South African nationals briefly saw the premium on crypto assets like bitcoin surge to 3.5%. Before Kraken’s announcement, the premium or arbitrage, which is the gap between prices of crypto assets on global exchanges and South African exchanges, had reportedly ranged between 0.7% and 1.5%.
As explained in a report published by Moneyweb, Kraken made the sudden decision to block South African deposits after its banking partner placed the African country on its anti-laundering blacklist. Some South African commentators have linked the unnamed banking partner’s move to the Financial Action Task Force (FATF)’s decision to place the country on its greylist.
Earlier this year, a Bitcoin.com News report said the African country had been added to the FATF’s greylist even after it designated crypto assets as financial products. Some analysts predicted that the move would affect South Africa’s ability to secure loans from foreign banks. At the time, the country’s central bank vowed to “strengthen its supervision and further enhance the dissuasiveness and proportionality of administrative snactions issued.”
Kraken Follows Circle in Blocking Deposits by South African Residents
Meanwhile, the report by Moneyweb suggested that Kraken’s abrupt decision had impacted many local crypto arbitrage market participants. However, according to the report, market participants such as crypto arbitrage and forex specialists like Future Forex have since found alternatives.
Commenting on Kraken’s decision, which reportedly came a few months after Circle similarly stopped accepting deposits from South Africans, Omer Iqbal of Fivewest, a crypto arbitrage service provider, said:
“We don’t use Kraken, so our arbitrage services are unaffected. The premiums shot up on Monday [Aug. 28] because there are a number of different arbitrage companies using Kraken as their primary source of trading for their clients. Whenever you get restricted volumes, you get higher premiums, so this is good news for those [of] our clients who are not reliant on Kraken.”
Kyle Dowie, the co-founder of another crypto arbitrage provider Dooya is quoted in the same report stating that Kraken’s announcement had caught many players off guard. However, Dowie hinted that the arbitrage will eventually drop when Kraken unveils a new local banking partner.
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Kenyan Residents Asked to Participate in a ‘Public Survey on Virtual Assets’
Kenya residents who wish to shape their country’s policy towards the crypto ecosystem can now do so by participating in a public survey on virtual assets and virtual assets service providers, the Financial Reporting Centre (FRC) has said. The FRC says the public’s feedback “will play a vital role in shaping the future of the virtual assets ecosystem and promoting a safer and more transparent financial system.”
Crypto Growth and Financial Innovation
Kenya’s Financial Reporting Centre (FRC) has asked residents of East Africa’s largest economy to participate in its ongoing public survey on virtual assets and virtual assets service providers (VASPs). FRC, a statutory body established under Kenya’s anti-money laundering law, says the anonymously shared feedback is expected to help authorities better understand the country’s crypto ecosystem.
Participate in the Public Survey on Virtual Assets (VAS) and Virtual Assets Service Providers (VASPs) in Kenya!
@FRC_Kenya is calling on the public to anonymously share their insights and opinions on the growing world of virtual assets.
#BlockchainKenya pic.twitter.com/TbBk84ymNM
— Blockchain Association of Kenya (BAK) (@BlockchainKenya) August 17, 2023
In a statement left on its website, the anti-money laundering body acknowledges the rapid growth of the ecosystem as well as the space’s potential ability “to spur financial innovations and efficiency.” The organization however argued that the crypto market’s rapid growth can also present opportunities for illicit activities like money laundering and terrorism financing.
Therefore, in order to protect the Kenya financial system and consumers, the FRC said it wants Kenyans to share their thoughts via the survey. The body added:
Your feedback will play a vital role in shaping the future of the virtual assets ecosystem and promoting a safer and more transparent financial system. The FRC appreciates your participation and looks forward to receiving your input by 8 September 2023.
According to the FRC, prospective survey participants can share their thoughts via the six-page form on its website. As claimed on the form, the information gathered during the survey period “will only be used to help drive policy decisions with regard to the crypto industry in Kenya.”
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Kenyan Data Regulator Issues Warning as Residents Rush to Get Worldcoin’s ‘Free Money’
The Kenyan data regulator said it is conducting an “assessment of Worldcoin’s practices to ensure compliance with the law.” The data regulator has urged “increased vigilance” by Kenyans who are signing up to receive Worldcoin’s “free money.” Immaculate Kassait warned of the consequences to token recipients and issuers should the data regulator fail to ensure Worldcoin and others’ compliance with the law.
Kenya’s Data Protection Laws
The Kenyan data regulator, the Office of the Data Protection Commissioner (ODPC), has called for “increased vigilance” by residents seeking to get their hands on Worldcoin’s “free” tokens. In a statement issued via Twitter on July 28, ODPC stated that Worldcoin’s activities in the East African nation are governed by the country’s 2019 Data Protection Act.
STATEMENT: @ODPC_KE Calls for Vigilance from the Public as It Engages WorldCoin on Compliance with Data Protection Act, 2019. pic.twitter.com/xoY7uOqcNG
— OFFICE OF THE DATA PROTECTION COMMISSIONER (@ODPC_KE) July 28, 2023
According to the data regulator, the Kenyan protection data law gives the ODPC the authority to conduct assessments or request information which helps it ascertain if Worldcoin is adhering to the law. The ODPC added:
As the ODPC conducts its assessment of Worldcoin’s practices to ensure compliance with the law, Kenyans are urged to ensure they receive proper information before disclosing any personal or sensitive data. Individuals are advised to thoroughly inquire about how their data will be used.
In the same statement, Kenya’s Data Commissioner, Immaculate Kassait is quoted warning of the consequences for the token recipients and issuers should the ODPC fail to ensure Worldcoin and others’ compliance with the law.
Worldcoin Free Money
The warning by the Kenyan data regulator follows reports that hundreds of residents had rushed to get their eyeballs scanned by Worldcoin orbs located at the supermarket chain Quickmart’s 13 outlets in Nairobi. According to a report in The Nation, residents who signed up and had their eyes scanned by the Worldcoin orb received 25 WLD tokens. Some of the token recipients reportedly converted their WLD tokens to USDT before eventually converting the stablecoins to Kenyan shillings.
Some of the young Kenyans who rushed to get their eyeballs scanned only did so after learning of the opportunity to get easy money via the WLD tokens.
“I was here by 5 am because there has been a lot of talk on Tik Tok and Instagram about the free money Worldcoin is giving all those who download their app and subscribe, we are for the iris scanner so that we can be sorted,” Brian Mwangi, one of the WLD token recipients, said.
The Kenyan data regulator’s investigation comes after the French National Commission for Informatics and Liberty (CNIL) launched a similar inquiry into Worldcoin’s practices.
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Bitwage Purges USDC Payments for US Residents Due to a ‘More Strict Regulatory Climate’
Bitwage, a cryptocurrency payroll company, has announced it will remove USDC-based payments for U.S. residents. In an email sent to U.S.-based customers, Bitwage explains removing the second-largest stablecoin by market cap from its platform is related to a “more strict regulatory climate” in the U.S. regarding crypto.
Bitwage Drops USDC Payments in the U.S.
Crypto payroll solutions company Bitwage has announced that it will drop USDC from its supported currencies for U.S. residents. In an email sent to customers affected by the measure, Bitwage informed that the company would be disabling this kind of payment due to a “more strict regulatory climate” in the country.
The email, sent to customers on July 5, advises customers using USDC as a means of payment to remove it from Bitwage’s platform.
The company explained that if not withdrawn by July 13, affected customers would have all their wallets and bank accounts reset on the platform, forcing them to set up their payment data again before collecting their next paycheck.
Bitwage also informed this measure would only affect U.S. residents and that other customers would be unaffected. It further highlighted that U.S.-based customers will continue to receive payments using bitcoin and other stablecoins, including DAI, CUSD, and USDT, without further details.
Causes and Effects of the Measure
The issue of stablecoins and the advantages and risks involved in their utilization has been in the sight of regulators since the collapse of UST, the native stablecoin of the Terra ecosystem. In June, the House Financial Services Committee released a third draft of a stablecoin bill, which has been one of the priorities of Committee Chair Patrick McHenry.
Matt Ahlborg, a market research consultant at Bitrefill, stated the immediate effect of these regulatory changes in the U.S. regarding stablecoins might cause people to consider other, non-stablecoin options for receiving payments.
Ahlborg explained:
Utility usage of BTC has waned in recent years as stablecoins gained ground, but increasing restrictions on stablecoins will likely swing the pendulum back towards BTC.
Bitwage’s actions in the U.S. are very different from what the company does outside the country. In June, Bitwage announced a partnership with Vibrant Wallet to make the payments process seamless, advertising USDC on the Stellar blockchain as an enabler of “seamless, near-instant, low-cost cross-border payments, remittances, and next-gen treasury management.”
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