As the prospect of quantum computers breaking today’s cybersecurity standards edges ever closer, Johann Polecsak, co-founder of the QAN blockchain platform, argues that public blockchains such as Bitcoin, Ethereum, and Solana are still ill-equipped to adopt post-quantum cryptography without significant user impact. Post-Quantum Migration Risks Polecsak, an advocate for heightened awareness of imminent quantum attacks, […]
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Yield App Angel Launchpad: Finding Promising ICOs Without the Risks
The crypto bull market is well underway, with activity in the VC and early-stage funding sector mounting over the last few weeks as the highly anticipated Bitcoin halving approached. And, as the post-halving phase begins, increasing numbers of new projects are expected to come to market in search of funding. Indeed, the beginning of this […]
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Democracy Fails Without Cryptocurrency
Amidst a decline in traditional democratic structures and financial systems, cryptocurrencies emerge as a revitalizing force, offering a new form of accountability and transparency that could potentially restore public institutions. Cryptocurrency Might Be the Last Hope for a Crumbling Democratic System It’s become clear that democracy is in trouble, especially after the scale of disasters […]
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Binance Establishes Its First Board of Directors, Remains Without Global Headquarters
After years of operating without a board, Binance recently established its first board of directors, chaired by a former diplomat from Barbados. The cryptocurrency exchange still lacks a global headquarters. Some critics argue that the board members do not possess the necessary experience for an organization like Binance. Binance Remains Without Global Headquarters Binance recently […]
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Web3 OS Lowers Operating Costs Without Sacrificing Blockchain Security – Brendan Cooper
According to Brendan Cooper, a core contributor at Andromeda, the widespread distribution and adoption of the Web3 operating system (OS) will likely result in the emergence of new business models, much like what happened with the Web2 OS. The Web3 OS is also likely to simplify “how developers and users interact with the resources provided […]
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ZK Proofs Enable Defi Platforms to Meet Regulatory Requirements Without Compromising User Data, Says Ex-FCA Regulator
Diana Tlupova, Head of Compliance at Nexera ID, has argued players in the decentralized finance (defi) space can stay ahead of regulators who might want to impose stringent Know-Your-Customer (KYC) rules by using zero-knowledge (zk) proofs to authenticate user credentials. Tlupova contends that, in addition to allowing users to maintain control over their KYC data, […]
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‘Controversial’ Bitcoin Proposal to Curb Inscriptions Ignites Fierce Debate, Ends Without Resolution
On Friday, Jan. 5, 2024, the debate surrounding Bitcoin developer Luke Dashjr’s proposal to restrict all varieties of data-bearing transactions concluded as the topic veered into “controversial” territory. Bitcoin Core custodian and Blockstream staff member Andrew Chow terminated the Github dialogue, marking it as a “stalemate discussion.”
Intense Dispute Over Bitcoin’s Data-Carrying Transactions Culminates in Discussion Lockdown
The recent surge in Bitcoin Ordinal inscriptions has riled up the developers responsible for the protocol’s codebase. In September 2023, Luke Dashjr spearheaded a new pull request (PR) named “datacarriersize: Match more datacarrying.” In essence, the proposal aims to amend the datacarriersize parameter in Bitcoin to cap all varieties of data-bearing transactions. Dashjr, along with the proposal’s supporters, contend that Bitcoin’s code inherently curbs spam, and this PR is merely extending an existing datacarriersize restriction to another type of data.
Following its introduction, the proposal elicited a wide array of responses, with some individuals expressing approval of the idea while others firmly believed it to be fundamentally flawed. Peter Todd remarked that the “transactions targeted by this pull-req are a very significant source of fee revenue for miners.” Todd added that it is unlikely that bitcoin (BTC) miners would give up the revenue. “Censoring those transactions would simply encourage the development of private mempools – harmful to small miners – while making fee estimation less reliable,” Todd emphasized.
Chris Martl offered a dissenting opinion to Todd’s argument, asserting that the primary impact would be on node operators who would face increasing expenses. “The transactions targeted by this pull-req. are a very significant source of prohibitive cost for regular node operators,” Martl contended. “It is very unlikely that regular node operators will give up mitigating that source of operative cost. Regular policy rule for these transactions would encourage the economical resource usage of mempools – not harming any miners – neither changing any fee estimation already on the field,” Martl explained.
Pieter Wuille, also known as “Sipa,” disagreed with Dashjr’s proposal and argued that it did not serve the interests of Core’s software users. Wuille said that engaging in transaction relay and maintaining a mempool is crucial for forecasting upcoming block compositions. Willfully omitting transactions, despite their “clear (however stupid) economic demand,” undermines this predictive capability, without even negating the necessity to validate them upon mining. Wuille added:
I believe the demand for [block space] many of these transactions pose is grossly misguided, but choosing to not see them is burying your head in the sand.
The debate intensified, with numerous voices asserting that these transactions did not constitute spam, while others vehemently argued the opposite. “It seems to me that the proposed change here is more harmful than beneficial,” Mark “Murch” Erhardt wrote in response to Dashjr’s proposal. “Except that most new node runners are Ordinals indexers, and inscribers. Ordinals are here to stay, fork off or accept it,” another person insisted. On Friday, Bitcoin maintainer and Blockstream employee Andrew Chow shut the conversation down.
“It’s abundantly clear that this PR is controversial and, in its current state, has no hope of reaching a conclusion that is acceptable to everyone,” Chow said. “At this point in time, I see no reason to leave this open and to continue to send notifications for the constant back-and-forth stalemate discussion.” The discussion was then locked for being “too heated and limited conversation to collaborators.”
As the dust settles on the intense debate around Dashjr’s proposal to limit data-bearing transactions in Bitcoin, the development community stands divided. With voices raised high from both supporters and detractors, the conversation’s abrupt closure by Chow underscores the complexity and passion embedded in Bitcoin’s ongoing evolution. The discussion, though halted, leaves an indelible mark on the narrative of Bitcoin’s development and the diverse community that surrounds it.
What do you think about the discussion concerning Dashjr’s proposal and the conversation getting locked over being too heated? Share your thoughts and opinions about this subject in the comments section below.
Philippines Securities Regulator Says Binance Is Operating Without a License
Crypto exchange Binance is not a registered corporation in the Philippines hence its activities in the country are not above board, the Asian country’s securities regulator has said. The regulator warned of a possible jail term for individuals found enabling Binance’s activities in the Philippines.
Licensed Overseas Organizations Still Need to Get Local Approval
According to the Philippines securities regulator, crypto exchange Binance is not a registered corporation and has been operating without the necessary license or authority. In an advisory issued on Nov. 28, the Asian country’s Securities and Exchange Commission (SEC) alleges that Binance has been “actively employing promotional campaigns” despite not having the requisite license.
Explaining why it has warned Filipinos against using Binance, the SEC said it is aware that some online crypto exchange platforms are in possession of licenses issued by overseas institutions. However, the regulator insists brokers and crypto exchanges still need to obtain licenses from it before selling or offering securities and investment products to the public.
To get the license, operators of crypto exchange platforms must submit an application for registration together with details on the issuance price, use of the proceeds as well as the nature of the securities. Also, they must be in possession of “a secondary license to sell offer securities to the public.”
Possible Jail Term for Offenders
The SEC claimed that since Binance has not submitted an application for registration it is therefore in violation of the relevant section of the Securities Regulation Code (SRC).
Meanwhile, in addition to advising against the use of Binance, the regulator revealed the penalties that offenders face.
“Those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of the Binance platform in selling or convincing people to invest in this platform within the Philippines even through online means may be held criminally liable under Section 28 of the SRC and be penalized with a maximum fine of five million pesos (P 5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC,” the SEC said.
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Ghana’s Central Bank Names Eight Money Transfer Companies Operating Without Its Approval
The Bank of Ghana recently pointed the finger at eight money transfer organizations which are allegedly operating in Ghana’s remittances and forex market without its approval. The central bank also warned the public and regulated financial institutions against having dealings with the eight firms.
Eight Firms Did Not Adhere to the Requirements of the Foreign Exchange Act
The Ghanaian central bank has identified eight money transfer organizations (MTOs) that are operating in the country’s remittances and forex markets without its approval. In a notice issued on Nov. 16, the Bank of Ghana (BOG) also warned the public and regulated financial institutions against having dealings with said MTOs.
According to the notice, the eight MTOs are Lemfi, Wise, Transfer Go, Xoom-A Paypal Service, Sendvalu, Boss Revolution, BTC-AZA Finance, and Supersonicz. The notice said each of the above MTOs is violating Section 3.1 of the Foreign Exchange Act, 2006 (Act 723). This law states that no person should “engage in the business of dealing in foreign exchange without a licence issued under this Act.”
Furthermore, section 15.3 of the same law specifically states that any movement of foreign exchange to and from Ghana should be done by persons with the requisite licenses. The central bank also reminded approved MTOs that they should adhere to the requirements of their respective licenses at all times.
“Approved MTOs are hereby reminded to terminate their foreign exchange flows through their partner institutions only and to adhere strictly to all guidelines in respect of their operations,” the bank explained.
Ghana’s Foreign Exchange Woes
Ghana, like many of its fellow African countries, has grappled with a shortage of foreign exchange on the official market. The shortage has not only increased pressure on the local currency’s exchange rate versus the U.S. dollar but has also fueled inflation. As previously reported by Bitcoin.com News, the Ghanaian cedi was one of the world’s worst-performing currencies in 2022.
Ghanaian monetary authorities have since adopted several measures which are aimed at restricting the forex parallel market’s influence on the economy. Some of these include the suspension of licenses of financial institutions caught on the wrong side of the law.
In its latest such action against supposedly errant institutions, the BOG said on Nov. 20 it had imposed a fine and suspended the “forex licence of Zeepay Ghana Limited from 27th November 2023 to 8th December 2023.”
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Prosecutors Probe Sam Bankman-Fried’s Memory in FTX Case Without Jury
Federal prosecutors questioned Sam Bankman-Fried in an ongoing hearing on Wednesday about his message deletion practices and the alleged use of customer funds while he was CEO of now-bankrupt crypto exchange FTX.
FTX Founder Faces Intensive Cross-Examination by Prosecutors in Ongoing Trial
Prosecutors focused on Sam Bankman-Fried‘s use of the encrypted messaging app Signal, including his enabling of auto-delete features in 2021. Bankman-Fried said he did not seek specific legal approval for auto-deleting messages, but believed it was allowed under FTX’s document retention policy implemented that year. Bankman-Fried’s testimony was recorded by Matthew Russell Lee from the Inner City Press.
When asked if he should have preserved messages with former Alameda CEO Caroline Ellison containing financial spreadsheets, Bankman-Fried replied “Yes. For example, verbal discussions were not required to be reported.” Prosecutors also questioned if Bankman-Fried violated the policy by deleting messages about shutting down Alameda and its reported billion hole. He responded:
I don’t recall such conversations.
Prosecutors also asked about FTX customer funds being transferred through Alameda entity North Dimension bank accounts. Bankman-Fried signed documents listing it as a trading firm but said he was not aware of it actually conducting trades. When asked if he discussed the use of the account to accept customer funds with lawyers, Bankman-Fried said, “I’m not entirely sure.”
Bankman-Fried claimed he did not discuss with lawyers that the funds were coming from FTX customer accounts. “I would not characterize it that way. So no, I didn’t discuss that with lawyers,” he stated. Bankman-Fried maintained during testimony that he did not believe he should embezzle customer assets. He expressed this sentiment at a moment when responding to the prosecutor’s question wasn’t obligatory. Nevertheless, he emphasized his perceived necessity to provide an answer.
“You don’t have to answer after sustained,” Bankman-Fried’s lawyer Mark Cohen said. “Haven’t you been here for four weeks?”
The proceedings in Judge Kaplan’s courtroom are set to resume Friday morning Eastern Time (ET), with the prosecution team gearing up for an extensive line of inquiry. Despite facing multiple charges, Bankman-Fried has maintained a stance of innocence, entering a not guilty plea to all allegations. It’s noteworthy, just like the first part of his testimony, that the federal prosecutors conducted their interrogation in the absence of a jury.
What do you think about Bankman-Fried’s testimony and cross-examination by federal prosecutors? Share your thoughts and opinions about this subject in the comments section below.