Whaaatsup, fabulous humans! ???? Today’s your lucky day because we’ve whipped up a batch of mind-bending stories to rock your world! So cancel all your plans, buckle up, and let’s dive in!
???? US is making it harder to start a crypto business
???? Are DEFI= Crypto Exchanges??
????️♂️ Crypto Bailing Putin out of sanctions? Say what
???? CBDCs: Who really benefits?
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Want To Start A Crypto Business? Pay 1900% More
???? Hold on tight, because the New York Department of Financial Services (DFS) is flexing some serious regulatory muscle yet again. The DFS has issued a spanking new regulation for BitLicense holders, meaning that they can now bill virtual currency businesses for supervisory costs.
PS: A BitLicense is like a business license for trading crypto, issued by the bigwigs at the New York Department of Financial Services.
???? As of 2020, only 25 companies held a BitLicense, so this new rule won’t affect too many players. But, for those crypto startups that do hold the license, the costs of obtaining it can be upwards of $100,000, which is enough to make even the most seasoned hodler sweat. ????
FYI: Getting a BitLicense used to cost only $5000.
???? To top it off, BitLicense holders will be billed five times during fiscal year 2023-2024. It’s like an ongoing haunted house ride, except it’s your bank account getting spooked every quarter. ????
???? The DFS is also not messing around when it comes to cybersecurity and anti-money laundering protocols that crypto firms will have to meet. It’s like being regulated just like a bank or insurance company.
???? But let’s look on the bright side – oh! Wait there is none!
What’s In A Name?
What’s in a name, amirite? Apparently, everything if you’re calling yourself a crypto exchange.
The SEC is back at it again, ???? reopening public comments on expanding their definition of an “exchange” to include decentralized finance (DeFi) platforms under their control.
However, not everyone is a fan of this move.
In fact, SEC Commissioner Hester Peirce aka Crypto Mom is throwing some serious shade at the agency, seeing it as a sneaky way to prevent new tech from flourishing.
Peirce wrote a statement titled “Rendering Innovation Kaput” to express her strong disagreement with the proposed amendment.
What is this Amendment? If passed, the new rule would give the SEC oversight over DeFi platforms, limiting their activities and even requiring them to centralize.
Peirce thinks this is a major bummer ???? because the Commission is supposed to be regulating the innovation, not squashing it. She also says that the new rules are way too confusing ???? and could lead to the decline of the crypto sector. And hey, we couldn’t agree more.
Can Crypto bail Putin out of sanctions? ????
Let’s talk geopolitics for a moment, shall we? It’s been a year since Russia’s invasion of Ukraine led to widespread sanctions by the US and its allies. With one major question on everyone’s mind… Can cryptocurrency provide a loophole for Russia to evade these international sanctions?
???? The answer…..NO WAY! Why? Coz there’s simply not enough liquidity in the entire cryptocurrency market to support a G20 economy – and certainly not enough to fund an increasingly costly war.
???? But that’s not stopping PRO-Russian organizations from raising hundreds of thousands in crypto donations!
???? On the flip side, there’s been a surge in crypto donations in support of Ukraine.
???? While crypto can’t solve geopolitical conflicts, it’s clear that this technology has a role to play in funding humanitarian aid and defense efforts.
CBDCs: Who really benefits? Hint – it’s not the public ????
The ????Cato Institute is not coy in their ????assessment of Central Bank Digital Currencies (CBDCs). In their latest policy ???? paper, they slam CBDCs — Here’s How:
CBDCs could enhance financial ????inclusion, but the Cato Institute argues that it’s unlikely to convince people who don’t trust banks or the government to set up an account. Oof, feels like a ????️catch-2
And, ????privacy? Forget about it! The government may not be trusted, and central bankers worldwide have already stated they aren’t interested in anonymity.????
While a no-fee CBDC account might ditch the unreasonable costs, it ultimately allows the larger problem to creep in: ????money and ????finance aren’t the same things
CBDCs are useless for financial inclusion, too late for payment improvements, incapable of advancing monetary policy, and a non-starter when it comes to maintaining the dollar’s world reserve currency status.
Honorable Mentions
- SEC charges Biitrex with operating unregistered securities exchange
- Silk Road Hacker Who Once Held Over $3,000,000,000 in BTC Sentenced to Prison by Feds 11 Years Later
- Do Kwon Hired South Korean Law Firm Just Before Terra’s $40 Billion Crash
Twice weekly crypto goodness, coming your way! Catch us every Tuesday and Friday.
