28 September

“Native tokens of leading decentralized trading platforms are surging as the biggest centralized exchanges, Binance and Huobi, cut back on China to comply with local regulations.

Decentralized finance (DeFi) coins have picked up in the wake of China’s blanket ban on virtual currency-related businesses announced Friday, and Huobi’s decision to stop serving mainland Chinese investors. The crypto market is perhaps pricing an impending shift in trading volumes to the supposedly censorship-resistant DeFi rails from centralized exchanges.

According to China journalist Colin Wu, Chinese users will flock to DeFi platforms, bringing solid user growth to MetaMask and dYdX.

All Chinese communities are discussing how to learn DeFi.

dYdx has registered a trading volume of more than $4.3 billion in the past 24 hours, surpassing the Nasdaq-listed centralized crypto exchange Coinbase’s $3.7 billion.

Synergia Capital’s Denis Vinokourov told CoinDesk that the great rotation into all things DeFi has begun, and the sub-sector could see a prolonged bull run. Spartan Capital’s general partner and head of research, Jason Choi, tweeted that overregulation would be a bullish catalyst for DeFi.”

See Also: Huobi outlines plan for Chinese investors after halting crypto trading
See Also: Chinese Ethereum Mining Pool SparkPool to Halt All Services Due to Crackdown

“Aave Arc may be close to onboarding its first “whitelister” – a possible step towards institutional users integrating with the decentralized lending platform.

Aave Arc is an implementation of the Aave version 2 code designed to allow institutions to enforce regulatory compliance. Whitelisters would ensure that users of these permissioned lending pools comply with relevant laws depending on the jurisdiction of the user.

Fireblocks’ R&D, compliance and legal teams have developed a new whitelister framework for permissioned DeFi. This framework meets both enterprise-grade requirements for accessing DeFi and adheres to Aave Arc’s whitelister governance criteria.

Approving Fireblocks could also lead to integrations enabling new products, ‘such as the onboarding of regulated fiat on/off ramps and protocol deployments connected to debit cards, high yield savings accounts and other innovative fintech products.’

See Also: Atari Founder Is Launching Augmented Reality NFTs on Ethereum

“Up north in Canada, all is quiet. The debate over whether cryptocurrency exchanges need to register with Canada’s version of the SEC has already been settled. In a March 2021 notice, the Canadian Securities Administrators confirmed that crypto exchanges do need to be registered with a securities regulator.

To bring Coinbase and Kraken under the jurisdiction of securities law, the CSA has created a new catch-all term: a crypto contract. Crypto contracts are securities, and because Coinbase and Kraken offer them these platforms come under the ambit of Canadian securities law.

Pretty much everyone (including Canada’s regulators) agree that bitcoin is not a security. But according to the CSA, the bitcoin that a Coinbase client holds in their Coinbase account isn’t actually bitcoin. It is a contractual right or claim to underlying bitcoin, or as the CSA terms it, a crypto contract. Furthermore, the CSA deems all crypto contracts to be securities, even if the underlying crypto, say bitcoin, isn’t itself a security.

The CSA’s assertion about crypto contracts is one that ‘no other international securities regulator has yet taken.’ Will large U.S. exchanges like Kraken and Coinbase that serve Canadians choose to comply with Canadian securities laws?

The CSA’s list of requirements is long and demanding. Many exchanges won’t meet the CSA’s requirements, or can’t. But Canadian cryptocurrency venues such as Wealthsimple and Coinberry have fallen into line. And they don’t seem too salty about it, either. From the perspective of consumers, I’d argue the Canadian approach makes a lot of sense.

Whether Canada’s approach to crypto regulation becomes another export to the U.S., along with maple syrup or hockey, remains to be seen. But you can be sure that Gary Gensler is watching and pondering the idea of crypto contracts.

“On Monday, Coinbase announced “Get paid in crypto,” a new service that will let nearly anyone in the U.S. who gets paid by direct deposit receive all or part of their wages in Bitcoin, Ethereum or various other cryptocurrencies.

Coinbase is working with major payroll and HR companies to let millions of workers get paid in crypto. Coinbase is billing the service as the “future of payroll.”

You can set up direct deposit in just a few steps without leaving the Coinbase app. Find your current payroll company or employer and we’ll automatically update your paycheck allocation.

Coinbase’s direct deposit offering follows a nascent push by 401k providers to let employees put crypto in their retirement accounts, reflecting how crypto is becoming increasingly mainstream in the broader American workforce.”

See Also: Revolut to Launch Crypto Token: Sources

Pelosi announced that the house will vote on whether to pass the Biden administration’s controversial $1 trillion bipartisan infrastructure bill on Thursday, Sept. 30. However, the infrastructure bill faces opposition from some lawmakers who believe it should be held back until negotiations have ended regarding the follow-up $3.5 trillion social welfare and climate bill.

Tomorrow, September 27, we will begin debate on the Bipartisan Infrastructure Framework on the Floor of the House and vote on it on Thursday, September 30.”

“Shares of crypto-focused bank Silvergate Capital Corp. rose about 6% Monday after Morgan Stanley initiated coverage of the stock with an overweight rating and a $158 price target, indicating a 52% upside from the current price.

Silvergate gives bank investors a nearly pure-play way to participate in the rapid growth of the nascent cryptocurrency industry.

Silvergate Bank accepted a whopping $4.3 billion in new deposits from new and existing digital currency customers in the second quarter, the company announced in July.”

“CTX sold tokens corresponding to 5,000 metric tons of carbon credits generated by a wind project in Zhangjiakou. To issue a token, companies verify their carbon credits with a third-party agency, and then “freeze” the carbon credits at China’s national carbon trading market.

Tokens contain shared carbon information including emission records and tracing, carbon offsetting, carbon capture, storage, and reuse.

China launched its carbon trading market in July. The market is predicted to be the world’s largest once it is fully operational.”

See Also: Ethereum Developer Virgil Griffith Pleads Guilty to Conspiracy Charge in North Korea Sanctions Case