- Binance signed an MoU with the Digital Transformation Ministry of Ukraine.
- Binance will assist in developing “transparent and effective mechanisms” for digital asset transfer
Binance recently announced that the company has signed a memorandum of understanding (MoU) with the Digital Transformation Ministry of Ukraine. They will jointly work together to establish “the potential legal status of virtual assets and currencies in the country.” In the company’s official blogpost, Binance stated that it will assist with the development of “transparent and effective mechanisms for the transfer of rights to any virtual assets or currencies using blockchain technology as well as beneficial conditions for investments and business in Ukraine.”
Mykhailo Fedorov, Ukraine’s Vice Prime Minister and the Minister of Digital Transformation, spoke on the matter saying:
At last, Ukraine is finally in a situation where the executive, legislative authorities and market have come to an understanding of the regulation of the Ukrainian cryptocurrency market. By the end of this year, the Ministry of Digital Transformation, together with Members of Parliament and representatives of commercial companies, plan to finish work on the relevant bills and present them to our parliament. The Ministry intends to create a comfortable, competitive environment for the crypto industry in Ukraine.
Fedorov further added:
By signing the Memorandum with Binance, we open Ukraine to one of the largest cryptocurrency exchanges in the world and let Binance legally start their business here. Thanks to this step, both Ukrainians and global cryptocurrency companies will be able to operate in Ukraine openly and transparently. In addition, we welcome Binance’s willingness to provide us with advisory assistance as the experience of one of the leading world players in this field is very useful for us at the stage of forming the legislative framework and the conditions for market regulating.
CEO of Binance Changpeng “CZ” Zhao said:
The legalization of cryptocurrencies and corresponding adoption of progressive legislation in this sphere can become one of the key drivers in stimulating positive growth in the Ukrainian economy as well as attract additional investments to the country…
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Bitfinex, Binance’s digital assets similar to Dutch revolt-era annuities: Report
In a recently published report, researchers from Adamant Capital have compared the modern-day Bitcoin economy to that of Europe between the 16th and 17th centuries. Titled ‘The Bitcoin Reformation,’ the report draws fascinating parallels between the two economies separated by time, as well as the behavioral tendencies of investors and market sentiments.
“In the Bitcoin community, in response to a cultural aversion of trusted third parties, high risk of theft and loss, and long-term regulatory uncertainty, we expect increased adoption of highly secure, trust-minimized bitcoin deposit banking solutions.”
The report stated that the most trust-minimized solutions are those designed to render theft or fraud extremely difficult, adding that the growing adoption of multi-sig addresses for Bitcoin storage is likely a promising start for a much bigger trend.
In 16th century Europe, the Amsterdam Wisselbank (AWB) and its money’s “intrinsic superiority to currency” had played a key role in the prosperity of the Dutch republic. Despite the institution charging exorbitant fees on storage, transactions, and withdrawals, their notes were traded at a premium versus the actual gold and coins they were backed by. The report also compared the behavioral patterns of merchants in terms of the insurance they bought to current insurance trends in the Bitcoin space.
16th century Europe saw the first-ever modern IPO when the Dutch East India company did a public offering, creating a market of highly liquid shares that were also desirable as collateral. This made them perfect assets for a flourishing derivatives market and according to historian L.O. Petram, “after the period 1630-50, investors were primarily interested in the financial services the secondary market provided, rather than in the East India trade itself.”
These historical VOC shareholders shared similarities with modern-day Bitcoin savers, the latter of whom are also long-term committed, have a relatively high concentration of their wealth tied up in the asset and don’t like to sell, since it leads to capital gains taxes.
“We expect the use of Bitcoin as collateral for borrowing to become increasingly widespread, [and] are also bullish on Bitcoin derivatives markets. Our hypothesis is that the sectors in which price volatility impacts an economy the most will grow the largest derivatives markets: VOC shares in 16th century Amsterdam, agriculture and precious metals in 1980, interest rates today, and tomorrow, perhaps Bitcoin.”
The researchers also pointed out parallels between historical annuities issued by Dutch cities and today’s IEO tokens. Similar to how annuities enabled the cities to raise capital during the Dutch revolt, Bitfinex, Binance, Huobi and other large exchanges have launched digital assets exhibiting annuity-like characteristics. The trust shown towards the entity issuing annuities, who provided no guarantee of receiving the collateral back, is reflected today in the loyal customer base Bitcoin exchanges have built for themselves.
“In analogy, we expect a continued popularity of these annuity-like offerings among offshore Bitcoin exchanges and crypto trading millennials. Over time we expect the emergence of life insurance mutual companies. Inflation dampens demand for life insurance over time, and so conversely if Bitcoin-as-hard-money sees widespread adoption, it is logical for life insurance products to become highly popular once more.”
Binance Is Surpassing Huobi Exchange Volume in China: New TokenAnalyst Report
hina banned local exchanges and cryptocurrency use years ago, but the policies haven’t been enough to prevent many Asian investors from being involved. Though many locals have gravitated towards the Singapore-based Huobi, recent research indicates that Binance is still holding down a top spot in the Asian market.
- Token Analyst recently reported on BTC transactions between exchanges this year.
- The data revealed that more transactions exist from Binance to Huobi than vice versa.
One of the most popular and well-known cryptocurrency exchanges is Binance, and they’ve remained highly active this year with their volume and work on the expansion. The exchange, based in Malta, has been looking into potentially trading on other trading markets, coinciding with the efforts of the exchange to create a solid place in the industry.
China has seen a lot of activity in the cryptocurrency industry recently, and it seemingly has increased demand for cryptocurrency, based on reports from Token Analyst. In the report, the researchers found that a major portion of the cryptocurrency volumes had moved from Huobi wallets to Binance. Of those exchanges, 259,000 BTC was moved through 48,000 transactions. On average, a transaction was worth approximately 5.4 BTC.
The Huobi exchange was founded in China, and it predominantly serves the Asian market. With the massive outflow to Binance, it is possible that the exchange is losing a lot of their outflow in the Chinese market, which is instead moving to Binance.
Despite this movement, the second-largest “interflow” involved transactions from Binance to Huobi. With over 44,000 transactions, 137,000 BTC was transferred. Since there is an apparent reverse movement of Bitcoin, the report implies that Huobi is still maintaining some kind of hold on the Asian market. Huobi has announced recently that their exchange has major expansion plans to involve smartphones, hoping to secure some of the OTC markets.
Binance has a clear advantage over the Singapore-based exchange, based on the data shown in the report. With more BTC leaving Binance and reaching OTC exchanges and institutional platforms, there could be more movement to come, and Binance’s stronghold in the global cryptocurrency market isn’t likely to loosen anytime soon. Still, domestic exchanges have been banned in China for quite some time, and investors have been limited in their global exchange options for trading.
Binance Partners With Advcash to Open Fiat Gateway
Users on the crypto exchange Binance have received new goodies after the platform opened a fiat gateway for four currencies namely EUR, UAH, RUB, and KZT. According to the official announcement made on its official website, Binance is collaborating with Advcash (Advanced Cash Limited) to provide its users with the opportunity to deposit and withdraw the said currencies to their Binance wallet. They will use their bank cards, credit cards, and Advcash wallet to facilitate transactions.
This opportunity will enable users to buy and sell digital currencies using their Binance wallet directly on the platform’s Buy and Sell Crypto page through the one-click buy/sell service.
Fiat Gateway Brings Many Benefits
With the new development on the Binance platform, users stand to enjoy various benefits. For example, it comes with zero deposit fees whereby users will incur no charge for depositing the four fiat currencies to their Binance account using their Advcash wallet. Besides, the process is fast and every asset purchased will reach the Binance wallet quite faster.
Additionally, the fiat wallet will enable Binance users to buy and sell Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) directly using their Binance wallet balance. Importantly, the development allows easy access as users can simply use their bank cards and Advcash wallet to deposit and withdraw.
Binance offers One-Click Buy/Sell option, which allows users to purchase cryptocurrency more conveniently and faster with no charts or complex order types involved. Besides, it gives users real-time price data to directly execute their trades. Users with EUR, UAH, KZT, and RUB in their Binance account can now buy crypto such as BTC, XRP, and ETH at any time using the new One-Click function.
Binance chose Advcash for its ability to facilitate both fiat and crypto payments. The platform combines crypto, fiat, and pre-paid card features. With e-wallets in multiple currencies, Advcash supports a range of deposit and withdrawal options both locally and internationally. The ADV-branded prepaid cards, which are loaded instantly from e-wallets, allow users to conduct easy international POS and ATM transactions. Importantly, Advcash allows merchants to choose the most suitable payment processing and payout system that meets their needs.