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Bitcast: How would Diem be affected by a Facebook downfall?

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Last Wednesday (13) the 13th episode of Bitcast Lite, a Brazilian podcast about cryptocurrencies and blockhain, was aired.

In the program, the crash of Facebook’s servers was addressed, which caused an interruption of the platform for 6 hours.

In this context, the presenters analyzed the controversial project Diem (formerly Libra), led by Facebook.

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In addition, they debated how the lives of users of the future cryptocurrency — still without an official release date — would be affected by a server crash similar to the one that occurred on October 4th.

The podcast was presented by José Domingues da Fonseca, lawyer and cryptocurrency enthusiast, Paulo Aragão, specialist in cryptocurrencies and co-founder of CriptoFácil, and Gwin, the “good hacker” of Bitcast.

Facebook crashed. What if Libra/Diem existed?

As Aragon pointed out, if Diem were adopted globally, as was its initial proposal, a system crash would result in a collapse.

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According to the expert, this would be equivalent to a Pix drop in Brazil, or worse:

“Can you imagine if a country’s economy was based on the late Libra, now Diem? Nowadays, in Brazil, half of electronic transactions are already based on Pix. If Pix goes down today, it would be pandemonium. Now, imagine if it was 100% based on a kind of Pix, and it fell off?”

Thus, Aragon concluded that it is not feasible for an economy to rely on a centralized digital currency like Diem.

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Australia to Introduce New Regulatory Laws and Licensing Frameworks for Crypto Firms

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As some top economies across the world are working to bring clarity on crypto regulations, Australia joins the bandwagon. As per the latest report, Australian lawmakers will soon create a licensing framework for cryptocurrency exchanges.

Australian Treasurer Josh Frydenberg has recently welcomed this move saying that Bitcoin and other digital assets would emerge under a financial licensing scheme for crypto trading platforms. Speaking of this development, Mr. Frydenberg said:

“Australia has an opportunity to be among the leading countries in the world in leveraging this new technology. Recent surveys have found that up to 17 percent of Australians currently own cryptocurrency, with that figure likely even higher among young Australians.”

The Australian Treasurer said that he will begin talks on the licensing framework of crypto from early 2022. Besides, they will also be regulating crypto custodians i.e. businesses who hold digital assets on behalf of their consumers.

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Crypto businesses in Australia are also supporting this move. BTC Markets chief executive Caroline Bowler said: “It would be a crushing shame to not have our regulation keep pace with international peers such as Singapore, Canada and Britain”.

Australia’s Own Central Bank Digital Currency (CBDC)

Australian Treasurer Josh Frydenberg also spoke about the possibility of having a central bank digital currency (CBDC) and doing pilot testing before the end of 2022. However, he advocates for the cash industry saying that the Australian CBDC should be replacing physical banknotes.

Besides, the country is looking to broaden the scope of laws for online transactions providers. Tech giants like Google and Apple are making rapid penetration in the payments market. Furthermore, there’s a fast emergence of buy-now-pay-later (BNPL) providers ike Afterpay Ltd. operating without any direct supervision. Speaking of this, Treasurer Frydenberg said:

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“If we do not reform the current framework, it will be Silicon Valley that determines the future of our payment system. Australia must retain its sovereignty over our payment system.”

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Brokerage gives China users a week to trade cryptocurrencies for the last time

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The Huobi Global cryptocurrency exchange, which since September has been preparing to close down its operations in China, set December 14 as the last deadline for deposits and trading of cryptocurrencies for Chinese users. After 12/15, only the withdrawal function will be available, the company said on Sunday (5th) according to the website China.org.

The expectation is that the health function will remain available for 1 to 2 years, according to the website, which highlighted the month of December as the landmark of the massive exit of companies in the sector, driven by the impositions of the Chinese government in disfavor both to operations and to the cryptocurrency mining in the country.

In September, the exchange, which has its origins in the Asian country, had already announced that it would gradually close existing accounts by December 31 and that it would no longer accept new registrations. The aim was “to comply with local regulatory laws”.

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Changes at Huobi

Since moving to Singapore after the Chinese government took similar steps in 2017, Huobi has tried to keep a portion of its base in the country due to the large number of Chinese customers. Last month, however, the company also added the Asian country to its restricted jurisdiction list, where it is expected to go down in March 2022.

In July this year, the exchange, which has several branches around the world, took the same measure to users in the United States, Canada, among other countries, who were also banned from trading on the platform.

Recently, too, Huobi estimated that it could lose 30% of all its revenue just by ending users in China. “There will be no Chinese users on the platform […], so our recipes [desses clientes] will reach zero”, said the co-founder of Huobi, Du Jun.

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Huobi in Brazil

In 2018, Huobi launched a branch in Brazil, but for an unknown reason, it ended operations months later. However, by allowing customers in the region to use the Real to purchase cryptocurrencies, a function created in August this year, it may be a sign that the exchange still has plans to return to operating in the Brazilian market.

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Nexo Partners With Fidelity to Expand Institutional Access to Cryptocurrencies

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Nexo has partnered with digital asset manager Fidelity to make cryptocurrencies more accessible to institutional investors.

Leading cryptocurrency lending and savings platform Nexo has partnered with Fidelity Digital Assets (FDA), the digital arm of financial services giant Fidelity Investments, to expand institutional access to cryptocurrencies.

Nexo Partners with Fidelity

Following the collaboration, both firms will develop a comprehensive product suite and compliant infrastructure for institutional investors seeking to gain exposure to cryptocurrencies, Nexo said in a press release shared with CryptoPotato.

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In addition, the duo will offer quality custodial and lending services as well as launch innovative products developed specifically for institutional clients.

Unrestricted Access to Crypto

Under the agreement, Fidelity’s institutional customers will have unrestricted access to Nexo’s products, including the company’s crypto prime brokerage, while expanding Nexo’s ability to increase its assets under management.

Nexo’s custodial layer will also be upgraded to military-grade security infrastructure, keeping investors safe at all times, the announcement added.

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Nexo has partnered with digital asset manager Fidelity to make cryptocurrencies more accessible to institutional investors.

Leading cryptocurrency lending and savings platform Nexo has partnered with Fidelity Digital Assets (FDA), the digital arm of financial services giant Fidelity Investments, to expand institutional access to cryptocurrencies.

Nexo Partners with Fidelity

Following the collaboration, both firms will develop a comprehensive product suite and compliant infrastructure for institutional investors seeking to gain exposure to cryptocurrencies, Nexo said in a press release shared with CryptoPotato.

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In addition, the duo will offer quality custodial and lending services as well as launch innovative products developed specifically for institutional clients.

Unrestricted Access to Crypto

Under the agreement, Fidelity’s institutional customers will have unrestricted access to Nexo’s products, including the company’s crypto prime brokerage, while expanding Nexo’s ability to increase its assets under management.

Nexo’s custodial layer will also be upgraded to military-grade security infrastructure, keeping investors safe at all times, the announcement added.

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Commenting on the development, Kalin Metodiev, co-Founder and Managing Partner at Nexo, said the partnership will enable customers to use the credit and trading products while relying on FDA’s advanced custody and security infrastructure.

“Working with Fidelity Digital Assets is the latest milestone in our quest to offer a complete institutional platform and to onboard traditional finance companies into the digital asset ecosystem,” Metodiev added.

Christopher Tyrer, Head of Fidelity Digital Assets Europe, noted that the move creates an opportunity for the duo to deliver a robust and seamless solution for their customers, adding:

“We’re thrilled that our best-in-class operational controls and security expertise will be extended to the assets of Nexo’s customers, while the ability for Fidelity Digital Asset’s clients to access Nexo’s lending solutions will help us deliver a richer experience to meet our clients’ evolving needs.”

The development comes less than a month after Nexo announced a $100 million buyback program for its native cryptocurrency dubbed NEXO.

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Surging Institutional Interest in Crypto

In recent times, there has been a growing interest in cryptocurrencies from institutional investors, who hope to also participate in the opportunities associated with the asset class.

While several institutional clients have gained exposure to cryptocurrencies via direct and indirect investments, the interest in crypto assets from these investor classes has continued to surge.

According to a report in July, as part of its efforts to the growing institutional interest in cryptocurrencies, FDA said it will hire 100 employees, which would see its staff strength surge by up to 70%.

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