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BlackRock’s IBIT Launch in Chile, and More

Published

2 days ago

June 29, 2024

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BeInCrypto comprehensive Latam Crypto Roundup brings Latin America’s most important news and trends. With reporters in Brazil, Mexico, Argentina, and more, we cover the latest updates and insights from the region’s crypto scene.

This week’s roundup includes stories about BlackRock’s IBIT launch in Chile, Nubank’s partnership with Lightspark, Bolivia’s cryptocurrency ban revoke, and more.

BlackRock Launches IBIT on Santiago Stock Exchange in Chile

BlackRock has introduced its iShares Bitcoin Trust (IBIT) to the Santiago Stock Exchange in Chile, managed by BCI Corredores de Bolsa. This launch allows Chilean investors to participate in Bitcoin investments at an institutional level.

Chile now follows Brazil in the region, where BlackRock launched the same ETF earlier in March. According to GTD, 74% of Chileans recognize Bitcoin as the leading cryptocurrency in the market. The ETF, which began trading on June 27, benefits from BlackRock’s technological expertise and its management of approximately 1,300 other ETFs.

This launch fills us with pride, as it is in line with the long history of innovation driven by BlackRock in the financial markets. Now, investors in Chile will have an accessible and efficient digital asset to include in their portfolios, backed by the extensive experience in risk management that our iShares ETFs have,” said Silvia Fernández, the Country Head of BlackRock Chile.

IBIT has established itself as the world’s largest Bitcoin ETF, with over $20 billion in assets since it began trading in January 2024. It was also the fastest ETF to reach $10 billion in assets in history.

Bolivia Authorizes Cryptocurrency Use, Revoking Historic Ban

Bolivia has officially lifted its ban on cryptocurrencies, authorizing their use through Electronic Payment Instruments (IEP). Edwin Rojas, the president of the Central Bank of Bolivia, announced this decision, marking a massive shift in the country’s approach to digital commerce.

The reversal of the 2020 Resolution 144, which previously restricted cryptocurrency transactions, involved the Financial Investigations Unit and the Financial System Authority. Despite this change, the Boliviano remains the only legal tender.

The Central Bank stresses that all risks associated with virtual assets are the user’s responsibility. It highlights that these assets are not considered legal money and are not obligatory for payments. The Central Bank is committed to adapting existing regulations and launching educational campaigns.

Official announcement by the Central Bank of Bolivia on the updated regulations. Source: BCB

This initiative aligns with recommendations from the Latin American Financial Action Task Force. They suggested regulating virtual asset services to meet new financial realities and the expanding use of blockchain technologies.

The recent move modernizes Bolivia’s financial system and opens doors to new digital commerce opportunities and financial inclusion, provided that public education manages the transition responsibly.

Santander Brazil Expands Crypto Trading to Retail Customers via Toro Platform

Santander, the multinational banking giant, has recently announced that it will start offering cryptocurrency trading services in Brazil. Starting this week, Santander’s Brazilian investment platform, Toro, will offer its retail customers access to Bitcoin and Ethereum.

Previously, these cryptoassets were available only to the bank’s private clients through ETFs. This move follows similar offerings by other Brazilian banks such as Itaú, Nubank, Inter, and BTG Pactual.

Toro founder and CEO João Resende explains that negotiations begin with offering the two largest digital currencies to selected clients with an appropriate risk profile for the product.

“The product will be aimed at clients with an aggressive risk profile. Gradually, the new service will be rolled out to the broker’s entire base of more than one million active clients.” Resende says Toro is considering offering other digital currencies in addition to tokenized assets. “It’s a first step we are taking,” he noted.

According to a report by Valor Econômico, the success of this initiative in Brazil might lead to its expansion across other Santander branches worldwide. Santander, also participating in the CBDC project known as Drex, recently conducted the first transaction using Anonymous Zether. The solution, developed by Consensys, allows users to conceal transaction amounts and the parties’ identities using cryptographic proofs.

Costa Rican Authorities Unveil Bitcoin Money Laundering Scheme

Costa Rican authorities have dismantled a sophisticated money laundering scheme involving cryptocurrencies, including Bitcoin. After a two-and-a-half-year investigation, police arrested 36 individuals on Tuesday. Among them were judges, lawyers, and two Spanish nationals identified as the ringleaders.

Randall Zúñiga, director of the Judicial Investigation Agency (OIJ), explained that the gang stole properties from Costa Rican residents. They then legitimized these assets through cryptocurrency purchases. In one instance, the organization moved $13 million in Bitcoin in a single day, highlighting the scale of its operations.

“There is a whole team dedicated to cryptocurrencies. In one day, they made a $13 million transaction in bitcoins. We have identified 25 properties, but over 100 have been stolen. Conversations suggest they have taken over 300 properties, with one valued at $30 million. This constitutes a multi-million dollar fraud,” Zúñiga stated.

The operation involved around 500 OIJ agents and conducted 47 raids nationwide. Lawyers, notaries, public officials, and five traffic officers were arrested. They face charges of registration fraud, ideological falsehood, and money laundering.

This case in Costa Rica mirrors a similar incident in Venezuela. The Scientific, Criminal, and Criminalistic Investigations Corps (CICPC) captured a criminal operating an illicit cryptocurrency exchange in Chacao, Miranda.

The detainee, Gabriel Bello, enticed victims with offers of currency exchange and cryptocurrencies at affordable prices. He then failed to deliver the promised returns. Bello, who was wanted for continuous swindling and other crimes, is now in the custody of the Public Prosecutor’s Office.

Colombia’s Usiacurí Municipality Adopts Bitcoin

The small Colombian town of Usiacurí, home to over 10,000 residents, has embraced cryptocurrencies like Bitcoin, USDT, and Tron for tourist transactions. This initiative mirrors El Salvador’s 2021 adoption of Bitcoin and aligns with Colombia’s high rate of Bitcoin utilization. President Gustavo Petro has even explored cryptocurrencies as potential solutions for governmental issues.

This adoption is part of the “Distrito Crypto” project, a collaboration between Usiacurí’s municipality, Universidad de la Costa (CUC), Certika, and Corporación CienTech, exclusive to Usiacurí in the Atlántico department. The program aims to facilitate cryptocurrency transactions for foreign tourists across local hotels, shops, and restaurants.

“The participation of the Universidad de la Costa was fundamental throughout the process, since through its teachers and researchers have been strengthening the research line of blockchain and its applications, as is this tool that allowed us to turn Usiacurí into the first municipality with Cryptocurrency District, generating more sales in its tourism and hotel sector,” explained CienTech.

Read more: Who Owns the Most Bitcoin in 2024?

Further enhancing Colombia’s appeal to crypto investors, the recent introduction of Worldcoin’s World ID verifications in Bogotá and Medellín positions the nation as a hub for digital identity solutions. This system serves as a “digital passport of humanity,” designed to verify unique individual identities securely, meeting growing demands for digital services verification.

Nubank Partners with Lightspark to Integrate Lightning Network in Brazil

Nubank has partnered with Lightspark to deploy the Bitcoin Lightning Network on its Brazilian platform. This alliance will explore potential synergies and development opportunities, with more specific details to be announced later.

Lightspark will provide Nubank with an enterprise-grade gateway to the Lightning Network, facilitating reliable, near real-time transactions for Bitcoin and fiat currencies at reduced costs.

“The partnership with Lightspark, which has developed an excellent technical solution for Bitcoin’s Lightning network, is another step in Nubank’s mission to provide the best solutions for our customers and strengthen our long-term relationship with them. The future integration of Lightning underscores Nubank’s ongoing mission to deliver more efficient services faster and at lower costs through blockchain technology,” stated Thomaz Fortes, CEO of Nubank Crypto.

The collaboration will allow Nubank’s teams to enhance the end-to-end customer experience by focusing on product innovation without the burden of managing a large-scale Lightning deployment. This integration represents a significant advancement in the adoption and efficiency of digital financial transactions, promising a faster, more affordable, and secure service for Nubank’s customers. It’s a significant milestone for the Lightning Network, expected to greatly increase its overall network utilization.

Argentina and Venezuela Face Hyper AI Platform Controversy

The Hyper AI platform, renowned for integrating advanced technologies like AI and blockchain into a metaverse, has recently suspended user withdrawals, alleging a system update. This action has alarmed its investors in Venezuela and caused uncertainty in Argentina. The platform is now accused of operating like a Ponzi scheme, leading many users to organize a protest to file formal complaints with the public prosecutor’s office in Venezuela.

Social media and cryptocurrency forums are buzzing with reactions as users in Venezuela express their frustration over the lack of transparency, accusing Hyper AI of employing common Ponzi scheme tactics. Approximately 20,000 users in Los Teques, El Jarillo, and La Colonia Tovar are reportedly affected. On Wednesday, June 26, a group will officially approach the Superior Prosecutor’s Office of Miranda to denounce the platform.

“I entered in the month of February, I started with the minimum investment of 50 dollars. For a while I recovered something, but for example my son borrowed money, he entered with $5,000 and of course he lost all of that. I know many people who sold houses, cars, who were excited because this platform was supposed to last until next year”, Carlos Chavez told the local Venezuelan media Diario Avance.

Read more: 15 Most Common Crypto Scams To Look Out For

The controversy is not confined to Venezuela; it has also touched Argentina. Users have voiced their dissatisfaction and are seeking answers to the ongoing crisis.

“My experience was awful, I entered through my nephew who was also scammed. I invested almost 900 dollars and I could not withdraw anything and it was horrible to know that they played with us like that”, Gabriela Romando told Argentinean media El Diario del Sur.

The situation that all Hyper AI users are going through has exacerbated the distrust in investments related to emerging technologies in the region. This saga is reminiscent of other recent financial collapses of digital platforms such as FTX, BTR, Solesbot, and CowCoin.

As the Latam crypto scene grows, these stories highlight the region’s increasing influence in the global market. From BlackRock’s Bitcoin ETF launch in Chile to Brazilian Nubank’s partnership with Lightspark, Latin America is positioning itself as a key player in the tech world. Stay tuned for more updates and insights in next week’s roundup.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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MiCA Propels Circle’s Euro Stablecoin, Says Jeremy Allaire

Published

11 mins ago

July 1, 2024

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Circle co-founder and CEO Jeremy Allaire shilled USDC and EURC stablecoins in an interview on Monday. He anticipates more competition in the space as the EU’s regulatory framework toughens.

Under MiCA, stablecoin issuers must obtain authorization and be licensed by the relevant national authorities in the EU.

Circle Pioneers MiCA Compliance

Circle secured an Electronic Money Institution (EMI) license on Monday. This is a requirement for any issuer looking to offer dollar- and euro-pegged crypto tokens in the European Union (EU) under the Markets in Crypto Assets (MiCA) framework. It permits the firm to “onshore” its Euro-denominated EURC stablecoin to customers within the EU.

“Circle announces that USDC and EURC are now available under new EU stablecoin laws. Circle is the first global stablecoin issuer to be compliant with MiCA. Circle is now natively issuing both USDC and EURC to European customers effective July 1,” Allaire wrote.

Banks and EMIs can now issue and utilize Euro stablecoins as a core part of their products and services.

Read more: What Is Markets in Crypto-Assets (MiCA)? Everything You Need To Know

In a separate report, Allaire highlighted that compliance is the firm’s competitive advantage. He underscored Circle EURC stablecoin and USD Coin’s commitment to regulations stipulated by the MiCA framework.

“The day that MiCA came into law, we announced our Euro stablecoin EURC. We also announced our intention to make our stablecoins fully compliant with MiCA and we are very committed to that path. This is because legal electronic money in the form of Euro or dollar that runs on blockchains is a huge opportunity,” Allaire said in an interview.

Allaire cites two factors that embolden Circle: MiCA’s promotion of a pro-Euro digital asset environment and the firm’s strong compliance track record. This, in his opinion, positions the EURC to become much bigger as regulations in Europe allow Euro stablecoins to be part of a growth-bound financial system.

Why Tether’s USDT is in the Sidelines

The assertion comes after crypto exchanges delisted Euro-denominated stablecoins in their resolve to achieve MiCA compliance. Among them, Bitstamp revealed that the Euro Tether (EURT) stablecoin was delisted, joining the likes of Binance, Kraken, OKX, and Uphold, which also shed EURT.

Tether, the issuer of USDT stablecoin, indicated that it does not currently aim to comply with MiCA, which explains why it is subject to restrictions or cancellation on exchanges. Tether CEO Paolo Ardoino is against MiCA’s expectation of 60% of backing in bank cash, citing “bank failure risk.”

“Stablecoins should be able to keep 100% of reserves in treasury bills, rather than exposing themselves to bank failures by keeping big chunks of reserves in uninsured cash deposits. In case of bank failure, securities return to the legitimate owner,” Ardoino wrote in April.

For Tether, this could be another brick in the regulatory wall, shoving it to the sidelines over time as regulation in stablecoins gathers pace around the world.

Nevertheless, the landmark development sets the stage for increased adoption of Euro digital currency in the form of Euro stablecoins. With a clear set of guidelines for Euro digital currency issuance and operations, the new framework will promote a highly competitive market.

Allaire agrees with this speculation, saying that he anticipates more competition. In his opinion, new regulations that streamline the industry tend to attract more competition. Binance CEO Richard Teng lauded Circle in a post, calling for more players in the space.

“USDC becoming a MiCA-compliant e-money token (EMT) marks a positive step forward for the crypto ecosystem in the EEA region. We are hopeful that there’ll be more MiCA-compliant EMTs soon,” Teng wrote.

With the MiCA regulations in effect, firms will be held more accountable. Their risk and compliance management, banking infrastructure, and assurances from major public audit firms will also be under more scrutiny.

The oversight, promoting regulatory clarity and transparency, will inspire increased customer confidence because of improved consumer protection. For new players looking to join the space, however, entry barriers will likely be higher as the MiCA framework aims to achieve its mandate — to protect consumers and investors, ensure financial stability, and foster innovation.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Sales Drop and Worst Performing Sector

Published

1 hour ago

July 1, 2024

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Non-fungible tokens (NFTs), once hailed as the future of digital collectibles, experienced a sharp downturn in June. According to the crypto analytics platform Artemis, the NFT sector recorded the worst performance among 21 sectors, with a staggering 51.5% decline.

This trend raises concerns about the sustainability of the NFT market.

Sales Slump Across Major Blockchains: Can NFTs Bounce Back?

The decline is further evidenced by data from CryptoSlam, which shows a 46.03% decrease in NFT sales volume, amounting to $480 million over the past 30 days. Major blockchains like Ethereum, Bitcoin, and Solana saw NFT sales plummet by 38% to 50%. This significant drop has led to speculations about the causes behind the fading enthusiasm for NFTs.

Crypto Sectors Performance. Source: Artemis

Several factors contribute to the current state of the NFT market. Paul Thomas, Founder and CEO of Somnia, noted that the initial hype around NFTs has diminished.

“Utility is becoming more important than ever for NFTs. […] One of the big problems with NFTs is that everyone just tries to repeat and copy what was previously successful. […] For projects to really make an impact, they need to be doing something exciting and original instead of just following the hype,” Thomas said.

Adding to the challenges, the floor price of prominent NFT collections like Bored Ape Yacht Club (BAYC) fell below 10 ETH earlier in June. This dip was exacerbated by notable figures such as Mark Cuban offloading multiple NFTs from their collections. These actions sparked further concerns about the long-term viability of the NFT market.

Despite the downturn, the NFT sector is not all bleak. Some collections, such as Pudgy Penguins and Milady Maker, recorded significant sales volume increases. Additionally, the Ronin blockchain saw a notable rise in NFT sales, indicating that certain niches within the market are still thriving.

Taha Abbasi, CTO of Ferrum Labs, also believes that the NFT sector will likely regain attention as the industry evolves. He believes that some of the key innovators in the NFT industry, like Yuga Labs and Igloo, are strategizing on ways to re-emerge.

“Perhaps the days of overhyped pixelated NFTs are over, and some other media integration or innovation might soon place digital collectibles in the limelight. NFT innovators need to do something drastic that would help the niche stay afloat,” he told BeInCrypto.

This insight and the resilience of certain collections and platforms offer hope. Although the broader market may struggle, these dynamics suggest that specific projects and platforms could still attract interest and investment.

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Layer-2 Networks Unique Addresses Hit Record Highs

Published

2 hours ago

July 1, 2024

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Layer-2 (L2) blockchains have registered a significant increase in unique addresses in the first half of 2024.

Key network adjustments, including transaction fee reduction, and changes to protocol governance are some of the key reasons behind the growing interest.

Optimism Shines in L2 Address Growth

Data analytics platform Coin98 Analytics highlights significant growth in the number of unique addresses among L2 blockchains. BNBChain, Polygon, and Ethereum blockchains continue to lead the pack with the most number of addresses, data shows.

Ethereum Layer-2 network Optimism stands out, recording the most new addresses, with over 58.4 million since January. This marks a 64% increase in the last six months. The seven-day net flow across the blockchain was over $56 million as of June 29.

Layer 2 Total Unique Addresses — L2 Total Unique Addresses, Source: Coin98 Analytics

The report coincides with the Optimism Governance Season 6 launch, announced by the network’s governing body, Optimism Collective. With this initiative, the Optimism community, developers included, will jointly enact improvements for the network based on the “Optimizing to Support the Superchain” theme.

Core tenets of Season 6 include decentralization goals, growing the Superchain with more networks, and fostering application developers on the Superchain. The platform’s commitment to enhancing user experience and promoting community engagement has been instrumental in attracting more network participants.

Other notable mentions on metrics of the number of unique addresses include Mantle, Scroll, and Linea, which recorded over 380%, 235%, and 212% increases, respectively.

BNB, Ethereum, Polygon Lead the Pack

While the governance adjustment did it for the Optimism blockchain, changes to network fees boded well for other ecosystems, including BNB Smart Chain. The BNB blockchain is leading the pack with a prolific 458.7 million new unique addresses as of June 30. This growth is achieved through the opBNB L2 solution, which enhances the network’s performance and scalability.

BNB adjusted its network fees through the successful BEP 336 Haber Hardfork activation, delivering a 90% transaction fee reduction. The upgrade introduced blob-carrying transactions, optimizing the network’s data storage and processing capabilities.

With significantly reduced data availability costs for L2 solutions on BNB Smart Chain, transactions become more affordable and accessible. It enhances the ecosystem’s overall efficiency, positioning BNB Chain among the most economical platforms for users and developers.

Like BNB Smart Chain, Ethereum’s reduced fees also come courtesy of blobs after implementing Upgrade EIP-4844 (Proto-Danksharding). The blobs transaction model frees up space within the mainnet while decreasing the fees on L2 networks.

Polygon’s position in the pack’s frontline comes as the network provides a multi-chain scaling solution. Its framework offers a haven where decentralized applications (DApps) and smart contracts can flourish, free from Ethereum’s typical constraints.

As key adjustments promote growing interest in Layer-2 blockchains, they reflect the impact of improved overall user experience, incereased sustainability, and network scalability in driving adoption. The surge in unique addresses also mirrors the increasing acceptance and recognition of L2 solutions as viable alternatives to “traditional” blockchain platforms.

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