Here's the most recent fintech, crypto and blockchain news from all around the globe:

Cryptocurrency Hub online community appreciates and cherishes the time and effort its members invest communicating, interacting and contributing on its platform and as a token of appreciation and giving back to the community we came up with a a prize points system based on members activities in the community! Yaaaaayyyyyy 😎

So that's how it will work:

Registered members earn points based on certain activities. Each activity has a number of points for each action taken. These points will be added for each member automatically.

Points will be calculated according to the below formula (subject to change upon the discretion of the admins):

Don't forget that you can invite new members to our community and help it grow while collecting points for each invited member! 🤪

The regular crypto giveaway will be in the form of weekly Cardano (ADA) and monthly Ripple (XRP) prizes! 🎁😁

Weekly Cardano (ADA) prizes (2 winners):

Every end of the week a First Prize will be given to 1 winner (1st highest number of activity points collected for the corresponding week): 30 ADA

Every end of the week a Second Prize will be given to 1 winner (2nd highest number of activity points collected for the corresponding week): 20 ADA

Monthly Ripple (XRP) prizes (1 winner):

Every end of month one Prize will be given to 1 winner (with the highest number of activity points collected for the corresponding month): 50 XRP

Members usernames will be of course announced in due dates and contacted to have their crypto prizes transferred to their wallets addresses.

Remember the more you are active and contributing to the growth of our online community the more points you earn and the more chances you get to win BIG with us! 😛🤗

Good luck to everyone! 👏

Centralized Crypto Exchange Development Company in 2024

In the fast-evolving landscape of cryptocurrency, centralized exchanges remain pivotal for users seeking efficient and secure platforms to buy, sell, and trade digital assets. As a premier Centralized Crypto Exchange Development Company in 2024, Justtry Technologies stands at the forefront of crafting secure, scalable, and feature-rich exchange solutions that cater to the dynamic needs of the crypto market.

Why Choose a Centralized Crypto Exchange?

Despite the rise of decentralized finance, centralized exchanges continue to dominate due to their user-friendly interfaces, high liquidity, and robust customer support. They provide quick transaction times and advanced trading features that make them ideal for both novice and professional traders. As Centralized Exchange enables  ease of fiat-to-crypto transactions, ensuring a smooth entry point for individuals and institutions looking to invest in the cryptocurrency market

With the continuous expansion of the cryptocurrency industry, Multilevel Marketing (MLM) is embracing digital currencies, particularly Bitcoin. The use of Bitcoin in MLM systems has led to an increased demand for specialized software that supports network management, secure transactions, and Bitcoin APIs. An ideal Crypto MLM Software Development strategy can bridge the gap between traditional MLM and the dynamic cryptocurrency market, helping businesses tap into a broader audience. This blog will cover key aspects and benefits of online Bitcoin API MLM software for multilevel marketing.

What is Bitcoin API MLM Software?

Bitcoin API MLM software is a unique digital platform designed to facilitate MLM activities within the crypto sphere, specifically using Bitcoin. This software integrates with a Bitcoin API (Application Programming Interface) to allow automated payment processing, commission calculations, and other crypto-based transactions within MLM structures. With Bitcoin API functionality, users can make secure transactions, monitor network performance, and gain access to real-time payment data.

Key Benefits of Using Bitcoin API in MLM Software

Automated and Instant Payments

Integrating a Bitcoin API enables automatic payment distribution within the MLM network. This functionality is essential in multilevel marketing, where timely payments drive user engagement and loyalty. Instant payments also eliminate delays associated with traditional banking, which is especially appealing for global MLM participants.

Transparency and Trust

Bitcoin transactions are traceable on the blockchain, ensuring transparency and enhancing trust among network members. Users can independently verify payments, building credibility within the network and attracting more participants who are seeking a reliable, transparent platform.

Cost-Effective Operations

Bitcoin API MLM software reduces the costs associated with intermediaries, as transactions are processed directly on the blockchain. By removing traditional banks or third-party payment processors, MLM businesses can streamline their operations and minimize transaction fees.

Global Reach and Accessibility

Bitcoin’s decentralized nature allows businesses to operate internationally without currency exchange concerns. This global reach is invaluable for MLM companies seeking to expand their networks. Users from different countries can easily join, pay, and receive payments in Bitcoin, enabling seamless participation.

Enhanced Security

By integrating a Bitcoin API, the MLM software benefits from the security features of the blockchain. Each transaction is encrypted and verified, making it nearly impossible for hackers to alter records. This security measure fosters user confidence, knowing that their earnings and data are safe.

Key Features of Bitcoin API MLM Software

Real-Time Payment Processing

Real-time payment processing is crucial for MLM participants who rely on instant earnings. The Bitcoin API integration allows for real-time payment confirmation and quick transfers, making sure that users are rewarded promptly for their network activities.

Multi-Currency Wallet Integration

A multi-currency wallet allows users to store, manage, and transact not just Bitcoin but other cryptocurrencies as well. This flexibility can broaden the appeal of your MLM software, attracting crypto enthusiasts who use different digital assets alongside Bitcoin.

Smart Contract Integration

Smart contracts can automate key processes like reward distribution, commission calculation, and milestone achievements. When combined with a Bitcoin API, smart contracts ensure accuracy and consistency while reducing administrative errors. This automation also reduces the overhead associated with manually managing transactions and rewards.

Customizable Compensation Plans

MLM software should allow flexible compensation structures. Some popular plans include binary, matrix, and uni-level structures. Customizing compensation plans enables businesses to cater to various user preferences, boosting engagement by aligning with users’ earnings goals.

User-Friendly Dashboard

An intuitive, user-friendly dashboard helps participants track their progress, earnings, and network growth. A robust dashboard should offer detailed analytics, performance metrics, and real-time data on commissions and bonuses, empowering users to make informed decisions.

Referral and Reward System

A built-in referral system encourages users to expand the network by recruiting new members. MLM platforms typically offer bonuses or additional earnings for referrals. Integrating a transparent referral tracking system incentivizes growth and can help attract a larger user base.

KYC and Compliance Integration

Many jurisdictions require MLM companies to implement KYC (Know Your Customer) protocols to verify user identities. KYC integration ensures compliance with regulations, reducing the risk of fraudulent activities and protecting the MLM platform’s integrity.

Automated Reporting and Analytics

A detailed reporting system helps both users and administrators gain insights into network performance. With automated reporting and advanced analytics, users can track their earnings, team growth, and overall contribution to the network.

Mobile Optimization

With the growing number of mobile users, mobile optimization has become essential. A mobile-friendly interface or dedicated mobile app allows users to access the platform, process transactions, and manage their networks from anywhere, improving accessibility and user experience.

Multi-Language Support

As MLMs often operate globally, supporting multiple languages helps make the platform accessible to users from different linguistic backgrounds. Multi-language support fosters inclusivity and promotes wider adoption of the platform internationally.

How Crypto MLM Software Development Can Boost Your MLM Business

Investing in Crypto MLM Software Development that integrates Bitcoin APIs can make your MLM platform stand out by offering users unparalleled benefits like instant payments, enhanced security, and cross-border accessibility. The customization options for compensation structures, user-friendly dashboards, and reward systems add significant value to the user experience.

Partnering with a reputable crypto MLM software development company ensures that these features are implemented efficiently and aligned with your business goals. Experienced developers can optimize the software for scalability and user-friendliness, supporting network growth and enhancing user satisfaction.

Conclusion

The integration of Bitcoin API in MLM software is a game-changer, offering features that not only modernize multilevel marketing but also provide users with transparency, security, and instant rewards. From real-time payments and smart contracts to multi-language support, Bitcoin API MLM software can set the foundation for a more accessible, efficient, and secure MLM experience. As the industry evolves, businesses that leverage Crypto MLM Software Development with Bitcoin API are poised to gain a competitive edge by meeting the modern needs of crypto-savvy MLM participants.

Consider integrating these features into your crypto MLM software to attract a global user base, establish credibility, and create a scalable, profitable MLM network.

With the continuous expansion of the cryptocurrency industry, Multilevel Marketing (MLM) is embracing digital currencies, particularly Bitcoin. The use of Bitcoin in MLM systems has led to an increased demand for specialized software that supports network management, secure transactions, and Bitcoin APIs. An ideal Crypto MLM Software Development strategy can bridge the gap between traditional MLM and the dynamic cryptocurrency market, helping businesses tap into a broader audience. This blog will cover key aspects and benefits of online Bitcoin API MLM software for multilevel marketing.

What is Bitcoin API MLM Software?

Bitcoin API MLM software is a unique digital platform designed to facilitate MLM activities within the crypto sphere, specifically using Bitcoin. This software integrates with a Bitcoin API (Application Programming Interface) to allow automated payment processing, commission calculations, and other crypto-based transactions within MLM structures. With Bitcoin API functionality, users can make secure transactions, monitor network performance, and gain access to real-time payment data.

Key Benefits of Using Bitcoin API in MLM Software

1. Automated and Instant Payments
   Integrating a Bitcoin API enables automatic payment distribution within the MLM network. This functionality is essential in multilevel marketing, where timely payments drive user engagement and loyalty. Instant payments also eliminate delays associated with traditional banking, which is especially appealing for global MLM participants.
2. Transparency and Trust
   Bitcoin transactions are traceable on the blockchain, ensuring transparency and enhancing trust among network members. Users can independently verify payments, building credibility within the network and attracting more participants who are seeking a reliable, transparent platform.
3. Cost-Effective Operations
   Bitcoin API MLM software reduces the costs associated with intermediaries, as transactions are processed directly on the blockchain. By removing traditional banks or third-party payment processors, MLM businesses can streamline their operations and minimize transaction fees.
4. Global Reach and Accessibility
   Bitcoin’s decentralized nature allows businesses to operate internationally without currency exchange concerns. This global reach is invaluable for MLM companies seeking to expand their networks. Users from different countries can easily join, pay, and receive payments in Bitcoin, enabling seamless participation.
5. Enhanced Security
   By integrating a Bitcoin API, the MLM software benefits from the security features of the blockchain. Each transaction is encrypted and verified, making it nearly impossible for hackers to alter records. This security measure fosters user confidence, knowing that their earnings and data are safe.

Key Features of Bitcoin API MLM Software

1. Real-Time Payment Processing
   Real-time payment processing is crucial for MLM participants who rely on instant earnings. The Bitcoin API integration allows for real-time payment confirmation and quick transfers, making sure that users are rewarded promptly for their network activities.
2. Multi-Currency Wallet Integration
   A multi-currency wallet allows users to store, manage, and transact not just Bitcoin but other cryptocurrencies as well. This flexibility can broaden the appeal of your MLM software, attracting crypto enthusiasts who use different digital assets alongside Bitcoin.
3. Smart Contract Integration
   Smart contracts can automate key processes like reward distribution, commission calculation, and milestone achievements. When combined with a Bitcoin API, smart contracts ensure accuracy and consistency while reducing administrative errors. This automation also reduces the overhead associated with manually managing transactions and rewards.
4. Customizable Compensation Plans
   MLM software should allow flexible compensation structures. Some popular plans include binary, matrix, and uni-level structures. Customizing compensation plans enables businesses to cater to various user preferences, boosting engagement by aligning with users’ earnings goals.
5. User-Friendly Dashboard
   An intuitive, user-friendly dashboard helps participants track their progress, earnings, and network growth. A robust dashboard should offer detailed analytics, performance metrics, and real-time data on commissions and bonuses, empowering users to make informed decisions.
6. Referral and Reward System
   A built-in referral system encourages users to expand the network by recruiting new members. MLM platforms typically offer bonuses or additional earnings for referrals. Integrating a transparent referral tracking system incentivizes growth and can help attract a larger user base.
7. KYC and Compliance Integration
   Many jurisdictions require MLM companies to implement KYC (Know Your Customer) protocols to verify user identities. KYC integration ensures compliance with regulations, reducing the risk of fraudulent activities and protecting the MLM platform’s integrity.
8. Automated Reporting and Analytics
   A detailed reporting system helps both users and administrators gain insights into network performance. With automated reporting and advanced analytics, users can track their earnings, team growth, and overall contribution to the network.
9. Mobile Optimization
   With the growing number of mobile users, mobile optimization has become essential. A mobile-friendly interface or dedicated mobile app allows users to access the platform, process transactions, and manage their networks from anywhere, improving accessibility and user experience.
10. Multi-Language Support
    As MLMs often operate globally, supporting multiple languages helps make the platform accessible to users from different linguistic backgrounds. Multi-language support fosters inclusivity and promotes wider adoption of the platform internationally.

How Crypto MLM Software Development Can Boost Your MLM Business

Investing in Crypto MLM Software Development that integrates Bitcoin APIs can make your MLM platform stand out by offering users unparalleled benefits like instant payments, enhanced security, and cross-border accessibility. The customization options for compensation structures, user-friendly dashboards, and reward systems add significant value to the user experience.

Partnering with a reputable crypto MLM software development company ensures that these features are implemented efficiently and aligned with your business goals. Experienced developers can optimize the software for scalability and user-friendliness, supporting network growth and enhancing user satisfaction.

Conclusion

The integration of Bitcoin API in MLM software is a game-changer, offering features that not only modernize multilevel marketing but also provide users with transparency, security, and instant rewards. From real-time payments and smart contracts to multi-language support, Bitcoin API MLM software can set the foundation for a more accessible, efficient, and secure MLM experience. As the industry evolves, businesses that leverage Crypto MLM Software Development with Bitcoin API are poised to gain a competitive edge by meeting the modern needs of crypto-savvy MLM participants.

Consider integrating these features into your crypto MLM software to attract a global user base, establish credibility, and create a scalable, profitable MLM network.

Solana Token

Solana (SOL) is a cryptocurrency and native token of  Solana blockchain platform. Solana is designed to be a high-performance network and  process large amounts of transactions quickly and cheaply, while still being decentralized. Solana token to help startups, and enterprises create an advantage  competitive crypto.

Solana Token Development Company

Solana Token Development Company, developcoins is extensively invested in new technologies in order to deliver a quick, scalable, and advanced marketplace as well as decentralized applications (Dapps). We are creating scalable, high-quality Blockchain DApps to provide secure and dependable platforms to startups as well as large businesses, Launch fungible or non-fungible tokens to use  Solana blockchain and tokenize your assets. Our Technical experts have developed a high-quality and secure Solana token for businesses and entrepreneurs. Our Solana blockchain solutions include Smart Contract Development,  DApp Development, and gaming applications.

Steps to launch your own Solana token

Design Your Token:

We support you in choosing on  your token's name, symbol, decimal places, and total supply after determining the purpose of it.

Develop Your Token Smart Contract:

We create a Rust smart contract code for your token, and specifies the steps for printing, transferring, and deleting tokens, using the Solana Program Library (SPL) token standard.

Test Your Token:

Our token smart contract has been published and tested on the Solana testnet, so you can be sure it works as designed without concern about using reality SOL.

Deploy Your Token to the Solana Mainnet:

Our knowledgeable developers will launch your fully functional crypto coin upon our Solana main network after it finishes extensive testing.

Integrate Your Token With Wallet:

We will create a safe wallet, user interface, and application for you using our blockchain experience so you can use your token.

Market Your Solana Token:

We provide Token  marketing services with strategies tailored to maximize your token's visibility and help you reach your target audience.

Our Solana Token Development Services

SPL Token Trading Platform

You will be ready to safely trade and exchange your SPL tokens on our decentralized exchanges with our SPL token trading platform.

Solana Token Swap Pool Creation

We support you in creating a new token replace network allowing users to safely exchange their token relationships by putting AMM curves into practice.

Solana Token Lending Protocol

We assist with Solana blockchain lending protocol development lets investors to lend and borrow tokens on decentralized platforms.

Deployment In Mainnet

We will apply its token Cryptocurrency market once it has been successfully developed in order to make it available to cryptocurrency traders.

Maintenance Support

We select an expert team to maintain and support your Solana token on an ongoing basis in order to guarantee its regular and reliable operation.

Features of Solana Token development

Solana CLI Tools

For token delivery, administration, and creation, Solana provides tools for the command line such as solc and solana-tokens.

Solana Node

Nodes validate transactions and maintain  blockchain's security and consensus. Solana relies on Proof of History (PoH) & Proof of Stake (PoS).

Rust Programming Language

Solana primarily uses Rust for smart contract and Token Development due to its performance and safety features.

Solana SDK

Solana SDK provides essential tools, libraries, and documentation for building on the Solana blockchain. It includes modules for token creation.

Proof-of-History

This unique feature servers as a verifiable time source or clock within  Solana network  enhances scalability and efficiency.

BFT Tower

Solana undergoes a consensus mechanism called Tower BFT  utilizes the synchronized clock for reaching consensus while undergoing transactions.

Solana Program Library (SPL)

Our main  feature offers a set of standardized token templates and tools with fewer coding complexities to simplify token development.

Decentralized Applications

DApps built on Solana can harness the speed and efficiency of Solana's blockchain for various applications, including DeFi and NFT Platform

Why Choose Solana Blockchain For Token Development?

• High throughput and low transaction costs.
• Scalability for growing user base.
• Robust smart contract capabilities.
• Interoperability with other blockchains.
• Developer-friendly ecosystem with strong community support.
• Proven security features and audits.
• Energy-efficient Proof of Stake (PoS) consensus.
• Success in DeFi, NFTs, gaming, and more.
• Low latency for fast transaction processing

Why Choose Developcoins For Solana Token Development?

Developcoins is a top natch Solana Token Development Company, helps you turn your desired crypto project into reality with cutting edge features, functionally in Solana Token Development Services. Our experienced Solana Token developers help you throughout entire process to deliver strong and excellent solana tokens. We ensure each solana token develops according to clients unique requirements and meets latest industry standards.

Others Popular Services We offer :

• Token Development

• Cryptocurrency Development

• White Paper Development

• Betfury Clone Script

Visit - https://www.developcoins.com/solana-token-development

📢 For Quick Consultation,

📱 Call/Whatsapp:+91 9500766642

💬 Telegram: t.me/Developcoins

📧 E-Mail:sales@developcoins.com

📞 Skype:live:Tech Innovate

📌Website: https://www.developcoins.com/

seo services

A man was going to the house of some rich person. As he went along the road, he saw a box of good apples at the side of the road. He said, "I do not want to eat those apples; for the rich man will give me much food; he will give me very nice food to eat." Then he took the apples and threw them away into the dust.
He went on and came to a river. The river had become very big; so he could not go over it. He waited for some time; then he said, "I cannot go to the rich man's house today, for I cannot get over the river."
He began to go home. He had eaten no food that day. He began to want food. He came to the apples, and he was glad to take them out of the dust and eat them.

There are numerous SEO agencies around the world, each offering various services and specializing in different aspects of search engine optimization (SEO). Here are some well-known SEO agencies known for their expertise in helping businesses improve their online visibility and search engine rankings:

• Moz: While primarily a software company known for its SEO tools, Moz also offers SEO consulting services to help businesses with their search engine optimization efforts.
• SEMrush: SEMrush is renowned for its comprehensive SEO and competitive research tools but also provides SEO services to assist businesses in optimizing their websites.
• Ahrefs: Ahrefs is another leading provider of SEO tools and has a dedicated agency service to help businesses improve their SEO performance.
• WebFX: WebFX is a full-service digital marketing agency that focuses heavily on SEO. They work with clients across various industries to enhance their online visibility and organic search traffic.

Starting a crypto exchange requires careful planning, technical knowledge, and a deep understanding of the cryptocurrency industry. Here, we'll discuss the step-by-step process of setting up your exchange using a cryptocurrency exchange script:

• Research and Conceptualization
• Selecting the Right Exchange Script
• Customization and Design
• Security and Compliance
• Liquidity Management
• Testing and Deployment
• Marketing and User Acquisition
• Ongoing Support and Maintenance

To know more info: https://www.cryptoexchangescript.com/

How to fixcash app transfer failedproblem? There is absolutely nothing wrong with when the payments on the Cash app fail; once you know the reasons, payment failure can be resolved on its own. That’s what we are going to talk about in this blog here. If you have been in a situation where the Cash app stops you from transferring your money to someone or is showing a “payment failure message on your screen”, then, worry not, we are here to help you to resolve this with a simple understanding of why it happens and what possible steps you need to take to fix it. And once you are aware of why the Cash app transfer failed occurs, you could succeed in fixing this issue with ease and without someone’s help.

Besides instant and effective money transfers from one account to another, failing and delaying online payments on peer-to-peer payment service apps is also bound to happen due to some valid reasons or technical issues. And the same case also goes with the Square Cash app, which provides a secure and encrypted platform for users to manage their daily online income and expenses with ease and accuracy.

If you are having difficulty sending payments on the Cash app then, learn what possible reasons lead to this situation so that resolving this issue can become a simple and quick task.

Why Does Cash App Say Transfer Failed? how fix the cash app transfer failed problem?

With the Cash App’s simple features and options, anyone in the US can send and receive money in just seconds. But when you are not able to conduct instant money transfers on the app or your Cash app payments are canceled then, it may be because of some valid reasons which you can see below here.

Payments on the Cash app might cancel when the bank or card issuer prevents money transfers from being processed. It may be because your bank account could be frozen and has an insufficient amount of money, an invalid card, etc. To resolve this issue, it would be beneficial if you contact the authorities of your bank.

Another reason for failing your Cash app payments could be when your bank account does not have sufficient money to make any transfer.

You may not be able to make payments on the Cash app when the Cash app and bank have technical glitches in their servers. Wait for the bank and the Cash app to fix their technical errors. Money failure on the Cash app can also occur when a user exceeds daily sending limits. If you want to transfer more than the daily limits on the Cash app, make sure you verify your Cash app identity first.

Entering wrong payment details at the time of money transfer on the Cash app can also cancel payment from being processed. You may be using the Cash app’s outdated version.

6 Possible Reasons Why Cash App Transfer Failed (How to Fix)

#1 Your Bank or Card Issuer is declining the Transaction: This appears to be one of the main reasons why you may not be able to send money from your Cash app account. When the bank or card issue rejects your payment your money on the Cash app can not be transferred to anyone.

You also must be wondering why the bank rejects your payment then, it also has some valid reasons such as – insufficient funds, blocked expired debit card linked to your Cash app, frozen account in a bank, etc.

To resolve this, you can contact your bank’s officials to get further help so that the money failure issue on the Cash app could be fixed easily.

#2 Your Bank Account Doesn’t Have Enough Money: How fix the cash app transfer failure problem? Unavailability of sufficient funds in the Cash app account can also fail payments. Before sending money to someone on the Cash app, make sure that your account has a valid amount of money that is required to make online payments on the Cash app. For instant money transfer, your Cash app must have enough amount of money.

#3 Potentially Fraudulent Payment: This is also one of the major reasons that lead to payment failure on the Cash app. The Cash app takes a close look at your account always and if it notices anything doubtful or illegal, it halts your money transfers and shows you the error message “Cash app payment transfer failed”.

Therefore, it is suggested to the Cash app users that they must not log into their Cash app account very often and very rarely as this raises some doubts about the identity of the Cash app account.

#4 Technical Issues With Cash App or Bank: Glitch is part of technology so do the peer-to-peer payment transferring applications. When the Cash app and the bank have some technical issues in this situation also, you may not be able to conduct an instant money transfer process. Contacting the Cash app support and bank authorities can prove to be a great help to fix this issue.

#5 Cash App Limits: According to the Cash app terms of service about daily sending and receiving limits, users can send up to $250 within 7 days and receive up to $1,000 within 30 days. But for those who want to transfer money more than these limits, one needs to get their Cash app identity verified first. If you are sending money more than the daily limit with an unverified Cash app account then, your can money transfer can not be successful.

#6 Invalid Details and/or Cards: The Cash app payment may also fail when a user enters incorrect card or payment details. Make sure you are entering the correct information about the payment you are making on the Cash app. Before tapping to confirm “send money”, do not forget to review all payment details properly.

Crypto regulation had become a priority for many world governments, currently trying to control a technology born in 2008 when Nakamoto published the Bitcoin white paper.

Photo by Kanchanara on Unsplash

In Short

• For analysts, the bitcoin regulation process had its tipping point in 2021.

• More and more countries are pronouncing themselves in favor of bitcoin regulation.

Regulate Bitcoin now!

It seems to be the new slogan of governments. The UST and LUNA fiasco was the breaking point. The G7 group, the Bank for International Settlements (BIS), the IMF, and bankers attending the Davos Forum, insist on the need for a bitcoin legal framework.

But this was not always the case. At first, no government was focusing on bitcoin. It was just a smart experiment. The Crypto world moved in parallel to the world of finance, a situation that has been changing and led to greater scrutiny.

In recent years, public interest and bitcoin surge, with a role in the global economy, is why the authorities have stopped considering the sector as a secondary industry. Jacob Farber, general counsel of the R3 consortium, warned about the situation. Farber envisioned that crypto regulation would become increasingly strict according to adoption levels. The expert made his statements considering the significant growth of institutional investments in cryptocurrencies between 2020 and 2021.

A report produced by The Bank for International Settlements (BIS) exposed the bitcoin adoption and its consequences - in the traditional financial environment - of the acceptance of assets issued under the promise of decentralized and unmediated money management.

And it is precisely the popularity of this promise among people worldwide that has set off the alarm bells of most international financial organizations, supervisory bodies, central banks, and governments.

In particular, BIS analysts point to a discourse that most regulators have been repeating for several years, seeing cryptocurrencies as a danger to finance and a focus for the commission of crimes. An argument that underlies a recognized fear of losing control of the global financial system:

The objectives of regulating cryptocurrencies are mainly similar to those of other financial assets and services and fall into three categories: - Fighting funding for illicit activities. - Secure the infrastructure of markets and payment systems. - Fraud protection for consumers and investors.

Bitcoin regulation levels

In early 2019, the South African Reserve Bank published a paper in which it set out its position on the regulation of cryptocurrencies. It set out the main approaches used by regulators, which move between two opposing regulatory stances: regulate or let pass.

Some countries took the lead, such as El Salvador and the Central African Republic, making Bitcoin legal tender in their countries. Others actively ban cryptocurrencies, as happened in China and Turkey. The third batch of countries opts for intermediate nuances.

Jan Lansky of the University of Finance and Administration in Prague, Czech Republic, presented a scoring system to rank government stances on crypto-asset regulation in 2018. Lansky's classification lists countries on a scale ranging from 0 to 5, with level 0 implying ignore and five indicating prohibitions or integration of the technology.

In 2018, when the previous ranking was released, about 150 countries were at level 0, with very few governments engaged in talking about bitcoin. By 2022, the countries in that tier reduced to 61. Some 36 countries were between levels 1 to 4, with their central banks issuing warnings and giving some guidance. Now there are more than 100. In 2018 there was only 11 level 5 nations, currently 19.

The study shows the changes in the regulatory dynamics around crypto in the last three years. The issue was of little interest (level 0) to levels 4 and 5 (maximum interest). Lansky himself made this point when presenting his classification. He forecasted the trend would lead to countries moving upwards in the scale, depending on the adoption level. That's what we see in 2022: a bipolar approach to crypto.

Research from the Thomson Reuters Institute accounts for the shift in regulatory trends. It presents 2021 as an inflection point at which cryptocurrencies ceased to be on the sidelines of the global economy.  

" In 2021, digital assets moved from the economy's margins and began to enter the mainstream, leading to more widespread public adoption. Platforms for cryptocurrency trading are growing exponentially, and the sector is covered by mass media, becoming a focus of the everyday conversation." Thomson Reuters Institute

Map of bitcoin regulation. (Source: Thompson Reuters Institute)

Bitcoin's regulatory difficulties

Hanna Halaburda, a New York University professor and economist, recently reflected on this topic. According to the professor, excessive regulation can kill innovation, but regulators must achieve a balance that promotes efficient markets and consumer safety.

Halaburda explained that, for regulators, the difficulty lies in the fact that developers created the blockchain for Bitcoin. A cryptocurrency, which, he points out, has among its main features "privacy." Bitcoin is a pseudo-anonymous coin but not anonymous, as most authorities say.

For many governments, privacy goes against their interests. Halaburda sees this trait as a weakness for cross-border usage.

" It would be attractive to the providers of those services to say, 'We are compliant, we have the seal of approval from the regulators,' which is a kind of quality signal (...) It allows them to say, 'We are well designed, and we have no malicious intentions, and our code will not benefit us. ". Hanna Halaburda

The economist favors Decentralized Finance regulation in the case of flash lenders because attackers "can borrow several governance tokens, and completely change the trajectory of the protocol, and we have no rules against that."

Supervisory bodies lack trained staff

Applying regulations adds to the problem of the lack of qualified workers and the infrastructure necessary for supervisors to manage such a work burden. The U.S. Securities and Exchange Commission (SEC) chairman, Gary Gensler, admitted that they need more human resources to regulate the cryptocurrency industry. There aren't enough people for the work burden.  

The country's Congress is considering a budget request from the SEC, expecting to receive USD 240 million for 2023. "I wish we had more to devote to this" and "we're outspent" were Gensler's words to justify the expense.

The intention is to hire 20 more specialists in the area, to increase the size of its cyber unit to 80, with new investigators and lawyers on the task force. The plan is to be better prepared to establish regulatory guidelines for the sector.

The interest in increasing the staffing of the cyber unit also appears to be driven by Biden's executive order issued last March by U.S. President Joe Biden drafting the federal approach to bitcoin regulation.

Create new laws or use existing ones?

Other dilemmas also arise in the regulatory process. It is essential to consider what lawmakers should do to accommodate bitcoin in their legal framework.

Do they create new laws or use existing ones? The disruptive nature of cryptocurrencies, with different characteristics from other traditional assets, makes it difficult to choose between the two options. In this context, most countries are opting to create new legislation. El Salvador and the Central African Republic are the first to enact bitcoin as legal tender.

The situation is not so clear in other countries that are also debating between creating new laws or modifying existing ones. In the United States, Biden's Executive Order will outline the action taken.

The president ordered the country's federal agencies to assess the risks and opportunities posed by cryptocurrencies. The order sets a 180-day deadline for government agencies to submit their reports on the role cryptocurrencies will play today. There they will decide to create new laws or use the pre-existing ones. The European Union is already working on a new rule for its part.

Cuba began regulating the issuance of licenses to companies wishing to carry out bitcoin exchange activities last April. Corporations must apply for a permit from the Central Bank of Cuba. Panama, Brazil, and Paraguay favor preparing, debating, and approving new laws for their part.

The debate and controversy continue in many territories. It will intensify in the coming months, especially given the significant regulation moves by the world's major economies, mainly the United States, the European Union, and the United Kingdom.

The approval of the controversial MiCA continues to move forward after the setback derived from the possible Bitcoin ban. The crypto community should appoint such a vote due to its significance.

EU to vote on MiCA legislation next week. (Photo by Christian Lue, @christianlue on Unsplash)

In Short

• MiCA would be a big step for Europe's crypto sector.

• Proof-of-Work is no longer a specific issue in MiCA.

• Passage of the MiCA could catapult institutional investment in the crypto industry.

What is MiCA?

Since the irruption of crypto assets in the world of finance and the growing concern of the European Union authorities about an investment in digital currencies, the leading financial institutions worldwide have warned about the danger of these assets. However, they are taking a step forward with the publication of the first draft regulation ("MiCA," Markets in Crypto Assets) on what the European market for crypto assets should look like in the future.

MiCA Debate

The European parliamentarian in charge of crypto-asset markets (MiCA), Stefan Berger, confirmed that next March 14, the European Parliament will vote on the legislation for a regulated cryptocurrency market in European territory.

This resolution caused havoc in the crypto community because it would appear to be a vehicle for a "de facto" ban on Bitcoin due to its alleged high energy consumption through Proof-of-Work (PoW). Lawmakers postponed the final resolution until they withdrew such aggressive language towards Satoshi Nakamoto's cryptocurrency. According to Berger, this vote still has great relevance.

Given the critical debate on sustainability, Berger proposes to include crypto assets, like all other financial products, in the scope of the taxonomy. They no longer foresee the separate thematization of Proof-of-Work in the MiCA.

The approval of the MiCA would be a big step for the positioning of Europe towards the crypto sector. Europe, until now, has always acted as an observer of what was happening in China or the United States. According to Berger, a "strong support for MiCA is a strong signal from the EU Parliament in favor of a technology-neutral and innovation-friendly financial sector."

Institutional investment in crypto might skyrocket

A vote in favor of MiCA would primarily affect three types of related services of the crypto sector:

• Crypto asset custody and management

• Cryptocurrency exchange platforms

• Advice, audits, or advertising of crypto products

First of all, the regulation would not apply to the underlying blockchain technologies of cryptocurrencies, nor would it apply to digital currencies issued by states and regulated by central banks. The rule applies to cryptocurrency tokens that are not considered financial instruments, such as utility and payment tokens.

However, decentralization comes at a price, meaning that crypto users have no recourse to the authorities in case of fraud, cyber-attack, or accidental loss of funds. The proposed EU regulation addresses this caveat to some extent, subjecting cryptocurrency exchange platforms (which the regulation calls "crypto-asset services") to consumer protection, transparency, and governance rules.

The ultimate goal of MiCA is to provide a common regulatory framework for all EU member states, and with that, there would be a standard licensing system by 2024. The procedure, the taxation of activities, and the reinforcement of anti-money laundering (AML) efforts are at stake. If approved, the measures would be complied with within the entire EU region and its most direct consumers such as the United Kingdom and others.

MiCA Goals

Approval would serve as a groundbreaking crypto regulation in terms of innovation, consumer protection, legal security, and the creation of reliable supervisory structures. These words are a delight for institutional investors, precisely what they need to enter the crypto market with a firm footing.