Security Tokens to be Permitted in Nigeria
The Nigerian Securities and Exchange Commission is going to allow the use of tokens backed by real assets. But cryptocurrencies remain banned at this point.
The project is yet at the pilot launch stage: primarily the government wants to list the tokens that have already been licensed on the platforms. Experts believe that such product launch can boost the interest of Nigerian citizens in new tokens and the cryptocurrency economy can grow significantly. Nigeria accounts for the largest extent of crypto transactions conducted outside the United States. Also, considering that the number of residents aged under 14 is approximately 43% of 200 million people, it becomes clear why the government is so interested in the development of crypto technologies for the future generation.
Before the full-scale deployment of the project, Nigeria will have to issue licenses and work permits to crypto platforms. Local Central Bank has not yet agreed on the work standard, and in 2021 it completely banned financial organizations from providing services to cryptocurrency exchanges and companies that worked with digital assets. Now the Nigerian authorities will have to develop new bills to regulate the activities of exchanges and monitor how exchanges offer and provide services. The process is called regulatory incubation and is mandatory for the entire field of cryptocurrency companies. Permits to work with security tokens will be first issued 10 months after the start of the incubation period.
At the end of 2022, the Government of Nigeria announced its plans to adopt a bill to legalize bitcoin and digital assets. If the project is implemented, cryptocurrencies will be perceived as capital for investment. The authorities have previously taken the first step towards this by introducing a limit on cash withdrawals in order to encourage and expand the use of the local digital currency eNaira.
Binance to Launch Bitcoin Exchange in Kazakhstan
Binance announced to open division in Kazakhstan. This was reported by the branch manager Vladimir Smerkis. The new platform, which is to be available in the middle of 2023, will offer services for trading, storing, converting, exchanging, entering and withdrawing fiat currencies. Individuals and legal entities from any country will be able to register.
The project is being launched in Kazakhstan, as the country has adopted a law on digital assets and is now even planning to launch its own online currency. According to Smerkis, the state has become a pioneer in regulating interaction of the crypto industry with traditional financial companies. Having registered the success of Kazakhstan, Binance received a license to manage the digital asset platform and custodial activities in the region in September 2022. Prior to that, the representatives of the company signed a memorandum of understanding with the Financial Monitoring Agency of Kazakhstan.
Hong Kong Urges Banks to Service Licensed Crypto Companies
At the end of April, Hong Kong issued a statement on the need for banking sector to support companies related to digital assets. The document was signed by the Deputy Manager of NKMA, Arthur Yuen. According to him, there are no requirements that would prohibit banks from actually providing services to crypto companies. Wall Street Journal journalists had previously reported that Hong Kong banks, however, were afraid of reprisals from regulators, and therefore refused to cooperate with companies working with digital assets.
The “permit” document in question was issued as part of the initiative to create conditions for the development of the Web3 ecosystem. Other statements from the initiative document package also contain information on the need to train personnel to work with cryptocurrency assets and on the formation of teams to support the digital assets sector.
The license regulations of cryptocurrency exchanges have become the main focus of attention of Hong Kong regulators since the beginning of 2023. In April, local banks began to accept crypto companies as new clients and to publicly declare this. ZA Bank, the largest online bank in the region, was the first to announce the start of work with cryptocurrency exchange.
Deloitte Consulting Company Recruiting Crypto Specialists
Deloitte, a company offering consulting and audit services, has posted more than 300 vacancies for specialists in cryptocurrency, blockchain, digital assets and Web3, NFT, tax legislation, development. The slots are a success: on LinkedIn alone (a social network for business networking), about a thousand users at an average respond to each vacancy individually.
Experts believe that Deloitte, one of the “big four” among the world`s best consulting companies, is signaling its readiness to work with cryptocurrency projects and customers in the field. There are already some precedents: for example, Bitfury Group, a digital solutions provider, sought advice on obtaining public status from Deloitte. Gemini exchange also cooperated with the company, but it did not disclose details about the order.
Deloitte is not the first company from the “traditional” sector to recruit crypto specialists. In April 2023, the payment giant Visa announced recruiting developers to its cryptocurrency division. The head of the department, Kew Sheffield, then called the product “ambitious” and stressed that the company is in search of software engineers with extensive experience. Further, Visa was looking for specialists experienced in creating server systems and having an interest in Web3 technologies. CEO Alfred Kelly confirmed the public guesses: blockchain will be integrated into Visa services.
Binance to Launch ChatGPT-Based Bot
Binance cryptocurrency exchange announced the launch of beta version of Sensei chatbot. The bot is working within the Binance Academy framework and is available only for the investors being students on the platform. Binance Sensei is based on ChatGPT; its main goal is to assist students at any stage of their studies. According to the press release of the company, to implement this, the bot itself has “read” more than a thousand articles and glossaries of the academy.
Binance Sensei will answer any questions of the users based solely on real and verified data, and not on its own judgments. An explanation can be obtained even if the requested data is not in the system of the academy itself, but they are contained somewhere in the Internet. It is now available in English only.
Sensei is not the first artificial intelligence–based bot issued by a cryptocurrency company. Recently, crypto.com has introduced Amy assistant, which is also based on ChatGPT. The bot is now being tested to collect information. His goals are the same as those of Sensei. It can provide information about the token and its quotes or tell the user about how the industry works. The bot is available in the Price section for a limited number of users.
US Congress to Adopt Bipartisan Law on Crypto
In the House of Representatives, the law on the regulation of cryptocurrencies is being promoted by the Chairman of the Committee on Financial Services, Patrick McHenry, and the Chairman of the Committee on Agriculture, Glenn Thompson. They are sure that cryptocurrencies shall be regulated clearly and consistently. According to Patrick and Glenn, the bill will contain new rules for the structure of the digital asset market.
The development of crypto market regulations is a part of Joe Biden`s Administration program for 2022-2023. Now the parliamentarians are discussing the key principles of legislation and are going to reach a bipartisan agreement on market regulation. The document shall be adopted simultaneously with the bill on stablecoins deployment.
Despite being promoted on every side, the final law may face resistance from Sherrod Brown, chairman of the Senate Banking Committee. Back in February 2023, he questioned the real role of cryptocurrencies in the financial system and noticed that the Securities Commission should be more aggressive.
The above-mentioned bill on the regulation of stablecoins, that has previously been considered in the House of Representatives, now needs to be finalized. In April 2023, outdated data was found in the draft. Now the information must be updated.