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Exclusive: “Trust Me, Blockchain Adoption Is on the Rise,” Says Anndy Lian

Exclusive: “Trust Me, Blockchain Adoption Is on the Rise,” Says Anndy Lian

The Future of Blockchain

To get a clearer view of the evolution of blockchain in the next decade, as well as the opportunities and threats that the technology will create, we sat down with Anndy Lian, an inter-governmental blockchain expert and book author of Blockchain Revolution 2030.

Regulations and Policy Making

Q: Do you believe in the necessity of unified international laws and regulations regarding blockchain technologies to increase security regarding transactions and data management? 

A: That’s a very complex and controversial question. Blockchain technology is a global and decentralized phenomenon that challenges the traditional notions of sovereignty, jurisdiction, and regulation. Different countries have different approaches and attitudes toward blockchain and its applications, especially cryptocurrencies. Some are more supportive and proactive, while others are more restrictive and reactive. There is no global consensus or coordination on how to regulate blockchain technologies, which creates uncertainty and inconsistency for users, developers, and regulators.

“Blockchain technology is a global and decentralized phenomenon that challenges the traditional notions of sovereignty, jurisdiction, and regulation.”

On one hand, some may argue that unified international laws and regulations are necessary to increase security and trust in blockchain transactions and data management. They may claim that harmonized standards and rules would prevent fraud, money laundering, tax evasion, cyberattacks, and other illicit uses of blockchain technologies. They may also suggest that a global regulatory framework would foster innovation, collaboration, and interoperability among blockchain stakeholders and create a level playing field for fair competition.

On the other hand, some may argue that unified international laws and regulations are not feasible or desirable for blockchain technologies. They may contend that blockchain is inherently resistant to centralized control and intervention and that imposing uniform regulations would stifle its diversity, creativity, and potential. They could also point out that different countries have different legal systems, cultures, and values and that imposing a one-size-fits-all approach would violate their sovereignty and autonomy.

Therefore, I think there is no simple or definitive answer to this question. My preference is no.

Anyway, it depends on one’s perspective, interests, and values. I think there are pros and cons to both sides of the argument and that finding a balance between regulation and innovation is a difficult but important challenge for the future of blockchain technologies.

Q: Will regulatory standards and governance undermine the decentralized nature of blockchain or ensure consumer data protection and fraud prevention? 

A: That’s another interesting question. I think it depends on the type and degree of regulation and governance that are applied to blockchain technologies. Some regulation and governance may be necessary and beneficial to ensure consumer data protection and fraud prevention, as well as to promote trust, transparency, and accountability in blockchain transactions and data management.

“There is a trade-off between regulation and decentralization, and finding that optimal balance is not easy.”

However, excessive or inappropriate regulation and governance may undermine the decentralized nature of blockchain and compromise its advantages, such as efficiency, security, and innovation.

Therefore, I think there is a trade-off between regulation and decentralization and that finding the optimal balance is not easy. It may vary depending on the specific use case, context, and stakeholder of blockchain technologies. For example, some blockchain applications may require more regulation and governance than others, depending on the level of risk, complexity, and impact they involve. Similarly, some blockchain users may prefer more or less regulation and governance than others, depending on their preferences, expectations, and values.

I think the challenge is to design and implement regulations and governance that are flexible, adaptable, and responsive to the evolving needs and demands of blockchain technologies and their users. This requires a collaborative and participatory approach that involves all relevant actors, such as governments, regulators, developers, users, researchers, and civil society. This also requires a continuous learning and improvement process that monitors and evaluates the effects and outcomes of regulation and governance on blockchain technologies and their users.

Technological and Business Perspective

Q: What are the most crucial use cases of blockchain technology for the next decade? 

A: Money transfer and cross-border payments. Blockchain technology can enable faster, cheaper, and more secure transactions of money across borders without intermediaries or fees. Blockchain technology can also support the creation and adoption of cryptocurrencies, stablecoins, and CBDCs, which can offer alternative or complementary forms of money to traditional fiat currencies.

Data management and digital identity creation. Blockchain technology can provide a way to store, share, and verify data in a decentralized and immutable manner without relying on centralized authorities or intermediaries. Blockchain technology can also enable the creation and management of digital identities, which can give users more control, privacy, and security over their personal data and online activities.

Medical history digitization and personal identification security. Blockchain technology can help digitize and secure medical records, which can improve the quality and accessibility of healthcare services, as well as protect the privacy and confidentiality of patients. Blockchain technology can also help verify and authenticate personal identification documents, such as passports, driver’s licenses, or birth certificates, which can reduce fraud, identity theft, and human trafficking.

Top 3 Blockchain use cases

Q: Will smart contracts be highly adopted for trustless financial transactions and extended to stocks, bonds, futures, loans, mortgages, property rights, intellectual property, and other contracts?

A: Yes, smart contracts will be highly adopted for these purposes because they offer more efficiency, security, transparency, and innovation. They may claim that smart contracts can automate and streamline complex and repetitive processes, reduce transaction costs and risks, enhance trust and compliance, and enable new business models and opportunities. They may also suggest that smart contracts can empower users to have more control, choice, and participation in their financial activities.

Q: What opportunities does the convergence of artificial intelligence and blockchain bring? 

A: The convergence of artificial intelligence (AI) and blockchain will bring many opportunities for creating new products, services, and solutions that can benefit various domains and industries.

One of the opportunities is to create Web4, which is a term that refers to an intelligent and decentralized web ecosystem that leverages AI and blockchain technologies.

Web4 aims to overcome some of the limitations and challenges of the current web, such as centralization, privacy, security, scalability, and interoperability. It can enable more user-centric, democratic, and collaborative web applications that can empower users to have more control, choice, and participation in their online activities.

Economic Impact

Q: Will blockchain-based financial systems eventually replace traditional financial intermediaries? 

A: Blockchain-based financial systems are a relatively new and emerging phenomenon that aims to provide alternative or complementary solutions to traditional financial intermediaries, such as banks, brokers, and exchanges. Blockchain-based financial systems leverage the features of blockchain technology, such as decentralization, transparency, immutability, and programmability, to offer various financial services, such as payments, lending, trading, investing, and insurance.

Some examples of blockchain-based financial systems are cryptocurrencies, decentralized exchanges (DEXs), decentralized finance (DeFi), and central bank digital currencies (CBDCs).

 

“[There is a view that] blockchain-based financial systems will not replace traditional financial intermediaries but rather coexist or integrate with them.”

 

Some may argue that blockchain-based financial systems will eventually replace traditional financial intermediaries because they offer more efficiency, security, accessibility, and innovation. They may claim that blockchain-based financial systems can eliminate the need for intermediaries that charge fees, impose restrictions, create bottlenecks and introduce risks. They may also suggest that blockchain-based financial systems can empower users to have more control, choice, and participation in their financial activities.

However, others may argue that blockchain-based financial systems will not replace traditional financial intermediaries but rather coexist or integrate with them. They may contend that blockchain-based financial systems still face many challenges and limitations, such as scalability, usability, regulation, and adoption. In addition, they may point out that traditional financial intermediaries still provide valuable functions and services, such as trust, stability, compliance, and expertise.

Q: Will traditional financial service providers change their business model and embrace blockchain technologies? 

A: Yes, traditional financial service providers will change their business model and embrace blockchain technologies because they recognize the value and potential of blockchain technologies for improving their services, processes, and products.

They may claim that traditional financial service providers will adopt blockchain technologies to enhance their customer experience, reduce operational costs, comply with regulatory requirements, and gain a competitive edge. They could also suggest that traditional financial service providers will collaborate with blockchain startups, platforms, and networks to leverage their expertise, resources, and networks.

Q: Will companies that will tokenize their assets get a competitive advantage?

A: I think companies that will tokenize their assets will get a competitive advantage because they will be able to offer more attractive and innovative products and services to their customers, partners, and investors.

They may claim that tokenization of assets will enable companies to create new revenue streams, reduce operational costs, enhance customer experience and loyalty, and access new markets and investors. They could also suggest that the tokenization of assets will give companies an edge over their competitors, who are still using traditional methods of asset management and transfer.

Anndy Lian

Socio Cultural Impact

Q: Will blockchain technology eventually get widespread adoption? Will people start using and exploiting its potential even without fully understanding how the underlying technology works?

A: It seems that blockchain technology is gaining momentum and recognition among business leaders, but it still needs to overcome some obstacles and uncertainties before it can achieve mass adoption.

Such challenges and risks as regulatory uncertainty, lack of standardization, scalability issues, interoperability problems, and cultural resistance may hinder the widespread adoption of blockchain technology in the near future.

According to a survey by Deloitte, almost 80% of global executives view blockchain as “very important,” and more than 60% of executives believe regulatory issues pose a barrier to blockchain adoption. Another survey by SpendMeNot found that 81% of the 100 largest public companies indicate they use blockchain technology, and 30% of executives believe China will become a blockchain leader by 2023.

As for whether people will start using and exploiting its potential without fully understanding how it works, I think that depends on how user-friendly and accessible the blockchain applications are. Some people may not need to know the technical details of how blockchain works as long as they can trust and benefit from its features. Others may want to learn more about the underlying technology and how it can empower them to create value and innovation.

Trust me. All these are in the works right now. You may not see it, but [blockchain] adoption is on the rise.

Q: We all use the Internet and email but never think about how it works. Will it eventually be the case with blockchain, or is a proper education and understanding of the underlying technology required? 

A: Blockchain will be used and implemented without informing you. This is already in the works. Some financial institutions and banks are using blockchain technology to clear the back-end functions that their customers initiate. They do not need to tell everyone about their adoption.

I think blockchain education is important for both users and developers of blockchain applications. Users need to be informed and empowered to use blockchain effectively and responsibly, while developers need to be skilled and innovative to create blockchain solutions that meet the needs and expectations of users.

Threats and Obstacles

Q: What are the major headwinds slowing down the development and further adoption of blockchain technologies?

A: Scalability. Blockchain networks can be slow and inefficient due to the high computational requirements needed to validate transactions. As the number of users, transactions, and applications increases, the ability of blockchain networks to process and validate them in a timely way becomes strained. This makes blockchain networks difficult to use in applications that require fast transaction processing speeds.

Regulation. Blockchain technology is subject to legal uncertainty and regulatory complexity, which can create barriers or conflicts for its adoption and enforcement. Different countries have different approaches and attitudes toward blockchain technology and its applications, especially cryptocurrencies. Some are more supportive and proactive, while others are more restrictive and reactive. There is no global consensus or coordination on how to regulate blockchain technology, which creates uncertainty and inconsistency for users, developers, and regulators.

Acceptance. Blockchain technology is still relatively new and unfamiliar to many people, who may not understand its benefits or trust its features. Blockchain technology also challenges the traditional notions of authority, intermediation, and control, which may create resistance or skepticism from some stakeholders. Blockchain technology requires a cultural shift and a mindset change for its adoption and acceptance.

Q: Sustainability is also a growing concern. Is blockchain able to enhance environmental sustainability?

A: Blockchain technology can enable more effective and accountable climate action initiatives, such as carbon markets, climate finance, or climate governance. Blockchain technology can also enable the creation and exchange of digital tokens that represent environmental values or assets, such as carbon credits, green bonds, or natural capital.

“Start With the Basics”

Q:  Anndy, what is your personal advice to those who haven’t yet delved into the world of cryptocurrencies and blockchain technologies? What is the starting point? 

A: Start with the basics. Before diving into the technical details or the latest trends, it is important to understand the fundamental concepts and principles of cryptocurrencies and blockchain technologies.

You can start by learning about what cryptocurrencies are, how they work, and why they matter. You can also learn about what blockchain technology is, how it works, and why it is revolutionary.

There are many online courses and resources available for learning about blockchain technology, as well as initiatives that support blockchain innovation in education. I think these are valuable opportunities for anyone who wants to learn more about blockchain and its potential impact.

You can follow Anndy for the latest industry updates on LinkedIn and Twitter.

 

 

Source: https://www.techopedia.com/the-future-of-blockchain-anndy-lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Dogecoin rise and memecoin season

Dogecoin rise and memecoin season

Memecoins are based on memes and have higher volatility compared to cryptocurrencies like Bitcoin and Ethereum . In 2021, meme coins and cryptocurrencies with dog memes recorded exponential growth.

In 2022, however, it experienced significant decreases as a prisoner of the general decline in the market. However, memecoins are heavily influenced by social media communities and online apps, the sudden emotions that develop in these places. Accordingly, its value can rise a lot overnight, or it can experience big drops overnight. Last night, the development on the Dogecoin front increased the Dogecoin price and could affect other memecoins as well.

Dogecoin development

Last night,  the latest development on the Twitter and Dogecoin fronts increased the DOGE price by more than 25 percent. Social media giant Twitter’s logo has changed with the DOGE logo. With this development, “Is the Memecoin season starting?” brings the question. The latest development in DOGE has pushed the coin price up 30 percent to around $0.107, the December high before a brief reversal.

This development can also be interpreted as a reversal signal for memecoins. In particular, coins with dog memes can be positively affected by the increase in Dogecoin price and the developments based on this increase.

The use of Shiba Inu as the new Twitter logo could be part of a larger strategy to put memecoin at the center of social media’s crypto capabilities. Known for his Dogecoin adoration, Elon Musk and his lawyers asked a US judge last week to drop the case against Dogecoin ( DOGE ). Tesla and SpaceX owner Elon Musk was sued for $258 billion for allegedly creating a “pyramid scheme” popularly known as a “pyramid scheme” to support Dogecoin.

The Twitter community is reacting to this logo update. The Twitter community, including DOGE holders, is excited about Dogecoin price action and the potential for it to spill over into other memecoins. Among the reactions from the Twitter community is a tweet from analyst Coin Bureau.

 

Some trader groups do not like Elon Musk’s support of Dogecoin, interpreting it as a “distraction” from the many “available financial advantages” associated with Bitcoin.

Is Memecoin season starting?

In parallel with the price of Dogecoin, SHIB and BabyDoge, which are among other memecoins, also increased. While SHIB increased by approximately 5 percent; BabyDoge, on the other hand, experienced an increase of approximately 7 percent.

Anndy Lian, a business strategist, hinted that memecoin season has arrived and asked, “Which memecoin is next?” He tweeted that:

 

The breed of dog in the memes of Shiba Inu and Dogecoin is the Shiba Inu. In this way, among the memecoins that became popular after the Twitter update, Shiba Inu comes after Dogecoin. At the time of this writing, SHIB is trading at $0.00001145, up 5.82 percent in the last 24 hours.

Floki Inu is also among the memecoins that started to rise with the news of Dogecoin. A tweet was taken from Floki Inu’s official account as follows:

 

Former US Congress candidate and now crypto podcaster and founder of Gokhshtein Media, David Gokhshtein, posted a tweet about memecoins that brought an enthusiastic response from the crypto community. He did not mention any coins in his tweet. Gokhshtein wonders if memecoins will rise again. Gokhshtein tweeted, asking his followers if they believe memecoins will make another bull run.

 

David Gokhshtein claims that SHIB will reach $0.01. Gokhshtein is a well-known Shiba Inu and Dogecoin holder who has been supporting these coins for a long time. Gokhshtein has also been tweeting quite a bit lately about SHIB’s rival, Floki Inu (FLOKI). In his previous tweets, he had expressed several times the view that memecoins could bring a large number of new retail investors to the crypto market and get them interested in Bitcoin and other major cryptocurrencies.

DOGE price analysis

The Twitter update triggered an approximately 30 percent increase in DOGE price, allowing DOGE, the largest meemcoin by market cap, to break the tough resistance level at $0.082 at the 200-day EMA. DOGE hovers around $0.100 to record intraday highs of $0.105 before a short reversal.

The massive surge in the price of Dogecoin briefly overtook Cardano (ADA) to become the seventh largest cryptocurrency by trading volume. However, the decrease in excitement experienced since then against Dogecoin, which is known to be very quickly affected by community feelings, has brought the price of DOGE to $ 0.091.

The developments in Dogecoin and this sudden price rise have started a new topic of discussion in the crypto community. It is debated whether this rise will start a new rally among dog-inspired cryptocurrencies after all.

The rise of Dogecoin has also led to rises in projects on the Doge Chain. According to CoinMarketCap data; Transaction volume on projects on Doge Chain has increased by nearly 30 percent in the last 24 hours.

 

 

Dogecoin yükselişi ve memecoin sezonu

Memecoin‘ler meme’lerden yola çıkar ve Bitcoin, Ethereum gibi kripto paralara kıyasla daha yüksek volatiliteye sahiptir. 2021 yılında meme coin’ler ve dog (köpek) meme’li kripto paralar, üstel bir büyüme kaydetti.

2022 yılında ise piyasadaki genel düşüşün esiri olarak kayda değer düşüşler yaşadı. Bununla birlikte memecoin’ler, sosyal medya toplulukları ve çevrimiçi uygulamalardan, bu yerlerde gelişen ani duygulardan oldukça fazla etkilenir. Buna göre de değeri bir gecede çok yükselebileceği gibi bir gecede büyük düşüşler de yaşayabilir. Dün gece, Dogecoin cephesinde yaşanan gelişme Dogecoin fiyatını artırdığı gibi diğer memecoin’leri de etkileyebilir.

Dogecoin gelişmesi

Dün gece saatlerinde, Twitter ve Dogecoin cephesinde yaşanan son gelişme, DOGE fiyatında yüzde 25’ten fazla artış sağladı. Sosyal medya devi Twitter’ın logosu DOGE logosuyla değişti. Bu gelişmeyle birlikte akıllara “Memecoin sezonu başlıyor mu?” sorusunu getiriyor. DOGE’de yaşanan son gelişme coin fiyatını, yüzde 30 artırarak kısa bir geri dönüşten önce aralık ayının en yüksek seviyesi olan 0,107 dolar civarına yükseltti.

Bu gelişme memecoin’ler için bir geri dönüş sinyali olarak da yorumlanabilir. Özellikle de köpek meme’li coin’ler, Dogecoin fiyatındaki artıştan ve bu artışa dayalı yaşanacak gelişmeler sayesinde olumlu etkilenebilir.

Shiba Inu’nun yeni Twitter logosu olarak kullanılması, memecoin’i sosyal medyanın kripto yeteneklerinin merkezine yerleştirmek için daha büyük bir stratejinin parçası olabilir. Dogecoin hayranlığıyla bilinen Elon Musk ve avukatları geçen hafta bir ABD yargıcından, Dogecoin (DOGE) hakkındaki davanın düşürülmesi talebinde bulunmuştu. Tesla ve SpaceX’in sahibi Elon Musk’a Dogecoin’i desteklemek için halk tarafından “saadet zinciri” olarak bilinen bir “piramit şeması” oluşturduğu iddiasıyla 258 milyar dolarlık tazminat davası açılmıştı.

Twitter topluluğu, yaşanan bu logo güncellemesine tepki gösteriyor. Dogecoin fiyat hareketleri ve bunun diğer memecoin’lere yansıma potansiyeli ele alındığında DOGE sahipleri de dahil olmak üzere Twitter topluluğu heyecanlanıyor. Twitter topluluğundan gelen tepkiler arasında analist Coin Bureau’nun bir tweet’i de yer alıyor.

 

Bazı trader grupları ise Elon Musk’ın Dogecoin’i desteklemesinden hoşlanmıyor ve bu durumu, Bitcoin ile ilişkili çok sayıdaki “mevcut finansal avantaj”dan “dikkat dağıtma” şeklinde yorumluyor.

Memecoin sezonu başlıyor mu?

Dogecoin fiyatına paralel olarak diğer memecoin’ler arasında yer alan SHIB ve BabyDoge de artış yaşadı. SHIB, yaklaşık olarak yüzde 5 artarken; BabyDoge ise yaklaşık olarak yüzde 7 artış yaşadı.

İş stratejisti olarak görev yapan Anndy Lian ise memecoin sezonun geldiğini ima ederek “Sıradaki memecoin hangisi?” şeklinde bir tweet paylaştı:

 

Shiba Inu ve Dogecoin’in meme’lerindeki köpek cinsi Shiba Inu’dur. Bu sayede de Twitter güncellemesinden sonra popüler hale gelen memecoin’ler arasında Dogecoin’den sonra Shiba Inu geliyor. SHIB, bu yazının hazırlandığı sıralarda son 24 saatteki yüzde 5.82’lik artışla 0.00001145 dolardan işlem görüyor.

Floki Inu da Dogecoin haberiyle yükselmeye başlayan memecoin’ler arasında yer alıyor. Floki Inu’nun resmi hesabından şu şekilde bir tweet atıldı:

 

Eski ABD Kongresi adayı ve şimdi kripto podcaster ve Gokhshtein Media’nın kurucusu David Gokhshtein, kripto topluluğundan coşkulu bir yanıt getiren memecoin’ler hakkında bir tweet yayınladı. Tweet’inde herhangi bir coin’den bahsetmedi. Gokhshtein, memecoin’lerin tekrar yükselip yükselmeyeceğini merak ediyor. Gokhshtein tweet atarak, takipçilerine memecoin’lerin başka bir boğa koşusu yapacağına inanıp inanmadıklarını sordu.

 

David Gokhshtein, SHIB’nin 0,01 dolara ulaşacağını iddia ediyor. Gokhshtein, uzun süredir bu coin’leri destekleyen tanınmış bir Shiba Inu ve Dogecoin sahibidir. Gokhshtein ayrıca son zamanlarda SHIB’nin rakibi Floki Inu (FLOKI) hakkında oldukça fazla tweet atıyor. Daha önceki tweetlerinde, memecoin’lerin kripto piyasasına çok sayıda yeni perakende yatırımcı getirebileceği ve Bitcoin ve diğer büyük kripto paralarla ilgilenmelerini sağlayabileceği görüşünü birkaç kez dile getirmişti.

DOGE fiyat analizi

Twitter güncellemesi, DOGE fiyatında yaklaşık olarak yüzde 30’luk bir artışı tetikleyerek piyasa değerine göre en büyük meemcoin olan DOGE’nin 200 günlük EMA’da zorlu direnç seviyesini 0,082 dolardan aşmasını sağladı. DOGE, kısa bir geri dönüşten önce, gün içi en yüksek seviyesi olan 0,105 doları kaydetmek için 0,100 dolar civarında dolaşıyor.

Dogecoin fiyatındaki büyük artış, kısa süreliğine de olsa Cardano’yu (ADA) geçerek işlem hacmine göre en büyük yedinci kripto para birimi olmasını sağladı. Bununla birlikte topluluk duygularından çok çabuk etkilendiği bilinen Dogecoin’e karşı o zamandan beri yaşanan heyecan azalışı, DOGE fiyatını 0,091 dolar seviyelerine çekti.

Dogecoin’de yaşanan gelişmeler ve bu ani fiyat yükselişi ise kripto topluluğunda yeni bir tartışma konusu başlattı. Bu yükselişin her şeye rağmen köpeklerden esinlenen kripto para birimleri arasında yeni bir ralli başlatıp başlatmayacağı tartışılıyor.

Dogecoin’in yükselişi, Doge Chain üzerindeki projelerde de yükselişler yaşanmasını sağladı. CoinMarketCap verilerine göre; Doge Chain üzerindeki projelerdeki işlem hacmi son 24 saatte yüzde 30’a yakın bir yükseliş kaydetti.

 

Source: https://tr.cointelegraph.com/news/is-memecoin-season-starting

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Crypto Faces Critical Moment as Regulatory Walls Rise

Crypto Faces Critical Moment as Regulatory Walls Rise

I have warned investors that a significant decline in the crypto market could occur if Bitcoin’s value falls below $24,000, amidst a bullish trend since mid-December. This prediction has come true as Bitcoin’s price has dropped by 10% from its February peak, with the possibility of further drops to $20,000. Crypto’s growth in 2022 was driven primarily by monetary policy, but regulations may become a decisive factor this year in determining which companies will succeed and which will fail.

This situation is due to several factors, including the sustained tightening of liquidity and the suspension of bank transfers, notably by Binance in early February. The closure of Silvergate’s exchange network in early March has exacerbated the existing predicament. Furthermore, Signature Bank has recently informed its crypto exchange clients that SWIFT payment transfers of less than $100,000 will no longer be supported, which is related to Coinbase suspending trading of Binance USD. This is a pressing concern that must be considered.

A growing effort is underway to reconsider the relationship between traditional banking systems and the rapidly evolving crypto economy. The fundamental principle of Bitcoin was to create a financial system that operates independently of banks, and some experts are advocating for a completely “bankless” crypto ecosystem. However, the regulatory crackdown this year has given rise to offshore stablecoins such as Tether’s, which continue to gain traction despite a decline in trading volumes.

The lack of a mechanism for transferring traditional currency into the crypto space appears to be causing stagnation, depriving it of the innovation typically associated with a burgeoning industry. This is where Silvergate has emerged as a critical link between investors, hedge funders, and venture capitalists. In addition to facilitating these essential connections, Silvergate allows its clients to settle their balances at any time of day, including weekends and holidays. This 24-hour settlement feature is paramount in the crypto market, allowing investors to capitalize on arbitrage opportunities and ensuring the seamless exchange of collateral, which is managed through smart contracts.

As regulatory hurdles continue to crop up around crypto, the potential consequences of these barriers cannot be ignored. A recent report from Coindesk reveals that close to 200 members of Congress accepted campaign donations from FTX executives. This raises concerns that those who have received these donations may be less inclined to support further regulations, fearing a negative association with an exchange that has previously misused user funds.

Adding to mounting concerns, on January 3, the U.S. Federal Reserve, the FDIC, and the Treasury Department’s Office of the Comptroller of the Currency issued a joint statement warning about the risks that crypto-assets pose to the banking sector. While regulators have previously cautioned against the instability of cryptocurrencies, this latest alert highlights the impact that the crypto ecosystem could have on the financial resilience of traditional banks. This shift in warning, reportedly initiated by the Biden administration, has had a significant impact, causing a chain reaction.

On January 13, the Securities and Exchange Commission (SEC) leveled accusations against the Gemini crypto exchange and Genesis Trading, asserting that the two firms failed to register a crypto lending scheme as a securities offering. The SEC’s stance is that the lending scheme offered by the two firms necessitated registration with the SEC and compliance with relevant securities laws and regulations. The failure to meet these requirements, according to the SEC, put investors at risk and could have violated securities laws.

Custodia Bank, which was founded three years ago to serve as an intermediary between digital assets and the U.S. dollar payment system, suffered a significant setback in late January. The bank was denied membership to the Federal Reserve System and was also refused a master account. One of the primary advantages of being part of the Federal Reserve System is access to a master account, which allows banks to settle transactions with other banks and financial institutions. Custodia Bank’s lack of a master account means that it will have to rely on other banks to handle its transactions, resulting in higher fees and slower processing times. This puts the bank at a significant disadvantage compared to other banks in the digital asset space that have successfully obtained membership in the Federal Reserve System.

Signature Bank has taken a bold move in the face of the crypto industry’s growing regulatory challenges. In early February, the bank announced its decision to suspend SWIFT transfers of crypto-related firms of less than $100,000. The move is a clear indication of the financial institution’s cautious approach to cryptocurrencies, which have been plagued by regulatory ambiguity and concerns over financial crimes. The decision is expected to impact many smaller crypto firms that rely on such transfers, as they may now have to seek alternative methods to move funds. However, some experts argue that the bank’s move is a necessary step to mitigate risks and safeguard the banking sector from potential threats posed by the crypto industry.

In early February, Kraken, a popular crypto exchange, agreed to pay $30 million to settle charges filed by the SEC that it provided unregistered securities through its staking program. The program offered a fixed rate of return to users, regardless of the actual performance of the staked assets, which the SEC determined to be a violation of securities laws. Kraken’s failure to properly register with the SEC put investors at risk and created an unfair advantage for the platform. The settlement serves as a reminder that the cryptocurrency industry is subject to the same rules and regulations as traditional financial markets.

On February 13, Paxos was ordered to halt production of the Binance-branded BUSD stablecoin over concerns that Paxos may have been negligent in monitoring the application of the stablecoin. As a result, the market capitalization of BUSD plunged from $16 billion to its current value of $8 billion. The decision by the New York Department of Financial Services (NYDFS) to halt the production of BUSD caught many in the industry off guard. Paxos had been considered one of the most reliable stablecoin issuers in the market, having received regulatory approval from the NYDFS to operate as a trust company. However, the NYDFS’s move underscores that even well-established firms are subject to regulatory scrutiny.

On March 4, Silvergate Bank made the unexpected move of suspending its exchange network which resulted in the termination of the bank’s relationships with Circle, Crypto.com, and Coinbase. The closure of the exchange network also had potential implications for Bybit, as the exchange had to stop dollar transfers. Silvergate Bank’s decision comes amid mounting scrutiny due to its links with FTX.

On March 8, four days later, Silvergate Bank announced that it was shutting down and liquidating its operations, citing the majority of its deposits leaving its balance sheet, which has impaired its financial stability ratios. The closure of Silvergate Bank highlights the potential fragility of financial institutions in the crypto space and the impact of regulatory changes on their operations.

In a major development for the crypto industry, on March 10, the New York Attorney General’s office filed a lawsuit against KuCoin for alleged violations of securities and commodities laws. The lawsuit accuses KuCoin of misrepresenting itself as an exchange while functioning as a securities and commodities broker-dealer and seeks to block the exchange’s access in New York. However, what is particularly noteworthy about the complaint is the assertion that Ethereum, the second-largest cryptocurrency by market capitalization, is also a security. The lawsuit argues that ETH, along with other cryptocurrencies such as LUNA and UST, is a speculative asset that relies on third-party developers to provide profit to holders of the cryptocurrency. This lawsuit could have significant implications for the entire industry, as it could open the door to increased regulatory scrutiny and potentially even more legal challenges in the future.

I am very sure that crypto investors are not giving up without a fight. Although Kraken faced a staking defeat, Coinbase CEO Brian Armstrong has defended the firm’s staking service and is willing to defend its product in court if necessary. Well-funded firms such as Coinbase and Ripple may have the financial means to take on the SEC. Ripple’s CEO Brad Garlinghouse has warned that SEC regulations could make the U.S. a less attractive location for crypto firms.

Although the SEC had initially opposed Binance’s acquisition of Voyager Digital which filed for bankruptcy after Three Arrows Capital defaulted on a $670 million loan provided by the broker, a bankruptcy judge has approved the deal. While there are still regulatory obstacles to overcome, the judge appears to be leaning toward approval. Following the announcement, the Voyager VGX tokens saw an increase of 16% in 24 hours, potentially resulting in Voyager creditors receiving 73% of their funds back.

In a separate case, judges are questioning why Bitcoin spot markets can be manipulated while Bitcoin futures markets, which are approved for trading on U.S. soil and through ETFs, cannot. The SEC has claimed that a 99% correlation does not equate to causation, citing the fragmentation of Bitcoin spot markets compared to the centralized trading of Bitcoin futures on the CME in Chicago. As a result, the discount on the Grayscale GBTC has decreased from an all-time low of -48% to -36%, as speculation about the possibility of converting the trust into an ETF has increased. The spread has likely reached a floor with a potential downside of -10% and an upside of +33%, which I predicted in our 2023 outlook report published in December 2022. Although a Bitcoin ETF would have been significant two years ago, many interested investors have since set up alternative accounts to buy Bitcoin.

However, all hope is not lost, and these developments indicate potential opportunities in the cryptocurrency market for investors.

Source: https://intpolicydigest.org/crypto-faces-critical-moment-as-regulatory-walls-rise/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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