Binance Replaces BUSD with TUSD and USDT in SAFU Fund
Binance committed a percentage of trading fees to grow the fund, which was valued at $1 billion as of Jan. 29, 2022. SAFU’s wallets initially consisted of BNB (BNB), Bitcoin (BTC), and Binance USD, which has now been replaced by TUSD and USDT. Binance assured users that the change would not impact them, their funds would continue to be held in publicly verifiable addresses, and BUSD would continue to be supported. The exchange added that it would closely monitor the fund to ensure that it remains sufficiently capitalized and top it up periodically as necessary using its own funds.
On Feb. 13, BUSD issuer Paxos Trust Company announced it would stop issuing new BUSD effective Feb. 21 in accordance with the directions of and in coordination with the New York Department of Financial Services. Days after reports emerged that United States regulators were scrutinizing Paxos and BUSD, Binance minted nearly $50 million worth of TUSD. The transaction took place on Feb. 16, according to data from Etherscan, and came two days after Binance CEO Chanpeng Zhao mentioned in a Feb. 14 Twitter Space that Binance would look to “diversify” its stablecoin holdings away from BUSD.
With the U.S. Securities and Exchange Commission also taking action against BUSD, some crypto community members have questioned whether stablecoins are the real issue at hand or if it’s actually about Binance, as the SEC didn’t take action against Paxos’ gold-backed stablecoin, Pax Gold (PAXG).
Stablecoins, such as BUSD, TUSD, and USDT, are digital currencies designed to maintain a stable value relative to a reference asset, such as the US dollar. They have become increasingly popular in recent years as a means of facilitating transactions on cryptocurrency exchanges without having to convert to fiat currency, which can be costly and time-consuming.
However, stablecoins have also come under scrutiny from regulators due to concerns about their lack of transparency and potential for use in illicit activities. The recent actions by the SEC and the New York Department of Financial Services against BUSD and Paxos are part of a wider crackdown on stablecoins and cryptocurrency more broadly.
In response, cryptocurrency exchanges and other market participants are looking to diversify their stablecoin holdings to reduce their exposure to any one particular asset. This appears to be the motivation behind Binance’s decision to replace BUSD with TUSD and USDT in its SAFU fund.
Australian Banks Ordered to Report Crypto Transactions
According to the Australian Financial Review, the APRA has instructed banks to improve their reporting on crypto assets and provide daily updates to the regulator. The agency has started requesting banks to declare their exposures to startups and crypto-related companies, citing three people familiar with the matter. The new measures are reportedly part of the APRA’s increased supervision of the banking sector, aimed at mitigating the risk of similar collapses occurring in Australia’s banking system.
The move comes in the aftermath of the collapse of global banks, including Credit Suisse and SVB, which have raised concerns over the stability of the financial system. On March 19, UBS Group agreed to buy Credit Suisse for $3.2 billion after the latter collapsed over the weekend. The banking sector has been facing pressure from investors and regulators to improve risk management and transparency.
Barrenjoey analyst Jonathan Mott reportedly warned that while the situation “remains stable” for Australian banks, confidence could be quickly disrupted, putting pressure on bank margins. The APRA’s increased scrutiny of cryptocurrency transactions is aimed at mitigating this risk, as the regulator seeks to gain a deeper understanding of the potential impact of crypto assets on the stability of the banking system.
The Australian government has been taking a cautious approach to regulating the cryptocurrency industry, with the Reserve Bank of Australia (RBA) recently stating that it has no plans to issue a digital version of the Australian dollar. However, the APRA’s move to increase reporting requirements on crypto assets suggests that regulators are taking a more active role in monitoring the sector.
In conclusion, the APRA’s decision to order local banks to report on cryptocurrency transactions reflects the growing concern over the potential risks posed by crypto assets to the stability of the banking system. While the situation in Australia remains stable, the recent collapses of global banks have highlighted the need for improved risk management and transparency in the financial sector. The APRA’s increased scrutiny of the crypto industry is a step towards achieving this goal, as regulators seek to gain a deeper understanding of the potential impact of crypto assets on the stability of the financial system.
Bitcoin Hodlers Experience Profits on Majority of Trading Days
The profitability of Bitcoin can be attributed to its hard limit on total supply and seamless global usability. These factors have contributed to its status as a store of value, and the historical price performance of Bitcoin confirms its potential as a profitable investment. However, investors must understand Bitcoin’s market cycles to maximize their profits and avoid buying at the top and selling at the dip.
Out of the 4,593 trading days, only 531 or 11.56% were unprofitable for long-term hodlers. These unprofitable days occurred between December 28, 2022, and June 12, 2022, during which Bitcoin was priced above the range of $26,246.58 and $28,344.5. This emphasizes the importance of understanding market cycles, and investors should exercise caution to avoid significant losses.
While some investors prefer to hold Bitcoin long-term, others make daily trades on crypto exchanges for consistent profits. Regardless of the investment strategy, understanding the market cycles and trends is crucial for maximizing profits.
However, investing in Bitcoin is not without its risks, as demonstrated by the recent security vulnerability discovered by General Bytes. The manufacturer of Bitcoin ATMs had to shut down its cloud services after discovering a vulnerability that allowed attackers to access users’ hot wallets and gain sensitive information. Karel Kyovsky, the founder of General Bytes, stated that multiple security audits since 2021 did not identify the vulnerability.
In conclusion, Bitcoin’s profitability challenges the historical narrative of depreciating volatility in the crypto market. Hodlers have experienced profits on the majority of trading days, making Bitcoin a potentially lucrative investment asset. However, understanding market cycles and trends is essential for investors to maximize their profits and avoid significant losses. Additionally, investors should be aware of the potential risks associated with investing in Bitcoin, such as security vulnerabilities.
MetaMask Enables Direct Bank Transfers for Crypto Purchases in Nigeria
Previously, MoonPay had a card integration feature, but about 90% of attempts to buy crypto with a credit or debit card were declined, according to Santos, a MetaMask spokesperson. With the new integration supporting local bank transfers, crypto purchases on MetaMask are now faster and cheaper, allowing users to access crypto without sending assets from a centralized exchange.
Despite the current issues with crypto on-ramps in Nigeria, the country has emerged as a major market for MetaMask, ranking third in mobile monthly active users. It is also among the top ten countries in terms of visitors to metamask.io over the last month, Santos added. Nigeria is one of the world’s top 20 ranked countries in cryptocurrency adoption, according to the Chainalysis 2022 Global Crypto Adoption Index. Some reports suggest that 35% of the Nigerian population aged 18 to 60 owned or traded cryptocurrencies in 2022.
This high level of adoption is despite the Central Bank of Nigeria banning banks from servicing crypto exchanges in February 2021. However, in December 2022, local media reported that the Nigerian government was preparing to pass a law recognizing the usage of Bitcoin (BTC) and other cryptocurrencies to keep up to date with “global practices.” This move, coupled with the new integration between MetaMask and MoonPay, may signal a growing acceptance of cryptocurrencies in Nigeria.
It is important to note that Nigeria’s cryptocurrency market faces challenges such as a lack of regulatory clarity and security concerns. However, the partnership between MetaMask and MoonPay provides a viable solution for those seeking to invest in crypto without the use of credit or debit cards. As the adoption of cryptocurrencies continues to grow in Nigeria and other countries around the world, we may see further innovations aimed at increasing accessibility and usability.
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