Author: Jody McDonald

Jody is a Brisbane-based freelance writer who specialises in writing about business, technology, and the future of work.

Categories
Blockchain Crypto News Europe NFTs

VeChain Blockchain Debuts in San Marino for NFT-Based Digital Vaccination Passports

The Republic of San Marino will issue NFT-based digital certificates to enable its citizens to prove their vaccination history and travel more freely across Europe, in partnership with the public blockchain platform VeChain.

The ‘vaccination passport’ will be provided, by request, to anyone vaccinated in the small, landlocked enclave – located in central Italy – to enable verification of green passes outside the European Union.

The passport will hold data about vaccination against SARS-CoV2 (the precursor of COVID-19), past infection or a negative test result.

VeChain’s passport, which it describes as a ‘Digital Covid Certificate’, contains two QR codes. The first code gives access to a certificate that meets EU standards so member states can instantly verify a person’s vaccination status, while scanning the second code opens a certificate that’s verifiable by anyone.

The solution is enabled by linking to a Non-Fungible Token (NFT): a unique and non-repeatable certificate of digital authenticity guaranteeing immutability and accessibility by being registered on VeChainThor public blockchain.

Blockchain Could Be Key to COVID-19 Recovery

Immutable records of vaccination history, enabled by blockchain solutions, could be key to pandemic recovery efforts.

Darknet markets are already openly selling fraudulent certifications of vaccination. 

If countries want to validate uptake or tie the vaccination to incentive payments, which has been flagged in Australia, medical records stored on a blockchain could streamline the process.

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Australia Crypto Exchange Swyftx

Aussie Crypto Exchange Swyftx Releases New Crypto Swap Feature

One of Australia’s largest exchanges, Swyftx, now allows investors to swap one cryptocurrency for another without having to convert it to fiat first.

Swyftx announced the new ‘Swap’ feature on June 17, reminding its users that while the ability to directly swap cryptos would make their lives easier, fees would still apply and each swap would count as a taxable event.

The Swap feature works with any cryptos actively listed on the platform, enabling users to buy into new assets even when they don’t have fiat currency available in their account.

Swyftx has grown rapidly since its launch in 2017 – it now has over 300,000 users, hosts more than 260 assets, and has a monthly trading volume of A$2 billion.

How Does It Work?

Using the hypothetical scenario of wanting to exchange Bitcoin for some Ethereum, using Swyftx’s new Swap feature a trader can automatically execute a sell order for Bitcoin and a buy order for Ethereum simultaneously. 

Within the app, a trader follows these steps:

  1. Select the asset
  2. Click the Swap tab at the top of the page
  3. Type the $ amount that you want to exchange
  4. Select the asset you wish to swap it for from the dropdown; and
  5. Click Swap to confirm the order.

Focus on Customers Drives Innovation

Swyft’s founder, Alex Harper, has previously described the importance of customer support and product innovation to the popularity of the exchange.

Notable features brought to market in 2021 include a portfolio tracking feature that lets traders see their profit/loss status in real-time, and the ability to pay using credit/debit cards – becoming the first Australian exchange to do so.

Categories
Australia Crypto News Trading

ASIC’s New 46-Page Report Details Regulations Around Crypto Trading

Australia’s financial regulator has laid out guidelines relating to the inclusion of cryptos in exchange traded products (ETPs) and is seeking market participants’ input to shape its position within the regulatory landscape.

In a consultation paper published on June 30, the Australian Securities and Investment Commission (ASIC) set out a range of proposals around making crypto assets available to retail investors through licensed Australian markets. The paper covers whether cryptos are suitable for use as an underlying security in an ETP, how they’re categorised, pricing mechanisms, risk management, and other related issues.

The paper also noted that feedback will be used to adjust rules for local operators, to promote market integrity and to protect consumers:

We consider that crypto-asset ETPs have unique features and risks which need to be recognised by market operators and product issuers in performing their functions and meeting existing regulatory obligations. 

ASIC states that the only crypto assets likely to satisfy its expectations currently are Bitcoin and Ethereum. However, it expressed a willingness to collaborate with licensees to establish criteria to assess other crypto assets. 

Under this approach, market operators could determine that a particular crypto asset is an appropriate underlying asset for ETPs on their market. 

ASIC defines ETPs as open-ended investment products that are traded on a financial market and invest in, or give exposure to, various assets or asset classes. This covers exchange traded funds (ETFs), managed funds, and securities such as exchange traded commodities (ETCs) and exchange traded notes (ETNs).

ASIC Recognises Strong Interest in Aussie Crypto ETF, Seeks Public Comment

In Australia, we are aware of interest in, and demand for, domestic crypto-asset ETPs. However, we are also aware of the real risk of harm to consumers and markets if these products are not developed and operated properly.

ASIC is inviting public comment up until July 27, 2021. The regulator is especially keen to hear about the likely compliance costs, effects on competition and other impacts of its proposals, as well as ideas on alternative approaches. 

Comments should be sent by July 27 to [email protected] with the subject heading ‘CP 343 Submission – [Entity Name]’.

ASIC Takes Cautious Approach

ASIC has so far taken a cautious approach when it comes to crypto.

In February, the regulator came out to refute claims it had a policy to stop Bitcoin ETFs, with its commissioner explaining that with appropriate rules in place, such products could be made available in Australia.

ASIC has also been actively targeting scammers and adopting other regulations to improve consumer protections, including reducing CFD (Contracts for Difference) leveraged trading available to retail traders from 30:1 to 2:1.

Categories
Crypto News DeFi Stellar Stellar Lumens

Stellar Lumens (XLM) is Launching a Decentralised Exchange (SDEX)

Open source blockchain payment network and protocol Stellar is another step closer to enabling decentralised finance (DeFi).

Two potential changes to the protocol that would enhance DeFi exchange through the introduction of automated market makers (AMMs) were discussed via a recent meeting of the Stellar Development Foundation, which was live-streamed on YouTube. 

There’s general agreement that AMMs, which allow for the creation of liquidity pools, are a simple way to attract capital and enable high volumes of trading, and that introducing them to the protocol would have great benefits for the network. It means better liquidity, which means better exchange, which means better cross-currency payments.

Justin Rice, Head of Ecosystem, Stellar Development Foundation

Adding AMMs and liquidity pools to the Stellar Decentralised Exchange (SDEX) has the potential to attract more traders and reduce transaction costs. Improving liquidity is a key facet of Stellar network’s 2021 roadmap.

DeFi Exchanges Transforming Trade 

Market participation on DeFi exchanges is increasing significantly: monthly trading volume was on track to exceed US$55 billion in January, while open source and privacy-focused web browser Brave recently announced plans to build a decentralised exchange aggregator.  

It remains to be seen whether enhancements to the functionality of Stellar will further increase the popularity of its native digital currency, the Lumen (XLM), which experienced a breakout in late 2020.

Categories
Blockchain Crypto Exchange DeFi Ethereum

Project DeXe Provides Crypto Traders with DeFi Copy Trading

A new entrant into the crypto copy trading market, DeXe Network offers what it calls the “world’s first” decentralised social trading platform.

Copying the deals of successful traders is an effective way for novices to reduce their effort and risk. While copy trading is not new to the crypto market, where DeXe Network differs is that it operates in the DeFi environment. 

An introduction to DeXe Network from the company’s YouTube channel

Simplified Copy Trading for the DeFi Ecosystem

In development since 2019, DeXe Network currently offers a standard “wallet-to-wallet copy” for decentralised copying of successful traders, where users follow another trader’s activity automatically. The application enables social trading of any Ethereum wallet addresses.

Announcing the release of its wallet-to-wallet copying feature earlier this year, DeXe said:

Trading in DeFi is a jungle that’s often extremely frustrating, with too many manual steps and complexities. The main mission of the DeXe Network is to simplify much of that into an automatic and transparent way for both traders and followers to increase their DeFi earnings.

Making Decentralised Asset Management a Reality

DeXe’s other main product, which is still in testing phase, is what’s known as DeXe Investments. It involves smart contracts that connect users with a trader in a decentralised way. 

Users can essentially invest their capital with specific traders who then manage those assets on their behalf. The user receives a synthetic token from the trader as collateral – and as the trader increases the value of their traded funds, the value of the user’s token also increases. DeXe Investments is in its final testing stages before being opened to the public. 

DeXe believes it can fill a market gap for decentralised capital management:

The necessity of such a secure and decentralised money management tool is undeniable. DeXe provides an opportunity for any user to invest safely in a decentralised environment, controlling risks and finances using just his/her wallet.

DeXe Network operates on DAO (decentralised autonomous organisation) principles and is designed to ensure users maintain control of all financial transactions in their personal wallets, with no third-party interference.

While DeFi social trading may be expanding, digital exchanges such as Binance continue to break records for trading volume. Many traders are also making profits through DeFi bot arbitrage trading, according to research on the Ethereum blockchain.

Categories
Blockchain NFTs

Fox Entertainment Invests $100 Million Into Its NFT Platform Content Creation

TV and film company Fox Entertainment has officially launched its new NFT business unit and backed its entry into the blockchain-driven market by establishing a US$100 million creator fund.

In a press release issued on June 15, Fox and its animation studio Bento Box Animation announced the launch of Blockchain Creative Labs:

Blockchain Creative Labs will provide content creators, IP owners and advertising partners end-to-end blockchain computer ecosystem solutions to build, launch, manage and sell NFT content and experiences, and fungible tokens, as well as digital goods and assets.

Fox press release

Expansion of the NFT Space

The $100 million content fund will be used to “identify growth opportunities in the NFT space”, and will be managed by Blockchain Creative Labs.

CEO of Bento Box Entertainment, Scott Greenberg, will pull double-duty as CEO of the new NFT-focused studio and report to Fox Entertainment boss Charlie Collier. Collier stated:

The emergence of blockchain technology has given birth to a new marketplace that is a natural extension of Bento Box’s talents; one that allows the team to support, elevate and reward innovators and artists in new and creatively exciting ways. Our new company, Blockchain Creative Labs, also under Scott [Greenberg] and Bento Box, will help shape and grow the fast-evolving world of creatively-led digital goods and tokens.   

Fox Entertainment CEO Charlie Collier

The Blockchain Gets Animated

In May 2021, Fox Entertainment flagged that its NFT studio would create a dedicated digital marketplace for its upcoming animated comedy, Krapopolis, from Emmy Award-winning creator Dan Harmon. 

Krapopolis is the first animated show “curated entirely on the Blockchain”

Blockchain Creative Labs will “manage and sell digital Krapopolis goods, including NFTs of one-of-a-kind characters and background art and GIFs, as well as tokens that provide exclusive social experiences to engage and reward fans”.

Categories
Banking Crypto News

Cuba Central Bank Bans US Dollar Cash Deposits

Cuba’s national bank announced on June 11 that it would temporarily put a halt to deposits in US dollars, blaming US sanctions that restrict its ability to use the dollar abroad.

According to a statement from the Central Bank of Cuba:

[…] it is increasingly difficult for Cuba to find international banking or financial institutions willing to receive, convert, process or process cash in US currency as a result of the extraterritorial effects of the blockade, and of the additional measures adopted by the United States in the last four years, which, to this day, remain in full force.

The bank said the move would not affect transfers of US dollars from abroad, the value of savings held in US dollars, or cash withdrawals (if funds are available at a given branch). 

It tweeted that the suspension of deposits in US dollars will take effect from June 21:

US Dollars Won’t be Accepted as Payment

While Cubans are not restricted from holding them, US dollars won’t be accepted as payment in the country while the measures are in place. Foreign tourists travelling to the the Caribbean island nation have been warned to bring another currency or use international cards. 

According to Cuba’s central bank the duration of the block on US dollar deposits depends on the lifting of US sanctions.

A Long History of Sanctions and Love-Hate for the US Dollar

The US’ embargo against communist Cuba began in 1958 – it is the most enduring trade embargo in modern history, with a range of economic sanctions imposed over the years. For one, the Cuban peso cannot be used for international trade.

Given this long-standing economic divide, use of US currency in Cuba has had a chequered past. Possessing dollars was once banned in the country and for many years Cuba imposed a 10% tax on greenbacks.

In 2020 it lifted that tax and introduced dollar-only stores, where US currency can be used to buy higher-quality goods to boost Cuba’s economy in response to falling revenues caused by a decline in tourism during the pandemic.

There is some speculation the central bank’s move to stop accepting deposits in dollars is an attempt to influence the black market price of the dollar. 

Could Cryptocurrency Be Key to Cuba’s Future?

Some members of the crypto community think Cuba should go the same route as El Salvador, which recently adopted Bitcoin as legal tender.

One Redditor asked, “Will they take crypto now?”, and another joked: “I can’t wait to get my Coinbase debit card and go to Cuba to spend it all!”

Another more serious take from Reddit cryptocurrency thread: “I don’t think this will reduce demand for US dollars by locals. If anything, it will skyrocket the informal exchange rate with less dollars entering the country but [the] same – or more – amount of people demanding this scarce resource.”

Categories
Blockchain DeFi Ethereum

Amazon Is Hiring Blockchain Experts To Expand into DeFi

A job ad from Amazon, America’s largest digital retailer, has hinted at the company’s move into the decentralised finance (DeFi) market.

Are you passionate about blockchain and decentralised networks and their potential to transform how people, companies, and governments transact?  

Amazon job ad

The listing, featured on jobsite LinkedIn, seeks a ‘Head of Product, Blockchain’ who can apply blockchain for a range of use cases, including DeFi, as part of the Amazon Managed Blockchain (AMB) team.

Amazon’s job ad on LinkedIn

The position description states: 

The candidate will have a track record delivering outstanding products at scale in emerging spaces, and is passionate about blockchain, distributed systems and cloud scale software. Ideally you will have experience delivering products or innovations in the blockchain space, and in particular DeFi or Traditional Financial Services.

As well as a computer science degree and more than 10 years’ experience, the job ad lists preferred qualifications including experience in blockchain applications Ethereum and Hyperledger Fabric.

Does a Blockchain Hire Signal an Amazon-Branded Crypto?

Given the increasing value of the DeFi industry, it makes sense that the e-commerce heavy hitter wants a slice of the action. 

Amazon’s recruitment of a blockchain product manager is driving speculation about exactly how the company will apply DeFi – whether accepting cryptos as payment or creating its own digital currency and exchange.  

The AMB team leverages blockchain for use cases “across DeFi, Supply Chain, Financial Services, Identity and more”, and it seems the new hire will play an important role in shaping Amazon’s approach to DeFi. As the ad says:

We are looking for an experienced product leader to drive the vision, roadmap, feature definition and go-to-market strategy of the AWS [Amazon Web Services] product offering across the rapidly evolving and broad landscape of blockchain technology and use cases.

What appears to be a move to do more in the DeFi space could help Amazon stay ahead of rivals like Cudos, a decentralised cloud computing network, which launched its private testnet in May.

Categories
Australia Bitcoin Data Scams

Australians Lost $26 Million in Bitcoin to Scams in 2020, Report Shows

A new report from the Australian Competition and Consumer Commission (ACCC) published on June 7, 2021, shows scammers are now commonly receiving money from victims via crypto.

Bank transfer remained the most common payment method used in scams, with just over $97 million lost (a 40 percent increase). Bitcoin was the second-highest payment method, with $26.5 million lost.

Targeting Scams Report (page 14)

The Targeting Scams Report reveals that Australians lost over $850 million to scams in 2020. The figure is based on combined data from Scamwatch, ReportCyber, government agencies, banks, and payment platforms.

Targeting Scams Report (Page 19)

According to the report, it’s not surprising non-traditional payment methods are seen as ideal pickings by scammers. It states: “The perceived anonymity of unregulated cryptocurrencies can impede the ability to recover funds or identify scammers.”

Scammers Take Advantage of Rising Interest in Crypto 

Scams resulting in the highest losses in 2020 included investment scams, romance scams, and business email compromises. 

Many scammers used the COVID-19 pandemic as a ruse to separate people from their hard-earned cash. But Bitcoin and other cryptocurrencies were also a popular way to lure victims via various types of scams. 

As financial analyst Martin North has previously warned crypto enthusiasts, the increasing value of crypto also brings out more ‘bad actors’ seeking naive investors.

Report Findings Explained

Scams relating to Bitcoin feature in multiple case studies included in the ACCC report, including:

  • Investment scams: Featuring sophisticated fake trading sites. ACCC says it’s increasingly difficult for people to identify legitimate investment opportunities – this type of scam resulted in record losses of $328 million in 2020.  
  • Celebrity endorsements: Where images of public figures such as TV host David “Kochie” Koch promote fake websites and trading bots. For instance, Dick Smith’s likeness was used to defraud would-be cryptocurrency investors via ads on The Guardian website. 
  • Romance baiting scams: Striking up a connection via dating apps and then convincing the target to invest money, often in cryptocurrency. ACCC’s report found that people aged 25-34 lost the most money ($7.3 million) to romance baiting in 2020. 
  • Government impersonation scams: Where the scammer contacts a victim over the phone claiming to be from a government agency investigating fraud, and demanding victims deposit money via a Bitcoin ATM.

Bitcoin investment scams were also one of the most common types of scams reported that occurred on social media sites, according to the report, which shows losses to social networking scams increased more than 22 percent in 2020.  

Other scams Crypto News Australia has reported on previously that investors should be wary of include fake invoice scams that targeted Tesla buyers, and dusting attacks – where very small amounts of crypto are added to a person’s wallet in an attempt to de-anonymise it.

If you spot a scam you can report it at www.scamwatch.gov.au.