The new rules would make crypto income from exchanges outside Brazil taxable at the same rate as local income.
Brazilians may soon be required to pay up to 15% tax on income derived from cryptocurrencies held on exchanges outside the country after new income tax rules were approved by the Federal Senate of Brazil on Nov.
The bill has already passed in the Chamber of Deputies and is expected to be approved by President Luiz Inácio Lula da Silva, as his administration initiated the income tax rule changes, Cointelegraph Brazil reports.
Under the bill, any Brazilian who earns more than 6,000 Brazilian reals ($1,200) on exchanges based outside Brazil would be subject to the tax, effective Jan. The change makes those funds taxable at the same rate as funds held domestically.
Fortunately, you are misunderstanding this
Brazil is not taxing people regardless of residency
What changes with PL 4173/23:
CURRENTLY: Tax-deferral
If you own an offshore company or trust while being a Brazil tax resident, you only pay tax when it distributes profits to… https://t.co/iiG1YyVUr9
— BowTiedGlobe | Your Freedom Dealer (@BowTiedGlobe) November 29, 2023
The bill also affects “exclusive funds” — investment funds with a single shareholder — and foreign companies active on the Brazilian financial market.
“The government is creating a tax because it is a poor manager.”
In September, the governor of the Banco Central do Brazil, Roberto Campos Neto, announced plans to tighten regulations on cryptocurrency in connection with a sharp rise in its popularity in the country. At the time, he said he suspected crypto was being used for tax evasion.
After a failed breakout the day prior, hopes were high that the Federal Reserve’s “preferred” inflation metric, the Personal Consumption Expenditures (PCE) Index, would help fuel volatility.
This, however, had not come to pass at the time of writing, with November’s final Wall Street open still to come.
PCE came in broadly in line with expectations — a boost for the Fed’s monetary tightening and reinforcement of declining inflation.
Querying whether interest rates might now begin to fall — the key takeaway for risk assets — financial commentary resource The Kobeissi Letter nonetheless stayed cautious.
“Another sign inflation is falling but still above the Fed’s 2% target. Can the Fed really pivot now?” it queried on X (formerly Twitter) after the PCE results.
Kobeissi once again alluded to words from Bill Ackman, founder and CEO of hedge fund Pershing Square Capital Management, who earlier in the week predicted rate cuts beginning as soon as Q1, 2024.
“It’s important to note that the effects of monetary policy lag. However, does the Fed really want to risk jumping the gun and cutting rates too soon?” it continued.
“We believe calls for rate cuts in Q1 2024 are too ambitious.”
Fed target rate probabilities chart. Source: CME Group
PCE did not manage to dent market expectations of Fed policy, with data from CME Group’s FedWatch Tool still showing almost unanimous expectations of a rate hike pause continuing next month.
November BTC price gains near 10%
For Bitcoin market participants, however, the monthly close was of more interest.
BTC/USD was up nearly 10% in November at the time of writing, making it the first “green” 11th month of the year since 2020. Above $37,660, the close would become its highest since May 2022.
In November 2021 and 2022, Bitcoin fell 7.1% and 16.2%, respectively, per data from statistics resource CoinGlass.
Analyzing the current chart setup, popular trader Jelle saw reasons to be bullish in Bitcoin’s relative strength index (RSI) readings.
“After spending the past month building up a giant hidden bullish divergence, Bitcoin has breached its RSI downtrend!” he told X subscribers earlier on the day.
An accompanying chart showed the required area for bulls to secure.
“If price can hold the grey box, I think this starts moving higher soon. All eyes on the monthly close,” Jelle added.
BTC/USD chart with RSI. Source: Jelle/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
from Cointelegraph.com News https://ift.tt/QoB6u02
Web3 is confusing because it’s still in its formative stages. Nobody quite knows which inventions will shape it next.
When big innovations change the world, people tend to argue about them. Will Web3 finally democratize the internet? Is decentralization real? I’m a data guy. I don’t consider myself in a position to answer questions about Web3’s cultural impact. I can, however, point out that griping is nothing new. It predictably happens just when the biggest changes are coming. Consider this excerpt of an article written by automobile pioneer Alexander Winton, who sold his first car in 1897:
“…the great obstacle to the development of the automobile was the lack of public interest. To advocate replacing the horse, which had served man through centuries, marked one as an imbecile … in the ’90s, even though I had a successful bicycle business, and was building my first car in the privacy of the cellar in my home, I began to be pointed out as ‘the fool who is fiddling with a buggy that will run without being hitched to a horse.’”
In data architecture, we talk about layers. Web3, just like the cars of yore, is being built beneath a layer of scrutiny. Regardless of what we say about it, the machine-readable internet — Tim Berners-Lee original definition of Web 3.0 — is happening. From DAOs to Amazon’s Astro housekeeping robot, the use cases for machine intelligence are growing.
Until recently, there was no way to package that data in a common language for people and machines. A wallflower of a protocol called JSON-LD is changing all that. It’s worth exploring this otherwise unsexy protocol, because it plays a formative role in Web3’s ever-growing architecture. Just as, say, the break lines in a car lay beneath notice, but really make a difference to your driving experience, JSON-LD is the connective tissue that is propelling Web3 closer to becoming the internet as we know it.
The internet of data
What does it take to read, interpret and process data all over the internet with minimal human intervention? In Web 2.0 terms, it takes a whole bunch of API integrations with a whole bunch of databases. Data is poured into a data lake and then loaded into a data warehouse for interpretation.
This cumbersome process is a primary motivator for the new architecture of Web3. Databases are handy for digitizing things formerly done by hand, like organizing one’s business contacts. They’re not good for feeding data to machines to come up with new lines of business and transform society. Only when data is trustworthy, secure and interoperable will it be able to live safely outside of databases and be accessible by machines.
Many of the pieces already exist. Blockchain ensures trust and immutability. Microledgers safeguard security and privacy. Semantic standards — called W3C RDF standards — make all data machine-readable so that machines can link and leverage data from anywhere. Another word for this is interoperability, and until now, it has been one of Web3’s biggest challenges.
Why JSON-LD is important
As you’ll recall from earlier in the article, Web3, otherwise known as the Internet of Data, requires that data lives anywhere, contains cryptographic proof of its own trustworthiness and describes itself in a common language that any human or machine can understand. It wasn’t clear how that common language would happen. Turns out that one of the internet’s most common — and easily ignored — protocols is changing all that.
JSON is a protocol that transmits data to display it on a webpage. A dropdown list of options after you enter a search query is an example of how JSON works behind the scenes. A machine reads your entry and pulls suggestions from a database. A couple of years ago, a much more powerful version of JSON came out: JSON-LD (linked data). Used in the same way as its predecessor, JSON-LD wraps data in RDF, a universal format that enables data to be interpreted and used outside of the database.
By encoding meaning within a JSON document through the semantic standard — shared vocabulary — of RDF, JSON-LD lets data be organized, contextualized and connected anywhere. Machines can read and analyze data wherever it lives without human intervention. It becomes possible to re-use data regardless of application, freeing you from entering the same data multiple times into multiple databases. Tasks such as sharing, compliance reporting and re-operationalizing data into new applications becomes much easier.
A few real-life examples might help clarify the value. You’ll be able to securely and selectively share your patient data between hospitals or transcripts between schools. Pathogen-borne illnesses and counterfeits in supply chains become easy to track. Meeting compliance requirements for data regulations like GDPR happens in a matter of hours instead of weeks. Manipulations like deep fakes become visible for what they are. The panorama of possibilities only grows when you put autonomous vehicles, robots and other smart machines into the mix.
JSON-LD could also help evolve Web3 out of its current confusion of disconnected blockchains. Let’s say someone wants to create a marketplace for NFTs and list every single NFT in existence. If every NFT developer creates their own data silo to store the data, then the anonymity of Web3 becomes a crutch. The marketplace operator would have to go to every single developer and decode the shared value of the NFT by asking: “What does this mean? What does that mean?” Interoperability provides the common vocabulary to solve that problem and allow data to link to other data, while retaining the best features of blockchains, namely privacy, trust and security.
The driverless internet
Times have changed, and they are changing again. Web3 is confusing because it’s still in its formative stages. Nobody quite knows which inventions will shape it next. Every once in a while, though, you see things that could be able to endure the motors and wheels of Web3. JSON-LD configurations could be one of those important tools to consider to help ease Web3’s growing pains.
Brian Platz is the co-founder and CEO of Fluree — a Web3 database platform that enables trusted and interoperable data management.
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.
from Cointelegraph.com News https://ift.tt/5l3XC6B
The protocol reached a total value locked of $3.8 billion at its peak.
Cross-chain protocol Wormhole has secured a $225-million investment at a valuation of $2.5 billion.
According to the Nov. 29 announcement, the investment round was led by Brevan Howard, Coinbase Ventures, Multicoin Capital, Jump Trading, ParaFi, Dialectic, Borderless Capital and Arrington Capital.
The Wormhole Foundation also announced the launch of Wormhole Labs, which the company said “is an independent technology company that specializes in building products, tools, and reference implementations that help grow cross-chain activity and development.” Currently, its blockchain-to-blockchain communications technology is used to bridge assets, power oracle data feeds, and transfer nonfungible tokens.
Wormhole was launched in 2021 and has since facilitated over $35 billion in transactions. Developers claim that the protocol processes over 2 million cross-chain messages across more than 30 chains every day.
In May, investors of the former Terra ecosystem filed a lawsuit against Jump Trading, the high-frequency trading firm that owns Jump Crypto, alleging the firm and its CEO, Kanav Kariya, manipulated the price of TerraUSD to gain roughly $1.3 billion in profits. The allegations have not yet been proven in court.
On Nov. 28, DOGE's price dropped over 3.5% to $0.076, underperforming the crypto market, which fell by around 1.25% in the same period. The memecoin's price decline is part of a broader correction that has witnessed nearly a 12.5% retreat in over a week.
XRP/USD daily price chart. Source: TradingView
Let's take a closer look at the most likely reasons behind Dogecoin's latest pullback.
Bearish divergence
Dogecoin's drop today precedes a period of growing bearish divergence between its price and a key momentum indicator.
Notably, between Oct. 6 and Nov. 17, DOGE's price rallied, forming higher highs. But, in the same period, its daily relative strength index (RSI) dropped, forming lower highs.
DOGE/USD daily price chart. Source: TradingView
As a rule of technical analysis, a divergence between rising prices and falling RSI indicates weakness in the prevailing uptrend, prompting traders to secure profits at local price highs.
Rising Bitcoin dominance
Dogecoin's price drop today is part of the decline in the broader altcoin market weight versus Bitcoin (BTC).
Notably, the Bitcoin Dominance Index, which measures the top cryptocurrency's market share versus the combined weight of all altcoins, has risen 0.83% in the past 24 hours. In simple words, traders have rotated their capital from altcoins to Bitcoin.
In contrast, Dogecoin's market dominance versus the rest of the crypto market declined by over 1% on Nov. 28.
Psychological resistance
Dogecoin's price decline today appears to be a result of a bearish rejection by one of its strongest distribution areas.
Notably, DOGE's price reversed after retesting its 0.236 Fib line near $0.081 as resistance. Since May 2023, its attempt to close above this price level has failed, as illustrated below.
DOGE/USD daily price chart. Source: TradingView
As a result, DOGE's likelihood of continuing its pullback move is high in December 2023, with its 50-day exponential moving average (50-day EMA; the red wave) near $0.072 acting as the primary downside target.
DOGE whales sell
Dogecoin's price decline coincides with a reduction in the DOGE supply held by its richest investors.
Notably, the supply controlled by Dogecoin addresses with a balance between 100 million and 1 billion DOGE tokens (the green wave) has dropped nearly 1% in the past two weeks. Interestingly, the supply held by the next cohort — those holding over 1 billion DOGE (the black wave) — has jumped 0.5% in the same period.
DOGE supply holdings among addresses with 100 million-infinity token balance. Source: Santiment
The 1 billion-plus DOGE balance cohort may include addresses associated with crypto exchanges and over-the-counter trading desks, indicating whales have transferred their Dogecoin to such platforms for the purpose of selling.
Is Dogecoin bull market over?
From a technical perspective, DOGE needs to break above the upper trendline of its prevailing descending triangle setup. If this bullish scenario plays out, the price may reach $0.10, its September 2022 resistance, by the end of 2023.
DOGE/USD weekly price chart. Source: TradingView
The bears, however, will try to pull down DOGE/USD by 25% to $0.056 by the year's end, and perhaps even by 70% to $0.023 in Q1, 2024 if the price breaks below the triangle's lower trendline.
A descending triangle forming in a downtrend is considered a bearish continuation setup. The pattern resolves when the price breaks below its lower trendline and falls by as much as the maximum distance between its upper and lower trendline.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
from Cointelegraph.com News https://ift.tt/WrcjxDf
A total of four foreign banks have integrated China’s e-CNY CBDC thus far.
More foreign banks have joined China’s digital yuan central bank digital currency (CBDC), the e-CNY, following British bank Standard Chartered’s entry on Nov. 27, bringing its total to four.
According to local news reports, Hong Kong-based HSBC, Hang Seng Bank and Taiwanese bank Fubon Bank have also added e-CNY integrations to their platforms. All four foreign banks will allow their clients to transfer and withdraw e-CNY. Moreover, Hang Seng Bank has allowed personal banking customers to bind debit cards within the official e-CNY app and redeem digital renminbi. They can also top up the digital renminbi wallet through the Hang Seng China Mobile Banking App. HSBC has also added similar features for retail e-CNY use for its clients.
As for Fubon Bank, it has allowed users to recharge e-CNY via mobile banking and spend the CBDC using its bank card. The firm said it would continue to explore e-CNY CBDC applications in cross-border trade, smart contracts, cross-border payments and supply chain finance.
Song Yuesheng, vice chairman and president of Hang Seng China, said that the bank plans to use the ongoing e-CNY CBDC pilot to “create new consumption scenarios, enrich service systems, stimulate new consumption vitality, and provide business opportunities.” The day before, Standard Chartered stated that it is currently experimenting with the e-CNY CBDC in fields such as “cross-border merchant payments, trade financing, and supply chain financing.”
Last month, Cointelegraph reported that the Chinese digital yuan CBDC was used for the first time to settle a cross-border oil deal where PetroChina International purchased 1 million barrels of oil using the CBDC. In the first three quarters of 2023, the use of the yuan in cross-border settlements was up 35% year-on-year, reaching $1.39 trillion, China Daily reported.
Bitcoin retail investors may end up with a hot potato if the spot ETF go-ahead plays out like gold 20 years ago, analysis considers.
Bitcoin (BTC) may suffer when the first spot exchange-traded fund (ETF) is approved by the United States, a new warning says.
In a thread on X (formerly Twitter) on Nov. 28, Joshua Lim, head of derivatives at capital market firm Genesis Trading, predicted a volatile start to 2024 for BTC price action.
Bitcoin ETF approval: Retail may be left holding the buck
Bitcoin is already a target for traditional finance, or “TradFi,” which is betting on winning big out of the spot ETF approval, Lim said.
“We know tradfi guys / macro tourists are already long crypto ahead of ETF news, they’ve built the position over the last few months and are now paying handsomely to roll it,” the thread explained alongside data covering open interest on CME Group’s Bitcoin futures.
“Commitment of traders data showing asset managers increased length by about $1bn since end of Sep.”
CME Group Bitcoin futures open interest. Source: Joshua Lim/X
The signs are there in the performance of the first Bitcoin futures ETF (BITO), as well as stocks of crypto firms such as U.S. exchange Coinbase (COIN), the latter up 250% year-to-date.
While generating buzz and emboldening the institutional adoption narrative behind Bitcoin, the party could nonetheless quickly fizzle once the spot ETF is actually given the green light. This, Lim and others suggest, would be a classic “buy the rumor, sell the news” event.
“What does it all mean?” he queried.
“Tradfi is already long and probably thinking about when to exit this trade around etf announcement expect retail to pile in.. and expect tradfi guys to exit (2021 tops in basis were prior to COIN and BITO listings).”
Responding, James Straten, research and data analyst at crypto insights firm CryptoSlate, channeled history to support the concerns.
“When the Gold ETF (GLD) was introduced in November 2004, it opened around $45 and dropped to approximately $41 by May 2005. However, it saw an impressive 268% increase over the subsequent seven years,” he added in a CryptoSlate analysis on Nov. 28.
On a more optimistic interim note, popular trader Jelle remarked that institutional interest had not been dented by the week’s news stories, including the $4.3-billion settlement between the U.S. government and the largest global crypto exchange, Binance.
CME futures, he stressed, continue to trade at a premium over the Bitcoin spot price.
Interesting to note that throughout all of the courtroom drama, institutions are accumulating #Bitcoin.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
from Cointelegraph.com News https://ift.tt/AK23yYj
Bitcoin is witnessing profit-booking near $38,000, but the correction is likely to be shallow as lower levels are likely to attract buyers.
Bitcoin (BTC) has started the week on a negative note. The failure of the bulls to pierce and sustain above the $38,000 resistance has given a small window of opportunity for the bears to try and make a comeback. Strong selling has pulled the price below $37,000 on Nov. 27.
However, lower levels are likely to attract buyers as the bulls will want to maintain the momentum going into the final month of the year. The bears are likely to have other plans as they will attempt to deepen the correction. That could boost volatility in the last few days of November as both the bulls and the bears try for a monthly closing in their favor.
While near-term uncertainty remains, Rich Dad Poor Dad author Robert Kiyosaki reiterated his long-term bullish view on Bitcoin, gold and silver in a X (formerly Twitter) post on Nov. 26. He cautioned investors to get out of fiat money, calling it a “FAKE money system.”
Will Bitcoin and altcoins bounce off their respective strong support levels, or will the bears prevail? Let’s analyze the charts to find out.
S&P 500 Index price analysis
The S&P 500 Index (SPX) continued its northward march higher after skyrocketing above the downtrend line. This indicates strong demand at higher levels.
The rally of the past few days has pushed the relative strength index (RSI) into the overbought zone, indicating that a minor correction or consolidation is possible in the near term. The 20-day exponential moving average (4,448) is the crucial level to watch out for on the downside.
If the price turns up from this level, it will suggest that the sentiment remains bullish and traders view dips as a buying opportunity. That enhances the prospects of a break above 4,650.
Conversely, a fall below the 20-day EMA will indicate that the bulls are losing their grip. The index may then slump to the 50-day simple moving average (4,346).
U.S. Dollar Index price analysis
The U.S. Dollar Index (DXY) attempted a recovery from the 50% Fibonacci retracement level of 103.46 on Nov. 21, but the bears were in no mood to relent.
Sellers stalled the relief rally at 104.21 on Nov. 22 and are trying to sink the price toward the 61.8% Fibonacci retracement level of 102.55. The downsloping 20-day EMA (104.54) and the RSI near the oversold zone indicate that bears are in command.
The first sign of strength will be a break and close above the 20-day EMA. Such a move will suggest that the correction may be over. The index may then attempt a rally toward the stiff resistance at 106.
Bitcoin price analysis
Bitcoin’s price action of the past few days is forming an ascending triangle pattern, which will complete on a break and close above $38,000.
The upsloping moving averages and the RSI in the positive territory indicate that the path of least resistance is to the upside. If the $38,000 resistance is scaled, the BTC/USDT pair may climb to $40,000. This level may again act as a roadblock, but if cleared, the pair may rise to the pattern target of $41,160.
The bears will have to pull the price below the uptrend line to invalidate the bullish setup. That may open the doors for a fall to $34,800. If the price rebounds off this level, it will suggest a range-bound action between $34,800 and $38,000. The bears will gain the upper hand on a break and close below $34,800.
Ether price analysis
Ether (ETH) surged close to the overhead resistance of $2,137 on Nov. 24, but the bulls could not overcome this barrier. That may have led to profit-booking, as seen from the long wick on the day’s candlestick.
The bears are trying to tug the price below the 20-day EMA ($1,998). If they can pull it off, the ETH/USDT pair may fall to $1,904. A break below this support will complete a double-top pattern. This reversal setup could start a deeper correction to the 50-day SMA ($1,834).
Instead, if the price snaps back from the 20-day EMA, it will suggest that lower levels continue to attract buyers. The pair may then climb to the overhead resistance zone between $2,137 and $2,200. Buyers will have to ascend this zone to complete a large ascending triangle pattern.
BNB price analysis
BNB’s (BNB) rejection at the 20-day EMA ($237) on Nov. 23 indicates that the bears are trying to flip the level into resistance.
The bears maintained their selling pressure and have pulled the price below the 50-day SMA ($229). The BNB/USDT pair could next slide to the solid support at $223 and below it to $219. Buyers are likely to defend this zone with vigor.
On the upside, the bulls will have to push and sustain the price above $240 to suggest that the selling pressure is reducing. That may start a rally to $255 and later to the major resistance at $265.
XRP price analysis
XRP (XRP) bounced off the 50-day SMA ($0.58) on Nov. 22 but hit a wall at the 20-day EMA ($0.61). This suggests that the bears are trying to flip the 20-day EMA into resistance.
Sellers will try to sink the price below the 50-day SMA and challenge the vital support at $0.56. If this level is breached, it will suggest that bears are back in command. The XRP/USDT pair may then gradually collapse to $0.46.
On the contrary, if the price turns up from the current level or $0.56 and rises above the 20-day EMA, it will indicate that the pair may continue to oscillate inside the large range between $0.56 and $0.74.
Solana price analysis
Solana (SOL) turned down from the immediate resistance at $59 on Nov. 26, indicating that the bears are trying to halt the relief rallies at this level.
The bears will try to strengthen their position further by pulling the price below the 20-day EMA ($53). The SOL/USDT pair will complete a head-and-shoulders pattern if it breaks below the neckline at $51. That could start a steep correction to the 50-day SMA ($40) and thereafter to the pattern target of $34.
The bulls are likely to have other plans. They will try to arrest the decline near $51. If the bounce off this level rises above $59, it will indicate that bulls are back in the driver’s seat. The pair may then retest the local high at $68.
The ADA/USDT pair could slide to the 20-day EMA ($0.37), which is likely to attract buyers. If the price bounces off this level with vigor, it will signal that the trend remains positive and traders are buying on dips. The bulls will then make one more attempt to overcome the obstacle at $0.40. If they succeed, the pair may soar to $0.46.
Contrarily, if the 20-day EMA cracks, the pair may slump to $0.34. Buyers are expected to guard this level because if it gives way, the pair may reach the 50-day SMA ($0.32).
Dogecoin price analysis
The bears tried to yank Dogecoin (DOGE) below the 20-day EMA ($0.08) on Nov. 26, but the bulls purchased the dip as seen from the long tail on the candlestick.
The bulls pushed the price above the $0.08 resistance on Nov. 27, but the long wick on the candlestick shows solid selling at higher levels. If the price dips below the 20-day EMA, the DOGE/USDT pair could slump to the 50-day SMA ($0.07).
On the contrary, if the price once again rebounds off the 20-day EMA, it will suggest demand at lower levels. The bulls will then again try to kick and sustain the price above $0.08. If they do that, the pair may pick up momentum and surge toward $0.10.
Chainlink price analysis
Chainlink (LINK) broke above the downtrend line on Nov. 26, but the bulls failed to build upon the momentum. This may have attracted selling, which pulled the price below the downtrend line on Nov. 27.
The 20-day EMA ($14) remains the key support to watch out for in the near term. If the price sinks and sustains below the 20-day EMA, it will suggest that the bears are attempting a comeback. The LINK/USDT pair could then decline to the 61.8% Fibonacci retracement level of $12.83.
On the other hand, if the price rebounds off the 20-day EMA, it will suggest that the sentiment remains positive and traders are buying on dips. That will enhance the prospects of a rally to the overhead resistance of $16.60.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
from Cointelegraph.com News https://ift.tt/sV5FwQq
Richard Teng became CEO of crypto exchange Binance after Changpeng Zhao agreed to step down as part of a settlement with the U.S. Department of Justice announced on Nov. 21.
Richard Teng, Binance’s former global head of regional markets and now CEO, announced his intention to drive growth at the crypto exchange following Changpeng “CZ” Zhao stepping down.
In a Nov. 27 blog post, Teng said he had the support of CZ and Binance’s leadership following the former CEO’s departure as part of an agreement with United States officials. According to Teng, Binance plans to continue a user-focused approach to its business and “drive growth and the adoption of Web3,” assuring customers they will hear more from him soon.
“I am eager to jump headfirst into my new role and know there will be many more opportunities for me to share my thoughts with the community through blogs like this one, through my social media accounts — Twitter, LinkedIn — and through the many industry conferences and events around the world,” said Teng.
I want to take this opportunity to share immediate focus areas, discuss our responsibility to users and my view on the future of our industry.https://t.co/c6QMS6Ulmm
It’s unclear how Teng will manage Binance’s business as it balances U.S. oversight with a well-known figure like CZ moving out of its leadership. On Nov. 22, blockchain analytics firm Nansen reported that there didn’t appear to be a “mass exodus of funds” 24 hours after the U.S. settlement with Binance, with the exchange’s total holdings increasing to more than $65 billion.
Teng became CEO of the major crypto exchange after Zhao agreed to step down as part of a settlement with the U.S. Department of Justice announced on Nov. 21. CZ pleaded guilty to one felony charge and will pay $150 million to regulators, while the crypto exchange agreed to roughly $4.3 billion in penalties.
Authorities are attempting to restrict travel for Zhao, who is usually based in the United Arab Emirates and has family in Dubai. The former Binance CEO could face up to 18 months in prison following his sentencing in February 2024.
The recent JPEX and Hounax exchange scandals have resulted in losses exceeding $100 million.
A one-year grace period for cryptocurrency exchanges operating in Hong Kong will remain in place despite recent scandals.
According to local news reports on Nov. 27, Julia Leung, CEO of Hong Kong’s Securities and Futures Commission, stated, “Even if the grace period ends tomorrow, fraud will still occur, so there is no intention to modify the grace period and other measures for the time being.”
According to new regulations introduced in June, crypto exchanges operating in Hong Kong must apply for a virtual asset service provider (VASP) license with the city’s Securities and Futures Commission by June 2024 or face deregistration. However, unregistered exchanges can operate in the city during the interim transition period.
Several crypto scandals have rocked the special administrative region recently. In September, Hong Kong crypto exchange JPEX, which was unlicensed at the time, collapsed after allegations of a Ponzi scheme led to 66 arrests and an estimated 1.6 billion Hong Kong dollars ($205 million) in losses.
On Nov. 25, Hounax, another unlicensed crypto exchange, reportedly scammed 131 residents out of 120 million HKD ($15.4 million) through yet another alleged Ponzi scheme. Chan Waikei, superintendent of the Hong Kong Police’s Commercial Crime Bureau, explained that scammers impersonated investment experts and solicited users with the promise of high returns. When users later tried to withdraw the funds, they could not do so.
On Nov. 27, Cointelegraph reported that the Binance-linked HKVAEX exchange is still trying to apply for a license in Hong Kong. Earlier this month, BC Technology Group, owner of Hong Kong crypto exchange OSL, secured a $90 million investment from blockchain firm BGX.
The British bank will provide e-CNY CBDC services to clients and explore its future use in China's financial system.
British multinational bank Standard Chartered will partake in trials of China's digital yuan central bank digital currency (e-CNY CBDC), one of the first foreign banks to do so in the country.
According to the Nov. 27 announcement, Standard Chartered, through its partner City Bank Clearing Services Co., will allow its clients to purchase, exchange, and redeem e-CNY within its bank accounts. "As an international bank rooted in the Chinese market for 165 years, Standard Chartered is optimistic about the development prospects of digital Renminbi," said Xiaolei Zhang, president of Standard Chartered China.
The bank will also join China's e-CNY CBDC pilot testing program, which is currently ongoing within 26 cities and provinces. Standard Chartered stated that its areas of exploration include cross-border merchant payments, trade financing and supply chain financing.
Last year, Standard Chartered participated in the "Multilateral Central Bank Digital Currency Bridge" proof-of-concept test project in Hong Kong for providing cross-border payment settlement services for retail and enterprise clients. In May 2023, Standard Chartered and PricewaterhouseCoopers China jointly released the report "Central Bank Digital Currency to Create a Future Banking Ecosystem," discussing the application prospects of CBDCs in the fields of retail, trade and supply chain finance.
On Nov. 25, China's central bank published a white paper titled "A cross-border e-commerce business-to-business digital renminbi application solution." The document called for commercial payment processors to integrate the e-CNY CBDC for consumer transactions. Since its inception in 2020, e-CNY transactions have surpassed 1.8 trillion Yuan ($253.6 billion), while the number of wallets has surged to 120 million.
Paradigm, one of Blast’s seed investors, criticized the protocol’s decision to launch a bridge before its L-2 and withdraw capability.
Crypto venture capital firm Paradigm criticized Blast’s protocol marketing strategy, claiming the startup “crossed lines in both messaging and execution." The VC firm is a seed investor in Blast.
The head of research at Paradigm, Dan Robinson, shared a statement on X (formerly Twitter) expressing disagreement about Blast’s decision to launch a bridge before its layer-2 network and to not allow withdrawals for three months. “We think it sets a bad precedent for other projects,” Robinson wrote, adding that “much of the marketing cheapens the work of a serious team.”
There are a lot of components of Blast that I’m excited about and would be interested in engaging with people on. That said, we at Paradigm think the announcement this week crossed lines in both messaging and execution. For example, we don’t agree with the decision to launch the…
Paradigm has been in touch with Blast about its concerns, Robinson noted, emphasizing that “there are still many points of disagreement” between the companies.
Despite the criticism, the head of research also acknowledged that Blast’s team is formed by “world-class builders,” with demonstrated “ability to build great products.” Blast's governance structure is unclear, as is Paradigm's role in the startup's decision-making process. According to Robinson:
"We invest in strong, independent founders who we don’t always agree with. But we understand that people may look to us to set an example on best practices in crypto. We don’t endorse these kinds of tactics and take our responsibility in the ecosystem seriously."
In addition, Watts noted that Blast "is just a 3/5 multisig”, meaning that if an attacker gains access to three out of five team members' keys, they can steal all cryptocurrency deposited into Blast's contracts.
Watts also claimed that Blast “is not a layer 2,” but simply “accepts funds from users” and “stakes users’ funds into protocols like LIDO” without using any bridges or testnet. Additionally, he criticized the lack of withdrawal functionality. To withdraw in the future, users must trust that developers will add withdrawal functionality in the future.
In spite of the controversy surrounding its launch, Blast has amassed over $555 million in total value locked (TVL) since its launch a few days ago. The protocol claims to be “the only Ethereum L2 with native yield for ETH and stablecoins.” An airdrop is scheduled for January.
Bitcoin is facing resistance at $38,000, but UNI, IMX, VET and ALGO may extend their up-move in the short term.
Bitcoin (BTC) rose above $38,000 on Nov. 24, but the bulls could not build upon this strength. This suggests hesitation to buy at higher levels. Bitcoin is on track to form a Doji candlestick pattern on the weekly chart for the second consecutive week. This signals indecision among the bulls and the bears about the next directional move.
With Bitcoin maintaining near its 18-month high, BitMEX co-founder Arthur Hayes retained his bullish stance. In a X (formerly Twitter) post, Hayes said that the United States dollar liquidity was increasing, which is likely to push Bitcoin higher.
Another bullish projection came from PlanB, creator of the stock-to-flow family of BTC price models, who said in a post on X that Bitcoin may not stay at the current levels for long. PlanB expects Bitcoin to maintain an average price of at least $100,000 between 2024 and 2028.
Analysts have turned increasingly bullish in the past few days, but traders should exercise caution because every uptrend is bound to have corrections.
Could Bitcoin soar above $38,000 or start a corrective phase? Let’s look at the charts of the top 5 cryptocurrencies that may outperform in the near term.
Bitcoin price analysis
Bitcoin’s march higher has hit a wall near $37,980 but the bulls are not hurrying to close their positions. This shows that traders expect the uptrend to progress further.
The immediate support on the downside is the 20-day exponential moving average ($36,546). If the price snaps back from this support, it will signal that every minor dip is being purchased. That will increase the possibility of a break above $37,980.
If that happens, the BTC/USDT pair could rally to $40,000. This level may pose a strong hurdle to the bulls, but if buyers flip the $38,000 level into support on the downside, the rally could stretch to $48,000.
Conversely, if the price plummets below the 20-day EMA, it will indicate that traders are booking profits. The pair may then dump to $34,800.
BTC/USDT 4-hour chart. Source: TradingView
The bulls are trying to maintain the price above the moving averages but are finding it difficult to overcome the obstacle at $37,980. The relative strength index (RSI) is just above the midpoint, indicating that the bullish momentum is weakening.
If the price slips below the 50-simple moving average, the pair may plunge to the uptrend line. The bulls are expected to defend this level with vigor. On the upside, a break and close above $38,500 will indicate that bulls are in the driver’s seat.
Uniswap price analysis
Uniswap (UNI) fell below the 20-day EMA ($5.44) on Nov. 21, but the lower levels attracted aggressive buying by the bulls. That started a sharp rally on Nov. 22, which pushed the price to $6.60 on Nov. 24.
UNI/USDT daily chart. Source: TradingView
The up-move is facing selling near the overhead resistance of $6.70. The UNI/USDT pair has pulled back to the 38.2% Fibonacci retracement level of $5.92, and the next stop could be the 50% retracement level of $5.71.
A strong bounce off this zone will suggest that traders view the dips as a buying opportunity. That may enhance the prospects of a breakout above $6.70. Such a move will complete a double bottom pattern, which has a target objective of $9.60. The bullish momentum is likely to weaken below the 61.8% Fibonacci retracement level of $5.50.
The bulls tried to protect the 20-EMA, but the bears had other plans. They pulled the price below the 20-EMA, starting a deeper correction. If the price sustains below the 20-EMA, the pair may tumble to the 50-SMA.
If the price turns up from the current level or bounces off the 50-SMA, it will suggest that lower levels are being bought. The bulls will then again try to propel the price to the overhead resistance of $6.70. If this resistance is surmounted, the pair may skyrocket to $7.80.
Immutable price analysis
Immutable (IMX) has been sustaining above the breakout level of $1.30 for the past several days, suggesting that bulls have the edge.
IMX/USDT daily chart. Source: TradingView
The price may pull back to the zone between $1.30 and the 20-day EMA ($1.20). This zone is likely to witness a tough battle between the bulls and the bears, but If the buyers prevail, the IMX/USDT pair could climb to $1.86.
Instead, if sellers tug the price below the support zone, it may trigger stops of short-term traders. That could accelerate selling and result in a sharper correction to the psychological level of $1.
The 20-EMA on the 4-hour chart has flattened out, and the RSI is just below the midpoint, indicating a possible consolidation in the near term. The first support on the downside is $1.30. If buyers maintain the price above this level, it will suggest that the $1.30 is acting as a new floor.
On the upside, a break above $1.50 will signal the resumption of the up-move. The pair may travel to $1.59 and then to $1.63. Contrary to this assumption, a fall below $1.20 could tilt the short-term advantage in favor of the bears.
Buyers propelled VeChain (VET) above the overhead resistance of $0.023 on Nov. 26 but are struggling to sustain the higher levels as seen from the long wick on the candlestick.
VET/USDT daily chart. Source: TradingView
Sellers will try to trap the aggressive bulls and pull the price to the 20-day EMA ($0.021). If the price rebounds off this level, it will suggest a positive sentiment. The bulls will then again attempt to overcome the obstacle at $0.023. If they can pull it off, the VET/USDT pair could rise to $0.027 and thereafter try to reach the pattern target of $0.031.
On the contrary, if bears sink the price below the 20-day EMA, it will indicate that the pair may remain stuck inside a large range between $0.014 and $0.023 for a while longer.
The pair has slipped back below the breakout level of $0.023, indicating that the bears have not given up and are selling at higher levels. The pair could next reach the 20-EMA, which is an important level to watch out for.
If the price rebounds off the 20-EMA, the bulls will make another attempt to drive the price above $0.023 and start the next leg of the rally to $0.027. On the other hand, a break below the 20-EMA may start a deeper correction to $0.020.
Algorand price analysis
Algorand (ALGO) reached the overhead resistance of $0.14 on Nov. 25, where the bears are expected to mount a strong defense.
ALGO/USDT daily chart. Source: TradingView
If the bulls do not give up much ground from the current level, it will suggest that traders are holding on to their positions, expecting a move higher. That increases the likelihood of a rally above the $0.14-$0.15 resistance zone. If that happens, the ALGO/USDT pair will complete a cup-and-handle pattern. This reversal setup has a pattern target of $0.20.
If bears want to prevent the up-move, they will have to drag the price below the critical support at $0.12. If this level gives way, the pair may tumble to $0.11 and then to $0.09.
The 4-hour chart shows that the pair is oscillating inside the $0.12 to $0.15 range for some time. In a range, traders usually buy near the support and sell close to the resistance. It is difficult to predict the direction of the breakout with certainty; hence, traders may consider waiting for the breakout before taking large bets.
If the price breaks above $0.15, the pair is likely to start the next leg of the up-move. The pair may first rise to $0.18 and then to $0.20. This positive view will be invalidated if the price turns down and falls below $0.12.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
from Cointelegraph.com News https://ift.tt/KYajWv3
According to the U.S. Sentencing Guidelines, CZ could receive a 12-18 month sentence, but the Department of Justice is willing to fight for a longer term.
A recent court filing suggests that Changpeng "CZ" Zhao's legal challenges are just beginning, despite pleading guilty to violating the United States Anti-Money Laundering requirements in a settlement with the Department of Justice.
Zhao is expected to be sentenced in February 2024. He is currently challenging the government's efforts to prevent his return to the United Arab Emirates (UAE) while awaiting sentencing with his family. In a filing from Nov. 24, however, authorities indicated that he may face a harsher punishment than initially anticipated:
"The defense claims that Mr. Zhao faces merely a “brief” sentence and has no incentive to flee. The reality is that the top-end of the Guidelines range may be as high as 18 months, and the United States is free to argue for any sentence up to the statutory maximum of ten years."
A potential lengthier sentence opposes legal experts' consensus. According to an analysis from former Securities and Exchange Commission official John Reed Stark, Zhao would possibly receive a 12–18-month sentence at a minimum-security prison under the U.S. Sentencing Guidelines. Although his legal team is likely to ask for no jail time or an alternative sentence, combining prison time with home detention and probation.
Zhao's relevance to the crypto industry may also influence his fate. Stark believes that if the "DOJ does not secure a sentence for CZ that deters future money laundering conduct in the cryptoverse (and elsewhere), then this "plea deal" could end up backfiring on DOJ."
Screenshot: Government's reply to motion for review Zhao's travel restrictions. Source: Reuters.
For the DOJ, seeking longer jail time for Zhao may not be as easy as it seems. According to Stark's analysis, the government officials would have to produce more substantial evidence implicating him in criminal activity. "Hopefully, DOJ has got something up their sleeve, or perhaps the Binance monitoring and other remedial requirements will reveal more egregious and chargeable crimes," he wrote on X (formerly Twitter).
Zhao was released under a $175 million bond that requires him to return to the U.S. 14 days before his sentencing date scheduled for Feb. 24, 2024. In his comments, Stark noted that Judge Richard A. Jones is expected to consider the government’s motion on Nov. 27, with the possibility of strengthening the bail requirements through additional bond conditions or delaying a decision.
Binance-CZ's case is stirring controversy among legal and business experts. According to Omid Malekan, author and adjunct professor at Columbia Business School, the DOJ's approach to the exchange differs significantly from what is seen in traditional finance.
“If [banks] they’d been held to the Binance Standard there’d be hundreds of managing directors in jail and less money for shareholder buybacks (or lobbying). But the bankers were smart enough to never question the game.”
On Nov. 21, Zhao reached a $4.3 billion settlement with the U.S. government for allegedly allowing individuals engaged in illicit activities to transfer funds through the exchange. He stepped down as CEO as part of the settlement.
In a recent report, California Governor Gavin Newsom emphasized the significance of preparing for the next generation of skills essential to thrive in the GenAI economy.
California Governor Gavin Newsom has stressed the importance of people staying ahead of the curve in generative artificial intelligence (GenAI) by acquiring new skills and becoming acquainted with the emerging technology.
As outlined in the report, there is a suggestion that residents of California should have access to educational and training opportunities in GenAI, noting:
"To support California’s state government workforce and prepare for the next generation of skills needed to thrive in the GenAI economy, agencies will provide trainings for state government workers to use state-approved GenAI to achieve equitable outcomes.”
It stated that this is considered essential in response to the notable employment impact indicated by recent reports on GenAI.
The report cited Goldman Sachs' forecast, indicating that GenAI is expected to affect 300 million jobs worldwide, despite the potential productivity gains expected to be achieved.
“As such, the State must lead in training and supporting workers, allowing them to participate in the AI economy and creating the demand for businesses to locate and hire here in California,” it noted.
It further stated that GenAI education initiatives should commence at higher education institutions and vocational schools.
— OECD ➡️ Better Policies for Better Lives (@OECD) July 11, 2023
The research goes on to label “high-skill, white collar jobs” as the most exposed to AI.
Furthermore, the areas showing the most progress are those areas requiring “non-routine, cognitive tasks such as information ordering, memorization, and perceptual speed.”
