Binance, the world’s largest crypto exchange by transaction volume, has announced the launch of a new hub in Georgia. The exchange has said it intends to use the outpost to fuel further adoption of cryptocurrencies and create new jobs for Georgia residents.
Binance announces a new ‘Web 3 outpost’
The crypto exchange has announced that it will open its newest branch in Georgia by the end of 2023 and has already employed 25 people to run it. Via its official blog, the exchange explained that it targets to attract talent in Georgia, promote blockchain industry education and create new employment opportunities there.
The exchange explained that it’s already working with public and private sectors to organize education and hackathon events in the country. The exchange’s presence in the country has been gradual and has gone through several milestones.
Binance’s CEO first visited the country in November 2022 and met with its Prime Minister, Irakli Garibashvili, and crypto stakeholders. During his visit, Chang Peng Zhao said that the country was stable and favorable for businesses and praised its governance for the “significant opportunities” it offers investors.
In his press conference, Zhao revealed fruitful discussions about integrating Web 3 and blockchain systems in the country: “We discussed all kinds of support from recruiting programs to educational efforts and investments. The meeting was very positive. After this meeting, our confidence in Georgia increased significantly, empowering us to invest in the country more heavily”.
Crypto adoption continues in Georgia
Georgia has been on the front line of crypto adoption. The capital city, Tbilisi, brags hosting over 100 Bitcoin ATMs. The country has over 1187 crypto ATMs and tellers, which is notably high.
The country also plans to promote crypto adoption with TBC bank, having signed a memorandum of understanding earlier with Binance. The bank will allow investors to use its financial tools to trade on Binance if KYC and AML procedures are in place.
Keep watching Fintech Express for updates on this and other related stories.
Several Chinese banks are reportedly seeking to offer financial services to crypto firms in Hong Kong despite a crypto blanket ban in mainland China. Hong Kong has been active lately in crypto regulation and plans to have a new licensing regime for crypto exchanges this June.
America out China in?
New information has surfaced via a March 27 report by Bloomberg stating that Chinese banks, including Bank of China LTD, the Bank of Communications Co., and Shanghai Pudong Development Bank, are lining up to support crypto establishments in Hong Kong.
One source stated that a Chinese bank sales representative even visited a main office of a crypto company to pitch banking services despite the current ban. Reports have also been surfacing that China could be on the way to reconsidering the blanket ban on cryptos.
Such developments would be vital, considering that some lawmakers in the US are not so happy with the crypto space. They are using enforcement measures to regulate the space, charging crypto exchanges and platforms heavily for not registering while not offering chances for them to do so. However, the readoption of crypto in China is still unconfirmed and only time will tell how far it will go and the role it might play in revitalizing the crypto space. Keep watching Fintech Express for updates on this and other financial technology-related news.
Bank of England Governor Andrew Bailey has asked businesses to stop hiking commodity prices to calm the country’s economic crisis. He said that further price hikes would risk higher bank rates.
Governor Andrew Bailey talks about England’s inflation crisis
The Bank of England has been hiking its rates due to the high inflation affecting the country’s fiat. Bailey made these comments in his speech when announcing that the bank was raising the rates by 0.25 basis points to 4.25, a 14-year record high.
Bailey explained that the country’s inflation is not in a good place, and the bank may need to do more if the inflation doesn’t start cooling too by this summer. His warning comes when the country’s inflation is shown to have risen to 10.4% in February from 10.1% in January. Additionally, the bank aims to bring it down to only 2%.
In his speech, Bailey said:
“I would say to people who are setting prices: please understand if we get inflation embedded, interest rates will have to go up further.”
He added, “When companies set prices, I understand they must reflect the costs they face. But I would say, please, that when we are setting prices in the economy and people are looking forward, we expect inflation to come down sharply this year, and I would just say, please bear that in mind.”
Financial crisis spreads globally
Elsewhere, most countries are bracing hard against bank collapses and ruthless inflation rates. Countries like Argentina, Turkey, Sudan, Venezuela, and Lebanon have rates over 50%.
Additionally, only Japan has an inflation rate of below 5% among G7 countries, which shows how serious the matter is. As a result, high standards of living and a more nervous stock market are being experienced, with global leaders trying to calm the situation by claiming that the finance system is still intact.
However, this is not a sentiment everyone shares, which is evident with the continuous sell-off seen globally.
Deutsche Bank shares have retreated for a third day, losing over a fifth of their value in a month. The share prices fell by over 9% in early trade markets on March 24, 2023.
Germany’s Deutsche Bank in trouble?-Shares plummets by 9%
Germany’s Deutsche Bank seems to be the latest bank engulfed by the ongoing banking meltdown as its shares are receding heavily. The bank’s shares fell by over 9% on Friday following concerns regarding its stability.
Its shares have fallen consistently over the past three days, shedding over a fifth of their value. The reason behind the investors’ cash out of their shares is the bank’s Credit default swaps (insurance for the company’s bondholders against its default) which leaped to 173 basis points on March 23, 2023 night from 142 basis points noted in the previous day.
Such a big step to the negative side must have spurred the bank’s investors, who are already nervous following the meltdown of major banks like Silvergate, Silicon Valley Bank, and Credit Suisse. As such, investors dumped the bank’s shares and its AT1 bonds.
Banks continue seeing massive stock declines
The current global financial crisis has been aggressively exposing weak links in the sector. It was first noted in the sell-off of unregulated assets like crypto but has shown that it’s even prone in the regulated pillars of the economy, banks.
It started with the collapse of the Silicon Valley Bank in Mid-March 2023. The FDIC took control of the bank and bailed customers out. The fall of this US regional bank shook the crypto and stock markets heavily, causing the de-pegging of Circle’s USDC, which was confirmed to have its reserves in the bank.
As a reflex action, Banks’ investors globally started looking into the management of their investments only to notice that many others were having the same balance sheet issues as SVB. Since then, banks have been seeing massive sell-offs, and there doesn’t seem to be an end. Keep watching Fintech Express for updates on the story.
Do Kwon, Terra Labs co-founder and CEO, has been arrested in Montenegro, according to Interpol and US prosecutors who are now planning extradition and pressing charges.
Another crypto ‘Kingpin’ in the ropes?
A report from the Minister of Interior in Montenegro, Filip Adzic, indicates that the Ex-CEO of the fallen crypto ecosystem, Terra, DO Kwon, has been arrested and detained there.
U PODGORICI UHAPŠEN JEDAN OD NAJTRAŽENIJIH SVJETSKIH BJEGUNACA
Crnogrska policija lišila je slobode lice za koje se sumnja da je jedan od najtraženijih bjegunaca, južnokorejski državljanin Do Kwon, suosnivač i izvršni direktor Terraform Labs sa sjedištem u Singapuru. 1/2
Adzic Tweeted saying that their police have detained a person that is suspected of being one of the most wanted fugitives, Do Kwon. He added that the suspect was detained at the Podgorica airport using falsified documents, but they are still awaiting solid confirmation of his identity.
Interpol confirms Do Kwon’s arrest
Official information has been offered now to back the claims from the unverified Twitter account used by Adzic that Kwon has been arrested, and the US is already pressing charges. A report from CNN today claims that Kwon will be extradited to the US to answer eight charges of wire fraud, securities fraud, commodities fraud, conspiracy, etc.
Interpol has confirmed that the suspect was Kwon via a fingerprint match against the available data in Interopl’s national central bureau in Seoul. He will now be answerable to the collapse of his $40B crypto empire, which saw two major coins, LUNA and UST stablecoin devalue. Do Kwon might also face similar charges to Sam Bankman-Fried, who is being prosecuted in the U.S.
Keep watching Fintech Express for updates on Kwon and Bankman-Fried’s cases and other Fintech-related news.
