Coinbase, one of the largest crypto exchanges by trading volume, has launched an international platform following tensions with US SEC. The exchange will roll out Bitcoin and Ethereum perpetual futures trading to commence trading.
Coinbase takes a giant step following unfriendly US regulations
Brian Armstrong, Coinbase CEO, is guiding his company to fight back against US SEC regulations after the authority threatened to take legal action against his company. The SEC issued a wells notice earlier in the year after it charged Kraken for offering crypto staking services in the US without its knowledge.
Armstrong strongly condemned the authority for its method of administration, saying that it sought to charge companies rather than formulate workable regulatory frameworks first. He said the exchange would seek to go offshore as other crypto companies could follow suit.
1/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action.
— Brian Armstrong đĄïž (@brian_armstrong) March 22, 2023
He added that his company was not scared of starting a legal battle with the SEC for what it considered an âunfavourableâ regulation style for their business. On May 2, 2023, the exchange announced the launch of Coinbase International Exchange (CIE), a new institutional platform designed and optimized for crypto derivatives trading.
The exchange will start by listing Bitcoin and Ethereum perpetual futures later in the week. It will operate by settling all trading in Coinbase-backed stablecoin USD Coin, requiring no fiat on-ramps. The exchange has stressed that direct access trading on the new platform will be available to institutional traders via application programming and eligible to non-U.S. jurisdictions. As such, those products wonât be available to retail investors initially.
According to the exchangeâs announcement, the new international platform has been launched with the help of Bermuda regulators. The exchange received a license from the Bermuda regulators in Mid-April. The Class F license issued by the regulators will allow the exchange to operate as a digital asset exchange and a digital asset derivatives exchange provider. It will also grant the platform permission to operate activities like token sales and issuance.
A class action lawsuit has been proposed against Coinbase regarding the violation of customer privacy via biometrics collections. The lawsuit claims that the company went against the privacy laws set in Illinois when it collected and stored its users’ fingerprints and facial scans biometric data.
Illinois resident challenges Coinbaseâs KYC process in court
The lawsuit was filed on May 1 in a California District Court by one of the exchangeâs users claiming that the requirement for a customer to upload pictures of their valid government ID and Self-Potrait for Know Your Customer checks (KYC) may be violating certain provisions of Illinoisâ Biometric Information Privacy Act (BIPA).
The court filing argues that the requirement for users to give Coinbase their biometric data shouldnât be mandatory, according to BIPA. It explains that the company should rather ask for permission from Illinois residents to collect their data and include information on how long it intended to store it, how it would be using it and the steps involved in the permanent destruction of the sensitive data.
âCoinbase had no written policy, made available to the public, establishing a retention schedule and guidelines for permanently destroying biometric information,â the suit argued.
Coinbase lawsuit May 1 2023
The complainant argues that Thousands of Highly detailed geometric maps of the face have been wrongfully taken, processed and stored by the company against the will of Illinois residents. It explains that the actions by Coinbase in the collection, usage and storage of the data pose serious and irreversible privacy risks.
The lawsuit added that in the case of Coinbaseâs database hacking, Illinois residents would have no means of preventing identity theft. It stressed that Coinbase is in the wrong for lacking transparency in destroying the data permanently once a user opts to close their trading accounts.
The lawsuit seeks the payments of damages of $5,000 per intentional BIPA violation or $1,000 per violation if the court finds out that the company did not go against the regulations willingly.
The KYC process used by Coinbase is similar to all other crypto exchanges. As such, the direction of this case rests with the court process. Keep watching Fintech Express for updates on this and other FinTech-related news.
Ethereum is almost completing its process of transitioning to the full Proof of Stake mechanism. Its community chose this validation mechanism over Proof of Work because it is more energy efficient and faster in transaction speeds.
This upgrade will comprise two updates being uploaded and activated concurrently: the Shanghai upgrade and the Capella upgrade. They will go live on April 12, 2023, and allow validators to unstake their ETH tokens (stETH). It will also bring forth several new capabilities like increased transaction speeds, lower transaction fees, and reduced staking risks.
What to expect from the Ethereum network upgrade
Ethereumâs Shapella upgrade is expected to be bearish and bullish at different time frames. It will be bearish in the short term due to the unlocking of staked ETH, which may cause a sizeable selling pressure.
Currently, over 30 million ETH worth $30B has been staked, about 15% of the current circulating supply. Around 3.3M ETh worth over $6.5B will be eligible for unstaking within the first eight weeks of the upgrade going live. As such, some market commentators expect around $2.5B of selling pressure to rock the ETH market.
If the selling pressure goes this high, the value of the ETH token will be negatively impacted on a short-term basis. However, if the networkâs upgrade is successful and brings the intended efficiency, the ETH token may react positively in the mid to long-term timeframe and become bullish.
Although ETH is a major cryptocurrency, it doesn’t necessarily translate that other cryptos will gravitate to its market direction after the upgrade goes live. Keep watching Fintech Express for updates on crypto and other fintech-related news and developments.
This article doesn’t in any way reflect the views of Fintech Express and is not financial advice. We are not liable for any losses caused by any information read from this or any other article that we publish. Do your own research and make decisions based on it. Thanks!
Solve.Care, a well-known Web 3 health services provider, has taken a step forward by introducing a new Layer 2 blockchain (Care.Chain). The organization revealed that the new blockchain would help advance its mission to improve healthcare access, delivery, management, and payment while benefiting consumers and health institutions.
Introducing Care.Chain, a decentralized layer 2 healthcare-oriented blockchain network
Solve.Care has confirmed the launch of Care.Chain, its L2 blockchain optimized to solve specific challenges prevalent in the healthcare industry. Some of the challenges that the network seeks to improve include patient access to health data, the rising cost of running administrative processes, trust and compliance issues, and the provision of proof of competence, such as healthcare licensing and certification.
Care.Chain will also come with new healthcare computing primitives via introducing ZK (Zero Knowledge) verifiable runtime for events. This solution will allow for several other use cases beyond basic distributed ledger technology. It will also provide out-of-the-box support for waller-based apps introducing peer-to-peer communications and processing business deals.
According to the official announcement by Solve.Care, the chain will also combine the power of Ethereum Virtual Machine (EVM) and verified credentials-based event stream processing to build a unique Healthcare Event Virtual Machine. It added that the network would allow for the development of dApps (decentralized applications) like NFTs and Peer to peer communications between healthcare roles.
As such, the network will support direct communications between two key parties without needing a moderator/ third party. That will increase data security as only the involved parties will know about any healthcare event. Additionally, the network will have a native token like most L2 networks. Its token will be called SOLVE. Keep watching FintechExpress for updates on this and other Web 3-related developments.
Binance, the worldâs 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 âWeb 3 outpostâ
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.
#Binance opens a new regional hub in Georgia đŹđȘ
Through this brand-new Web3 outpost, we aim to boost talent acquisition, promote blockchain education, and accelerate crypto adoption in the region.
The exchange explained that it’s already working with public and private sectors to organize education and hackathon events in the country. The exchangeâs presence in the country has been gradual and has gone through several milestones.
Binanceâs 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 âsignificant opportunitiesâ it offers investors.
In his press conference, Zhao revealed fruitful discussions about integrating Web 3 and blockchain systems in the country: âWe 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 heavilyâ.
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.
