Crypto Scoop: Crypto Market Cap Hits $850 Billion As Crypto Adoption Thrives

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While top cryptocurrencies rally to regain losses, several countries pursue crypto initiatives as crypto adoption grows

It’s another exciting month in the crypto space, with countries from across the globe seeking fascinating crypto initiatives. In this edition of the crypto scoop, we review:

  • Price moves of top cryptocurrencies
  • Crypto regulation in South Africa
  • Brazil’s recognition of cryptocurrencies as a payment option
  • Crypto initiatives in Dominica, Ukraine, Russia, El Salvador and more.

Price Moves Of Top Cryptocurrencies

The crypto market is yet to recover from the contagion prompted by the FTX crash. BlockFi, a crypto lending platform affected by the FTX contagion, filed for bankruptcy this week. However, this hasn’t affected the market sentiments. 

This week DOGE’s price surged 19.4% after Elon Musk shared a glimpse into Twitter 2.0 plans. Although DOGE didn’t mention DOGE in the tweets, investors are hopeful DOGE will be involved in some way.

Ethereum (ETH), however, dipped slightly at the start of the week following a whale address moving 73,224 ETH worth $85.7 million to Binance. According to blockchain analysis firm, Lookonchain, investors generally move tokens between wallets when planning a sale. Investors could also move tokens if they intend to use the coin as a margin in derivatives trading. Lookonchain warned the crypto community to “Watch out for the selling pressure of ETH.”

While ETH dipped dangerously close to $1,100 after the news, ETH soon recovered, trading above $1,200, while BTC traded at $17,000. The price gain increased the total crypto market cap as it hovered above $850 Billion.

South Africa Continues With Its Crypto Regulation Initiative

South Africa has moved forward with the regulation of the crypto business. This is part of its initiative to regulate cryptocurrencies after recognising them as assets. By adding a new section to the Financial Intelligence Centre Act (FICA) bill, Finance Minister Enoch Godongwana has classified crypto asset service providers as "accountable institutions."

On December 19, 2022, the amendment will take effect. Service providers will be required "to FICA" customers as accountable institutions. This is what Yellow Card currently does with its KYC requirement for customers. According to the amendment, accountable institutions must gather and verify copies of customer identity documents and proofs of address, such as utility bills, as part of basic FICA / KYC.

Brazil Approves A Legal Framework That Recognises Cryptocurrencies As A Payment Method

Brazil's federal legislative body, the Chamber of Deputies, has approved a legal framework that permits using cryptocurrencies as a form of payment across the nation. While the bill doesn't define BTC as a legal tender, the bill directs that payment methods under the control of the nation's central bank should include digital currencies and mileage programmes. 

Although this is a big step for crypto in Brazil, the law still needs the president of Brazil's signature to become law. However, Roberto Campos Neto has highlighted the framework for the Brazilian central bank digital currency (CBDC). 

Crypto Initiatives in Dominica, Ukraine, Russia, India, and El Salvador

According to Huobi, the Commonwealth of Dominica will support the launch of the Dominica Coin (DMC), the first national token in history. DMC holders will receive Dominica DID status, the chance to get Dominica-issued passports, and Dominica Metaverse privileges. DMC, the first national token in the world, will initially launch on the Tron blockchain (TRC20) and later also on Ethereum (ERC20) and the Binance Smart Chain (BEP20). The DMC token will be released for sale through Huobi Prime. 

The National Bank of Ukraine (NBU) has unveiled a concept for its prospective digital hryvnia (e-hryvnia) central bank digital currency (CBDC). The primary goal of the e-hryvnia is to replace the cash and non-cash forms of the hryvnia while performing all the functions of money. The NBU asserted that it has debated the e-hryvnia concept and is working on the CBDC project with participants in the virtual asset market, payment companies, and government agencies.

Putin, the president of Russia, has called for a blockchain-based global payment system. In light of the sanctions and limitations imposed on his nation, Putin noted the need for a new and independent international dispute resolution system. He suggested that the new system would be free from interference from banks and outside parties. He reaffirmed the need for the system to be based on digital currency and blockchain technology for transparency, decentralisation, and effectiveness.

The State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank will be the first four banks to participate in the Reserve Bank of India (RBI) 's testing of its retail central bank digital currency. According to the RBI, the pilot programme will eventually expand to nine additional cities, and four additional institutions will participate. 

According to a report by Torres Legal, the government of El Salvador has established a National Bitcoin Office in response to Salvadoran president Nayib Bukele's announcement that the nation would purchase one bitcoin each day (ONBTC). The National Bitcoin Office would handle all Bitcoin-related projects.

Telegram CEO Announces Plans To Create Decentralised Exchanges and Non-custodial wallets. 

The CEO and founder of Telegram, Pavel Durov, announced that the company would introduce a number of decentralised cryptocurrency products, including a non-custodial wallet and a decentralised exchange (DEX). Speaking on the FTX crash, Pavel explained, “The blockchain industry was built on the promise of decentralisation but ended up being concentrated in the hands of a few who began to abuse their power.” 

Pavel noted that blockchain-based projects need to return to their roots- decentralisation. He said, “We, developers, should steer the blockchain industry away from centralisation by building fast and easy-to-use decentralised applications for the masses. Such projects are finally feasible today.”