Japanese e-commerce giant Mercari planning bitcoin payments

Binance Weighs Up UAE Expansion Amid Regulatory PressuresGlobal cryptocurrency exchange Binance is contemplating a strategic shift towards the Middle East as it faces regulatory challenges in the United States and Europe.Alex Chehade, the General Manager of Binance Dubai, believes that the United Arab Emirates (UAE) could emerge as a preferred destination for crypto businesses due to favorable and transparent regulations.Photo by Saj Shafique on UnsplashUAE’s regulatory certaintyChehade emphasized the UAE’s ambition to establish itself as a key player in the Web3 industry and diversify away from fossil fuels, with cryptocurrencies playing a significant role in this transition. Speaking to Cointelegraph, the local branch manager of Binance highlighted the certainty and predictability offered by the UAE’s regulatory framework, making it an attractive environment for business development.Binance MENA statistics indicate that the UAE has the highest number of cryptocurrency holders, with approximately 28% of UAE residents owning cryptocurrencies. This data highlights the significant interest and adoption of digital assets in the country.Binance obtained a Virtual Assets Regulatory Authority (VARA) license in Dubai in 2022, making it one of the first exchanges to do so. The license includes a Virtual Asset License obtained in March and a Minimal Viable Product (MVP) license secured in September. The MVP license allows Binance to offer a full range of approved digital assets and related services.Facing difficulties in the US & EuropeThis strategic consideration by Binance comes at a time when the exchange is grappling with legal issues on multiple fronts. Lawsuits filed by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) in the United States have added to the regulatory pressure. In Europe, Binance has faced challenges, including an order from the Belgian FSMA to cease operations immediately, de-registration in the UK, ongoing investigations in France, and withdrawal from the Netherlands and Cyprus.In Europe, Binance recently decided to delist privacy tokens, such as Zcash and Monero, due to changes in local anti-money laundering regulations. However, the exchange later reversed that decision on the basis that the classification of these assets has been revised to comply with legal requirements within the EU.While European officials aim to establish Europe as a hub for cryptocurrencies with the implementation of Markets in Crypto-Assets (MiCA) regulations, Binance’s actions suggest a preference for other jurisdictions.The rise in popularity of cryptocurrencies in the UAE can be attributed, in part, to the VARA. Chehade commends VARA for providing a clear regulatory framework for crypto businesses, which he believes is lacking in other regions.As Binance faces regulatory pressure in the West, the company is exploring opportunities in the Middle East, particularly in the UAE, where the regulatory framework, growing crypto community, and commitment to becoming a Web3 hub make it an attractive prospect for expansion.It is understood that Binance’s Founder and CEO, Changpeng Zhao (CZ), lives in Dubai. However the headquarters of the company has remained unclear. Originally founded in Shanghai in 2017, the firm was later moved to Tokyo and later to Malta. Perhaps the UAE will serve as the company’s base going forward.

Dunamu likely to extend CEO Lee’s tenure, ensuring continuity in Upbit leadershipDunamu, the operator of Upbit, South Korea’s largest cryptocurrency exchange, recently convened a board meeting where a key decision was made to extend the term of Lee Sirgoo as Dunamu’s CEO, as reported by local news outlet Newsis, citing industry sources.Photo by Benjamin Child on UnsplashFinal decision on Dec 5The final decision on the extension of CEO Lee’s term at Dunamu is set to be made at the extraordinary general meeting on Dec. 5. The crypto industry is largely confident about Lee’s reappointment, especially given the presence of major executives, including Chairman Song Chi-hyung, at the recent board meeting.Responding to changing regulationsIn light of these developments, industry insiders are keenly observing whether CEO Lee will maintain Upbit’s market dominance in Korea. A key factor influencing Upbit’s future success will be Dunamu’s strategy in adapting to the changing market conditions, particularly in response to the upcoming Virtual Asset User Protection Act, which is due to come into effect in July next year.One source familiar with the matter said that Lee’s reappointment is almost assured, barring the emergence of any unexpected factors.If confirmed, this will mark Lee’s second reappointment as CEO of Dunamu since his first in 2020. This extension would bring his total tenure to nine years, continuing through 2026, considering that he initially assumed leadership in December 2017.Emphasis on stability and blockchain adoptionThis move likely underscores Dunamu’s prioritization of stability, especially considering Chairman Song’s emphasis on the company’s commitment to the widespread adoption of blockchain technology, as highlighted in the recently convened Upbit D Conference (UDC). Such a focus suggests that the company is leaning more towards maintaining its current status rather than embarking on new ventures.An executive from a Korean crypto research firm observed that Dunamu’s annual UDC event is a significant indicator of the company’s business direction. The person highlighted this by comparing it to last year’s event, where Dunamu officials focused on new initiatives, particularly in the realm of NFTs. This was evident in their collaboration with Levvels, a joint venture between Dunamu and HYBE, the management agency of the popular K-pop boy group BTS.The executive further elaborated that the widespread adoption of blockchain technology requires strengthening the Upbit business, an area in which Lee excels. The research expert suggested that if he had diverted his efforts towards other new projects outside of Upbit, the outcomes might have been different.CEO Lee’s ability to steer Upbit effectively in the burgeoning field of blockchain technology can be attributed to his rich academic and professional journey. He holds a diverse academic background with degrees from Seoul National University, the University of Hawaii at Manoa and Lewis & Clark Law School. His career spans journalism, law and corporate leadership, including roles as a reporter for JoongAng Ilbo, counsel for IBM Korea, CEO of NHN USA and co-CEO of Kakao Corporation.

Many commentators in the crypto space were pointing to a lowering of interest rates last week by the Federal Reserve in the United States as being a positive development for the pricing of digital assets. However, the introduction of a stimulus package to revive the Chinese economy may also have a role to play. Stimulus packageBloomberg reported on Sept. 24 that People’s Bank of China Governor Pan Gongsheng had cut a key short-term interest rate. Furthermore, the Bank of China governor plans to implement a reduction in the reserve requirements that are applied to the country’s banks. The Reserve Requirement Ration (RRR) will be cut by 50 basis points, which will mean that $142 billion will be freed up for new lending.  Additionally, a package of measures has been introduced to rejuvenate China’s beleaguered real estate market, lowering the borrowing costs related to $5.3 trillion in mortgages.Photo by Eric Prouzet on UnsplashBullish for crypto?Jamie Coutts, chief crypto analyst at financial research platform Real Vision, took to X to comment on the development. Coutts wrote: “The bottom is in for global central bank liquidity for this cycle. Sit back and watch the other CBs fall into line. In a credit-based fiat fractional reserve system, debasement is a feature, not a bug.” Coutts signed off with a “Bitcoin” hashtag, with the inference that the development will have positive implications for Bitcoin. Similarly, market analysts at Singaporean crypto-asset trading firm QCP Capital perceive the move as being bullish for crypto and risk assets more generally. QCP Capital analysts stated: "We believe more easing is coming from the People's Bank of China (PBoC), and they have communicated as much, and combined with the U.S. Federal Reserve joining the global cutting cycle, all major central banks, except Bank of Japan, are now ready to inject more liquidity into the market. The macro space continues to look more and more bullish for risk assets, including crypto."  Taking that consideration further, the QCP Capital analysts suggest that market participants in the crypto space may be caught off guard by a resultant uptick in crypto pricing, stating: "We know how explosive crypto prices can be, and with so many bullish catalysts, we think the next move higher will leave many people surprised and sidelined.” Fed rate cutsMany market commentators were similarly enthused last week following an announcement in the U.S. by Jerome Powell, Federal Reserve Chairman, of a 50 basis point rate cut, with the suggestion that further cuts may be implemented going forward. However, not all market pundits are of the same view. Some believe that small interest rate cuts occurring in an overall high rates environment won’t move the needle and that it’s only in a zero rates environment where Bitcoin and crypto skyrocket.  Arthur Hayes, co-founder of BitMEX and Chief Investment Officer (CIO) at the Maelstrom Fund, asserted in his keynote speech at TOKEN2049 in Singapore last week that he wasn’t enthusiastic about rate cuts driving crypto.  “While I think a lot of people are looking forward to a rate cut, meaning that they think the stock market and other things are going to pump up the jam, I think the markets are going to collapse a few days after the Fed’s rates,” he stated. Markets didn’t collapse subsequently although it seems that they are responding to this latest monetary stimulus introduced by China.