Binance withdraws Abu Dhabi bid amid global licensing reevaluation

Bitcoin's global merchant acceptance witnessed a substantial surge, growing by 174% throughout 2023, with the Philippines proving itself in leading the way within the Asian region.Photo by rc.xyz NFT gallery on UnsplashRegion facing regulatory restrictionsThat’s according to BTC Map, a provider of bitcoin merchant mapping services. The data, derived from BTC Map's open-source mapping data via OpenStreetMap, revealed that the number of venues accepting bitcoin payments surged from 2,207 at the beginning of the year to 6,126 by the year's end. This diverse array of businesses included restaurants, bars, shops and various services. The expansion of bitcoin vendors is a global phenomenon, with concentrations notably observed in Europe, the United States and Latin America. The Philippines stands out in Asia with hundreds of vendors, while regulatory restrictions in East Asia, especially China, have limited adoption. While it's great to see a high level of direct adoption among Filipino merchants, it's easy to understand why this level of adoption hasn’t been matched within Asia’s largest market. China has had a long-standing ban on cryptocurrency trading, mining or its use as a means of payment. Despite the ban, it appears that crypto trading is still alive and well in China, although beneath the surface. With mining too, while the sector shrank considerably once a ban was imposed, there is believed to be a significant ongoing level of bitcoin mining occurring still within China’s borders. However, when it comes to vendors, this is likely to be an activity that is far too visible to the authorities and with that, China’s 1.4 billion citizens are not getting the opportunity to buy goods and services with the world’s leading cryptocurrency. Compounding matters, the Chinese authorities have been working diligently on a myriad of projects to bring about day-to-day retail use of the country’s central bank digital currency, the digital yuan. Those efforts are not likely to be aligned with an accommodation of or tolerance of bitcoin payments. The increase in merchant listings showcased a slight decline from the peak in September, which reached 6,590 merchants. BTC Map's platform allows businesses and users to tag locations accepting bitcoin payments, with the rise in numbers potentially attributed to increased user contributions to the database. This surge in bitcoin adoption globally occurred against the backdrop of the cryptocurrency's price volatility throughout the year. Despite potential limitations in data collection due to its reliance on volunteer contributions, the overall trend indicates a growing acceptance of bitcoin. Ongoing challenges to adoptionA panel of bitcoin leaders at the Plan B conference in October discussed the challenges and opportunities of global bitcoin adoption. Notably, they highlighted the difficulty of onboarding new users and merchants, particularly in diverse cultural contexts. In El Salvador, where bitcoin is legal tender, obstacles persist in convincing merchants to accept bitcoin payments. Geographically, concentrations of bitcoin-accepting vendors were more prevalent in Central and South America, while Africa and Asia demonstrated fewer such establishments. The United States and Europe led in the global count of crypto-friendly merchants. The panel stressed the importance of education in overcoming these challenges, emphasizing the need for user-friendly applications to facilitate mainstream adoption, moving away from complex technologies. As bitcoin continues its global expansion, the industry recognizes the vital role education and user-friendly solutions play in fostering broader acceptance. 

Energy Theft Results in Crypto Mining Operation Shutdown in BorneoAuthorities in Miri, a city on the island of Borneo in Malaysia, swiftly responded to a tip-off from the public, leading to the successful shutdown of an illegal cryptocurrency mining operation.According to local news source, The Borneo Post, during a well-executed raid, 34 mining servers were confiscated, all of which were illicitly drawing power through cable tapping.Photo by Muhammad Faiz Zulkeflee on UnsplashEnergy thieves turn to miningWhile Borneo offers some of the lowest energy prices in Malaysia, it continues to struggle with the problem of energy theft. That issue has been highlighted via a recent utility announcement. Sarawak Energy, the local energy provider, estimated that the criminal operation caused losses of approximately 6,000 Malaysian ringgits ($1,300) worth of stolen electricity each month.The rise of the Bitcoin mining industry in 2023 has brought about record-high network hash rates and network difficulty. While the growth of miners generally signifies the robustness of the Bitcoin network, smaller operators without the economies of scale enjoyed by larger corporations face challenges.One such challenge is energy generation to power their mining servers. In pursuit of higher profit potential with lower electricity rates, illegal mining operators are drawn to stealing electricity from the grid. By eliminating energy expenses, these illicit miners can accumulate profits and offset equipment costs.Fourth recent instanceThe recent incident marks the fourth major operation in Senadin, where Miri is located, where authorities have cracked down on power theft cases related to cryptocurrency mining in 2023. So far, over 137 Bitcoin mining servers have been seized during these operations.On the other side of the spectrum, legitimate crypto mining companies are actively securing funding to support their mining projects. Riot Platforms, for instance, invested a substantial $162.9 million to acquire 33,280 state-of-the-art equipment from MicroBT, a leading producer of mining machinery.In another example, Coinbase extended a $50 million credit line to Canadian cryptocurrency firm Hut 8 Mining, facilitating its operations. Furthermore, Volcano Energy, a public-private partnership in El Salvador, secured an initial funding of $250 million for its ambitious Bitcoin mining venture.Appropriate mining activityThe spate of recent instances of illegal mining in Borneo acts as a reminder of the importance of regulatory compliance and adherence to the law within the cryptocurrency industry. While the allure of lucrative profits may tempt some to engage in illegal activities, the consequences can be severe. Mining can be a positive societal force when applied within appropriate circumstances.A move by the President of Kyrgyzstan last week to harness crypto mining in order to utilize energy that is otherwise being wasted at the central Asian country’s Kambar-Ata-2 hydropower plant serves as a recent example of a positive use case for the activity.In Texas in the United States, crypto miners are collaborating with those that manage the local energy grid, turning off miners at times when the state is on the brink of suffering blackouts.As the crypto mining landscape continues to evolve, it is essential for both authorities and legitimate operators to work together in finding sustainable solutions that ensure the industry’s growth while maintaining the integrity of the energy infrastructure.

WEMIX Foundation to Sponsor Binance Blockchain Week in Istanbul in NovemberThe WEMIX Foundation, a subsidiary of South Korean blockchain gaming publisher Wemade, announced last week its participation in Binance Blockchain Week. The event is set to take place in Istanbul, Turkey, from November 8 to 9.Photo by Ibrahim Uzun on UnsplashSecurity and transparencyWEMIX Foundation has been making multifaceted efforts to ensure that its on-chain ecosystem operates with a world-class level of security and transparency. The foundation has been leveraging tools like Xangle’s Live Watch for on-chain data collection and analysis, Binance’s Ceffu for the safe storage and management of WEMIX tokens, and Fireblocks’ infrastructure to ensure transparent WEMIX transactions. It has also implemented Chainalysis’ anti-money laundering (AML) compliance solution to bolster its security measures.Further collaborationsFollowing their efforts to ensure a secure and transparent on-chain ecosystem, Wemade and the WEMIX Foundation are taking another significant step. As sponsors of Binance Blockchain Week, they are set to explore new collaborations with not just Binance, but also other global projects and institutions attending the event. The WEMIX Foundation sees these potential partnerships as opportunities for synergies, aiming to boost the WEMIX ecosystem’s growth, broaden the reach of “unagi” — the shorthand for its omnichain network, Unbound Networking and Accelerating Growth Initiative — and further reinforce its commitment to security and transparency.