Around the Blockchain with Huobi Learn (17 Mar 2022)

Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
Ukrainian president Volodymyr Zelenskyy has legalized crypto in the country, signing into law a bill that determines the legal status, classification, ownership and regulators of virtual assets. The law sets registration requirements for crypto service providers, while Ukraine’s National Commission on Securities and the Stock Market will regulate the industry, allowing exchanges to operate legally and banks to open accounts for them. The Commission is tasked with “shaping and pursuing a policy in the field of virtual assets; determining the order of circulation of virtual assets; issuing permits to virtual asset service providers; and carrying out supervision and financial monitoring in this area”. The Ministry of Finance is now working on amendments to Ukraine’s tax and civil codes for a full launch of the virtual assets market.
The Bank of Canada and Massachusetts Institute of Technology (MIT) will work together on a 12-month research project to study how “advanced technologies could affect the potential design of a CBDC” (central bank digital currency). According to the bank, this project is part of a wider development plan for digital currencies and fintech in Canada, though it was quick to add that “no decision” had been made on “whether to introduce a CBDC in Canada”. On the other hand, the Indian government has said it does not plan to issue crypto for the Reserve Bank of India (RBI) to regulate, even as it confirmed the RBI will launch India’s CBDC this financial year. Minister Pankaj Chaudhary clarified in Parliament that the CBDC is merely “a digital version of traditional paper currency”, and that the RBI will not issue crypto.
Bored Ape Yacht Club (BAYC) backer Yuga Labs has announced ApeCoin, a new cryptocurrency that will be the “primary token for all new products and services” from the company. While ApeCoin (1 billion coins) will initially be used as in-game currency, it can also be used outside of Yuga Labs’ titles and in future, even as a general-purpose digital currency. ApeCoin was established independently of Yuga Labs, with community-run ApeCoin DAO overseeing the token and being funded by ApeCoin sales. A corporate parent called the Ape Foundation will execute decisions on ApeCoin DAO’s behalf. The DAO will spend some of the money it raises on building an ecosystem around ApeCoin, while Yuga Labs will maintain a sizeable voting share in ApeCoin DAO and retain about 15% of all minted ApeCoins. BAYC’s founders will receive 8% and contributors to the DAO’s launch will get 14%. A further 15% will be offered first to Bored Ape NFT holders.
Binance is looking at acquiring banks and payment processors in Brazil, according to CEO Zhao Changpeng, who also revealed that the company wants to add to its 100-person Brazilian team. This follows Binance’s signing of a memorandum of understanding (MoU) to acquire Brazilian securities brokerage Simpaul Investimentos on Monday. The crypto exchange also plans to work closely with regulators and government agencies to facilitate the country’s crypto industry in a “healthy and collaborative way”. Zhao has already met with regulators and politicians in Brazil, including São Paulo governor João Dória.
In keeping with president-elect Yoon Suk-yeol’s crypto campaign promises, South Korea’s government is considering lifting the country’s ban on initial coin offerings (ICOs). Yoon had pledged during his presidential campaign to reverse the 2017 ICO ban, allowing them to be supervised by licensed crypto exchanges in the form of initial exchange offerings (IEOs). In response, Lee Hae-boong, head of crypto exchange Upbit’s investor protection center, suggested the government provide white paper templates for ICOs, in order to protect investors from scam tokens. At the same time, Korea Capital Market Institute research fellow Kim Kab-lae insisted that the white papers be written in Korean, adding that companies should be obliged to disclose large-scale crypto investments, or changes to their digital asset portfolios.
Show me the money
According to data from Huobi Global, both BTC and ETH saw slight increases last night. Both also saw expanded trading volume, and daily charts show low consolidation. In terms of contracts, Huobi Futures data show slightly increased open interest (OI) in both BTC and ETH futures, with a small decrease in volume amid a relatively inactive contract market.
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