XRP's XRP/USD price has decreased 3.08% over the past 24 hours to $0.34, continuing its downward trend over the past week of -1.0%, moving from $0.34 to its current price.

The chart below compares the price movement and volatility for XRP over the past 24 hours (left) to its price movement over the past week (right). The gray bands are Bollinger Bands, measuring the volatility for both the daily and weekly price movements. The wider the bands are, or the larger the gray area is at any given moment, the larger the volatility.

The trading volume for the coin has fallen 20.0% over the past week which is opposite, directionally, with the overall circulating supply of the coin, which has increased 0.23%. This brings the circulating supply to 49.54 billion, which makes up an estimated 49.54% of its max supply of 100.00 billion. According to our data, the current market cap ranking for XRP is #7 at $16.69 billion.

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Cryptocurrency XRP Decreases More Than 3% Within 24 hours - Benzinga

Over the past 24 hours, Flow's FLOW/USD price has fallen 4.36% to $2.08. This continues its negative trend over the past week where it has experienced a 9.0% loss, moving from $2.3 to its current price.

The chart below compares the price movement and volatility for Flow over the past 24 hours (left) to its price movement over the past week (right). The gray bands are Bollinger Bands, measuring the volatility for both the daily and weekly price movements. The wider the bands are, or the larger the gray area is at any given moment, the larger the volatility.

The trading volume for the coin has fallen 72.0% over the past week, moving in tandem, directionally, with the overall circulating supply of the coin, which has decreased 0.39%. This brings the circulating supply to 1.04 billion, which makes up an estimated 74.51% of its max supply of 1.39 billion. According to our data, the current market cap ranking for FLOW is #32 at $2.15 billion.

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Cryptocurrency Flow Down More Than 4% Within 24 hours - Benzinga

The world is still struggling to comprehend the geopolitical and human impact of the Ukraine war. With more than 10 million people fleeingtheir homes and 6 million seeking refuge in foreign countries, it's been a time to support a sovereign country under attack.

It has also proven to be the moment where cryptocurrency proved its true value to real people. Not as the high-concept tech toy for the wealthy elite as many had previously dismissed it, but rather as an empowering force for good in a dangerously unstable world.

When the Russian invasion began in February, Twitter accounts belonging to the Ukrainian government posted pleas for crypto asset donations. Now, as more than $100 million in crypto donations have already been raised to support the Ukrainian resistance, those of us who have championed crypto as a way of giving ordinary people rather than corporations and governments control over their own money have been vindicated. While the banking financial system has been under sustained attack by Russia, using both military and cyberattacks, this life-saving money has gone directly to those in need via crypto.

Ukraine took a number of measures in an effort to stabilize the banking sector and protect the countrys economy, including suspending foreign cash withdrawals, limiting how much currency can be withdrawn, and banning cross-border forex transactions. Consequently, Ukrainians are turning to borderless and trustless crypto to enable them to either survive in or flee from the war zone.

Related:The Ukraine invasion shows why we need crypto regulation

We can now see the value of having somewhere safe to store money in a time when the traditional financial system is under threat a completely separate payment infrastructure that can step in and pick up the slack if the current infrastructure is destroyed in a black swan event. Whether it is a state destroying our ability to pay for goods and services or even a major cyberattack, the blockchain provides a vital backup to halt the destruction of entire economies.

We have witnessed digital currencies being used to quickly transfer cash to those in need from relatives abroad, enabling fleeing refugees to buy crucial goods and services when there is no cash in their ATMs after critical infrastructure has been decimated by relentless Russian attacks. Anyone with a mobile phone and internet access which has been bolstered by the thousands of Starlink satellite internet dishes generously provided by Elon Musks SpaceX can access their funds via crypto wallets.

Crypto averting sanctions? Think again

Digital currencies have not only shown their worth in helping desperate Ukrainian refugees but also in preventing sanctions from being averted. Contrary to speculation at the onset of the conflict, desperate Russian oligarchs have discovered that crypto is not the safe haven for their funds that they had hoped.

As the United Kingdoms independent crypto industry association, we called on all of our members and the wider crypto community to take all necessary steps to enforce economic sanctions against Russia through engagement with professional compliance teams, blockchain analytics companies, the National Crime Agency and government experts in illicit finance.

Contrary to the outdated image of crypto as a digital currency favored by criminals, every transaction on the blockchain is, in fact, publicly available, providing a secure and transparent record on a ledger that anyone can see. This publicly available information means that exchanges can use transaction monitoring tools to trace the source of the funds and flag what is coming from blacklisted, sanctioned sources.

The list of blacklisted addresses is in the public domain, which means that exchanges can not only identify and block sanctioned names but also prevent them from opening accounts in the first place.

Lack of liquidity

Contrary to some speculation, if Russia wanted to evade sanctions by converting fiat currency into crypto today, it would be extremely difficult because there is insufficient liquidity in the market to support exchanging its fiat for cryptocurrency at a sufficient scale.

If an oligarch is attempting to convert $1 billion into crypto, they would find that this vast amount of digital currency is simply not available in one place because it is scattered across thousands of marketplaces.

Building digitally from ground zero

The legacy systems upon which our financial markets stand are not going anywhere, and quite rightly, because governments around the world value the safety, predictability and security they offer. But if we could start from scratch, it is likely that we would turn to blockchain technology, which is at the cutting edge of financial technology thanks to its superior efficiency. It does away with all the intermediaries, reduces the time to settle, increases the global reach for sending payments, and reduces costs.

Related:Ukraine has received $37M in tracked crypto donations so far

Big payment providers, which connect the banking world with merchants, have already embraced crypto, providing the ability to pay with digital currencies as an alternative to paying a credit card charge. The cost of these transactions has increased significantly in recent years, and if a company is turning over tens of millions of dollars per year, 2% is a lot of money. If they have another way to pay using crypto for a fee of less than 1%, it is a better choice.

Ukraines financial infrastructure may emerge from this tragic war at ground zero, and we may soon witness a modern society rebuilding its economy with a strong blockchain technology element built in. As the shockwaves of this tragic conflict resonate around the world, crypto has risen to the challenge and proven itself a vital source of both financial stability and accountability.

The views, thoughts, and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Ian Taylor is the executive director of CryptoUK, an independent industry body that exists as a cohesive, credible voice for the evolving United Kingdom digital assets industry. Having spent 20 years in investment banking, he has held many senior roles across trading, treasury and risk management, and is still involved with a major global bank. In his role he has built a community of more than 100 of the most influential industry participants and campaigns for a fit-for-purpose regulatory framework in the U.K., Europe and beyond.

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Ukraine has shown the value cryptocurrency offers to real people - Cointelegraph

Just when investors thought that the markets were in a recovery mode, the markets gave out a reality check. The cryptocurrency market is crashing today as leading cryptos are down double digits. Theres still fear and panic as most cryptos shed the gains they generated last week. The crypto markets have continually been trading one step forward and two steps back in 2022, and todays crash is no different. Bitcoin plummeted nearly 8% on Friday, while Ethereum is down 5% and is expected to head south further.

In the last 24 hours, $550 million worth of cryptocurrencies have been liquidated from the markets. The overall crypto market cap is down nearly 7% and is standing at $1.09 trillion. The liquidation numbers are expected to fall further as Bitcoin is on a downward spiral.

Also Read: Shiba Inu, Doge Prices Tank Double Digits, XRP & BNB Close behind

The markets reacted to the FOMC Meeting Minutes as reports state that the Feds plan more interest rate hikes to tame inflation. The U.S central bank has not explicitly revealed the upcoming interest rates hike publicly. However, the Minutes Meeting suggests that the policymakers are committed to raising interest rates again.

The policymakers agreed that inflation rates did not subsidize despite their previous attempts to tame inflation. Participants agreed that there was little evidence to date that inflation pressures were subsiding, the Minutes Meeting read.

Also Read: Crypto Firm Hodlnaut slashes 80% of staff Amid Court Proceedings

Therefore, there are higher chances that the Feds might increase interest rates again in September. The decision will be confirmed in the next Minutes Meeting on September 20 and 21. It is reported that the Feds plan to double the rate of balance sheet shrinkage in September. However, the report is not confirmed until the Feds announce the next interest rate hike.

The FOMC Meeting was held on Wednesday, and the markets lost their cool after the release of the Minutes. The cryptocurrency markets are crashing today.

Heres what the FOMC Meeting Minutes read: Members agreed that, in assessing the appropriate stance of monetary policy, they would continue to monitor the implications of incoming information for the economic outlook and that they would be prepared to adjust the stance of monetary policy as appropriate in the event that risks emerged that could impede the attainment of the Committees goals.

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Why is the Cryptocurrency Market Crashing Today? - Watcher Guru

The cryptocurrency space has long hoped to emulate the business model of Uber: ignore the regulations until you can grow too big to regulate, a technique called regulatory escape velocity. With Uber, the primary tool was simply violating taxi regulations among thousands of independent municipalities and daring the local regulators to do something. With cryptocurrency, the common excuse is to just write code that ignores centuries of financial regulation and then let it loose upon the world.

The cryptocurrency ecology has now run into a regulator that thinks nothing is too big to regulate: The Office of Foreign Asset Control (OFAC). On Aug. 8, OFAC announced the addition of virtual currency mixer Tornado Cash and all of its wallets to the Specially Designated Nationals and Blocked Persons List (SDN list), of entities that it is illegal for U.S. persons, or really anything that touches the U.S. financial system, to do business with.

OFAC is not a business regulator like the Securities and Exchange Commission (SEC). OFAC doesnt have consumer protection interest or authority, nor does it investigate the various other little crimes (such as billion-dollar Ponzi schemes or industrial-scale securities fraud) that infest the cryptocurrency space. OFACs focus is national security, no different than the Army or Air Force branches. However, OFACs tools are sanctions, not soldiers, as a way of keeping money out of the hands of what are deemed national security threats.

This has implications beyond Tornado Cash, including how cryptocurrency mining and bridging may act in the future. And a griefer, an online individual who delights in causing problems for others, has also shown that most of these decentralized systems arent.

Tornado Cashs Designation and Its Implications for Decentralized Cryptocurrency

Tornado Cash was notorious for being an automated money laundering system that processed billions of dollars worth of stolen cryptocurrency, including almost a billion stolen by North Korea (DPRK). The response to OFACs designation was swift: Tornado Cashs github archive and website went away, and the founder of Tornado Cash found his personal github account suspended. And Dutch authorities even arrested one purported developer on Aug. 10.

Similarly, although the cryptocurrencies themselves are supposedly decentralized, actually using them requires centralized providers like Infura, which powers the popular cryptocurrency wallet MetaMask. Infura blocked MetaMask from accessing anything involving Tornado Cash, reminding everyone that the distributed, uncensorable Ethereum blockchain that powers Tornado Cash is amazingly dependent on centralized entities to deliver even remotely usable systems.

Likewise, the organization responsible for Tornado Cash, the Tornado Cash DAO (decentralized autonomous organization, basically a corporation that doesnt bother to do the paperwork to gain the legal protections of a corporation), decided to fold up shop as they cant fight the U.S. government, freezing future development and transferring funds initially intended to support continued development of the system to those who invested in the Tornado Cash governance token.

While these developments havent halted the smart contracts that operate Tornado Cash, they have severely disrupted the contracts in a few ways. First, without the web interface or MetaMask support, it requires an expert to access the underlying smart contracts to either withdraw or deposit Ethereum in Tornado Cash, a feature common to many decentralized projects. Even then, this disruption limits the utility as outputs of Tornado Cash are easy to identify as coming from Tornado Cash. Most central providers now treat such flows as dirty.

Second, it also effectively stops copycats. The Tornado Cash code is still out there, and someone can spin up a copycat for a couple hundred dollars worth of Ethereum gas fees, but any new mixing services are no longer nearly as useful for criminals. The mixing service needs many users to provide useful anonymity, so if there are few users it provides little benefit for the criminals. But if there are a significant number of users, it is nearly inevitable that this will include the DPRK, meaning Tornado Cash 2.0 will end up in the same situation as Tornado Cash Classic.

Third, as cryptocurrency analyst David Gerard put it, the cryptocurrency community has long believed that if you create an automated box where you put clean and dirty money in and shake it around, all the money comes out clean rather than dirty. The latest designation shows that OFAC has seen through this illusion, meaning that if Iran or North Korea finds the service useful at scale, then these boxes will be at risk of sanctions. Other regulators are likely to follow suit.

Another amusing lesson arises from a griefer who sent small amounts of Ethereum (0.1Eth or about $200) to numerous high-profile Ethereum wallets. These wallets then found themselves locked out of numerous decentralized services.

This was due to how centralized services Chainalysis, TRM, and Elliptic provide an oracle to say, This is a sanctioned wallet, do not accept, to the numerous centralized services that actually power the Ethereum ecology. These web pages then blocked access to the supposedly decentralized systems.

The disruption, although temporary, is a great demonstration that most of the cryptocurrency space is something I now describe as Derp-Centralized: centralized systems, powered by centralized entities, that simply abrogate their responsibilities unless threatened by a powerful regulatory authority like OFAC.

Going forward, OFAC should watch the Tornado Cash pools and pay attention to subsequent outflows as they indicate two groups of additional targets that OFAC will probably need to warn if not sanction in the future: the Ethereum miners themselves and various bridge protocols.

There is a myth that cryptocurrency miners are not involved in transactions because the system is decentralized. But the reality is that every transaction is included in the public record by a single block producer who is effectively the money transmitter for the transactions in the particular block.

Miners can refuse transactions that meet their individual criteria (and they have done so). Marathon Digital Holdings previously created an OFAC compliant Bitcoin mining pool, although they stopped this enforcement due to public backlash: Apparently the cryptocurrency community views violating OFAC sanctions as a desired property.

OFAC Moving Forward

Although previously most cryptocurrency mining occurred in China, China evicted the miners because of their obscene power consumption and other reasons. The mining has largely bounced all over the world, but a huge amount has now settled into the U.S. and Canada. This is due to a combination of inexpensive, reliable power as well as a strong rule of law. Of course, the strong rule of law comes with the condition that the miners too have to follow the law.

OFAC should offer a friendly reminder to all U.S.- and U.S.-adjacent-based cryptocurrency miners that they have an obligation to follow OFAC regulations. OFAC should elaborate that a miner that produces a block is responsible for the transactions contained in the block.

And it wouldnt be an undue burden for the miners. Marathon Holdings already showed it is possible to provide OFAC-compliant mining by using a risk-scoring method to exclude sanctioned transactions.

The list of sanctioned cryptocurrency wallets, across numerous blockchains, is now substantial. OFAC provides a convenient downloadable list, and as seen before there are central services that allow easy querying to determine if a transaction would run afoul of OFAC or other laws. Miners with a U.S. nexus need to abide by those laws.

The other likely target for future OFAC enforcement is bridge protocols. The primary blockchains, Ethereum and Bitcoin, are slow, congested, and expensive to use. So there exist services that will take a users Ethereum or other cryptocurrency on one system and transfer it to another as wrapped tokens. It was specifically the Ronin bridge that the DPRK targeted in its record-setting hack.

But bridges dont just serve to transfer cryptocurrency. They can also disguise cryptocurrency. A bridge, like a mixing service, represents a large pool of cryptocurrency where a participant can make a deposit and, at a later date, withdraw the cryptocurrency. The DPRK has already discovered this, apparently having laundered some $150 million through the RenBridge system out of some $500 million of dirty cryptocurrency.

The operators of this bridge, by not putting in proactive controls, are playing with fire. After all, they could modify both the front end and smart contracts to access the information needed to block OFAC-sanctioned entities from using the bridge.

Overall, the cryptocurrency communitys attempt at regulatory escape velocity has run into a huge obstacle: There is no escape velocity from the surface of a black hole. Things are now entering the Find Out stage of OFAC Around and Find Out.

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OFAC Around and Find Out - Lawfare

Volatility is the bane of cryptocurrencies, which is why they are unreliable as stores of value. This brought about the need for cryptocurrencies whose values are tied to a more stable asset or currency, usually a fiat currency like the US dollar. However, these stablecoins are not stable, and neither are they completely decentralized.

Fiat currencies lose value all the time, affecting the value of these stablecoins. So in real terms, the purchasing power of stablecoins does not remain constant. Also, fiat currencies are controlled by the federal reserves or central banks, negating decentralization. Adirize comes in.

Adirize is a project that aims to provide a decentralized algorithmic reserve currency through its token, ADI. ADI will be backed by a reserve of cryptocurrency assets owned by the Adirize protocol. So instead of borrowing liquidity, Adirize will own the liquidity.

ADI can be staked for rewards. To stake ADI, you buy the token in regular exchanges or exchange your liquidity for ADI. You then use the app to stake ADI. Staking rewards are denominated in stakedADI (sADI). Staking rewards are usually high, and your sADI has the same value as regular ADI while also being transferrable.

Another way to earn on Adirize is bonding. Bonding involves selling your liquidity to the blockchain to receive ADI tokens at a discounted rate. Bonding makes you a liquidity provider. You can also sell your ADI back to the protocol at a price higher than the market price for a piece of liquidity, known as inverse bonding.

Adirize DAO will be the governance arm of the ecosystem. ADI holders will participate in proposing, discussing, and voting on suggestions regarding the running of the ecosystem. A suggestion would require a majority of votes before it is adopted.

Solana is a decentralized blockchain utilizing smart contracts. It uses a proof of stake mechanism to create new blocks and validate transactions. It is known for its speed and cheap transaction fees.

Solana is considered a rival to Ethereum because they perform the same functions. It is also one of the fastest-growing blockchains. SOL is the native and governance token of the Solana ecosystem.

Although Solana is a popular platform for running dApps, the SOL token is still subject to the whims of the market. This makes it a poor store of value, unlike Adirizes ADI, which will remain stable despite market movements. On the other hand, this makes it a good store of value and will encourage investors to hold the bulk of their crypto assets in ADI.

Ripple is an open-source blockchain-based payment platform. It is used for international transfers and to exchange fiat currencies. Ripple uses Federated Consensus to add new blocks to the blockchain. In this method, all participants are known to each other. A new block is added when all validators agree.

Ripple completes a transaction in less than five seconds, whereas using normal channels to transfer funds takes a few hours to a few days. Ripples native token is XRP.

The Federated Consensus model that Ripple uses to create new blocks does not make staking possible. But, on the other hand, you earn substantial rewards when you stake ADI. This makes ADI more attractive to investors looking to earn with their crypto assets.

Furthermore, while the community governs Adirize, decision-making in Ripple is centralized.

Finally, Adirize has developed a token that will be the reference point in the crypto space. ADI will make it practically possible to pay for goods and services with cryptocurrency. Moreover, people will be confident using the token because they are sure its purchasing power will remain the same.

Presale: http://join.adirize.com/Website: http://adirize.com/Telegram: https://t.me/AdirizeDAO_Official

Disclaimer:This is a paid release. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of Bitcoinist. Bitcoinist does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.

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Discover Why Adirize May Make Millions And Is The Cryptocurrency You Should Purchase Even Ahead Of Solana Or - Bitcoinist

Ethereum Classic's ETC/USD price has decreased 15.22% over the past 24 hours to $35.07, continuing its downward trend over the past week of -17.0%, moving from $42.27 to its current price.

The chart below compares the price movement and volatility for Ethereum Classic over the past 24 hours (left) to its price movement over the past week (right). The gray bands are Bollinger Bands, measuring the volatility for both the daily and weekly price movements. The wider the bands are, or the larger the gray area is at any given moment, the larger the volatility.

The trading volume for the coin has fallen 28.0% over the past week which is opposite, directionally, with the overall circulating supply of the coin, which has increased 0.16%. This brings the circulating supply to 136.43 million, which makes up an estimated 64.75% of its max supply of 210.70 million. According to our data, the current market cap ranking for ETC is #21 at $4.78 billion.

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Cryptocurrency Ethereum Classic Decreases More Than 15% Within 24 hours - Benzinga

Turkey was the largest cryptocurrency market in the Middle East in 2021, with the exchange volume expanding by some 1,500% y/y, according to data from Chainalysis.

Attorney Burcak Unsal, an expert in cryptocurrencies, noted that the Turkish transaction cryptocurrency volume last year was one of the biggest in the world. Statista Portal, meanwhile, presented data showing Turkey was the worlds fourth biggest cryptocurrency market in 2020 in relation to the number of users.

Forty cryptocurrency exchanges are currently operating in Turkey, the Middle Easts largest economy and home to around 85mn people. The most popular platforms are Bitcoin, Paribu, BTC Turk and Binance.

The attraction of cryptocurrencies in emerging market Turkey stems from the high volatility and plummeted valueof the Turkish lira (TRY), the local currency. Since 2020, the chronic depreciation of the lira has driven many private actors to find a more secure way to invest and save their money. The lira's exchange rate against the dollar has not been stable for a decade. Between 2013 and 2018, the national currency depreciated by 4 times against the USD. It lost 44% of its value in 2021 and year to date in 2022 it has shed more than another 25%, bringing total losses in the last three years to around 70%.

The high inflation rate in the country-an official 80% in July but more than twice that according to some independent analysis by Istanbul economistsaggravated by detrimental monetary policy pursued by the Turkish central bank and government in the drive for growth has raised the attraction of the cryptocurrency market for Turks. The central bank refuses to budge on interest rates, declining to bring in hikes despite loud calls from the market as it attempts to flip the chronic Turkish trade deficit into a surplus. Rampant inflation and a collapse lira are here to stay for consumers and investors in Turkey in these circumstances. The government, meanwhile, attempts to curb the fall of the lira by restricting access to FX for residents, often in vain.

Hard currency instability

Finally, hard currencies are subject to instability amid a global inflationary scene with surged oil and gas prices. Turkish residents who relied on the dollar and other strong foreign currencies to protect their savings have become more reluctant to rely solely on such fiat money to protect their assets and investments. Thus, cryptocurrencies become more and more popular while the national fiat money is perceived as less stable than digital assets. A similar trend is visible in South America and Africa. According to surveys, the percentage of Turkish residents using cryptocurrencies was 16% to 20% between 2020 and 2022. Turan Sert, from Paribu, the biggest cryptocurrency platform in Turkey, said that in the past it was dollarization, meaning that to avoid fluctuations in their domestic currency people kept their assets in dollars [] now the recent trend is being called cryptolization.

Unsal explained that Turkish residents have invested massively in cryptocurrencies since confidence in the lira has been on the wane for a very long time. On digital platforms, anyone can invest small amounts easily without prior technical knowledge, contrary to the stock market and in FX trading and real estate. These options are less accessible, more expensive and are submitted for state taxes.

That said, the cryptocurrency market in Turkey is not entirely safe and stable. Fluctuations, sometimes quite dramatic, are often expected, particularly when it comes to worldwide platforms, owing to restrictive measures taken simultaneously in different countries (in Russia, China, India and Qatar). Bitcoin fell to a record low recently following Chinese steps brought in against digital currencies.

Moreover, two Turkish cryptocurrency platforms closed in April 2021. The CEO of Thodex, Faruk Fatih Ozer, allegedly fled to Albania with more than two billion dollars of funds invested in his platform, with several of his alleged accomplices arrested in Turkey. A few days later, cryptocurrency platform Vebitcoin ceased its activities in Turkey and four of its employees were arrested. Investors could not access their funds placed in their digital wallets.

This case increased suspicion of the Turkish state in terms of cryptocurrencies traded on its territory. The government seems to fear that cryptocurrencies will decrease the value of, and confidence in, the fiat national currency. Officials started to adopt a negative stance towards the market, even while Turks were increasingly using the option for savings or investments.

The growing suspicion was apparent when the Turkish central bank implemented a Regulation on Prohibiting Payments with Crypto-Assets on April 16, 2021, to ban the use of cryptocurrencies as a means of payment for goods and services in Turkey. According to this law, the Turkish platforms are not allowed to propose any system for transferring cryptocurrencies into a fiat currency. However, the law does not impose a complete ban on cryptocurrencies in Turkey. Chairman of the Turkish central bank, Sahap Kavcioglu stated that the legislation was necessary to implement a balanced system for digital money.

On May 1, 2021, amendments were implemented via a presidential decree to the Regulation on Measures on the Prevention of Laundering Proceeds of Crime and the Financing of Terrorism. Cryptocurrency providers must report their activities to the Turkish Financial Crimes Investigation Board (MASAK) and provide customer identification. The law was adopted to avoid the use of digital money as a means of transaction in criminal or terrorist activities due to a lack of state control. Suspicious activities must be reported directly by the digital providers to MASAK regardless of the transaction amount and for all transactions of more than TRY75,000 (around $4,200).

National branches

In May, Turkish authorities were said to be working on a draft bill implementing more control on the cryptocurrency market and platforms. According to Turkish press reports, the law would target the securing of cryptocurrencies in the banking sector. The National Capital Market Board would issue permits for platforms to operate in the country. According to this law, a platform would need capital of $6.1mn to run their business. Foreign platforms would have to set up national branches that could be taxed in Turkey.

Analysts complained that the legislation would neither be favourable to the Turkish economy nor to the security of digital users. According to Unsal, the cryptocurrency market should be subject to controls under comprehensive legislation and Turkey was too late with its implementation; the proposed moves would not foster the development of Turkish investments.

Another market observer, Bora Erdama, said Turkey's cryptocurrency market has a very high potential at the international level: If Turkey becomes a good bridge in the crypto-assets ecosystem, there will be significant capital inflows into the country, never mind the worry of money flowing out of the country. Istanbul and Turkey will become a centre of attraction for the crypto-asset ecosystem." Protectionist measures adopted by the government could jeopardise this development, Erdamar said, adding that the decree implemented on April 16, 2021, preventing the use of cryptocurrencies as a means of payment, brought about the end of ventures for many start-up entrepreneurs.

Cryptocurrency expert Vedat Guven concluded that this step to prevent such use could dampen projects based on blockchain technologies in Turkey. Guven said cryptocurrency platforms were crucial in the development of this technology.

The Turkish government, meanwhile, tried to propose alternatives, controlled by the state, for the unregulated cryptocurrency market. The government talked of plans to shortly launch a national digital currency, the Digital Turkish Lira Cooperation Platform, regulated by the Turkish Central Bank. The national digital currency was to mitigate risks for investors in the digital market. The central bank would propose digital wallets and transfers based on blockchain technology.

Turkeys president, Recep Tayyip Erdogan, last year affirmed during a national youth meeting that he was leading a war against private cryptocurrencies. He said he would instead foster the development of the national digital currency. According to cryptocurrency expert Artem Deev, many countries were creating a national cryptocurrency to ensure control of private exchanges, perceived as competitors, and escape from regulation.

Deev added that the trend, seen in China and Russia, for instance, could provide a strategy to weaken the private cryptocurrency market in Turkey, clearing the way for to present state-sponsored digital assets as legitimate financial assets.

However, even given the negative events and publicity that have surrounded the private sphere cryptocurrency market in the past year, the use of the market is expected to continue to grow among the Turkish population. According to Sima Baktas, a Turkish expert in cryptocurrencies: Even mainstream TV channels talk about crypto now, and even when they show very bad news about crypto, Turkish people get more into crypto, because it appears they dont care about that bad news showing crypto as some kind of unreliable sector.

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Home of the humbled lira, Turkey's the biggest cryptocurrency market in the Middle East - bne IntelliNews

Although private digital currencies have rewarded some individuals and institutions, they are an unstable financial asset that can bring social risks and costs, the agency warned.

UNCTAD said their benefits to some are overshadowed by the threats they pose to financial stability, domestic resource mobilization, and the security of monetary systems.

Cryptocurrencies are an alternative form of payment. Transactions are done digitally through encrypted technology known as blockchain.

The use of cryptocurrency rose globallyat an unprecedented rate during the COVID-19 pandemic, reinforcing a trend that was already in motion. Some 19,000 are currently in existence.

In 2021, developing countries accounted for 15 of the top 20 economies when it comes to the share of the population that owns cryptocurrencies.

Ukraine topped the list with 12.7 per cent, followed by Russia and Venezuela, with 11.9 per cent and 10.3 per cent, respectively.

The first brief All that glitters is not gold: The high cost of leaving cryptocurrencies unregulated examines the reasons behind the rapid uptake of cryptocurrencies in developing countries, including facilitation of remittances and as a hedge against currency and inflation risks.

Recent digital currency shocks in the market suggest that there are private risks to holding crypto, but if the central bank steps in to protect financial stability, then the problem becomes a public one, UNCTAD said.

Furthermore, if cryptocurrencies continue to grow as a means of payment, and even replace domestic currencies unofficially, the monetary sovereignty of countries could be jeopardized.

UNCTAD also highlighted the particular risk that stablecoins pose in developing countries with unmet demand for reserve currencies. As their name implies, stablecoins are designed to maintain stability as their value is pegged to another currency, commodity or financial instrument.

For some of these reasons, the International Monetary Fund has expressed the view that cryptocurrencies pose risks as legal tender, the agency said.

The second policy brief focuses on the implications of cryptocurrencies for the stability and security of monetary systems, and to financial stability in general.

It is argued that a domestic digital payment system that serves as a public good could fulfil at least some of the reasons for crypto use and limit the expansion of cryptocurrencies in developing countries, said UNCTAD.

For example, monetary authorities could provide a central bank digital currency or a fast retail payment system, though measures will depend on national capacities and needs.

However, UNCTAD has urged governments to maintain the issuance and distribution of cash, given the risk of deepening the digital divide in developed countries.

The final policy brief discusses how cryptocurrencies have become a new channel for undermining domestic resource mobilization in developing countries, and warns of the dangers of doing too little, too late.

While cryptocurrencies can facilitate remittances, UNCTAD warned that they may also enable tax evasion and avoidance through illicit financial flows similar to a tax haven, where ownership is not easily identifiable.

In this way, cryptocurrencies may also curb the effectiveness of capital controls, a key instrument for developing countries to preserve their policy space and macroeconomic stability, the agency added.

UNCTAD has outlined several actions aimed at halting cryptocurrency expansion in developing countries.

The agency urged authorities to regulate crypto exchanges, digital wallets and decentralized finance to ensure the comprehensive financial regulation of cryptocurrencies.

Furthermore, regulated financial institutions should be banned from holding cryptocurrencies, including stablecoins, or offering related products to their clients.

Advertising related to cryptocurrencies also should be regulated, as is the case with other high-risk financial assets.

Governments are advised to provide a safe, reliable and affordable public payment system adapted to the digital era.

UNCTAD also advocates for global tax coordination regarding cryptocurrency tax treatments, regulation and information sharing.

Additionally,capital controls should be redesigned to take account of what the agency described as the decentralized, borderless and pseudonymous features of cryptocurrencies.

To hear UNCTAD's latest podcast which focuses on the highs and lows of the cryptocurrency world, click here.

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UN trade body calls for halting cryptocurrency rise in developing countries - UN News

A representation of cryptocurrency is seen in front of Binance logo in this illustration taken, March 4, 2022. REUTERS/Dado Ruvic/Illustration

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LIMA, Aug 10 (Reuters) - Binance, the world's largest cryptocurrency exchange, is seeing a surge in clients due to rising inflation and a historically strong dollar that has depressed emerging market currencies, an executive told Reuters on Wednesday, without disclosing numbers.

"Now that we are seeing inflation ramping up worldwide, we are seeing that more and more people are seeking cryptocurrency, like bitcoin, as a way to protect themselves from inflation," said Maximiliano Hinz, who heads Binance in Latin America, during an interview in Lima.

Hinz pointed to the example of Argentina, where annual inflation is at 90%. The country has grown into one of the company's top markets, he said, together with Brazil and Mexico.

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Argentina saw citizens pour savings into bitcoin this year despite a crash in cryptocurrency prices. read more

While El Salvador has made headlines for adopting bitcoin as legal tender, Hinz said other Latin American nations have yet to pass meaningful cryptocurrency legislation, although he does not necessarily consider that a bad thing for the company.

"Regulation is a framework, but it's not always negative that something isn't regulated," he said. "If something isn't banned, then it's legal."

Under President Nayib Bukele, El Salvador has made a massive bet on bitcoin, making it legal tender and buying more than $100 million worth of the cryptocurrency, which have lost about 50% of their value amid a broader cryptocurrency selloff this year.

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Reporting by Marcelo Rochabrun; Editing by Stephen Coates

Our Standards: The Thomson Reuters Trust Principles.

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Binance says it is winning crypto clients thanks to inflation - Reuters