Cryptocurrency regulation in the United States had had its twists and turns. It has been evident that the US Government has had its hands full at both Federal and State levels on the issue of cryptocurrency regulation and how best to handle it.
E-Crypto News caught up with Ben Weiss, Chief Operating Officer (COO) at CoinFlip about this. CoinFlip and the Blockchain Advocacy Coalition (BAC) in California had pulled together their efforts to support a new resolution AB-2150 in the California assembly. The bill introduced by ASM. Ian Calderon is the start of a process that will create a new framework for cryptocurrencies and other digital assets. Here is what Ben had to say.
Ben Weiss, Chief Operating Officer (COO), CoinFlip
- In your opinion why do you think that the US Federal Government is slow in creating a regulatory framework for cryptocurrencies?
Right now, there is a somewhat justified skepticism of technology. Congressional hearings have shown us both that Americans cannot trust their data to the current reigning tech companies and that many people in Congress don’t have a deep understanding of how social media works. Given that digital assets are much more complex, it’s unsurprising they have been slow to develop a framework. The industry needs to work together to push for progress both at a state and federal level.
2. In a nutshell, what are the basic elements of the AB-2150 Bill?
This bill would require the Department of Business Oversight to conduct a study to determine the feasibility of enacting in California a measure equivalent to the Proposed Securities Act Rule 195 and report its findings to the Legislature. The bill would require the study to evaluate potential benefits and costs of the exemption to the state.
3. How can Creating a Statewide framework for the regulation for cryptocurrencies and their underlying technologies protect consumers and help cryptocurrency projects at the same time? How can a balance be struck?
The biggest issue with current regulations is a lack of clarity. By developing a straightforward framework, governments encourage investment and industry growth. Creating strong consumer protections will keep bad actors from competing with legitimate products and help the crypto industry gain legitimacy in the general public’s eyes.
4. How has the current uncertainty concerning digital assets within the United States affected progress and innovation?
According to research done by the Blockchain Advocacy Coalition, the United States has lost nearly half its market share of the crypto industry since 2012. Companies have been choosing to domicile in Switzerland, Singapore, Malta, and other countries. Anywhere with a more straightforward regulatory framework.
5. In your opinion do you think that the Chinese are ahead of everyone else when it comes to creating a framework for digital assets?
The Chinese Government has undoubtedly made growing their native blockchain industry a considerable priority.
The CCP recently unveiled their digital yuan. However, this digital currency represents a much more centralized approach to implementing blockchain technology. The nationwide implementation of a distributed ledger to improve their financial sector still leaps and bounds ahead of the current U.S. initiatives. Along with their native digital currency, China has made substantial investments into mining operations for more decentralized cryptocurrencies like Bitcoin, notably removing mining operations from the CCP’s list of “undesirable activities.”
6. What benefits do you think digital assets and their technologies can bring to the California economy?
It’s a multibillion-dollar market that can provide better financial services. So really, two things. The first is an economic benefit the industry can bring if adequately regulated, including jobs and tax revenue. The second is for consumers. Institutional finance has not provided access to everyone and is still discriminatory. We provide financial services to unbanked or underbanked customers and believe that is the future of crypto- empowering more people with greater access to services by removing intermediaries.
7. In your opinion do you think that we will be seeing greater adoption of digital assets and their technology? Please state your reasons why?
Yes, and it’s happening right now, digital assets and blockchain technology are in the process of being integrated with legacy systems.
U.S. legislators have been discussing the implementation of a digital dollar throughout the year because of the bungled COVID-19 stimulus rollout.
In March, while debating what became the CARES Act, Congressional leaders considered creating a federally regulated digital currency and sending payments to digital wallets held at the Federal Reserve. It is easy to see why the idea was appealing: Digital payments are fast and safe. Setting up no-fee digital wallets for consumers could help get stimulus funds into the hands of all Americans more efficiently than the current banking system can.
The digital dollar was stripped from the final version of the CARES Act, but the idea is not dead. Congresswomen Rashida Tlaib (D-MI) and Pramila Jayapal (D-WA), included mention of a “digital public currency wallet system,” which could be developed by 2021, in another stimulus bill they introduced recently.
The technology has clear benefits, such as speed, transparency and immutability. New products like P2P loans on the blockchain and decentralized financial services create options outside the traditional banking system. Currently, we’re just at the beginning of the adoption cycle, and we look forward to seeing further participation.
8. What do you think is the way forward for the Commodity vs. Security dilemma for certain digital assets? How can this be resolved?
There needs to be a taxonomy, with clear definitions for what is a security and whats not. That’s why we are proud to support AB-2150, which would help California create a clear regulatory framework and give the state time to study these products and create clear definitions.
9. In your opinion do you think that other states within America be able to look past political differences and copy California’s model should the AB-2150 proposal get passed?
Yes, I hope the work we’ve been doing here serves as a template for other states.
10. Do you think that the United States will still lead in the digital assets field in the next three years? Please explain your reasons?
I think we will continue to lose businesses and innovation to places like Singapore and Switzerland unless we create a better regulatory environment here. We are definitely at risk of falling behind globally, and other countries have invested time and money in growing their crypto industries. I think we can still lead, but we need to start working with our policymakers to make that happen.
Where can you find the lowest fees on the crypto exchanges?
A trader in any market, be it stocks, currencies or cryptocurrencies that are currently trending, is surrounded by a multitude of additional costs. These are all kinds of commissions, spreads, swaps, etc. And if you plan your trades incorrectly, such costs can “eat up” the lion’s share of profits or even reduce them to zero (see our crypto currency converter for comparison).
Fees on cryptocurrency platforms
When using the services of a cryptocurrency exchange, a trader has to pay a number of commissions. The most common types of these on the trading floor are:
1. Transaction Fee. This is the most common commission that is charged for deposits or withdrawals at the exchange.
If a cryptocurrency exchange only supports the deposit or withdrawal of cryptocurrencies, then the trader only pays the commission charged by the miners for such transactions. The amount of the commission is usually insignificant in this case.
For transactions with fiat currencies, you have to pay a commission for the use of the payment system. At the same time, the amount of the commission varies depending on the system chosen (bank transfer or something else). In addition, the degree of verification of the merchant account usually also affects the amount of the commission.
2. Commission for closing a trade. This commission on cryptocurrency exchanges is calculated directly when trading, when placing an order. Usually the level fluctuates in the range of 0.1-0.25%, but on some platforms it can even be more than 1% of the trading volume.
Maker and taker
A maker is a trader who opens sales transactions. The name comes from the English word “to make” (to do something). It is assumed that the maker brings his assets to the stock exchange, that is, “makes the market”.
A taker is a trader who buys something. It is assumed that the taker reduces the liquidity of an asset class on the market because after the purchase the asset moves to an external account and is therefore no longer on the market. is available.
Since the maker provides liquidity and the taker takes it away, the amount of the commission for the maker is usually lower than for the taker.
However, there are cryptocurrency exchanges where there are no commissions at all for placing orders. Such sites are becoming increasingly popular, but the liquidity in their trades often leaves a lot to be desired. In addition, to compensate for the lack of trading commission, such sites often charge excessive transaction fees.
Cryptocurrency platforms with minimal fees
The following platforms differ from crypto exchanges in that they have minimal commissions:
ü Binance has the lowest fees among the most popular platforms – at 0.1%, and if you use the exchange’s own tokens, they are even lower.
ü On the HitBTC website, the commission for placing an order for both the maker and the taker is 0.1%.
ü On Bitfinex, the trading commission for the maker is 0.1% and for the taker 0.2%.
ü On io, a maker pays between 0% and 0.16% for placing an order, for a taker the commission is between 0.1% and 0.2%.
ü There is no trading commission for makers on the GDAX and itBit platforms. For takers it is 0.25%.
ü On the Livecoin exchange you will find an option with a commission-free deposit in fiat currency (via the capitalist system). When the trading volume is small, the trading commission is 0.18%.
Under the supervision
There is a wide variety of cryptocurrency platforms offering digital asset trading – from humble exchanges that focus on the local market segment and have different reputations to the top giants that are analogous to the NYSE, LME or the NASDAQ are in the cryptocurrency world. Therefore, every trader can choose an exchange with acceptable commission fees for himself. We wish you every success in such an exciting business as trading in cryptocurrencies.
Capitalizing on Blockchain’s Promise, Unicly Delivers NFT Fractionalization
Unicly’s decentralized and permissionless protocol empowers the community to fractionalize, combine, and trade non-fungible token collections through sharding, improving overall NFT accessibility and fungibility through its novel design.
Accompanying Unicswap DEX Attracts Millions In Liquidity
Non-fungible tokens have become all the rage as platforms onboard high-profile artists, entertainers, and evangelists seeking a new way to monetize their collectibles, creations, and works of art.
Yet, the eye-popping auction figures aside, NFTs represent one blockchain area that largely remains inaccessible to wider audiences as surging prices concentrate overall ownership. Moreover, this nascent market’s dynamics don’t correspond to the fungible token market characterized by high liquidity among popular tokens.
By definition, a non-fungible token is not designed to be easily exchangeable. Because an NFT is unique, it ordinarily has a single buyer, contributing to an absence of market depth and almost no real-time liquidity. Accordingly, building an efficient secondary market is difficult, especially given that NFTs all have different values and varying levels of demand.
Despite these very real obstacles, Unicly, led by pseudonymous founder 0xLeia, has unleashed a platform that can fractionalize NFT ownership. Besides granting NFT holders a new channel for monetizing their existing NFT holdings, the protocol can provide liquidity to whitelisted collections while promoting more widespread adoption and participation.
Transforming Non-Fungible into Fungible
Unicly has developed an innovative approach for improving NFT fungibility. Unlike other projects in the space, this anonymous, self-funded initiative has introduced sharding to the equation. Sharding effectively splits a blockchain network into multiple parts to process transactions quicker while adding scalability.
In Unicly’s case, each NFT gallery can be a shard, distancing itself from other competing solutions which shard each NFT individually. The new protocol will allow users to create and fractionalize NFT collections from NFTs minted in either of Ethereum’s ERC-721 and ERC-1155 standards. Each collection is independently named and configured before settings, including token supplies and tickers, are determined for each gallery.
Once the corresponding NFTs are moved from a user’s wallet to smart contracts, uTokens (with the ticker mentioned above) are issued. After a preset percentage amount of uTokens are staked, the collection is unlocked for bidding.
Building Up NFT Liquidity
Secondary market liquidity has been the Achilles heel of NFT trading platforms, but Unicly has devised a cunning answer where others have failed. Taking a page out of decentralized finance’s book, the platform has introduced Unicswap, a fork of the popular Uniswap protocol. This AMM DEX helps users stake their uTokens and other cryptocurrencies to farm UNIC, the native Unicly token, through liquidity pooling.
Since unveiling the mainnet just days ago, the platform has already garnered significant popularity. According to figures, Unicswap attracted $3.5 million worth of liquidity to whitelisted pools in just four days. Additionally, 24-hour volume of $1 million puts competition SuperRare squarely in Unicly’s sights. After reaching nearly one-quarter of the competing platform’s monthly transaction volume in mere days, the total capitalization of NFTs in Unicly’s marketplace has now topped $20 million.
Proving beyond a doubt that its model is valuable, some significant collections have already joined the platform. uMask, a collection of 85 hashmasks, has reached a value of approximately $16 million, marking a 16-fold increase in the valuation from its original listing at $1 million. The first gallery listed on the platform, uUNICLY experienced similar exponential growth after listing 3 branded NFTs, rising from $300 to an astounding $180,000.
Another gallery, titled uLEIA, was built as an homage to the anonymous founder of the protocol by combining 0xLeia’s profile picture with AI-generated content. The platform has also appealed Chris McCann, a National Geographic award-winning photographer who listed his uCM collection of NFTs and other noteworthy collections from DokiDoki, MoonCats, WAIFU, and Nubians.
Taken together, Unicly’s fresh approach to NFTs is already demonstrating that a better model for community engagement and egalitarian participation exists, thanks in large part to sustainable incentives and valuable user-centric features.
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