Payment Expert’s Blockchain Bulletin analyses how the world of blockchain is constantly evolving and having a major impact on the payment industry, with cryptocurrencies, NFTs and the metaverse revolutionising the space.
This week, Binance and Coinbase are looking to battle back against US regulators after being sued by the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) respectively.
Binance files dismissal motion against CFTC over regulatory questions
After being sued by the CFTC last March over alleged circulation of unregistered securities, amongst other claims, Binance has asked an Illinois judge to dismiss the lawsuit as it believes the regulator does not have “regulatory authority over spot trading”.
Binance believes that the first six charges handed out by the CFTC “do not apply to the foreign conduct alleged”, with an additional seven charges not meeting legal standards set out by its requirements.
The filing reads: “There is no dispute that the CFTC has no regulatory authority over spot trading even in the United States, let alone abroad.
“Despite 236 paragraphs of allegations – which followed a multi-year investigation in which defendants provided extensive information voluntarily – the CFTC’s complaint fails at the outset.”
SEC advised Coinbase to stop all crypto trading except Bitcoin
In a revealing statement to the Financial Times, Coinbase CEO Brian Armstrong revealed prior to the SEC’s lawsuit, the financial regulator advised the exchange to halt all crypto trading except for Bitcoin.
The pair are currently embroiled in a lawsuit after the SEC sued Coinbase after it is believed the exchange was circulating unregistered securities, which Coinbase has firmly denies.
Before the SEC issued Coinbase with 13 charges, Armstrong revealed: “They came back to us, and they said . . . we believe every asset other than bitcoin is a security.
“We said, well how are you coming to that conclusion, because that’s not our interpretation of the law. And they said, ‘we’re not going to explain it to you, you need to delist every asset other than Bitcoin’.
Addressing the scepticism around Worlcoin’s eyeball scanning solution
Speaking to Payment Expert on the proliferation of the polarising eyeball scanning security developed by Worldcoin, Daniel Fogg – CEO of IOV Labs, recognised both the rise in fears but also the opportunities it may provide to the overall AI ecosystem.
He said: “In terms of controversy, much of this stems from a lack of knowledge and understanding of the proposition as it is still in the early stages of rollout.
“Many people may be concerned regarding the security model or privacy implications of the orb, whilst others may be concerned that this is just another Silicon Valley big tech solution that they don’t want to trust by default. Most importantly, it’s an individual’s biometric profile on the line.”
Meta’s positive Q2 results brings Zuckerberg added confidence in the metaverse
Despite a volatile 2022, Meta CEO Mark Zuckerberg remains confident in the company’s plans to develop its metaverse and AI.
Meta’s revenue for Q2 2023 jumped by 11% year-over-year (YoY) to $32bn as the tech giant experienced a return to form, gaining double-digit growth for the first time since the end of 2021.
He stated: “Our investments in AI continue. We remain fully committed to the metaverse vision as well. We’ve been working on both of these two major priorities for many years in parallel now, and in many ways the two areas are overlapping and complementary.”
Digital Currencies at the heart of Optty and Triple-A partnership
Optty has embraced digital currencies, through a new partnership with Triple-A, adding cryptocurrency as a payment option on its platform.
As a hub connecting a robust global network of Buy Now Pay Later (BNPL) providers, this milestone marks the launch of Optty’s sixth payment architecture, further expanding viable payment options for merchants and convenience for their end customers.
Sorare enabled by Mangopay to facilitate Web3-fiat payments
Payment provider Mangopay has announced it will help facilitate fiat currency payments for Sorare users to make real-world transactions whilst interacting on the Web3 sports platform.
Sorare’s five million registered users will now be able to make payments in currencies such as the US Dollar (USD), Euro (EUR), and British Pound Sterling (GBP), in what has been hailed a ‘major milestone’ for the Web3 industry.
From early August, Cash Wallet will be available to all Sorare users as part of its Wallet System.