Binance Secures Dubai License Amid Record Bitcoin Halving Searches; US Senators Propose Stablecoin Legislation
Summary:
Binance obtains a regulatory license to operate in Dubai following the relinquishment of voting rights by co-founder Changpeng Zhao in the local entity. Google searches for "Bitcoin halving" hit record levels, predicted to double last halving's interest. Meanwhile, U.S. senators Cynthia Lummis and Kirsten Gillibrand introduce a new stablecoin legislation aiming towards clearer regulations and banning unbacked, algorithmic stablecoins.
Binance, the leading cryptocurrency exchange globally, has finally secured a regulatory permit to operate in Dubai. This achievement became possible only after Changpeng Zhao, the exchange's co-founder, relinquished his voting rights in the local branch of Binance. Meanwhile, internet searches regarding Bitcoin halving have soared to an unprecedented height. Additionally, a stablecoin bill was recently proposed by two senatorial figures in the U.S.
Richard Teng, CEO of Binance, revealed that the major cryptocurrency exchange had been granted the Virtual Asset Service Provider (VASP) license in Dubai. The license was granted after an agreement was reached that Changpeng Zhao would surrender his voting authority in Dubai FZE, the local Binance entity. The mandate was part of the Virtual Assets Regulatory Authority (VARA) endeavour to avoid any conflicts with recent U.S. settlement requirements that led Zhao to resign as CEO. Even though he has given up his voting rights, Zhao remains the ultimate beneficial owner of Dubai FZE.
As Bitcoin's halving is set for April 20, Google searches for "Bitcoin halving" have spiked significantly. The interest for this search term, according to Google Trends data, is at a record high, more than two times than what it was in the last halving in 2020. Nigeria, the Netherlands, Switzerland, and Cyprus reportedly showed the highest interest.
On the legislative side, U.S. senators Cynthia Lummis, a Republican, and Democrat Kirsten Gillibrand, have teamed up to propose a new bill regulating stablecoins. The bill, called Lummis-Gillibrand Payment Stablecoin Act, aims to establish a clearer regulation for payment stablecoins, explicitly stating that unbacked, algorithmic stablecoins should be prohibited. The senators are confident that this crucial legal effort will earn broad support within the Senate and the House due to its importance for safeguarding the U.S. dollar's dominance and promoting responsible innovation while combating money laundering and related illegality.
Previous collaborative efforts in crypto-related regulation between Gillibrand and Lummis include their work to define the respective roles of the Securities and Exchange Commission and Commodity Futures Trading Commission in the regulation of cryptocurrencies.
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Published At
4/18/2024 3:56:38 PM
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