Crypto News Roundup: July 21, 2023 📰

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21 Jul 2023

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Hello and welcome to another edition of Crypto News Roundup, where I bring you the latest and most important developments in the crypto space. In this article, I will cover:

The alarming rise of crypto-related home invasions in Canada
The closure of Coinbase Borrow lending program for retail customers
The introduction of a new crypto oversight bill by U.S. House Republicans
The $10 million investment by Binance Labs in cross-chain DeFi lender Radiant Capital
The launch of a permanent Digital Sandbox by the UK financial watchdog

Let’s dive in!

Crypto Thieves Target Canadian Homes 🏠

According to a warning published on the website of the Royal Canadian Mounted Police (RCMP), neighbourhoods in Canada are seeing a wave of home-invasion-style robberies specifically targeting victims who are “heavily invested in cryptocurrency.” The attackers reportedly gain access to the victim’s home by posing as “delivery people or persons of authority.” Once inside, the attackers rob the victims of “information that gives access to their cryptocurrency accounts.”

The RCMP said that these incidents have been reported across Canada, with some cases involving violence and firearms. The police urged crypto holders to be vigilant and cautious about sharing their personal information online or with strangers. They also advised crypto holders to use reputable and secure platforms for storing and transferring their digital assets, and to enable multi-factor authentication and encryption features.

The RCMP also asked anyone who has been a victim of such a crime or has any information about it to contact their local police or Crime Stoppers anonymously.

Source: https://decrypt.co/149475/canada-crypto-stolen-homes-police

Coinbase to Shut Down Lending Program ❌

Crypto exchange Coinbase is reportedly shutting down Coinbase Borrow for retail customers. The Borrow program allowed retail customers to receive cash loans using their Bitcoin as collateral. It also stated that existing loan holders have until November 20 to pay any outstanding balances on their loans. Users who fail to do so will have their BTC collateral sold to close the loans.

Coinbase stated,

“We have decided to fully close Coinbase Borrow for retail users effective November 20, 2023, in order to focus our resources on the products and services that our customers care about most. We have notified impacted loan holders and are taking extra measures to ensure a smooth transition for them, including providing a four-month loan repayment period and access to prioritized customer support through Coinbase One.”

Coinbase Borrow was launched in August 2020 as a way to provide liquidity and flexibility to crypto holders who did not want to sell their assets. However, the program faced regulatory challenges from the U.S. Securities and Exchange Commission (SEC), which threatened to sue Coinbase if it launched its Lend product, which offered 4% interest on USDC deposits.
Coinbase said that it will continue to explore new ways to offer yield-generating products to its customers in the future.

Source: https://www.coindesk.com/business/2023/07/20/coinbase-to-wind-down-coinbase-borrow-lending-program-over-coming-months

U.S. House Republicans Introduce Crypto Oversight Bill 🇺🇸

Key Republican members of the US House of Representatives have formally introduced a bill that establishes rules for oversight of crypto markets. The bill, which was previewed as a draft in June, seeks to regulate when and how crypto firms should register with the Securities and Exchange Commission or the Commodity Futures Trading Commission. It also provides a pathway for digital assets that start as securities to eventually be regulated as commodities.

The bill, titled “The Financial Innovation and Technology for the 21st Century Act,” is co-sponsored by Rep. Glenn Thompson (R-Pa.), Chair of the House Agriculture Committee, Rep. French Hill (R-Ark.), Rep. Dusty Johnson (R-S.D.), Rep. Tom Emmer (R-Minn.) and Rep. Warren Davidson (R-Ohio). The bill aims to create a clear and consistent regulatory framework for crypto that protects investors, fosters innovation and promotes U.S. leadership in the digital asset space.

Some of the key features of the bill include:

A definition of “blockchain” and “digital asset” to be included in the existing financial laws
A certification process for blockchains to be recognized as decentralized by the SEC
A disclosure regime for digital asset issuers to provide information about their project’s economics, development plan and risk factors
A registration process for digital asset intermediaries such as exchanges, broker-dealers and alternative trading systems
A classification of digital assets based on their functionality and characteristics, rather than the presence of an investment contract
A transition mechanism for digital assets that start as securities to become commodities if they meet certain criteria

The bill’s sponsors said that the legislation marks a significant milestone in the House Committees on Agriculture and Financial Services efforts to establish a much-needed regulatory framework that protects consumers and investors and fosters American leadership in the digital asset space.

Source: https://www.coindesk.com/policy/2023/07/20/us-house-republicans-introduce-crypto-oversight-bill-to-protect-investors/

Binance Labs Invests $10 Million in Cross-Chain DeFi Lender Radiant Capital 💰

Binance Labs, the venture capital arm of crypto exchange Binance, has invested $10 million in cross-chain lending and borrowing protocol Radiant Capital. The funds will reportedly be used for tech and product development, including expanding collateral and deployment on the Ethereum mainnet. Binance Labs stated that its participation in the funding round was part of its “commitment to supporting innovative projects that will lead the next era of DeFi in a chain-agnostic and user-centric manner.”

Radiant Capital is a DeFi protocol that allows users to deposit and borrow assets across different blockchain networks. It leverages the architecture of LayerZero Labs, another Binance Labs portfolio company, to enable cross-chain interoperability and liquidity. Radiant currently supports over 20 collateral options, including stablecoins, tokens and NFTs, and plans to expand to more EVM-compatible chains in the future.

Radiant’s native token, RDNT, functions as a utility and governance token of the protocol. Users can stake RDNT to earn interest, fees and voting rights. RDNT also enables flash loans, which allow users to borrow any amount of liquidity without collateral, as long as they repay it within one transaction.

Radiant’s founder, George Macallan, said that the investment from Binance Labs will help them achieve their vision of creating a seamless and accessible DeFi ecosystem for users across different chains. He added that Radiant aims to solve the liquidity problem in DeFi by providing a money market that connects users directly with each other through smart contracts.

Source: https://www.theblock.co/post/240713/binance-labs-10-million-cross-chain-defi-lender-radiant-capital

UK Financial Watchdog Announces Launch of Permanent Digital Sandbox in August 🇬🇧

The United Kingdom’s Financial Conduct Authority (FCA) has announced the launch of a Digital Sandbox aimed at supporting tech firms in the early stages of product development. In a July 20 announcement, the FCA said the Digital Sandbox will become available on a permanent basis starting on Aug. 1. The financial watchdog conducted two pilot programs of the initiative, which will be open to businesses, start-ups and data providers — including those involved in banking, investment, lending and payments.

A sandbox allows projects to operate in a testing environment to evaluate their products and services largely without unintended side effects impacting the real world. According to the FCA, the Digital Sandbox was aimed at helping innovative firms in their efforts to launch new products and services, as well as support economic growth and international competitiveness.

The Digital Sandbox will offer:

Access to synthetic and publicly available data assets to enable testing, training and validation of prototype technology solutions
An API marketplace where digital service providers list and provide access to services via APIs
An environment where applicants can access the data assets on-platform and develop and test their solution
A platform that facilitates an ecosystem of key organisations that will provide support and input to Digital Sandbox participants, such as incumbents, academia, government bodies, venture capital and charities
A space to enable regulators and other interested parties to observe in-flight testing at a technical level, to inform policy thinking in a safeguarded environment

The FCA said that it ran two pilots of the Digital Sandbox between October 2020 and March 2022. The first pilot focused on challenges impacted or exacerbated by the Covid-19 pandemic, such as improving access to finance for SMEs, detecting and preventing fraud and scams, and supporting the financial resilience of vulnerable customers.

The second pilot focused on testing and development of new products and services in the area of environmental, social and governance (ESG) data and disclosure. The FCA said that both pilots received positive feedback from participants and stakeholders, and demonstrated the value of collaboration and access to data in stimulating innovation.

The FCA also said that it will continue to work with other regulators, both domestically and internationally, to share best practices and learnings from the Digital Sandbox. The FCA’s Executive Director of Strategy and Competition, Sheldon Mills, said:

“The Digital Sandbox has proven to be a valuable initiative for both firms and regulators. It has helped to foster innovation, support regulatory compliance and ultimately benefit consumers. We are pleased to announce that the Digital Sandbox will become a permanent feature of our innovation work. We look forward to welcoming more firms to test and develop their propositions in a safe and efficient environment.”

Source: https://www.fca.org.uk/firms/innovation/digital-sandbox

Conclusion

That’s all for this edition of Crypto News Roundup. I hope you enjoyed reading about the latest developments in the crypto space and learned something new. If you have any questions or feedback, please feel free to leave a comment below. We would love to hear from you!

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