CRC Blockchain Industry Commentary #4
Cryptocurrency exchange Binance has joined the governance council of Klaytn, a public blockchain network by South Korean Internet giant Kakao’s subsidiary, Ground X. Binance is the first blockchain firm to join the council, Kakao announced Monday, adding that the other 24 members of the council include enterprises such as LG Electronics and UnionBank of the Philippines.
CRC Commentary: Based on the rumors, Binance also applied to become a member of the Libra Association. We don’t know how is that process going or even is it true or not but as one of the biggest cryptocurrency exchanges in the world, it definitely makes sense for Binance to get involved in these flagship projects. Binance’s importance is that currently, we don’t know how much Klaytn or Libra will be integrated into the existing cryptoasset ecosystem. It is also likely that these projects will create their own closed ecosystems and there won’t be a significant user movement from the traditional world to the crypto world. However, the sole existence of Binance makes is much more likely that these two worlds will merge with each other.
The Commodity Futures Trading Commission (CFTC) chairman Heath Tarbert confirmed that a security can turn into a commodity and vice versa. Tarbert made this remark on Monday at DC Fintech Week, when asked about a comment he made earlier this month that ether is not a commodity. At the conference, Tarbert emphasized that the Securities and Exchange Commission (SEC) is the entity that determines when something is a security, while the definition of commodities, which fall under the CFTC's jurisdiction, is broader.
CRC Commentary: The SEC has recently initiated crackdowns on initial coin offerings (ICOs) of tokens that it deems as securities. Earlier this month, the regulator filed an emergency action against Telegram and TON Issuer for failing to register the sale of their Gram tokens, which the SEC regarded as securities. This filing follows a settlement between the SEC and Block.one, the firm behind the EOS blockchain, for conducting an unregistered ICO. This explanation is important mainly because it is a warning to any cryptoasset(even those that are not deemed as securities such as ETH and BTC) that they should maintain their decentralized nature forever, not only for the sake of decentralization but also for the sake of regulatory approval. Another good take is that it is still not clear what is seen as decentralized in the eyes of SEC to be regarded not as a security.
3) Binance.com to add fiat pairs; starting with Russian rubles ‘in about two weeks’
Binance.com is soon adding support for fiat trading, starting with the Russian Ruble. Speaking in Moscow, Binance CEO CZ said that in “about two weeks,” Binance.com should have support for Russian rubles. Last week, euro and British pound pairs were quietly added to Binance’s API
CRC Commentary: Last week, we have witnessed Binance opening their P2P trading in China through payment systems such as Alipay and Wechat. I’ve mentioned that it is very likely that this P2P system won’t stop in China and will be implemented in other markets as well. Here we are and Binance is announcing Russian Rubles P2P trading on their platform. I think many more currencies are on the way and I see Turkish Lira as a strong candidate for that. All that is interesting because rather than following the Huobi’s cloud model, through which Huobi launched several exchanges around the world such as Huobi Russia and Huobi Korea, Binance is going through integrating these markets to their main platform. It will be interesting to see how that model plays out.
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