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By June, Indonesia hopes to open its national cryptocurrency exchange

The cryptocurrency exchange was supposed to be established by the end of 2022; however, several challenges prevented this.

 

A national cryptocurrency exchange is expected to launch in Indonesia by June this year, six months earlier than the country’s initial goal of December 2022.

 

At the beginning of Crypto Literacy Month in Jakarta on February 2, Trade Minister Zulkifli Hasan announced the revised target launch date while mentioning that the government is presently determining whether businesses fit their requirements to join the exchange.

 

Zulkifli asserts that the ministry’s crypto exchange may include all five active cryptocurrency exchanges currently registered with the nation’s regulatory authorities.

 

The ministry’s exchange would serve as a clearing house and custodian in the local cryptocurrency market, whereas these exchanges now facilitate all trades within the country.

 

A clearing house acts as a middleman to facilitate buyer and seller transactions. The movement of assets between the two parties would also be managed by it in its capacity as custodian.

 

The commerce minister urged the populace to wait for the national cryptocurrency exchange to be established, warning that doing so would bring chaos. Because most people are unaware of [crypto trading], the government does not want this to have a significant negative impact on the populace.

 

Indonesia had initially intended to launch its cryptocurrency exchange by the end of 2022, but it was postponed due to several challenges, as previously reported by Cointelegraph.

 

The Commodity Futures Trading Regulatory Agency, also known as Bappebti, now regulates the trading of crypto assets in the nation together with commodity contracts, but that authority will transfer to the Financial Services Authority if a national exchange is established.

 

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Crypto News

Bitcoin Maintains its $23,000 Level as Traders Await Fed Decision

After rallying over the weekend, Bitcoin and other cryptocurrencies were slightly lower on Monday, trimming gains. On Wednesday, the Fed is expected to decide interest rates by cryptocurrency traders as it is likely to trigger the next significant shift.

 

After briefly approaching $24,000 over the weekend, the price of Bitcoin has dropped by less than 1% in the last 24 hours to $23,250. After a ferocious run to start the year, the largest digital asset is still at its highest levels since last August.

 

Bitcoin surged by around 40% in a few weeks to reverse all losses following the market-shaking collapse of cryptocurrency exchange FTX in November.

 

The Fed’s rate decision on Wednesday is anticipated to be the next significant catalyst for equities and digital assets. Bitcoin is expected to follow the Dow Jones Industrial Average and S&P 500.

 

A macroeconomic backdrop of rising interest rates, which dampens demand for both types of risk-sensitive assets, has increased the correlation between cryptocurrencies and equities during the past year.

 

After a series of far higher rate hikes last year, the Federal Open Market Committee, It is generally expected that the Fed’s monetary policy committee would raise interest rates by 25 bps, or one-quarter of a percentage point.

 

 Investors will be looking for more accommodating language from the Fed, such as indications that the central bank may suspend rate hikes in March or perhaps start reducing rates later this year since the lesser rate hike has almost already been priced in.

 

Although it’s doubtful that Bitcoin and its competitors will make a significant rise until Wednesday, speculators vying for positions in the cryptocurrency derivatives market prior to the FOMC decision could result in some minor price changes.

 

Investors may want a genuine jolt of optimism from the Fed after the eye-popping run in Bitcoin this year to permit further gains for the cryptocurrency. An underwhelming Fed meeting can be seen negatively and cause at least a minor pullback.

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Crypto News

As BTC Surges through $23,500 Resistance, here is where BTC is Expected to go Next in Terms of Price

Recently, Bitcoin broke through the $23,500 barrier level and is currently climbing to new heights. Many investors are unsure of Bitcoin’s future direction as its price keeps rising. In this piece, we’ll look at a few things that might have an immediate impact on its price and speculate on where it might go.

 

Bitcoin started trading at $23,746 on January 30 and has experienced considerable volatility over the last day. It is currently traded for $23,238 and has decreased by about 0.92%.

 

In the same time frame, BTC/USD hit a maximum value of $23,784 and a minimum value of $23,110. However, throughout the previous week, it has still seen a general growth of more than 2%.

 

The difficulty of mining bitcoins reached an all-time high on January 29. The total difficulty rose from 37.59 trillion to 39.35 trillion due to this 4.68% rise in difficulty, setting a new record high.

 

The challenges involved in mining bitcoin have significantly increased recently by 48%. This is due to the measurement of difficulty that was recorded on January 21 of last year, which was 26.64 trillion.

 

By raising the level of difficulty, a blockchain becomes more secure since it makes it much more difficult for attackers to be successful in their attacks. Additionally, it is more difficult to mine new blocks as the mining difficulty rises compared to the overall hash rate.

 

Even if miners must put in more effort, the difficulty of mining Bitcoin rises as the network’s security improves. Additionally, anytime the number of miners rises, the network size ultimately increases, improving the long-term value of BTC/USD.

 

At $23,258 right now, the price of Bitcoin has dropped more than 1% in the previous day. Its market cap, which is an impressive $488 billion, puts it in first place in CoinMarketCap’s rankings, with a projected market volume of $26 billion.

 

The BTC/USD price is struggling to surpass the $24,000 resistance level in the 4-hour time frame and has since dropped to retest the $23,000 support level.

 

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Crypto News

Binance and Mastercard Collaborate to Introduce Prepaid Cryptocurrency Cards in Brazil

In collaboration with Mastercard, Binance has introduced a prepaid cryptocurrency card in Brazil, the cryptocurrency exchange announced on Monday.

 

According to a blog post, the card would be accessible to all Brazilian Binance users with a legitimate national ID. It would let them make payments and settle invoices with 13 cryptocurrencies, including bitcoin, ether, and Binance USD.

 

According to Binance, the card will have a 0.9% cost for each transaction involving cryptocurrencies and up to 8% cashback and fee-free ATM withdrawals.

 

A spokesman for Binance told CoinDesk that the product is now undergoing testing and “will be broadly available in the next weeks.”

 

The general manager of Binance Brazil stated in a news release that “Brazil is a very relevant market for Binance, and we will continue to invest in new services for local consumers, as well as contribute to the development of blockchain and the crypto ecosystem in the nation.” According to a statement by Binance, one of the top 10 markets worldwide is Brazil.

 

In comparison to the global average of 41%, Brazilian consumers claimed to have done at least one cryptocurrency transaction in the previous 12 months, according to a 2022 Mastercard survey quoted by Binance.

 

After making a comparable announcement in Argentina in August and collaborating with Mastercard, Binance introduced its card there. In August 2020, the company launched a comparable offering in the European Economic Area.

 

According to the news announcement from Marcelo Tangioni, president of Mastercard in Brazil, “Brazilians are keen to use cryptocurrency beyond an investment asset.”

 

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Crypto News

Following the Lender’s Bankruptcy, Alameda Seeks to Recoup $446 Million in Cryptocurrency Paid to Voyager

A new complaint claims that the defunct cryptocurrency trading company Alameda Research, a division of FTX founder Sam Bankman-former Fried’s empire, seeks to recover $446 million transferred to the bankrupt lender Voyager Digital before Alameda filed for bankruptcy.

 

Alameda repaid all of its outstanding loans to Voyager after the lender declared bankruptcy in July, claims a complaint made against Voyager Digital and HTC Trading on Monday. When Voyager asked for the payback of some of these debts, they weren’t due yet.

 

According to the bankruptcy petition, Voyager had ten distinct loan sheets with Alameda at the time of filing. For loans made to Alameda in the form of various cryptocurrencies, including bitcoin, dogecoin, ether, USDC, litecoin, and others, Voyager claimed it held FTT, an exchange token issued by FTX and SRM as collateral in a number of filings in September and October 2022.

 

In their filing on Monday, the trading shop’s attorneys stated that they had “been unable to determine whether Voyager held a valid and effective lien or security interest” in this collateral at any point in time or whether the “purported collateral” was actually connected to any of Alameda’s obligations.

 

Alameda requests that the transfers be deemed “avoidable preferential transfers” and that the court “grant Alameda no less than $445.8 million plus the value of any other avoidable transfers Plaintiff discovers,” in addition to any fees expended.

 

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Crypto News

The NFT Project Ordinals Debate Ignites the Bitcoin Community

The launch of the Ordinals protocol this month, which stores NFTs on the Bitcoin blockchain, is causing a rift between Bitcoin purists and others who believe the network is broad and diverse enough to support a variety of use cases, even if it means hosting meme-themed art.

 

The protocol behind Ordinals, according to its creator Casey Rodarmor, uses “inscriptions,” or arbitrary content like text or images that can be added to sequentially numbered satoshis, or “sats,” to create a one-of-a-kind “digital artifacts” that can be held and transferred across the Bitcoin network as any other Sat.

 

Without Bitcoin’s 2017 Segregated Witness update and the more recent 2021 Taproot upgrade, Ordinals would not be viable in its current form. By creating a block field to store “witness data,” such as transaction signatures and public keys, SegWit made it possible to grow Bitcoin. Developers were forced to set size restrictions because of potential security flaws.

 

When Taproot emerged, it allayed those security worries, enabling the old SegWit limitations to be lifted and opening the door for massive NFT data storage on-chain. It turns out to be the ideal base for Ordinals.

 

The new protocol has revived the longstanding argument about whether Bitcoin should be used for non-financial purposes. The anonymous Bitcoin creator Satoshi Nakamoto responded emphatically “no” in 2010.

 

Opponents of the protocol claim that Ordinals will crowd blocks and raise transaction rates to compete with conventional payment transactions. Rodarmor is indifferent.

 

In an interview, Rodarmor responded, “To that I say, well, there’s this fee market pricing mechanism that bitcoin has, that enables people to pay the number of fees according to how valuable executing the transaction is to them. “And that holds for both written records and financial transactions.

 

Miners choose the transactions with the highest fees because the fee market already considers how much individuals pay for transactions and how much they believe they are worth. Therefore, everything sort of falls into Bitcoin’s security and incentive paradigm.

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News

Crypto Exchange Digital Surge Arises As A Survivor of FTX Effect

When the Australian cryptocurrency exchange failed and FTX’s Australian subsidiary entered the administration, $23.4 million in digital assets were trapped on that platform.

 

Exchange for cryptocurrencies in Australia Despite having millions of dollars worth of digital assets entrusted to the now-defunct FTX crypto exchange, Digital Surge has narrowly escaped collapse.

 

A five-year rescue plan for Digital Surge was authorized by its creditors on January 24 local time. It intends to eventually reimburse its 22,545 consumers whose digital assets have been frozen on the platform since November 16 while enabling the exchange to continue operating.

 

On December 8, the day the firm entered administration, the exchanges’ directors sent the rescue strategy to clients for the first time through email.

 

According to the “Deed of Company Arrangement,” the Australian cryptocurrency exchange would receive a loan from a related company, Digico, for $884,543 (1.25 million Australian dollars), enabling the deal to carry on with trading and operations.

 

Administrators at KordaMentha said that the exchange’s quarterly net profits would be used to pay creditors over the following five years.

 

According to a Business News Australia report dated January 24, “Customers will be compensated in cryptocurrency and fiat cash, based on the asset composition of their specific claims,” KordaMentha stated.

 

When Cointelegraph contacted Digital Surge, it was confirmed that a resolution supporting the rescue plan had been approved at the second meeting of creditors on January 24.

As the administration process with KordaMentha moves through, “we anticipate that additional communication will be delivered to all consumers,” it continued.

 

The Brisbane-based cryptocurrency exchange, which had been running since 2017, was one of the victims of FTX’s demise in November. Withdrawals and deposits were frozen just days after FTX declared bankruptcy and FTX Australia was put under administration.

 

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Crypto News

Saudi Central Bank is still Examining CBDC, but no Decision has been made regarding the Deployment

Although it has not yet announced a deployment, the Saudi Central Bank is ceasing its investigation of Central Bank Digital Currencies.

 

The bank announced it was working on a project phase that “focuses on domestic wholesale CBDC use cases in conjunction with local banks and fintechs” in a bulletin published on January 23.

 

It did, however, disclose that there had yet to be a decision made with regard to the Middle Eastern country’s introduction of such a digital currency.

 

SAMA looks at the market viability, economic impact, and potential uses of a CBDC-based payment system for a state-issued digital currency. In addition, policy, legal, and regulatory aspects will be reviewed.

 

The initiative is a component of Saudi Vision 2030, a strategy to diversify the Saudi economy, reduce the nation’s dependency on oil, and boost public service sectors like infrastructure, tourism, education, leisure, and health.

 

According to the SAMA governor, Local banks and payment businesses would be significantly involved in the CBDC initiative and implementation.

 

In 2019, SAMA carried out the CBDC experiment known as “Project Aber” with success. The Central Bank of the United Arab Emirates collaborated to investigate the potential benefits of blockchain technology for international payments.

 

In late 2020, the banks published a results report that a dual-issued CBDC was technically feasible for international payments and presented “considerable gain in architectural robustness over centralized payment systems.”

 

The Saudi CBDC’s technology was not disclosed in detail, but according to CBDC Tracker, it is built on the Hyperledger Fabric developed by the Linux Foundation.

 

According to the American think tank Atlantic Council, nations have CBDCs ultimately deployed at this time, while 17 more are conducting pilots. With the exception of Nigeria, most of those who have debuted are in the Caribbean.

 

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Crypto News

Oral Arguments in Grayscale’s Complaint against the SEC will be Heard in Court in March

Oral arguments in Grayscale Investment’s complaint against the Securities and Exchange Commission about the latter’s decision to reject Grayscale’s BTC tickers down $22,668 spot exchange-traded fund are scheduled to be heard by the United States appeals court.

 

On March 7, the District of Columbia Court of Appeals will hear arguments from both sides, per a court motion submitted on January 23.

 

Oral arguments are speeches made by lawyers outlining why their clients should prevail in court. Each side is given equal time to address the judge directly and respond to his or her questions.

 

Craig Salm, the chief legal officer at Grayscale, stated in a tweet on January 24 that the newly filed motion was “good news” as they had previously anticipated oral arguments to be set.

 

According to the motion, the Grayscale case argument panel’s makeup will be made public on February 6- 30 days before the argument’s scheduled date, and the length of the argument will be determined in a subsequent order.

 

Following the SEC’s denial of its request to transform its $12 billion Grayscale Bitcoin Trust into a spot-based ETF, Grayscale filed a lawsuit against the agency in June.

 

Grayscale claimed in a reply brief submitted earlier this month to the D.C. Court of Appeals that the SEC had behaved arbitrarily in treating spot-traded ETFs differently from futures-traded products and that it had overstepped its bounds by rejecting Grayscale’s request for a Bitcoin ETF.

 

In an interview, the CEO of Grayscale emphasized a related topic: “It’s critical to emphasize the importance of the role that regulators like the SEC play in protecting investors. They are not here to advise investors on what to invest in. They are there to ensure that all necessary disclosures are made, so investors know all associated risks. ”