Crypto Flipsider News – Visa Proposes Automatic ETH Payments; Coinbase Crypto Regulation; Binance Buys Tokyocrypto; BlockFi Files to Return Funds; Dogecoin Tops Coinbase

Read in the Digest:

Visa proposes automatic ETH payments using layer-2 solution StarkNet

Coinbase CEO outlines “realistic blueprint” for global crypto regulation

Binance completes acquisition of trading firm, Tokyocrypto, cuts 58% of jobs

Bankrupt crypto lender BlockFi files motion to return frozen crypto to users

Coinbase’s market cap falls below Dogecoin (DOGE) by $2 billion

Visa Proposes Automatic ETH Payments Using Layer-2 Solution StarkNet

Global credit giant Visa has released a proposal to allow Ethereum holders to set up automatic payments after conducting research on smart contracts and programmable payments.

In a December 20th blog post, Visa explained a concept that would allow Ethereum holders to automate payments from self-custodial crypto wallets, similar to what is available on traditional bank accounts.

If successfully developed, the move would allow recurring payments to be conducted entirely over blockchain networks. Visa proposed developing the option on the Ethereum layer-2 network, StarkNet.

According to Visa, a unique “account abstraction” method is necessary for self-custodial wallets to set up automatic recurring payments on StarkNet as existing smart contracts do not support such features.

Flipsider:

Visa has not stated if the proposed automated payment will be integrated into any of its already offered crypto services.

Why You Should Care

Visa has continued to innovate in crypto despite the massive market slump, as the firm believes it will become the future of payments.

Coinbase CEO Outlines ‘Realistic Blueprint’ for Global Crypto Regulation

In a blog post titled, “Regulating Crypto: How we move forward as an industry from here,” Coinbase CEO, Brian Armstrong, has proposed regulating stablecoin issuers, exchanges, and custodians to provide legislative clarity.

Armstrong calls stablecoins the foundation for a “new era of innovation in financial services.” He adds that they should be regulated under standard financial services laws and non-banks shouldn’t issue them without a fractional reserve.

According to the Coinbase CEO, “additional transparency and disclosure” checks are needed for centralized actors because humans are involved. He hopes that the implosion of FTX “will be the catalyst we need to finally get new legislation passed.”

While Armstrong states that regulating centralized entities is the way forward, he says decentralized finance (DeFi) should be allowed to flourish as their open-source code and smart contracts are “the ultimate form of disclosure.”

Flipsider:

Coinbase’s Lory Kehoe has also argued that the regulation of the crypto industry will lead to standardization, which will drive the adoption higher.

Why You Should Care

Armstrong argues that regulating cryptos will help restore trust and move the industry forward after the recent FTX collapse.

Binance Completes Acquisition of Trading Firm, Tokyocrypto, Cutting 58% of Jobs

Amidst the growing concerns surrounding Binance, the world’s largest cryptocurrency exchange has finalized its acquisition of Tokyocrypto, the third licensed Asian cryptocurrency exchange.

On Monday, December 19th, Binance’s CEO, Changpeng “CZ” Zhao confirmed via a tweet that Binance had become the largest shareholder in Tokyocrypto. Binance’s first investment in the Indonesian crypto exchange came in 2020.

According to Pang Xue Kai, CEO and co-founder of Tokyocrypto, the move to sell the exchange to Binance came after careful consideration and deciding to “utilize Binance’s capabilities to build a further physical trading platform for crypto assets.”

As part of the acquisition, Kai will be stepping down as the CEO of Tokyocrypto but will remain on the company’s board. However, the company confirmed that it will retain the same name after the acquisition.

Flipsider:

Following the acquisition, Tokyocrypto has announced a downsizing and is set to reduce its staff size by 58%.

Why You Should Care

The acquisition of regulated cryptocurrency exchanges will aid Binance’s expansion into the Asian market.

Bankrupt Crypto Lender BlockFi Files Motion to Return Frozen Crypto to Users

Cryptocurrency lending platform, BlockFi, which filed for chapter 11 bankruptcy on November 28th, has filed a motion in a United States Bankruptcy Court to return frozen assets to its customers.

The motion filed in the District of New Jersey on December 19th seeks authority from the court to honor client withdrawals from wallet accounts that have been frozen on the platform since November 10th.

In a statement sent to affected customers, BlockFi noted that “clients unambiguously own the digital assets in their BlockFi Wallet Accounts.” The motion also seeks to update the user interface to properly reflect transactions as of the platform’s pause.

Flipsider:

BlockFi explained that this motion will not impact withdrawals or transfers from its Interest Accounts, which remain paused at this time.

Why You Should Care

BlockFi’s bankruptcy proceedings appear to be progressing faster than those of the Celsius Network, a lending platform that filed for bankruptcy five months ago.

Coinbase’s Market Cap Falls below Dogecoin (DOGE) by $2 Billion

The market cap of Coinbase (COIN), America’s biggest cryptocurrency exchange, has fallen $2 billion lower than that of the popular meme coin Dogecoin, in what has been a rough year for the crypto exchange.

At the time of this writing, the market cap of Coinbase Global, the first publicly listed crypto exchange in the U.S., stands at $7.98 billion, while the leading meme coin has a market cap of $9.9 billion.

Coinbase’s recent plunge in value comes as the highly volatile U.S. equity market suffers its fourth consecutive day of decline. Over the last five days, the value of COIN has fallen by 23.84%, compared to Coinbase’s 15%.

With cryptos enduring one of the worst winters yet, the value of COIN has dropped by 86% since the start of 2022. COIN is currently valued at $35.17, despite trading above $251 at the start of the year.