crypto transactions

Bitcoin Lightning Network Would be Practical for Small Payments than Debit Cards, Morgan Stanley Says

The Bitcoin Lightning Network attracts fees close to zero. It becomes more practical to use it when undertaking small payments than a debit card, according to leading investment bank Morgan Stanley.

As a layer two scaling solution on the BTC network, the Lightning Network (LN) boosts the blockchain’s capacity to undertake transactions more efficiently through micropayment channels.

Therefore, transactions on lightning networks are more readily confirmed, cheaper, and faster than that processed on-chain or Bitcoin mainnet (layer one).

With more than 85% of sales in the United States happening in shops compared to online, Morgan Stanley believes partnering with physical stores would play an instrumental role in boosting Bitcoin as a medium of payment.

As a result, the Lightning Network is expected to bridge the gap based on its low transaction fees. An analysis of the Bitcoin Lightning Network recently noted:

“Roughly a year ago the Lightning Network took off on Bitcoin. The on-chain transaction fees instantly started to go down and remained low ever since. Growing number of transactions sent at lightning speed with rock-bottom fees both on-chain and off-chain.”

Source: Blockchain.com

According to Arcane Research, the Lightning Network continues to gain steam because it recorded a 410% year-over-year growth.

Arcane Research also noted that the Lightning Network could radically change the business model of content providers in gaming, video, audio, and many more categories by providing a structure where continuous micropayments were made.

Meanwhile, merchants on Shopify, a global e-commerce giant, were recently given the option to receive off-chain payments through the Bitcoin Lightning Network after sealing a deal with Strike, a digital payments platform.

Indian Banks Seeking Clarity from NPCI on the Use of UPI for Crypto Transactions

Banks in India have reached out to the National Payments Corporation of India (NPCI) – a government agency under India’s Central Bank Reserve Bank of India in charge of operating retail payments and settlement systems in India – seeking clarity on the relationship between cryptocurrencies and the country’s Unified Payments Interface (UPI) platform.

Local banks held a meeting recently to ask NPCI to issue a formal directive on the curbs on the use of the UPI payment methods for buying and selling digital assets.

The move came after Coinbase, the US-based crypto exchange recently launched its crypto trading services in India and its CEO, Brian Armstrong announced that the exchange would accept UPI payments for crypto transactions.

Coinbase officially launched its trading services in India on April 7. Thereafter, it stated that it would allow its Indian users to buy cryptocurrencies through the UPI system. This landed Coinbase in trouble with the NPCI, as the firm came under the regulator’s scrutiny. Shortly after, NPCI issued an official statement clarifying that it is not aware of any cryptocurrency exchange using UPI in the country.

After NPCI’s clarification, all major crypto exchanges in India, including billion-dollar startups CoinSwitch Kuber and CoinDCX, disabled UPI payments on their platforms. Major Indian banks also reportedly halted all net banking options for crypto transactions.

Banks now have asked the NPCI for official instructions regarding the next step on the use of the UPI method for cryptocurrency transactions. However, reports show that NPCI is unlikely to issue any of such directives soon.

NPCI is the regulatory body that owns and operates the Unified Payments Interface (UPI), an instant real-time payment system in India. The regulator is responsible for approving the participation of prepaid payment instrument issuers (PPIs), third party application providers, payment service providers, and customer banks in UPI.

Crypto Confusion in India

In May last year, NPCI refused to block fund movements for cryptocurrency trades and left the decision up to individual banks to determine their own level of risk.

During that time, Indian banks were blocking some transactions related to crypto exchanges and investments.

NPCI’s latest statement early this month has renewed the difficult relationship with crypto exchanges. Currently, there has been reluctance from local banks to provide crypto exchanges with channels to deposit funds.

Confusion in India’s banking industry is hurting 20 million Indians using cryptocurrencies. In March 2020, India’s Supreme Court struck down the RBI (Reserve Bank of India)’s 2018 decision to bar banks from providing services to crypto firms.

The crypto exchanges are witnessing a steady decline in trading volumes since the start of April over new tax rules and payment mechanism issues. India’s finance ministry introduced a 30% tax on income from all virtual digital assets transactions, including cryptocurrencies and non-fungible tokens (NFTs), which came into effect on April 1.

Unstoppable Domains Partners with Fantom to Make Crypto Transactions Easier

To eliminate the pain points associated with cryptos like misunderstanding, trepidation, and fear, Unstoppable Domains has collaborated with Fantom to make transactions simpler and easier.

Fantom, a layer-1 blockchain platform, expects the strategic partnership to trigger a frictionless and unified crypto ecosystem. Per the announcement:

“Unstoppable Domains will support the Fantom network, and allow Fantom’s more than 3.5 million users to benefit from the simplified movement of digital assets via human-readable wallet addresses.”

Unstoppable Domains is a top platform for Web3 digital identity whose NFT domains act as a payment hub comprising human-readable addresses.

Through the partnership, the Fantom network will benefit from simplified crypto transactions, user verification, and identity ownership.

Michael Kong, Fantom CEO, noted:

“Unstoppable Domains has been at the forefront of decentralized domains for years, and is a pioneer in the Web3 space. We are thrilled to work alongside Unstoppable Domains to bring these domain names to the Fantom Network, and to further simplify the movement of digital assets for our users.”

On his part, Sandy Carter, SVP and channel chief of Unstoppable Domains stated:

“The number of use cases for NFT domains continues to grow. We are excited to work with Fantom Foundation to help improve crypto payments, and bolster the wider Web3 landscape.”

The Fantom network recently incorporated automatic audits into decentralized applications (dApps).

Meanwhile, Unstoppable Domains recently introduced an easier way for users to purchase cryptocurrencies on MoonPay, Blockchain.News reported.

The partnership between MoonPay and Unstoppable Domains is intended to resolve the loss of crypto funds once sent to the wrong addresses because it is nearly impossible to recover. Furthermore, the collaboration also intended to make the onboarding of mass users into the Web3.0 space more realistic.

CoinsPaid Total Transaction YTD Tops €16B despite Crypto Winter

Cryptocurrency processing platform CoinsPaid has shared an update on its third-quarter (Q3) performance, revealing it saw a 2x growth in its transaction volume compared to last year’s period.

According to the Tallin-based crypto startup, it completed 4.9 million transactions in the 3rd quarter, a figure worth approximately €3 billion.

Thus far this year, the digital currency ecosystem has been experiencing what is called the crypto winter, a period characterized by declining prices of crypto assets. While crypto winters cannot be separated from the industry, this year’s slump has been remarkably devastating, considering its volatility and correlation with the traditional industry.

Some exchanges and lending platforms generally recorded lower transaction volumes and bouts of bankruptcies, compounding the already challenging situation the market plunged into. For CoinsPaid, the story has been very different, with growth seen across its core market segments.

“In Q3, we did a great job in product and business development, adjusting the business logic and strategy to the current market situation and empowering our products with new features. This year our team has grown to 200 members. While most companies like Robinhood, Coinbase, and Gemini face layoffs, we have 50+ open vacancies. And I believe that perseverance and team spirit will allow us to set new records this year,” said Max Krupyshev, Co-Founder and Leader of CoinsPaid.

While CoinsPaid operates from Europe, its global influence notably processes as much as 8% of the international on-chain Bitcoin transactions. The growth the firm has charted over the years has made it process over €16 billion since its inception.

At the moment, CoinsPaid is looking to build on its existing influence as a data authority in the industry, and by maintaining confidence amongst its customers that its business has continued growing despite the market crash, it can continue to fulfil its goals to all of its clients and investors across the board.

Binance Has Enabled Iranians Transact $8 Billion Despite Sanctions

Since 2018, crypto exchange Binance has carried out Iranian transactions worth $8 billion despite being slapped with U.S. sanctions, according to Reuters.

Reportedly, approximately $7.8 billion has flowed between Nobitex, Iran’s largest crypto exchange, and Binance based on data availed by blockchain analytic firm Chainalysis.

Per the report:

“Three-quarters of the Iranian funds that passed through Binance were in a relatively low-profile cryptocurrency called Tron that gives users an option to conceal their identities.”

The U.S. sanctions are meant to cut off Iran from the global financial system. Nevertheless, Nobitex has devised ways to circumvent them because it encourages its users to utilize Tron, a mid-tier token, for anonymous trading.

Industry data indicated that Binance was the largest crypto exchange for Tron trading. Per the report:

“The total volume of Iranian transactions flowing through Binance is far greater than through any other exchange. After Binance, the next most popular exchange for Nobitex users since 2018 was Seychelles-based KuCoin, which processed $820 million in direct and indirect transactions.”

Apart from Tron, the other cryptocurrencies used in Iranian transactions included Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Tether (USDT), and Litecoin (LTC).

The report also disclosed that crypto worth $5 billion was transacted between Binance and Iranian exchanges using intermediary layers.

Binance has reiterated in the past that it does not aid illicit funds based on its transaction monitoring tools. Patrick Hillmann, Binance spokesperson, stated:

“Binance uses transaction monitoring and risk assessments to ensure that any illegal funds are tracked, frozen, recovered and/or returned to their rightful owner.”

Meanwhile, Ziya Sadr, an Iranian Bitcoin advocate, was recently arrested by the nation’s security forces, Blockchain.News reported.

Sadr’s arrest came amid widespread anti-government protests following the killing of a 22-year-old Iranian woman Mahsa Amini who died in police custody. Iranian authorities arrested at least 35 journalists in connection with the widespread demonstrations.

Cash App Integrates TaxBit for Streamlined Crypto Tax Reporting

Cash App, a mobile payments processor, has integrated tax and accounting software provider TaxBit into its platform to streamline the tax reporting process for Bitcoin users. The integration, which was announced by both companies, allows Cash App users to track their Bitcoin transactions for tax purposes using TaxBit’s platform. TaxBit’s chief operating officer, Lindsey Argalas, stated that their platform simplifies tax reporting for anyone who has integrated digital assets into their investment portfolio.

Cash App launched its Bitcoin trading services in 2018 and introduced BTC deposits the following year. As of now, the company boasts over 10 million Bitcoin users. Its parent company, Block Inc., has generated billions of dollars in Bitcoin revenue over the years. Block Inc. reported $1.96 billion in Bitcoin revenue during the fourth quarter of 2021, according to United States Securities and Exchange filings.

TaxBit, on the other hand, launched TaxBit Network in 2022, which provides crypto traders free tax forms. The industry consortium was launched with over a dozen U.S.-based companies, including PayPal, Coinbase, Binance.US, Paxos, and Gemini. The aim of TaxBit Network is to simplify tax reporting for cryptocurrency traders and investors.

The Internal Revenue Service (IRS) of Washington has set January 23 as the start of the 2022 tax filing season, giving most taxpayers until April 18 to file and pay their taxes owed. In January, the IRS reminded taxpayers of their crypto income reporting obligations, including capital gains from trading, mining, and staking activities.

The integration of TaxBit into Cash App’s services comes as more companies are exploring the potential of cryptocurrency and blockchain technology. As the popularity of digital assets continues to grow, regulators and tax authorities are paying closer attention to the tax implications of crypto investments. Platforms like TaxBit can help investors and traders stay on top of their tax obligations and avoid any potential legal issues.

In conclusion, the integration of TaxBit into Cash App’s services is a positive step for the cryptocurrency industry. It provides a more efficient and streamlined way for Bitcoin users to manage their tax obligations. As the industry continues to evolve, we can expect to see more developments aimed at making crypto investments more accessible and easier to manage.

Okcoin Halts U.S. Dollar Deposits After Signature Bank Shutdown

Okcoin, the U.S. affiliate of cryptocurrency exchange OKX, announced on March 13 that it had no exposure to defunct U.S. tech bank Silicon Valley Bank (SVB). However, Okcoin CEO Hong Fang stated that the platform’s U.S. dollar wire and ACH deposits had been “immediately paused” due to the regulatory intervention in Signature Bank, Okcoin’s primary partner for customer transactions in dollars.

On March 12, New York state regulators closed Signature Bank, a major financial institution for fiat-crypto on-ramping, citing a “systemic risk exception” in the wake of SVB’s collapse. In addition to suspending dollar deposits, Fang wrote that “over-the-counter services will be temporarily paused too,” including its quick buy and recurring buy functions. Okcoin also stated that the suspension extends to “crypto transactions by credit card” and “trading USD-crypto trading pairs.”

Fang reassured users that “all corporate and all customer funds are safe” and that “USD withdrawal not affected. The processing pace will be subject to bank operation.” All crypto deposit and withdrawal functions remain intact, including those of U.S. dollar-pegged stablecoins. Furthermore, the suspension appears limited to dollar deposits, as other fiat deposit methods, such as those made in euros, are unaffected.

Okcoin is working to find alternative channels and solutions in real-time, and the suspension is not expected to impact crypto transactions significantly. Fang emphasized the platform’s commitment to its users, stating, “If this weekend has told us anything, it’s the significance of the future that we are building. Our commitment to you hasn’t changed either.”

The crypto-friendly Signature Bank was a key partner for many crypto firms, including Coinbase, Celsius, and Paxos, which have since disclosed that they held balances in the bank. U.S. federal regulators have stated that Signature Bank depositors will receive their balances in full post-shutdown.

The shutdown of Signature Bank has raised concerns in the crypto community about the risks associated with fiat-crypto on-ramping and the importance of selecting reliable banking partners. While Okcoin has assured its users that their funds are safe, the incident highlights the need for greater transparency and accountability in the crypto industry.

Coinbase and Trustly Collaborate to Streamline Crypto Transactions for Canadians

Trustly, a global leader in Open Banking Payments, has announced its collaboration with Coinbase, a prominent figure in the cryptoeconomy, to facilitate secure and straightforward account-to-account payments for Canadians. This partnership will enable Coinbase users in Canada to directly deposit and withdraw funds between their bank accounts and crypto wallets using Trustly’s Open Banking Payments.

Canada, recognized as the world’s third-most crypto-aware nation, boasts a robust regulatory framework that is conducive to innovative financial services and alternative payment methods. The integration of Trustly with Coinbase will grant users the convenience of linking their bank accounts to their Coinbase wallets. This will allow for instant fund additions or smooth withdrawals via EFT (Electronic Funds Transfer) or Interac payment systems.

Recent data from the Ontario Securities Commission reveals a growing interest in cryptocurrency within the Canadian populace. The survey indicates that over 30% of Canadians are considering purchasing crypto assets within the coming year. In light of this, Trustly has expressed its enthusiasm to further its collaboration with Coinbase. Plans are underway to enable direct bank transfers via EFT later this year. This enhancement promises users seamless transactions and higher deposit limits.

Expansion Moves by Coinbase

Coinbase’s expansion into the Canadian market isn’t an isolated event. On August 14, 2023, Coinbase announced its official entry into the Canadian market, marked by the integration of Interac payment rails and the launch of Coinbase One, a 30-day trial offering exclusive perks to Canadian users. This move was strategically planned, considering Canada’s growing crypto-awareness. In March 2023, Lucas Matheson was appointed as the Country Director for Canada, emphasizing Coinbase’s commitment to the region.

Furthermore, on August 16, 2023, Coinbase Financial Markets secured approval to offer regulated crypto derivatives products to its US customers. This was a significant move to provide a transparent and regulated environment for crypto enthusiasts in the US. The global crypto derivatives market accounts for approximately 75% of the total crypto trading volume, highlighting the significance of this development.

Ross McFerrin, VP Enterprise Growth at Trustly, commented on the alliance, stating, “Trustly is thrilled to support Coinbase and its expansion into Canada. We believe our Open Banking platform will make investing in cryptocurrency more convenient and secure for Canadians.” Nana Murugesan, VP International and Business Development at Coinbase, in an interview with BNN Bloomberg, emphasized that the partnership with Trustly is a strategic move to make cryptocurrency more accessible to Canadian users.

A Glimpse into Trustly

Trustly, established in 2008, stands as a pioneer in Open Banking Payments. Their digital platform offers a unique payment journey, connecting notable global merchants directly with consumers through online banking. As of 2021, Trustly has facilitated over $42 billion in transactions within its global network, serving 8,100 merchants and connecting them with 525 million consumers across 30 countries