The Bitcoin network decreased its mining difficulty by 27.9%, Binance getting internationally dumped and the launch of the world´s first regulated decentralized trading exchange.
Bitcoin decreasing mining difficulty
In response to the recent decline in the hash rate, the mining difficulty of the Bitcoin network has decreased significantly. With a difficulty decrease of 27.9%, the largest difficulty adjustment in Bitcoin’s history has taken place. Since the last difficulty update, the hash rate has decreased by 35%. This drop can be attributed in part to the recent circumstances where China ordered a halt to crypto mining. About 65% to 75% of Bitcoin mining took place in China. A low hash rate leads to slow block production. This is because hashing power cannot keep up with a high difficulty level. To ensure that blocks are regularly produced on the blockchain despite fluctuating hash rates, the difficulty level is updated every 2,016 blocks.
Strong headwind blowing towards Binance
Financial regulators around the world are giving the world’s largest crypto exchange Binance a hard time. The UK Financial Conduct Authority (FCA) has ordered Binance to cease all regulated activities in the country. Despite Binance’s statement that the FCA notice would have no direct impact on the services offered on Binance.com, this is considered one of the setbacks for the company. The setbacks also include repeated warnings from the Financial Services Agency (FSA) in Japan that Binance was operating without proper authorization. In the first warning in March 2018, the regulator said Binance would be prosecuted if it continued to do business without a license. This forced the platform to move its headquarters out of the country and officially relocate to Malta. In addition, the government agency Ontario Securities Commission in Ontario, Canada introduced new regulations that the crypto exchange does not comply with. According to them, the platform will not serve any of the 15 million people living in Ontario as customers from the end of 2021. Customers will have to close their active positions until then.
The world’s first regulated DeFi platform
Swarm Markets announced its official launch as a company regulated by the German Federal Financial Supervisory Authority (BaFin). This makes Swarm Markets the operator of the world’s first regulated decentralized trading exchange. Swarm Markets operates a decentralized exchange (DEX) built on the Ethereum network. With committed liquidity of $15 million, the platform is now going live. The money was raised from more than 250 people who participated in a liquidity provider program. On the platform, Swarm Markets will offer tokenized securities that can be traded with cryptocurrencies.
“We see regulation as necessary for DeFi’s development, not as a limiting factor. Instead of reinventing the wheel, we have applied existing German regulation to DeFi markets. This level of regulation will provide enough certainty and protection to bring capital and assets into the ecosystem that have sat on the sidelines for too long.”-Swarm Markets
And more exciting news from around the world:
- Payments giant Visa has made five hires and placements, continuing to build out its crypto team. Focusing on stablecoins, Visa is preparing to support central bank digital currencies.
- Coinbase has announced a new product offering that could set it apart from its fintech rivals. With the new product, allows users are allowed to earn 4% annual percentage yield (APY) by lending out USDC.
It was a great week for blockchain technology. Follow us for more exciting news and be part of the blockchain revolution by joining our BLOCKCHANCE EUROPE 2021 conference in Hamburg in December 2021. You can get tickets here.