Daily Crypto, Finance and Tech News Summary – June 30, 2023

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Welcome and thank you for being part of the MyZucoins community! Dive into some important news in the crypto, finance and tech world to avoid falling behind.

Just a quick heads-up, MyZucoins has some exciting news to share in our Monday update. This is something you definitely won’t want to miss, so make sure to check your email or visit our website for the latest update. We’re thrilled about what’s on the horizon and can’t wait to share the details with you. Stay tuned!

Deteriorating eroding US Dollar note in sea

US Dollar Weaponization Risks Erosion, Fuels Search for Alternative Currencies, Warns IMF

Aleksei Mozhin, the International Monetary Fund’s (IMF’s) executive director for Russia, reveals that the West’s decision to exclude certain countries from the global payments system is prompting nations to seek substitute currencies. This strategy, driven by economic and financial sanctions, has been employed by the US and its allies to penalize Russia for its actions in Ukraine. The use of sanctions as a tool has led to a more divided global economy, creating irreversible fragmentation.

In March 2022, the West imposed sanctions that froze approximately $300 billion of Russian reserves and disconnected Russian banks from SWIFT, a cross-border payment system dominated by the dollar and the euro. As a result, nations are now actively exploring alternatives to the dollar for international trade settlements. This shift is evidenced by the increasing adoption of the yuan by countries such as Iran, Brazil, and Saudi Arabia, who are engaging in trade not only with China but also with other third-party nations.

China, in particular, has secured deals with numerous countries, amounting to $582.3 billion worth of global trades settled in yuan, bypassing the dollar. This move suggests a potential dethroning of the dollar as China eases its currency restrictions. The search for alternative currencies is driven by the recognition that the weaponization of the dollar has created a need for more diversified and independent financial systems in the global arena.

As countries actively seek substitute currencies, the dominance of the dollar in international trade and finance is being challenged, leading to a potential reconfiguration of the global economic landscape. Read more here.

Closing the Gap to Freedom with Zucoins

Leveraging the increasingly decentralized nature of Splitchain, the Zucoins token enables seamless and private peer-to-peer transactions, allowing users to have greater control over their financial activities.

In a world where the dominance of traditional currencies is being questioned, cryptocurrencies such as Zucoins offer a path towards an independent transaction system that gives power back to its users. It also gives individuals an opportunity to diversify their assets and participate in the evolving landscape of digital currencies.

South Korea Passes “Virtual Asset User Protection” Law to Tackle Unfair Cryptocurrency Trading

South Korea has taken a significant step in protecting cryptocurrency investors by passing the Virtual Asset User Protection legislation. The new bill aims to regulate unfair trade practices and safeguard individuals who engage in crypto transactions. The legislation consolidates 19 crypto-related bills, providing a unified framework defining digital assets and imposing penalties for illicit trading activities such as market manipulation and undisclosed information.

The key focus of the Virtual Asset User Protection Act is to apply the Capital Market Act to virtual assets with securities characteristics, establishing a basis for penalties and liability for damages caused by unfair crypto trading. To enhance investor protection, virtual asset service providers (VASPs) are now required to take responsibility for users’ deposits and offer insurance coverage. These measures aim to mitigate risks associated with hacks, computer failures, and other potential threats.

The legislation introduces severe penalties for violations, including fixed-term imprisonment and significant fines. For instance, the Financial Services Commission has the authority to impose fines twice the amount of profits gained from unfair trade. The move to regulate the cryptocurrency market comes as Terraform Labs founder Do Kwon faces legal consequences for using a false passport and allegedly violating South Korea’s capital markets law.

With the passage of the Virtual Asset User Protection legislation, South Korea demonstrates its commitment to ensuring a fair and secure environment for cryptocurrency investors. By regulating unfair practices and holding VASPs accountable, the government aims to prevent implosions and fraudulent activities within the crypto space, fostering trust and stability in the market. Read more here.

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