Global News: Binance Founder CZ is going to jail!!!
Nigeria to receive $2.25b from the World Bank
Changpeng Zhao, the founder of world’s largest cryptocurrency exchange, Binance, has been sentenced to four months in prison on charges related to money laundering, a significant deviation from the three years sought by prosecutors
Our thoughts
personally think this is part of the journey of integrating cryptocurrency with mainstream finance. If cryptocurrency can’t be regulated real time, participants can be prosecuted to clearly define lines that should not be crossed.
The posture of CZ is understandable, the essence of cryptocurrency is freedom! If binance insisted on proper KYC, they would never have gained traction. Insisting on proper traditional KYC would have been impossible! With a sentence and a fine, it is now ‘justifiable’ to make such requests.
'Overworld' crypto community will ‘understand’ and oblige, 'underworld' crypto community will find a way to layer or move to another platform. However, with this sentence, prosecuting the next platform will be easier and faster with stronger consequences.
So the eco-system is cleaner!
With this, you may see an initial ‘underworld’ sell off, but a cleaner system with halving events every 4yrs (we discussed last week) there’s a case for crypto in your portfolio.
African News: Egypt cracks down on bakeries flouting bread-control prices
Egyptian authorities have launched an enforcement drive to ensure bakeries comply with state-mandated price controls on bread, the staple of the nation's 114 million people.
Our thoughts
Just thought this sounded very familiar😂. The bakeries claim that the difference in price is from the quality of items used (obviously). How really can you force everyone to sell a non-generic product for the same price. This hasn’t actually worked in the past, but lets see if Egypt will be the first.
Good intentions though! Bread price is a major contributor to the inflation pricing basket in Egypt so the government wants to use the police to bring down inflation!
I wish them success
Nigerian News: CBN stops Opay, Palmpay, others from onboarding new customers
However, the Bank Customers Association of Nigeria backed the CBN directive.
The new directive will affect fintech companies such as OPay, Palmpay, Kuda Bank, and Moniepoint, from opening new accounts until further notice.
Our thoughts
To be clear, the directive is to suspend account opening. It has no impact on operations and its a suspension (ie for a period) not a total cancellation.
Given the ease with which these 'online banks' can be used for fraud, the KYC (Know your customer) process needs to be reviewed. Whilst the ease in opening accounts is laudable, it comes with the downside- you won’t get it till you are scammed and the process of losing money is faster than the process of alerting the bank to block the account!!!😂
I expect the affected companies to work with the CBN for a more stable and secure system.
As a customer, you should ONLY be scared about this if your fintech operator has bought houses in Seychelles with your money and is dependent on new accounts (and funds) to honor your transfer instructions. If this isn't the case, your funds are fine✌️✌️
Whats happening at the Money Wit Club…..
Did you enjoy reading this? Help spread the message by forwarding to at least 10 of your contacts.
Was this email forwarded to you? Subscribe here.
We host weekly money discussions live on our YT channel… visit our channel
Want to advertise with us? Email business@oleroladele.com