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Binance Pulls Out of Abu Dhabi License Bid Amid Mounting Regulatory Pressure – Bitcoinsensus

Global Crypto Leader Adapts to Challenges CEO Resignation, U.S. Settlement, and Reevaluation of Licensing Strategy

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Binance, the cryptocurrency giant, has chosen to withdraw its application for a license in Abu Dhabi, signaling a strategic shift amidst escalating regulatory pressures in the cryptocurrency industry.

BV Investment Management, a unit under Binance, filed the license application a year ago but officially withdrew it on November 7. The application aimed to grant the firm the ability to manage a collective investment fund.

Also Read: Binance Crackdown Spurs Unprecedented Wave of Crypto Surveillance Measures

In response to increasing regulatory challenges, Binance is actively reevaluating its global structure. A spokesperson from Binance stated, When assessing our global licensing needs, we decided this application was not necessary, underscoring the companys strategic approach to regulatory compliance.

Changpeng Zhao, the founder of Binance, recently stepped down as CEO after pleading guilty to violating U.S. anti-money laundering laws. This legal action resulted in Binance agreeing to a substantial $4.3 billion settlement to resolve a lengthy investigation by U.S. authorities.

Its essential to note that Binance clarified the decision to withdraw from Abu Dhabi is unrelated to the recent U.S. settlement. The move appears to be part of a broader strategy and not a direct consequence of the legal challenges faced in the United States.

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Binance has played a significant role in the United Arab Emirates (UAE), holding regulatory permissions in both Dubai and Abu Dhabi. The UAE, aspiring to be a digital asset hub, has been a key location for Binance. The company has been involved in various initiatives, including recruiting efforts and contributing to shaping crypto regulations in Dubai.

The withdrawal from the Abu Dhabi license bid, coupled with the regulatory challenges and leadership changes, raises questions about the future trajectory of Binance. This development could potentially impact the companys global operations and reputation. Stakeholders and observers are urged to closely monitor further developments in Binances strategic decisions and regulatory compliance.

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Crypto Markets Outlook After Nov. Jobs Report; Binance Founder CZ Can’t Leave the U.S. Right Now – CoinDesk

Emily Parker is CoinDesk's executive director of global content. Previously, Emily was a member of the Policy Planning staff at the U.S. State Department, where she advised on Internet freedom and digital diplomacy. Emily was a writer/editor at The Wall Street Journal and an editor at The New York Times. She is the co-founder of LongHash, a blockchain startup that focuses on Asian markets.She is the author of "Now I Know Who My Comrades Are: Voices From the Internet Underground" (Farrar, Straus & Giroux). The book tells the stories of Internet activists in China, Cuba and Russia. Mario Vargas Llosa, winner of the Nobel Prize for Literature, called it "a rigorously researched and reported account that reads like a thriller." She was chief strategy officer at Silicon Valley social media startup Parlio, which was acquired by Quora.She has done public speaking all over the world, and is currently represented by the Leigh Bureau. She has been interviewed on CNN, MSNBC, NPR, BBC and many other television and radio shows. Her book has been assigned at Harvard, Yale, Columbia, Tufts, UCSD and other schools.Emily speaks Chinese, Japanese, French and Spanish. She graduated with Honors from Brown University and has a Masters from Harvard in East Asian Studies. She holds Bitcoin, Ether and smaller amounts of other cryptocurrencies.

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Crypto Markets Outlook After Nov. Jobs Report; Binance Founder CZ Can't Leave the U.S. Right Now - CoinDesk

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Binance looks to boost FDUSD adoption with fee-free trading for Ethereum, XRP, others – CryptoSlate

Binance has expanded its free trading options for the spot and margin trading pairs of the First Digital USD (FDUSD) stablecoin pairing with six digital assets, including BNB, Dogecoin, Chainlink, Ethereum, Solana, and XRP, according to a Dec. 5 statement.

Binance users will see zero maker and taker fees for these pairs starting Dec. 8 for an undisclosed period. The exchange explained that the free trading option would exclude these pairs from BNB fee discounts, rebates, and other adjustments.

However, the firm stated that it reserves the right to disqualify trades deemed to be wash trades or illegally bulk account registrations, as well as trades that display attributes of self-dealing or market manipulation.

The free transaction promotion is part of Binances ongoing efforts to encourage its users to use the FDUSD stablecoin.

Last week, the crypto platform said it would phase out support for Binance USD (BUSD) by Dec. 15. Binance urged users to convert their BUSD holdings into the new stablecoin before the end of the year, sayingit would end BUSD withdrawals by Dec. 31 and that BUSD balances would be automatically converted to FDUSD.

Binances decision relates to the BUSD stablecoins regulatory issues. Earlier in the year, the BUSD issuer, Paxos, suspended the stablecoin issuance following scrutiny from U.S. regulators. At the time, the company received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), which classified the stablecoin as a security.

While Binance and Paxos have vehementlyrejectedthis classification, the crypto community promptlydeserted the stablecoin, with its circulating supply dropping to less than $2 billion as of press time, according to CryptoSlates data.

Concurrently, Binance has been heavily pushing FDUSD as a viable alternative, introducing new products for the digital asset and incentivizing its use. However, FDUSDs circulating supply remains less than 1 billion andis only available on less than five crypto exchanges.

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Binance’s $4.3B penalty hard to beat, CFTC senior official says – Protos

A senior commissioner at the Commodity Futures Trading Commission (CFTC) stated that its unlikely well see a penalty brought against a crypto firm that can exceed the $4.3 billion in fines that Binance agreed to pay.

CFTC commissioner Kristin Johnson told the audience at a recent crypto summit that she hopes the landmark case against Binance will really be a bit of a cautionary tale. The commissioner added that Binances penalties established guardrails to bring order and structure to the market, Reuters reports.

My hope would be that we have seen a spike, and what we will see going forward is that these early cases will really be a bit of a cautionary tale for those firms that really do want to successfully operate in this ecosystem, Johnson said.

At the same summit, Johnson added that Binances penalties were heightened because the crypto exchange had been warned plenty of times before that it must comply with regulations.

Read more: Top Binance exec Noah Perlmans ties to Epstein, Moonstone, and Gemini

The commissioner added that the settlement of the case did not involve any allegation of fraud or similar misconduct. These sentiments are echoed by Binance chief Changpeng Zhao, who controversially posted that in our resolutions with US agencies they do not allege that Binance misappropriated any user funds, and do not allege that Binance engaged in any market manipulation.

That said, Johnson added that the CFTC is deep and careful in its preparation before deciding civil penalties. Binances penalties were mostly heightened because the CFTC has publicly reiterated several times that it needs to comply, and it still failed to.

Binances $4.3 billion penalty marked the largest settlement to be reached with a crypto firm, and simultaneously settled several cases with other US agencies. However, it didnt get rid of the Securities and Exchange Commissions (SEC) lawsuit against Binance, which claims that the exchange and CZ engaged in massive wash-trading.

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Vitalik Buterin NFTs triggers surge in Ethereum gas fees – crypto.news

The Buterin Cards NFT collection triggered a 13% gas fee increase on the Ethereum (ETH) network. In the past 24 hours, transactions linked to the collection resulted in fees totaling 318.31 ETH, equivalent to $665,670.

As of 3:00 p.m. ET on Dec. 1, transactions linked to a new non-fungible token (NFT) project known as Buterin Cards reportedly accounted for over 13% of the total Ethereum network gas fees within three hours, surpassing fees from the Uniswap universal router address and Tethers public address, according to Etherscan data.

The surge in fees was a consequence of heightened demand for processing transactions associated with the Buterin Cards NFT collection.

The Buterin Cards project seeks to release 2,015 NFTs as a tribute to Vitalik Buterin, the co-founder of the Ethereum blockchain. Utilizing a unique NFT minting process called JPEG mining, the project distinguishes itself by storing image data on-chain, deviating from conventional NFTs that only store metadata on-chain.

To ensure the integrity of the uploaded data and prevent arbitrary uploads, the smart contract verifies data correctness by computing its hash. The projects website explains that thanks to progressive JPEG technology, the NFT image gradually unveils as it undergoes the mining process.

In exchange for their contributions, miners are rewarded with a card featuring an image of Vitalik Buterin at various quality levels, according to the projects website.

In recent times, Ethereum has undergone significant developments, most notably the shift to a proof-of-stake (PoS) consensus mechanism, known as Ethereum 2.0. This transition replaced the energy-intensive proof-of-work (PoW) model, introducing staking, where validators stake 32 Ether (~$50,000) and are randomly selected to add blocks. This change has led to a remarkable 99.9% reduction in Ethereums energy consumption.

The broader Ethereum 2.0 upgrade, consisting of phases like the Beacon Chain, the Merge, and Shard Chains, aims to enhance scalability and security. These adjustments address Ethereums limitations, including scalability and energy consumption.

In terms of market performance, Ethereums price has rebounded, surpassing the $2,000 level and approaching new 52-week highs, reflecting a robust 2023 performance.

Additionally, Ethereum gas fees have experienced fluctuations, reaching their lowest levels since November 2022.

The decrease in gas fees has been attributed to a reduction in on-network activity, resulting in more manageable fees for Ethereum users. Factors influencing these changes include network congestion, Ethereum upgrades, and market speculation.

However, the primary goal has been to enhance scalability and decrease fees. Even though the immediate effects of these upgrades may not be evident, they have also contributed to the fluctuations in gas fees.

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Charles Hoskinson Mocks Crypto Influencer List as Vitalik Buterin Fails to Make the Cut – CCN.com

Charles Hoskinson (pictured) took the opportunity on Sunday to poke fun at his fellow crypto big-wigs. Photo By Piaras Mdheach/Sportsfile for Web Summit via Getty Images. Sportsfile Collection.

Charles Hoskinson has taken an opportunity to laugh at a well-known crypto industry Most Influential list. The Cardano founder made a comical reference to the correlation between being influential in the crypto industry and ending up behind bars.

Unfortunately for the Cardano founder, Hoskinson was not featured on the 2023 edition of the list, with Vitalik Buterin, the founder of Ethereum, also failing to make the cut. Although, Hoskinsons comments were made before the latest (2023) version of the list was published.

In a post on X, Hoskinson remarked: Fast Fact: appearing on Coindesks Most Influential list carries an 18 percent chance of a prison sentence. The blockchain veteran was referencing a preview post by the digital magazine which referenced its top entrants over the years.

CoinDesk, a leading news source in the crypto world, has been compiling its Most Influential List annually since 2014. This list reflects those who have made a significant impact on the crypto, blockchain, and Web3 spaces over the year. The 2022 edition of the list, like its predecessors, includes a diverse array of individuals from innovators and thought leaders to controversial figures.

Ethereums founder, Vitalik Buterin, leads with four appearances. Following closely are Balaji Srinivasan, former CTO of Coinbase, and the mysterious Satoshi Nakamoto, both making it three times. Notably, Andre Conje, Andreas Antonopoulos, Brian Armstrong, CZ Zhao, Cynthia Lummis, Do Kwon, Gary Gensler, Gavin Andresen, Jack Dorsey, Jeremy Allaire, Jerome Powell, Pieter Wuille, and Sam Bankman-Fried have each appeared twice

On the list are convicted felons Sam Bankman-Fried, whose FTX exchange collapsed in spectacular fashion last year, and Do Kwon, whose TerraUSD stablecoin implosion kicked-off 2022s bear market. Changpeng CZ Zhao is currently looking at potential prison time after admitting serious wrongdoing to the U.S. Department of Justice for his time at the top of Binance.

This year the list includes Caroline Ellison (31) whose testimony helped put FTX founder, Sam Bankman-Fried, behind bars, and Larry Fink (13), the CEO of BlackRock, whose application for a spot Bitcoin ETF helped kick off a new wave of institutional interest in the cryptocurrency. Top of the list this year was Casey Rodarmar, the creator of Bitcoin Ordinals.

The CoinDesk list acknowledges the influence of its listed individuals without necessarily endorsing their actions. As it noted in its 2022 edition, We make no claim that this is a list of the most admirable or admired.

Hoskinsons latest remarks follow weeks of industry insights that have garnered significant attention. Last week, he criticized the U.S. Securities and Exchange Commission (SEC) for its inconsistent treatment of cryptocurrencies. He pointed to Bitcoins preferential status as one of the few cryptocurrencies not labeled a security.

However, he faced backlash for allegedly supporting the SECs decisions when they benefited Cardanos ADA, but not similarly defending XRP. Hoskinson refuted conspiracy theories involving Ethereum (so-called #EthGate) and demanded evidence for accusations of bribery, which have plagued Ethereums non-designation as a security.

Then, a few days later, Hoskinson developed his remarks on Bitcoin in a further AMA video.

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Enhanced security: Default end-to-end encryption now on Facebook Messenger – HT Tech

Meta Platforms has fulfilled a longstanding promise by introducing default end-to-end encryption for one-on-one conversations and calls on Facebook Messenger. The company asserts that with this encryption enabled, only the sender and recipient of a message can access its contents. Initially introduced as an opt-in feature in 2016, end-to-end encrypted texts and calls for individual discussions will now be the standard, marking a significant milestone after an extended development process.

Loredana Crisan, VP of Messenger, expressed, "This has taken years to deliver because we've taken our time to get this right." The team, including engineers, cryptographers, designers, policy experts, and product managers, worked diligently to rebuild Messenger features comprehensively.

Despite the encryption shift, Crisan assured users that popular Messenger features like themes and custom reactions would remain unaffected. However, she cautioned that the transition to default encryption might "take some time" for all Messenger chats.

While this move is a positive stride, The Verge notes that end-to-end encryption for group Messenger chats remains opt-in. Additionally, default encryption is yet to extend to Instagram messages, although Meta had previously indicated its implementation shortly after private Messenger chats.

In 2019, CEO Mark Zuckerberg outlined the company's intention to embrace encrypted ephemeral messages across its messaging apps. Zuckerberg wrote in a Facebook post, "I believe the future of communication will increasingly shift to private, encrypted services."

The implementation of default encryption implies that Meta won't have visibility into the contents of most Messenger chats, nor can it hand them over to law enforcement. This shift comes in the wake of a notable case where law enforcement obtained Messenger chat history in a criminal investigation. Despite concerns from anti-encryption advocates about the challenges it poses for identifying bad actors, Meta remains committed to enhancing user privacy across its messaging platforms.

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Facebook Messenger is now end-to-end encrypted as standard – TweakTown

Meta, the company that makes Facebook Messenger and owns the similar instant-messaging platform WhatsApp, has announced that it finally supports end-to-end encryption as standard with that being the default for all new chats. The move comes after Meta promised to make this change some time ago. Messenger has been around since 2016 and launched against a very different instant messaging backdrop.

By adding end-to-end encryption Facebook Messenger ensures that all messages and calls are protected from snooping eyes before they leave the sending device. They are then unencrypted when they are received at the other end, with nobody between those two points able to decipher what was going on. That also goes for Meta, although that will change should the message be reported for violation of the Facebook Messenger terms.

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Meta does say that it might take a little while for all chats to be updated with the new default, but there will be no limitation on the functionality that is available to the people using those chats once end-to-end encryption has been enabled.

Meta's Head of Messenger, Loredana Crisan, also noted that the company has introduced new privacy, safety, and control features over the years since Messenger launched in 2016 in an attempt to make the messaging platform safer for people to use.

Other tweaks to this latest release of Facebook Messenger include the ability to edit messages for up to 15 minutes after they were sent, while disappearing messages now last for 24 hours after being sent. There is also the option di enable or disable read receipts for those who don't always want to be under pressure to respond immediately.

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Meta Starts Fully Encrypting Messages on Facebook and Messenger – RetailWire

Meta Platforms has rolled out end-to-end encryption for all personal chats and calls on both Messenger and Facebook. The end-to-end encryption feature will be available for use immediately, the social media giant said, but it may take some time for all Messenger accounts to be updated with the new technology.

Messenger users have had the option to turn on end-to-end encryption since 2016. This feature allows messages to be read only by the sender and its recipients. Once this change is implemented, messages will be thereafter encrypted by default. This encryption can help keep users safe from hackers.

Metas blog post reveals the encryption for personal messages and calls on both Facebook and Messenger, along with a suite of features that allow users to further control their experience. These features are part of the companys responsible effort to ensure a safer, more secure, and private service.

Weve introduced new privacy, safety and control features along the way like delivery controls that let people choose who can message them, and app lock, alongside existing safety features like report, block and message requests. We worked closely with outside experts, academics, advocates and governments to identify risks and build mitigations to ensure that privacy and safety go hand-in-hand, the post reads.

Meta has also added an editing messages feature for messages that users want to change for up to 15 minutes after sending them. Meta will be able to see the previous versions of the edited message.Disappearing messages on Messenger, which currently last for 24 hours after sending, will be improved to make it easier to tell when disappearing messages are turned on.

The change will roll into Instagram as well sometime in 2024, people familiar with the matter told The Wall Street Journal. However, encryption is not without its critics. Critics of the rollout include U.S. law enforcement agencies, who have argued that encrypted messages can shield criminals, including child predators and terrorists.

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Facebook and Messenger to automatically encrypt messages – BBC.com

7 December 2023

Image source, Getty Images

All Facebook and Messenger chats will be encrypted automatically, parent company Meta has announced.

Messages and calls protected by end-to-end-encryption (E2EE) can be read only by the sender and recipient.

It has been possible to opt in to encrypted messages for years, but now it will become the default position.

Critics, including the UK government and police, claim the move to default encryption will make it harder to detect child sexual abuse on Messenger.

The Home Secretary, James Cleverly, said he was "incredibly disappointed" by Meta's decision after working together to tackle other online harms.

"We'll continue to work closely with them (Meta) to keep children safe online, but we must be honest that in our view, this is a significant step back", he said.

James Babbage, director general for threats at the National Crime Agency, was also highly critical.

"It is hugely disappointing that Meta is choosing to roll out end-to-end encryption on Facebook Messenger.

"Today our role in protecting children from sexual abuse and exploitation just got harder," he said.

Privacy and safety

The switch to encryption meant nobody, including Meta, can see what is sent or said, "unless you choose to report a message to us", Loredana Crisan, head of Messenger, wrote in a post announcing the change.

The company had worked with outside experts, academics, advocates and governments to identify risks to "ensure that privacy and safety go hand-in-hand", she wrote.

It is expected that messages in Instagram, which is also owned by Meta, may get encryption by default sometime in the new year.

Meta says that people will know when their chats are upgraded and become encrypted, because they will be prompted to set up a recovery method to be able to restore their messages if they lose, change or add a device.

Apps including iMessage, Signal and WhatsApp all protect the privacy of messages with E2EE, but the tech has become a political battleground.

The apps and their supporters argue the tech protects privacy and security, including that of children.

But law enforcement, major children's charities and the government have opposed the expansion of E2EE.

New powers in the recently passed Online Safety Act could enable Ofcom to force tech companies to scan for child abuse material in encrypted messages. Signal and WhatsApp have said they will refuse to comply with such requests.

But despite those powers, there has been continued pressure on Meta to hold the expansion of E2EE.

In September the-then Home Secretary, Suella Braverman, alleged that Facebook Messenger and Instagram direct messages were the platforms of choice for online paedophiles, telling the BBC that "we are arresting in this country about 800 perpetrators a month, we are safeguarding about 1,200 children a month from this evil crime".

Malicious patterns

But Meta argued that it had spent years developing robust safety measures to prevent, detect and combat abuse while maintaining online security.

"When E2EE is default, we will also use a variety of tools, including artificial intelligence, subject to applicable law, to proactively detect accounts engaged in malicious patterns of behaviour instead of scanning private messages," the company wrote.

Prof Martin Albrecht, chair of cryptography at King's College London, welcomed the addition of what he called a standard safety feature.

"It secures not only government and business communication, but also private conversations between parents and their children, parents about their children, or groups of friends of all ages," he said.

Campaign group Privacy International backed the tech firm's decision. Encryption, it told the BBC, was "an essential defence, shielding journalists, human rights defenders, lawyers, artists, and marginalised groups from potential abuse by data-hungry companies and governments".

But Susie Hargreaves, chief executive of the Internet Watch Foundation, which works to identify and remove child sexual abuse material online, said it was outraged that Meta had chosen to "prioritise the privacy of paedophiles over the safety of our children".

She accused the platform, which she noted had a strong track record of detecting large amounts of child abuse material before it ended up on its services, of "effectively rolling out the welcome mat for paedophiles".

It was now up to Ofcom "to show its teeth", Ms Hargreaves said.

Read receipts

The firm also announced on Wednesday that it would add a number of new features, including the ability to edit messages for up to 15 minutes after they have been sent.

It will also give users the ability to control if people who send messages receive "read receipts" telling them a message has been read.

The changes will take some months to fully roll out, the company said.

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