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DeFi protocol Dolomite launches vARB to bring dual functionality to ARB holders

  • Dolomite says vARB is a “vote-enabled ARB” token that will allow holders to participate in Arbitrum’s governance through voting.
  • While it cannot be lent or borrowed, vARB means users can use their ARB collateral to vote.

DeFi protocol Dolomite has launched vARB, a “vote-enabled ARB” token that allows holders participate in governance voting on the Arbitrum network.

vARB is not a new token, and is non-transferable and non-tradable. Unlike ARB, users won’t be able to lend or borrow this token, the protocol said in a press release shared with CoinJournal.

However, vARB will allow holders to tap into ARB tokens deposited as collateral to access governance and voting rights on Arbitrum.

Amplify ARB voting power

According to Dolomite, vARB will be held in “isolation mode” on the protocol, with users able to use them for voting on Arbitrum. That’s not possible with the ARB locked in liquidity pools and used for lending and borrowing. As it stands, ARB locked in DeFi protocols such as Aave or Compound cannot be used in governance votes.

vARB makes this possible as users can use the same ARB for voting and for lending and borrowing by easily converting their ARB to vARB. The token however does have another advantage – holders can use it to amplify their votes’ weight.

To achieve this, users deposit vARB as collateral, getting to borrow more ARB. They can then swap the additional ARB for vARB, with this possible up to five times. As stated in the announcement, holders face no risk of liquidation from price movements given the value of vARB remains the same as that of ARB.

Arbitrum continues to grow as one of Ethereum’s most dominant Layer-2 networks. The network launched its ARB token in March and has over $2.4 billion in Total Value Locked (TVL) as of December 28, 2023. 

The price of ARB was $1.52, up by more than 32% in the past week as analysts predict a potential surge to $2.

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Celsius Network granted approval to pivot to Bitcoin mining

  • The US Bankruptcy Court for the Southern District of New York approved Celsius Network’s restructuring plans for bitcoin mining on Wednesday.
  • Celsius filed for Chapter 11 bankruptcy protection in July 2022.

A US bankruptcy court has approved Celsius Network’s bitcoin mining shift as part of the ongoing Chapter 11 bankruptcy proceedings the collapsed crypto lender filed in July 2022.

The approval order was given by Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York on December 27, Reuters reported.

Per the ruling, Celsius can go ahead with the restructuring plans that aims at focusing the company’s operations on Bitcoin mining. 

The judge’s order overruled objections to the restructuring plans, paving the way for the move as the crypto firm looks to navigate away from the impactful bankruptcy proceedings. As reported,   US Bitcoin Corp announced in August that it had entered into agreed to host 8,500 miners for Celsius Network.. 

Celsius customers allowed withdrawals

With yesterday’s court approval, a total of $225 million in crypto earmarked for a business operations rejected by the SEC, is now available for distribution to Celsius customers. Shares in the new mining company will also be available to customers.

Celsius began allowing withdrawals for some customers in late November. The plan allows eligible participants in the crypto lender’s custody program to withdraw 72.5% of their crypto holdings, with a deadline set for February 28, 2024.

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Argentina’s President Milei proposes incentives for declaring crypto holdings

  • Argentina’s President Milei proposes tax incentives in a draft bill for crypto regularization.
  • Asset regularization scheme offers favourable rates, encouraging prompt declaration by citizens.
  • The controversial omnibus bill sparks debates and protests amidst economic and political reforms.

Argentina’s pro-Bitcoin president Javier Milei is making waves with a groundbreaking draft bill aimed at regularizing cryptocurrency holdings as part of his ambitious economic and political reform agenda.

The legislation, titled the ‘Law of Bases and Starting Points for the Freedom of Argentines,’ proposes a unique approach to regulate both domestic and foreign cryptocurrency holdings.

Tax incentives for crypto declaration

President Milei’s draft bill introduces an ‘asset regularization scheme,’ offering tax incentives to individuals declaring crypto assets, irrespective of their origin or location. The proposed tax rates under this scheme vary based on the timing of declarations. Argentines declaring their crypto holdings before March 31, 2023, will benefit from a significantly low 5% tax rate, with gradual increases to 15% by November 30, 2023.

This move is strategically designed to encourage prompt declaration, fostering a more transparent and accessible process for formalizing cryptocurrency holdings. The inclusive nature of the legislation covers various assets, such as cryptocurrencies, crypto assets, and other similar goods, disregarding their issuer, owner, or storage location.

Debate and protests surrounding the bill

Despite the positive reception in the crypto market, President Milei’s omnibus bill has ignited controversy and protests within Argentina. The proposed economic and political reforms, including the crypto regularization initiative, have sparked debates in a nation grappling with deep-rooted financial issues, prolonged economic difficulties, high inflation, and currency instability.

The bill’s introduction marks a critical juncture for Argentina, highlighting both potential benefits and challenges. The success of this initiative hinges on the government’s ability to effectively balance regulatory oversight with the dynamic and decentralized nature of digital currencies.

In the coming months, the trajectory of this legislative effort will be closely watched, as it not only offers a pathway to legalize and regulate cryptocurrencies but also raises questions about its implications for Argentina’s economic future. President Milei’s bold stance on cryptocurrencies adds an intriguing layer to the ongoing discourse surrounding the country’s economic reforms.

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India issues compliance notices to nine offshore exchanges including Binance

  • India issues show-cause notices to Binance, Kucoin, and others for PMLA violations.
  • Finance Ministry urges blocking URLs of offshore exchanges operating illegally in India.
  • 1% tax on local exchanges prompts 3-5 million Indian users to shift to offshore platforms.

In a decisive move, India’s Finance Ministry has issued compliance show-cause notices to nine major offshore cryptocurrency exchanges, including industry giants like Binance, Huobi, and Kucoin. The government accuses these platforms of operating illegally within the country’s borders without adhering to local money laundering laws.

This development marks a significant step in India’s efforts to regulate the crypto industry, with a focus on enforcing compliance with the Prevention of Money Laundering Act (PMLA), 2002.

Compliance show-cause notices and URL blocking

The Finance Ministry of India served compliance show-cause notices to nine major players namely Binance, Kucoin, Huobi, Kraken, Bittrex, Gate.io, Bitstamp, MEXC Global, and Bitfinex. The nine were accused of allegedly violating the Prevention of Money Laundering Act (PMLA).

The notices demand an explanation for their non-compliance with the established regulations. Simultaneously, the ministry has urged the Information Technology Ministry to block the URLs of these exchanges, citing their illegal operations within the country.

This move underscores India’s commitment to bringing offshore crypto exchanges under regulatory oversight, signalling a significant shift in the country’s approach toward monitoring and controlling digital asset transactions. The lack of a specified timeframe or consequences in the issued notices leaves the crypto community and the exchanges in question in suspense, with potentially far-reaching implications for their operations in the Indian market.

Financial Intelligence Unit-India (FIU-IND)

India’s Finance Ministry emphasizes the necessity for virtual digital asset (VDA) service providers to register with the Financial Intelligence Unit-India (FIU-IND). This includes activities such as the exchange between virtual digital assets and fiat currencies, with obligations extending beyond physical presence in India.

While 31 service providers have registered with the FIU-IND, the ministry points out that several offshore entities serving a substantial Indian user base have failed to comply with the Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) frameworks.

The implementation of a 1% tax on crypto transactions in India on local exchanges has led to a notable migration of users to foreign platforms. Between February and July 2022, three to five million Indian users shifted to offshore exchanges, causing potential revenue loss for the government. A single offshore exchange reported a surge in sign-ups following the tax implementation, highlighting the impact of regulatory measures on user behaviour.

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Cathie Wood’s Ark Invest dumps GBTC for BITO; Meme Moguls token sale gathers pace

  • Cathie Wood’s investment firm Ark Invest has sold all of the Grayscale Bitcoin Trust (GBTC) shares it held. 
  • The firm bought 4.32 million of the ProShares Bitcoin Strategy ETF (BITO).
  • Meanwhile, the presale of new meme-based assets platform Meme Moguls has continued to attract investors.

Ahead of what could be a spectacular start to the year for crypto, Cathie Wood’s firm Ark Invest is making moves in the market with relation to its crypto related holdings.

Elsewhere, investors lifted by the recent developments in the sector are taking notice of potentially profitable positions. Among projects making waves in Meme Moguls, a token in presale that’s likely to dominate the forecast $6.1 billion meme market industry.

Cathie Wood’s Ark sells GBTC, buys BITO

One of the news headlines today is the move by asset management firm Ark Invest. 

According to details reported by Reuters, the Cathie Wood firm offloaded all of its Grayscale Bitcoin Trust (GBTC) shares. The firm then scooped about 4.32 million shares of the ProShares Bitcoin Strategy ETF (BITO). Ark has also sold shares of Coinbase (COIN).

The move comes as the crypto market anticipates the approval of the first spot Bitcoin ETF by the US Securities and Exchange Commission (SEC).

Ark Invest and 21Shares are also among the list of top asset managers and companies with Bitcoin ETF proposals before the SEC. 

The deadline for the SEC’s decision on Ark Invest’s proposal is January 10, and analysts are confident the regulator will give a nod to a number of the applications. It includes filings by BlackRock, Grayscale and Fidelity.

Anticipation is high across the crypto market and investors keen to seize on the opportunities likely to present during a bull rally are looking at various altcoins. One of these is likely to be Meme Moguls, as suggested by the rising interest in its presale.

Meme Moguls: Innovative meme-based assets trading and game platform

As investors make moves across the space, positioning ahead of a potentially defining bull market, a new narrative is picking momentum. Trading can be fun and fantasy meme trading brings that to the trader out to connect, learn, and earn as they buy, trade and sell meme assets.

This new project is Meme Moguls, which is outlining an innovative meme-based assets trading exchange and gaming platform.

Today, meme coins are an increasingly traded segment of the crypto market, with projects like Dogecoin and Shiba Inu inspiring traders. There’s also serious money to be made in this market.

Meme Moguls wants to bring these assets to the community within a play-to-earn ecosystem laced with numerous earning opportunities. Access to a new gaming experience could see holders of the native MGLS token put their skills to test, competing against moguls as they build their own standing.

According to the project’s whitepaper, apart from stake to earn, other ways the community can add to their wealth via MGLS will be through access to unique NFTs and moguls leaderboard rewards.

Meme Moguls presale races to stage 3

Investors are taking note that this community-driven project has 60% of the total supply of 3 billion MGLS reserved for early birds. A hint of how interest is surging ahead of its anticipated launch in early 2024 is the fast pace of the presale.

In just a few weeks, the Meme Moguls token sale has raced through two stages already. MGLS price has shot from the initial $0.0019 to $0.0025 in stage 3, and the presale page shows only a few tokens remain before the next price increase.

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