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MakerDAO aims to swap local South Korean currencies with stablecoin Dai

Namrata Shukla



MakerDAO aims to swap South Korean local currencies to stablecoin Dai
Source: Pixabay

MakerDAO, the issuer of Dai, recently announced a new program in South Korea. This new program follows MakerDAO’s initiative with VANTA, a decentralized network, to encourage the adoption of Dai.

This new initiative will include collaborating with government projects and will involve partners like VANTA and South Korea-based HYCON [Glosfer], a leading blockchain technology and services company, reported bitnewstoday.

Most South Korean cities have their own local currencies to boost local economies. The government project will include switching from these local currencies to cryptocurrencies, owing to its transparency and security criteria.

The partnering company, HYCON [Glosfer], previously partnered with the nation’s government to create Nowon Coin, the first local currency in the world. VANTA Network is supported on such local currencies, and will provide API support that would enable local business owners and enterprises to connect with their local community.

MakerDAO could use this opportunity offered to service providers like VANTA to swap local currencies to Dai stablecoin. VANTA accepted Dai for its pre-sale and was planning to bring the cryptocurrency into its ecosystem.

Recently, investors and developers who contributed to MakerDAO were disputing another increase to the amount charged to users of its U.S. dollar-pegged stablecoin, Dai, reported Coindesk. Dai has been trading under $1 on exchanges and hit $0.96, its lowest price on prominent exchanges like Coinbase, reported Coindesk.

Dai is issued through an open-source software which uses a stability fee that charges an outstanding fee proportional to the amount of Dai returned by the user. The fees can be paid in Dai or MKR token. The holders of MKR tokens also participate in decision-making and functioning of the protocol that produces Dai and “stake” their token in votes, noted the publication.

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SEC’s harsh crypto regulations would drive innovation away from the US to Asia, says Fred Wilson




SEC's harsh crypto regulations would drive innovation away from the US to Asia, says Fred Wilson
Source: Pixabay

Circle-acquired Poloniex, one of the leading cryptocurrency exchanges in the world, announced the geofencing of nine assets on its platform recently. The reason revealed by them was the uncertain regulatory climate in the US, leading them to take a cautionary step fearing the Securities and Exchange Commission’s [SEC] retribution.

Fred Wilson, the co-founder of Union Square Ventures, had recently voiced his opinion that the regulatory body’s ruling to delist coins in the US crypto exchanges was very damaging. He believed that hostile policies would eventually drive away innovation from Silicon Valley, which is the “global epicenter of tech” to Asian countries. He tweeted,

“In 5-10 years when we look back and consider why the next big tech sector centered itself in Asia and not in the US, it will be the SEC’s unwillingness to create new rules to regulate new assets that will be the cause”

Citing Coinbase as an example, Wilson stated that the “most trusted/compliant/secure/safe” exchanges were based in the US. So, according to him, driving trading or liquidity to Asia is “detrimental to safety and security”.

Preston Byrne attorney at Byrne & Storm, PC responded to the above tweet stating that “alleged misconduct” in Asia would be harmful to the entire crypto-space. He emphasized that the major threat to Bitcoin adoption was the “bad actors” who need to be identified and eliminated.

Calling for the need to monitor trading regions and markets, Byrne posted,

“95% of trading volume is faked. The Bitfinex/Tether saga is insane and only just getting started. If crypto is going to be adopted, we need to have more trust in our trading venues. That requires close supervision of trading venues and markets.”

Ari David Paul, the founder of BlockTower Capital, also reacted to the post,

“Hopefully we’re not headed toward a world where voluntary commerce can be stamped out globally. So for a global asset, this will always be an issue. Fortunately, you don’t need to care. $1b in CME future volume is real and traceable. Manipulation is temporary by nature.”

Responding to the above tweet, Byrne said that $3 billion of Tether [USDT] was what kept Binance and Finex “afloat” and contributed significant volumes and were currently under the heavy check by State of New York. He also added that the aforementioned platforms were a “hair’s breadth away” from an investigation regarding fraud.

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