Brace yourself for the regulatory blows to Binance in Europe, the captivating yet contentious iris-scanning endeavour of Worldcoin, and a potential bill that may send shockwaves through the very foundations of stablecoin structures.

Welcome to the wildest ride in the crypto.

Disclaimer: Not financial nor investment advice. Any capital-related decisions you make are your full responsibility.

Will Binance get the boot in Europe? 🥾 

As the saying goes, when it rains, it pours – a phrase Binance knows all too well right now.

After being bombarded with lawsuits in the U.S, many thought the exchange would weather the storm thanks to its global presence. Yet it seems the storm clouds are gathering over Europe, too.

In the news 📰 

• Binance’s woes deepen as it pulls its application for a crypto license in Germany, adding to a growing list of regions where it lacks regulatory approval. 
• The exchange has already been asked to cease operations in the Netherlands and Belgium and deregistered from the UK and Cyprus. 
• Meanwhile, in the U.S., it finds itself in the legal crosshairs of the U.S. Commodity Futures Trading Commission (CFTC). 
• It remains uncertain whether Binance will be forced to retreat to Asia – where it's gearing up to launch in Japan come August.

Predictions 🔮 

We see the struggles of centralized exchanges positively impacting decentralized exchanges like DYDX and GMX.

Cryptonary’s take 🧠  

Binance may still have an ace up its sleeve! In less than 18 months, the company will be eligible to apply for an EU-wide license under the incoming Markets in Crypto-Assets framework set to replace national-level crypto legislation by the end of 2024. 

This license could be a lifeline for Binance, opening the gates to the EU market. If you’re a BNB holder, keep an eye on these developments – your investment depends on it.

Scan your iris, pocket $50; what’s the catch? 🪤

Worldcoin, the crypto venture by Sam Altman, the same Sam Altman that OpenAI (think ChatGPT), just released its WLD token! Worldcoin wants humans to prove their humanity verifiably. So, how do you do that? Well, scan and store your Iris pattern with Worldcoin. 

In the news 📰 

• While Worldcoin's iris-scanning Orbs might sound far-fetched, the project is gaining traction and is now looking to scale globally. 
• However, its novel approach has not been without controversy. It has already taken a 33% hit due to concerns over its tokenomics
• There are serious questions over user privacy and the handling of biometric data, prompting an investigation by the UK's data regulator. 
• Ethereum co-founder, Vitalik Buterin, has also voiced his scepticism, highlighting four key issues with the project. 
• On the flip side, Worldcoin's success has been a boon for Optimism, which has now outpaced rival Arbitrum in daily transactions.

Predictions 🔮 

As Worldcoin grows, expect a flurry of regulatory challenges. But beyond that, we forecast a bleak future for its token value – buyer beware.

Cryptonary’s take 🧠 

Worldcoin appears to be a solution in search of a problem; there are privacy red flags, and it has predatory tokenomics. Simply put, it is probably not worth it to go ahead and scan your eyeball with them – but do you!

We give Worldcoin points for being forward-thinking, but we think WLD will turn out to be an horrendous token.

Stablecoin bill trudges forward amidst political tug-of-war

On the regulatory front in the U.S., the House Financial Services Committee advanced a stablecoin bill to provide a regulatory framework for stablecoins, but there are a few hiccups. 

In the news 📰  

• The bill currently under discussion allows the U.S. Federal Reserve to set requirements for issuing stablecoins while still respecting the authority of state regulators.
• There are concerns that the NDAA bill, if passed, could enforce KYC requirements over stablecoins like USDC & USDT – but details remain sketchy.
• But don’t get your hopes high; the odds of passing the stablecoin bill remain slim as the White House, Democrats and Republicans continue to disagree on its direction.

Predictions 🔮 

The stablecoin bill is less of a concern than the NDAA bill. If companies like Circle were forced to add KYC to their offerings, this could trigger a shift to decentralized stablecoins or Non-USD stablecoins that sidestep KYC.

Cryptonary’s take 🧠 

While stablecoin regulations in the United States are necessary, we worry about the potential unintended consequences of the NDAA bill. With companies like Circle and Tether remaining silent on the proposed provisions, it's hard to gauge the exact impact on them or the level of their support for the current bill. 

Both bills could also negatively impact DAI, largely backed by USDC. If you're trading MKR, keep your ear to the ground for developments on these bills – they may just sway its price.

And until we bring you another crypto news round-up next Friday, stay winning!

Cryptonary, out!