• Crypto developers have exposed flaws in Societe Generale’s euro stablecoin.
• Brazil is investigating Binance for illegal derivatives offerings.
• Venture capital firms are distancing themselves from OPNX funding.
Crypto Developers Expose Flaws
Crypto developers recently uncovered „absolutely horrible“ flaws in a euro stablecoin developed by French banking giant, Societe Generale. The cryptocurrency was designed to bring more stability to the crypto markets, but its underlying code had glaring security issues. The findings were made public via an open-source audit of the coin’s codebase and sparked a debate on the importance of rigorous testing before releasing any digital asset into circulation.
Brazil Investigates Binance
Brazil’s Securities Commission (CVM) has launched an investigation into allegations that cryptocurrency exchange Binance offered illegal derivatives trading on its platform without proper authorization from local regulatory bodies. CVM has requested information from the exchange and will look into whether it violated any laws or regulations by offering such services in Brazil without approval from the regulator.
Venture Capital Firms Distance Themselves From OPNX Funding
At least two venture capital firms—Nascent and DRW—have distanced themselves from OPNX, a cryptocurrency exchange which recently revealed several major investors including AppWorks, Susquehanna (SIG), DRW, MIAX Group, China Merchant Bank International, Token Bay Capital, Nascent and Tuwaiq Limited. A spokesperson for DRW confirmed to Coindesk that they did not invest in OPNX while Nascent also clarified that it had no involvement with them beyond discussions regarding potential investments prior to their launch.
Fed Governor Highlights Benefits & Risks of Tokenization & Smart Contracts
Fed Governor Lael Brainard recently spoke about the benefits and risks associated with tokenization and smart contracts during a virtual event hosted by MIT Media Lab Digital Currency Initiative (DCI). Brainard highlighted how these technologies can improve financial inclusion as well as reduce transaction costs but warned about their potential for misuse due to inadequate controls or oversight by regulators. She encouraged industry stakeholders to work together with regulators so that appropriate safeguards can be put in place that protect consumers as well as facilitate innovation.
