As an observer, the schadenfreude around crypto is unreal. If you want to see crypto fail, and jump on opportunities to spread FUD, to eventually prove your position and briefly smugly walk around saying "I told you so", then that's disgraceful.
Binance temporarily suspends USDC withdrawals
141–150 of 194 posts
Re: Binance temporarily suspends USDC withdrawals
#142Earlier quoted context omitted.
I have to disagree. That oversight in theory is good. In practice it turns out to be: "The OFAC and FATF hate your people as a whole. We cannot service you anymore. Kthxbai." I will trust regulators when regulators do not exclude people where systems would be most useful. It all boils down to: if you're not credit worthy, you must be a terrorist, capomafia or at best, a tax evader. See what happened to Uphold[0], whi…
'your people' has nothing to do with oversight of Binance. But I agree that oversight could be more precise in its goals and execution, however, and this is a big issue, it requires a well functioning, non-corrupt government in all countries participating backed by a non-corrupt police force and local financial authorities. This is a problem in a large part of the world, and even in countries where these factors are…
> it requires a well functioning, non-corrupt government in all countries participating backed by a non-corrupt police force and local financial authorities.
In the current times, that's nothing realistically accessible to Argentinian and Venezuelan people.
Too much "ideal" conditions need to happen at the same time. What we need are practical solutions.
Re: Binance temporarily suspends USDC withdrawals
#143Earlier quoted context omitted.
I've seen a bank branch being temporarily out of cash and hence pausing withdrawals in a relatively functioning economy before. Happens. ATMs at my bank in Germany were down because of a strike.
But we still could transfer money out to other accounts at other banks, couldn't we? And that is what those crypto exchanges are blocking.
Crypto exchanges need sophisticated hot/cold wallet management for security. Hot storage is their equivalent to cash on hand. Hot storage can be quickly depleted.
If a crypto exchange just disables withdrawals of one asset, users technically still can sell it for BTC, ETH or another stablecoin and withdraw that.
Sometimes my banking website is down for maintenance.
Re: Binance temporarily suspends USDC withdrawals
#144Earlier quoted context omitted.
Because such a company would need to be regulated. I'm not against regulation, the problem is that once you get regulation you also accept to use the legal currency exchange rate, which is expensive for most use cases. Let me provide accurate, real-world examples: - 1 USD = 171.276 ARS (according to XE's website, this is the official exchange rate). - 1 USD = 311.25 ARS (according to Binance's P2P exchange, this is t…
The legal currency exchange rate in Argentina is a local problem, not an international one. This is not rare in countries with weak local currencies but it is a bit strange to blame the issuer of the currency that you chose to use privately for your troubles. In the former SovBloc countries the USD and the DM were the currencies of choice for the black market, and the official exchange rate was something ludicrous (y…
Well, I was just pointing out that if Binance were to fall down (and by extension, its P2P functionality), it'd make it harder for the people to access exchange rates that have made their lives easier, the easiest they have been.
> One problem with looking at the world through the lens of blaming others for local issues that you declare them in essence unfixable. If you find a way to make such a problem a local one you can actually do something about it.
I'd not say foreign actors like the U.S. Government are meddling with Argentinian or Venezuelan economy, but I'd say that if the U.S. Government were to kill Binance, that has negative impact on this side of the world (which is my original comment).
The core problem with this economy is that most people are uneducated about political and economical issues. All they want are the local government benefits. The state of the economy affects us all local residents, but without the support of the majority I cannot change it singlehandedly.
(please don't interpret my comment as defeatist, it's only there's so much a single person can do).
Re: Binance temporarily suspends USDC withdrawals
#145In related crypto news, Sam Bankman-Fried has been arrested: https://www.bbc.co.uk/news/business-63953096 and South Korea thinks they know where Do Kwon is https://www.bbc.co.uk/news/business-63940181
Re: Binance temporarily suspends USDC withdrawals
#146What I fear is that U.S. Government is meddling with the only exchange that works properly in Venezuela and Argentina, especifically for the P2P trade. I know this tweet is not about P2P, but let me explain. In Venezuela and Argentina, the parallel markets are the true king of the economy. You have to exchange money using P2P exchanges if you want to barely have decent personal finances, you know, to access good curr…
A use case indeed for crypto, Especially if your friends and customers are from Argentina, Nigeria, Venezuela, Russia, Ukraine and Iran who's currencies have been totally de-vauled and close to worthless. One can use that to send USDC worldwide, instantly, cheaply and can exchange that to their local fiat currency. USDC doesn't require an exchange at all, only if you are exchanging it to fiat. Both pro-crypto and ant…
You're mixing so many things up that I don't know where to start.
But if your customers are in Venezuela, Russia or Iran and you use stablecoins to work around US or international sanctions, you're facing pretty serious legal troubles.
If ending up in jail is a valid use case for you, sure.
Re: Binance temporarily suspends USDC withdrawals
#147Earlier quoted context omitted.
I have to disagree. That oversight in theory is good. In practice it turns out to be: "The OFAC and FATF hate your people as a whole. We cannot service you anymore. Kthxbai." I will trust regulators when regulators do not exclude people where systems would be most useful. It all boils down to: if you're not credit worthy, you must be a terrorist, capomafia or at best, a tax evader. See what happened to Uphold[0], whi…
There are plenty of ways to transact money if you’re not creditworthy. What’s “missing” is a non-fraudulent way to get credit if you’re not creditworthy, and that has nothing to do with US enforcement of fraud and everything to do with the fact that only fraudulent lenders will lend to non-creditworthy people.
> everything to do with the fact that only fraudulent lenders will lend to non-creditworthy people.
Exactly, another thing that happens is that the ways money is exchanged for black markets[0] is also the way terrorists and tax evaders would use. So, we share the same "highway" and get classified as such.
But we aren't terrorists or tax evaders, we just need to make our lives less expensive.
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Re: Binance temporarily suspends USDC withdrawals
#148Earlier quoted context omitted.
FTX a few days before going belly up: "Stablecoins: processing. Banks are closed for the weekend, though; USD stablecoin creations/redemptions might be slower until wires clear tomorrow, especially for some coins/chains." https://twitter.com/FTX_Official/status/1589510763328450561 I also I would like to add that: - USDC on Binance is not 1:1 backed by USDC, but by another stable coin such as BUSD or perhaps even USDT…
> - USDC on Binance is not 1:1 backed by USDC, but by another stable coin such as BUSD or perhaps even USDT. Both of them are much harder to convert into real dollars! This is not true in any way. First, you do not hold USDC on Binance, you hold BUSD. Your USDC deposits are automatically converted to BUSD. Neither USDT nor BUSD is "hard" to convert to real dollars. Swap them to USDC on Uniswap and do whatever you ple…
> Your USDC deposits are automatically converted to BUSD
Guess this is not new, but it seems like an obviously horrible idea!! The minute people lose confidence, the value of BUSD go do down and people will withdraw in not-BUSD. Meaning they will have to make more BUSD to cover the difference, devaluing the BUSD more, causing a spiral.
What am I missing here? Hmm..
Re: Binance temporarily suspends USDC withdrawals
#149Earlier quoted context omitted.
> - USDC on Binance is not 1:1 backed by USDC, but by another stable coin such as BUSD or perhaps even USDT. Both of them are much harder to convert into real dollars! This is not true in any way. First, you do not hold USDC on Binance, you hold BUSD. Your USDC deposits are automatically converted to BUSD. Neither USDT nor BUSD is "hard" to convert to real dollars. Swap them to USDC on Uniswap and do whatever you ple…
> If you go to a bank, and you cannot withdraw USD at that moment, but you can withdraw EUR - does that mean the bank is insolvent? What kind of bank would this happen at? A bank in the EU where you're trying to withdraw USD?
If you put in USD and EUR had turned worthless..
Re: Binance temporarily suspends USDC withdrawals
#150Earlier quoted context omitted.
BUSD is another stable coin pegged to USD, like USDT and USDC. What they're saying is that you can't withdraw USDC, but you can withdraw any of the other two.
The other two, which conveniently both have ties back to Binance. It feels a bit like saying "Unfortunately, converting Facebook Dollars to Apple Dollars is currently not possible due to minor technical difficulties. However, you can still easily convert to Oculus Dollars or Instagram Dollars..."
Because I can't edit the above comment anymore: Sorry, my bad. I mixed up Binance and Bitfinex there. So please disregard what I said about a connection between Binance and Tether.
Didn't want to introduce another conspiracy theory here...