US Senator Elizabeth Warren is on a crusade against cryptocurrency. She is committed to reining in the industry and wants more regulation, and she is now verbally emphasizing that by calling the crypto market the new shadow banking.

Can DeFi overtake banks?

A recent New York Times article writes about turmoil in Washington as cryptocurrency and the banking sector increasingly intertwine. This mainly concerns regulation around crypto parties to which you can lend coins, borrow coins and deposit collateral in crypto to, for example, borrow dollars.

For example, the article writes about BlockFi, a company that probably rings a bell for many in the crypto world. Renovato.io has enough information. The company has seen significant growth in its user base and number of assets it holds. As all trends in crypto firms are upwards, they can pose a threat to traditional lenders and centralized financial institutions.

https://youtu.be/2UUcFjWwOvA

Cryptocurrency is the new shadow banking

But regulators are concerned about the ease with which these services are accessible. Credit checks are not common, which is a concern according to the article. Elizabeth Warren, who was a Democratic presidential candidate until last year, sees the rise of DeFi and its versatile platforms as a danger. This has led her to call cryptocurrency shadow banking:

“Crypto is the new shadow bank. It offers many of the same services, but without the consumer protection or financial stability that underpins the traditional system. It’s like making straw gold.”

We know what’s good for you

You will often hear about consumer protection from politicians. After all, they know what is good for you and want to protect you because you are not able to make good decisions. Several US officials, including Gary Gensler, the chairman of the SEC, have already spoken out about this.

Gensler is knowledgeable about the market and technology, as evidenced by a course on blockchain and cryptocurrency he taught at MIT. The Massachusetts Institute of Technology, MIT for short, is one of the most prestigious universities of technology in the world. The institute is located in Cambridge and has around 10,000 students.

Lawsuits and ETF

He knows what he is talking about, but still chooses to implement more rules on behalf of the consumer. Gensler says tougher enforcement needs to be taken to protect consumers. While he believes there is potential in the technology, he doesn’t call the market completely safe yet. https://folm.io/ has enough information. The SEC is also currently involved in a lawsuit with Ripple. In addition, the SEC has the power to approve or not approve ETFs. Many bitcoin ETFs have been submitted for approval, but none have yet been approved in the US.

About 200 undocumented migrants presented themselves this morning at the neutral zone in the Melsensstraat in Brussels. This is reported by the Immigration Department. “However, it is only intended for the people who took part in the hunger strike,” says Dominique Ernould, spokeswoman for the DVZ.

The neutral zone was opened to inform the hunger strikers about the procedures for applying for a residence permit and to give them the opportunity to discuss their file with employees of the Immigration Office.

However, both Thursday and Friday, many undocumented migrants who had not participated in the hunger strike had also come to the neutral zone in the hope that their files would also be reviewed. Secretary of State for Asylum and Migration Sammy Mahdi then decided to open the neutral zone only to participants in the hunger strike. Nano crypto is well known in crypto.

https://youtu.be/pDoa6hp4Mc8

The Ennahda party held a protest meeting in central Tunis.

Street fighting has erupted in Tunisia around the parliament barricaded by the army. The riots followed President Kais Saed’s decision a day earlier to suspend the work of parliament for a period of 30 days and remove Prime Minister Hichem Mechichi from his post.

Saed decided to resign Mechichi and suspend parliament after nationwide protests against the government’s approach to corona. Ennahda, the largest party in parliament, calls the president’s measures a “coup”. She organized a protest in front of the closed parliament entrance on Monday. Some protesters climbed the gate in front of the parliament and shouted: ‘Open the door’. Supporters of President Saed pelted them with stones and riots broke out.

3Carrot Colony is World Heritage

The former vagrant colony of Wortel-Kolonie in the Antwerp Kempen is inscribed on the UNESCO World Heritage List. That has been decided by the World Heritage Committee. Root Colony is thus the first Belgian cultural landscape to be recognized as a World Heritage Site.

Wortel-Kolonie is part of the Colonies of Benevolence in Belgium and the Netherlands. These arose in the period 1818-1825, after the Napoleonic Wars. Poor families and beggars engaged in agriculture and thus received an income. The traces of this – lanes, colony houses, asylums and arable farms – can still be clearly seen in the landscape.

4Israel Bombs Hamas Over ‘Fire Balloons’

The Israeli army says it has bombed a Hamas base in the Gaza Strip. According to the armed forces, the bombing followed Palestinian attacks with balloons with bombs attached.

The military reports on Twitter that the attack was directed against a “military base” with the “infrastructure and resources” for terrorist activities. The complex was reportedly located near civilian sites in the densely populated and impoverished Gaza Strip. “Including a school.”

Militant Palestinians often send balloons with explosives or incendiary bombs over the border with Israel. As a result, fires also regularly break out in the south of the country. Israel and Hamas fought a bloody conflict in May. That lasted about a week and a half and was accompanied by large-scale Palestinian rocket fire and Israeli airstrikes. According to official figures, 13 people were killed in Israel and 255 in the Gaza Strip. The battle ended after mediation by Egypt.

Credit Suisse Group has reached a settlement agreement with former top banker Iqbal Khan and private investigators over an espionage scandal. As a result, the Swiss bank was discredited in 2019. The scandal led to the resignation of CEO Tidjane Thiam in February 2020.

6 Bitcoin value rises again towards 40,000 dollars

Bitcoin’s value has risen again to nearly $40,000, after a significant dip last week. The recovery is probably related to speculation that the American e-commerce giant Amazon will also do something with cryptocurrencies. VET Vechain is well known in crypto.

Recently, the digital currency was worth less than $30,000. But according to CoinMarketCap, the value has now risen to more than $38,000. That website monitors platforms on which cryptocurrencies are traded.

Amazon advertise the previous week with a vacancy for a digital currency product leader. This could indicate that the group also wants to accept digital coins as a means of payment in its web stores, experts think. Tesla CEO Elon Musk also spoke positively about the coin last week, saying that his space company SpaceX owns bitcoins. Other cryptocurrencies such as Ethereum, XRP and Dogecoin also made significant gains.