Bring Back Tone Vays: Binance Wallet, Crypto Tax, and the Future of AI

“Bring Back Tone Vays” — a news podcast with the ForkLog editorial team and friends about the week’s top industry events.

Topics: Binance unveiled a Web3 Wallet, competition among centralized crypto exchanges, taxation of digital assets in Ukraine, Coinbase blockade in Kazakhstan, and AI news.

Participants: Lena Jess, Vasily Smirnov.

Special guest: Odysseus, helmsman Grimace.

Host: Aremefe

Binance’s Web3 Wallet

The cryptocurrency exchange Binance launched its own Web3 wallet. The new service is available primarily in the platform’s main trading app. The wallet’s feature is the use of multi-party computation, splitting the private key into three parts stored on different servers. This solution theoretically reduces the risk of seed-phrase loss (and raises questions from a decentralization perspective).

According to the documents, the use of the wallet is regulated “in accordance with Hong Kong law.”

Competition Among Exchanges

Analytical firm 0xScope has published a report on the state of the centralized-exchange market. According to the data, Binance remains the leader in trading volume, but its share is shrinking: 51.2% at present versus 54.6% in October 2022.

OKX (13.4%), Bybit (9.6%), Bitget (7%), and MEXC (6.9%) form the “second tier” of exchanges with the main market share.

Missed Revenue

The Ukraine Economic Outlook research group has published a report indicating that Ukraine, from 2016 to 2022, lost more than $52.8 billion in taxes due to the lack of regulation in the cryptocurrency market.

Deputy Minister of Digital Transformation Alexander Bornyakov responded to the publication:

“Large capital tends to stay where transparent regulatory rules are in place, where state mechanisms for protecting property rights operate effectively, and where tax incentives are in place,” he wrote.

Coinbase Problems in Kazakhstan

In Kazakhstan explained the blocking of the cryptocurrency exchange Coinbase, whose site has been unavailable since mid-September.

According to a statement from the Ministry of Culture and Information, the platform did not have the necessary license from the Astana Financial Services Authority (AFSA).

OpenAI Developments

OpenAI chief Sam Altman, at the DevDay conference, told about new products and updates for the company.

A Turbo mode for GPT-4 will be available with a context window of 128,000 tokens. This means that in a single query the network can generate texts roughly about 300 pages. The AI knowledge base was updated to April 2023.

Also at the presentation was introduced the Assistants API, designed to simplify third-party developers’ creation of their own AI-powered applications.