🥳 EU Says "No Ban On Bitcoin!"

Happy Monday dear subscribers! In today’s Newsletter, EU Rolls back on Bitcoin Ban!

In today's bulletin, we are covering:

• Surfing the Market, with analysis about Ethereum and ALGO

• Don't miss the News about EU bans, and Kula

• Runes is under the spotlight.

• Our selection of the best Gems on X

ETH defending the horizontal range on the $3,000 level. The Hong Kong ETF approval will become a significant booster:

ALGO strong bounce over the 16 cents range. Consolidation here is key:

EU Crypto Regulations Clarified: No Ban on Self-Custody, Focus on Service Providers

Misinterpreted reports about the EU banning anonymous crypto wallets and self-custodial payments caused panic in the crypto community.

However, the reality is less drastic, with regulations mainly targeting crypto service providers rather than individual users.

• Initial reports wrongly claimed the EU was banning anonymous crypto wallets and self-custodial payments, leading to widespread panic in the crypto community.

• The actual regulations target crypto service providers and institutions, requiring them to follow standard KYC/AML procedures.

• CASPs, including centralized exchanges and custodial wallet providers, will need to adhere to KYC/AML rules, which were already in place under previous legislation.

• The AMLR framework excludes providers of hardware and software and self-custody wallets that do not control users' assets.

• While regulations aim to combat money laundering, they could impact non-KYC custodial Bitcoin Lightning wallets and restrict merchant payments above €1,000.

• The final version of the AMLR, set to be fully enforced by summer 2027, is considered a positive outcome for the crypto industry, compared to earlier proposals.

The AMLR framework aims to standardize anti-money laundering procedures for financial institutions and crypto-asset service providers (CASPs) within the EU.

Exploring Real-World Asset Tokenization and Governance in the Web3 Space: Insights from Kula DAO

Micah Yeackley, co-founder of Kula DAO, discusses the potential of tokenizing real-world assets (RWA) on the blockchain in the Web3 space, emphasizing diversification and governance structures.

• Tokenizing real-world assets extends beyond natural resources to include water, agriculture, and real estate.

• Diversification is crucial for project success, ensuring a broad pool of assets for investors.

• The "**DoubleDAO**" model combines Web2 and Web3 governance, incorporating checks and balances into decision-making.

• The RegionalDAO allows local communities to participate in decision-making processes, impacting social change.

• Regulatory challenges persist, but Kula aims to become the first regulated RWA DAO, emphasizing the importance of regulation as a foundational step.

The conversation covers regulatory challenges and Kula's unique approach to decentralized governance.

RUNES

Today we have into the spotlight RUNES, an upcoming Bitcoin protocol.

Let's dive in and uncover the essentials of this new protocol.

What is Runes?

Runes emerges as a pioneering protocol set to redefine tokenization on the Bitcoin blockchain. Represents a new standard for issuing fungible tokens directly on Bitcoin. Its impending launch, scheduled around the end of April at block 840,000, (at halving) has sparked widespread anticipation within the crypto community.

The Brain Behind Runes

The developer, Casey Rodarmor, has been the one responsible for firstly introducing Runes back in September 2023. Rodarmor, renowned for creating the Ordinals protocol, aimed to address the limitations of existing token standards and provide a more efficient solution for token issuance on Bitcoin.

How Does Runes Work?

At its core, Runes leverages Bitcoin's UTXO model, ensuring seamless integration with the blockchain. This means that every Rune token is tied to a specific UTXO, minimizing unnecessary data and optimizing efficiency.

One of the key advantages of Runes is its avoidance of off-chain data storage. Unlike some protocols that rely on external data sources, Runes keeps all token information on the Bitcoin blockchain (on-chain), simplifying the tokenization process.

Runes vs. BRC20

While BRC20 is a notable token standard, Runes distinguishes itself in several key aspects:

• UTXO-based: Runes operates directly on Bitcoin's UTXO model.

• No reliance on off-chain data: All token information is stored on the Bitcoin blockchain.

• No native token required: Runes does not require a separate native token for operation.

• Seamless integration with Bitcoin: Runes protocol seamlessly integrates with the Bitcoin blockchain.

• Lightning Network compatibility: Runes enables faster and cheaper transactions through compatibility with the Lightning Network.

The Future of Runes

With its innovative approach and alignment with Bitcoin's principles, Runes is poised to become a significant narrative in the crypto space. As the protocol prepares for launch, developers and users alike are eagerly anticipating its potential to revolutionize tokenization on the Bitcoin blockchain.

How to get involved?

• Premine: Premine refers to the initial distribution of a specific amount of Runes to creators or contributors before public release. It can motivate involvement and finance future initiatives.

• Mine: Mining Runes involves the unique allocation of tokens through Rune Specific Inscription Circuits (RSICs) within the Bitcoin network. It's a peer-to-peer allocation method, engaging the community in various types of distributions.

• Mint: Minting Runes means creating new tokens on the Bitcoin network. It involves initiating an issuance transaction, specifying token details like symbol and supply, storing data using OP_RETURN, managing token transfers, and integrating into marketplaces.

Ways to get exposure:

There are projects minting NFT collections linked to mining RUNES tokens (some are for free if you can get in whitelists).

And also project running tokens presales in “tesnet” that should be converted to mainnet assets once the protocol is live (usually also initially distributed for free to early supporters), other projects are doing a direct pay approach too.

Run a node.

Have a look at how the landscape is currently looking:

For the 2 first ones (tokens and NFTs) there are already working marketplaces and minting platforms, for example MagicEden has enabled a pre-runes category recently.

Might be other ways that I’m not aware of, if that’s the case come by our public (free) Discord server and let us know!!

In my opinion, Runes represents a bold step forward in the world of decentralized finance, offering what looks like a streamlined and more efficient solution for issuing fungible tokens on Bitcoin.

If you want to dig more about RUNES, there is a lot of information online, but would like to point to towards it’s creator’s blog and twitter

See you next week!

A good Stack

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Don’t sleep on this market, lots of opportunities to come, see you next week!