Crypto staking on Stader; anti-money laundering provisions now on crypto
Read about this week's developments, news, and trends in the Web3 ecosystem.
Friday March 10, 2023,
2 min Read
Crypto staking on Stader Labs
Amitej Gajjala, an entrepreneur, aims to simplify crypto staking for new and experienced users through his startup, Stader Labs.
Currently, the platform helps over 70,000 users—of whom 30,000-40,000 are active stakers—in staking over $138 million worth of cryptocurrency.
Stader's mission to simplify the staking process attracted the attention of several Web3 investors, leading to a successful funding round in January 2022, where the startup raised $12.5 million at a valuation of $450 million.
Stader allows users to pledge their tokens to a validator to help secure a blockchain network and validate transactions.
Stader does not custody these tokens. Instead, the tokens are locked and cannot be withdrawn whenever a user wants, ensuring the network's security remains intact.
End users receive staking rewards from a portion of the transaction fees generated by the network.
Based on the amount staked, Stader issues a representative synthetic token that can be used to generate liquidity in secondary marketplaces or as collateral on marketplaces for lending or derivatives.
Anti-money laundering for crypto
In the latest step to tighten oversight of digital assets, the Indian government has imposed money laundering provisions on the cryptocurrency sector.
A Finance Ministry notice revealed that crypto businesses—exchanges, custodians, wallet providers, and others—will come under the Prevention of Money-laundering Act, 2002 (PMLA)
The laws will apply to any exchange between virtual digital assets and fiat currencies; exchange between one or more forms of virtual digital assets; and the transfer of digital assets.
This move aligns with the global trend of requiring digital-asset platforms to follow anti-money laundering standards similar to those followed by other regulated entities like banks or stock brokers.