Crypto Guides, Knowledge & Insights

Visa and Mastercard Delay Cryptocurrency Partnerships Amid Regulatory Uncertainty

American payment processing companies, Visa and Mastercard have delayed launching new partnerships with cryptocurrency firms due to the increased regulatory scrutiny in the industry, caused by a series of high-profile bankruptcies. The recent move marks a departure from the warming relations between the payment giants and cryptocurrency firms in the past, as the popularity of cryptocurrencies exploded.　　Both companies were exploring options with digital assets, with Mastercard examining payments via USD Coin, and Visa targeting stablecoin settlements in the weeks leading up to the recent development. The decision to delay the launch of certain products and services related to cryptocurrency comes amid an uncertain regulatory environment for the industry in the wake of the collapse and bankruptcies of centralized digital assets custodial firms such as Celsius, FTX, Three Arrow Capital, Voyager Digital, and others within the past year.　　Top Stablecoins　　Tether 　　USDC 　　Binance USD (BSUD) 　　DAI 　　Reports suggest that the delays are not a reflection of the core business of Visa and Mastercard, which sources say remains strong. Instead, the delays have been attributed to the unclear regulatory environment for cryptocurrency. The move comes as a surprise, as both companies have been warming up to the industry for some time, with Visa recently

2023-03-01Deep Dive

“Guilty” FTX Executive Will Now Cooperate With Authorities In Probe Against SBF

The U.S. Securities and Exchange Commission (SEC) has alleged that a former FTX director of engineering actively participated in a scheme to deceive multiple cryptocurrency investors. The individual reportedly withdrew millions of dollars from the exchange for personal use.　　Nishad Singh Pleads Guilty To Charges　　Former FTX director, Nishad Singh, has pleaded guilty to fraud charges brought by U.S. prosecutors who are investigating the now-defunct FTX conglomerate. Singhs attorney stated during the proceeding that his client had entered into an agreement to plead guilty to three counts: one count of wire fraud, one count of conspiracy to commit wire fraud related to FTX customers, and one count of conspiracy to commit commodities fraud. The hearing was held in a federal court in Manhattan.　　The SEC alleges that Nishad Singh played an active role in deceiving FTXs investors and engaged in activities that led to his receipt of approximately $6 million from FTX, which he used for personal purposes such as purchasing a multi-million-dollar mansion and making contributions to charitable organizations. According to reports, Singh has agreed to a bifurcated settlement related to the SECs accusations, which is currently awaiting approval by the court.　　It has been reported that Singh had a close relationship with

2023-03-01Deep Dive

Stablecoin Supply Declines Despite BTC And ETH Gains

Bitcoins impressive 43% rise and Ethereums 38% gain in 2023 have not ignited a larger-scale investment in other cryptocurrencies, such as stablecoins. According to major stablecoin indicators, a significant amount of capital remains inactive. The stablecoin supply, which is a crucial mechanism used to purchase many crypto assets, has been declining. When the stablecoin supply increases, it suggests that there is more capital to purchase crypto assets, while a decrease implies the opposite.Aggregate supply net position change of top stablecoins declines　　The aggregate supply net position change of the top four stablecoins (USDT, USDC, BUSD, and DAI) has been negative since Sept. 14 and has been trending lower since Feb 7. For context, the aggregate supply net position change for stablecoins was positive between February and March 2022, indicating strong demand for digital assets during that time period. The decrease in stablecoin supply suggests that investors are cautious, despite the positive performance of BTC and ETH.The stablecoin supply ratio (SSR) increases, and buying power decreases　　The stablecoin supply ratio (SSR), which measures the ratio of bitcoins market cap to the market cap of stablecoins, has been increasing. This indicates that the buying power of stablecoins has decreased relative to BTC. The current

2023-02-28Deep Dive

Ripple Lawyer Suggests US SEC Chair To Recuse Himself Over Bitcoin Claim

US SEC Chair, Gary Gensler, has caused a stir in the crypto market with his recent comments on Bitcoin (BTC). He has been criticized by industry leaders for labeling altcoins as “Security”.　　US SEC Chair Forming Vague Narrative？　　After Gary Gensler made remarks about Bitcoin, Ripples Chief Legal Officer Stuart Alderoty stepped in to correct him. According to Alderoty, Gensler had stated that all digital assets, with the exception of Bitcoin, are unregulated securities. Alderoty suggested that Gensler should abstain from voting on any future enforcement cases that involve this issue. He argued that Genslers comments show that he has prejudged the outcome of the Antoniu v. SEC (8th Cir. 1989) case.　　To clarify, Stuart Alderoty responded to Gary Genslers recent comments on Bitcoin. Alderoty pointed out that Gensler had characterized all digital assets except for Bitcoin as unregulated securities. Alderoty then went on to suggest that Gensler should not vote on future enforcement cases related to this issue due to his prejudgment of the outcome of a specific case.　　The future of XRP, one of the biggest crypto assets, is at stake as Ripple and US SEC continue their ongoing legal battle. The awaited Summary Judgment in the XRP lawsuit is expected to

2023-02-28Deep Dive

Coinbase Delist Binance BUSD Amid Regulatory Scrutiny Beginning On March 13

Coinbase, the famous cryptocurrency exchange, stated on February 27, 2023, that dealing of the Binance USD (BUSD) stablecoin will be suspended starting March 13, 2023. The move follows the New York State Department of Financial Services (NYDFS) recent governmental assault on the stablecoin on February 13, 2023. Paxos, the business in charge of the BUSD stablecoin, verified in a news statement that the NYDFS had ordered it to cease releasing the stablecoin. The bitcoin community has had varied responses to Coinbases statement.　　Coinbase Suspends BUSD Transactions Coinbase stated on Twitter that dealing in the BUSD stablecoin will be suspended on March 13, 2023, at or around 12 p.m. ET. Transactions on Coinbase.com (Basic and Advanced Trade), Coinbase Pro, Coinbase Exchange, and Coinbase Prime will be halted. As of press time, there were 177,125 distinct accounts containing BUSD, according to the stablecoins token contract.　　Coinbases BUSD Dealing Ban Raises Bitcoin Community Worries　　　　The Bitcoin Community Has Different Responses The bitcoin community has had varied responses to Coinbases statement. Some have questioned the timeliness of the ban, wondering when the BUSD stablecoin abruptly failed to reach Coinbases ranking standards and which particular standard it failed to meet. Others have expressed worry about Coinbases suspension of

2023-02-28Deep Dive

Binance Secretly Moved $1 Bln User Assets Just Like FTX

Recent reports suggest that Binance, the largest cryptocurrency exchange in the world, may have engaged in behavior similar to FTX regarding user assets. Shockingly, the exchange is alleged to have transferred $1.8 billion in user assets without permission for its own purposes following the cryptocurrency crash in 2022. This issue has similarities to the FTX collapse which occurred due to unauthorized transfer of user assets between Sam Bankman-Frieds companies, including Alameda Research. These allegations could have severe consequences not only for Binance but also for the entire cryptocurrency market.　　Binance Shuffled User Assets？　　As per a recent Forbes report, Binance, the exchange giant, transferred $1.8 billion in stablecoin collateral to hedge funds in 2022. Among the beneficiaries of these transfers was Alameda Research, a name that could potentially raise concerns for crypto traders who were severely affected by the November 2022 crypto crash. The report stated that the purpose of these transfers remains undisclosed. They were reportedly executed between August 17th and early December 2022, which coincides with the time period of the FTX collapse that originated from unauthorized crypto transfers.　　Despite being an active presence on Twitter, Binance CEO CZ has not yet responded to the recent allegations. The exchange has been

2023-02-28Deep Dive

Robinhood's Cryptocurrency Division Served SEC Subpoena

Robinhood Markets Inc, a popular brokerage firm known for its commission-free trading, has received an investigative subpoena from the US Securities and Exchange Commission (SEC) related to listings of cryptocurrencies. The subpoena was received in December 2022, according to a filing by Robinhood on Monday.　　The SEC has been actively monitoring the cryptocurrency industry, and it has maintained that pre-existing securities laws apply to digital assets, including cryptocurrencies. The regulatory agency has also stated that many crypto tokens meet the definition of security, which has previously been criticized by the industry.　　The subpoena received by Robinhood is related to its subsidiary, Robinhood Crypto LLC, which offers support for cryptocurrencies and custody of cryptocurrencies, among other platform operations. The company has not disclosed any further details about the investigation.　　This news comes in the wake of a string of major crypto-related failures in 2022, including the collapse of Sam Bankman-Frieds FTX. FTX filed for bankruptcy in November, which led to an intervention from regulators worldwide and left creditors facing losses of billions of dollars. The collapse dealt a significant blow to investor sentiment in the crypto industry.　　Robinhood has also recently announced plans to repurchase its shares from Emergent Fidelity Technologies, a company founded by

2023-02-28Deep Dive

Registration Required For Cryptocurrency Platforms In Canada Within 30 Days

The Canadian Securities Administrators (CSA) stated last Wednesday that cryptocurrency platforms must register in order to safeguard cryptocurrency buyers. The Canadian Securities Administrators (CSA) is the parent body for Canadas province and local securities authorities.　　Stan Magidson, Chairman of the CSA and CEO of the Alberta Securities Commission, stated that unregistered crypto asset trading platforms (CTPs) that continue to operate in Canada while pursuing registration are expected to provide their principal regulator with an enhanced pre-registration undertaking within 30 days of the publication of this notice.　　The CSA requires increased security and isolation of cryptocurrency assets owned by Canadian customers, as well as a ban on giving collateral, credit, or other forms of leverage to any Canadian customer. Consumers may not be permitted to buy or transfer stablecoins or private currencies unless the CSA has given previous written permission.　　If a CTP is unable or unwilling to provide an improved pre-registration commitment, the CSA anticipates that it will take suitable action to off-board current Canadian users and implement limitations to prohibit Canadian users from getting its goods or services.　　This new metric follows the recent decline in the cryptocurrency market and an increase in scam cases. Many nations are putting harsher restrictions on the

2023-02-28Deep Dive

Nigeria's Central Bank in Talks with Blockchain Platform R3 for CBDC revamp

By: Damian Okonkwo 　　Nigerias central bank has reportedly entered into discussions with blockchain platform R3 for the revamp of its central bank digital currency (CBDC).　　According to a Bloomberg report, the central bank is seeking to enhance its existing e-naira digital currency and is exploring the use of blockchain technology to facilitate cross-border payments and boost financial inclusion.　　The central banks move to enhance its digital currency comes as other countries around the world are also developing and launching their own CBDCs. China, for example, has already launched a digital yuan, and other countries, including the United States and the European Union, are also working on their own digital currencies.　　R3 is a blockchain platform that provides enterprise-grade solutions for businesses and governments. The platform is known for its Corda blockchain technology, which enables secure and private transactions between parties. R3 has also developed a number of blockchain-based solutions for the financial services industry, including a trade finance platform and a blockchain-based identity management system.　　The central banks discussions with R3 could help to accelerate the development and launch of a revamped e-naira digital currency. The use of blockchain technology could also help to improve the speed and efficiency of cross-border payments, making it

2023-02-27Deep Dive

Shiba Inu’s BONE Price Spikes Suddenly; Here’s Why?

Shytoshi Kusama, the leader of Shiba Inu developers, has dropped another hint that has caught the attention of Shiba Inu enthusiasts. The hint may be related to the long-awaited launch of Shibarium, although it is not confirmed. Speculations around the launch of the L2 blockchain have also contributed to the increase in the value of Shiba Inus BONE, which has surpassed the market capitalization of other top meme coins.　　Shiba Inus BONE Price Suddenly Spikes　　Shiba Inu enthusiasts have interpreted the use of three dots by Shytoshi Kusama as a signal that the beta release of Shibarium is imminent. As a result, the price of the Shiba Inu ecosystem token BONE has surged in the past 24 hours. BONE will be used as the gas token in the Shibarium Layer-2, which has contributed to a 4% increase in its value. BONE is now one of the top-performing tokens among the largest meme cryptocurrencies. Additionally, BONEs listing on Gate.io has also supported the recent price surge.　　In an official blog post, it was announced that the crypto exchange would list Bone ShibaSwap with the trading pair BONE/USDT. The platform, which has over 12 million registered users, updated its trading page for ShibaSwap on Thursday

2023-02-26Deep Dive

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