Crypto

US securities watchdog declares all-out war against crypto, files 130 cases

Published

12 months ago

June 11, 2023

US securities watchdog declares all-out war against crypto, files 130 cases

Two lawsuits filed this week by the US market regulator — the Securities and Exchange Commission (SEC) — could potentially determine the future of cryptocurrency.

Binance.com, the world’s largest crypto exchange, related entities and founder Changpeng Zhao were the target of the first lawsuit, which was filed on June 5. The next day, on the regulator’s 89th birthday, the SEC filed its second suit, now against Coinbase, another large exchange.

“There is nothing about the crypto securities markets that suggests that investors and issuers are less deserving of the protections of our securities laws,” SEC chair Gary Gensler said in a speech just days later on Thursday.

He added that crypto exchanges and promoters have long been aware of the rules of the road for trading in cryptos — through SEC orders and enforcement actions — but they have chosen to ignore them or dismiss as they “may have made a calculated economic decision to take the risk of enforcement as the cost of doing business”.

“You simply can’t ignore the rules because you don’t like them or because you’d prefer different ones: the consequences for the investing public are far too great,” Gurbir S. Grewal, head of the SEC’s enforcement division, said regarding the lawsuit against Coinbase.

Starting out with nothing in 2009-10, crypto is now an estimated to be a $1 trillion business, operating mostly in a regulatory grey zone.

Crypto exchanges have contended that their offerings — tokens — are not like securities and, therefore, their exchanges are unlike those that need to subject themselves to the usual rules.

The US regulator disagrees. And under the leadership of Gensler, who was appointed by US President Joe Biden in 2021, it has sought to assert its jurisdiction over the crypto exchanges arguing, its offerings — tokens — are securities and they must be registered with the regulator as others and so should their exchanges.

It has brought about 130 crypto lawsuits thus far, forcing smaller companies to shut down and others, who can afford the steep cost of litigation, to settlements.

Bitcoin and Coinbase are looking at fines if judges side with the SEC or settlements. These are civil suits and will not lead to imprisonment, but the Department of Justice (DOJ) could jump in at any stage in these or other cases, then jail terms become a possibility.

Sam Bankman-Fried, founder and head of FTX crypto exchange that went bankrupt in November 2022, was among those who heard from the department of justice, and is now facing jail. He is accused of stealing money from FTX customers for lavish purchases for himself, donations to politicians and risky trade deals.

FTX and such like disasters await investors because of crypto exchange and their promoters’ defiance of rules that apply securities trade in general.

“These types of misconduct and bankruptcies are more likely to happen in markets whose issuers and intermediaries fail to comply with foundational laws,” SEC chair Gensler has said, adding: “Even when we might not find fraud or such blatant misconduct, investors need proper disclosure, segregation of their hard-earned assets, and confidence that they are not trading against the house.”

Binance, which has denied the SEC charges and has said it will contest them in court, has been accused of, among other things, “wash trading” to boost trading volumes.

–IANS

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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Crypto

Trump says he is “very positive and [open-minded] to cryptocurrency companies,” advocates for US leadership in crypto industry

Published

1 hour ago

May 26, 2024

Press Room

Trump says he is “very positive and [open-minded] to cryptocurrency companies,” advocates for US leadership in crypto industry

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Crypto

Whales Scoop Up 20,000 BTC In 24-Hour Buying Spree Amid Bitcoin Price Drop

Published

8 hours ago

May 25, 2024

Press Room

Whales Scoop Up 20,000 BTC In 24-Hour Buying Spree Amid Bitcoin Price Drop

ZyCrypto

Bitcoin (BTC) has continued its volatility trend, with recent fluctuations heightening the attention of seasoned investors on its next likely trajectory. Notably, the top crypto asset’s price has been consolidating its gains in the past few weeks, hovering around the $68,000 mark after reaching an all-time high above $73,000 in March.

Meanwhile, amidst the ongoing pullback, Bitcoin whales have embarked on a buying spree, acquiring a staggering 20,000 BTC in just 24 hours, according to insights shared by crypto analyst Ali Martinez.

The significant purchase, totaling approximately $1.34 billion at current market rates, occurred as Bitcoin prices dipped below the $67,000 mark. This sudden surge in whale activity suggests a renewed confidence in Bitcoin’s long-term potential despite short-term market fluctuations.

Martinez’s revelation comes just after crypto analytics firm IntoTheBlock revealed that addresses holding between 1,000 and 10,000 BTC have been the primary accumulators during Bitcoin’s recent surge to $70,000. On Thursday, the firm noted that these addresses added 20,000 BTC ($1.4 billion) to their balances over the past seven days, further solidifying Bitcoin’s position as a preferred asset among institutional and large-scale investors.

Other analysts have also closely monitored Bitcoin’s price movements and market dynamics. Glassnode, a leading on-chain data provider, highlighted a notable decline in Bitcoin Long-Term Holder (LTH) supply leading up to the cryptocurrency’s all-time high (ATH) of over $73,000 in March 2024. However, this distribution pressure has eased off in recent weeks, signaling a shift in market sentiment favoring bullish tendencies.

Adding to the bullish sentiment, cryptocurrency analyst “Gaah” from CryptoQuant highlighted the Puell Multiple, a metric used to gauge Bitcoin miner profitability following halving events. The recent decline in the Puell Multiple indicates a potential market adjustment to increased scarcity, potentially paving the way for a future rally in Bitcoin prices.

“The reduction in miners’ daily revenue indicates that mining has become less profitable, unless the price of Bitcoin increases significantly. The current range in which the Puell Multiple is quoted confirms Price discount, meaning that the network is potentially cheap. The decrease in the supply of new bitcoins could create upward pressure on the price, especially if demand continues to grow. Investors may interpret the fall in the Puell Multiple as a sign that the market is adjusting to a new phase of scarcity, potentially preparing for a rally.” The pundit noted.

Despite market uncertainties, Bitcoin appears to be encountering minimal resistance as it hovers around key support levels. Data from IntoTheBlock suggests that the cryptocurrency faces a crucial supply zone between $70,180 and $70,600, where over 450,000 addresses acquired 273,000 BTC. This accumulation by retail investors further reinforces the bullish outlook for Bitcoin in the near term.

According to CoinMarketCap data, BTC was trading at $69,173 at press time, reflecting a 2.72% price surge over the past 24 hours.

Crypto

Harnessing cryptocurrency to widen financial inclusion in Africa

Published

15 hours ago

May 25, 2024

Press Room

Harnessing cryptocurrency to widen financial inclusion in Africa

As we commemorate Africa Day, it’s crucial to reflect on the strides made toward economic empowerment and financial inclusion across the continent. Amidst the array of challenges, one notable phenomenon stands out: the rise of cryptocurrency.

Cryptocurrency adoption in Africa has sparked significant transformations. Across the continent, it is enabling individuals to access financial services previously out of reach for many. This technological advancement is narrowing the gap between the banked and the unbanked, offering a lifeline to millions excluded from traditional financial systems.

Think of a migrant worker sending money back home to his family overseas. In many countries, there are sizeable groups of people who cannot afford to sustain a bank account. At the same time, such people would struggle to meet the fees associated with conventional remittance services.

This challenge represents a vast segment of the global population. Globally, an estimated 1.4 billion people remain unbanked as of 2021, as per the most recent comprehensive estimate by the World Bank. This number is equal to roughly a quarter of the global adult population.

In light of these challenges, cryptocurrency is enabling individuals from all walks of life to access financial services previously out of reach for many from traditional financial systems.

At the forefront of this evolution are industry leaders like Binance, contributing to positive changes in Africa’s financial landscape. Through user-friendly platforms and educational initiatives such as Binance Academy and Binance Charity, they facilitate transactions and promote financial literacy and philanthropy. These efforts underscore the potential for crypto adoption to reshape financial norms.

The recent surge in Bitcoin prices further underscores the potential of cryptocurrencies to generate wealth and economic opportunities. Africa’s cryptocurrency landscape witnessed a remarkable surge in February 2024, echoing the global trend, with total market capitalisation soaring by 40 percent. In December 2023, the monthly change in crypto market capitalisation was 15.2 percent, but February 2024 witnessed a remarkable acceleration to 40 percent.

Beyond benefiting investors, this surge provides ordinary Africans with new avenues for prosperity. Whether through remittances, cross-border trade, or protection against inflation, crypto adoption offers a decentralised alternative that transcends borders and empowers individuals.

However, amidst the promise, challenges persist. Regulatory uncertainties and infrastructure deficiencies pose obstacles to widespread adoption. Collaboration among governments, regulators, and industry stakeholders is essential to cultivate an environment conducive to crypto innovation. Clear regulatory frameworks, investment in technological infrastructure, and education, are vital to unlocking the full potential of cryptocurrency adoption in Africa.

Looking ahead, Africa stands at a crossroads. The adoption of crypto presents a unique opportunity to redefine the continent’s financial landscape, fostering inclusivity and economic empowerment for all. With visionary leadership, strategic partnerships, and a commitment to innovation, Africa can lead the world in harnessing the transformative power of cryptocurrency.

On this Africa Day, let us celebrate the progress made and recommit ourselves to building a more prosperous and inclusive future for all Africans, driven by the transformative potential of crypto adoption, one step at a time.

Binance, the largest cryptocurrency exchange by trading volume, serving 190 million users across 100 countries, is taking pizza to the moon for Bitcoin Pizza Day. Over six days, Binance will be distributing more than 5,000 pizzas globally to reach consumers worldwide for Bitcoin Pizza Day. Binance is taking steps to truly own the holiday on a global scale, delivering on its mission to educate and engage with both crypto and non-crypto users.

Hannes Wessels is the Country Head for Binance in South Africa