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Top Crypto News this Week:
- Do Kwon Released From Montenegrin Prison on Bail; Terraform Labs’ Civil Trial Begins in NYC
- London Stock Exchange Will Start Market for Bitcoin and Ether ETNs May 28
- BlackRock’s New Tokenized Fund Brings TradFi, Crypto Closer: Bernstein
- Crypto Exchange KuCoin Violated Anti-Money Laundering Laws, U.S. Charges
- Hong Kong Likely To Allow In-Kind Creations for Spot Bitcoin ETFs: Bloomberg
- KuCoin Withdrawals Spike to $1B in Crypto Amid U.S. Regulatory Clampdown
- OKX Quietly Settled Regulatory ‘Failings’ With Malta Financial Services Authority
- BlackRock’s Fink Says an Ether ETF Is Possible Even if ETH Is a Security
- Dogecoin Bets Jump to $2B as Price Reaches Highest Level Since 2021
- Is This the End of Bitcoin’s 4-Year Bull/Bear Market Cycle?
- SBF Is Going to Prison for 25 Years
Do Kwon Released From Montenegrin Prison on Bail; Terraform Labs’ Civil Trial Begins in NYC
Do Kwon Released From Montenegrin Prison on Bail; Terraform Labs’ Civil Trial Begins in NYC: Do Kwon, co-founder of Terraform Labs, was released from Montenegrin prison on bail as the nation deliberates over extradition requests from both the U.S. and South Korea. The requests stem from Kwon’s connection to the Terra ecosystem’s $40 billion collapse in May 2022. Following his release, a civil fraud trial against Kwon and Terraform Labs commenced in Manhattan, alleging investor deception regarding the stability of Terra’s algorithmic stablecoin and misleading claims about the blockchain’s integration into a Korean payment app. This situation underscores the global reach of cryptocurrency regulation and highlights ongoing legal challenges faced by industry figures involved in high-profile crypto collapses.
London Stock Exchange Will Start Market for Bitcoin and Ether ETNs May 28
London Stock Exchange Will Start Market for Bitcoin and Ether ETNs May 28: The London Stock Exchange (LSE) announced its plan to open a market for Bitcoin and Ether Exchange-Traded Notes (ETNs) on May 28, following approval from the UK’s Financial Conduct Authority (FCA). This move is aimed at professional investors and signifies a major step toward integrating cryptocurrencies into the traditional financial marketplace. Applications for listing these crypto ETNs will start on April 8, reflecting growing institutional interest in digital assets. The introduction of a regulated ETN market for cryptocurrencies on one of the world’s oldest exchanges illustrates the increasing acceptance and legitimization of cryptocurrencies within mainstream finance, potentially attracting more investors to the sector.
BlackRock’s New Tokenized Fund Brings TradFi, Crypto Closer: Bernstein
BlackRock’s New Tokenized Fund Brings TradFi, Crypto Closer: Bernstein: BlackRock’s unveiling of its first tokenized fund on a public blockchain marks a significant moment for the convergence of traditional finance (TradFi) and the cryptocurrency sector. According to Bernstein, this initiative not only showcases the asset management giant’s leadership in adopting blockchain technology but also bridges the gap between TradFi and crypto industries. By involving key ecosystem partners from both realms, BlackRock aims to enhance interoperability and comfort among traditional investors venturing into blockchain-based assets. This fund, fully backed by cash, U.S. Treasury bills, and repurchase agreements, signifies a new category of growth for asset managers, highlighting the evolving landscape of investment management toward on-chain, multi-asset products.
Crypto Exchange KuCoin Violated Anti-Money Laundering Laws, U.S. Charges
Crypto Exchange KuCoin Violated Anti-Money Laundering Laws, U.S. Charges: KuCoin, a major cryptocurrency exchange, and two of its founders were charged by U.S. federal prosecutors with violating anti-money laundering laws. The charges accuse KuCoin of operating without proper registration, failing to implement a know-your-customer (KYC) program until 2023, and not applying its KYC program to existing customers. This case emphasizes the importance of compliance within the crypto industry and the U.S. government’s commitment to enforcing regulatory standards. The allegations suggest KuCoin facilitated the laundering of proceeds from various illegal activities, including sanctions violations and darknet markets. This development underscores the challenges crypto exchanges face in navigating complex regulatory environments and highlights the increasing scrutiny on the industry’s compliance practices.
Hong Kong Likely To Allow In-Kind Creations for Spot Bitcoin ETFs: Bloomberg
Hong Kong Likely To Allow In-Kind Creations for Spot Bitcoin ETFs: Bloomberg: According to Bloomberg Intelligence, Hong Kong’s Securities and Futures Commission (SFC) is expected to allow in-kind creations and redemptions for spot Bitcoin ETFs, a move that could significantly open the cryptocurrency market to Chinese investors. This regulatory development would make Hong Kong one of the first major financial centers to embrace such a product, potentially leading to a substantial influx of investment into Bitcoin. The SFC’s progressive stance on crypto ETFs, allowing for in-kind transactions rather than cash-only redemptions, suggests a favorable regulatory environment for digital assets in the region. This decision could herald a new era of crypto investment in Asia, offering investors a regulated means to gain exposure to Bitcoin and indicating Hong Kong’s ambition to become a crypto-friendly financial hub.
KuCoin Withdrawals Spike to $1B in Crypto Amid U.S. Regulatory Clampdown
KuCoin Withdrawals Spike to $1B in Crypto Amid U.S. Regulatory Clampdown: Following charges by U.S. authorities for violating anti-money laundering laws, KuCoin experienced a massive withdrawal of funds, with over $1 billion in crypto assets withdrawn within 24 hours. This event highlights the fragility and investor sensitivity within the cryptocurrency exchange ecosystem to regulatory actions. KuCoin’s substantial asset outflow reflects growing concerns among investors about the platform’s ability to navigate legal and compliance challenges. Despite assurances from KuCoin regarding the safety and operational stability of the platform, the significant withdrawals underscore the immediate impact of regulatory scrutiny on crypto exchanges. This situation serves as a reminder of the importance of regulatory compliance and the potential consequences of legal challenges in the crypto industry.
OKX Quietly Settled Regulatory ‘Failings’ With Malta Financial Services Authority
OKX Quietly Settled Regulatory ‘Failings’ With Malta Financial Services Authority: OKX reached a settlement with the Malta Financial Services Authority (MFSA) over regulatory “failings” with a 304,000 euro penalty. The settlement involved the appointment of an independent third-party service provider to review the exchange’s governance arrangements. This case highlights the ongoing regulatory challenges faced by cryptocurrency exchanges and the importance of adherence to regulatory standards. The MFSA’s actions reflect a broader trend of increasing regulatory oversight within the cryptocurrency sector, emphasizing the need for exchanges to maintain rigorous compliance protocols. OKX’s settlement with the MFSA underscores the complexities of operating a global cryptocurrency exchange within diverse regulatory jurisdictions and the potential financial and operational impacts of regulatory non-compliance.
BlackRock’s Fink Says an Ether ETF Is Possible Even if ETH Is a Security
BlackRock’s Fink Says an Ether ETF Is Possible Even if ETH Is a Security: Larry Fink, CEO of BlackRock, expressed optimism about the possibility of launching an Ether ETF, even if the SEC classifies Ethereum’s ether as a security. This statement highlights the growing interest in cryptocurrency ETFs among major asset managers and the potential for regulatory classifications to impact the development of such products. Fink’s confidence suggests that the designation of ether as a security may not hinder the ability to create ETFs based on it, indicating a belief in the adaptability of financial products to regulatory frameworks. This perspective offers insight into the evolving landscape of cryptocurrency investment products and the interplay between regulatory considerations and financial innovation.
Dogecoin Bets Jump to $2B as Price Reaches Highest Level Since 2021
Dogecoin Bets Jump to $2B as Price Reaches Highest Level Since 2021: Dogecoin’s price surged to its highest level since December 2021, driven by speculation about its potential use on Elon Musk’s platform, X. This price movement coincided with a significant increase in trading volumes and futures open interest, indicating heightened market activity and interest in DOGE. The speculation was fueled by social media posts from prominent Dogecoin community members, suggesting the token’s implementation for payments on X. This event illustrates the impact of speculation and celebrity endorsement on cryptocurrency markets, showcasing how rumors and social media activity can lead to rapid price movements and increased trading activity.
Is This the End of Bitcoin’s 4-Year Bull/Bear Market Cycle?
Is This the End of Bitcoin’s 4-Year Bull/Bear Market Cycle?: This article speculates on whether the historical four-year bull/bear market cycle for Bitcoin might be disrupted by the influx of institutional investments and the introduction of ETFs. The approval of spot bitcoin ETFs in the U.S. and significant institutional interest may lead to more stable growth in the cryptocurrency market, diverging from the volatility associated with Bitcoin’s halving events. This potential shift could signify a fundamental change in the cryptocurrency market dynamics, moving away from extreme cyclical fluctuations towards a more consistent growth trajectory. The article suggests that the increased institutional
SBF Is Going to Prison for 25 Years
Sam Bankman-Fried (SBF), former FTX CEO, has been sentenced to 25 years in prison for fraud related to FTX’s collapse. His defense argued for leniency, citing intentions to repay affected parties and his autism diagnosis. However, Judge Lewis Kaplan rejected these arguments, emphasizing Bankman-Fried’s misleading actions and lack of remorse. The sentencing reflects serious consequences for misconduct in the crypto industry, despite being less than the probation department’s recommendation. Bankman-Fried’s case highlights the legal system’s stance on significant financial crimes and the expectation of accountability, regardless of the emerging nature of the cryptocurrency sector.
Final Thoughts
This week in crypto felt like a high-speed rollercoaster ride, with every twist and turn packing a punch. The stories we witnessed—from Do Kwon’s courtroom drama to the London Stock Exchange’s crypto embrace—highlight a thrilling convergence of tradition and innovation. Regulatory crackdowns remind us of the growing pains of an industry striving to mature. As we navigate this journey together, the pulse of the crypto world beats in sync with each development, reaffirming that in the land of digital currency, the only certainty is a constant stream of surprises. Stay tuned, the adventure is far from over.