Here's your Thursday edition of Cryptonews Crunch, featuring the latest stories on Grayscale Investments suing the SEC, OpenSea's plummeting daily trading volume, and episode 139 of the Cryptonews Podcast.
Grayscale InvestmentssuedUSSecurities and Exchange Commission(SEC) after it rejected its application to convert the Grayscale Bitcoin Trust(GBTC) to a spot exchange-trading fund (ETF).
The European Parliament and the Council of the European Union have reached a provisional agreement on the Transfer of Funds Regulation (TFR) that is to ensure crypto transfers can be traced and that transactions considered suspicious are blocked, potentially paving the way for tougher enforcement by the European Union.
The crypto market will probably see “a few more” meltdowns similar to what happened with the Terra (LUNA) ecosystem, Three Arrows Capital, and Celsius(CEL), argues Pantera Capital CEO Dan Morehead. However, according to him, the majority of the contagion from current meltdowns has already been priced in.
After receiving criticism from industry players last year for being too conservative, a committee at the Bank for International Settlements(BIS) has proposed a cap on how much exposure traditional banks can have to cryptoassets “where there is no counterparty.” According to a new consultation report from the BIS’ Basel Committee on Banking Supervision, the exposure limit for banks should be set at 1% of “Tier 1 capital,” meaning the capital held in a bank’s main reserves.
OpenSea has seen a steep drop in the daily sales volume, which recently plunged to below USD 1m. Moreover, the platform's sales volume has dropped by 72% over the past month alone, reaching USD 260m. In comparison, the marketplace generated USD 4.86bn in total trading volume in January this year, data collected by Dune Analytics shows.
In more news, OpenSea warned their users that their emails have most likely been leaked and reminded them of 5 recommendations on how to protect yourself from email phishing attempts.
The authors of a new report claim that Ethereum (ETH) is “ready” for use in the world of business – albeit with “some caveats.” The report was compiled by the Ethereum Enterprise Alliance(EEA) – a business-focused affiliate of the Ethereum Foundation. Its authors claimed that while the “pieces are in place” for “the safe and productive use of Ethereum as a business platform,” the aforementioned pieces do not yet “necessarily fit together seamlessly.”
According to an announcement from OKX today, a new feature known as OKX Block Trading will allow large orders to be transacted “in bulk.” A bulk order is a type of over-the-counter (OTC) deal that is negotiated privately between counterparties, without ever appearing on the exchange’s order book.
A wealthy expat Salvadoran is set to fund a USD 200m solar-powered Bitcoin (BTC) mining facility – and appears to have the backing of the government. Milena Mayorga, El Salvador’s Ambassador to the United States claimed that the project would take some eight months to complete, and added that the plant would provide the town with “more renewable energy,” but would also be used to power a new “bitcoin mining facility.”
Anna Trinh is the Chief Compliance Officer of Aquanow and also brings over 15 years of legal experience providing advice and counsel to technology startups in all areas of corporate and securities law - with a particular focus on regulatory compliance. She received her Bachelor of Commerce degree in Finance, and her Bachelor of Laws from the University of British Columbia - and plans to complete the 6 major marathons prior to the Flippening.
In this conversation, we discuss:
- Running the 6 major marathons - Regulatory environment in Canada - Crypto in Canada - 2 way conversations with regulators - Canadian Web3 council - Builders building in bear markets - Manage risk in uncertain regulatory environments - Hiring Web3 lawyers - Bear market advice
The Monetary Authority of Singapore(MAS) reprimanded hedge fund Three Arrows Capital for providing false information to the MAS and exceeding the assets under management (AUM) threshold allowed for a registered fund management company. The watchdog has been investigating these contraventions since June 2021, they said, and the MAS is now assessing if there were further breaches.
The USTreasury Department and the Internal Revenue Service(IRS) are likely to push off a January date for crypto brokers and exchanges to begin tracking data such as customers’ capital gains and losses, Bloomberg reported, citing undisclosed people familiar with the matter. Under a law passed by Congress last November, crypto firms are supposed to begin recording their clients’ detailed transaction data in 2023, they said.
Crypto investment products assets under management (AUM) reached record lows in June 2022, with exchange-traded funds (ETFs) experiencing the largest drop, declining 52% to USD 1.31bn, according to a report from crypto analytics firm CryptoCompare. Trust products, which have a market share of 80%, fell 36% to USD 17.3bn in June, while exchange-traded commodities (ETCs) and exchange-traded notes (ETNs) fell 37% and 31% to USD 1.34bn and USD 1.61bn, respectively, they added.
Crypto market maker and lending firm Genesis Trading is facing potential losses into the “hundreds of millions,”CoinDesk reported, citing three undisclosed people familiar with the matter. The losses at Genesis relate in part to exposure to over-leveraged hedge fund Three Arrows Capital and crypto lender Babel Finance, per the report.
R3WIND, a video platform that wanted to revive former movie rental company Blockbuster in the Web3 space, announced that the company that currently owns the now-defunct business, Dish Network, refused to sell it.
Investment firm Société Générale-Forge, a subsidiary of banking giant Société Générale, partnered with digital asset infrastructure provider METACO to orchestrate its digital asset custody operations.
Web3 data lake solution KYVE raised USD 9m in funding and will use the proceeds to build support for more ecosystems.
Blockchain analytics firm Elliptic has traced just over ETH 35,000 (USD 39m) that has been sent through crypto mixer Tornado Cash, stolen in Harmony’s Horizon Bridge hack, and that their analysis indicates that the hack and subsequent asset laundering are consistent with activities of the Lazarus Group, a cybercrime group with strong links to North Korea.
Coinbase is focused on building up its presence in Europe and is in the process of registering in markets including Italy, Spain, France, and the Netherlands, where they intend to have both retail and institutional products, Nana Murugesan, Coinbase’s VP of Business Development and International, told Bloomberg.
Cash App announced Round Ups, a feature that lets customers round each of their Cash Card purchases up to the nearest dollar, using the spare change when they spend to automatically invest in stock, ETFs, or Bitcoin (BTC).
Blockchain infrastructure provider Klever will launch its layer 1 blockchain KleverChain’s mainnet on July 1st.
The OneCoin crypto Ponzi scheme, which reportedly netted its founder Ruja Ignatova around USD 4bn, is getting a three-part documentary series under the working title “Crypto Queen”, per Variety. The documentary also features exclusive contributions from Jonathan Levy, an attorney/solicitor who has represented efforts to secure USD 11bn in compensation from OneCoin, and Timothy Curry, one of the first to warn about the OneCoin scam.
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