Kategorie: Crypto Markets

Daily headlines and news about crypto markets.

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Binance US drops FDIC insurance amid regulatory pressure

  • Cryptocurrency exchange Binance US has withdrawn FDIC insurance for user funds.
  • The exchange faces regulatory heat from the US Securities and Exchange Commission (SEC).
  • The SEC lawsuit ramifications are spilling over.

In a significant policy change, Binance US, the American arm of the global cryptocurrency exchange Binance, has revoked FDIC insurance coverage for user funds.

The move comes amid an ongoing legal battle with the US SEC, which has accused the exchange of violating federal securities laws.

The FDIC insurance withdrawal

Binance US users were previously covered by FDIC insurance, providing a level of protection for their cryptocurrency holdings. However, following an update in their terms of service, the exchange has informed users that their crypto deposits are no longer insured by the Federal Deposit Insurance Corporation (FDIC).

The updated terms explicitly state, “Digital Assets are not legal tender, are not backed by any government, and accounts and value balances are not subject to protections or insurance provided by the FDIC or the Securities Investor Protection Corporation (SIPC).”

This change places the responsibility for asset security squarely on the users themselves.

International ramifications of the SEC Lawsuit

Binance US’s decision to withdraw FDIC coverage is connected to an SEC lawsuit filed against Binance, Binance US, and its founder, Changpeng Zhao (CZ). The SEC’s legal action alleges various securities law violations, including falsely declaring trading controls and engaging in unregistered securities sales, violating investor protection regulations.

Furthermore, the SEC claims that CZ and Binance secretly controlled the operations of Binance US, raising concerns about transparency and potential conflicts of interest. The regulator also alleged that customer funds were covertly transferred to a separate entity called Merit Peak Limited, under CZ’s control.

The SEC’s actions have not only impacted Binance US but have also drawn international regulatory scrutiny. In response to the lawsuit, Binance has withdrawn from operations in several countries, illustrating the global implications of regulatory actions in the cryptocurrency space.

The post Binance US drops FDIC insurance amid regulatory pressure appeared first on CoinJournal.

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Roblox expands in-game purchases payment options with XRP integration

  • Roblox adopts XRP as a payment method for in-game purchases.
  • The integration will be aided by BitPay and Xsolla, facilitating seamless integration with crypto wallets.
  • The move reflects the growing interest in cryptocurrencies within the gaming industry.

Roblox, the immensely popular online gaming platform with over 200 million monthly active users, is breaking new ground by adopting Ripple (XRP) as a payment method for in-game purchases. The announcement was made on October 17, 2023, through BitPay’s official X channel.

Roblox’s Ripple(XRP) integration

Roblox, which boasts 65.5 million daily active users, has recognized the growing interest in cryptocurrencies. With 44% of its user base under the age of 13, the integration of XRP as a payment option signifies a significant stride toward crypto adoption among younger audiences.

Roblox users have been fervent in their in-game spending, having shelled out approximately $773 million in the first quarter of 2023. By adding XRP to the payment options, Roblox offers its users a more diverse and flexible way to make in-game purchases.

Roblox’s embrace of XRP is indicative of the gaming industry’s increasing interest in leveraging blockchain and cryptocurrency technologies. It opens doors to a world of possibilities, as in-game purchases become more seamless and tailored to the preferences of Roblox’s massive user base. The integration of XRP as a payment method in Roblox sets a new standard for innovation in the gaming sector, and it will be interesting to see how this development shapes the future of in-game transactions.

BitPay and Xsolla to streamline the connection

BitPay, a trusted cryptocurrency payment processor, is collaborating with Xsolla to streamline the connection between Roblox and various crypto wallets. BitPay and Xsolla have a longstanding partnership, dating back to 2014 when they initially accepted Bitcoin (BTC) payments. Their joint efforts have paved the way for the adoption of cryptocurrencies within the gaming industry.

Xsolla, the platform responsible for managing in-game payments in Roblox, will facilitate this integration, ensuring a seamless connection with crypto wallets.

In addition to XRP integration, BitPay and Xsolla introduced PayPal USD (PYUSD) payments for merchants and consumers in September 2023. This move further diversifies the range of payment options within the gaming ecosystem, enhancing the accessibility of cryptocurrencies for a broader audience.

The post Roblox expands in-game purchases payment options with XRP integration appeared first on CoinJournal.

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Fake spot Bitcoin ETF approval news pushes BTC to $30k

  • Bitcoin spikes to highs of $30k amid fake spot ETF news.
  • BlackRock has confirmed its spot Bitcoin ETF application remains under review.
  • Over $130 million shorts were liquidated as the price of Bitcoin shot to near $30k on Monday

A relatively quiet crypto market sparked into a frenzy for a few minutes on Monday as news spread that the Securities and Exchange Commission (SEC) had approved the first Bitcoin ETF.

Bitcoin price soared more than 10% within no time as major crypto news accounts on X seized on the news, with BTC rising to $30,000 on crypto exchange Coinbase. This was Bitcoin’s highest level since August 9.

Spot Bitcoin ETF approval was ‘fake’

First, Fox Business reporter Eleanor Terret posted on her X account that BlackRock’s iShares Bitcoin ETF had not been approved. She cited a statement from the $9 trillion asset manager that indeed its “application is still under review.” 

Bloomberg and the Wall Street Journal have also quoted statements from BlackRock to the effect that the said ETF application remains under review. The SEC has also confirmed the reports were false. 

The SEC has recently delayed decision on all applications for spot Bitcoin EFTs before it. The regulator however did not appeal a court decision in favour of Grayscale over the conversion of GBTC to a spot ETF. As such, the market’s reaction over the weekend and early morning had benefited from sentiment that chances of a Bitcoin ETF approval were high.

Other than the GBTC to spot ETF countdown, the crypto market has had great anticipation for the other proposals that include BlackRock and Fidelity. For one, the product is expected to offer greater exposure to BTC for traditional investors – with this resulting in the influx of capital into the market. Experts say that the next bull market could benefit significantly from this.

Could this explain the reaction to today’s news? First posted on an X account of a crypto publication, the claim spread like wildfire, attracting massive buyside pressure. While the post has been debunked as fake news, could it have been a leak that jumped the gun?

Meanwhile, Cointelegraph has apologized for the “tweet” and is reportedly conducting an internal investigation as to what happened.

Over $100 million liquidated

Just as Bitcoin had spiked amid online circulation of the fake news, its price fell sharply soon after as more confirmed reports highlighted this to be fake news. Total liquidations jumped more than 280% in the past 24 hours.

More than $100 million shorts were liquidated as Bitcoin prices soared amid the news. According to data from Coinglass, the hour that saw BTC hit $30k had more than $112 million total liquidations. There were over $78 million shorts and $34 million longs liquidated, including over $64 million for BTC.

The post Fake spot Bitcoin ETF approval news pushes BTC to $30k appeared first on CoinJournal.

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Upbit receives in-principal approval for MPI License in Singapore

  • Upbit Singapore secures in-principal approval for an MPI license from the MAS.
  • The approval allows Upbit to offer regulated digital payment token services under Singapore’s Payment Services Act 2019.
  • Singapore’s reputation as a cryptocurrency hub is growing rapidly.

Upbit Singapore, a branch of Upbit which is South Korea’s largest cryptocurrency exchange by volume, has received a significant nod from the Monetary Authority of Singapore (MAS). The cryptocurrency exchange has been granted in-principal approval for a Major Payment Institution (MPI) license in the city-state.

This development opens the doors for Upbit to offer regulated digital payment token services in compliance with the Payment Services Act 2019 (PSA).

Upbit Singapore’s major milestone

Upbit Singapore was launched in 2018 and received exempt status from holding a license under the PSA in 2020.

Upbit is making substantial progress in expanding its presence in the cryptocurrency market. The approval by the MAS paves the way for Upbit to provide regulated digital payment token services in accordance with Singapore’s Payment Services Act 2019.

The in-principal approval specifically allows the exchange to continue offering its services to institutional investors while awaiting full license authorization. This initial approval serves as a strategic milestone for Upbit Singapore, emphasizing the exchange’s dedication to establishing a strong presence in the local market.

With this regulatory green light, Upbit Singapore is gearing up to expand its operations and gradually emerge from “stealth mode.”

Singapore’s growing Crypto Hub status

Singapore is increasingly recognized as a prominent hub for the crypto industry, working closely with banks, businesses, and the public to create a favourable environment for cryptocurrencies. The country’s government has been instrumental in establishing Singapore as a leader in the crypto space.

Upbit’s achievement positions it among an exclusive group of 15 crypto firms with full MPI digital payment token service licenses from MAS. Prominent players such as Coinbase and Blockchain.com also received licenses from MAS recently, further solidifying Singapore’s reputation as a cryptocurrency-friendly jurisdiction. Ripple was also been approved by the MAS to operate in the country.

Ripple CEO Brad Garlinghouse praised Singapore for striking a balance between innovation, consumer protection, and responsible growth, highlighting its growing status as a cryptocurrency hub.

The post Upbit receives in-principal approval for MPI License in Singapore appeared first on CoinJournal.

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Sberbank to join Russian Central Bank’s Digital Ruble pilot

  • Russia’s largest bank, Sber, is set to play a vital role in CBDC testing.
  • Sberbank operates several tech solutions including Okko streaming, Citymobil taxi, SberSound, and SberMarket.
  • Russia’s digital currency ecosystem structure resembles China’s approach.

In a significant development for the future of Russia’s Central Bank Digital Currency (CBDC), Sberbank, the country’s largest bank and a major tech player, has confirmed its participation in the digital ruble pilot program. The pilot program, which was to involve 13 Russian banks was rolled out after Putin signed the digital rubles bill into law in July.

The bank’s influential CEO, Herman Gref, expressed the firm’s commitment to joining the “second wave” of banks that will commence digital ruble testing in 2024. This announcement marks a significant step forward in Russia’s efforts to launch its own digital currency.

Sberbank’s transformation into a major tech player

Sberbank has transformed into a major tech player, operating services like Okko streaming, Citymobil taxi, cloud storage, SberSound, and SberMarket. These achievements demonstrate the bank’s readiness to integrate the digital ruble into a broader digital ecosystem.

Drawing a parallel with Chinese tech giant Tencent, Sber could potentially seek to incorporate the digital ruble into its diverse range of digital services, mirroring Tencent’s success with WeChat’s e-CNY payment options.

Sberbank’s influence and strategic timing

Sberbank’s CEO, Herman Gref, is a prominent figure in the Russian business and political landscape, lending significant support to the digital ruble initiative.

The bank’s strategic timing in joining the “second wave” of CBDC testing suggests a calculated approach, potentially awaiting a clearer regulatory framework or legal obligation before full commitment.

The growing CBDC ecosystem in Russia

The addition of Sberbank to the pilot program represents a notable advancement in Russia’s digital currency ecosystem, with a structure resembling China’s approach. As the Central Bank broadens the involvement of banks and institutions in its digital currency initiative, this move by Sberbank aligns with the goal of building a comprehensive digital currency ecosystem in Russia.

Sberbank’s participation in Russia’s digital ruble pilot program underscores the government’s commitment to modernizing the financial sector and signals the potential for wide-ranging integration of the digital ruble into the bank’s digital services. As Russia take these strides toward a CBDC, the financial landscape in the country is poised for a digital transformation that may resemble the digital revolutions seen in other parts of the world.

The post Sberbank to join Russian Central Bank’s Digital Ruble pilot appeared first on CoinJournal.