Creditors of the now-defunct cryptocurrency exchange Mt. Gox have been granted an additional month to file their claims for compensation. The deadline for registration has been pushed back from March 10 to April 6, 2023, according to a statement from the exchange’s trustee. The move is intended to give creditors more time to gather documentation to support their claims and could potentially speed up the payout process in the long run. The delay comes as the cryptocurrency industry faces increased scrutiny from regulators and governments around the world, highlighting the need for better regulation and oversight in the industry to protect investors and prevent similar incidents from happening in the future.
One of the top cryptocurrency exchanges, Kraken, has revealed the launch of Kraken Financial, a US-based cryptocurrency bank. This action will make Kraken the first company dealing in digital assets to be granted a bank charter in the US, which is a major accomplishment for the business. Despite facing regulatory challenges in the past, Kraken is moving forward with its plans to create a fully integrated cryptocurrency bank.
The recent downfall of Silvergate Bank, a US-based bank that provides services to cryptocurrency-related businesses, has sent shockwaves through the cryptocurrency industry. This event has led to concerns about the stability of the industry as a whole and the impact it could have on the price of digital assets like Bitcoin.
Amid worries about the regulatory environment, Visa and Mastercard allegedly put a hold on their plans to form new partnerships with cryptocurrency companies. The payment processing giants are concerned about the potential regulatory backlash if they partner with cryptocurrency companies working in nations with murky or stringent crypto regulations, according to sources familiar with the situation. Although both businesses have previously expressed interest in cryptocurrencies, new regulatory uncertainty is said to have made them more cautious. The cryptocurrency sector has been working to increase acceptance and integrate into the established banking system, so the news is probably a setback for it.
The commission-free trading website Robinhood, which lets users exchange stocks, options, and cryptocurrencies, has received a subpoena from the Securities and Exchange Commission (SEC) of the United States. The demand relates to the business’s cryptocurrency trading operations.
With millions of users purchasing and selling cryptocurrencies on the app, Robinhood has been at the forefront of the cryptocurrency trading revolution. The business has previously come under fire for its lack of regulation compliance and transparency in the cryptocurrency industry.
The SEC’s action is a part of a larger campaign against activities connected to cryptocurrencies. Initial coin offerings (ICOs) and cryptocurrency exchanges are just two examples of the businesses the agency has been actively pursuing that provide services and products connected to cryptocurrencies.
One of the biggest cryptocurrency exchanges in the world, Coinbase, has declared that as of March 5th, it will no longer accept the Binance USD (BUSD) stablecoin on its platform. The exchange noted in a blog post that BUSD “does not meet our listing standards,” but it did not go into detail as to why. One of the numerous stablecoins to emerge in the cryptocurrency realm in recent years, Binance USD provides investors and traders with a stable alternative to the volatility of other cryptocurrencies. Regulators and industry players, who are worried about the possible risks stablecoins pose to financial stability, have increased their scrutiny of stablecoins. The decision by Coinbase to suspend BUSD could be interpreted as a warning from big cryptocurrency exchanges.
Following the government’s recent $6.4 million investment in Web3, one of the top cryptocurrency exchanges in the world, Gate.io, has revealed plans to establish a new platform in Hong Kong. A variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, will be available for trading on the new network when it launches in the upcoming months. The move by Gate.io to introduce a new platform in Hong Kong fits into a larger pattern of development in the cryptocurrency sector.
Early on February 25, 2023, a technical issue caused the Solana network, a blockchain-based platform renowned for its quick processing times and low transaction fees, to temporarily close down. Investors and users were greatly alarmed by the outage, which also led the decentralised finance (DeFi) platforms based in Solana to operate slowly. Even though the problem was initially resolved, the network experienced another failure right away after the restart. The Solana team subsequently revealed that the problem was brought on by a flaw in the network’s validator software and reassured users that steps had been taken to avoid a repeat of the problem.
“A number of significant banks and investment companies have started to provide clients with services related to Bitcoin in recent months, indicating an increasing acceptance of the cryptocurrency as a reliable investment asset. This, along with the fact that governments all over the world are beginning to recognise the potential of cryptocurrencies, has prompted many business experts to forecast that Bitcoin will hit new highs in 2023. The majority of experts continue to be optimistic about the long-term prospects of Bitcoin and other digital currencies, despite the fact that there are undoubtedly difficulties ahead, such as worries about the effects of Bitcoin mining on the environment and the currency’s intrinsic instability.”
“Recently, the International Monetary Fund (IMF) took yet another action to undermine the cryptocurrency market. The group opposed the use of cryptocurrencies as legal tender in a statement made public on Wednesday.
Allowing cryptocurrencies to become legal tender would put financial stability, consumer protection, and the integrity of the financial system at serious risk, according to the IMF, a global organisation of 190 nations that works to advance international monetary cooperation and financial stability.”