The Terra Classic community has taken a significant step towards restoring stability to its ecosystem by voting to halt all minting and reminting activities associated with TerraUSD Classic (USTC).
This strategic move is aimed at reestablishing a solid peg between USTC and the United States dollar, with the community overwhelmingly supporting this decision.
In a recent proposal, the Terra Classic community voted decisively, with 59% in favor of discontinuing the minting of USTC, while approximately 40% opposed the change.
The primary objective behind this decision is to protect the interests of both the community members and external investors.
By reducing the supply of USTC, the community aims to facilitate the process of repegging USTC to the U.S. dollar.
This action follows a tumultuous period in Terra’s history when, in May 2022, USTC decoupled from the U.S. dollar.
This decoupling event triggered a catastrophic collapse, with Luna Classic (LUNC), closely intertwined with USTC, witnessing a nearly 100% drop in its value.
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This precipitated a broader downturn in the cryptocurrency markets, resulting in a staggering loss of approximately $40 billion in total market capitalization.
The proposal also emphasized that this decision would compel major cryptocurrency exchanges to initiate the burning of USTC.
“Most importantly, this proposal opens the door for institutions like Binance to start burning USTC knowing that the minting and reminting is over,” the statement noted.
These developments occur against the backdrop of concerns within the Terra Classic community regarding an increase in spam activities following the decline in LUNC prices.
On September 10, Cointelegraph reported that the community was actively voting on multiple proposals, one of which aimed to raise the minimum deposit requirement from 1 million LUNC to 5 million LUNC.
The proposal regarding the minimum deposit requirement concluded on September 16, with an overwhelming 93.22% of the community members in favor of the proposed increase.
This decision reflects the community’s determination to implement measures that will strengthen the Terra Classic ecosystem and restore confidence in its stability.
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Coinbase’s layer-2 network Base has witnessed a remarkable surge in its Total Value Locked (TVL), soaring to $397.32 million since its launch in August.
This accomplishment now places Base ahead of the Solana network, which has a TVL of $358.96 million as of the current date.
The past month has proven to be a game-changer for Base, as data from DefiLlama indicates a staggering 97.21% increase in the network’s TVL over this period.
In stark contrast, Solana has experienced a decline of 9.64% in its TVL during the same timeframe.
Within the Base ecosystem, two native projects stand out as the dominant contributors to its TVL.
The decentralized exchange Aerodrome Finance leads the pack with an impressive TVL of $97.83 million. Following closely behind is the decentralized social media app Friend.tech, boasting a TVL of $36.53 million.
Aerodrome Finance was launched on August 28, allowing users to deposit liquidity and earn its native AERO tokens, among other features.
While it initially struggled to attract significant deposits, Aerodrome’s TVL skyrocketed on August 31, with a staggering $150 million pouring in on that day alone.
However, it has since experienced a cooling-off period, with the TVL decreasing by approximately 51% from its peak.
Friend.tech made its debut on August 11, offering a platform for users to tokenize their social networks through the buying and selling of “Keys.”
Despite facing challenges and being declared “dead” in late August due to declining user activity and fees, the platform saw a remarkable resurgence in September.
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DefiLlama reported a 540% increase in Friend.tech’s TVL over the past month, primarily driven by a pump that began on September 9, coinciding with a resurgence in daily trading volume.
Further down the list, Base’s TVL is mainly attributed to multi-network decentralized finance platforms such as Compound, Curve, and Uniswap.
Additionally, Base achieved a new peak in daily transactions, reaching 1.88 million on September 14, according to data from BaseScan.
This accomplishment positioned it well ahead of competing chains like Optimism and Arbitrum, which collectively recorded nearly 880,000 transactions on the same day.
While daily transactions have dipped to approximately 908,000 as of September 22, Base’s all-time high remains unscathed.
In summary, Coinbase’s Base network has experienced a meteoric rise in TVL, surpassing Solana in a short span.
This growth can be attributed to the success of native projects like Aerodrome Finance and Friend.tech, as well as a surge in daily transactions, solidifying Base’s position in the rapidly evolving world of blockchain and decentralized finance.
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Dubai-based cryptocurrency exchange Bybit has revealed its decision to halt operations in the United Kingdom in response to impending regulations set forth by the country’s Financial Conduct Authority (FCA).
The exchange made this announcement on September 22, outlining a phased approach to suspending services for UK residents, commencing on October 1.
Beginning on October 1, Bybit will cease accepting new account applications from UK residents.
This initial step will be followed by further restrictions on October 8, which include suspending new deposits, prohibiting the creation of new contracts, and preventing changes to existing positions for their current user base.
The company’s decision to suspend services in the UK stems from the FCA’s introduction of new regulations governing marketing and communication practices within the cryptocurrency industry.
Bybit is opting to proactively embrace these regulations and temporarily halt operations in the UK market.
By doing so, Bybit aims to ensure compliance with the FCA’s rules, which are designed to establish clear, fair, and non-misleading marketing standards for crypto businesses.
Bybit’s timeline for winding down its services coincides with the FCA’s deadline for crypto asset firms marketing to UK users to fully comply with the specified rules.
The FCA initially unveiled these regulations in June and, on September 21, issued a reminder of the October 8 deadline while emphasizing the potential legal consequences for non-compliant firms.
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Bybit has expressed that the suspension of services in the UK will enable the company to direct its efforts and resources toward aligning with future UK regulatory requirements.
Notably, the FCA has suggested that certain firms may have until January 2024 to achieve compliance with the marketing rules, subject to prior approval from the regulator.
Earlier in May, Bybit undertook a similar winding-down process for its services in Canada, citing “recent regulatory developments” as the driving force behind the decision.
However, the company has also embarked on expansion efforts in various other regions.
Notably, it secured in-principle approval to operate as a cryptocurrency custody service provider in Kazakhstan in May, demonstrating its commitment to evolving in compliance with regulatory landscapes worldwide.
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Architect Financial Technologies, a startup founded by former FTX US president Brett Harrison, is set to revolutionize the world of financial derivatives.
The National Futures Association (NFA) has granted approval to Architect Financial Derivatives, a subsidiary of Architect Financial Technologies, to operate as an independent introducing broker.
This milestone paves the way for Architect to provide derivatives brokerage services, targeting both the cryptocurrency derivatives and traditional markets, as stated by Harrison himself.
An introducing broker, per NFA guidelines, facilitates the solicitation and acceptance of orders for various financial instruments, such as futures contracts, commodity options, retail off-exchange forex contracts, and swaps. However, it does not handle customer funds directly.
Architect, in essence, is a software provider, with its focus firmly set on building regulated businesses within the exchange-traded derivatives landscape, encompassing not only crypto derivatives but derivatives on a broader scale.
The Architect trading platform is poised to offer a diverse range of derivatives trading options on exchanges regulated by the United States Commodity Futures Trading Commission (CFTC). Clearing services will be provided through trusted, regulated partners.
Moreover, qualified customers will gain access to more than 20 internationally recognized and regulated exchanges through the platform.
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Brett Harrison initiated Architect Financial Technologies in January, securing $5 million in investment from notable backers, including Coinbase Ventures and Circle Ventures.
The company’s primary mission is to provide sophisticated trading software tailored for institutional investors.
Harrison’s track record in the financial industry is notable. As the former president of FTX US from May 2021 to September 2022, he led the company through significant milestones.
During his tenure, FTX US successfully completed a substantial $400-million funding round and unveiled plans to establish a stock trading platform.
His background, shared with former FTX CEO Sam Bankman-Fried, traces back to Jane Street Capital, highlighting a strong foundation in the financial sector.
In summary, Architect Financial Technologies, under the guidance of Brett Harrison, is gearing up to reshape the derivatives trading landscape.
With regulatory approvals in place and a commitment to offering cutting-edge solutions, the company is poised to serve both cryptocurrency and traditional markets, ushering in a new era of financial innovation.
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The forthcoming crypto bull run is poised to diverge significantly from its predecessor, and investors should exercise restraint in their anticipations of an imminent surge in cryptocurrency prices, according to Lars Seier Christensen, the founder of enterprise blockchain company Concordium, in a recent interview with Cointelegraph.
Despite the prevailing optimism in the crypto market surrounding the multitude of proposed spot Bitcoin (BTC) exchange-traded funds (ETFs), Christensen remains skeptical about their immediate impact on crypto markets.
He emphasizes that even if a Bitcoin rally does materialize, it does not guarantee a simultaneous surge in all crypto assets.
Christensen suggests that older altcoins like Ethereum may not experience a similar rally, contrary to expectations.
While digital asset prices have experienced a slump over the past 18 months, there remains an unwavering corporate interest in blockchain technology.
Consequently, Christensen envisions the next phase of industry growth to be marked by gradual, steady progress rather than the explosive price surges seen in 2021.
He notes that corporate entities require cryptocurrencies primarily for executing activities on specific blockchains, rather than solely for speculative gains.
However, not everyone shares Christensen’s perspective.
Ben Simpson, the founder of crypto education platform Collective Shift, argues that various data and indicators suggest the early stages of a Bitcoin bull market.
He points to metrics like the drawdown from the all-time high chart and market-value-to-realized-value ratio, which often precede bull markets.
Simpson identifies Bitcoin, Ether (ETH), and application-specific tokens, particularly those related to gaming, as assets poised for significant growth.
He also mentions DeFi tokens as offering substantial upside potential.
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The crypto industry has faced challenges in recent years, including a more hawkish Federal Reserve and the high-profile collapses of platforms like FTX and Celsius Network, resulting in decreased investments and falling crypto asset prices.
However, eToro Markets analyst Josh Gilbert is optimistic, anticipating a resurgence in the crypto market as central banks worldwide consider lowering interest rates.
Looking ahead, 2024 appears promising for Bitcoin and the broader crypto market, driven in part by the Bitcoin halving event.
Still, market analyst Tina Teng from CMC Markets advises caution, emphasizing the need for a conducive macroeconomic environment and central banks’ willingness to provide liquidity to markets for a true bull market to emerge.
Teng points out that the previous crypto market boom coincided with the Fed’s rate cut cycle rather than a rate hike cycle.
She underscores the significance of Bitcoin breaking through the 50-day moving average for a new bull market thesis to gain validation.
Teng concludes by highlighting ongoing concerns related to government bond yields and inverted bond yields, signaling economic uncertainty.
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Coinbase, a leading cryptocurrency exchange, has achieved a significant milestone in its European expansion by securing Anti-Money Laundering (AML) compliance registration from the Bank of Spain.
This development, announced on September 22, paves the way for Spanish users to securely manage their crypto assets on the platform while conducting cryptocurrency transactions in euros.
With this registration, Coinbase can now offer its full range of services to both retail and institutional users in Spain while adhering to the country’s legal framework.
The move comes as a response to the growing interest in digital assets among Spanish citizens, with a noteworthy 29% of adults believing that cryptocurrencies represent the future of finance.
In an intriguing revelation, cryptocurrency has emerged as the second-most-preferred payment method in Spain, surpassing traditional bank transfers.
This underscores the increasing adoption and trust in cryptocurrencies as a means of conducting financial transactions.
Nana Murugesan, Coinbase’s Vice President of International and Business Development, emphasized the exchange’s commitment to regulatory compliance worldwide.
Coinbase has been actively pursuing regulatory approvals and compliance measures in various countries, including Italy, Ireland, the Netherlands, Singapore, Brazil, and Canada.
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Coinbase’s achievement in Spain closely follows Crypto.com’s regulatory approval in the country, highlighting the continued growth of the cryptocurrency industry in the region.
The Bank of Spain had previously issued guidelines in October 2021 outlining the steps that crypto service providers should take to ensure AML compliance, reinforcing its commitment to combating illicit activities within the crypto space.
In line with its European expansion efforts, Coinbase made two attempts to acquire the defunct crypto exchange FTX Europe in November 2022 and September 2023.
This strategic move aligns with the European Parliamentary Research Service’s call for stricter oversight of the global crypto market by non-European regulators.
As the Markets in Crypto-Assets Regulation (MiCA) Act approaches its implementation deadline in December 2024, the EPRS emphasizes the need for a robust regulatory framework in non-EU jurisdictions to safeguard the EU’s financial system and autonomy.
Coinbase’s successful registration with the Bank of Spain marks another significant step in the cryptocurrency exchange’s global journey, solidifying its presence in Europe while complying with evolving regulatory standards in the crypto industry.
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The European Parliamentary Research Service (EPRS) has emphasized the critical importance of enhanced oversight from non-European Union (EU) regulators in order to foster greater stability and growth within the global cryptocurrency market.
With the Markets in Crypto-Assets Regulation (MiCA) Act on track for implementation by December 2024, a recent EPRS report underscores the necessity of establishing a more robust regulatory framework in non-EU jurisdictions.
The report underlines that the EU’s financial system and autonomy remain vulnerable to policy actions taken by non-EU countries, particularly in areas where MiCA is applicable.
The report raises significant concerns regarding potential repercussions on financial stability, the diminished attractiveness of the crypto market, and the mainstream adoption of stablecoins. These concerns underscore the urgency of addressing regulatory disparities on a global scale.
One of the key observations made in the report pertains to the United States, where a fragmented regulatory landscape prevails.
The presence of various state-level and federal stakeholders creates a complex web of regulations, indirectly impacting legal clarity and regulatory certainty within the crypto industry.
This fragmentation has the potential to hinder the growth and development of the sector.
The report also sheds light on the United Kingdom’s Financial Services and Markets Act, which, according to a study conducted for the European Parliament, is anticipated to diverge significantly from EU regulations concerning crypto-assets in the coming years.
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This divergence could introduce additional challenges for market participants operating in both the UK and the EU.
Highlighting the global scope of regulatory adaptation, the Malta Financial Services Authority (MFSA) initiated a public consultation on September 18th to align its crypto regulations with the forthcoming MiCA regulations.
The proposed revisions aim to harmonize rules governing exchanges, custodians, and portfolio managers with the EU’s MiCA regulations, reflecting the evolving international regulatory landscape.
In conclusion, the EPRS report underscores the critical need for international collaboration and alignment in cryptocurrency regulation.
As the EU moves forward with MiCA implementation, it becomes increasingly vital for non-EU jurisdictions to adopt compatible regulatory frameworks to ensure a stable, secure, and globally accessible cryptocurrency market.
The report serves as a timely reminder of the interconnected nature of the crypto industry and the importance of consistent regulatory standards to support its continued growth and maturation.
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The market for bankruptcy claims has displayed a robust appetite for the debts of the defunct cryptocurrency exchange, FTX, with major credit investors rushing to acquire FTX debts.
As reported by Bloomberg on September 21, 2023, investors such as Silver Point Capital, Diameter Capital Partners, and Attestor Capital have collectively purchased over $250 million worth of FTX debts this year, based on an in-house analysis of public court filings.
Notably, FTX’s debt has attracted interest from investors like Hudson Bay Capital Management, which acquired a $23 million FTX claim and subsequently sold approximately 50% of it to Diameter.
This growing demand has led to a surge in the prices of some FTX claims throughout the year. Certain lower-ranking FTX claims have seen a remarkable 191% increase, climbing from $0.12 in early 2023 to approximately $0.35 in recent weeks, according to data from the crypto debt broker Claims Market.
The historical indicative prices of “bid” and “ask” for larger FTX claims have also experienced an upward trend this year, as reported by Claims Market’s charts.
Investors are accumulating FTX claims with the expectation that the firm’s bankruptcy proceedings will unlock additional value when resolved.
However, it’s worth noting that major bankruptcies can take years to unravel, making it challenging to assess the final worth of a collapsed company, especially in the volatile world of cryptocurrency.
Some bankruptcy claim investors believe that the total value of all traded FTX claims may exceed the $250 million reported in public court records.
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Thomas Braziel, a bankruptcy claims investor, suggested that buyers and sellers often delay filing paperwork for debt trades.
He mentioned being aware of individual FTX claims surpassing $100 million, likening FTX to historical financial collapses like Lehman and Madoff.
In addition to debt claims, many investors are acquiring the rights to FTX crypto accounts that still hold assets trapped on the platform since FTX suspended withdrawals in November 2022.
Debt investment firm Contrarian Capital Management, for instance, acquired an FTX account containing a substantial amount of Bitcoin and Ether, alongside $430,000 in cash.
The phenomenon of protracted crypto bankruptcies is not unique to FTX; for instance, Mt. Gox, a major crypto exchange hacked in 2014, has once again extended the deadline for returning Bitcoin holdings to investors by another year. At the time of writing,
Bitcoin’s value has surged over 3,000% since the Mt. Gox hack, underlining the long-lasting repercussions of such incidents.
The backdrop of these developments is FTX’s ongoing restructuring efforts, with executives urging investors to complete the claims process via the FTX Customer Claims Portal by the September 29, 2023 deadline.
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Brian Armstrong, the CEO of the cryptocurrency exchange giant Coinbase, recently took to the social media platform X (formerly Twitter) to voice his stance on the regulation of artificial intelligence (AI).
In his statement on September 23, Armstrong firmly asserted his belief that AI should remain unregulated. He argued that the rapid development of AI is crucial, citing reasons such as national security as driving forces behind this need for swift progress.
Additionally, Armstrong cautioned against the unintended consequences that often accompany regulatory efforts, emphasizing that excessive regulation can stifle innovation and hamper healthy competition.
Drawing parallels to the evolution of the internet, Armstrong reminisced about a “golden age of innovation” in the digital realm when minimal regulation fostered boundless creativity and progress.
He contends that AI technology should follow a similar trajectory, remaining largely unencumbered by strict regulatory frameworks.
As an alternative approach to safeguarding the AI space, Armstrong proposed a decentralized and open-source model.
He suggested “letting the cat out of the bag,” implying that a more open and collaborative environment would be better suited to nurture AI’s growth and potential.
In contrast to Armstrong’s perspective, several jurisdictions worldwide have initiated efforts to regulate AI or voiced concerns regarding its potential impact.
China, for instance, implemented provisional guidelines for the management of AI activities on August 15.
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These regulations emerged as a joint initiative involving six of the country’s government agencies, marking a significant step in regulating AI amid the industry’s rapid expansion.
Meanwhile, in the United Kingdom, the Competition and Markets Authority conducted an in-depth study on the implications of AI for competition and consumers.
Released on September 18, their findings indicated that AI has the potential to bring profound changes to both work and daily life.
However, the pace of these changes raised concerns about their potential impact on competition in various sectors.
In conclusion, Brian Armstrong’s stance on AI regulation reflects his strong belief in maintaining a regulatory environment that allows AI technology to flourish without unnecessary constraints.
This perspective stands in contrast to the actions of other jurisdictions, such as China and the United Kingdom, which are actively exploring regulatory measures to address the challenges posed by the rapid advancement of artificial intelligence.
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On September 21st, the defunct cryptocurrency exchange FTX initiated legal action against former employees affiliated with the Hong Kong-incorporated entity Salameda, which was once part of the FTX group.
According to court documents, FTX has launched this lawsuit with the aim of reclaiming $157.3 million, alleging that this substantial sum was fraudulently withdrawn just hours before the exchange filed for bankruptcy.
The court filing specifically names Michael Burgess, Matthew Burgess, their mother Lesley Burgess, along with Kevin Nguyen and Darren Wong, in addition to two other corporate entities.
These individuals and entities are alleged to have held ownership of companies with registered accounts on FTX.com and FTX US.
The lawsuit contends that they withdrew funds during the “preference period,” a critical juncture preceding FTX’s bankruptcy declaration.
The court documents assert that these transfers to Defendant Michael Burgess were executed with the intent to obstruct, delay, or defraud the present or future creditors of FTX US.
Notably, these transactions occurred mere hours before FTX suspended all non-fiat user withdrawals on November 8, 2022.
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The lawsuit further alleges that Matthew Burgess applied pressure on FTX employees to expedite specific pending withdrawal requests from one of Michael Burgess’s FTX US exchange accounts, while misleadingly representing the account as his own.
This assertion is substantiated with messages exchanged on the communication platform Slack.
In a parallel development, the former CEO of FTX, Sam Bankman-Fried (SBF), currently finds himself incarcerated and awaiting the commencement of his two-part trial.
The first phase is slated to begin on October 3, 2023, with the second following in March 2024.
SBF had sought early release from detention, citing difficulties in adequately preparing for his trial while in jail and alleging that it infringed upon his First Amendment rights under the United States Constitution.
However, on September 21st, the judiciary ruled against granting him early release.
Furthermore, on the same day, Judge Lewis Kaplan upheld a Department of Justice motion, barring the testimony of SBF’s key witnesses.
This legal landscape underscores the complexity and high-stakes nature of the ongoing legal proceedings surrounding FTX and its former executives.
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