Wyre, the cryptocurrency infrastructure provider, is shutting down its operations amidst the ongoing crypto winter. Once considered the future of finance, the cryptocurrency market has experienced a decline in interest, leading to Wyre’s decision to wind down.
The announcement came through a tweet on Friday, following Bolt Financial’s cancellation of its planned $1.5 billion acquisition of Wyre several months ago. This move highlighted the deteriorating conditions in the digital asset market.
The crypto industry has faced significant setbacks recently, including the highly publicized bankruptcy of FTX, a prominent crypto exchange, as well as lawsuits from the U.S. Securities and Exchange Commission against Binance and Coinbase Global (COIN.O). These events have further eroded confidence in the market and contributed to Wyre’s decision to cease operations.
Notably, Wyre clarified that its decision was not a result of regulatory action. Investors who have assets on the platform will have until July 14 to withdraw their funds through the company’s dashboard.
The winding down of Wyre reflects the broader challenges faced by the cryptocurrency industry. The once promising market has seen a decline in interest and confidence due to various factors, including increased regulatory scrutiny and concerns over security and market manipulation.
The decision by Bolt Financial to abandon its acquisition of Wyre underscores the cautious approach of industry players amidst the current market conditions. The reluctance to proceed with such a substantial investment suggests a loss of faith in the long-term viability and profitability of cryptocurrency-related businesses.
As the crypto winter continues to bite, industry participants are reassessing their strategies and seeking ways to navigate the challenging landscape. While some companies may succumb to the unfavorable market conditions, others are exploring opportunities to adapt, innovate, and rebuild trust in the cryptocurrency market.
Wyre’s decision to wind down its operations reflects the declining interest and challenging conditions in the cryptocurrency market. With major setbacks and regulatory actions impacting the industry, it is clear that the crypto winter is exerting its influence. As the industry adjusts to these circumstances, it remains to be seen how companies will navigate the evolving landscape and rebuild confidence in the future of cryptocurrencies.
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The Hong Kong Monetary Authority (HKMA), the region’s banking regulator, encouraged lenders in April to cater to the business requirements of licensed crypto exchanges. This announcement was a response to a Financial Times report suggesting that banks, including HSBC and Standard Chartered, were facing pressure from HKMA to accept crypto exchanges as clients.
Hong Kong, aiming to become a leading global hub for cryptocurrency, has taken numerous measures, such as attracting mainland China crypto firms and proposing the testing of a digital dollar in its mortgage market. The report noted that the UK-based lenders HSBC and Standard Chartered, along with the Bank of China, were probed by the HKMA last month regarding their hesitance to accept crypto exchanges as clients.
In an April 27 letter to the lenders, the HKMA highlighted that due diligence on prospective customers should not pose an “undue burden”, particularly for companies establishing offices in Hong Kong. Both Standard Chartered and HSBC confirmed their continuous dialogue with regulators on a variety of topics and ongoing involvement in the evolving crypto policies and developments in Hong Kong.
This push by Hong Kong for banks to incorporate crypto clients into their portfolios comes at a time when other nations like the U.S. are intensifying their scrutiny on crypto exchanges. The U.S. affiliate of Binance, for instance, had to cease dollar deposits last week after the U.S. Securities and Exchange Commission requested a court to freeze its assets.
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Stablecoin TrueUSD (TUSD) saw a slight deviation from its dollar peg on June 10, following the suspension of its minting activities through tech partner Prime Trust. At its lowest point, the fifth-largest stablecoin by market capitalization traded at $0.9964, and it is currently valued at $0.9981, according to CoinMarketCap.
Data from LedgerLens indicates that the current TUSD supply stands at $2.04 billion, backed by $2.08 billion in collateral.
This fluctuation follows an announcement by the TrueUSD team that the minting of TUSD through Prime Trust has been temporarily halted. The team confirmed that minting and redemption services via other banking partners remain unaffected. “Our partnerships with other banking institutions remain intact, ensuring smooth transactions,” the statement assured. Over the past year, the stablecoin has frequently deviated from its USD peg.
The connection between the minting suspension and recent insolvency rumors surrounding Prime Trust remains unclear. Prime Trust, a Nevada-based fintech infrastructure provider, laid off a third of its staff in January. The company has been managing Binance.US customer funds through its banking partners amid the broader US banking system’s resistance to crypto businesses.
Crypto custodian BitGo is reportedly planning to acquire Prime Trust. BitGo signed a non-binding letter of intent to purchase the company on June 8, aiming to acquire Prime Trust’s payment rails and cryptocurrency IRA fund to expand its wealth management services. The deal’s specific terms have not been disclosed.
This potential acquisition emerges as the U.S. Securities and Exchange Commission is proposing regulatory changes that would restrict crypto companies’ capacity to act as a customer’s custodian.
READ: Bitcoin hits 3-month low with bear market on the horizon
In a recent interview with the Wall Street Journal, Coinbase CEO Brian Armstrong insisted that the regulation of cryptocurrencies isn’t as complicated as it might seem. He expressed his confidence that the United States would achieve clear regulatory guidelines for the crypto industry, even though it might take time.
This interview comes on the heels of a lawsuit filed against Coinbase by the Securities and Exchange Commission (SEC) on June 6, alleging that the exchange was operating as an unregistered securities exchange, broker-dealer, and clearinghouse. Armstrong argued in the interview that Coinbase’s operations do not require these registrations.
“The assets that we trade are commodities, not securities, hence they do not necessitate such registrations. We operate our exchange on crypto commodities,” Armstrong explained.
He also noted that despite not claiming to be a broker-dealer, Coinbase had faced difficulties in activating its acquired broker-dealer license.
When discussing regulations, Armstrong argued that crafting sensible rules is not “rocket science,” and he expects the U.S. to arrive at the correct regulatory framework over time. He believes the SEC lawsuit against Coinbase is significant for the entire U.S. crypto industry, as he hopes it will bring more clarity and prevent the U.S. from lagging behind other countries in this arena.
Armstrong is optimistic that once clear and stable regulations are established in the U.S., it would encourage crypto businesses to return to the country. He stated, “We expect entrepreneurs who had left the U.S. to return, as they won’t be randomly targeted or face high legal bills unexpectedly.”
A previous report by Cointelegraph noted a 26% decline in the share of global crypto developers in the U.S. between 2018 and 2022, attributing this decrease to regulatory ambiguity.
Armstrong emphasized that clarity is needed, especially in defining the roles and boundaries of the two major U.S. financial regulators, the SEC and the Commodity Futures Trading Commission (CFTC).
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The U.S. Securities and Exchange Commission (SEC) and Binance’s U.S. subsidiary, BAM Trading, have jointly sought a consent order, which could modify some restrictions from a previous SEC asset freeze directive against the company. This prospective consent order aims to provide more assurances to the SEC while enabling BAM Trading to meet payroll and other financial obligations.
The new order would permit BAM Trading and its management to continue purchasing goods and services, pay employee salaries, cover pre-existing benefits, professional fees, and other ordinary business expenditures. However, it strictly prohibits Binance from transferring any assets to or for the benefit of any Binance-affiliated entity or individual, under any circumstances.
In this context, the order specifically mentions that Binance CEO Changpeng Zhao should not have access to any assets belonging to BAM Trading or Binance.US.
The SEC had filed an emergency request to freeze BAM Trading’s assets following its lawsuit against Binance and Zhao. In response, BAM Trading submitted a counter-argument, insisting that the SEC’s reason for requesting the freeze failed to meet the necessary burden of proof set by the court.
As of now, the proposed consent order is awaiting court approval. It seems that disagreements over certain specifics between the SEC and Binance are causing some delay. The court has requested additional clarification from both sides.
Judge Amy Berman Jackson has asked both parties to propose any changes to the consent order for the court’s consideration by 1:00 pm Eastern Time on June 13, according to a document viewed on the Public Access to Court Electronic Records website. The court will decide on the consent order after evaluating the input from both parties.
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The cryptocurrency market has been hit hard with Bitcoin dropping to a three-month low of $25,483 on June 10, a significant decrease of over $1,200 from the previous day, according to data from Cointelegraph Markets Pro and TradingView. Despite this, Bitcoin has fared better than major altcoins, which have suffered severely from US regulatory scrutiny.
The recent legal action by the U.S. Securities and Exchange Commission (SEC) against leading exchanges, Coinbase and Binance, has resulted in certain altcoins being delisted. In response, Robinhood, a popular trading app, revealed it would cease support for several cryptocurrencies implicated in the lawsuit. These include Cardano, Polygon, and Solana, which are expected to be dropped on June 27th, 2023 at 6:59 PM ET.
The announcement sparked a notable decrease in the value of the affected cryptocurrencies, with Cardano and Solana recording a 25% loss in 24 hours. Robinhood justified this move stating it regularly reviews its crypto offerings, and the decision was based on the latest assessment.
Crypto.com CEO, Kris Marszalek, expressed that such delistings and regulatory pressures are part of the growth and maturation process of the crypto industry. He anticipates the sector will emerge stronger, despite the current challenges. The platform also revealed that it would stop its U.S. institutional trading service from June 21.
Michaël van de Poppe, CEO of trading firm Eight, highlighted the significant impact of these developments on the overall cryptocurrency market capitalization. If the total market cap drops below its 200-week moving average (MA), currently standing at nearly $26,400 for Bitcoin, it will indicate a clear bearish trend. Van de Poppe conveyed his concern to his Twitter followers, suggesting that the worst might be yet to come.
In a recent announcement, Robinhood, the popular app for trading cryptocurrencies and stocks, revealed that it will discontinue support for Cardano, Polygon, and Solana. This action comes in the wake of the United States Securities and Exchange Commission’s (SEC) recent lawsuits against crypto exchanges Binance and Coinbase for allegedly offering unregistered securities, including these three tokens.
In a June 9 update, Robinhood stated that it will cease support for these tokens from June 27 onwards, following an internal review. The decision was primarily influenced by the SEC’s lawsuits against Coinbase and Binance, which according to Robinhood, created an “uncertainty cloud” around the tokens.
The company expressed its belief in the future of crypto and pledged to continue advocating for clearer regulations in the U.S. crypto market, so as to foster confidence among participants.
On June 5, the SEC accused Binance of dealing in unregistered securities. Soon after, Coinbase was subjected to similar charges, with the SEC identifying 13 tokens, including Cardano, Polygon, and Solana, as unregistered securities.
Robinhood’s chief legal compliance and corporate affairs officer, Dan Gallagher, a former SEC commissioner, testified in a congressional hearing on June 6, saying that functioning as a registered broker-dealer in the U.S. was akin to taking the difficult route in crypto. Even though Robinhood attempted to follow the SEC’s guidelines, Gallagher highlighted the complexity of the journey.
The SEC’s actions have caused a stir in the crypto community, leading to debates on the regulator’s approach towards digital asset companies. The case against Coinbase claimed that the exchange had been operating as an unregistered security broker since 2019, despite the firm going public in April 2021.
Changpeng Zhao, CEO of Binance and Binance.US, was mentioned in the SEC lawsuits for their purported involvement in unregistered token offers and sales, including BNB. In response to what it called the SEC’s “extremely aggressive and intimidating tactics”, Binance.US announced the suspension of U.S. dollar deposits on June 8.
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The world of cryptocurrencies is vast and can be overwhelming to navigate, especially when choosing the best crypto exchange to use to buy and sell your crypto in the UK.
Coinbase, Binance, and Gemini are three leading exchanges known for their unique offerings, security measures, and user-friendliness.
Read on to discover the pros and cons of each of these cryptocurrency exchanges.
Coinbase
Launched in 2012, Coinbase is one of the most recognizable names in the cryptocurrency industry. Renowned for its user-friendly interface, it has become a go-to platform for beginners. It provides access to a broad spectrum of cryptocurrencies, including Bitcoin, Ethereum, and more niche altcoins. The platform offers a useful learning section, Coinbase Earn, where users can learn about different cryptocurrencies and earn rewards.
Coinbase’s security measures are robust, with 98% of funds stored offline, two-step verification, and insurance coverage. It is a fully regulated and licensed cryptocurrency exchange, providing additional confidence to its users.
However, Coinbase has been criticized for its relatively high fees. While this may be offset by the seamless user experience and superior customer support, price-sensitive users may find other platforms more attractive.
Binance
Binance, founded in 2017, has quickly risen to prominence to become one of the world’s largest cryptocurrency exchanges in terms of trading volume. Unlike Coinbase, Binance caters more towards experienced traders with advanced trading features like futures and margin trading.
Binance hosts an extensive list of cryptocurrencies, arguably the most comprehensive among all exchanges. It offers lower trading fees compared to Coinbase, with further discounts for those holding its native token, Binance Coin (BNB).
However, the platform’s complexity may be overwhelming for beginners. Additionally, Binance has faced regulatory scrutiny in several countries, creating a level of uncertainty for some users. Nevertheless, it has a strong focus on security, employing a multi-tier and multi-cluster system architecture for maximum protection.
Gemini
Co-founded by the Winklevoss twins in 2014, Gemini is a regulated cryptocurrency exchange based in the United States. It is often considered one of the safest platforms, owing to its stringent security measures, including FDIC insurance for cash deposits.
Gemini differentiates itself with its strong focus on regulatory compliance, making it a trustworthy choice for institutional investors. Its clean, intuitive interface is beginner-friendly, but it also provides features such as price alerts and recurring buys that appeal to more seasoned investors.
Gemini’s downside is its relatively limited cryptocurrency offerings compared to Coinbase and Binance. Also, while its fee structure is transparent, it can be relatively high for small-scale transactions.
Which crypto exchange is best for you?
The choice between Coinbase, Binance, and Gemini largely depends on your specific needs and level of expertise. Coinbase stands out for its user-friendly interface and educational resources, making it ideal for crypto newcomers.
Binance, with its comprehensive offerings and advanced features, is a haven for experienced traders.
Finally, Gemini’s top-tier security measures and focus on regulatory compliance make it a reliable platform for both individual and institutional investors.
As the cryptocurrency landscape continues to evolve, it’s essential to reassess these platforms regularly. Staying informed and understanding the strengths and weaknesses of each can help ensure a smooth and secure trading experience.
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In response to mounting pressure from the United States Securities and Exchange Commission (SEC), Binance.US, the American division of the world’s largest cryptocurrency exchange, announced the suspension of US dollar deposits and prepared customers for a potential disruption to fiat (USD) withdrawal routes as early as June 13.
The firm, on June 9, highlighted the SEC’s “extremely aggressive and intimidating tactics,” forcing them to act in defense of their customers and platform by suspending USD deposits. Additionally, they alerted their users about potential interruptions in their fiat (USD) withdrawal channels due to actions by their banking partners.
Binance.US plans to pivot towards becoming a crypto-only exchange while ensuring a 1:1 ratio for customer assets. They warned users of possible delays in processing withdrawals due to increased volumes and weekend banking shutdowns, but assured that crypto trading, staking, deposits, and withdrawals would continue uninterrupted.
The firm attributed the growing difficulties faced by Binance.US and its banking associates to the SEC’s “ideological campaign against the American digital asset industry,” leading their banking partners to consider cutting off fiat connections to the exchange.
Effective June 9, USD deposits will be halted, and USD trading pairs will be delisted the following week. The exchange assured its commitment to supporting Tether trading pairs. Binance.US also informed users that remaining USD on the exchange may be converted into a withdrawable stablecoin.
Gamestop has ousted its CEO, Matt Furlong, who was instrumental in the company’s foray into the nonfungible token (NFT) market. Ryan Cohen, a billionaire investor popular among memestock traders, has been appointed Executive Chairman, following the announcement of Furlong’s departure.
Details surrounding Furlong’s termination were not made public, but an SEC filing disclosed that his contract included a commitment of 24 months of continued employment. He also stepped down from the company’s board, reducing its size to five members.
The announcement coincided with Gamestop’s Q1 earnings call, where the company reported earnings per share (EPS) that fell short of market expectations by over 133%. This report led to a 19% drop in the company’s shares, which are now trading at $21 after hours, as per Google Finance data.
Furlong was appointed as GameStop’s CEO in June 2021, shortly after the memestock event that led to a 3000% surge in GameStop shares, rising from $17.25 to $500 within a month.
Under Furlong’s leadership, GameStop launched its NFT marketplace in June 2022, amidst dwindling interest in NFTs. The company then integrated blockchain game NFTs into its marketplace through a partnership with the Web3 gaming platform and Ethereum layer-2 scaling solution, ImmutableX.
Despite the initially positive reception, with nearly $2 million in sales within the first 24 hours of launch, the platform’s performance soon deteriorated. By August, daily sales volumes on the marketplace had plunged to around $4,000, reflecting a 99.8% decrease from its debut day.