Bitcoin reacts after reports Fidelity plans to apply for Bitcoin ETF
The price of Bitcoin (COIN:BTCUSD) surged following reports that asset management firm Fidelity was planning to apply for a spot Bitcoin ETF. While there was a brief increase to $31,000, it soon returned to $30,500. Fidelity had previously tried to apply for an ETF in 2021, but it was rejected by the US SEC. BlackRock has also recently filed for Bitcoin ETFs. Fidelity-backed EDX Markets launched a cryptocurrency exchange for financial institutions in the US a week ago.
ARK Investment leads Bitcoin ETF race
ARK Investment Management, founded by veteran investor Cathie Wood, is reportedly leading the race for an exchange-traded Bitcoin fund (ETF). While BlackRock has sparked optimism with its request for a Bitcoin ETF, analysts believe ARK and European asset manager 21Shares could be ahead. Observers noted that the SEC’s next decision date is August 13, 2023, and that other filings, including BlackRock’s (NYSE:BLK), do not yet have a set date. Despite growing optimism, experts believe that a Bitcoin ETF may not be available to the public for the foreseeable future, possibly until next year or beyond.
Bitfinex launches trading platform across Latin America
Bitfinex has announced the launch of a peer-to-peer trading platform in Argentina, Colombia and Venezuela. Users can buy and sell Bitcoin (BTC), Ethereum (COIN:ETHUSD), tether (COIN:EURTUSD) (COIN:USDTUSD) and tether gold (COIN:XAUTUSD). The platform allows the use of payment methods and national currencies of customers’ choice. Bitfinex invested in Chilean exchange OrionX and Tether invested in sustainable energy and Bitcoin mining in Uruguay. In 2022, Tether launched its MXNT token linked to the Mexican peso, its first entry into the Latin American market.
Robinhood lays off staff amid market downturn
Trading platform Robinhood (NASDAQ:HOOD) has laid off around 150 employees, representing 7% of its full-time staff, in a third round of layoffs since April 2022. The company is adjusting to the slowdown in client trading activity, with a drop in the number of active traders and cryptocurrency trading volume. In 2022, the company had already reduced its staff by 9% and 23% in two previous rounds of cuts.
Tezos implements “Nairobi” update for faster transactions
The Tezos blockchain implemented the “Nairobi” upgrade, making transactions up to eight times faster. The network can now process up to 1 million transactions per second after the “Mumbai” upgrade. Nairobi has introduced a new fee mechanism and allows continuous and automatic updating of Tezos Smart Rollups. However, usage of the Tezos network is still low compared to other popular blockchains.
Web3 companies in Hong Kong spend between US$2.55 million and US$25.5 million on VASP licenses
According to a report by Foresight News, Web3 companies in Hong Kong are spending between US$2.55 million and US$25.5 million to acquire Virtual Asset Licensing Scheme (VASP) licenses. Subsidiaries of Hong Kong exchanges such as OKX, BitgetX, HashKey Pro, OSL and Gate.io have already started operations. New VASP licensing requirements were released on June 1, and exchanges that do not meet the requirements will have to cease operations by the middle of next year. The Hong Kong Virtual Asset Consortium (HKVAC) has also launched a virtual asset index to facilitate cryptocurrency trading in the region.
Hong Kong implements regulations for cryptocurrencies
Hong Kong has opened its doors to the world of cryptocurrencies by implementing regulations to govern its trading and issuance. These measures were developed in collaboration with the Securities and Futures Commission (SFC) and aim to position Hong Kong as a leading financial center for innovative technologies. The Hong Kong Virtual Asset Consortium (HKVAC) has also launched a new virtual asset index, which includes several popular cryptocurrencies. While there are controversies regarding the cryptocurrencies included in the index, the Hong Kong crypto community believes that it will have little impact on the retail market.
Second FTX bankruptcy report reveals more details
The second report from the FTX restructuring team, released on June 26, reveals shocking details about financial fraud on cryptocurrency exchange FTX. The report alleges that FTX executives were aware of a shortfall of more than $8 billion in client funds as of August 2022. It also exposes Sam Bankman-Fried’s involvement in promoting fraud and reveals the flow of funds to controlled entities by friends and family. The report is evidence of a criminal conspiracy and could have a significant impact on the criminal prosecution of Bankman-Fried.
Liquidators seek $1.3 billion from Three Arrows Capital
Three Arrows Capital liquidators are seeking $1.3 billion from the founders of the failed crypto hedge fund, claiming they took on additional debt before the collapse, even though it was insolvent. The liquidators have discussed the allegations with creditors and are seeking to recover the funds through a court in the British Virgin Islands. The collapse of Three Arrows was one of the main events that triggered last year’s crypto winter, indirectly affecting other crypto companies exposed to the hedge fund.
DeFi project Chibi Finance accused of rug pull
The DeFi project Chibi Finance, recently launched on Arbitrum’s Layer 2 network, is being accused of carrying out a scam, making off with about $1 million in user deposits. The Chibi team took tokens staked by users and converted them into ether, transferring the funds to Ethereum via Tornado Cash. Chibi’s team disappeared and the price of tokens plummeted. This incident adds to a series of scams in the Ethereum Layer 2 ecosystem, including previous cases in Arbitrum and zkSync.
Damus urges Apple to adopt peer-to-peer payment systems
Following the removal of Damus from Apple’s App Store (NASDAQ:AAPL), the social media app’s team is urging the company to adopt censorship-resistant peer-to-peer payment systems. They state that they will continue to support the platform in other versions such as Android, web and desktop. The move sparked intense debate among industry leaders and users alike, and Damus announced plans to release a “freedom edition” and explore other distribution options. The cryptocurrency community has also shown support for Damus, criticizing Apple’s App Store monopoly and championing freedom.
Bitbns bug leaves user accounts empty
Several investors were panicked to find that their accounts on Indian exchange Bitbns were empty. Bitbns explained that a database update resulted in users having zero balances, but stated that the issue has now been fixed. Although balances were restored, some users reported unauthorized trading and selling of cryptocurrencies without reflecting on their accounts. While speculations of a possible hack arose, the CEO of Bitbns has denied any external security breaches. Cryptocurrency exchanges in India remain without government regulation.
Bank of England explores public blockchains for possible CBDC
The Bank of England, when considering the creation of a digital pound, known as ‘Britcoin’, is exploring different technologies beyond blockchain. During discussions, there were differences of opinion among the technologists involved. The bank plans to test multiple ledger types, including public blockchains, to identify the best technology platform for a potential CBDC. The end result depends on technological advances and ongoing consultations.
Reserve Bank of India digital currency pilot underway
Reserve Bank of India (RBI) Governor Shaktikanta Das expects the Central Bank e-rupee Digital Currency pilot to reach 1 million retail users by the end of this month. The pilot program is underway, and Das expressed confidence in the future of the CBDC, also highlighting plans to develop a central bank network for cross-border payments. He reiterated his concerns about cryptocurrencies and his advocacy of CBDC as an alternative.
Japan and Singapore partner to regulate cryptocurrencies
In a partnership announced on June 26, the Financial Services Authority of Japan (FSA) and the Monetary Authority of Singapore (MAS) have agreed to jointly regulate and pilot test cryptocurrency projects under the MAS’ “Project Guardian” initiative. The project aims to test asset tokenization and DeFi applications, with a focus on areas such as open networks, trust anchors and institutional-grade DeFi protocols. This collaboration follows the fintech cooperation framework established by regulators in 2017. Furthermore, Japan has recently relaxed its crypto laws, including tax exemptions for token issuers.
DataChain receives MUFG funding for blockchain interoperability
Blockchain interoperability startup DataChain has announced that it has received funding from Japan’s largest bank, MUFG. The companies are working together on blockchain interoperability for MUFG’s Progmat Coin, a stablecoin issuance platform. In addition, they are focused on the tokenization of securities, aiming at the settlement of securities transactions and enabling cross-transactions between various blockchain platforms. MUFG has also previously invested in blockchain, including a joint venture with Animoca Brands. The value of the investment was not disclosed.
Mythical Games gets funding from Series C1 and migrates to Polkadot
Game publisher Mythical Games has secured $37 million in Series C1 funding to drive its new market and other revenue initiatives. With this investment, the company will remain a unicorn, with a valuation in excess of $1 billion. The funding was led by Scytale Digital along with a number of investors including ARK Invest and Animoca Brands. Mythical plans to reach profitability by the end of the year and release its new Nitro National World Tour game. Additionally, they migrated their Ethereum blockchain to the Polkadot ecosystem due to Ethereum limitations in terms of speed and transaction costs.