Binance Confirms Bitcoin Lightning Network Integration for Deposits and Withdrawals
Cryptocurrency exchange Binance has confirmed its intention to join the Bitcoin (BTC) Lightning Network for deposits and withdrawals. Binance will join other major exchanges such as Bitfinex, Kraken and OKX that have already implemented the technology. The crypto community has spotted Binance nodes on the network, and the company has confirmed the operation of the “new Lightning nodes”, noting that there is still technical work to be done before full integration. Lightning Network adoption has been steadily growing, reaching an all-time high of 5,700 BTC.
FTX faces exorbitant legal costs after bankruptcy
Bankrupt cryptocurrency exchange FTX faces rising legal and advisory costs. Recent documents show that consultants charged $121.8 million in fees and expenses, with the law firm Sullivan & Cromwell leading the way with $37.6 million. The idea of restarting the exchange under new leadership gains traction to restore value to customers and reduce regulatory challenges. The FTX 2.0 coalition, led by Loomdart, seeks to speed up the return of money to creditors. FTI Consulting is also involved in the reboot process. FTX’s fate will be determined in the coming months.
Cuscal imposes banking restrictions on cryptocurrency exchanges in Australia
Payments provider Cuscal has imposed new banking restrictions on cryptocurrency exchanges in Australia through its partner Zepto. The country’s blockchain industry has denounced these restrictions and invited the parties involved to discuss the matter. The new guidelines require security controls and user identification, and exchanges must comply with the requirements or they will lose support from Zepto and Cuscal. Blockchain Australia supports secure digital transactions, but also champions users’ freedom to spend their money as they wish. The change will have a significant impact in Australia, according to Blockchain Australia.
Cryptocurrency Exchanges in Japan Call for Relaxation of Margin Trading Regulations
Cryptocurrency exchanges in Japan are asking authorities to relax regulations around margin trading, seeking higher leverage limits to drive market growth. The Japan Virtual and Crypto Assets Exchange Association (JVCEA), which is responsible for self-regulation in the industry, argued that this change would make Japan more attractive to crypto and blockchain companies, as well as encourage more commercial activity. The Asian country has maintained strict cryptographic regulations, but is also looking to become a cryptocurrency-friendly environment by investing in metaverse-related projects, NFTs and launching a central bank digital currency pilot program.
EDX Markets starts operations with a focus on institutional traders
EDX Markets, a non-custodial cryptocurrency exchange backed by Citadel Securities, Fidelity Investments and Charles Schwab (NYSE:SCHW), began operations today, June 20. Unlike traditional crypto exchanges, EDX focuses on institutional traders, without directly catering to retail investors. The exchange relies on retail brokerages to forward investor trade orders. Although not registered with the SEC, EDX supports trading in only four cryptocurrencies. Wall Street firms remain interested in the cryptocurrency sector despite the SEC’s regulatory approach.
Deutsche Bank applies for custody license for digital assets
Deutsche Bank (NYSE:DB) has applied for a custody license for digital assets from the country’s regulatory authority in a bid to expand its service offering and generate additional revenue. The move follows the similar initiative by the bank’s investment arm, DWS Group, and aims to provide custody services for digital assets, including cryptocurrencies. Deutsche Bank’s stance towards the cryptocurrency sector has evolved in recent years, with the institution exploring the potential of adding digital asset-centric services for its clients.
EIB issues blockchain-based digital bond with environmental incentives
The European Investment Bank (EIB) has issued a blockchain-based digital bond with environmental incentives. Denominated in Swedish krona, the bond offers a fixed rate of 3.638% over two years for institutional investors. The bond, called the Climate Awareness Bond, is registered with the Luxembourg Stock Exchange and will operate on the sustainable digital bond platform So|bond. The initiative aims to promote more sustainable financial systems and minimize the environmental footprint of IT infrastructure. The EIB has been exploring the use of blockchain for digital securities in recent years.
Arbol Launches Parametric Insurance Platform Powered by AI and Blockchain
New York startup Arbol has launched a parametric insurance platform powered by AI and blockchain in collaboration with RiskStream Collaborative. The platform, called dRe, offers reinsurance for weather events such as storms using smart contracts based on validated weather data from dClimate and Chainlink. The platform automates claims processes for faster payments and greater transparency. Arbol, which shares a founder with dClimate, raised $9 million in a funding round in January 2021.
Slovakia dodges the Digital Euro by guaranteeing by law the right to use cash as a form of payment
After a vote in parliament on June 15, Slovakia will guarantee by law the right to use cash as a form of payment. The new legislation was proposed as a precaution against the proposed digital euro. In addition, the country’s constitution will also be amended to strengthen shopkeepers’ rights to refuse cash payments to protect against theft and exposure to germs. The advent of a central bank digital currency (CBDC) in the European Union has been a subject of debate, with concerns over centralization and privacy.
BIS report defends implementation of unified electronic ledger for global financial system
A report by the Bank for International Settlements (BIS) advocates the implementation of a unified electronic ledger to improve the global financial system. This ledger would integrate central bank digital currencies (CBDCs), cash and tokenized assets on one platform, via automated smart contracts on blockchains such as Ethereum (COIN:ETHUSD). The BIS claims that this infrastructure would bring efficiency, security and cost savings to financial transactions, enabling securities settlement, tokenized deposits and more accessible trade finance. The BIS suggests that a collaboration between central banks and the private sector is needed to take this innovative project forward.
Crypto Community Reacts Against IMF Central Bank Digital Currencies
As the International Monetary Fund (IMF) moves forward with its efforts to push central bank digital currencies (CBDCs), part of the crypto community has reacted strongly against these initiatives. Members expressed concerns about increased centralized control and criticized the IMF’s proposed new platform for cross-border payments. Many viewed CBDCs as an attempt to amass power and control, while others described this vision as a dystopian nightmare. The backlash shows clear resistance to the idea of centrally controlled money.
Cardano releases Node 8.1.1 update to improve network performance
Cardano (COIN:ADAUSD) has released Node 8.1.1, an update aimed at improving network performance, especially for operators of stake pools. The update offers season cap improvements and fixes previous concerns. With the total amount locked into Cardano’s DeFi ecosystem increasing, the upgrade aims to meet the network’s growing needs. It brings improved efficiency, increased scalability, improved security, and fairer reward distribution. Despite this, the price of ADA has not shown much change, but interest in the Cardano ecosystem continues to grow, with an increase in the total amount locked into the DeFi network.
Indonesia adds XRP to the list of tradable assets
The Indonesian government has strengthened its adoption of cryptocurrencies by adding Ripple’s native token (COIN:XRPUSD) to the list of tradable assets in the country, totaling 501 digital assets. The regulatory amendment marks a significant step forward for cryptocurrency adoption, with the listed tokens receiving approval for legal trading. The update also determines the assets that can be traded on the Indonesian cryptocurrency market. These measures have sparked mixed reactions in the crypto community, with some optimistic about XRP becoming a payment option, while others express concern about government intervention in the industry. Indonesia is experiencing significant growth in its cryptocurrency industry, and the regulatory upgrade could attract more investors and businesses to the country.
Bitcoin Investors May Have to Wait 8 to 18 Months for New All-Time High
Glassnode explained that Bitcoin (COIN:BTCUSD) investors may have to wait 8-18 months for a new all-time high, based on past analysis. The current transition period has already lasted 221 days. The current cycle could still be in the transition phase, which could indicate that there are 8-18 months left for the price to reach a new high, if the November 2022 low is the bottom.
Lawyer drops Dogecoin manipulation case involving Musk
Elon Musk, CEO of Tesla (NASDAQ:TSLA) and Twitter, faces allegations of insider trading related to Dogecoin (COIN:DOGEUSD). A court filing revealed that a lawyer on Musk’s legal team has resigned from the Dogecoin manipulation case, following a leaked letter from the legal team. Musk denied owning the crypto wallets involved and hired a new lawyer. Investors allege that Musk artificially raised the price of DOGE through his Twitter posts.
Alibaba’s New Chief Executive Is Crypto Friendly
Joseph Tsai, the current executive vice president of Alibaba (NYSE:BABA) and cryptocurrency advocate, has been announced as the company’s new president, replacing Daniel Zhang. Eddie Wu will take over as CEO. This move raises speculation about Alibaba’s intention to embrace Web3 and cryptocurrencies in China as Hong Kong becomes a hub for the sector. However, there is uncertainty about China’s stance towards cryptocurrencies, and adoption is not yet guaranteed.