FreeCryptoCurrency.Me

ALSO: A crypto markets analyst suggests that the U.S. central bank may not be finished with interest rate hikes, even if it raises the rate on Wednesday as expected.

Investors are ditching the centralized exchange giants to stake their ETH holdings on decentralized alternatives amid regulatory concerns, and as they chase higher rewards, crypto analysts say.

Ether also rose. Equity markets dropped, including stocks of two regional banks.

Amid the initial bank failures in the U.S., the tech entrepreneur in mid-March had bet $1 million that bitcoin would hit $1 million within 90 days.

Crypto exchange Binance and stablecoin issuer Circle submitted feedback to the UK government as the country considers a new framework to govern both trading and lending of digital assets.

Binance, by far the largest exchange in the world in terms of volume, said that special attention needed to be paid to consumer protection, market integrity and financial stability. It warned, however, that disproportionate regulation could “inadvertently stifle innovation and growth, remove choice and competition, and potentially drive consumers to unregulated markets or operators.”

“Achieving this balance is not easy,” the company wrote in a letter to the country’s Treasury, which had solicited input in February after unveiling an initial plan. 

While disclosure requirements should “provide the right information to consumers,” Binance said it questioned whether trading venues can “take on the responsibilities of the issuer in a traditional sense” when there is no issuer. It also said that decentralized finance needs to be “carefully defined,” with differences considered and accommodated in the drafting of new rules. 

“Listings/delistings should be handled by exchanges, and exchanges should be held responsible for providing the correct information to consumers based on clear disclosure rules, and performing sufficient due diligence,” Binance CEO Changpeng “CZ” Zhao wrote on Twitter, adding that the company supported the introduction of a Crypto Market Abuse Regime “to mitigate the risks and challenges specific to crypto.”

The feedback comes as global regulators are figuring out how to regulate the industry. Last month, the European Union officially passed its Markets in Crypto Assets (MiCA) regulation after lawmakers in the European Parliament approved the rules. And in the U.S.,And in this U.S., there are calls for more clarity from the industry amid increased regulatory scrutiny from the SEC and CFTC.

 

Circle asks for more clarity on stablecoins

Circle, meanwhile, said it agreed with the UK government’s objectives “to bring cryptoassets into the UK regulatory perimeter and create proportionate and agile rules so that digital asset firms can thrive and provide innovative and cost-reducing financial services to the UK market.”

The company, which manages the USDC stablecoin, said the country should make the registration process for digital asset firms “simple and transparent, with clear indicative timelines and feedback from supervisors on what constitutes good or bad practices.” 

“Circle urged HM Treasury to swiftly disclose its plans for the regulation of fiat-backed payment stablecoins,” the company said in a blog post. “Circle requested additional clarity on the distinction between what constitutes ‘cryptoasset’ activity versus activity related to payment stablecoins involved in payment service provision.”

The UK’s consultation process comes as companies have been accusing the primary regulator on the other side of the Atlantic, the U.S. Securities and Exchange Commission, of dragging its feet on providing clear rules for the sector. 

A16z crypto, the venture capital fund, said yesterday that it’s urging the UK to consider a “more nuanced approach” to the pending legislation and said “a ‘one-size-fits-all’ approach to the regulation of cryptoasset transactions would not be consistent with the Treasury’s core design principle of ‘same risk, same regulatory outcome.'” 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Big Inc, the sequel to the goblin-themed collection, will be giving a 50% discount to token holders who mint using the memecoin PEPE.

Digital Currency Group rode the cryptocurrency rally over the first quarter to post revenue that topped the previous quarter, but still lagged the year-ago period.

The group’s first quarter revenue totaled $180 million, up 63% from the fourth quarter. That’s still down 46% from the first quarter of 2022, when bitcoin traded about $40,000.

“DCG’s financial performance this year so far is reflective of the market,” the letter said. 

The firm also shared that DCG Chief Financial Officer Michael Kraines stepped down from his role in April. DCG President Mark Murphy and Chief Strategy Officer Simon Koster are co-leading the finance department while executive search company Heidrick & Struggles look for a new financial officer. Kraines had been CFO since March 2021.

DCG did not immediately respond to a request for comment. 

DCG creditors ‘reneged’

The shareholder update comes after Genesis, a DCG subsidiary, filed for bankruptcy protection in January. Although Genesis and DCG had reached a deal with creditors, DCG said last week that a said last week group of creditors had “reneged” on the agreement. 

“DCG worked around the clock last winter to reach the original deal with Genesis and its creditors and will remain focused on implementing a fair and reasonable agreement for all parties. We will continue to update you as the process unfolds,” DCG said in the letter. 

Also during the first quarter of 2023, DCG repaid a $350 million senior secured term loan that was issued by a lender syndicate led by Eldridge, a private equity investment firm. 

“Aside from the amounts owed to Genesis, DCG no longer has any third-party debt. This is a major milestone and we’re looking forward to shifting our focus towards the next stage of DCG’s growth,” the letter said. 

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Solana, Algorand and Polygon saw minor inflows last week as money poured out of the broader crypto sector ahead of the U.S. Federal Reserve’s Wednesday meeting on interest rates.  

Overall, digital asset investment products saw outflows of $72 million in the week ending April 28, CoinShares said in an emailed report, adding that it believed it was a reaction to the likelihood of further interest rate hikes. That’s the second week in a row of declines.

Bitcoin, the largest cryptocurrency by market share, saw the majority of outflows, which totaled $46 million. Ethereum experienced the largest week of outflows since The Merge in September, with investors pulling out $19 million. 

Crypto outflows

“Volumes remain subdued for the broader crypto market,” CoinShares said, noting that exchange traded product volume of $1.7 billion is 16% above the year average. Investments short on bitcoin also saw outflows of $7.8 million last week, although they remain the winner in terms of year-to-date inflows that have reached $119 million.

The U.S. central bank is expected to increase rates by 25 basis points tomorrow, although the probability that it might keep rates unchanged has risen since yesterday, according to CME’s FedWatch tool. Grayscale said on Monday that crypto prices could still benefit even if the Fed hikes rates, as long as the decision aligns with market expectations.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.