US Probes Binance
PayPal finally allows external crypto withdrawals, regulators investigate Binance over BNB issuance and what do billionaires think about crypto investments? These stories and more this week in crypto.
PayPal Allows Crypto Withdrawal
PayPal is finally allowing cryptocurrency holders to transfer their digital assets from its platform to other wallets and exchanges. The option to move crypto from PayPal to external wallets was the feature most often requested by users since the fintech giant went live with its crypto buy, sell and hold service in October 2020.
US Probes Binance Over BNB
US regulators are investigating whether Binance broke any securities rules by selling its own digital token, BNB, which is now the world’s fifth largest coin. Investigators are examining whether the 2017 initial coin offering amounted to the sale of a security that should have been registered with the agency. In response, Binance has stated that it’s working with authorities to meet all requirements.
Crypto Exchanges Delist Litecoin
Litecoin will be delisted from South Korean crypto exchanges Bithumb and Upbit due to modifications made to the coin. The exchanges stated they were shutting down market support for the 20th-largest cryptocurrency because of its newly activated Mimblewimble Extension Blocks. The modification enables greater privacy when conducting transactions, which conflicts with South Korean anti-money laundering regulations.
Terraform Labs Faces Global Investigations
The SEC and South Korea have launched separate investigations into Terraform Labs, the company behind the recently collapsed TerraUSD and Luna coins. In the US, the SEC is reportedly probing Terraform Labs on whether its marketing of the UST stablecoin violated federal investor protection regulations. Meanwhile, the Seoul Metropolitan Police Agency is also investigating a Terraform employee for allegedly embezzling bitcoin from the company’s treasury.
New York Regulates Stablecoin Issuers
The State of New York has released regulatory guidance for US dollar-backed stablecoins issued by regulated entities. This first-of-its-kind US requirement states that a stablecoin must be fully backed by reserves as of the end of every business day, and the issuer must have a redemption policy that gives the holder the right to redeem the stablecoin for US dollars.
Brokerage Firms Build Crypto Trading Platform
Market makers Citadel Securities and Virtu Financial have joined hands with retail brokerage firms Fidelity Investment and Charles Schwab to build a cryptocurrency trading platform. The new platform will enable access to a deep pool of liquidity for digital assets that can provide a major boost to crypto trading for retail investors.
Jay-Z and Jack Dorsey Launch Bitcoin Academy
Rapper Jay-Z and Block CEO Jack Dorsey have announced the Bitcoin Academy, a program to teach financial literacy in Brooklyn’s Bedford-Stuyvesant neighborhood where Jay-Z grew up.
The Bitcoin Academy will consist of a series of online and in-person classes open to anyone and provide participants with a mobile hotspot and a nominal amount of Bitcoin for hands-on learning.
Billionaire Adoption Rate Of Crypto
A recent survey by Forbes of the world’s wealthiest people revealed that nearly 30% are either directly or indirectly invested in cryptocurrencies. In contrast, only 16% of average American adults had any investments in cryptos. Sam Bankman-Fried, the founder of FTX who put his name openly on the survey, told Forbes that he held between 76 and 100% of his 20 billion dollar net worth in crypto.
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That’s what’s happened this week in crypto, see you next week.