One week in review:
July 4–10 We've selected the hottest materials of the past week for you to stay up to date with the latest crypto news: | | #1. US financial regulator FinCEN hires its first-ever chief digital currency adviser | | | The United States Financial Crimes Enforcement Network, or FinCEN, filled a new role — that of chief digital currency adviser, unveiled on July 6, recruiting Michele Korver for the job. Korver has an array of experience in crypto regulation, including serving as digital currency counsel for the United States Department of Justice. | | | "Ms. Korver will advance FinCEN's leadership role in the digital currency space by working across internal and external partners toward strategic and innovative solutions to prevent and mitigate illicit financial practices and exploitation," said a public statement from FinCEN describing the new chief digital currency adviser position. | | | In other regulatory-related news, Wyoming, a U.S. state that has been highly favorable toward the crypto and blockchain industry, officially named the American CryptoFed DAO a legal entity — a first for any decentralized autonomous organization, or DAO. | | #2. Bitcoin price dips below crucial $33K support as Bitfinex shorts jump by over 5,000 BTC | | | Bitcoin (BTC) had another range-bound week, falling under the $33,000 mark on July 8, down from near $35,000. Short positions also became significantly more prevalent on crypto exchange Bitfinex, indicating bearish sentiment. Although Bitcoin fell below $33,000, the asset once again broke above the level on July 9. | | | BTC analyst Willy Woo noted that the current environment appears similar to that of the pre-Bitcoin breakout in the latter portion of 2020. The analyst noted metrics that show BTC being pulled into longer-term holdings, which could, in turn, decrease the available coins in circulation. Data also exposed a notable influx of fresh users on the Bitcoin blockchain. Additionally, Bitcoin exchange withdrawals have increased and deposits have lessened. | | #3. Poland financial regulator issues public warning about Binance | | | Regulatory complications surrounding the Binance crypto exchange continued to surface this past week, with several news developments on the scene. In light of recent regulatory moves around Binance related to Canada, Japan and the United Kingdom, the ruling body of Poland's finance scene, the Polish Financial Supervision Authority, or PFSA, cautioned Polish Binance users on their interactions with the exchange, as well as with crypto in general. | | | "In view of the protection of financial market participants and the warnings of foreign supervisory authorities, the PFSA Office recommends special caution when using the services of Binance group entities and when trading cryptocurrencies and crypto assets, as it may involve a significant risk that may result in the loss of funds," the PFSA said in a public statement on July 7. | | | Earlier in the week, Binance suspended the ability to send euros from bank accounts to its exchange platform, citing no firm explanation on its rationale for the move. "Due to events beyond our control, we are temporarily suspending EUR deposits via SEPA Bank Transfers from 8 am UTC on July 7, 2021," Binance noted in a July 6 email to exchange users. | | | Additionally, Binance users came forward with a class-action lawsuit against the trading platform, demanding significant compensation for losses they allegedly incurred due to the platform suffering outages during times of important price action. Participants claimed they did not have access to their accounts during pivotal periods of time. | | | Barclays bank also ceased payment card transactions to Binance. The exchange responded to the development with displeasure, saying the decision seemingly stemmed from a misunderstanding. In late June, the U.K.'s Financial Conduct Authority demanded that Binance Markets Limited, or BML, cease all domestic operations. Binance claims that BML is a separate legal entity. | | | In a separate story on July 7, Binance CEO Changpeng Zhao expressed positivity toward crypto industry regulation in general via a July 6 letter posted on Binance's blog. He noted a lack of regulatory clarity still exists and that Binance desires to work alongside regulators. | | #4. Prediction of the week. Goldman Sachs: Ethereum's popularity could see ETH become dominant store of value | | | Bitcoin is the dominant player in the crypto markets, holding the industry's prime position as the largest asset by market cap. The asset is viewed largely as a store of value, although Goldman Sachs expressed a view that Ethereum (ETH) could take over as the market's main asset, flipping Bitcoin in market cap as well as taking its spot as the core store of value asset in crypto. Goldman's rationale? The firm essentially said Ethereum has greater potential in terms of its versatility. | | | "Ether currently looks like the cryptocurrency with the highest real use potential as Ethereum, the platform on which it is the native digital currency, is the most popular development platform for smart contract applications," expressed Goldman via a July 6 communication, as reported by Markets Insider. | | #5. FUD of the week: 'Investors stay clear': UBS warns regulators could pop 'bubble-like crypto markets' | | | UBS, a well-known investment bank, sent clients a communication expressing concern over a potential crash in crypto prices due to increased regulatory scrutiny. UBS cited the recent regulatory tightening in China as one bit of rationale for recent downward crypto price action. | | | "Regulators have demonstrated they can and will crackdown on crypto, so we suggest investors stay clear and build their portfolio around less risky assets. We've long warned that shifting investor sentiment or regulatory crackdowns could pop bubble-like crypto markets," UBS noted, as reported by Markets Insider. | | #6. FUD of the week: Brazil's 'Bitcoin King' arrested over 7,000 missing BTC | | | Claudio Oliverira, Brazil's self-styled "Bitcoin King" and chairman of digital asset brokerage firm Bitcoin Banco Group, was arrested by Brazilian federal police on fraud charges relating to 7,000 of investors' BTC that the firm claimed went missing in 2019. According to a press release, federal police from the Curitiba Metropolitan Region served Oliverira, who was president of the group at the time the BTC was reported missing, and other persons associated with the firm with one preventive arrest warrant, four temporary arrest warrants and 22 search-and-seizure warrants. Several developments surrounding the firm raised suspicions, including a supposed hack that the operation claimed to have suffered in 2019 without being able to provide convincing evidence that the hack had actually occurred. Over 200 lawsuits have surfaced against Bitcoin Banco Group. Brazil's authorities have taken Oliveira into custody. | | | Feel free to explore the most important news with Hodler's Digest: | | | |
