Turkey is preparing to present a new law to regulate crypto assets to Parliament. The legislation, aimed at aligning with international standards and reducing risks associated with crypto transactions, will enforce strict regulations on the licensing and operation of cryptocurrency trading platforms by the Capital Markets Board. It will also ensure the safe custody of […]
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Robinhood Prepares to Fight SEC in Court Over Crypto, CEO Reveals
Robinhood Markets is preparing to fight the U.S. Securities and Exchange Commission (SEC) in court to defend its crypto business and establish “regulatory clarity in the United States for the benefit of our customers,” CEO Vlad Tenev said after his company received a Wells notice from the securities regulator. “The SEC’s continued attack on crypto, […]
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Bitcoin Cash Prepares Adaptive Blocksize Limit Upgrade, Commits to Network Scaling
Bitcoin Cash, the usability-focused Bitcoin hard fork, is preparing to perform a blockchain-wide upgrade slated to happen on May 15th. The upgrade implements the adaptive blocksize limit algorithm, allowing the network to adapt to future increases in demand without having direct input from actors, avoiding the opportunity for social attacks. Bitcoin Cash to Include Adaptative […]
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Ripple Prepares To Shake Up $150B Market With Imminent Launch Of New Stablecoin
In a notable development, blockchain developer Ripple Labs recently announced its plans to launch a stablecoin pegged 1:1 to the US dollar (USD).
Ripple Enters Booming Stablecoin Market
According to the company’s announcement on Thursday, the stablecoin’s reserves will consist of US dollar deposits, short-term US Treasury bills, and other undisclosed cash equivalents. All of these will be audited by a third-party accounting firm. Ripple plans to publish monthly certifications to ensure transparency.
With the stablecoin market currently valued at around 0 billion, Ripple’s entry is significant. The market is projected to exceed .8 trillion by 2028, highlighting the potential for growth and adoption.
Ripple CEO Brad Garlinghouse emphasized the importance of partnerships with compliant, crypto-native players for success in this space. He highlighted Ripple’s track record in launching new products and acquiring companies across various market cycles.
Garlinghouse believes that this move is not only a significant step for Ripple but will also positively impact the XRP Ledger (XRPL) community, driving more use cases, liquidity, and opportunities for developers and users.
Institutional And DeFi Adoption Across Multiple Ecosystems
Initially, the stablecoin will be available on the XRP Ledger and Ethereum (ETH) blockchains. Ripple plans to expand its presence to additional blockchains and decentralized finance (DeFi) protocols and applications.
Monica Long, Ripple President, stated that issuing the stablecoin on XRPL and Ethereum will unlock new opportunities for institutional and DeFi use cases across multiple ecosystems. Long further stated:
The XRP Ledger’s native capabilities, including a decentralized exchange and automated market maker, were built to utilize XRP as the bridge asset. Bringing a trusted stablecoin onto XRPL will drive more adoption and development, contributing to a vibrant ecosystem
Ultimately, Ripple’s stablecoin is expected to launch later this year, pending regulatory approval in the US market. The introduction of this stablecoin is a significant development that has the potential to reshape the stablecoin market while offering new opportunities for institutions, developers, and users alike.
Featured image from Shutterstock, chart from TradingView.com
Ethereum Price Prepares To Go On Another Bullish Spree, Key Support Intact
Ethereum price climbed to a new multi-month high above ,400. ETH is consolidating like Bitcoin and seems to be setting up for another bullish spree.
- Ethereum extended its increase above the ,400 resistance zone.
- The price is trading above ,350 and the 100-hourly Simple Moving Average.
- There is a key bullish trend line forming with support at ,250 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could correct lower, but dips might be limited below the ,250 support zone.
Ethereum Price Extends Rally
Ethereum price remained in a bullish zone after it settled above the ,000 pivot level. Bitcoin saw strong moves above the ,000 resistance. It even rallied toward the ,000 level. ETH also started a decent increase and cleared the ,320 resistance.
It surged over 10% and even tested the ,500 level. A new multi-month high was formed near ,496 before there was a sharp decline. A low was formed at ,111 and the price is now attempting a fresh increase. It is still above the 23.6% Fib retracement level of the upward wave from the ,111 swing low to the ,465 high.
Ethereum is now trading above ,350 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support at ,250 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the upward wave from the ,111 swing low to the ,465 high.
Immediate resistance on the upside is near the ,450 level. The first major resistance is near the ,500 level. The next major resistance is near ,550, above which the price might gain bullish momentum.
Source: ETHUSD on TradingView.com
If there is a move above the ,550 resistance, Ether could even rally toward the ,680 resistance. Any more gains might call for a test of ,800.
Downside Correction In ETH?
If Ethereum fails to clear the ,450 resistance, it could start a downside correction. Initial support on the downside is near the ,380 level.
The first major support is near the ,285 zone. The next key support could be the ,250 zone and the trend line. A clear move below the ,250 support might send the price toward ,120. Any more losses might send the price toward the ,050 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – ,285
Major Resistance Level – ,450
Coinbase Custody Head Departs As Crypto Giant Prepares For Bitcoin ETF Services
According to Bloomberg, Coinbase Global has recently experienced a change in leadership within its custody division. The departure of Aaron Schnarch, former CEO of Coinbase Custody, has been confirmed by a spokesperson, who also revealed that Schnarch was replaced by Rick Schonberg in August.
Per the report, the transition aligns with Coinbase’s efforts to offer services to applicants of spot Bitcoin (BTC) exchange-traded funds (ETFs).
Coinbase Affirms Readiness For Bitcoin ETF Approval
Rick Schonberg, who joined Coinbase in 2021, aims to provide experience to his new role, having previously worked at reputable financial institutions such as Goldman Sachs, State Street, and Tagomi, according to Bloomberg.
Coinbase on the other hand, has emerged as the preferred choice for custodial services among Bitcoin ETF applicants, including industry giants like BlackRock, Franklin Templeton, and Grayscale Investments.
Custody services play a crucial role for potential managers of spot Bitcoin ETFs, as investors rely on these providers to securely safeguard their digital tokens.
Notably, a Coinbase spokesperson emphasized the company’s preparedness for ETF approval, stating to Bloomberg:
We have extensively prepared for ETF approval. Our systems have been designed and tested to handle added trading volume, increased liquidity, and general increases in demand on our systems.
Coinbase Custody, operating as a trust company, falls under the regulatory oversight of the New York Department of Financial Services and undergoes auditing by Deloitte & Touche.
Countdown To Historic Decision
The race to obtain regulatory approval for the first ETF directly investing in the largest cryptocurrency, Bitcoin, is entering a critical phase.
The US Securities and Exchange Commission (SEC) faces a deadline of January 10 to decide whether to approve a spot Bitcoin ETF application submitted by ARK Investment Management, led by Cathie Wood, and 21Shares, along with potentially other similar filings.
Overall, the departure of Aaron Schnarch and the subsequent appointment of Rick Schonberg within Coinbase Custody highlight the company’s strategy to the growing demand for custodial services from Bitcoin ETF applicants.
With the potential approval of spot Bitcoin ETFs on the horizon, the industry eagerly awaits the SEC’s decision, which will have far-reaching implications for the adoption and mainstream acceptance of cryptocurrencies.
Bitcoin, the largest cryptocurrency in the market, is currently trading at ,100, representing a 1.1% decline over the past 24 hours.
In recent weeks, BTC’s price has been consolidating above ,000, exhibiting sideways movement since the beginning of December. However, it has achieved a notable gain of over 11% in the last 30 days.
It remains to be seen how the price of BTC will react to the potential approval of these index funds by the largest asset managers in the world, and what other impact it will have on the overall crypto market.
Featured image from Shutterstock, chart from TradingView.com
Hong Kong Regulator Prepares to Approve In-Kind Spot Bitcoin ETFs
Hong Kong’s financial regulator has published rules for spot bitcoin exchange-traded fund (ETF) issuers, allowing the use of both cash and in-kind creation models. This approach contrasts with the U.S. Securities and Exchange Commission (SEC), which insists on the exclusive use of the cash creation model for spot bitcoin ETFs.
Hong Kong Publishes Spot Bitcoin ETF Rules
The Hong Kong Securities and Futures Commission (SFC) published a circular on Dec. 22 for “authorized funds with exposure to virtual assets.” The regulator explained that the circular sets out the requirements under which the SFC would consider authorizing investment funds with exposure to virtual assets (VAs) of more than 10% of their net asset value (NAV) for public offerings in Hong Kong.
“Globally, the VA landscape has been evolving rapidly,” the SFC stated, noting that a broader range and a larger number of investment products providing crypto exposure, including crypto exchange-traded funds (ETFs), are now available to both retail and professional investors. Noting that they “have become increasingly popular,” the regulator detailed:
Demand for these products has also increased in Hong Kong. In light of these developments, the SFC has introduced regimes that allow the offering of certain VA products to the Hong Kong public with appropriate investor protection safeguards.
The SFC explained that it started accepting applications for ETFs with exposure to crypto assets primarily through futures contracts in October last year. “The SFC’s licensing regime of virtual asset trading platforms (VATPs) also became effective in June 2023, enabling Hong Kong investors to directly access large-cap spot VA, subject to certain eligibility requirements and robust investor protection safeguards,” the regulator added.
Spot crypto transactions and acquisitions by SFC-authorized funds must be carried out through SFC-licensed crypto trading platforms or authorized financial institutions, adhering to the regulatory requirements of the Hong Kong Monetary Authority (HKMA), the SFC emphasized. The regulator stressed:
Both in-kind and in-cash subscription and redemption are allowed for SFC-authorised spot VA ETFs.
Hong Kong is paving the way for spot bitcoin ETFs with both cash and in-kind models while the U.S. Securities and Exchange Commission (SEC) remains firm on the cash model. The U.S. regulator has reportedly given spot bitcoin ETF applicants until the end of the week to file amended registrations for inclusion in the first batch of decisions in early January.
What do you think about Hong Kong’s regulator preparing to approve spot bitcoin ETFs using both the cash and in-kind models? Let us know in the comments section below.
Latam Insights: Argentina Prepares for Run-off Election With Crypto on the Agenda, Colombia Works on Digital Peso
Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Argentina prepares for a run-off election with crypto on the agenda, Colombia works to formulate a digital peso, and Prosegur will build a crypto-secure bunker in Brazil.
Argentina Will Face a Run-off Election With Crypto on the Agenda
The first round of the presidential election in Argentina determined that Javier Milei, the libertarian candidate, and Sergio Massa, the current economy minister, will be facing a run-off election that has a crypto element to it.
While Milei has repeatedly proposed the elimination of the Central Bank of Argentina and the adoption of the dollar as legal tender in the country as the main points of his hypothetical administration, Massa recently discussed the creation of a national digital currency, which would be used by his administration to reduce tax costs and curbing tax evasion by bringing more of the Argentine economy to formality.
Massa, who led the first round in the election, also added another element to consider: the possibility of using gas from Vaca Muerta, one of the most significant Argentine crude oil deposits, to mine bitcoin.
At a meeting with Argentine cryptocurrency enthusiast Santiago Siri, Massa stated:
I like the Vaca Muerta proposal because it results in the reduction of carbon emissions. It has all the symbolic capital that Argentina needs in the coming years.
Colombia Advances to Create a Digital Peso
Ricardo Bonilla, economy minister of Colombia, recently revealed that the country was still working on creating a national central bank digital currency (CBDC), the digital peso. During a forum that examined the future of banking, Bonilla called Colombians to forget about cash, also charging against cryptocurrencies, stressing these were not “the best means for clear and transparent transactions.”
Bonilla clarified that the construction of the digital peso was being examined by the Central Bank of Colombia, the Superfinanciera (the national stock and financial regulator), the economy ministry, and the Congress. He added that the central bank would be the issuer of any CBDC.
Prosegur Will Build a Secure Crypto Bunker in Brazil
Prosegur, a Spain-based insurance and security company, announced that it will build a secure facility for cryptocurrency in Brazil. The so-called “bunker,” to be built in Sao Paolo, will include several security measures to avoid attacks, including 24/7 monitoring by redundant vigilance centers and a fog machine capable of filling the bunker in 30 seconds, leaving attackers trapped.
Jose Angel Fernandez Freire, Prosegur’s executive president, said that clear regulations helped the company build this facility in Brazil as an entrance door to provide these services to entities in other countries like Chile.
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Cardano Passes Crucial Update As ADA Price Prepares For 65% Rally
The Cardano ecosystem is ringing in significant transformations with the Cardano Foundation’s announcement of a pivotal modification to its staking parameters. After a stake pool operator (SPO) poll and thorough deliberations by the Parameters Committee, the foundation decided to update the network to enhance both its competitiveness and user experience.
The Cardando Foundation stated via X (formerly Twitter): “As a result of the Stake Pool Operator [SPO]-Poll and a subsequent evaluation by the Parameters Committee, the Cardano Foundation has successfully submitted a transaction on the Cardano mainnet to lower the minPoolCost parameter from 340 to 170 ADA.”
This development has been welcomed with a mix of anticipation and strategy from different sections of the Cardano community. Cardano staking pool “Stake with Pride” was quick to pivot in line with the new parameters, remarking:
The Cardano min Pool Cost fee has been dropped to 170 ADA from 340. SPOs can drop their fees starting epoch 445 on October 27th. They further pledged to optimize their policies with the recent modifications, firmly anchoring their “minPoolCost to 170 permanently, and Margin to 0% temporarily, as market dynamics are assessed.
The minPoolCost parameter, as explained in a Cardano Foundation blog post from September 13, had twofold objectives since its inception with the Shelley launch in 2020. The primary two goals were to act as a defense against Sybil attacks and to guarantee pool operators a floor income to sustain their server operations.
The Cardano Foundation elaborated, “By potentially halving minPoolCost we don’t enforce but allow the operators to reduce their ‘floor’ income.” The strategic change is anticipated to shift market dynamics favorably for smaller pool operators, providing them with a more level playing field.
Cardano (ADA) Price Poised For A 65% Rally?
The Cardano price has seen a strong uptrend in the past few hours, in line with the overall crypto market. At the time of writing, ADA was trading at .282, up 6.5% over the past 24 hours. The 1-day chart of ADA shows that ADA was able to break out of its 6-month downtrend (black line) this past Sunday. On April 15, ADA marked its high for the year at over .46, since then the Cardano price has been on the decline.
As a result of the breakout momentum, ADA was able to overcome the important 0.236 Fibonacci retracement level at .277. Remarkably, the price has already withstood a retest and established it as new support on the lower time frames. Should ADA manage a daily close above this price level today, the outlook for the Cardano price could turn further bullish.
As then, ADA would have to face arguably the most important resistance at the moment, the 200-day exponential moving average (EMA, blue line), at .299. The price indicator is often referred to as the “bull line”. Accordingly, a breach could maneuver ADA back into bullish territory. ADA last failed to complete a daily close above the 200-day EMA in mid-July.
If a breakout into bullish territory succeeds, the next targets would be the Fibonacci retracement level of 0.382 at .313, 0.5 at .341, 0.618 at .370, and 0.786 at .411. The pinnacle target remains the annual peak of .463, suggesting a prospective ascent of 65% from its present value.
In this context, it is important to mention that ADA has underperformed compared to other altcoins so far this year. For example: While Solana (SOL) is currently trading just below its high for the year and Ether (ETH) is only 15% away from a new high for the year, ADA is still 39% below this level.
On the one hand, this shows the existing potential, and on the other hand, it shows that ADA has not been one of traders’ favorite altcoins so far in 2023. Whether a rise above the 200-day EMA can change this remains to be seen.
Russian Law Enforcement Prepares to Seize Crypto Assets, Seeks Permission to Set Up Wallets
Russian investigators are pressing the parliament and government in Moscow for permission to open their own cryptocurrency wallets. This would allow law enforcement agencies to seize digital assets during criminal cases and eventually sell them, something that authorities in the United States and Europe already do.
Russian Prosecutors Lobby for Powers to Confiscate and Auction Cryptocurrencies
The Prosecutor General’s Office of the Russian Federation is proposing to allow investigative bodies to set up crypto accounts and wallets under their control for storing seized digital coins that can later be sold for the benefit of the state.
Speaking in the Federation Council, the upper house of Russian parliament, a representative of the Office’s Main Criminal Procedural Department, Madina Dolgieva, insisted that there’s no need to even change the law to grant such powers.
“The Prosecutor General’s Office has consistently advocated for the development and optimization of the confiscation mechanism as another procedural measure,” Dolgieva said during a round table discussion. She was quoted by the Interfax news agency as stating:
We can allow the investigating authorities to open their own cryptocurrency accounts and wallets.
This can be done through a government decree, Dolgieva elaborated. “It is not necessary to make changes to the Criminal Procedure Law because this is a lengthy process,” the law enforcement official explained.
She also believes that it’s necessary to issue a separate government decree or amend the current law governing enforcement proceedings in order to authorize the Russian Federal Bailiff Service to auction seized cryptocurrency.
Dolgieva made the suggestions after the head of Russia’s Prosecutor General’s Office, Igor Krasnov, demanded earlier this week that crypto exchanges providing services to Russian customers be obliged to register in the country and share user data with Russian law enforcement.
Krasnov also urged for adopting more comprehensive regulations for digital assets in Russia, insisting that the mere recognition of cryptocurrency as property is not sufficient to combat criminal flows in the difficult international situation now, which he believes increases the risks of exploiting vulnerabilities through crypto.
American and European law enforcement agencies already have established procedures to seize and sell crime-related crypto assets. Days ago, the U.S. Justice Department said it had seized cryptocurrency worth over 2 million linked to fraudulent investment schemes. In July last year, Finland’s customs service announced it had sold forfeited bitcoin worth over million.
Do you think the Russian government will authorize prosecutors and investigators to open cryptocurrency wallets? Tell us in the comments section below.