2024-11-22 10:30

The U.K.'s long awaited crypto rules are starting the legislative process just as the European Union's take effect. The U.K. plans to draft a regulatory framework for the crypto industry by early next year, Economic Secretary Tulip Siddiq said at a conference. The rules will apply to stablecoins and staking services and will end months of uncertainty for the industry. The U.K. plans to draft a regulatory framework for the crypto industry by early next year, starting the process just as the European Union's Markets in Crypto Assets (MiCA) laws kick in across the trading bloc. "We aim to engage firms on draft legal provisions for the crypto asset regime including stablecoins as early as possible next year," Economic Secretary Tulip Siddiq said at City & Financial Global’s Tokenisation Summit on Thursday, according to a copy of her speech obtained by CoinDesk. The announcement follows months of uncertainty about the government's plans for the industry following its election. The previous Conservative government had put in place measures to treat crypto as a regulated activity in the Financial Services and Markets Act and had said that more rules would be coming for stablecoins and staking providers. The new Labour government, elected in July, intends to implement its predecessor's crypto proposals on the creation of regulated activities, including operating a crypto trading platform and a market abuse regime, in full, Siddiq said. Under current plans, stablecoins will no longer fall under the U.K.'s payments regime. There will also be a carve out for staking to prevent it being treated like a collective investment scheme. The European Union, the U.K.'s biggest trading partner, already has its crypto regulation in place. MiCA's rules on stablecoins took effect at the end of June and rest will kick in by the end of the year. Among them, the ability for crypto-asset service providers with a license in one member state being able to operate across the entire 27-nation bloc. https://www.coindesk.com/policy/2024/11/22/uk-to-draft-a-regulatory-framework-for-crypto-stablecoins-early-next-year/

2024-11-22 10:00

The world’s largest crypto exchange is in the process of overhauling its approach to regulatory compliance. Binance, the world’s largest crypto exchange, says it expects to have 645 full-time compliance employees on staff by the end of the year — a 34% increase from last November — as it continues to rapidly build out its compliance department. Including contractors, the crypto exchange already has over 1,000 employees focused on compliance, according to a Friday press statement from Binance. Binance’s intense focus on regulatory compliance is relatively new for the crypto exchange, which just one year ago, agreed to pay a massive $4.3 billion fine to various U.S. regulators for violating the Bank Secrecy Act (BSA) and knowingly allowing users to skirt international sanctions. As part of Binance’s settlement, founder and then-CEO Changpeng “CZ” Zhao agreed to step down as CEO and was sentenced to four months in prison for violating the BSA. Richard Teng, a former regulator in Singapore and the United Arab Emirates, took the helm at Binance after Zhao’s departure. He’s since been very vocal about turning the exchange into a model of regulatory compliance — something he sees as necessary to ensure the company is sustainable for the long term. Though Teng’s short tenure as CEO has certainly accelerated Binance’s compliance efforts, the exchange began making an effort to be more compliant with regulators well before Zhao stepped down in November 2023. Tigran Gambaryan, Binance’s head of financial crime compliance, left the Internal Revenue Service (IRS) in 2021 to join the exchange. Noah Perlman, Binance’s chief compliance officer, started in January 2023. In 2023, Binance increased its compliance spend by 36%. "Our industry has entered a paradigm shift and new phase of maturation where regulatory compliance is an essential standard to user experience and protection, business success, and responsible growth,” Perlman said. “Binance has matured alongside regulators and other players throughout the years, and the continued growth of our compliance team and program are a testament to that and this shift in our industry which is set for strong sustainable growth." Some of Binance’s recent compliance hires include people with long careers in traditional finance and government. Todd McElduff, Binance’s new enterprise compliance director, who will spearhead the exchange’s relationships with global law enforcement agencies, previously led the global financial crimes oversight division at PayPal. Before that, he was head of a financial crime division at Morgan Stanley. Binance has also hired two special investigations specialists, Céline Inial for France and Caner Akyürek for Turkey, who both previously spent nearly 20 years in law enforcement in their respective countries. “We are actively hiring for top compliance talent to strengthen our already industry-leading compliance program and team to match the demands of our rapidly maturing sector while global crypto adoption also grows rapidly," Perlman said. “We are proud of leading the industry’s standards in protecting users and the growth of our compliance team ensures we continue to protect our global user base of over 240 million.” https://www.coindesk.com/policy/2024/11/22/binance-boosts-compliance-staff-by-34-year-over-year-citing-industrys-rapid-maturation/

2024-11-22 08:43

On-chain activity shows the involvement of large investors and institutions, indicating that the price surge could have staying power. Cardano's ADA hit the highest level since May 2022. On-chain activity shows large traders are participating in the price rally. As bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market. Amid the excitement, proof-of-stake smart-contract blockchain Cardano's native cryptocurrency ada (ADA) is having its moment. The token has surged 10% in the past 24 hours, trading at 90 cents early Friday on Coinbase and other exchanges. That's the highest price since May 2022, according to CoinDesk Indices data. The price has risen 22% this week, taking the month-to-date gain to 152%. That has raised the token's market capitalization to $30.85 billion, making it the world's 10th-largest digital asset. In contrast, the CoinDesk 20 Index (CD20), a measure of the broader crypto market, has advanced 14% this week and 58% this month. ADA's rally is accompanied by continued accumulation from whales, hefty crypto addresses with more than $10 million in the token. According to Tagus Capital, whales now hold over $12 billion in ADA. On-chain activity confirms the involvement of whales and institutions, indicating that this rally could have staying power. Data from analytics firm IntoTheBlock shows the number of large transactions involving ADA has skyrocketed by 300% in two weeks. It's a sign of "heightened interest from institutional investors," Tagus Capital said in a daily newsletter, noting the spike in large transactions. "Some of this momentum is sentiment-driven, as previously noted, with Cardano's founder, Charles Hoskinson, hinting at potential collaborations with the Trump administration for crypto-friendly policies." https://www.coindesk.com/markets/2024/11/22/cardanos-ada-leaps-to-25-year-high-of-90-cents-as-whale-holdings-exceed-12b/

2024-11-22 06:35

Strength in BTC is leading to a rotation in other major tokens ahead of the weekend, buoyed by renewed bullish hopes about a crypto-friendly Trump administration that takes office in January. Bitcoin (BTC) is close to reaching $100,000, with prices hovering just over $99,000 after a recent spike. U.S. spot BTC ETFs have seen over $1 billion in net inflows, with BlackRock’s IBIT leading at $600 million. While there's strong demand and bullish long-term bets with futures and options pricing above $100,000 into 2025, a short-term pullback near $100,000 is anticipated. Bitcoin (BTC) prices are a little over 1% away from reaching a landmark $100,000, close to 15 years after the asset was first issued. BTC prices spiked above $99,200 early Friday, dipping to $98,600 before holding over $99,000 in Asian afternoon hours. Overall market capitalization stands at a record $3.4 trillion, adding 4.5% in the past 24 hours, mainly on BTC’s 2% jump (BTC is over 56% of the total market cap). Spot BTC exchange-traded funds offered in the U.S. recorded over $1 billion in net inflows, data shows, led by BlackRock’s IBIT at $600 million in purchases. Fidelity’s FBTC recorded over $300 million inflows, with no outflows from any of the eleven ETFs. Strength in BTC is leading to a rotation in other major tokens ahead of the weekend, buoyed by renewed bullish hopes about a crypto-friendly Trump administration that takes office in January. Ether (ETH) is up nearly 9% in the past 24 hours, boosting various indexes that track the broader decentralized finance (DeFi) sector by at least 8%. Notable Ethereum-based memecoins such as mog (MOG) and pepe (PEPE) are up as much as 27% on their tendency to act as beta bets on ETH’s growth. Solana’s SOL is up 8%, setting fresh highs above $260 amid exchange-trading fund (ETF) filings in the U.S. and continual usage of the blockchain for speculative trading. Cardano’s ADA is up 12%, the second-most gains among majors after XRP. Elsewhere, XRP zoomed 25%, leading growth among major tokens, as SEC chair Gary Gensler announced he would step down in January, clearing headwinds for tokens related to U.S. companies. Traders expect BTC prices to continue holding strong in the short term. “We continue to see strong demand for BTC alongside further easing of monetary policy by global central banks, BTC prices are likely to remain supported as we approach the end of the year,” traders at QCP Capital said in a Friday broadcast. “Throughout the week, our desk observed aggressive demand in March and June Calls, signaling investors' long-term bullish sentiment for next year.” Deribit's BTC futures expiring in March, June and September 2025 trade above $100,000. BTC call option at the $100,000 strike now boasts an open interest of over $2 billion, indicative of traders’ expectations of movement to the upside. A short-term pullback from the $100,00 level can be expected, however, as multiple CoinDesk analyses noted earlier in the week. https://www.coindesk.com/markets/2024/11/22/bitcoin-nears-100k-with-crypto-market-cap-at-record-34t/

2024-11-22 03:52

An incoming crypto-friendly regulatory environment for U.S. based companies has renewed optimism for certain tokens, especially XRP. XRP zoomed as Gary Gensler’s announcement of stepping down in January as chairman of the U.S. Securities and Exchange Commission (SEC) kept a multiweek bullish trade going. XRP prices surged 25% in the past 24 hours, with most of the gains in early Asian hours Friday, amid widespread belief of a shift toward a crypto-friendly regulatory environment for U.S.-based companies. XRP is closely-related to Ripple Labs, a high-profile payments company targeted by the SEC since 2020 on allegations of selling the token as a security to U.S. investors. Ripple fully cleared a long-drawn court case in 2024, bringing the spotlight back on XRP, a major token that commands a $77 billion market capitalization. The token is now up 65% in the past 7 days and 150% in the past month, data shows, with CoinDesk market analysts targeting a short-term price level of $1.40. Donald Trump's election victory in 2024 has been positively received by the crypto community due to his previously expressed pro-crypto sentiments. Investors are betting that his administration might foster policies conducive to the growth of the crypto industry. There are also expectations of an XRP exchange-traded fund (ETF) in the U.S. among some traders amid the perceived lenient regulatory environment. This week, XRP, alongside dogecoin (DOGE), recorded significantly higher trading volumes than usual leader bitcoin on South Korean exchanges in a sign of frenzied demand. XRP and U.S. dollar-denominated open interest are over record levels with over 2 billion tokens (worth more than $2 billion at current prices) in futures positions betting on further market volatility. https://www.coindesk.com/markets/2024/11/22/xrp-price-surges-25-as-headwinds-for-ripple-clear-even-more/

2024-11-22 03:40

The token of late has benefitted from multiple catalysts, including meme coin action, growing DeFi activity on the Solana network and the coming crypto-friendly presidential administration. Continuing a massive comeback from a crypto winter price collapse of more than 95%, (SOL), the native token of the Solana blockchain, has shattered its all-time high reached in October 2021. At press time, SOL was trading just above $263, higher by 11% over the past 24 hours and nearly 360% on a year-over-year basis. The new record came two years after the downfall of Sam Bankman-Fried's crypto empire FTX and Alameda Research, prominent backers of the Solana ecosystem. SOL plummeted to as low as $8 late in 2022 before beginning its turnaround to the current level. Now having survived 2022's near-fatal blow, Solana is benefitting from multiple catalysts, including bustling meme coin trading and surging decentralized finance (DeFi) activity on the network, as well as increasing institutional interest. Of that institutional interest, the odds of there soon being a U.S.-based spot Solana ETF have increased greatly with the election of crypto-friendly Donald Trump two weeks ago. Earlier Thursday, crypto foe and SEC Chairman Gary Gensler announced his intention to fully resign from the commission on Jan. 20 as Trump takes office. Also earlier today, Fox News reported on constructive talks between the SEC and possible SOL ETF issuers. https://www.coindesk.com/markets/2024/11/22/solanas-sol-surges-to-record-high-above-260/