Last Updated : May 18, 2023 / 10:43 AM IST
Cryptocurrency roundup for May 18: UK MPs propose crypto regulation similar to gambling and more
A daily round-up of the most interesting articles on cryptocurrencies like Bitcoin, Ethereum and Tether to help jump-start the day.
New Regulatory Approach
Cryptocurrency or Gambling? UK MPs Call for New Regulatory Approach
UK lawmakers are urging the government to apply the same regulations to cryptocurrency trading as those currently enforced on gambling, pointing out the substantial risks these digital assets could pose to consumers.
Ripple Triumphs as SEC's Bid to Seal Cryptocurrency Speech Documents Denied
Industry Experts Weigh In on Ledger's Controversial Move: A Deep Dive
Ledger, a leading hardware wallet provider, recently launched a contentious update allowing devices to transmit encrypted fragments of users' seed phrases to others.
> This move, aimed at helping users recover their seed phrases, has sparked a heated debate among crypto experts.
> Some are concerned about the potential security and privacy implications, while others are more optimistic about the feature's security measures.
> Experts highlighted the importance of seed phrases, which are usually kept private by users, saying that the reaction on Crypto Twitter was strong, with many arguing that retrievable seed phrases imply storage, raising concerns among crypto experts.
> They also pointed out that Ledger's official statement assures users that the storage is encoded, fragmented, and decentralized. Full report here.
France Opens Its Doors to Crypto Companies Amid US Regulatory Uncertainties
In a move that suggests a secure and predictable regulatory environment, France is extending an open invitation to cryptocurrency businesses seeking refuge from the uncertainties of U.S. regulations.
> Currently, the European Union nation hosts approximately 74 registered crypto firms.
> However, this figure is set to rise, potentially reaching 100, as companies gear up for the European Union’s forthcoming Markets in Crypto Assets rules, which received formal approval earlier this week.
Dogecoin Daily Transactions Skyrocket: DRC-20 Token Standard Unleashed
Dogecoin's network activity hit an all-time high earlier this week, with a tenfold surge in daily transactions, briefly surpassing both Bitcoin and Litecoin.
> This spike in activity followed the implementation of a new mechanism on the Dogecoin blockchain that enables the creation of tokens.
> On Sunday, over 645,000 transactions were registered on the network, according to BitInfoCharts data. This significantly increased from Dogecoin's usual average of about 20,000 daily transactions.
> The uptick in network activity came after the introduction of the DRC-20 token standard on May 9.
> The DRC-20 token standard paves the way for developers to create tokens that use dogecoin (DOGE) for network fees. Continue reading.
Ripple's Strategic Move: Acquires Crypto Custody Provider Metaco for $250M
In a significant development, Ripple, the blockchain-based payment protocol firm, has announced the acquisition of Metaco, a Swiss crypto custody provider, for a deal worth $250 million.
> This strategic move was revealed in a company statement released on Wednesday.
> The acquisition of Metaco is set to extend Ripple's capabilities by integrating technology that allows for the custody, issuance, and settlement of tokenized assets.
> Metaco provides its clientele with an essential and secure infrastructure for crypto custody, enabling institutions to scale novel business models within the crypto economy.
> The foray into custody solutions opens up fresh avenues for revenue, as per Ripple's statement. More here.
Tether Holdings Diversifies: Unveils Bitcoin Investment Strategy
In a bold move to diversify its reserves, Tether Holdings Ltd., the company behind the world's largest stablecoin, has announced plans to invest up to 15% of its profits into Bitcoin on a regular basis.
> The decision comes into effect this month, with all Bitcoin acquired henceforth to be regarded as supplementary holdings over and above the obligatory assets reserved for backing its USDT token and other stablecoins, as stated by the British Virgin Islands-based company.
> Stablecoins, such as Tether, are digital tokens designed to mirror the value of less volatile assets like the dollar, typically secured by maintaining substantial reserves as separate collateral. Continue here.
Binance Market Share Dwindles: A 15% Drop
In recent months, crypto behemoth Binance has seen a dip in its market share by approximately 15 percentage points.
> Previously dominating 62% of the market in spot crypto trading volumes in February, Binance's share has since slipped to an estimated 47% this month, as per The Block's Data Dashboard. Despite this decline, Binance continues to be the world's premier spot crypto exchange.
> Binance's Chief Strategy Officer, Patrick Hillmann, conveyed to The Block in a recent interview, "We have a significant chunk of the market share at present.
> The desire to acquire more isn't there." He further emphasized the company's welcoming stance towards increased competition, stating, "In truth, we desire more competition.
> It's beneficial to the marketplace and the industry as a whole." More here.
Bitcoin, and Ether Trade Flat on Wednesday
> The world's largest cryptocurrency by market value Bitcoin witnessed a minor uptick on Wednesday, trading up over 1% in late evening trade at around 27410 levels.
> This movement is closely watched by investors in light of the ongoing debt ceiling discussions in Washington.
> In the last 24 hours, the price of BTC has fluctuated between $26,800 and $27,400.
> Ether, ranking second in terms of market capitalization, traded completely flat on Wedday, trading near the $1,830 mark.
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