Tether Takes the Lead on Polygon with $735M Market Cap, Surpassing USD Coin

> Polygon's account metrics saw a minor dip in Q1 2023, with an average of 400,000 daily active addresses and 22 million new addresses added during the period.

MicroStrategy Emerges as Top Corporate Holder of Bitcoin

According to a report by Berenberg, MicroStrategy (MSTR) is in a unique position to benefit from the increasing price of Bitcoin.

> The business analytics software company, founded by Michael Saylor, currently holds around 140,000 BTC as a balance sheet treasury asset, making it the largest corporate holder of Bitcoin.

Bitcoin Long-Term Holders Profitable for First Time in Nearly a Year, Glassnode Data Reveals

Data from blockchain analytics firm Glassnode reveals that long-term holders of Bitcoin are currently profitable, marking the first time in nearly a year.

> Glassnode's seven-day average of bitcoin's long-term holder spent output profit ratio (LTH-SOPR) has crossed above 1, indicating that coins moved on-chain are being sold at a profit.

> The LTH-SOPR focuses on coins moved on-chain that have a lifespan of at least 155 days, reflecting macro market shifts more accurately.

> Historically, renewed profitability for long-term holders has presaged major market rallies, with previous crossovers dated May 2020, May 2019, and November 2015 coinciding with recovery rallies that eventually translated into multi-year bull runs. More here.

Hong Kong Monetary Authority Urges Banks to Support Licensed Virtual-Asset Firms

The Hong Kong Monetary Authority has urged banks to support licensed virtual-asset firms in their legitimate need for bank accounts, as part of the city's effort to establish itself as a hub for cryptocurrency.

> In a circular signed by Deputy Chief Executive Arthur Yuen, the authority called on banks to form dedicated teams and train staff to serve the digital-asset sector, while avoiding a "wholesale de-risking approach."

> This is in contrast to the US, which has cracked down on the industry, leading to skepticism from banks globally. As a result, many crypto companies have had to look for alternative payment rails.

> However, Hong Kong plans to let retail investors trade major tokens like Bitcoin and Ether from June 1st. Details here.

SEBC Termination and Binance Japan Launch Set for June 2023

According to a notice published on Friday, Binance, the world's largest cryptocurrency exchange by trading volume, is set to launch its services in Japan.

> In November of last year, Binance acquired regulated crypto exchange Sakura Exchange BitCoin (SEBC), and it has now announced that it will terminate existing services on SEBC by May 31 and launch a new service under the name "Binance Japan" after June 2023.

> However, listing tokens on exchanges in Japan requires vetting by the Japan Virtual Currency Exchange Association.

> Given Japan's high regulatory standards for cryptocurrency exchanges, Binance will need to comply with a number of requirements. Continue here.

Mastercard Collaborates with Blockchain Developers for New Crypto Credential Standards

Mastercard is collaborating with public blockchain developers Aptos Labs, Ava Labs, Polygon, and The Solana Foundation to develop a new set of standards called "Crypto Credential."

> The aim is to establish trust among consumers, businesses, and governments in the blockchain sector. Mastercard's head of crypto and blockchain, Raj Dhamodharan, stressed the importance of building trust in the blockchain ecosystem, saying, "We need a way for trusted, compliant, and verifiable interactions to take place on public blockchain networks."

> The company intends to create a standardized infrastructure that will help attest trusted interactions among consumers and businesses using blockchain networks.

> The standards will ensure that those who interact across web3 environments meet the defined standards for their desired activities. More here.

Bitcoin's Astounding $1 Million Prediction: Balaji Srinivasan Shakes Crypto Industry

During CoinDesk's Consensus 2023 conference held in Austin, Texas, entrepreneur Balaji Srinivasan shared his thoughts on Bitcoin's potential to reach $1 million by June 17 via a remote video link.

> Srinivasan, a former CTO of cryptocurrency exchange Coinbase, has been recognized for his early predictions on the impacts of COVID-19.

> In March, Srinivasan projected a remarkably optimistic future for Bitcoin in response to the depreciation of the US dollar, suggesting that the cryptocurrency could hit the $1 million mark within 90 days after March 17.

> "Could it be that it takes 900 days or even 90 months? It's possible, I don't have a 100% probability on it," he mentioned during the conference. Continue here.

Cross River Bank Faces FDIC Consent Order Amid Crypto Ties

The Federal Deposit Insurance Corporation (FDIC) has issued a consent order to Cross River Bank, a crypto-friendly bank with ties to major crypto firms like Coinbase and Circle, concerning "unsafe or unsound banking practices."

> The New Jersey-based venture-backed regional bank neither admits nor denies the allegations in the 34-page consent order.

> The FDIC found issues with Cross River Bank's compliance with fair lending laws and regulations, citing failures in internal controls, information systems, and credit underwriting practices.

> The FDIC provides insurance for depositors in American commercial and savings banks.

> A Cross River Bank spokesperson stated that the order resulted from a standard review related to the bank's lending processes two years ago. Details here.

Binance's Changpeng Zhao Warns Justin Sun Over SUI Token Grab: A Stand for Fair Distribution

Leading cryptocurrency exchange Binance has warned prominent blockchain entrepreneur Justin Sun sternly, cautioning him against using his funds to grab the LaunchPool SUI tokens.

> Binance CEO Changpeng Zhao took to Twitter to express his concerns and ensure fair distribution of the tokens for retail users, rather than allowing a select few "whales" to corner the market.

> Changpeng Zhao tweeted, "Our team told Justin, if he uses any of these to grab the LaunchPool Sui token, we will 'take action against it'. SMH. Binance LaunchPool is meant as airdrops for our retail users, not just for a few whales. On the bright side, blockchains are transparent..." Continue here.

Ohio Man Sentenced for Stealing $21 Million in Bitcoin: A Tale of Crypto Theft and Family Betrayal

The U.S. Department of Justice has revealed that Gary James Harmon from Ohio received a prison sentence of four years and three months for stealing 712 Bitcoin belonging to his brother.

> In January, Harmon admitted to the criminal charges, which included one count of wire fraud and one count of obstruction of justice.

> These charges carried a potential combined maximum sentence of 40 years.

> The stolen 712 Bitcoin, now valued at over $21 million, were taken by Harmon following his brother's arrest in February 2020.

> At the time of the theft, the funds were worth approximately $4.8 million, as stated by the Justice Department. Continue reading.

Coinme, Up Global, and CEO Face $4M in SEC Fines Over UpToken Offering Controversy

The Securities and Exchange Commission (SEC) has announced settled charges against Seattle-based Coinme Inc., its subsidiary Up, Global SEZC, and their CEO, Neil Bergquist, for conducting unregistered offers and sales of a crypto asset called "UpToken."

> The SEC's order also accuses Bergquist and Up Global of making false and misleading statements about the demand for UpToken and the amount raised during the offering.

> From October 16 to December 15, 2017, Coinme, Up Global, and Bergquist marketed the financial benefits of investing in UpToken, claiming that Coinme would purchase UpToken in the secondary market after the ICO.  Details here.

CoinMarketCap's Reality TV Show Revolutionizing Web3 and NFTs

CoinMarketCap is diving into the realm of reality TV with the launch of a new contest show called "Killer Whales."

> In partnership with Web3 entertainment company Hello Labs, the series takes cues from the popular show "Shark Tank" and aims to spread the entrepreneurial spirit of the Web3 world to a wider audience.

> "Killer Whales" offers a platform for entrepreneurs to present their innovative Web3 ventures, including non-fungible token (NFT) ideas, to a panel of experts.

> The judges, comprised of entrepreneurs, influencers, and Web3 company founders, will evaluate the pitched projects and provide valuable feedback.

US Congress Gears Up for Crypto Regulation: Key Lawmakers Reveal Plans

US House committees are gearing up to create crypto regulatory legislation in the "upcoming two months" following joint public hearings starting in May, as stated by Rep. Patrick McHenry (R–N.C.), the House Financial Services Committee's chairman.

> At CoinDesk's Consensus 2023 event, McHenry suggested the possibility of President Joe Biden signing a relevant bill within a year, but he acknowledged the inherent difficulties in legislating emerging technologies.

> McHenry explained that the proposed bill will tackle both securities and commodities challenges. Meanwhile, Sen. Cynthia Lummis (R-Wyo.) expressed her eagerness to collaborate with McHenry on these efforts. Details here.

Japanese Survey Reveals 69.4% Want Stricter Regulation in AI Chatbot Development

The growing integration of AI chatbots into contemporary technology and daily life has led to heightened concerns among the public.

> A study from Japan released on April 30 disclosed that a significant portion of the population is apprehensive about the pervasive use of AI chatbots.

> Kyodo News reported that 69.4% of Japanese respondents are calling for more stringent regulation in AI development.

> This survey is part of a larger study addressing various issues such as government approval rates and pandemic-related matters.

> The AI section gains relevance as Japanese officials recently expressed support for OpenAI, the organization behind ChatGPT. More here.

Crypto Exchange Poloniex Agrees to $7.6M Settlement with OFAC for Sanctions Violations

Cryptocurrency exchange Poloniex LLC has agreed to pay a $7.6 million settlement to resolve charges of alleged sanctions violations.

According to the US Department of Treasury's Office of Foreign Assets Control (OFAC), Poloniex engaged in 65,942 apparent violations of multiple sanctions programs between January 2014 and November 2019.

> This included transactions by customers in sanctioned jurisdictions, including Cuba, Iran, Syria, Sudan, and Crimea.

> OFAC stated that Poloniex allowed customers in these countries to engage in online digital asset-related transactions despite having reason to know their location based on both Know Your Customer information and internet protocol address data. Continue reading.

Bittrex Global CEO Challenges SEC’s Enforcement Actions, Citing Lack of Communication

Oliver Linch, the CEO of Bittrex Global, has stated that the cryptocurrency exchange had no chance to discuss a potential enforcement action with the U.S. Securities and Exchange Commission (SEC).

> The SEC charged Bittrex in April for operating as an unregistered exchange, broker, and clearing agency and Bittrex Global "in connection with its operation of a single shared order book along with Bittrex."

> Linch claims there was "precisely zero" communication between Bittrex Global and the SEC prior to the notice being issued.

> Linch also highlighted the uncertainty that comes with the lack of communication, stating that "You just don't know what's coming next or where it's going to come from or why or how in the U.S." Details here.

BTC and ETH Experience Significant Drop in Value Amid First Republic Bank Takeover

On Monday, Bitcoin's price continued to spiral downward, falling below $28,000 as US regulators prepared to take control of First Republic Bank.

> The largest cryptocurrency by market capitalization dropped over 5% in the past 24 hours and was trading at around $27,800.

> Ethereum, the second-largest cryptocurrency, also saw a decline of over 4% to trade at around $1,813 on Monday afternoon.

> This downturn followed JPMorgan's auction win to purchase First Republic assets, causing an overall dip in the crypto market.