Tag: FTX collapse

The Finale of the FTX Saga

After only a month of court proceedings and four hours of jury deliberations, the court found Sam Bankman Fried guilty of all seven...

FTX wants its Dubai unit excluded from US bankruptcy proceedings

Cryptocurrency exchange FTX has filed a motion to remove its Dubai unit from US restructuring proceedings The FTX Dubai unit seeks voluntary liquidation...

KuCoin exchange introduces a new KYC system

During the first quarter of 2022, the KuCoin exchange received a $150 million pre-Series B funding round from several investors. On June...

FTX seeks to draw $700M from Bankman Fried in lawsuit

FTX, a major crypto trading firm, has filed a lawsuit in the United States Bankruptcy Court for the District of Delaware, seeking over $700 million from investment firms it had previous ties with. The lawsuit, filed on June 22, contains 16 counts. The defendants named in the lawsuit include K5 Global, Mount Olympus Capital, SGN Albany Capital, and individuals Michael Kives and Bryan Baum. They are accused of being involved in transactions that resulted in the transfer of funds from FTX-affiliated firm Alameda Research.

Far-reaching effects of aggressive crypto market regulation

The spectacular rise of the cryptocurrency industry has presented a fresh challenge for financial regulators. Some researchers and policymakers have warned the overly aggressive crypto market regulation might clutter the promising new financial asset class. Others have indicated that businesses could flee the jurisdictions whose regulations they consider ‘anti-crypto’ to the less regulated jurisdictions. Moreover, some have suggested that crypto regulatory actions will inspire market activity by offering clarity to participants.

Crypto wash trading and the need for comprehensive regulation

Wash trading is a form of illicit market manipulation where an entity buys and sells the same financial asset to create a false impression of market activity. This practice gained traction with the rise of electronic trading in the early 2010s, as algorithmic trading programs began churning trades at unprecedented speeds. This old illegal financial market trick has unfortunately found its way into the crypto industry.

Westpac Bank bans Binance exchange from Australia

Westpac Bank has announced the official ban of Binace from the Australian Payment Service. Westpac Bank teamed with the National Australia Bank to...

Crypto Industry in 2023: hope from the first quarter after 2022 Struggles

The price increase is due to the selling exhaustion of sellers FTX’s collapse, an improving macroeconomic outlook for risk assets, and the impending arrival...

Crypto self-regulation key for sustaining industry’s development

African policymakers have remained apprehensive that people could use cryptocurrencies to illegally transfer funds from the region and sidestep local rules to avert capital outflows. Widespread crypto usage could also create risks for financial and macroeconomic stability by undermining the effectiveness of the monetary policy. The risks become even greater if countries adopt crypto as legal tender. Many people feel that if governments accept and hold crypto assets as means of payment, it could put public finances at risk. Until the time comes that African governments evolve a suitable regulatory response to the rise of web3 and blockchains, crypto self-regulation will help to shield customers against fraudulent elements within the ecosystem.

Crypto regulations holds back Africa’s Web3 potential

According to hedgewithcrypto, the number of legal issues involving crypto decreased by 30% in 2019. According to (SEC) Chair Gary Gensler, the...

Has the 2022 crypto bear market ended

Given these actions, one cannot rule out that global authorities are preparing to confront the industry through legal and regulatory means. And if some of these companies lose their battles with the securities regulator, this could negatively affect cryptocurrency prices. As such, no one should be cracking open the Champagne just yet. Yes, prices have recovered to some extent in the past few weeks, but with the global economy still mostly slowing down its decline rather than showing real strength, it would be just too premature to conclude that the 2022 crypto bear market has ended.

Recovery is in sight for the crypto industry in 2023

Of course, one of the exciting (if not frustrating) things about crypto remains its unpredictable nature. The foregoing provides a general overview of the crypto industry in 2023 (based on current trends). Nevertheless, it is almost certain that 2023 will also throw up more than a few surprises.

The time is ripe to fast-track crypto regulation in Africa

Crypto investors in Africa currently have minimal or no protection in the market, as there are no clear-cut regulations for protecting assets. Most of the trading happening in the crypto space is not regulated, creating a considerable gap. The lack of regulation means investor protection on crypto exchange platforms remains much weaker compared to the securities or futures market.

Crypto regulation: focus should be on centralized crypto and not DeFi

Crypto regulation should strike a balance by implementing a registration and licensing regime to enable the exchanges or custodians to legally serve consumers within that market, strengthening consumer protection rules and eliminating market manipulation tactics.

The place of crypto in 2023

The trend toward regulation and transparency of crypto in 2023 will gain traction. Consequently, more enterprises in the industry will grow emboldened and begin to interact with crypto to offer services to their customers. Despite recent developments in the crypto industry, it remains a significant area of interest. Customers are continually looking for methods to engage in the possibilities of a decentralized, low-cost, globally accessible banking system. They will, however, want to do so as securely as possible, with the comfort provided by professional guidance, rock-solid custodian services, and organizations with a strong history of governance and thorough third-party audit. Crypto became cautious in late 2022 and will aim to get serious in 2023. People should expect to see more suits and fewer surf and skater clothing at events and conferences where the crypto community meets.

Crypto Winter into an ice Age in 2023

According to David Marcus, CEO of Lightspark, a Bitcoin-focused company, the crypto is showing no signs of warming up. The direct Bitcoin/Crypto price...