Crypto Chronicles: BitOK's Weekly Recap of Top Regulatory News
Get a quick and easy update on last week's top headlines with BitOK.
- 1. The head of Portugal's central bank says cryptocurrencies are not viable long-term and urges global regulationsMário Centeno has emphasized the need for international cooperation to create a strong regulatory framework to prevent regulatory loopholes. Centeno praised the European Union's crypto regulations but stressed the importance of global consistency in regulation. This echoes similar calls for global crypto regulation by regulators in Germany and India.
Source - 2. Kazakhstan's crypto miners are urging President Tokayev to address high energy costs and tax hikesCrypto miners in Kazakhstan have sent an open letter to President Kassym-Jomart Tokayev. They warn that the industry is in dire straits, with major players suspending operations and planning to exit the country. The miners argue that these challenges hinder the government's efforts to regulate the crypto sector and could lead to the industry's demise in Kazakhstan. Taxation on digital mining, based on electricity consumption, has caused these issues, making the country less competitive in the global mining landscape.
Source - 3. A California resident has filed a class-action lawsuit against Binance.US and its CEOThe suit alleges that Binance's tweets in November, along with their actions, harmed competitor FTX and attempted to monopolize the cryptocurrency market. These tweets led to the collapse of FTX, and the plaintiff seeks monetary damages, court costs, and disgorgement of ill-gotten gains. Both Binance and FTX are currently facing SEC actions, and the suit highlights the ongoing legal challenges in the cryptocurrency industry.
Source - 4. CommEx, the buyer of Binance's Russian division, faces ownership skepticism but insists it has no ties to BinanceIn an open letter to the community, CommEx stated that it is not owned by Binance and declined to disclose its ultimate beneficial owners (UBO). The company has been developing its platform for six months and has onboarded some former Binance employees. Despite these connections, Binance emphasizes that it no longer owns the exchange. CommEx has adopted design, APIs, and terms of use from Binance for a smooth user experience. Speculation persists about Binance's involvement with CommEx, but some believe such a move would contradict Binance's decision to exit Russia.
Source - 5. BlockFi's liquidation plan has been approved by a U.S. Bankruptcy Court in New Jersey, providing hope to over 100,000 creditors awaiting repaymentThe plan was approved after a dispute with the creditors committee was settled. BlockFi, which owes up to $10 billion to creditors, including $1 billion to its largest creditors and $220 million to Three Arrows Capital, blamed FTX's collapse for its own failure, though concerns about its relationship with FTX and its former CEO were raised by the creditors committee. BlockFi is being represented by law firms Kirkland & Ellis LLP and Haynes and Boone LLP.
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