Month: February 2023

• Vauld, a Singapore-based cryptocurrency lender, has received an extension from a court in Singapore to present its restructuring plan. This will give Vauld protection from its creditors until March 24.
• Last July, Vauld filed for creditor protection after suspending withdrawals, trading and deposits on its platform.
• Two digital asset fund managers have made takeover bids for the crypto lender.

Vauld Gets Extension for Restructuring Plan

Vauld, a Singapore-based cryptocurrency lender, has received an extension by a court in Singapore to present its restructuring plan, giving it protection from its creditors until March 24. The existing legal protection expires on Feb. 28.

Background of Vauld

Last July, Vauld had filed for creditor protection after it suspended withdrawals, trading and deposits on its platform. Two digital asset fund managers have since then made takeover bids for the crypto lender. As of July, Vauld owed creditors $402 million; 90% of which originated from individual retail investor deposits and authorities in India froze assets worth 3.7 billion rupees ($44.7 million) a month after filing for creditor protection.

Takeover Bids

Fellow crypto lender Nexo had been the frontrunner to acquire Vauld but talks broke down at the start of this year according to Bloomberg report last month. Both digital asset fund managers made takeover bids for the crypto lender however no agreement was reached yet as of now .

Current Status

The moratorium has been extended till 24-Mar-2023,” a Vauld spokesperson told CoinDesk via email”There will be another hearing scheduled before that to confirm the final decision about approval of scheme.”

Conclusion

Vauld’s extension gives them more time in order to come up with their restructuring plan and reach an agreement with one of the two digital asset fund managers who have expressed interest in taking over the company or else they risk insolvency if no agreement is reached before March 24th when their legal protection expires again

• Japan will launch a pilot program in April to test the use of its version of a central bank digital currency (CBDC) known as the digital yen.
• The move comes after more than two years of proof-of-concept experiments by the BoJ around the digital yen.
• The move also comes at a time when the BoJ is set for leadership transition, with Kazuo Ueda expected to take over the top job from Haruhiko Kuroda when his second five-year term ends in April.

Japan Launches Pilot Program for Issuing Digital Yen

The Bank of Japan (BoJ), announced on Friday that it will launch a pilot program in April to test its version of a central bank digital currency (CBDC) known as the digital yen.

Proof-of-Concept Experiments

This move follows more than two years of proof-of-concept experiments by the BoJ around the digital yen, even as China’s digital yuan continues to lead the CBDC race globally.

Leadership Transition

The announcement also comes at a time when the BoJ is set for leadership transition, with Kazuo Ueda expected to take over from Haruhiko Kuroda when his second five-year term ends in April.

FTX Japan Customers Get Their Funds Back

FTX Japan customers may be able to withdraw their funds as of mid-February, according to a blog post from Liquid by FTX, which would make them some of the first customers of the collapsed crypto exchange to get their money back.

Japanese Regulatory Framework Makes Recovery Possible

CoinDesk Executive Director of Global Content Emily Parker discusses how Japanese regulation made it possible for FTX Japan customers to get their funds back.

• The EU’s Markets in Crypto Assets (MiCA) regulation is ambitious and sets a high standard globally.
• Article 68, however, goes too far and poses a risk to innovation, privacy and security.
• It is important for regulators to understand that the blockchain industry is still in its early stages of development and that more flexible regulations are needed.

Overview

The European Union’s comprehensive crypto regulation, known as MiCA, is highly restrictive and could limit the growth and innovation of the blockchain industry. In particular, Article 68 poses a threat to the privacy and security of individuals, businesses, communities and nations. Gary Weinstein from Electric Coin Co., creators of Zcash states that it is important for regulators to understand that the blockchain industry is still in its early stages of development and that a one-size-fits-all regulatory approach may not be the best solution.

Risk To Innovation

According to MiCA Article 68, rules for operating a trading platform for crypto assets must prevent the trading of crypto assets with built-in anonymization unless holders of assets can be identified by authorized crypto-asset service providers. This language could have a detrimental impact on the growth and innovation of the blockchain industry by limiting its potential.

Threat To Privacy And Security

Article 68 poses a risk to both privacy and security by forcing stakeholders to identify themselves when they trade their assets on platforms governed by this rule. This puts personal data at greater risk as it is more easily accessible than ever before – leaving individuals vulnerable to malicious actors who could exploit their data or identities for financial gain or other purposes.

Flexible Regulations Needed

As such, it is vital for regulators to take into consideration that blockchain technology is still in its infancy when creating regulations surrounding it – allowing room for flexibility so as not to stifle potential growth or innovation within this sector while also ensuring compliance with regulatory requirements and protecting privacy & security at all times .

Conclusion

Ultimately, if MiCA Article 68 remains unchanged then it could have serious implications on both privacy & security as well as overall innovation within the blockchain sector – something which needs to be taken into consideration before any further steps are taken in regards to regulating this space moving forward .

• Coinbase shares rose 20% after Federal Reserve’s rate hike and Jerome Powell’s speech.
• Barclays note shows Coinbase volumes increased 56% in January from the previous month.
• Crypto-related stocks, including MicroStrategy and Silvergate Capital, rallied on Thursday.

Coinbase Shares Skyrocket After Fed Rate Hike

Coinbase (COIN) shares soared by more than 20% on Thursday following the Federal Reserve’s latest interest rate hike decision and remarks from Fed Chair Jerome Powell. The U.S.-based crypto exchange also gained a boost after winning a dismissal of a proposed class-action lawsuit by customers claiming Coinbase sold them unregistered securities. This news has pushed Coinbase stock up over 100% this year as the crypto industry is recovering from the FTX exchange collapse.

Barclays Note Shows Increasing Volumes for Coinbase

U.K.-based bank Barclays released a note on Thursday showing that Coinbase volumes rose 56% in January from the previous month, and are now near levels seen before FTX collapsed but remain below average for 2022. Most crypto-linked stocks like MicroStrategy (MSTR) and Silvergate Capital (SI) have also been rising along with broader equity markets.

Crypto Industry Recovers From FTX Collapse

The recent surge indicates that the crypto industry is recovering from its dip caused by the FTX exchange collapse last year. Edward Moya, senior market analyst for foreign exchange market maker Oanda, said: “We might be getting six more weeks of winter, but it doesn’t seem like we will be seeing an ice age in crypto.”

Fed Rate Hike Decision Positive For Crypto Markets

The positive outlook of cryptocurrency markets was further bolstered by Powell’s comments during his speech after the latest rate hike decision, where he noted progress in fighting high inflation rates in the U.S.. This news was welcomed positively among investors as it took some pressure off bitcoin prices which had been suffering due to fears of higher inflation rates leading to higher interest rates – something that could potentially lead to lower demand for cryptocurrencies such as bitcoin since it does not pay any interest income or dividends to its holders compared to other traditional assets like stocks or bonds which do pay out dividends or coupon payments respectively.

Conclusion

Overall, this news is being seen as positive for cryptocurrency markets as it may reduce some of the pressure on bitcoin prices while also increasing investor confidence in cryptos overall due to increasing trading volumes at exchanges like Coinbase and bullish sentiment among equity markets linked to cryptos such as those held by MicroStrategy and Silvergate Capital .

• Bittrex, a Seattle-based cryptocurrency exchange, is cutting its staff by more than 80 people due to the new economic environment.
• The layoffs affect employees in most departments across the company.
• Many other crypto exchanges have laid off staff in the wake of declines in cryptocurrency prices and the collapse of the FTX exchange.

Bittrex, a Seattle-based cryptocurrency exchange, has announced it will be laying off more than 80 of its staff due to the “new economic environment”. The layoffs will affect employees in most departments across the company.

The decision comes as a result of the market downturn triggered by multiple failures in the crypto ecosystem, which led to an outright collapse by the end of the year. Bittrex CEO Richie Lai stated in an internal email that the team had been working “aggressively” to reduce expenses and increase efficiencies, but were not successful.

Lai said, “These events have caused us to reset our strategy and balance our investments with the new economic environment in which we find ourselves.”

This news follows similar announcements from other crypto exchanges. In January, U.S.-based exchange Gemini announced a third round of layoffs, while Coinbase said it would cut 20% of its workforce.

The layoffs come in the midst of a turbulent period for the crypto markets. In the last year, cryptocurrency prices have seen a sharp decline and major projects and platforms have failed. This has resulted in a challenging environment for exchanges, as well as other crypto companies.

In response to the layoffs, Bittrex has pledged to provide affected employees with severance packages, outplacement services, and continued healthcare benefits. The company also said that it will do what it can to help them transition to new jobs.

The news of the layoffs from Bittrex is yet another example of the challenging market conditions currently facing the crypto industry. While the layoffs are unfortunate, the company’s commitment to helping its former employees transition to new jobs is a positive sign for the industry.