STABLECOINS
Banks increase risks to stablecoins
The death of the Terra ecosystem triggered a bear market in 2022, causing losses in billions, affecting investor sentiment, and intensifying the regulatory spotlight over cryptocurrencies. Recently, Circle's disclosure that Silicon Valley Bank (SVB) did not process its $3.3 billion withdrawal request led to the depegging of its USD Coin (USDC). This event caused Binance CEO CZ to believe that traditional banks are a risk to stablecoins that are usually pegged 1:1 with fiat currencies, like the U.S. dollar.
US Federal Reserve to Create Cryptocurrency Team Amid Concerns Over Unregulated Stablecoins
The US Federal Reserve is planning to establish a specialized team of experts to keep up with developments in the cryptocurrency industry, specifically focusing on stablecoins. The move comes amid concerns that unregulated stablecoins could put households, businesses, and the broader economy at risk. While acknowledging the transformative potential of cryptocurrencies, the Federal Reserve believes that appropriate guardrails need to be in place to ensure that the benefits of innovation can be realized.
Binance pivots to stablecoins after SEC regulatory action
Binance, the largest cryptocurrency exchange by trading volume, has turned to alternative stablecoins such as TrueUSD (TUSD) and decentralized stablecoins, following a regulatory action against its native stablecoin, Binance USD (BUSD), by the US Securities and Exchange Commission (SEC). Binance was forced to seek alternatives after the New York Department of Financial Services (NYDFS) asked BUSD issuer Paxos Trust to stop minting new BUSD altogether.
IMF Prioritizes Regulation over Ban on Crypto
The International Monetary Fund (IMF) supports regulating digital money and prioritizes differentiating between central bank digital currencies and crypto assets, such as stablecoins. The IMF's Managing Director, Kristalina Georgieva, clarified that the nuclear option to ban cryptocurrencies remains on the table, but the agency would prefer to pursue good regulations, predictability, and consumer protection.
Financial Services Reforms Advance UK Crypto Ambitions
The U.K. Chancellor of the Exchequer, Jeremy Hunt, laid out a number of reforms aiming to "drive growth and competitiveness" to the country's financial services sector. The reforms include consulting on proposals for the establishment of a central bank digital currency (CBDC), extending a crypto tax break for investment managers and creating a sandbox that lets firms and regulators test new technologies.
Russia Plans to Use Digital Rouble In Settlements with China, Says Lawmaker
Russia used to resist legalizing crypto. However, it is now willing to embrace the use of cryptocurrency for cross-border payments due to geopolitical tensions.
Bank of America Says Binance to Benefit from Increased Supply of Its Own Stablecoin
BAC has given more clarification on how Binance’s automatic conversion of other stablecoins could impact its business as well as its own BUSD stablecoin.
Bit.com Rolls Out USD Perpetual Trading for Diversification Purposes
To eliminate overreliance on a single type of stablecoin, Seychelles-based crypto exchange @Bit.com has rolled out USD perpetual trading, starting with BTC/USD and ETH/USD pairs.
Opinion: Terra – A lesson learnt for trading platforms?
The events related to the Terra and Luna collapse highlight why trading platforms need to provide clarity and education for their users. With tighter regulations looming, demonstrating responsibility and a commitment to consumer protection is vital if trading platforms are to thrive.
BoE's Committee Recommends Taking a Closer Look on Crypto Regulation
In its latest Financial Stability Report, the Financial Planning Committee (FPC), an offshoot of the Bank of England has recommended pushing for an ‘enhanced’ regulatory framework.
Human Rights Advocates Urge U.S. Lawmakers to Concern Crypto, Saving Crumbling Currencies
A group of human rights advocates have urged U.S. Congress members to be concerned about the role of importance of cryptocurrencies against unstable economies whose local currencies are collapsing.
Britain Eyes Becoming a Crypto Hub, Upgrading the Market by Adopting DLT
In pursuit of becoming a global crypto hub, Britain seeks to revamp the traditional financial market using distributed ledger technology (DLT), according to the finance ministry.
UK Finance Ministry Proposes Safety Net Measures against Stalling Stablecoins
The proposals presented by the British finance ministry are aimed to mitigate risks related to stablecoins amid the recent TerraUSD de-pegging fiasco.
Do Kwon Suggests Terra Hard Fork to Revive Troubled Network
Do Kwon, the CEO of Terraform Labs, believes hard forking the Terra blockchain will play an instrumental role in saving the troubled network.
South Korea Launches “Emergency” Inspection of Crypto Exchanges Following Terra Crash
To boost investor protection following the recent collapse of LUNA and TerraUSD (UST) tokens, financial authorities in South Korea have beefed up crypto exchange inspections.
