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The Biden Administration Is Easing Cryptocurrency Restrictions (A Vibes Analysis)

FinCrypt Staff

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The Biden Administration Is Easing Cryptocurrency Restrictions (A Vibes Analysis)

The Biden administration’s stance on cryptocurrencies appears to have softened. I feel comfortable saying this, despite the years-long “whole of government” assault on the industry, because of some key breakthroughs in recent weeks.

Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates. This is an excerpt from The Node newsletter, a daily roundup of the most crucial crypto news on CoinDesk and beyond. You can sign up to get the full service newsletter here.

First, and perhaps most significantly, Monday’s news that the U.S. Securities and Exchange Commission (SEC) may be preparing to approve the commercial exchange traded funds (ETFs). This would represent a major turnaround for an asset class that was presumed dead upon arrival, especially considering that the securities watchdog recently probed major Ethereum-related institutions.

Although much of this is just speculation, based in part on hearsay (i.e. “sources with direct knowledge of the situation”), it is significant that the SEC required potential ETH ETF exchanges to change their documentation quickly. It would be a strange move if the agency intended to reject these requests entirely.

Just yesterday, Bloomberg Intelligence estimated the probability of SEC approval of ETH spot ETFs at 25%. Today, there is a 75% chance that these products – which would likely attract institutional capital into the second-largest crypto asset by market cap, in the same way Bitcoin has benefited from its own ETF cluster – will launch this year. (The SEC is expected to make a decision on VanEck’s spot ether ETF on May 23.)

Second, a bipartisan bill called the Deploying American Blockchains Act of 2023 passed last week. a margin between 334 and 79 by the representatives of the House. While modest in scope, the bill would allow the Secretary of Commerce, currently Gina Raimondo, “to take necessary and appropriate actions to promote the competitiveness of the United States” in the blockchain industry.

This comes ahead of the Senate vote on the Financial Innovation and Technology for the 21st Century Act (FIT21), considered the most significant piece of cryptocurrency legislation with the greatest likelihood of actually becoming law. As my colleague Nikhilesh De astutely points out:

“House Democratic leaders on the Financial Services and Agriculture Committees have told their members that, while they oppose the FIT21 bill, they will not actively rail against it – in other words, they have essentially told their members to vote as they see fit.”

This is similar to recent House and Senate votes to repeal the SEC’s controversial Staff Accounting Bulletin 121, which imposed strict capital requirements on cryptocurrency custodians and all but precluded the possibility of banks entering this space (strongly opposed by both the cryptocurrencies than from that of cryptocurrencies). TradFi Community).

The theory is that when President Joseph Biden promised to veto the measure to repeal SAB121, he cleared the way for members of congress, including prominent Democrats like Senate Majority Leader Chuck Schumer (D-NY) and the Finance Committee Chairman Ron Wyden (D-OR). – vote according to conscience.

It remains to be seen whether Biden will veto the measure, despite the fact that the independent Government Accountability Office (GAO) said the SEC inappropriately enforced the guidelines. However, the important thing here is that sound, bipartisan regulation of cryptocurrencies is possible, despite opposition from figures like arch-cytoskeptic Senator Elizabeth Warren (D-MA).

By the way, Warren may lose influence in the Biden administration. Yesterday, the president of the Federal Deposit Insurance Corp Martin Gruenberg announced he would resign after Senate Banking Committee Chairman Sherod Brown called for his resignation.

While the move does not directly affect cryptocurrencies, it is worth mentioning that Gruenberg is a known confidant of Senator Warren and their view on cryptocurrencies is largely different. Under Gruenberg’s leadership, for example, the FDIC took a hard line against cryptocurrencies during the 2023 financial crisis that brought down three mid-sized banks.

Although he extensively cited poor risk management and incompetent leadership, the The FDIC also said so Signature Bank’s “association and dependence on cryptocurrency industry deposits” was a major cause of its failure in its report. That same year, the agency officially added cryptocurrencies to its annual report on the risks faced by US banks and began engaging in “robust oversight discussions” with the companies under his charge.

Furthermore, Castle Island Ventures co-founder Nic Carter considers Gruenberg one of the major “architects” of what he called Operation Choke Point 2.0, or a series of maneuvers by the US government to systematically cripple the cryptocurrency industry (the name is a nod to the Obama-era effort to bust unsavory industries). Indeed, following the collapse of FTX, the White House issued its first information sheet related to cryptocurrencies, essentially calling for a crackdown.

To be sure, there are some important caveats to consider here. First, Gruenberg resigned under political pressure following Wall Street Journal report on widespread evidence of sexual harassment at the FDIC. The 70-year-old himself has not been accused of harassment, yet he has allowed a toxic workplace culture to fester – which is why Senator Brown called for his ouster (which Senator Warren called “politically motivated”).

All of this is to say that cryptocurrencies are not a motivating factor here, although some political commentators see Gruenberg’s situation as a sign of the Warren camp’s waning influence. For example, John Deaton, who is challenging Senator Warren for his senatorial seat this November, said it was “shameful” how Warren “circled the wagons to keep one of his fallen puppets in place.” misfortune.”

It is also important to note that Congress is not the White House, and the White House is not the SEC. In other words, there is no real reason to assume that the Biden administration is suddenly telling Gary Gensler or lawmakers to go easy on cryptocurrencies. These are all discrete events, but they are all positive developments for cryptocurrencies.

As for the possibility of ETH ETF approval, the current thinking is that the SEC resisted it because it was not having productive meetings with potential issuers. And “the fact that their meetings have become productive more recently does not necessarily mean there has been a policy reversal,” as CoinDesk politics expert Jesse Hamilton put it.

But what if there really was a driving force behind all these developments? What explains the widespread sea change? And why would a Democrat-controlled government suddenly become pro-crypto now?

“The backdrop to all of this is an election in which the standard-bearer of the Republican Party, former President Donald Trump, explicitly appealed to crypto voters as part of his strategy,” De said.

Indeed, the former president has apparently sensed that the crypto contingent is some sort of wealthy political force and has curryed favor with it. There are some cynics who argue that the billionaire real estate developer is primarily motivated by his stock markets (Trump has issued several series NFTs and holds a fair amount of ETH and other tokens), but that seems like an unnecessarily narrow view.

The alignment makes perfect sense: Cryptocurrencies get people’s attention. And Trump likes to get attention. Cryptocurrencies also make a certain type of people angry, and these happen to be the same people Trump likes to make angry. Cryptocurrency supporters also like powerful people who are willing to speak positively about cryptocurrencies. And Trump likes praise for him.

And while both parties could conceivably claim cryptocurrency’s “apolitical” narrative for their own, there’s something to the idea that the industry’s somewhat contradictory situation is rooted in Occupy Wall Street-era populism while simultaneously more frequently associated with the “hilariously rich” is undeniably Trumpian. To some extent, I’m surprised it took Trump this long to convince himself.

Which brings us to the main point: why now? It is clear that Trump has come out in support of cryptocurrencies because it is a wedge issue that he can use against his rival, President Biden. While the general public is likely not informed of the concrete politics of cryptocurrency regulation, a surprising number of registered voters hold cryptocurrencies and have positive sentiment towards them. In particular, nearly 25% of self-identified independent voters (i.e. the “swing voter” key) have purchased cryptocurrencies. And that number will only increase over time, especially after the launch of crypto ETFs.

On the other side of the equation, as Trump has cast himself as an opposition figure to the Biden administration’s slow simmering war on cryptocurrencies (which has literally won over at least a handful of voters who despise his other policies), the most simple to To solve the problem, Biden needs to do a 180 on cryptocurrencies himself or just make it less of a problem.

This is compounded by the fact that, while most Americans still don’t interact with or care much about cryptocurrencies, there have been a series of missteps by regulators that have garnered something almost akin to sympathy for the industry. The most serious problem is the SEC’s handling of the approval of bitcoin ETFs, which has been called “arbitrary and capricious” by an appeals court.

But there is a growing sense that this same dismissive and biased view underlies all of the Biden administration’s crypto efforts. Americans want cryptocurrencies to be safe and well regulated, they want consumer protection; they don’t want arcane debates about whether an asset is a security.

Furthermore, it is conceivable that a strong reaction to the industry’s catastrophic failures in 2022 was politically advantageous, but now that prices are rising again, a heavy-handed approach seems both a waste of government resources and potentially excessive. This is not to mention the fact that provoking the cryptocurrency industry always elicits a negative reaction from industry insiders.

Again, all of this is mere speculation: There is no direct evidence that Biden is reversing course. It is significant that a major piece of cryptocurrency legislation has reached this point, that the approval of ETH ETFs is back in play, and that Trump has won over “single-issue” cryptocurrency voters. Think of it as a vibrational analysis, a theory that can never be proven but may strengthen if more positive advances like this occur.

Ultimately, politics, like cryptocurrencies, is all about vibes.

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We are the editorial team of FinCrypt, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on FinCrypt, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Block Investors Need More to Assess Crypto Unit’s Earnings Potential, Analysts Say — TradingView News

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DeFi Lending Protocol Nexo Allocates $12 Million for Ecosystem Incentives — TradingView News

Block, a payments technology company led by Jack Dorsey square could become a formidable player in the cryptocurrency mining industry, but Wall Street will need details on profit margins to gauge the positive impact of the business on earnings, analysts said.

Block signed its first large-scale cryptocurrency mining hardware pact on Wednesday, agreeing to supply its chips to bitcoin miner Core Scientific CORZbut no financial details were disclosed.

JP Morgan estimates the deal could net Block between $225 million and $300 million, but said more information will be needed to assess the hardware business’s long-term earnings potential.

“We still have a lot to learn in terms of the margins of this business, so we are hesitant to underwrite this transaction until we know more about the cadence and economics,” J.P. Morgan said.

The deal marks a major step for the payments company, which started out as “Square” in 2009 before rebranding in 2021 in a nod to its focus on crypto and blockchain technologies.

Dorsey, who co-founded and ran Twitter (now known as “X”), has long been bullish on Bitcoin. Block began investing 10% of its monthly gross profit from Bitcoin products into Bitcoin in April.

In the first quarter, nearly 9% of the company’s cash, cash equivalents, and marketable securities consisted of bitcoin.

“This development (the deal with Core Scientific) is further evidence of Block’s role as an emerging leader in the crypto hardware ecosystem,” Macquarie analysts Paul Golding and Emma Liang wrote in a note.

Analysts say similar deals to follow could further validate Block’s reputation in the industry.

But J.P. Morgan said the stock’s performance will be determined by Block’s other segments, such as Square and Cash App.

Block shares have lost nearly 17% this year.

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This Thursday’s US Consumer Price Index could be a game-changer for cryptocurrencies!

FinCrypt Staff

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This Thursday's US Consumer Price Index could be a game-changer for cryptocurrencies!

3:30 PM ▪ 4 minute read ▪ by Luc Jose A.

This Thursday, attention will be focused on the United States with the anticipated release of the Consumer Price Index (CPI). This economic indicator could trigger significant movements in the markets, especially for the U.S. dollar and cryptocurrencies. While investors remain vigilant, speculation is rife about the potential impact of these key figures.

The Consumer Price Index: The Cornerstone of the American Economy

The Consumer Price Index (CPI) is a key measure of inflation which reflects changes in the price of goods and services purchased by American households. This index is calculated monthly by the Bureau of Labor Statistics (BLS) and serves as a barometer for the cost of living. The consumer price index covers a wide range of products, including food, clothing, housing, health care, and entertainment. Economists and policy makers closely monitor this data to anticipate economic trends and adjust monetary policies accordingly.

The June CPI data is due to be released this Thursday at 2:30 p.m., and is highly anticipated by investors. The current consensus is for headline annual inflation to decline to 3.1%, from 3.3% the previous month, while core inflation is expected to remain stable at 3.4%.

Consumer Price Index Release: What Does It Mean for the Dollar and Bitcoin?

Inflation as measured by the consumer price index is a key determinant of the value of the US dollar. If the consumer price index declines more than expected, it could reinforce expectations of a rate cut by the Federal Reserve in September, thus weakening the dollar. A weaker dollar could benefit GBP/USD, which recently broke a major resistance level, and Bitcoin, which could see its price rise due to increased demand from institutional investors.

Current forecasts suggest that headline inflation will decline to 3.1%, with core inflation holding steady at 3.4%. However, a surprise increase in the consumer price index could upset these expectations. Fed Governor Lisa Cook has mentioned the possibility of a soft landing for the economy, with inflation falling without a significant increase in unemployment, which could lead the Fed to consider rate cuts. This outlook is particularly favorable for stock markets and cryptocurrencies, including Bitcoin, which could benefit from a more accommodative monetary policy.

According to experts at 10x Research, especially their CEO Markus Thielen, Bitcoin could see a significant increase if the CPI data confirms a decline in inflation. Thielen indicated that Bitcoin could reach almost $60,000, a prediction that has already been reflected with a rise to $59,350 before the data was released.

Therefore, Thursday’s CPI data could determine the future direction of financial and cryptocurrency markets. High inflation could strengthen the US Dollarwhile a drop in inflation could pave the way for rate cuts by the Fed, thus giving a boost to Bitcoin and other digital assets.

Enhance your Cointribune experience with our Read to Earn program! Earn points for every article you read and access exclusive rewards. Sign up now and start earning rewards.

Click here to join “Read to Earn” and turn your passion for cryptocurrencies into rewards!

Avatar of Luc Jose A.Avatar of Luc Jose A.

Luke Jose A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I am committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, convey the latest technological innovations and put into perspective the economic and social issues of this ongoing revolution.

DISCLAIMER

The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.



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Crowd Expects Bitcoin Bounce Suggests Further Losses, As RCO Finance Resists Crash

FinCrypt Staff

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Crowd Expects Bitcoin Bounce Suggests Further Losses, As RCO Finance Resists Crash

Bitcoin is seeing a rebound after its recent price crash to $53,000. Other altcoins are subsequently recovering, with many cryptocurrency investors increasingly making new entries. However, Santiment warned against this hopium, suggesting that Bitcoin could extend its price losses.

As the broader market anticipates Bitcoin’s next price action, RCO Finance (RCOF) demonstrates resilience, attracting thousands of people in influxes. Read on for more details!

RCO Finance challenges the market crisis

RCO Finance (RCOF) is approaching $1 million in funding raised, amid growing interest from institutional traders seeking stability from Bitcoin’s wild price swings. While much of the broader market has seen significant price losses, RCO Finance has remained resilient, experiencing a surge in its pre-sale orders.

As a result, the project seems oblivious to the current market conditions, leading top market experts to take a deep dive into its ecosystem. They identified why RCO Finance was able to withstand the bearish pressure and its potential to hold up even stronger during the impending broader market crash.

The main reason was related to the innovative use of RCO Finance AI Trading Tools as a Robo Advisor. This tool has been integrated into RCO Finance’s cryptocurrency trading platform, offering full automation and highly accurate market forecasts to help investors make informed decisions.

Read on to learn more about this tool and other exciting features of RCO Finance!

Bitcoin Bounces Amid Impending Crash

Bitcoin is bouncing back, rallying 8% after plunging to its lowest point since February on July 5. While this rebound has triggered a bullish wave in the broader market, many cryptocurrency analysts predict it could be short-lived as Bitcoin is poised for an imminent crash toward the $50,000 zone.

On a Post X (formerly Twitter)Santiment revealed that while the crowd is anticipating a Bitcoin rally, this potential crash could trigger FUD and panic, causing average traders to wither and give up on Bitcoin. The platform noted that Bitcoin rally has historically occurred after these weak hands sold their holdings.

In particular, these cryptocurrency analysts speculate that the previous and upcoming Bitcoin crash is largely the result of bearish market psychology, as opposed to large BTC sell-offs by the German government and Mt. Gox. In particular, Ki Young Ju, founder and CEO of CryptoQuant, noticed that “the sales were rather negligible, given the overall liquidity of Bitcoin.”

Enjoy seamless investing on RCO Finance

RCO Finance is making investing easier and easier, democratizing access to high-level tools and cryptocurrency earnings that were once reserved for professional and institutional investors. It has also prioritized accessibility, allowing investors of all levels to easily navigate its features through its intuitive interface.

Additionally, they can also maintain anonymity and privacy as the platform has no KYC requirements. To build trust, the platform has instead emphasized regular smart contract audits by respected security firm SolidProof.

Performance data shows massive adoption, indicating that it is doing its job effectively. Investors can also capitalize on RCO Finance’s fast transaction speeds and incredibly low transaction fees, with leverage options up to 1000x to further optimize their portfolios and maximize returns.

Leverage RCO Finance’s pre-sale earnings

An in-depth analysis of the RCO Finance ecosystem revealed that it has strong potential to rival and surpass major cryptocurrencies in the cryptocurrency industry. With a very limited total token supply and excellent tokenomics, RCO Finance is poised to reach its target of $1 billion in market cap upon its official launch.

RCO Finance has adopted a deflationary model, strategic burn mechanisms, and a vesting schedule. However, the project encourages long-term holding by focusing on sustained growth through incredibly high staking rewards.

RCOF tokens are currently available at an altcoin price of $0.01275 in progress Pre-sale Phase 1. This is likely the lowest price these coins will ever trade at, as they are expected to increase exponentially with each new presale phase.

With RCOF expected to be $0.4 at launch, investors jumping in now can expect a Return 30x on their investment!

For more information on RCO Finance (RCOF) presale:

Visit RCO Finance Pre-sale

Join the RCO Financial Community

Disclaimer: The statements, views and opinions expressed in this article are solely those of the content provider and do not necessarily represent those of Crypto Reporter. Crypto Reporter is not responsible for the reliability, quality and accuracy of any material in this article. This article is provided for educational purposes only. Crypto Reporter is not responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Do your own research and invest at your own risk.



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Bitget Ranks Third Among Cryptocurrency Exchanges by Capital Inflows in Q2

FinCrypt Staff

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bitget

Although Bitget is not the largest cryptocurrency exchange in terms of total volumes, it closed a favorable quarter. From April to June, the platform ranked third in net capital inflows and showed the strongest growth in market share compared to its competitors.

In the second quarter, investors moved $700 million into Bitget, and activity on the platform increased by nearly 50%.

The exchange has seen a surge in user funds, with Bitcoin (BTC), Tether (USDT), and Ethereum (ETH) rising 73%, 80%, and 153%, respectively, in the first six months of the year. This growth coincided with adding 2.9 million new users to the platform.

This has positioned Bitget among the top exchanges with the highest positive net inflows in the last quarter. Only Binance, which remains the market leader, and Bitfinex have performed better in this category.

According to CCData’s latest H2 Outlook Report, the exchange also recorded the highest market share growth among centralized exchanges, increasing 38.4% from H2 2023 to H1 2024.

Bitget’s spot trading volume has also seen a visible increase, going from $28 billion in Q1 to $32 billion in Q2, marking an increase of over 10%. The platform’s monthly visitors have reached 10 million. Although its volumes are increasing, Bitget still does not rank among the top 10 cryptocurrency exchanges in terms of spot trading.

The changes taking place in the centralized cryptocurrency exchange market show that competition is becoming more and more intenseAn example of this is the recent surge in popularity of Bybit, which has become the second largest exchange in terms of spot trading volumes.

Sports Sponsorships and New Products

Gracy Chen, Source: LinkedIn

Gracy Chen, CEO of Bitget, commented on the quarterly performance, saying, “Q2 2024 was a pivotal period for Bitget. Our collaboration with Turkish athletes, along with significant growth in users and website traffic, is part of our global expansion.”

In an effort to expand its global presence, Bitget has partnered with three Turkish national athletes as part of its #MakeItCount campaign, starring Lionel Messi. The deal with the famous footballer It was signed in Februaryto build brand presence in Latin America.

The exchange also launched a $20 million TON Ecosystem Fund in partnership with Foresight Ventures to support early-stage projects on The Open Network.

The exchange introduced two new initial token listing products, PoolX and Pre-market, which collectively launched over 100 projects. Additionally, Bitget’s native token, BGB, was recognized as the best-performing centralized exchange token in June and was ranked among the top 10 cryptocurrencies by Forbes.

In its latest move, the cryptocurrency exchange aimed to become a regulated player in IndiaThe announcement comes as the world’s most populous democracy grapples with the complexities of integrating cryptocurrencies into its financial ecosystem.

Even recently,
Bitget Wallet Announced a joint investment with cryptocurrency investment firm Foresight X in Tomarket, a decentralized trading platform. This initiative targets emerging asset classes and aims to expand the portfolio’s services beyond traditional decentralized exchanges (DEXs).

Although Bitget is not the largest cryptocurrency exchange in terms of total volumes, it closed a favorable quarter. From April to June, the platform ranked third in net capital inflows and showed the strongest growth in market share compared to its competitors.

In the second quarter, investors moved $700 million into Bitget, and activity on the platform increased by nearly 50%.

The exchange has seen a surge in user funds, with Bitcoin (BTC), Tether (USDT), and Ethereum (ETH) rising 73%, 80%, and 153%, respectively, in the first six months of the year. This growth coincided with adding 2.9 million new users to the platform.

This has positioned Bitget among the top exchanges with the highest positive net inflows in the last quarter. Only Binance, which remains the market leader, and Bitfinex have performed better in this category.

According to CCData’s latest H2 Outlook Report, the exchange also recorded the highest market share growth among centralized exchanges, increasing 38.4% from H2 2023 to H1 2024.

Bitget’s spot trading volume has also seen a visible increase, going from $28 billion in Q1 to $32 billion in Q2, marking an increase of over 10%. The platform’s monthly visitors have reached 10 million. Although its volumes are increasing, Bitget still does not rank among the top 10 cryptocurrency exchanges in terms of spot trading.

The changes taking place in the centralized cryptocurrency exchange market show that competition is becoming increasingly intenseAn example of this is the recent surge in popularity of Bybit, which has become the second largest exchange in terms of spot trading volumes.

Sports Sponsorships and New Products

Gracy Chen, Source: LinkedIn

Gracy Chen, CEO of Bitget, commented on the quarterly performance, saying, “Q2 2024 was a pivotal period for Bitget. Our collaboration with Turkish athletes, along with significant growth in users and website traffic, is part of our global expansion.”

In an effort to expand its global presence, Bitget has partnered with three Turkish national athletes as part of its #MakeItCount campaign, starring Lionel Messi. The deal with the famous footballer It was signed in Februaryto build brand presence in Latin America.

The exchange also launched a $20 million TON Ecosystem Fund in partnership with Foresight Ventures to support early-stage projects on The Open Network.

The exchange introduced two new initial token listing products, PoolX and Pre-market, which collectively launched over 100 projects. Additionally, Bitget’s native token, BGB, was recognized as the best-performing centralized exchange token in June and was ranked among the top 10 cryptocurrencies by Forbes.

In its latest move, the cryptocurrency exchange aimed to become a regulated player in IndiaThe announcement comes as the world’s most populous democracy grapples with the complexities of integrating cryptocurrencies into its financial ecosystem.

Even recently,
Bitget Wallet Announced a joint investment with cryptocurrency investment firm Foresight X in Tomarket, a decentralized trading platform. This initiative targets emerging asset classes and aims to expand the portfolio’s services beyond traditional decentralized exchanges (DEXs).

Source

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