News
The biggest cryptocurrency news from the past week
11:00 ▪ 7 minute read ▪ by Luc Jose A.
Between groundbreaking announcements, technological advancements, and regulatory turbulence, the crypto ecosystem continues to prove itself to be both a territory of limitless innovation and a field of regulatory and economic battles. Here is a roundup of the most surprising news from last week regarding Bitcoin, Ethereum, Binance, Solana, etc.
MicroStrategy perseveres despite everything!
MicroStrategy has continued to increase its Bitcoin holdings, reaching an impressive total of 214,400 BTC with a recent acquisition of 122 Bitcoin for $7.8 million. Despite a net loss of $53 million in the first quarter of 2024 and a 5.5% revenue decline from the prior year, the company maintains its strategy of massive investments in cryptocurrencies. These market movements occurred against a backdrop of increased volatility, impacting the value of the company’s digital assets.
This bold strategy, while risky given the volatility of the cryptocurrency market, is a bet on Bitcoin’s long-term viability. However, this approach led to significant financial losses and prevented MicroStrategy from joining the S&P 500 index, a blow to the company’s attractiveness to investors. The future of this strategy remains uncertain, but it demonstrates a firm commitment to the potential of Bitcoin.
Light sentence for Changpeng Zhao despite serious charges
Changpeng Zhao, the founder of Binance, was sentenced to just four months in prison and a $50 million fine for fraud and non-compliance charges. This sentence is significantly more lenient than the three years requested by prosecutors and is perceived, by some, as a sign of leniency that downplays the seriousness of the infringements and therefore constitutes a worrying precedent for the sector.
Furthermore, this case highlights the challenges facing regulators in an ever-changing industry and highlights the need for a balance between promoting innovation and protecting investors. Zhao’s case also illustrates the tension between stringent regulation and the possibility of pushing key players into more lax jurisdictions.
Treasury Targets Cryptocurrency Fraudsters in France
In France, the gap between the actual use of cryptocurrencies and tax reporting is alarming. According to data from the European Central Bank, around 5 million French people use cryptocurrencies, but only 150,000 tax declarations have been registered. This discovery prompted the Treasury to take drastic measures to combat tax fraud, partly inspired by the massive fraud already observed in other programs such as MaPrimeRénov, where 400 million euros were stolen.
To combat this scourge, the Treasury has decided to use artificial intelligence for more effective and targeted surveillance. A new anti-fraud legislative framework is in preparation, including a specific component for cryptocurrencies. Artificial intelligence will be used to analyze blockchains and detect suspicious activity in real time, modeling fraud patterns to better track and unravel the most complex money laundering schemes. This technological approach promises constant vigilance and greater ability to respond to fraudulent schemes.
BNP Paribas invests in Bitcoin
May 1, 2024 is marked by a contradictory event in the world of Bitcoin ETFs, with record outflows of $563.7 million in a single day. Despite this tumultuous context, BNP Paribas, Europe’s second-largest bank, has taken a significant step towards Bitcoin adoption by investing around $40,000 in BlackRock’s IBIT ETF. Although modest, this investment is symbolic of the growing acceptance of Bitcoin by traditional European financial institutions.
This move by BNP Paribas could mark the beginning of broader institutional acceptance of Bitcoin as a viable asset class. Until now, this has been mostly adopted by American asset managers and regional banks. BNP’s commitment could encourage other large banks and asset managers to invest in Bitcoin, thus accelerating its acceptance by the general public and increasing inflows into ETFs and other regulated vehicles.
RippleX revolutionizes XRP with a new feature
RippleX recently launched an innovative feature, the XLS-68d specification, which aims to simplify and democratize transactions on the XRP Ledger (XRPL). This new specification allows platforms to manage fees and account reserves for their users, significantly reducing the complexity and financial barriers associated with using XRP. Users will benefit from so-called “sponsored transactions”, where they can include sponsors’ signatures in their transactions while maintaining full control of their accounts.
This advancement is seen as an important step towards mass adoption of XRP, as it allows platforms to cover transaction costs for their users, making XRP accessible to a wider audience.
SEC Controversy: Allegations of Lying About Ethereum
Gary Gensler, chairman of the SEC, is accused of misleading the US Congress regarding the classification of Ethereum as an unregistered security. These revelations, stemming from internal SEC documents exposed during a lawsuit with the firm Consensys, show that the agency has considered ETH a security for over a year. These actions contradict public statements by Gensler, who refused to clarify the SEC’s position on Ethereum during a hearing, avoiding direct questions on the topic.
Patrick McHenry, chairman of the House Financial Services Committee, has openly criticized Gensler for what he sees as deception of Congress. This situation highlights the challenges and contradictions in the SEC’s regulation of cryptocurrencies. The outcome of these regulatory debates could have significant implications for the legal status of Ethereum and other cryptocurrencies in the United States.
PayPal expands its crypto offerings with MoonPay
PayPal has significantly expanded its cryptocurrency offerings through a strategic partnership with MoonPay. This collaboration allows PayPal to offer more than 100 different digital assets to its users, thus simplifying the purchase of cryptocurrencies just like a normal online purchase. Likewise, this partnership improves the compatibility of crypto transactions with traditional banking systems and reduces transaction errors, providing a smooth and secure user experience.
In conclusion, this integration ensures better protection of customers’ personal data, who no longer need to provide their information separately to MoonPay for transactions. With the addition of popular cryptocurrencies such as Solana, Tether and Dogecoin, PayPal expands the possibilities for its users in terms of investing and everyday use of cryptocurrencies.
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Luc Jose A.
Graduated in Science Po Tolosa and holder of a blockchain certification consultant issued by Alyra, I returned to participate in Cointribune in 2019. Capturing the potential of blockchain to transform numerous sectors of the economy, I have made a commitment to raise awareness and inform the great public about this constantly evolving ecosystem. My goal is to allow anyone to better understand blockchain and learn about the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to convey the latest technological innovations and to put into perspective the economic and social efforts of this revolution in brands.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.