Crypto News Headlines (02-Dec-2022)

While bitcoin (BTC) and the broader crypto market seem to have found a footing despite the heightened credit risk faced by major industry players in the wake of FTX’s collapse, there’s still one factor that suggests the downtrend isn’t over.

Meme cryptocurrency dogecoin (DOGE) has rallied 40% in the past 10 days, outpacing the 18% gain in ether (ETH) and bitcoin’s 8% rise. Total market capitalization has increased by 10% to $808 billion, CoinDesk data show.

The discrepancy is significant because, historically, outsized gains in DOGE and other meme coins like shiba inu (SHIB) have portended a marketwide sell-off.

The African government recently said persons operating crypto-related businesses will be added to the list of accountable institutions in regard to the regulatory purview. According to a Nov. 29 Government Notice, the addition of crypto businesses to this list follows an amendment of schedules 1, 2, and 3 of the Financial Intelligence Centre Act, 2001. The changes to the Act, which come into effect on Dec. 19, were made by the South African minister of finance, Enoch Godongwana.

In the notice, Godongwana names the types of crypto-related activities and operations that will be included in the list of so-called accountable institutions. Also among the institutions or entities that are set to be included are persons “exchanging a crypto asset for a fiat currency or vice versa.”

Turmoil across the cryptocurrency market in November spilled into the NFT space, with falling crypto prices and declining NFT valuations further impacting an ever-weakening market. New data from DappRadar suggests that total NFT trading volume fell again in November, continuing a broader market trend that began in May.

According to data provided by the analytics firm, the overall NFT market produced about $643 million worth of organic trading volume in November. That’s down over 8% from October, when Decrypt tallied about $702 million worth of volume between partial data from DappRadar paired with additional marketplace data from Dune.

The markets have fared well with yesterday’s speech of Fed Chairman Jerome Powell, and Bitcoin has so far been successful in reclaiming $17K.

This has also pushed the total market capitalization toward $900 billion, adding close to $50 billion in the past couple of days.

Bitcoin’s price is trading well in the green, adding a total of 3% over the past week, where most of the gains happened in the last 48 hours.

That said, it seems to have reclaimed the important $17K level and is currently trading at around $17,100 on Binance.

The latest move is in line with the speech of the Chairman of the Federal Reserve, Jerome Powell, who said that they are likely to keep hiking rates:

We anticipate that ongoing increases will be appropriate. It seems more to me likely that the ultimate level of rates will need to be somewaht higher than thought at the time of the September meeting, and the summer of economic projections.

International Monetary Fund (IMF) is calling for increased regulation of Africa’s crypto As the U.S. Commodity Futures Trading Commission awaits legislation to establish its place in crypto oversight, Commissioner Kristin Johnson says the agency should start using its existing powers to strengthen requirements for keeping customers’ assets safe.

The CFTC should tap “existing authority to further mitigate potential risks to all customer assets,” Johnson said in a statement on Thursday, citing the cryptocurrency industry drama ignited by the detonation of the FTX exchange. She labeled her statement a “call to action” against digital-assets fraud.

“Liquidity crises and a lack of responsible governance at cryptocurrency exchanges and other prominent crypto-intermediaries have roiled the digital asset ecosystem,” Johnson said. “A series of bankruptcy filings reveals a grim portrait of some of the most egregious corporate governance and risk management failures in recent financial markets history.”

Russian businessman Vyacheslav Taran, founder of Forex Club and head of Libertex Group, has died in a helicopter crash in Southeast France. The 53-year-old billionaire was the only passenger in the aircraft piloted by a 35-year-old French national who was also killed.

Taran was traveling from the Swiss city of Lucerne to Monaco when the accident took place on Friday, Nov. 25, near the Italian border. The news of his death was confirmed by Libertex, a trading platform for various assets including cryptocurrencies, and by the Russian embassy in Paris.

On Monday, the diplomatic mission told the Tass news agency that the helicopter owned by Monacair crashed in the area of Villefranche-sur-Mer. French authorities have launched an investigation into the case but the exact cause of the accident is yet to be determined.

Terraform Labs co-founder Daniel Shin appeared in court Friday, at a hearing to decide whether he should be arrested for allegedly extracting illegal profits prior to the collapse of the Terra ecosystem.

Per the Korea Times, Shin stands accused of selling a $105 million hoard of Terra’s LUNA tokens at the cryptocurrency’s peak price; the tokens had been pre-issued without regular investors being made aware of the fact. The court will decide whether to approve Shin’s arrest either Friday or Saturday, with prosecutors arguing that Terra’s LUNA cryptocurrency constitutes a financial investment security.

U.K. Economic Secretary Andrew Griffith reiterated the country’s commitment to becoming a key center for the crypto industry, saying the collapse of FTX isn’t a reason to change course.

“We’re driving forward this agenda and I continue to chair the crypto-engagement group to hear from industry and share progress,” Griffith said at TheCityUK’s National Conference in Edinburgh on Thursday. “Yes, there are questions about the future of crypto, but we’d be foolish to ignore the potential of the underlying technology.”

His predecessor, John Glen, set out the U.K.’s crypto ambitions in April, when Rishi Sunak, now the prime minister, was Chancellor of the Exchequer under then-Prime Minister Boris Johnson. While Glen resigned in July as ministers deserted Johnson’s government, he’s back as Chief Secretary to the Treasury. Since the demise of FTX last month, lawmakers have become more skeptical, and the industry has had to field questions in parliament.

Working on their national crypto framework, the amendments to the law “On virtual assets,” the Ukrainian regulatory community actively collaborates with international experts. The list includes the international consultancy firm Ernst&Young and the USAID Financial Sector Reform project. 

On Dec. 1, the Advisory Council on the Regulation of Virtual Assets, organized by the National Securities and Stock Market Commission, held its first meeting. The regulatory experts discussed the amendments to the law “On virtual assets,” which should adjust the National Tax Code to crypto regulation. The event was attended by representatives of the President’s Office, the National Bank of Ukraine, expert organizations and the market community.

Ruslan Magomedov, the National Tax Agency of Ukraine chair, revealed that the regulators are working closely with Ernst&Young and the USAID to implement the European Markets in Crypto-Assets (MiCA) regulation in the Ukrainian digital assets market.

As one of the main growing subsectors in the crypto industry, decentralized finance (DeFi) has faced a challenging year amid market dynamics, cyberattacks and regulatory uncertainty. Its future demands more transparency and clarity in the regulatory landscape, according to a panel discussion at the International Workshop on P2P Financial Systems 2022 on Dec. 1. 

Moderated by Cointelegraph’s editor-in-chief Kristina Cornèr with CEO of APWine Gaspard Pedruzzi, co-founder of Mero Daniel Perez, CEO of Flare Hugo Philion and Niall Roche, chief technology officer-in-residence at the University College London School of Management as panelists, the discussion focused on the DeFi future among a disruptive landscape worldwide.

Perez emphasized the need for transparency for DeFi’s long-term success, as well as the role of central bank digital currencies in promoting crypto’s core values to society and restoring trust in the industry following recent events such as the collapse of cryptocurrency exchange FTX.