Crypto News Headlines (19-Aug-2022)

Cryptocurrency-related stocks are trading significantly lower in Friday’s pre-market session as bitcoin begins to lose bullish momentum.

Marathon Digital (MARA) and Riot Blockchain (RIOT) are leading the plunge in crypto stocks today, with both making double-digit percentage moves to the downside.

Coinbase (COIN), meanwhile, is trading at $77.81, a 6.91% decline from Thursday’s close of $85.44. MicroStrategy (MSTR), which is one of the largest holders of bitcoin, has seen its stock drop to $297.68, 8.23% lower than yesterday’s close.

The corrective nature of this morning’s session is reflected across the wider crypto market and equities, with the Nasdaq100 and S&P500 indices trading 0.82% and 0.68% lower respectively.

South Africa’s main banking industry regulator, the Prudential Authority, has said some banks’ decisions to terminate relationships with crypto entities “may pose a threat to financial integrity in general.” In addition, the regulator suggested that avoiding cryptocurrency entities completely could potentially weaken banks’ risk management processes.

According to a guidance note sent to financial institutions by Fundi Tshazibana, the CEO of Prudential Authority, the removal of crypto entities such as exchanges from the banking system “can potentially create opacity in the affected persons or entities’ financial conduct.” The same also eliminates the possibility of treating risks such as money laundering, terrorist financing, and proliferation financing, the eight-page guidance note added.

The remarks by Tshazibana come more than six months after reports emerged that certain South African financial institutions had sent out account termination notices to clients that offered automated cryptocurrency arbitrage services. As previously reported by News in late 2021, one of the banks, Standard Bank, insisted at the time that the termination of services to crypto entities was meant to ensure the financial institution’s compliance with regulations.

Bitcoin (BTC) continued its bearish price action for the third straight day, with the leading cryptocurrency dropping to a weekly low of $21,814 today, according to data from CoinMarketCap.

After a short recovery, Bitcoin now changes hands at around $21,785 a piece, down 6.9% on the day despite a 7.69% jump in daily trading volumes.

The market capitalization of Bitcoin has more than halved, plummeting from $1.27 trillion last November to under $417 billion today.

Ethereum, the second-largest cryptocurrency by market cap, has also slipped to around $1,728, a 6.2% decline over the past 24 hours.

Stablecoin issuer Tether has hired BDO Italia to process regular attestation reports, which it hopes to publish monthly rather than quarterly. On August 18, the world’s largest stablecoin issuer announced that it has partnered with Tether. BDO Italy is the Italian branch of the world’s sixth largest audit firm – BDO Audit Services Limited to help Tether publish attestation financial statements for USDT stablecoin reserves.

The stablecoin issuer was previously the “top 12 in the world” Cayman Islands-based audit firm, MHA Cayman , located in the Caribbean (UK) . To ensure the market is backed by real assets, stablecoin issuers provide attestation and assurance reports. Tether began releasing data in early 2021 after agreeing to provide similar information to regulators. As part of the February 2021 agreement with the New York attorney general’s office, the USDT was not properly supported.

“The decision to work with the BDO organization represents a promise to provide significant transparency for holders of Tether tokens, provides daily updates on issued tokens and reserves, and is supported by monthly assurance views,” the company said in a press release.

Ripple’s XRP token is set to be used to facilitate fast and cost-effective cross-border transactions in Brazil, after the launch of RippleNet’s On-Demand Liquidity (ODL) with forex company Travelex.

Digital payment network Ripple announced on Thursday that foreign exchange company Travelex will utilize RippleNet’s ODL to facilitate cross-border payments between enterprises by utilizing XRP. It also noted that Travelex Bank is the first bank approved by Brazil’s central bank to operate exclusively in foreign exchange. 

While other Latin American companies such as Banco Rendimento, Remessa Online, Frente Corretora and Banco Topazio have already used RippleNet services, the Central Bank of Brazil’s approval makes this the first time a Latin American bank has utilized ODL, said Ripple. 

Travelex will firstly enable these cross-border payments between Brazil and Mexico, with plans to open up more payment avenues in the region and with more use cases suited to enterprise needs.

Bitcoin (BTC) fell below $22,000 early Friday, reversing gains spurred by the softer-than-expected U.S. inflation figure released earlier this month and leading the broader crypto market down.

The biggest cryptocurrency by market cap fell over 6% to as low as $21,500, the least since July 27, CoinDesk data show. The biggest single-day percentage decline in a month marked a continuation of the five-day downtrend that began near $25,000. Ether (ETH), the native token of Ethereum’s blockchain, slid 6% to $1,730, while the likes of SOL, ADA and DOGE suffered double-digit losses, according to CoinDesk data.

In traditional markets, futures tied to Wall Street’s tech-heavy Nasdaq 100 slipped over 1% and the dollar index rose to a one-month high of 107.77, indicating risk aversion. Shares of crypto-related stocks such as miners and crypto exchange Coinbase slumped in premarket trading.

Sentiment worsened after the Federal Reserve (Fed) pushed back against expectations that inflation has peaked and the central bank would slow the pace of interest-rate increases in the U.S. as well as adopt looser monetary policies in 2023. The minutes of the Fed’s July meeting released Wednesday showed policymakers discussed the need to keep interest rates at levels that would be likely to weigh on U.S. economic growth.

Whitepay, one of the platforms operating as part of crypto exchange Whitebit’s ecosystem, has introduced cryptocurrency payments for the products offered by major Ukrainian tech stores, the crypto news outlet Forklog unveiled.

Among the electronics retailers, whose customers will now take advantage of the new service, are Tehnoezh (Техно Їжак in Ukrainian) and Stylus, which manage leading online platforms in the sector, the report details.

The integration allows buyers to use more than 130 different digital currencies for their purchases. The plan is to expand the list of supported digital coins in the future.

Ukrainian crypto holders will be able to pay with digital assets through the appropriate forms at the online stores, or at physical locations through special point of sale (POS) terminals installed by Whitepay. The payment processor will maintain the system and provide customer support.

Stepn has teamed up with Spanish soccer team Atlético de Madrid and all-in-one crypto exchange Whalefin to release a new collection of 1,001 soccer boot NFTs in Stepn’s “move-to-earn” running app. 

Since its release at the beginning of the year, Stepn has encouraged crypto fans and “non-crypto natives” alike to lace up their running shoes and hit the asphalt to earn rewards for movement in the form of Green Satoshi Tokens (GST). 

The Stepn app requires the purchase of a sneaker NFT on Solana before people can begin earning rewards. New users should expect to pay at least a couple of SOL to get started.

A United States Tribal Nation Economic Zone has drafted new regulation for DAOs. The draft proposes recognizing DAOs as unincorporated non-profit associations or limited liability companies.

A United States Tribal Nation Economic Zone has proposed new rules on Decentralized Autonomous Organizations (DAOs). The Catawba Digital Economic Zone (CDEZ) released a draft to the public on DAO regulation, welcoming commentary and feedback on the draft. The commentary is open until Sept. 10.

The draft focuses on such matters as the legality of DAOs and the economic potential of DAOs and wants to use the regulation to attract businesses to the region. Among other companies, it is looking at those working in the web3 space.

Specifically, it wants to recognize DAOs as unincorporated non-profit associations or limited liability companies. The CDEZ already set out regulations that defined digital assets in July.

  1. Crypto market bloodbath leads to over $500M in liquidations in 24 hours

The crypto market registered a major slump on Friday, resulting in major cryptocurrencies losing key support and falling to new monthly lows after a prolonged bullish surge over the past month.

Bitcoin (BTC), which was looking to break through $25,000 resistance last week, fell below $22,000 to register a new two-week low of $21,747. Ether (ETH), the second largest cryptocurrency, has surged past $2,000 in the run to the Merge but slumped by 6% over the past 24 hours to register a new weekly low of $1,726.

The flash crash after weeks of bullish momentum also saw 157,098 traders getting liquidated in the past 24 hours resulting in liquidation of over $551 million. Data from Coinglass indicate Bitcoin traders lost over $203 million in liquidations, followed by Ethereum traders at $140 million.