Crypto News Headlines (31-May-2023)

Blockchain technology non-profit the Anoma Foundation has raised $25 million in its third funding round. The raise was led by crypto-focused venture capital firm CMCC Global. The new capital will go toward further development of the Anoma architecture, research and development, ecosystem development and strategic partnerships, according to a press release provided to CoinDesk.

The Anoma Foundation is the Swiss non-profit that oversees Anoma, a full-stack architecture that helps developers build decentralized applications, and Namada, a layer 1 blockchain that allows for private transactions in which each party in the transaction can individually choose which asset they want to send or receive. Potential use cases for the Anoma architecture include decentralized exchanges (DEXs) and decentralized finance (DeFi) applications.

XRP, formerly known as ripple, was one of the biggest movers in cryptocurrency markets on Tuesday, as it rose above $0.50.

XRP/USD raced to a peak of $0.5049 earlier in today’s session, after starting the week trading at a low of $0.4779.

As a result of this surge, the token moved to its strongest point since April 19, when it hit a high of $0.5390.

Biggest Movers: XRP Hits 6-Week High, SOL Collides With Key Resistance Level

XRP/USD – Daily Chart

Today’s rally has also led to the 14-day relative strength index (RSI) hitting its highest reading since March 31.

At the time of writing, the index is tracking at 67.55, which is marginally below a ceiling of 68.00.

In the event this upcoming ceiling is broken, there is a reasonable chance that XRP moves closer to March’s high.

Crypto exchange Bybit has announced its decision to “pause” its Canadian operations, citing recent regulatory changes.

The platform is the latest in a string of crypto firms to pull out of the country, following similar moves from Binance earlier this month and OKX in March.

Canada has cracked down on the crypto sector in recent months, introducing a pre-registration process and banning leveraged trading.

“It has always been Bybit’s primary objective to operate our business in compliance with all relevant rules and regulations in Canada,” Bybit said in a statement. “In light of recent regulatory development, Bybit has made the difficult but necessary decision to pause the availability of our products and services.”

Bitcoin (BTC) ran into selling pressure early Wednesday after a top Federal Reserve (Fed) official said there is no compelling case to halt the liquidity tightening. The Fed’s unrelenting tightening has roiled risk assets, including cryptocurrencies.

“I don’t really see a compelling reason to pause,” Federal Reserve Bank of Cleveland President Loretta Mester told FT in an interview published on Wednesday. “I would see more of a compelling case for bringing the rates up and then holding for a while until you get less uncertain about where the economy is going,” Mester added.

Bitcoin, a pure play on the dollar liquidity, fell by nearly 2% to $27,021 after Mester’s comments were published, CoinDesk data shows.

Hong Kong and the United Arab Emirates’ (UAE) central banks are looking to collaborate on cryptocurrency regulations and financial technology development.

On May 30, the Hong Kong Monetary Authority (HKMA) said it met with its counterparts at the Central Bank of the United Arab Emirates (CBUAE), with the two agreeing to “strengthen cooperation” on “virtual asset regulations and developments.”

The two central banks also pledged to facilitate discussions on “joint fintech development initiatives and knowledge-sharing efforts” with each region’s respective innovation hubs.

Financial infrastructure and financial market connectivity between the two jurisdictions were also noted as key points discussed.

Venture capital company Tribe Capital, which has previously backed cryptocurrency firms Kraken and Bitfinex, has introduced a new crypto fund and is targeting a $100 million raise for the fund, sources familiar with the matter told CoinDesk.

San Francisco-based Tribe, which has $1.6 billion in assets under management, plans to make early-stage investments of $500,000-$3 million in layer 1 and 2 ecosystems, decentralized finance (DeFi) projects and infrastructure plays to bring real-world assets on chain, the sources said.

Specifically, Tribe wants to help drive the development of protocols which can provide security, scalability, liquidity and cross-chain compatibility so that the crypto ecosystem garners greater trust, thus fuelling further adoption.

Australians traded bitcoin (BTC) and other cryptocurrencies at discount on Binance Australia compared to other exchanges operating in the country on Tuesday. The price difference has been attributed to a popular domestic payment provider’s decision to quit processing withdrawals in Australian dollars (AUD) for its users.

Starting from June 1, customers of Binance’s Australian platform will not be able to withdraw amounts in the national fiat to their bank accounts through the Payid service. The exchange’s announcement came after earlier this month it informed traders that they will not be able to deposit or withdraw AUD through another Australian payment gateway, Cuscal.

As a result, BTC was selling below 35,000 AUD (less than $23,000) after noon, Singapore time, on May 30, Bloomberg reported, citing data from Cryptocompare. That’s approximately 7,500 AUD lower than the average registered on other exchanges such as Independent Reserve and Coinjar.

Images of well-known celebrities are being used as the faces of crypto scams—despite social networks vowing to clamp down on fraudsters.

British bank NatWest has released a league table that shows which A-listers had their likeness used to steal the most money from naive and unsuspecting customers.

A picture of Jeff Bezos was involved in the highest-value crypto scam, with £158,873 ($196,344) lost in a single incident.

The billionaire’s image was used to promote a Google advert for an investment opportunity—purportedly on a new Amazon trading platform for cryptocurrencies.

And a photo of Elon Musk—whose face is often used by scammers on YouTube livestreams plugging “send one Bitcoin, get two back” scams—was used to steal £42,500 ($52,545). The victim had mistakenly believed that Tesla’s CEO had endorsed a crypto scheme.

The United States Securities and Exchange Commission (SEC) is pursuing crypto influencers who have promoted scam projects and are found to be manipulating the prices of certain tokens via social media. Former SEC chief John Reed Stark took to Twitter to warn crypto influencers to be ready to face prosecution.

In his tweet, Stark called out social media crypto influencers who shilled numerous sketchy crypto projects and often helped them manipulate market prices during the bull run. He warned that for any form of price manipulation — be it the price of exchange-listed securities, penny stock securities or crypto securities — the same anti-fraud rules apply, and the days of social media crypto influencers are numbered.

The former SEC chief drew attention to the brazen and arrogant way in which so many social media influencers grift their victims. Most shilling and price manipulation occurs via social media platforms like Twitter, Discord, Instagram or Reddit. Stark noted that the nature of securities fraud makes it easier to detect and prosecute, unlike other forms of fraud where the perpetrator often tries to hide behind their identity.

“Adversary nations” like China could ultimately benefit from restrictive crypto policies in the United States, warns Coinbase CEO Brian Armstrong.

In a May 30 op-ed for MarketWatch, Armstrong again warned that while recent turbulence in crypto markets might tempt U.S. policymakers “to write it off as an unstable asset class,” doing so could see the U.S. cede its status as a financial leader and innovation hub.

Armstrong urged policymakers to see that crypto is “about much more than individual transactions,” instead representing a “transformative technology” that can revolutionize a variety of sectors. He highlighted its ability to provide creators with royalties for secondary market transactions as an example, adding:

“Crypto, like the internet before it, has the potential to modernize finance and numerous other sectors, from supply chains to social media, by offering a faster, cheaper, more private, and accessible platform.”