- TrueUSD Wobbles Towards $1 Peg Amid Reported Redemption Issues
Stablecoin TrueUSD (TUSD) continued to wobble off its peg, trading as low as 96 cents early Thursday, before recovering to 99 cents, as some firms claim their redemption requests were denied.
According to trading data from Binance, traders have sold $303.5 million in TUSD against $129 million in buys, making for a negative net flow of $174.5 million.
One large quantitative crypto trading firm that spoke to CoinDesk on background said that its redemption requests have been denied, and complained about the difficulty in redeeming TUSD for fiat after the blow-up of crypto custodian Prime Trust.
- EU provisionally agrees on stricter due diligence rules for crypto firms
The European Council and Parliament reached a provisional agreement on parts of a new anti-money laundering package that would impose stricter rules for cryptocurrency firms. In a statement released Thursday, the group of policymakers said the new rules would cover “most of the crypto sector” and would require crypto firms to conduct due diligence on their customers.
According to the provisional agreement, crypto firms would need to carry out due diligence when customers intend to process transactions worth at least €1,000 ($1,090). It also adds measures to mitigate risks in relation to transactions with self-hosted wallets, the statement said.
- Bitcoin miners in ‘selling mode,’ dumping $450M BTC in a day
Bitcoin BTC $42,394 miners sold more than 10,000 Bitcoin in a single day on Jan. 17, registering the largest daily decline in miner reserves in over a year.
According to data from on-chain analytics provider CryptoQuant, Bitcoin miner reserves declined by 10,233 BTC on Jan. 17, which is roughly $450 million at current prices.
Miners typically go through phases of accumulation and selling. According to a 2023 Bitfinex report, miners began accumulating Bitcoin around mid-2023 when prices and profitability were lower.
- Cryptocurrency Sector to Face Enhanced AML Regulations as per EU’s Provisional Agreement
According to Cointelegraph: Under a provisional agreement, the European Council and Parliament have decided to extend the European Union’s Anti-Money Laundering (AML) and Counter-Terrorist Financing laws, now encompassing the cryptocurrency industry. This decision follows the EU banking watchdog’s recent amendment of AML guidelines for crypto firms.
As per the new agreement, cryptocurrency service providers will be required to validate their customers’ details and flag any suspicious activities. Any transactions exceeding the value of €1,000 ($1,090) will be subject to scrutiny. Additionally, this provisional law proposes measures to mitigate risks associated with self-hosted wallets.
- Grayscale Sees Over $477 Million Bitcoin Exodus as Blackrock and Fidelity ETFs Bolster Holdings
As of Wednesday, Jan. 17, 2024, data from Grayscale’s GBTC web portal shows that the fund’s bitcoin holdings have decreased to 605,890.87 BTC, valued at $25.84 billion. This represents a decrease of 11,189 BTC since the previous update on Jan. 13, when the holdings were reported at 617,079 BTC. The withdrawal of $477 million from GBTC’s coffers follows similar outflows that occurred in the initial two trading days of Jan. 11-12, 2024.
Grayscale Sees Over $477 Million Bitcoin Exodus as Blackrock and Fidelity ETFs Bolster Holdings
Grayscale’s GBTC web portal.
In contrast, Blackrock’s Ishares Bitcoin Trust, according to its web portal, currently possesses 16,361 BTC, estimated to be worth $707.42 million. Additionally, the Fidelity Wise Origin Bitcoin Fund (FBTC) maintains a holding of 12,112 BTC, approximately valued at $516 million. Both IBIT and FBTC have experienced growth in their bitcoin holdings since their last reporting. Bitwise’s BTCB fund remains at its previous level of 5,550 BTC as of the Jan. 13, 2024 update.
- Bitcoin Downside Risks Remain Despite Early Success of Spot ETFs, Observers Say
Headwinds for bitcoin (BTC) continues to linger and could contribute to prices falling lower in the coming days, despite the apparent early successes of several U.S. listed spot exchange-traded funds (ETFs).
Bitcoin prices fell as low as 15% after the much-awaited ETF listing last week, with outflows from Grayscale’s Bitcoin Trust product said to be contributing to the downward pressure.
ETF volume data provided by BlackRock (BLK), Fidelity and Bitwise cumulatively crossed the $500 million mark earlier this week – indicating demand from regulated funds and professional traders. Coinbase (COIN), the custodian for several ETF providers, saw record-high OTC desk transfer volumes.
- Ripple CEO cites SEC’s ‘hostile’ crypto stance for not prioritizing IPO
Speaking with CNBC at the World Economic Forum in Davos, Switzerland yesterday, Ripple CEO Brad Garlinghouse said an initial public offering (IPO) in the U.S. was not an immediate term priority with a securities regulator that is “hostile” to the crypto industry.
“Trying to go public with a very hostile regulator that has to approve your S-1 — that doesn’t sound like a lot of fun to me,” Garlinghouse said. “Coinbase obviously had their S-1 approved and now the Securities and Exchange Commission is suing them for doing things that were outlined in their S-1.” An S-1 prospectus is a form filed with the SEC prior to a potential IPO giving an account of the company’s business operations and financials.
- Cryptocurrency sector faces stricter AML regulations with EU provisional agreement
The European Council and parliament have provisionally agreed to expand parts of the European Union’s Anti-Money Laundering (AML) and Counter-Terrorist Financing law to cover the cryptocurrency market.
The deal will include most of the cryptocurrency industry, meaning companies providing cryptocurrency services must check and confirm details about their customers. They also have to report any activities that seem suspicious. According to the new agreement, these companies must check all transactions that cost €1,000 ($1,090) or more. The temporary law also includes steps to reduce the risks linked to self-hosted wallets.
- Alchemy Pay Deploys Fiat-to-Crypto Services on Bitcoin.com
According to Foresight News, cryptocurrency payment provider Alchemy Pay has deployed its fiat-to-crypto services on Bitcoin.com. This integration supports the purchase of various cryptocurrencies, including Bitcoin.com’s reward token VERSE.
The collaboration between Alchemy Pay and Bitcoin.com aims to provide users with a seamless experience when buying cryptocurrencies using fiat currencies. The deployment of Alchemy Pay’s services on the platform is expected to enhance the overall user experience and promote the adoption of digital currencies.
- Tether Criticizes UN Report for Ignoring USDT’s Role in Helping Developing Economies
Tether, the issuer of the stablecoin USDT, has criticized the United Nations Office on Drugs and Crime (UNODC) study for singling out the stablecoin’s use in illicit activities. Tether argues that the UNODC report ignores the stablecoin’s “role in helping developing economies in emerging markets.” According to the stablecoin issuer, the global financial world often neglects these markets because “servicing such communities would be unprofitable.”
In its statement on Jan. 15, Tether rebuffed the UNODC assessment of USDT, stating that its collaboration with global enforcement agencies ensures “unparalleled monitoring” of the tokens. The use of public blockchains makes every tether transaction trackable thus making USDT “an impractical choice for illicit activities.”