Binance’s regulatory challenges in the UK continued this week, with some leading banks blocking deposits to the crypto exchange.
Some banks block deposits on Binance
The regulatory challenges facing the Binance exchange in the UK are well documented. It began after the Financial Conduct Authority (FCA) warned the exchange it did not have permission to conduct regulated activities in the UK. This week, Barclays parted ways with Binance, telling its customers that they could no longer make deposits to their Binance account using credit/debit cards. Barclays said it would maintain that status until further notice.
The crypto exchange itself blocked deposits from Europe’s critical payment networks: the Single Euro Payments Area, or SEPA. Binance said it stopped processing SEPA payments due to events beyond its control. However, it assured its users that the SEPA ban is only temporary, and it is looking for ways to make it happen again.
Santander is the latest UK bank to block deposits on Binance. The Spanish banking giant announced this yesterday. Binance, for its part, wants to hire an ex-regulator in the UK to run its British Binance arm. This move, similar to the US, will help ease regulatory pressure as the new Binance UK boss will be familiar with the UK’s regulatory landscape.
The acceptance of cryptocurrencies continues to grow
A new report from Visa shows that the adoption of cryptocurrencies has increased massively in recent months. The payments giant said that cryptocurrency-related transactions crossed the $ 1 billion mark in the first half of 2021. According to Visa, cryptocurrency card spending experienced so far in 2021 has surpassed 2020 and 2019 figures. In addition, Visa cited that more people are using their credit and debit cards to buy cryptocurrencies. The company’s CFO stated that they do not expect the trend of acceptance to slow down. Instead, it will continue to increase as more people gain exposure with the market.
Ether can surpass Bitcoin as a store of value
There have been numerous debates about Ether, the second largest cryptocurrency by market capitalization and the market leader Bitcoin. Leading investment bank Goldman Sachs has joined the fray, believing Ether could surpass Bitcoin as a better store of value. In its research note earlier this week, the bank writes that Ether has the necessary potential to overtake BTC. Goldman Sachs pointed to the increasing popularity of Ether in the market and the massive use of the Ethereum blockchain by developers and institutions worldwide.
Cryptocurrency Exchanges Suffer Volume Slump in June
The cryptocurrency market has been in a bearish trend for a couple of weeks. The last time prices rose was in May. As a result of the fall in prices, cryptocurrency exchanges recorded a 56% drop in trading volume in June. Recent data showed that cryptocurrency exchanges processed $958.3 billion in transaction volume in June. This is a massive drop from the $ 2.18 trillion recorded in May. June was also the first time since January that total trading volume has fallen below $1 trillion. Bitcoin has lost more than 40% of its value in recent weeks and is still trading below the $ 35,000 mark.
SEC Delays Further Bitcoin ETF Decision
The United States Securities and Exchange Commission (SEC) has yet to approve a single application for an exchange-traded Bitcoin fund (ETF), although several companies have submitted such an application. Regulation has postponed its decision on some applications and did so this week with the SkyBridge Bitcoin ETF application. The SEC was supposed to decide this month, but has extended the 45-day exam period to next month. Regulation is currently reviewing nine Bitcoin ETFs and two Ether ETFs. While the US has not yet approved one, institutions are getting access to Bitcoin ETFs in Canada, Brazil and Dubai.
Bitcoin.org suffers a DDoS attack
Bitcoin.org, the original Bitcoin website, suffered a distributed denial-of-service (DDoS) attack earlier this week. The attacker or attackers demand 0.5 BTC as ransom. Bitcoin.org is an educational resource website dedicated to educating about Bitcoin. The site has been active since August 2008, providing people with the necessary information on where to buy BTC and explaining the use cases of Bitcoin. The attack comes after a difficult time for Bitcoin.org, after the site was instructed to remove the Bitcoin whitepaper for UK users due to copyright infringement.
Circle will go public soon
Circle, the company behind the USDC stablecoin, announced yesterday that it will go public via a SPAC deal. The company will be listed on the New York Stock Exchange under the ticker symbol “CRCL” and is valued at around $ 4.5 billion. According to the company, its stablecoin USDC has experienced massive growth over the past year and aims to maintain momentum in the coming years. USDC has a market capitalization of just under $26 billion, making it the second largest stablecoin in the world after Tether (USDT).
Chinese Regulators Close crypto trading software firm
Chinese regulators continued their crackdown on cryptocurrency activity. The Business Administration Department of the People’s Bank of China (PBoC) and the Beijing Financial Supervision and Administration Bureau closed the business of Beijing Qudao Cultural Development Limited.
According to regulators, Beijing Qudao is a company that develops software for trading cryptocurrencies. Therefore, its operation was disabled and the site was blocked. Regulators asked companies and financial institutions in Beijing not to provide services to cryptocurrency companies operating there.