Five things that happened in crypto this week

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The new U.S. boss of Binances, Coinbase finding itself in the crosshairs of regulation, and El Salvador making history with bitcoin were among the top hot topics in the cryptocurrency industry this week.

In case you’re enjoying the last summer heat, here’s what you’ve been missing out on.

Crypto exchange Binance has appointed a new chairman of its business in the United States, providing some stability to the company’s operations after its CEO stepped down just four months after taking office.

Former Ant Group and Uber director Brian Shroder has been hired as chairman of Binance.US, the company announced on September 9, and will also join the company’s board of directors.

In this new role, Shroder will oversee corporate strategy and execution, fundraising, business and corporate development, as well as the management of the legal, human resources and product functions of the company. business.

It comes after Binances’ US chief Brian Brooks unexpectedly resigned last month, citing strategic differences as the company’s regulatory scrutiny intensified. Binance has received regulatory warnings in several jurisdictions, including the UK, Italy, Germany, and Hong Kong, as watchdogs feared it might operate without proper authorization.

READBinance faces new warning in Singapore as CEO considers US listing

The company is also in the process of securing additional financing, its global director Changpeng CZ Zhao said this month, ahead of a first public offering of its shares within three years.

Shroder said Binance is a profitable, regulatory-compliant company in the United States with millions of customers.

Having worked for several hyper-growing companies before, it’s clear to me that Binance.US has all the ingredients to become the largest and best performing cryptocurrency and digital asset exchange in the United States. Shroder said in a statement.

Additionally, I look forward to sharing our exciting story with the wider investment community as we begin our journey towards the IPO.

Coinbase under surveillance

Coinbases chief executive Brian Armstrong said the United States Securities and Exchange Commission intends to take the cryptocurrency exchange to court if it goes ahead with its plan to allow users earn interest on the cryptocurrency loan.

America’s largest digital asset exchange, which listed its shares in New York City earlier this year, said on September 8 that the SEC had given it a Wells notice regarding its Coinbase Lend program, signaling its intention to sue the company. in justice.

As a result, Coinbase has stated that it will not launch Lend until at least October. Armstrong accused the regulator of refusing to inform the company of why its product violated SEC safety regulations.

READSEC threatens Coinbase with lawsuit for loan program

Coinbase said in a statement that it had been in contact with the SEC for almost six months and did not believe its loan program was viewed as security, which it said was the main concern of regulators. .

Earlier this month, SEC Chairman Gary Gensler issued a warning to the cryptocurrency market, urging companies to seek permission before launching a product, rather than begging for forgiveness.

El Salvador bets on bitcoin

The small Central American nation of El Salvador this week became the first country to make bitcoin legal tender.

A glimpse of what the future of crypto might look like arrived on September 7, where Salvadoran citizens can now pay their taxes, buy a house, and shop in bitcoin.

However, the launch was plagued by technical difficulties, with the government’s official Chivo bitcoin wallet being forced to go offline for several hours as servers struggled to keep up with demand.

READ What is behind the massive bitcoin sale on Tuesday?

Cryptocurrency prices also suffered in the early days, as bitcoin resisted a massive sell off on September 7. The token was trading at around $ 47,000 this afternoon, down 9% in 24 hours, after plunging to $ 42,900 in the morning.

Other cryptocurrencies were also affected, including Ether, down 12% to $ 3,460.

The massive selloff may have reflected traders’ profit taking after prices started rising in late July, with bitcoin having gained more than 50% since then. Crypto watchers have also blamed technical factors for the market downturn.

FCA President reflects on the future of cryptos

The chairman of the UK’s Financial Conduct Authority issued a scathing rebuke to cryptocurrency promoters earlier this week, as he outlined potential ways the watchdog could regulate the industry in the future.

Charles Randell pointed to an Instagram ad posted by influential celebrity Kim Kardashian West earlier this year as emblematic of cryptocurrency scams, after failing to reveal that the token she was promoting was only created for a month. previously by unknown developers.

He also questioned whether the FCA should include cryptocurrency regulation in its remit, expressing concerns that it could give the industry more credibility.

READRegulators crypto dilemma exposed as El Salvador bets on bitcoin

You can buy gold and other commodities, foreign real estate, foreign currency, or even old-fashioned tokens like Pokémon cards, in unregulated markets. There is no shortage of consumer damage in many of these markets, Randell said in a Sept. 6 speech.

So why should we regulate purely speculative digital tokens? And if we regulate these tokens, will that make people think they are bona fide investments? In other words, will the involvement of the FCA give them a halo effect that raises unrealistic expectations in terms of consumer protection?

The UK has yet to pass clear crypto-asset legislation, although a call for evidence on this from the Treasury is currently underway.

The FCA has stepped up efforts to regulate crypto in recent months, including banning crypto exchanges that appear to operate without proper authorization, including Binance and Coinburp.

Robinhood takes action to tackle crypto volatility

Robinhood users will soon be able to schedule their crypto wallets to buy new coins as often as every day, as part of a new tool launched by the online trading platform.

The trading app said on September 9 that users can configure the feature, starting with a $ 1 investment, to buy new coins without paying a commission on a daily, bi-weekly, or monthly schedule. It will gradually be available to US users outside of New York this month.

Saving is a habit, and recurring investments introduce a strategy to grow holdings over time while potentially reducing the impact of market volatility, Robinhood said in a September 9 blog post.

READRobinhood Deploys Recurring Investments to Combat Crypto Volatility

The feature is planned around a strategy known as “cost averaging in dollars,” he said, which encourages investments at regular intervals to smooth out price fluctuations.

Cryptocurrencies gained popularity among retail investors in 2021, but were marked by several sudden large price drops.

To contact the author of this story with comments or news, email Emily Nicolle

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