Imagine building a company from a $15 million initial coin offering to an impressive $60 billion empire. That’s exactly what Changpeng “CZ” Zhao has done with Binance since he founded the crypto exchange in 2017 before resigning on November 21 as part of a settlement with the United States Department of Justice (DOJ).
However, CZ wasn’t just the brains behind Binance: he might be the biggest player in the entire cryptocurrency game. As such, his downfall represents more than just a personal setback; It is another blow to the global image and credibility of the cryptocurrency industry.
The United States also targeted Kraken in this week’s crackdown on cryptocurrencies. The U.S. Securities and Exchange Commission (SEC) sued the exchange, alleging that it commingled client funds and failed to register as a stock exchange, broker, dealer and clearing agency. The same accusations were filed against Coinbase and Binance in June.
The recent hit came despite Kraken reaching a $30 million settlement with the regulator in February, which was apparently not enough to satisfy the regulator. The recent roller coaster ride reveals one thing about the crypto industry: it is going through a period of change.
This week’s crypto Biz also discusses Grayscale and BlackRock’s meetings with the SEC, Circle’s new bridge standard, the closure of Bittrex Global, and the most recent acquisition of CoinGecko.
Grayscale and BlackRock met with SEC to discuss details of bitcoin spot ETF
The SEC met with two more investment managers to discuss their applications for a spot bitcoin (btc) exchange-traded fund (ETF). Grayscale met with SEC officials on Nov. 20 about a rule change to include the Grayscale bitcoin Trust, as well as an agreement with BNY Mellon to act as a transfer agency and service provider. BlackRock representatives met with the SEC on the same day and detailed how the company could use an in-kind or cash reimbursement model for its iShares bitcoin Trust. In October, the SEC also met with representatives from Hashdex, another company seeking approval to launch a bitcoin spot ETF.
Circle launches “bridge USDC standard” to deploy on new networks
Circle has introduced a new standard to streamline the process of launching its stablecoin USD Coin (USDC) on new networks. The new “USDC bridge standard” allows developers to launch the token through a two-phase process, allowing for the launch of an unofficial bridge version of USDC that can then become native and official. According to the company, the standard is expected to eliminate the need for “migrations,” where users must exchange an unofficial version of USDC for an official version once it is available. If developers use the new standard, migrations should become unnecessary as it allows unofficial tokens already in a user’s wallet to become official.
Bittrex Global announces all trading will be disabled as it closes operations
Cryptocurrency exchange Bittrex Global has announced plans to close its operations, beginning with the suspension of trading activity on December 4. The exchange urged users with US dollar holdings to convert their funds to euros or cryptocurrencies by December 4 or risk not being able to withdraw them. the assets. The announcement came about nine months after its US-based division, Bittrex, said it planned to close its operations in the country starting April 30 “due to continued regulatory uncertainty.” Bittrex filed for Chapter 11 protection in US bankruptcy court in May and settled its case with the SEC for $24 million in penalties and interest in August.
CoinGecko Acquires nft Startup Zash
crypto analytics company CoinGecko is expanding its data offering by acquiring non-fungible token (nft) data infrastructure platform Zash. According to a Nov. 21 announcement, CoinGecko plans to integrate Zash’s nft data into its application programming interface by the second quarter of 2024. Users of CoinGecko’s web and mobile app will be able to access unified crypto data offerings, it said the company. Terms of the agreement have not been disclosed. Founded in 2021, Zash allows users to track nft data across 102 marketplaces.
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