Cryptocurrencies To Watch

Author: Chris Lion

  • This German Bank is Planning to Launch Bitcoin Trading Service

    This German Bank is Planning to Launch Bitcoin Trading Service

    Leading German banking institution Commerzbank has partnered with Crypto Finance, a subsidiary of Deutsche Börse, to provide its corporate clients in Germany with safe and secure access to crypto assets.

    The German bank noted in a press release that the collaboration will primarily focus on bitcoin (BTC) and ether (ETH). 

    Commerzbank Joins the Crypto Bandwagon

    The move comes nearly a year after Commerzbank became the first German universal bank to obtain a crypto custody license. Issued in November 2023, the license allows the Bank to provide clients with crypto services.

    The partnership with Crypto Finance aims to provide Commerzbank’s corporate clients with seamless crypto transactions without the need to forgo established and regulated structures and partners.

    Commerzbank will handle the custody of digital assets through the strategic alliance, while Crypto Finance will oversee their secure trading.

    Commenting on the latest development, Gernot Kleckner, Divisional Board Member Capital Markets in the Corporate Clients segment at Commerzbank, said:

    “Our offering in digital assets, enables our corporate clients to seize the opportunities presented by bitcoin and ether for the first time.”

    Stijn Vander Straeten, Chief Executive Officer of Crypto Finance, also noted that the collaboration marks a significant milestone for Crypto Finance as it enables more companies and institutions in the country to access regulated crypto services. 

    Banks Are Penetrating the Crypto Industry

    In recent times, an increasing number of banks have been joining the crypto industry by providing custody or trading services to their clients.

    Earlier this week, Singapore’s largest bank, DBS, revealed plans to launch bitcoin and crypto options trading to its customers, fostering crypto integration into traditional finance activities.

    Similarly, Global banking giant Standard Chartered recently launched BTC and ETH custody services in the United Arab Emirates (UAE).

    The service will operate within the Dubai International Financial Center (DIFC) and will begin by offering support for bitcoin and ether, the leading cryptocurrencies in market value and adoption.

  • Republican Lawmakers Request SEC Chair to Explain Position on Crypto Airdrops

    Republican Lawmakers Request SEC Chair to Explain Position on Crypto Airdrops

    Two Republican lawmakers are urging the United States Securities and Exchange Commission (SEC) Chair Gary Gensler to address questions regarding categorizing crypto airdrops by the end of the month.

    A crypto airdrop is a popular method blockchain projects use to distribute tokens to users, usually for free. Airdrops are often associated with the launch of a new cryptocurrency or a DeFi protocol, primarily as a way of gaining attention and new followers, resulting in a larger user base.

    In a letter to Gensler on September 17, Representative Tom Emmer and House Financial Services Committee Chair Patrick McHenry expressed concern over the SEC’s claims regarding airdrops in multiple legal cases brought over the past two years.

    The lawmakers contend that the lack of clear regulations surrounding airdrops could weaken the country’s competitive edge in the fast-growing digital economy.

    “The SEC is putting its thumb on the scale and precluding American citizens from shaping the next iteration of the internet,” they wrote.

    Gensler to Respond Questions About Crypto

    Emmer and McHenry also called on Gensler to answer five specific questions about crypto airdrops, including how tokens distributed at no cost are classified under the Howey test and how the SEC differentiates airdrops from other incentives such as credit card rewards.

    They further inquired about the potential effects on onchain applications, economic growth, and tax revenue if airdropped tokens were classified as securities and whether the regulator had evaluated the market implications of treating crypto assets as securities.

    “By prohibiting Americans from participating in airdrops, the SEC is preventing American crypto users from fully realizing the benefits of blockchain technology,” the lawmakers added.

    This is the second time this month that GOP lawmakers have criticized Gensler’s leadership of the agency.

    On September 10, several GOP probed Gensler, a Democrat, regarding whether his political affiliation has affected the SEC’s hiring practices.

    In a letter to Gensler, the legislators, including McHenry, accused the agency of appointing people from progressive organizations to senior positions at the SEC.

    The SEC is Going After Entities

    Over the years, the SEC has taken legal actions against several entities over the selling of unregistered securities and other illegal financial misconducts. For instance, In September 2022, the SEC filed a lawsuit against Hydrogen Technology Corporation and its former CEO, accusing them of manipulating the market.

    The company minted more than 11 billion Hydro tokens for fundraising and distributed them through airdrops, which the SEC labelled as unregistered offers and sales of their securities.

    In March 2023, the SEC took legal action against Justin Sun and several companies, alleging that they were involved in the offering and selling of BitTorrent (BTT) as securities.

  • Circle’s USDC Stablecoin Set to Launch on Sui Network

    Circle’s USDC Stablecoin Set to Launch on Sui Network

    Circle, the issuer of the popular USD Coin (USDC) stablecoin, has announced plans to launch on the layer-1 blockchain Sui network.

    USDC is a fully-backed stablecoin tied 1:1 to the United States dollar, offering users a stable store of value in the often volatile crypto market.

    Circle CEO Jeremy Allaire noted that the upcoming launch of USDC on the Sui network can expand the support of stablecoin to more than 15 blockchain networks.

    USDC to Launch on Sui via CCTP

    With the forthcoming integration, USDC will gain support on the Sui network through the Cross-Chain Transfer Protocol (CCTP). This permissionless on-chain tool enables seamless transfers of USDC across different blockchains by utilizing a process of native burning and minting.

    Integrating native USDC and CCTP on Sui will enhance the L1 network’s usability, security, and interoperability for both users and developers.

    Notably, USDC’s deployment on Sui came only a day after the stablecoin issuer partnered with the electronics firm Sony to launch the dollar-pegged asset on the Ethereum layer-2 network, Soneium. Circle’s USDC is currently available on over 15 blockchains, including Avalanche, Base, Solana, and Polygon.

    Why Sui Network?

    Launched in 2023, Sui Network is an L1 blockchain and smart contract platform designed to simplify and enhance the development of applications and features within the Web3 space. It operates using the Move programming language and supports parallel transaction processing.

    As the need for faster and more scalable blockchain solutions grows, Sui’s high throughput and capacity to process complex smart contracts efficiently make it a desirable platform for stablecoins such as USDC. By incorporating with Sui, Circle aims to facilitate a smoother experience.

    Developers on Sui will soon be able to integrate native USDC into a diverse range of digital dollar-backed financial products. These solutions could cover multiple sectors, including decentralized finance (DeFi), gaming, decentralized physical infrastructure networks (DePIN), and e-commerce.

    Sui’s DeFi ecosystem has accumulated over $700 million in Total Value Locked (TVL) and over $215 million in bridged USDC. The protocol is also among the top 10 blockchain networks for weekly decentralized exchanges (DEXs) trading volume.

    Meanwhile, following the announcement, the price of SUI has seen a mild uptrend and is currently changing hands at $1.14, a 2% increase on the day.

  • Bitcoin Investment Products Record $436M Inflows, Ethereum Funds Struggle

    Bitcoin Investment Products Record $436M Inflows, Ethereum Funds Struggle

    According to crypto asset firm CoinShares, crypto investment funds managed by BlackRock, Grayscale, Bitwise, Fidelity, ProShares, and 21Shares have recorded a net inflow of $436 million after two weeks of net outflows of $1.2 billion.

    Bitcoin investment products saw a shift in trends, with net outflows of $8.5 million after three weeks of consistent inflows.

    CoinShares noted that the United States market led the way, with spot Bitcoin exchange-traded funds (ETFs) generating $416 million in net inflows. Switzerland and Germany recorded $27 million and $10 million, respectively, while Canada-based products saw net outflows of $18 million.

    “We believe the surge in inflows towards the end of the week was driven by a significant shift in market expectations for a potential 50 basis point interest rate cut on September 18th,” CoinShares Head of Research James Butterfill said.

    Butterfill noted that the trading volumes in ETFs remained flat at $8 billion for the week, lower than the $14.2 billion average this year so far.  

    Bitcoin Investment Products Take the Lead

    In the past week, the U.S. spot Bitcoin ETFs recorded their fifth consecutive day of positive flows, bringing in $39.42 million in inflows.

    The inflows marked a shift in sentiment after a period of market turbulence driven by regulatory uncertainties and other significant factors.

    With BlockRock’s IBIT, the largest spot Bitcoin ETF by net assets, recording approximately $8.35 million in net inflows, Franklin Templeton’s EZBC $3.55 million flow into the fund, and much more suggested that investors are starting to regain confidence in the crypto asset.

    According to charting platform TradingView, the ratio between bitcoin and ether fell below 0.04 over the weekend, marking its lowest point since April 2021.

    Ethereum Investment Products Record $19M Outflows

    Ethereum, on the other hand, recorded $19 million in outflows and contributed $98 million in negative flows a week before.

    Over the past week, the U.S. spot ETH ETF has also seen net outflows of $17.97 million.

  • eToro Settles with SEC, Halts Trading Activity For Most Crypto Assets

    eToro Settles with SEC, Halts Trading Activity For Most Crypto Assets

    Popular social trading platform eToro has reached a $1.5 million settlement with the United States Securities and Exchange Commission (SEC). Under the agreement, the company will cease offering trading services for most crypto assets to U.S. customers.

    The SEC noted that since 2020, eToro has functioned as a broker and clearing agency by enabling U.S. customers to trade crypto assets classified as securities through its online trading platform. Still, it failed to meet the registration requirements under federal securities laws.

    The $1.5 million penalty signifies eToro’s agreement to adhere to federal securities laws as it maintains its U.S. operations, according to the announcement.

    eToro Limits Crypto Assets Available for Trading

    eToro, without admitting or denying the SEC’s findings, will liquidate any crypto assets classified as securities that cannot be transferred to customers, returning the proceeds to them accordingly.

    Under the settlement terms, eToro agreed to restrict the crypto assets available for trading in the U.S. to a limited selection and to comply with federal securities laws moving forward. 

    The trading platform noted that its U.S. customers could only trade Bitcoin, Bitcoin Cash, and Ether. eToro further stated that affected users will need to sell all other crypto assets within 180 days, starting September 12.

    “By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established regulatory framework. This resolution not only enhances investor protection but also offers a pathway for other crypto intermediaries,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.

    The SEC’s latest move follows a long line-up of regulatory clampdowns on crypto-focused entities. A recent report confirmed that the financial agency has imposed 11 fines worth $4.68 billion on crypto firms and individuals this year alone. The infamous blockchain project Terraform Labs and its founder, Do Kwon, received the biggest civil penalty, worth about $4.5 billion.

  • India, Nigeria Lead Crypto Adoption Despite Regulatory Hurdles

    India, Nigeria Lead Crypto Adoption Despite Regulatory Hurdles

    India and Nigeria have become leaders in crypto adoption despite the regulatory barriers and uncertainties surrounding digital assets in these countries.

    According to a recent report by blockchain research firm Chainalysis, from the fourth quarter of 2023 to the first quarter of 2024, there was a significant rise in the total value of global crypto transactions.

    India Takes the Lead

    India, home to over 1.450 billion people, has seen explosive growth in crypto usage over the past few years. Despite strict regulatory crackdowns by the country’s regulatory body, crypto adoption in India has flourished.

    Similar to last year’s report, India has once again topped the Chainalysis index, maintaining its leading position as the highest-ranked country in crypto adoption. The impressive performance highlights that local investors remain committed to digital assets, even in the face of heavy taxation and tight regulations to curb crypto activity. 

    India has also outpaced 154 other nations to secure the top position for DeFi adoption, according to the 2023 Global Crypto Adoption Index. A report on the county’s crypto landscape revealed that 17.6% of Indian crypto investments are allocated to DeFi utility tokens such as SushiSwap, DIA, Yearn.Finance, DFI.Money, Aave, Compound, and others.

    Nigeria Ranks Second-Largest Position

    Nigeria, on the other hand, ranked second in crypto adoption. The African largest economy also ranked second in crypto use in 2023, according to the report.

    Nigeria is the only African country ranked among the top 20 in global crypto adoption.  

    Despite the Central Bank of Nigeria (CBN) banning financial institutions from facilitating crypto transactions in early 2021, the country continued to lead in P2P trading volumes globally until the federal government of Nigeria, through the Securities and Exchange Commission (SEC), imposed a ban on peer-to-peer (P2P) transactions. This caused crypto exchange giants like Binance and OKX to cease P2P operations for investors in the country. The proposed ban also aims to implement control over the country’s crypto market.

    Just recently, Nigeria’s SEC announced plans to crack down on unregulated crypto exchanges, businesses, and individuals operating in the country. The report noted that the government would commence enforcement action on entities attempting to provide crypto services without appropriate regulation.

  • Standard Chartered Launches BTC and ETH Custody Service in UAE

    Standard Chartered Launches BTC and ETH Custody Service in UAE

    Global banking giant Standard Chartered has launched a digital asset custody service in the United Arab Emirates (UAE). 

    According to the official announcement, Standard Chartered noted that its UAE-based crypto custody division received a license from the Dubai Financial Services Authority (DFSA) following a memorandum of understanding (MoU) signed in May 2023.  

    Standard Chartered Secures First Crypto Client

    The service will operate within Dubai International Financial Centre (DIFC) and will begin by offering support for bitcoin (BTC) and ether (ETH), the leading cryptocurrencies in terms of market value and adoption. The announcement also revealed that Standard Chartered has secured Brevan Howard Digital, a global alternative asset management firm, as its first crypto client for the offering.

    Commenting on the latest development, Bill Winters, Group CEO of Standard Chartered Bank, said: 

    With this new service, we are strategically positioning ourselves at the forefront of this next evolution in the custody business. Our robust infrastructure, coupled with our expertise in the field, allows us to provide a bridge between the world of financial services and the emerging digital asset ecosystem.

    Winters also noted that the launch of the digital asset custody offering marks a critical stage for the banking giant and the financial services industry.

    • According to Winters, the new service places the bank at the forefront of the evolving custody business. The Group CEO also emphasized the bank’s strong belief in the future of digital assets. 

    “We firmly believe that digital assets are not merely a passing trend, but a fundamental shift in the fabric of finance,” he said.  

    Standard Chartered Plans to Expand its Presence

    The company stated that the offering extends beyond basic wallet management. The firm further noted that it is a complete solution that tackles the specific challenges of digital asset custody, focusing on regulatory, risk, and prudential aspects.

    The bank intends to expand its custody services in the coming months by incorporating additional digital assets and extending its presence to other major financial hubs.  

    Meanwhile, Standard Chartered is one of the banks actively venturing into the crypto sector. On July 18, the bank collaborated with Web3 company Animoca Brands to engage in the stablecoin issuer sandbox managed by the Hong Kong Monetary Authority (HKMA).

  • SEC Crypto Fines Soar to Record $4.68B in 2024 Crackdown

    SEC Crypto Fines Soar to Record $4.68B in 2024 Crackdown

    The United States Securities and Exchange Commission (SEC) has received $4.68 billion in fines from 11 crypto-related entities.

    According to a recent report, this record is the highest ever set in a year. Since 2013, the SEC has imposed over $7.42 billion in fines on crypto companies and individuals.

    The 11 enforcement actions in 2024 resulted in an average fine of $426 million, significantly exceeding the average fines of previous years. The increase from an average fine of $3.39 million in 2018 to $426 million in 2024 highlights the escalating financial risks for crypto companies that do not meet regulatory requirements.

    This year’s record far exceeds the totals from the previous two years, which were $308.9 million in 2022 and $150.26 million in 2023. This year’s fines reflect a 63% increase compared to last year’s.

    The SEC has intensified its regulatory efforts in the crypto sector to promote transparency, safeguard investors, and ensure legal adherence. The report noted that these fines highlight the importance of complying with regulations as the crypto asset space grows.

    Terraform Labs Bagged the Highest Fine

    The report also revealed that Terraform Labs led this year’s record with nearly $4.5 billion in June. Additionally, the Singapore-based blockchain project and its co-founder, Do Kwon, received the largest fine ever issued by the SEC since 2013 for misleading investors and offering unregistered securities.

    The fine was imposed after the project collapsed in May 2022, when Terraform Labs’ UST stablecoin lost its peg to the U.S. dollar and other related tokens experienced substantial devaluation. This led to a $45 billion reduction in the crypto market capitalization, critically affecting numerous crypto companies.  

    Telegram & Ripple Labs Not Left Out

    Terraform Labs was not the only firm that received a fine from the SEC. The social media platform Telegram was fined $1.4 billion in 2019, the largest fine at the time. The agency fined the social app for illegally distributing TON crypto tokens via an initial coin offering (ICO).

    The SEC also fined Ripple Labs $125 million for selling XRP as an unregistered security.

  • Nigeria’s SEC to Target Unregulated Crypto Exchanges

    Nigeria’s SEC to Target Unregulated Crypto Exchanges

    Nigeria’s Securities and Exchange Commission (SEC) has announced plans to crack down on unregulated crypto exchanges, businesses, and individuals operating in the country.

    According to local news agency Nairametrics, Emomotimi Agama, the Director-General (DG)  of Nigeria’s SEC, revealed that the country would commence enforcement action on entities attempting to provide crypto services without appropriate regulation.

    Agama noted that these measures reflect the SEC’s dedication to safeguarding investors, including those in the crypto sector.

    “We are certainly going to commence enforcement actions on anyone who wants to operate in this market without the intention of being regulated. For those that do not want to play by the books, we will not allow them to operate within our space,” Agama said.

    Only Two Crypto Exchanges Regulated in Nigeria

    The latest announcement comes after the Nigeria securities regulator issued licenses to two local crypto exchanges, Busha Digital and Quidax Technologies.

    Agama noted that the recent approval of the two crypto exchanges was motivated by the increasing interest among young Nigerians in digital assets. The official emphasized the importance of establishing a transparent regulatory framework that safeguards investors and promotes innovation.

    Agama also revealed that the SEC had received many applications from crypto exchanges. Still, he stated that the number of registered exchanges would be based on their ability to meet the commission’s rigorous regulatory criteria.

    He further noted that the SEC’s oversight of crypto assets will involve implementing checks through anti-money laundering and counter-terrorism financing protocols.

    According to Agama, crypto exchanges’ operations must be carefully monitored to ensure they do not disrupt the economy.

    Lack of Clarity in Nigeria’s Crypto Regulations

    Meanwhile, industry analysts agree that despite Nigeria’s rise as one of the significant players in the crypto market, its approach to regulating crypto transactions has been unclear and inconsistent.

    In February 2021, the Central Bank of Nigeria (CBN) imposed a comprehensive ban on digital assets by prohibiting all financial institutions from providing services to crypto exchanges.

    In December 2023, the CBN lifted the ban on crypto transactions but later introduced regulations set for May 2024 to restrict peer-to-peer crypto exchanges involving the Nigerian naira.

    Nigerian regulators have also targeted global exchanges like Binance, which led the company to stop all Nigerian naira transactions.

  • Bianco Research CEO Says Bitcoin ETFs Need Time to be Instrument of Adoption

    Bianco Research CEO Says Bitcoin ETFs Need Time to be Instrument of Adoption

    Jim Bianco, CEO of analytics firm Bianco Research, believes that spot Bitcoin exchange-traded funds (ETFs) need time to be an instrument of adoption.

    In a recent X post, Bianco noted that spot Bitcoin ETFs have not yet met the high expectations set before the approval despite launching for trading in January.

    The Bianco Research CEO noted that the recent outflows, investors facing losses in their positions, and the absence of significant institutional investment suggest that the Bitcoin ETF market may require more time to develop fully.

    U.S. Spot Bitcoin Hits $1B in Net Outflows

    Data from investment management company Farside Investors revealed that the U.S. spot Bitcoin ETFs have recorded over  $1 billion in net outflows in the last eight trading days. The spot Bitcoin ETF market now holds approximately $48 billion in assets under management, a decline from its March peak of $61 billion.

    Commenting on the post, Bianco noted that very little fresh capital has flowed into the crypto market, with most ETF inflows coming from on-chain holders transitioning back to Traditional Finance (TradFi) accounts.

    “It’s not an adoption vehicle. Instead a small tourist tool and on-chain is returning to Tradfi,” Bianco said.

    The research expert also predicted that the market may not reach its full potential until the next Bitcoin halving in 2028, coupled with major advancements in blockchain technology.

    Other Analysts Weigh in

    Not everyone agreed with Bianco’s thoughts on Bitcoin ETFs. For instance, Bloomberg’s senior ETF analyst, Eric Balchunas, pointed out in a September 8 post on X that Bitcoin ETFs have amassed billions in assets under management within just eight months.

    “If IBIT has like $20 billion in assets and that’s considered a failure then what word should be used to describe an ETF with $7 million in assets?” Balchunas asked.

    Another crypto analyst, Bryan Ross, took a different view from Bianco, arguing that “if most ETF trades are NOT institutional, this means institutions aren’t even here yet, and we could see massive institutional inflows next time FOMO and greed show up.”

    Meanwhile, among the U.S. spot Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) stands out with over $20 billion in inflows.

    Fidelity’s Wise Origin Bitcoin Fund (FBTC) has attracted nearly $10 billion. The ARK 21Shares Bitcoin ETF (ARKB) and the Bitwise Bitcoin ETF Trust (BITB) have accumulated about $2 billion in net inflows.