Coinspeaker Aligned Layer Successfully Raised $20M in Series A Funding Round Led by Hack VC

Aligned Layer, a universal verification layer for the Ethereum (ETH) network via the EigenLayer, has announced the closure of its Series A funding round with $20 million. According to the announcement, the company’s Series A funding round was led by Hack VC. The company also received tremendous support from DAO5, L2Iterative, FinalityCap, Symbolic VC, Theta Capital, J17, EVG Ventures, Decima fund, and Protagonist, among others.

The strategic funds will be used to further build the necessary infrastructure to enable Ethereum to become a scalable blockchain. Furthermore, the Ethereum network is the leading web3 ecosystem with a vast majority of its TVL already bridged to and from other smart contract-enabled chains through its EVM.

“We believe that by reducing barriers and friction for newcomers, decreasing the proving time, and lowering the costs of on-chain verification, we will unlock unprecedented levels of exploration and innovation within the space,” Aligned Layer noted.

The Aligned Layer team has been conducting a simple testnet working with Cosmos SDK. Furthermore, the Aligned Layer team has aspirations of expanding their services to other blockchains that require affordable validity and zero-knowledge (ZK) proofs.

Having successfully raised more funds, the Aligned Layer team announced that it will be migrating to an EigenLayer testnet in the coming weeks. In the near future, the Aligned Layer team intends to provide a software development kit to aid web3 developers in verifying the results of proofs via any smart contract.

Aligned Layer and the Market Picture

The Aligned Layer’s verification software is built using the most popular smart contract programming languages including Rust and Go. Meanwhile, the company announced that it will share the strategic partnership engaged in the near future in addition to angel investors that have supported its mission.

🟩 A Fully Aligned Round: $20M Series A Round🟩

Aligned Layer is pleased to announce a $20M fundraise led by Hack @hack_vc, with support from @daofive, @l2iterative, @NomadCapital_io, @FinalityCap, @symbolicvc, @theta_bv, @J17Crypto, @EVG_Ventures, @decimafund, GM Ventures,… pic.twitter.com/nL2ykP8tF6

— Aligned Layer (@alignedlayer) April 25, 2024

The Aligned Layer team managed to raise crucial funds amid the ongoing mainstream adoption of Web3 projects to revolutionize the global financial landscape. Furthermore, blockchain technology is expected to tokenize almost all global assets including government bonds, real estate, stocks, and equity indexes among others.

As Coinspeaker previously explained, BlackRock Inc (NYSE: BLK), a global leader in fund management, collaborated with Securitize to launch the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum network.

Already, BUIDL has several participants including BitGo, Coinbase Global Inc (NASDAQ: COIN), and Fireblocks, among others.

The need for scalable web3 protocols on the Ethereum network is paramount to enable healthy competition with other blockchains including Solana (SOL), and Toncoin (TON). Furthermore, blockchain decentralization is a process that is achieved over time as more network participants are engaged via on-chain transactions.

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Aligned Layer Successfully Raised $20M in Series A Funding Round Led by Hack VC

Coinspeaker Avail Teams Up with Leading Blockchain Platforms for Data Integration

Avail, an innovative blockchain solution designed to help improve data availability for rollups, has partnered with five layer-2 protocols to boost scalability, cost-efficiency, and developer flexibility.  In an announcement on Thursday, the protocol said that Ethereum-based scaling solutions such as Arbitrum, Optimism, Polygon, StarkWare, and zkSync will integrate its Data Availability (DA) layer into their various platforms.

Avail to Debut DA Layer Soon

The integration aims to empower developers with scalable, cost-efficient, and composable chains capable of handling millions of users.

Once the incorporation is completed, the DA solution will form the foundation for a unified architecture, offering mathematical assurances of data availability and featuring a built-in validator ecosystem for the networks.

It will also bring more transparency to the chains, helping them combat fraud on individual platforms and enabling reliable operations outside the main Ethereum blockchain.

However, it is important to note that Avail’s DA is still in the testnet phase, and its mainnet launch is still underway. Anurag Arjun, the project’s co-founder, confirmed it will be going live soon, in a few weeks. The platform was among the newly launched protocols that joined the crypto ecosystem last year, alongside projects like Celestia, which launched in October, and Eigenlayer’s EigenDA, which went live earlier this month.

Mainnet Launch Preparations

On April 24, Avail rolled out Turing, its ultimate pre-mainnet testing environment, in preparation for its official debut. According to the platform, Turing is specifically designed for thorough deployment vetting, stress tests, and scalability assessments.

Earlier this year, Avail announced it would launch two core products: Nexus and Avail Fusion.

The blockchain unification protocol said Nexus will serve as a layer connecting various rollups within the Avail ecosystem. On the other hand, Avail Fusion will leverage the security of cryptocurrencies such as Bitcoin (BTC) and Ethereum (Ether) to bolster its overall security.

Empowering Blockchain Ecosystems

Despite being in the testnet phase, Avail is already collaborating with its new partners on the integration. The protocol is working closely with OP Labs, a significant contributor to Optimism, to ensure seamless integration within its ecosystem.

According to the announcement, Orbit chain builders on Optimism will now be able to opt for Avail DA after the integration instead of relying on AnyTrust’s external Data Availability Committee.

Avail DA is also set to integrate with the Polygon Chain Development Kit (CDK), an essential part of Polygon’s AggLayer network. Marc Boiron, CEO of Polygon Labs, said developers can create interconnected blockchain solutions once the integration is completed.

“It’s important to provide this type of optionality to developers when the ultimate goal is to enable a thriving and robust ecosystem of connected blockchains through the AggLayer,” Boiron said.

StarkWare and zkSync are not left behind. Integration with these platforms will help streamline the deployment of ZK-powered blockchains, enhancing throughput, scalability, and user experience across platforms.

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Avail Teams Up with Leading Blockchain Platforms for Data Integration

Coinspeaker BNB Chain to Move Native Liquid Staking Feature to BSC

BNB Chain is transitioning from the BNB Beacon Chain (billed to be completely shut down by June 2024) to the BNB Smart Chain (BSC). However, it has revealed plans to move its features to the new chain before the old one closes.

One of the features that BNB Chain will enable on BSC is native liquid staking. According to the organization, this will enable ecosystem participants to secure the network while also keeping the liquidity of their assets.

As of publication, no official date has been set for the rollout of the feature. However, BNB Chain can confirm that it should happen somewhere between April and May.

BNB Chain Eyes Network Streamlining, Efficiency, and Growth Among Other Things

In a note to Cointelegraph, the core developers have explained the migration to BSC as an attempt to streamline the network. They said in a statement:

“The implementation aligns with the sunset of the BNB Chain Fusion, streamlining the network, improving efficiency, reducing security risks and matching current technological demands.”

Furthermore, the team claimed that the transition will undoubtedly portray the BNB Chain to users in a new light. That is, it will become more attractive to customers, ultimately helping the company’s growth plans, they added.

As the team explained, the liquid staking feature makes it so that users can engage in decentralized finance activities in quite the unusual way. They said that users do not necessarily have to sacrifice their asset’s utility as they will have liquid staking tokens in place of their staked crypto assets. Holders can choose between delegating their BNB to a liquidity pool or directly to the validator.

The team also mentioned that BNB stakers would not only enjoy rewards on the staking activities. They said that they also get to benefit from the enhanced security of the BNB Chain network while also having access to improved flexibility in terms of staking. That is, BNB holders now have more options to stake their assets.

According to the development team,  there is another interesting update about the upcoming rollout. The liquid staking feature will be rolled out alongside the maximum extractable value (MEV) optimization for the BNB Chain at the same time. On the MEV, the team said:

“Validators with MEV enabled will have the opportunity to boost their staking returns through MEV revenue, which will ultimately be factored into Liquidity Staking rewards.”

As the phase-out period continues, users are advised to stay updated through official announcement channels for any updates or additional details.

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BNB Chain to Move Native Liquid Staking Feature to BSC

Coinspeaker Renzo (REZ) Addresses Community Backlash with Airdrop Adjustment and Token Stabilization Efforts

Renzo, a liquid restaking platform, has announced changes to its airdrop allocation and token distribution strategy. These moves come in response to mounting community outrage and the temporary depeg of its liquid restaking token – ezETH.

The protocol has increased its airdrop allocation from 5% to 7% of its tokens in the first season. This adjustment aims to distribute a larger portion of tokens to eligible participants, with 7% of the tokens being allocated in the initial phase, which goes live at the end of the month, and 5% in subsequent phases. In total, 12% of the 10 billion token supply is earmarked for user airdrops.

Renzo, the second-largest liquid restaking protocol with over $3 billion in total value locked (TVL) according to DefiLlama, has also strategically rescheduled its claim date to April 30th. This move is timed an hour before the protocol’s incoming token REZ listing on the Binance exchange, an event that has already garnered interest and attention from the crypto community.

The ezETH Depegging Incident: Causes and Consequences

The changes were necessitated by the depegging incident involving Renzo’s liquid restaking token ezETH, which temporarily deviated from the price of Ether (ETH). This incident was likely caused by users who wanted to reclaim their ETH and use it on other liquid restaking platforms. As a result, a sell-off occurred, driving down the value of ezETH to as low as $2600 as seen on PYTH Network’s data on TradingView while some data tracker revealed it dipped to around $700.

To prevent community members from violating regulations and engaging in activities that could impact the overall team, the platform disqualified airdrop farmers who had taken part in looping. Through this process, platform members sold their ezETH for ETH and then redeposited it into the protocol to earn additional rewards. As a result, users started selling large amounts of ezETH, which made the depeg situation even worse.

The selling of ezETH got more brutal by the limited availability of buyers and sellers on the blockchain, causing the value of the token to decrease rapidly. This resulted in a series of forced sell-offs, which led to losses of more than $50 million for individuals who had used leverage when trading ezETH. These losses show the potential risks involved in using leverage for trading strategies.

Trader Makes Profit Amidst Depeg

However, amidst the depeg situation, a trader managed to capitalize on the situation. According to an on-chain analyst on X, Lookonchain, a crypto trader with the handle czsamsunsb.eth made a profit of 121.65 ETH, worth over $396,000, in just two hours after Renzo’s depegging incident.

czsamsunsb.eth made 121.65 $ETH in just 2 hours after $EZETH(Renzo Restaked ETH) depegged!

He spent 4,099 $ETH to buy 4,221 $EZETH successfully, making 121.65 $ETH!https://t.co/niluIilTRi pic.twitter.com/hnPWt0DjZD

— Lookonchain (@lookonchain) April 24, 2024

Overall, there are positive indications of recovery in the price of ezETH, as it has risen to around $3000, reflecting an increase of approximately 15% from yesterday’s drop.

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Renzo (REZ) Addresses Community Backlash with Airdrop Adjustment and Token Stabilization Efforts

Coinspeaker CryptoQuant CEO Disagrees with DOJ’s Intent on Samourai Wallet Charge

Ki Young Ju, CEO of CryptoQuant, has opposed the US Department of Justice’s (DOJ) charge on two co-founders of crypto mixing service Samourai Wallet.

The CEO’s stance aligns with most opinions from experts and investors in the broader crypto market.

CryptoQuant CEO Stands by Samourai Wallet Co-founders

A quick back story. Samourai Wallet founders Keonne Rodriguez and William Lonergan Hill were both arrested on Monday after being charged with money laundering offenses by the DOJ. The minimum penalty for the charges is five years, and the maximum is twenty years.

Their arrest was part of an effort from the US government to prosecute protocols used for crypto mixing tools. Regulators noted that these tools could be used by bad actors and foreign governments to conceal fund transactions.

However, CryptoQuant’s CEO sternly criticized the DOJ for pressing charges against Samourai Wallet founders in a rare advocacy move. He noted that Rodriguez and Hill are both pioneers in Bitcoin’s privacy technology. According to him, privacy stands as a core value of Bitcoin.

The US DOJ has arrested pioneers in #Bitcoin privacy technology.

Privacy stands as a core value of Bitcoin. Mixing itself is not a crime. Even crypto exchanges use mixing to safeguard user privacy.

It's like punishing the inventor of the knife instead of the one who uses it. https://t.co/S7qcqtqCJh

— Ki Young Ju (@ki_young_ju) April 25, 2024

The CEO argues that mixing in crypto is legal, and highlights that crypto exchanges use this capability to safeguard their consumers’ privacy. He likened the founders’ arrest to punishing the inventor of the knife instead of the one who uses it.

The founders’ arrest has reverberated within the crypto community with many opposing such a move. One user even commented that the US government is clearly against Bitcoin privacy. According to the announcement of the founders’ arrest, the pair were accused of facilitating over $100 million in money laundering transactions from illegal dark web markets.

The release claims Samourai facilitated approximately $2 billion in “unlawful transactions” between 2015 to date. This amount was determined by converting the value of Bitcoin laundered through the platform to US dollars.

Furthermore, Rodriguez and Hill were also accused of collecting about $4.5 million in transaction fees for their mixing services. The indictment revealed different features had different pool fees.

According to the press statement, Rodriguez was taken into custody on Wednesday morning and is scheduled to appear in court in Pennsylvania later today or tomorrow.  In a similar move, Hill was detained in Portugal on Wednesday morning and anticipated to be extradited to the United States.

At the moment, a seizure warrant has been filed for the Samourai mobile application on the Google Play Store, and the Samourai Wallet website which was hosted in Iceland has also been seized.

Benefits of Crypto Mixing

According to reports, the primary reason for using a Bitcoin mixer is to protect users’ privacy. Notably, all transactions made with cryptocurrencies are public. Thus, crypto mixing enables a skilled user to track the funds back to the original owner if not adequately anonymized.

Users may protect their assets and stay anonymous by using a crypto-mixing service. This is particularly crucial if you want to keep your cryptocurrency transactions private and you’re utilizing them for legitimate purchases.

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CryptoQuant CEO Disagrees with DOJ’s Intent on Samourai Wallet Charge

Coinspeaker CoinGecko 2024 Q1 Crypto Industry Report, Polkadot Spotlighted

Coingecko recently hosted the comprehensive virtual meeting in which key speakers shared their insights on the trends in the digital currency ecosystem in the first quarter. The meeting also beamed its spotlight on the Polkadot ecosystem as it pursues its major evolutionary trend.

Crypto Market Q1 Spotlight

Recanting the biggest events in the market in Q1, Coingecko’s Head of Research Zhong Yang Chan highlighted the emergence of spot Bitcoin Exchange Traded Funds (ETF) as the major boost for the industry in January.

With the massive Assets Under Management (AUM) from likes of Grayscale Bitcoin Trust (GBTC) and iShares Bitcoin Trust (IBIT) from BlackRock Inc (NYSE: BLK), the ETF market has dragged massive institutional capital into the market. This has in turn helped drive the price of Bitcoin to a new All-Time High (ATH) above $73,000 in March.

Chan also focused on the Ethereum restaking trends that has taken the centerstage. In this sector, Ether.Fi remains the dominant player with EigenLayer also gaining traction as seen in recent times.

This is a developing story, please check back for more updates

 

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CoinGecko 2024 Q1 Crypto Industry Report, Polkadot Spotlighted

Coinspeaker KPMG: 39% of Canada’s Institutional Investors Have Exposure to Crypto

Financial consulting giant KPMG recently conducted a survey stating that nearly 40% of Canada’s institutional investors have sought exposure to cryptocurrencies. As per the joint survey conducted by KPMG Canada and CAASA, Canadian institutions had direct or indirect exposure to cryptocurrencies in 2023, up by 31% from 2021.

“In our 2021 survey, crypto assets experienced robust growth,” notes Kunal Bhasin, a partner at KPMG in Canada’s Digital Assets practice.

Reflecting on subsequent developments, Bhasin acknowledges the turbulence of the following year in 2022, marked by significant collapses of crypto firms and a surge in fraudulent activities. Despite these challenges, he suggests that these events ultimately had a “cleansing effect” on the crypto industry.

“Our survey findings suggest crypto assets are increasingly seen as an investible alternative asset class among such institutional investors and financial services organizations in Canada,” said Bhasin.

Also, there’s a substantial surge in institutional investors holding cryptocurrencies directly at 75%, up from 29% three years ago in 2021. However, their exposure to crypto via the exchange-traded funds has remained unchanged. Since 2021, the exposure of institutional investors to crypto through ETFs and other regulated products has been constant at 50%.

Furthermore, the KPMG survey mentions a substantial increase in Canadian institutional investors, having access to crypto holdings through public equities and derivatives. Kareem Sadek from KPMG’s Digital Assets practice said that the major pivotal moment was the US SEC approving spot Bitcoin ETFs earlier this year.

Canada’s Rising Adoption of Crypto

In a recent interview with Nasdaq, Mark Greenberg, Managing Director for Canada at Kraken, expressed his belief in the ongoing growth and mainstream appeal of cryptocurrency adoption among Canadians.

“We are witnessing growing adoption across all segments of the Canadian market, including individuals, institutions, and various demographics,” Greenberg stated confidently.

He remained optimistic about the future trajectory of crypto adoption in Canada, anticipating further increases in the years ahead. “I am bullish on cryptocurrencies globally and even more so in Canada where we have a high proportion of people underserved by the existing traditional financial system.”

Some top market analysts also expect institutional adoption of crypto to rise globally this year in 2024. This would help bring more liquidity to the market, improving market stability and reducing volatility. Additionally, the regulated products would also attract pension funds and other traditional players, who would be otherwise reluctant, to seek exposure to crypto.

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KPMG: 39% of Canada’s Institutional Investors Have Exposure to Crypto

Coinspeaker Baby Doge Coin (BABYDOGE) Price Surges 15% after New DAO Proposal to Eliminate Transaction Tax

Baby Doge Coin (BABYDOGE), a fast-growing meme coin based on the BNB Chain and Ethereum network, has made several headlines amid a bearish crypto outlook. The small-cap meme coin, which thrived from a tweet by tech billionaire Elon Musk, rallied as much as 16 percent in the past 24 hours to trade around $0.000000002 on Thursday during the mid-London session.

The notable spike of BABYDOGE price against the US dollar is directly attributed to the new DAO proposal to eliminate transaction taxes. Remarkably, the BABYDOGE community overwhelmingly supported the DAO proposal with over 99 percent.

Furthermore, BABYDOGE meme coin has been charging crypto traders 10 percent as transaction fees to enable the monthly burns in addition to funding its ecosystem. The elimination of transaction tax will enable BABYDOGE to compete with other top-tier meme coins in the confirmed crypto bull cycle.

“Lowering fees to 0% may make Baby Doge more accessible to a wider user base. A 0% fee may encourage more frequent usage and transactions. A 0% fee structure positions Baby Doge as a more attractive option compared to other memes with higher transaction costs, potentially drawing in new user adoption and use cases,” the DAO proposal noted.

What Next for Baby Doge Coin

If the new DAO proposal goes through, which is the most likely outcome, BABYDOGE will not have its monthly burns. As of this report, the BABYDOGE burn address has around 51.5 percent of the total circulating supply, worth approximately $426 million.

“After testing the lowering of the fees on the Ethereum chain, we have seen demand for the same reduced fees on the BNB chain. There will not be burns each month,” the proposal further added.

Meanwhile, the team announced it will be accessing the token vesting account with around 14.1 percent supply of BABYDOGE, worth approximately $117 million. The DAO proposal noted that the funds will be used for new team members to grow the ecosystem.

Nonetheless, the BABYDOGE team noted that the proposal will initiate a new era for the meme coin, which entails a community-driven approach. Furthermore, each meme coin project aims to achieve as much decentralization as possible as Dogecoin (DOGE) or Bitcoin(BTC).

Market Picture

The small-cap meme coin, with a fully diluted valuation of about $881 million and a daily average traded volume of around $17 million, is on the cusp of retesting its all-time high (ATH). Notably, the BABYDOGE price recently broke out of a falling macro logarithmic trend and is currently retesting it.

In case the new DAO proposal goes through, the BABYDOGE project will be in a better position to compete with other meme coins like Floki (FLOKI) and Pepe (PEPE).

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Baby Doge Coin (BABYDOGE) Price Surges 15% after New DAO Proposal to Eliminate Transaction Tax

Coinspeaker Changpeng Zhao’s Defense Team Pushes for Probation in Sentencing Hearing

The defense team representing Binance co-founder and former CEO Changpeng Zhao (CZ) has formally addressed the recent request from the US Department of Justice (DOJ) for a three-year jail sentence before the April 30 hearing.

According to a recent court filing at the US District Court for the Western District of Washington, the lawyers are advocating for probation instead of the 36-month prison sentence sought by the prosecutors. The defense cited Zhao’s status as a first-time and non-violent offender as a primary basis for leniency in sentencing, adding that CZ committed a crime with no intention of harming anyone.

CZ Defense Team Fights for Probation

The attorneys also pointed out several factors to support their case, including highlighting the nature and circumstances of the offense.

The defense said Zhao pleaded guilty only to anti-money laundering (AML) compliance failure, with no allegations of involvement in more serious financial crimes such as money laundering, fraud, theft, market manipulation, or other unlawful activities. They also touched upon CZ’s background and positive contributions to the crypto economy, painting him as a family-oriented individual.

Additionally, the defense said that Zhao has cooperated with law enforcement to combat crypto-related crimes and has been involved in charitable initiatives through Binance Charity and educational efforts, helping millions of people worldwide.

CZ May Face Harsher Prison Conditions

The attorneys also argue for probation based on legal precedent and the need to avoid sentencing disparities. They claim that CZ’s case is similar to that of BitMEX’s prosecution, where the defendants served probation instead of going to prison. Furthermore, the defense points out that non-citizen defendants like Zhao would face harsher conditions if imprisoned, making home confinement in a reputable US-based global security firm in the UAE a more appropriate option.

One significant point in Zhao’s favor is his extraordinary acceptance of responsibility. According to the court document, the Probation Office has recognized his conduct as “remarkable” and “exceptional”, citing his voluntary appearance to plead guilty, substantial financial penalties totaling over $4.3 billion, and stepping down from his roles at Binance.

The defense believes that these points could earn him probation instead of three years in prison, as the DOJ requested. However, the outcome will be seen next week.

CZ Apologies for His Offense

CZ has formally apologized to Judge Richard A. Jones, who oversees the case, for the lack of AML measures in Binance during his tenure as CEO. On April 24, Coinspeaker reported that the former Binance boss apologized and pledged never to falter or face the criminal justice system again.

The Chinese-born Canadian citizen has also received support from members of the crypto community, including family, friends, and colleagues, who have pleaded for reduced sentencing.

These well-wishers have sent numerous letters to the court pleading for probation rather than the proposed 36-month sentence for the Binance founder. Some industry executives, like BitMEX co-founder Arthur Hayes and HTX Justin Sun, believe that CZ may face unfair treatment as a non-citizen of the United States if the prosecutors deny the probation plea.

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Changpeng Zhao’s Defense Team Pushes for Probation in Sentencing Hearing

Coinspeaker EU’s Crackdown on Crypto Anonymity: Delicate Balance between Security and Privacy

The crypto industry has long prided itself on the privacy and anonymity afforded to its users, but a recent vote by the European Union parliament has set the stage for a shift in this space. In a move aimed at curbing illicit activities such as money laundering, the EU has decided to ban anonymity for digital assets and increase monitoring of users.

This decision is based on the growing concern over the potential misuse of cryptocurrencies for nefarious purposes. While the crypto community has celebrated the privacy within its decentralized systems, regulators argue that this anonymity has also facilitated illegal dealings, including money laundering and terrorist financing.

This bill comes at a time when money laundering is becoming rampant in the crypto industry. Recently, KuCoin, a crypto exchange platform, and two of its founders were charged with violating anti-money laundering laws by US federal prosecutors. Similarly, Changpeng Zhao, the founder and former CEO of Binance, faces sentencing next week after pleading guilty to breaking rules aimed at preventing money laundering in the United States.

Privacy vs Security: A Delicate Balance

The newly passed bill will compel crypto firms to request more personal data from users, monitor their transactions, and enforce stronger oversight of non-custodial wallets. Additionally, it will prohibit tools that bolster anonymity, such as crypto mixers and privacy tokens.

This move comes after nearly three years of negotiations, closely watched by members of the crypto industry. The vote coincides with a broader push to restrict privacy features that many decentralized finance (DeFi) enthusiasts find appealing.

Marina Markezic, the executive director of the European Crypto Initiative, expressed concern over the potential loss of privacy and transaction ease that the industry has become accustomed to. She stated:

“The biggest loss will be the loss of privacy and relative transaction ease we’ve gotten accustomed to in the industry.”

Crypto Firms Face Tighter Regulations

The new rules require crypto firms to focus more on non-custodial wallets, which let people have complete control and ownership of their funds without intermediaries. They must check users, track transactions, and collect details about senders and receivers. This rule goes against the industry’s practice of keeping crypto assets in secure non-custodial wallets to safeguard users from vulnerabilities in centralized exchanges and custodians.

More so, the bill also prohibits tools that enable anonymity, including certain tokens like Monero or Zcash, and crypto mixing services that obscure transaction history. Crypto firms now have to identify and verify user identities, monitor transactions, and request more information about senders and receivers.

A new EU agency will be responsible for overseeing laws against money laundering and terrorism financing starting in 2026. However, before that, EU finance ministers need to approve the text as law.

While the regulations aim to curb illegal activities, they also pose challenges for the crypto industry. This new rule will offer certainty and predictability, which could make the industry more appealing to investors and users without prior crypto experience. However, striking the right balance between security and privacy remains a delicate task.

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EU’s Crackdown on Crypto Anonymity: Delicate Balance between Security and Privacy

Coinspeaker Top Democrat Maxine Waters Hints at Almost Ready Stablecoin Bill

US House Representative Maxine Waters (D-California) has claimed that the finalized version of the long-awaited stablecoin bill is just around the corner. The top Democrat on the House Financial Services Committee shared the update in a recent interview with Bloomberg. Waters said in a part statement:

“We are on our way to getting a stablecoin bill in the short run.”

The latest development comes after Waters earlier called a previous version of the bill “deeply problematic and bad for America”. However, from the look of things, it may seem that reasonable progress has been made on the bill since then.

Speaking about why the bill has been tarried for so long, Rep. Waters claimed that the delay has always been about investor protection. She added that it is the duty of legislators to ensure that issuers have “those assets to back up stablecoins”.

Stablecoin Law May Be in Effect Before Elections

The latest commentaries from Representative Maxine Waters have reignited hopes that a new stablecoin law could be in effect soon. That is even before this year’s general elections in the United States. The reason is that, according to Waters, all hands are on deck to get the job done. She mentioned that the US Federal Reserve, the Treasury Department, and the White House have contributed immensely toward the bill.

It might be worth noting that at the beginning of the year, a stablecoin law was widely considered unachievable in 2024. However, efforts have now gained massive momentum since the Senate and the House got on the matter some weeks ago.

As Coinspeaker reported earlier, Waters and House Financial Services Committee Chairman Patrick McHenry (R-N.C.) recently had a meeting with Senate Majority Leader Chuck Schumer regarding this bill. According to inside sources, the meeting was aimed at getting the stablecoin bill moving by any means necessary. That is, even if it means tying it to a must-pass Federal Aviation Administration reauthorization that is due in May.

Also, US Senators Cynthia Lummis and Kirsten Gillibrand recently floated a new stablecoin bill. The bill proposes an outright ban on algorithmic stablecoins while also asking that the required tokens of issuers be fully backed by reserve assets.

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Top Democrat Maxine Waters Hints at Almost Ready Stablecoin Bill

Coinspeaker South Korean Upbit Becomes Top 5 Exchange by Volume

Upbit, a South Korean crypto exchange based in Seoul’s ritzy Gangnam district, has climbed to become the top five global exchanges by volume. South Korea has benefitted from the recent crypto bull run that swept across the global market, with rumors of the Korean won supplanting the US dollar as the most popular currency for swapping Bitcoin and other digital assets reaching high intensity.

Upbit Dominates the Korean Market Volume

According to a Bloomberg report, over 80% of Korean trading volumes are currently being handled on Upbit. This is a huge milestone for Upbit as no other exchange has been able to attain such dominance in a major crypto hub. Additionally, Upbit is now in close competition with Coinbase Global Inc (NASDAQ: COIN), a leading crypto exchange in the US.

Last year, Upbit’s customers accounted for nearly a fifth of total deposits from its major banking partners. This move ignited a sharp rebuke from a South Korean lawmaker. However, new laws have been passed following the arrest of Do Kwon, a South Korean businessman whose stablecoin TerraUSD, collapsed in 2022.

Nam HyeonJoon, a spokesperson for Bithumb, Korea’s second-largest trading platform stated:

“Under the new regulatory regime, crypto exchanges will have to bulk up reserves, get investor-protection insurance, and step up monitoring for suspicious transactions, requiring both capital and manpower.”

Launched in 2017, Upbit is controlled by fintech firm Dunamu Inc. According to CCData, the exchange now accounts for almost 5% of overall crypto trading volume globally, up from 1.4% in January 2021.

Upbit became the first exchange registered with the Financial Intelligence Unit in 2021. This was made possible as a result of its partnership with K-Bank, an online lender. It is worth mentioning that before registering with Korean regulators, exchanges need to have banking partners.

A local media report from last year reveals that Upbit accounted for 18% of total deposits in K-Bank, drawing criticism from lawmaker Kim Heegon, who described the bank as “Upbit’s private safe deposit box” in October.

In an interview, a K-Bank representative stated that deposits made on the exchange are not utilized for lending purposes and can be withdrawn at any moment. He added that Upbit only makes up a “very small part” of the bank’s total earnings.

South Korea to Implement Strict Regulations

Beginning in May, regulators in South Korea are set to introduce stricter rules for token listings on centralized crypto exchanges (CEXs). Crypto exchanges within and outside the nation will have to abide by the rules once they are put into effect. This move is part of South Korea’s efforts to enhance transparency and security within its crypto market.

As Coinspeaker earlier reported, under the new guidelines, regulators may order exchanges to remove specific cryptocurrencies from their platforms if they fail to offer complete information on the digital asset.

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South Korean Upbit Becomes Top 5 Exchange by Volume

Coinspeaker Bitcoin’s Price Drop to $64,000 Leads to $210 Million Liquidations in One Day

The crypto market has once again been rattled by volatility as Bitcoin (BTC) price slipped to $64,000, marking a downturn following its rebound from the recent geopolitical tensions in the Middle East.

Despite maintaining a strong position above $66,000 for several days and briefly flirting with the $67,000 mark post-halving on April 20, 2024, Bitcoin faced resistance, leading to a subsequent decline. According to CoinGlass data, this downturn has brought increased pressure on bullish investors and over-leveraged traders with long positions, as daily liquidations surged to over $210 million.

BTC Drop Leads to Massive Liquidations

Over the past 24 hours, approximately 91,704 leveraged positions have liquidated in the crypto market. Long traders took the hardest hit with $178 million liquidated across several layer-1 blockchains, including Ethereum (Ether) and Solana (SOL).

Short traders also faced losses, with more than $32 million liquidated within the same period, according to CoinGlass data. Liquidations on the OKX crypto exchange accounted for the largest share, amounting to a total of $5.66 million.

Within the last hour alone, both long and short traders collectively incurred losses of $132.28 million. Currently, the entire crypto market capitalization stands at $2.37 trillion, reflecting a 3.97% decrease over the past 24 hours.

Broader Crypto Market Performance

Bitcoin’s decline to $64,000 had a widespread impact on the overall market, particularly affecting altcoins, which experienced larger drops than BTC.

In the last 24 hours, Solana (SOL) plummeted by over 7%, currently trading around $146 per token. Similarly, other altcoins such as Toncoin (TON), Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), and Bitcoin Cash (BCH) also saw significant declines of 7%, 6.35%, 9.91%, 7.5%, and 6.07%, respectively.

Even memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) were not spared, facing drops of 7.20% and 8.38%, respectively, during this period.

Bitcoin ETF Traders Seek Safety Amid Crypto Turmoil

With the bloodbath in the crypto market, Bitcoin ETF traders are scampering for safety and selling off their bags.  According to data from SoSoValue, Grayscale’s ETF GBTC faced a significant net outflow of $130 million within a single day.

Despite the massive outflow from Grayscale, Fidelity’s ETF FBTC recorded a massive inflow of $5.61 million in the same period. This figure represents the highest inflow among Bitcoin spot ETFs in the United States.

Similarly, ETFs like ARKB by Ark Invest and 21Shares also saw notable net inflows of $4.17 million within a day.

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Bitcoin’s Price Drop to $64,000 Leads to $210 Million Liquidations in One Day

Coinspeaker Man Who Flashed ‘Buy Bitcoin’ at 2017 Congressional Hearing Sells Sign for $1M

Nearly 7 years later, Christian Langalis, the man who wrote “Buy Bitcoin” on a yellow notepad and flashed it on live TV, has now sold the sign at an online auction.

Langalis was a 22-year-old intern during a 2017 Congressional hearing of the then-United States Federal Reserve chair Janet Yellen. However, he soon became a sensation, especially among a community of crypto developers and investors, after the act that saw him immediately escorted off the premises at the time.

According to the Bitcoin auction platform Scarce City, the sign has now sold to the highest bidder for 16 Bitcoin, around $1.027 million.

The buyer, identified as “Justin” aka “Squirrekkywrath”, went home with the prize after an auction that lasted for a week. The auction ended a few minutes after 11:00 pm. UTC on April 24.

Congratulations to Justin, A.K.A. Squirrekkywrath, winner of the #BitcoinSignGuy auction for 16 #BTC. 🏆@tpacchia Get this man a Whale! 🐳 pic.twitter.com/DPpczcEzkJ

— PUBKEY (@PubKey_NYC) April 24, 2024

Meanwhile, Scarce City is set to take a 15% cut for facilitating the sale. This means that Langalis will go home with 13.6 BTC (approximately $874,000) or thereabout.

This is not the first time Langalis would be cashing out from the yellow pad sign. In 2019, he created and sold at least 21 replicas of that sign at an average price of 0.8 BTC. By current prices, each of those replicas is now worth $51,420.

At the time, he sold to venture firms, including Paradigm, Blockchain Capital, and Castle Island Ventures. Crypto think-tank Coin Center was also one of the buyers.

The Iconic Buy Bitcoin Sign

According to the listing details, the item is an “Ink Drawing on Legal Pad” weighing half a pound. The legal pad also contains Langalis’s notes from the hearing of that fateful day. The description read:

“The page with the sign drawing was removed from the notepad shortly after the hearing. It has since been reattached with clear archival wire.”

With the proceeds from his latest sale, however, Langalis plans to fund his startup, Tirrel Corp. The project is supposedly working on a Bitcoin Lightning network wallet and implementation.

Bitcoin’s price has surged from around $2,300 in 2017 to a record high of almost $74,000 in March 2024. That is as institutional investors such as Fidelity and BlackRock joined the fray on championing the digital asset.

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Man Who Flashed ‘Buy Bitcoin’ at 2017 Congressional Hearing Sells Sign for $1M

Coinspeaker Binance Founder Changpeng Zhao Apologizes in Letter to Presiding Judge Ahead of Upcoming Sentencing

As the sentencing for Binance co-founder Changpeng Zhao (CZ) approaches, the former crypto leader has written an apology letter to the presiding Judge from the Western District of Washington, Richard A. Jones. According to the apology letter, CZ noted that he has accepted full responsibility for the poor decisions during his tenure at Binance.

“There is no excuse for my failure to establish the necessary compliance controls at Binance,” the apology letter said.

CZ further assured the court that this would be his only encounter with the criminal justice system. As Coinspeaker explained, the United States is seeking a harsher punishment for CZ, which entails a three-year sentence in addition to a $50 million penalty. Notably, Zhao pleaded guilty under an agreement with the United States government, which brushed off his right to appeal any sentence of more than 18 months.

Binance Team Supports CZ

In addition to the apology letter, there were 161 other letters from CZ’s family and friends seeking leniency from the judge.

According to He Yi, a Binance co-founder, CZ was bound to encounter such blind spots as he had never led such a huge company. Furthermore, the United States Congress has not yet passed clear crypto regulatory laws.

“If the cryptocurrency industry is compared to the Wild West, then CZ is the guardian of this wilderness. Even the U.S. has not decided how to regulate and define this industry,” Yi noted.

Another letter of support was written by Tigran Gambaryan, Binance’s Head of Financial Crime Compliance and a former special agent in the US Department of Treasury, who is currently detained in Nigeria.

“While acknowledging CZ’s prior missteps, I can attest to his integrity, business insight, and philanthropic actions have had a ripple effect, influencing not only Binance’s corporate philosophy but also positively impacting lives globally,” Gambaryan wrote.

Other support letters came from key members of the global political class including members of the ruling family in the United Arab Emirates. Max S. Baucus, former US Ambassador to China, Professor Jeremy R. Cooperstock, McGill University, Associate Professor Ronghui Gu, Columbia University, and Morgan Stanley Managing Director Sean Yang also wrote a supportive letter to the Judge.

Market Picture

The upcoming sentencing of CZ will mark a new era of cryptocurrency regulations around the world. Moreover, the cryptocurrency industry has grown to over $2 trillion valuation and attracted major hedge funds led by BlackRock Inc (NYSE: BLK).

With CZ having ceded power over Binance, the upcoming sentencing will have minimal impact on the BNB ecosystem. As of this writing, BNB price traded around $601, up approximately 14 percent in the past seven days.

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Binance Founder Changpeng Zhao Apologizes in Letter to Presiding Judge Ahead of Upcoming Sentencing

Coinspeaker Figment Soars with Record-Breaking Growth in Q1 2024 and Expanded Staking Services

Figment, a crypto staking firm, has announced its achievement in the first quarter (Q1) of 2024. The company revealed that with the launch of its Ethereum and Solana staking Exchange Traded Products (ETPs), it experienced a record year-on-year growth, managing over $15 billion in staking assets for more than 500 institutional clients. This huge five-fold increase compared to the same period in 2023 indicates the firm’s rapid expansion and the growing trust and confidence that its customers have in its services.

Exponential Growth in Staking Assets

Based on the company’s release reported by The Block, it could be mathematically proven that Figment’s staking asset volume stood at $3 billion during the same period last year. However, the significant spike in asset volume showcases the growth the company has been able to amass, driven by the increasing trust and confidence of its customers.

Lorien Gabel, Figment’s CEO and Co-founder, echoed the company’s commitment to its customers, emphasizing that they recognize the priorities of their clients, who are increasingly seeking trust, risk-adjusted rewards, and assurance in navigating the complexities of the blockchain landscape. Gabel further stated that Figment’s foundation is built on these principles, and the company takes pride in guiding its customers through uncertain regulatory environments with transparency, security, and compliance as top priorities.

European Expansion and Strategic Partnerships

Figment’s growth is not limited to staking volume alone; the company is also extending its reach by strengthening its presence in the European continent through the establishment of Figment Europe Ltd. This strategic move has proven fruitful, it has partnered with Apex Group to launch Ethereum and Solana staking ETPs on the Six Swiss Exchange.

These ETPs, named Figment Ethereum Plus Staking Rewards (ETHF) and Figment Solana Plus Staking Rewards (SOLF), provide investors with exposure to the prices of Ethereum and Solana while earning staking rewards, including maximum extractable value (MEV). The ETPs are fully backed by cryptocurrencies and aim to generate additional rewards through staking, providing investors with an easy way to access these rewards without the complexities of individual participation. The CEO revealed that the choice for ETH and SOL is based on the popular demand by the company’s largest customers.

Ethereum and Solana are among the major cryptocurrencies that have been favored by people in recent times. Ethereum is widely recognized as a leading platform for decentralized applications (DApps) and smart contracts, while Solana is known for its high throughput and low transaction fees, making it suitable for a wide range of applications, particularly in the decentralized finance (DeFi) space. The features could be catalysts for Figment customers’ preference for them over other options.

Figment’s ambitions do not stop there; the company has revealed plans to accelerate its growth by focusing on a new product offering called Figment Vaults. These innovations make it easier for institutions to stake ether. Clients can stake any amount of ether privately, without pooling or mixing assets. They can also choose where their validators are located, giving institutional investors more control and customization options.

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Figment Soars with Record-Breaking Growth in Q1 2024 and Expanded Staking Services

Coinspeaker Ripple IPO: David Schwartz Makes Key Expose on His Stock Option

David Schwartz, the Chief Technology Officer (CTO) at Ripple Labs Inc has shared important details about his stock options amid IPO conversations. His opinion has sparked curiosity about Ripple’s plans for an Initial Public Offering (IPO).

David Schwartz Stock Option

Schwartz revealed that he is uncomfortable with the level of risk associated with his current stock holdings and hinted at potential future actions to manage this risk. He mentioned that he might sell some of his Ripple stock to purchase more, pointing to expiring options and important tax implications.

“Funny story: I actually may have to sell some more Ripple stock soon in order to buy more Ripple stock. I have some options to buy Ripple stock that I’ve had for so long, they’re close to expiring. But exercising them has a huge tax cost,” says Schwartz.

The CTO’s comments arose amid a heated discussion in the online community where enthusiasts asked him to clarify his position on Ripple vs XRP shares. The discussion focused on the intricacies of stock ownership, with crypto enthusiasts speculating on Schwartz’s potential motives and considerations.

Funny story: I actually may have to sell some more Ripple stock soon in order to buy more Ripple stock. I have some options to buy Ripple stock that I've had for so long, they're close to expiring. But exercising them has a huge tax cost.

— David "JoelKatz" Schwartz (@JoelKatz) April 23, 2024

One community member even opined that it was easier to sell Ripple shares at any time and in exchange for XRP. In response to questions concerning his preference, Schwartz emphasized the difference in liquidity between XRP and equities of privately held companies, highlighting the better liquidity of the former.

Ripple IPO Ambition Growing

Ripple CEO Brad Garlinghouse has been vocal about his company’s plans for a long time. In January, Garlinghouse revealed in an interview that Ripple was exploring an IPO outside the United States. Although the CEO said the company has no time frame yet for the planned IPO, he emphasized that the move follows perceived hostility from the US Securities and Exchange Commission (SEC).

The regulator sued Ripple and two of its executives, including the CEO, in 2020, years after the blockchain payment firm conducted its Initial Coin Offering (ICO), citing unregistered securities and violations of federal laws.

In 2023, the court ruled in favor of Ripple and declared its associated XRP, to be non-security when traded on exchanges. The lawsuit is almost over right now. The SEC is expected to file its response brief under seal next month, after which there will be a meeting to address redactions. Subsequently, a redacted version of the response brief and any non-confidential supporting exhibits will be submitted publicly.

With talks with investors continuing and Ripple valued at an astounding $11 billion, expectations for the company’s future IPO plans are growing. However, some experts think that Ripple’s IPO will put an end to the inherently speculative nature of XRP. Some claim investors of XRP will be upset, thus leading to low investment in the cryptocurrency.

At the time of writing, XRP is trading at $0.5344, with market capitalization and trading volume standing at $29.4 billion and $1.3 billion respectively.

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Ripple IPO: David Schwartz Makes Key Expose on His Stock Option

Coinspeaker Will Ethereum Be Classified as Security? Crypto Analyst Offers Perspective on Raging Controversy

The cryptocurrency space has been in a debate concerning the approval of Ethereum as a security by the US Securities and Exchange Commission (SEC). This discussion has been ongoing for a considerable period, with various analysts and industry experts offering diverse perspectives on the matter’s outcome.

New York Attorney General Fuels the Debate

Recently, a crypto analyst and legal adviser Metalaw weighed in on the matter, making reference to the action taken by New York Attorney General (NYAG) Letitia James approximately a year ago. In this past move, Attorney General James made headlines by publicly asserting that Ethereum, one of the leading cryptocurrencies in the market, is a security.

Will @GaryGensler declare $ETH a security?

Maybe.

Don't forget, NYAG Letitia James already did this a year ago and issued a press release trumpeting the move.

"This action is one of the first times a regulator is claiming in court that ETH, one of the largest cryptocurrencies…

— MetaLawMan (@MetaLawMan) April 23, 2024

This assertion was made during a legal battle against the cryptocurrency exchange KuCoin, where Ethereum was likened to LUNA and UST. James’ argument hinges on the notion that ETH  is a speculative asset that relies on the efforts of third-party developers to generate profits for its holders, thereby necessitating registration as a security before being sold.

The debate on whether Ethereum should be classified as a security or not holds significant implications for the potential approval of an Ethereum ETF, as securities are subject to stringent regulatory oversight and registration requirements. This stance has garnered attention, as SEC Chairman Gary Gensler has refused to deny the possibility of Ethereum being classified as a security, stating that it depends on the facts and the laws of the United States.

Diverging Views from Industry Experts

While the approval of Ethereum as a security could lead to an ETH ETF approval, it has generated excitement among traders and investors who anticipate a potential price surge akin to the one witnessed after the approval of the Bitcoin ETF. However, issuers of the ETH ETF have expressed skepticism about a positive outcome.

VanEck CEO Jan van Eck has indicated that the approval is likely to be rejected, drawing parallels with the lengthy process involved in the approval of Bitcoin ETFs. He stated that regulators typically provide comments on applications, and this process took weeks before the Bitcoin ETFs were approved, but currently, no such signs are evident for Ethereum.

Furthermore, Eric Balchunas, a senior ETF analyst at Bloomberg, has estimated the odds of spot ether ETFs being approved in May at a mere 35%. While acknowledging that there are reasons for approval, he noted that the signs and sources that previously indicated optimism for the Bitcoin spot ETF approval are lacking in Ethereum’s case.

As the debate on whether Ethereum is a security or not gets intense, the cryptocurrency community stays hopeful, eagerly awaiting a decision that could push the price of Ethereum even higher. Traders and investors see the approval as a powerful catalyst that might spark a bullish rally. This is supported by observations of large wallet holders purchasing more ETH, indicating strong confidence in its future.

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Will Ethereum Be Classified as Security? Crypto Analyst Offers Perspective on Raging Controversy

Coinspeaker Stablecoin Adoption Sees 15% Surge as Number of Holders Inches Close to 100M

Stablecoins are fast growing in popularity, and the result is now evident in the number of addresses that hold them. According to the data from rwa.xyz, such addresses have climbed 15% this year alone, soaring to a record high of over 93.6 million.

These digital assets, which maintain a 1:1 peg to external references like the US dollar, can be classified into three main types. They are fiat-backed, crypto-backed, and algorithmic stablecoins.

Of all stablecoins, though, Tether (USDT) is unquestionably the biggest in terms of the number of holders. About 80% of all stablecoin addresses hold USDT, then closely followed by USDC and BUSD. As of this publication, there are 35 stablecoins in circulation with a collective market capitalization of $157 billion. Of that lot, Tether USDT boasts a market cap of $114.07 billion.

As in the number of addresses that hold stablecoin, the number of addresses actively transferring stablecoins has also surged. March alone saw over 26 million active addresses, a record amount that signaled significant retail investor participation. These transactions took place primarily on TRON and Binance Smart Chain (BSC).

Meanwhile, despite their dominance in active address counts, TRON and BSC pale in comparison to Ethereum and Solana in terms of transfer volumes.

Growing Use Cases

It might be worth noting that the stablecoin holding addresses have been on a steady rise for months. Even during the 2022 crypto bear market and seemingly against all odds, the tally continued on the uptrend.

According to analysts, that growth could be linked to increased investor interest in assets that promise more stability. Especially considering the rapid interest rate hikes that the Federal Reserve was implementing at the time.

Besides, a 2022 Federal Reserve report also noted that there were rising use cases for stablecoins. These include and are not limited to cross-border payments, internal fund transfers, and liquidity management within firms.

Furthermore, the versatile digital assets can serve an array of purposes depending on the geographical location. For instance, a country like Zimbabwe struggling with inflation would utilize stablecoins for payments, remittances, and store of value assets. More stable economies, on the other hand, may use stablecoins to facilitate crypto purchases.

Rating agency S&P predicts that regulatory clarity will encourage banks to adopt stablecoins. As Coinspeaker also recently reported, US Senators Cynthia Lummis and Kirsten Gillibrand introduced a comprehensive 179-page bill aimed at regulating stablecoins.

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Stablecoin Adoption Sees 15% Surge as Number of Holders Inches Close to 100M

Coinspeaker Nigeria’s Central Bank Issues Denial Regarding Alleged Freeze on Crypto Accounts

The Ce­ntral Bank of Nigeria (CBN) rejecte­d claims it instructed banks and financial companies to identify crypto exchange users. Re­ports stated accounts engaging in such transactions were put on Post No Debit (PND) for six-month re­strictions. However, the CBN de­nied issuing directives re­quiring identification of crypto traders and temporary account fre­ezes. 

The situation be­came confusion when the ce­ntral bank initially refuted the re­port on X, only to remove the de­nial. Later, they asse­rted that the allegations we­re indeed false, leading to uncertainty regarding the­ true circumstances.

This information does not originate from the Central Bank of Nigeria. For authentic updates, please visit the official website of the Bank at https://t.co/R9TQU0eRpp. pic.twitter.com/LCoUvalMRy

— Central Bank of Nigeria (@cenbank) April 24, 2024

In Decembe­r 2023, the financial institution allowed banks to facilitate transactions for lice­nsed crypto exchanges, lifting a two-ye­ar prohibition. However, this rece­nt reversal shows growing concerns within the Nigerian gove­rnment regarding cryptocurrency’s pote­ntial impact on economic stability within the nation.

Binance Faces Scrutiny amid Nigeria’s Naira Crisis

Nigeria has been struggling with substantial devaluations of its nationwide curre­ncy, the naira. Inflation escalated to an alarming 29.9% by April 2024. See­king stability, authorities scrutinize cryptocurrency platforms, vie­wing them as potential destabilize­rs amidst this financial turmoil.

Binance, the­ largest crypto exchange, has been a focal point of the CBN’s scrutiny. In 2023, the bank raised concerns about $26 billion worth of suspicious financial transactions passing through Binance­ Nigeria. These transactions alle­gedly involved unknown sources and use­rs, prompting investigations.  

Adding fuel to the fire, Binance executive Tigran Gambaryan currently faces alle­gations of money laundering in Nigeria, according to officials regarding regulations. Me­anwhile, another executive, Nadeem Anjarwalla, who accompanie­d Gambaryan, evaded custody and currently faces e­xtradition proceedings from Kenya. 

The CBN pre­viously restricted access to we­bsites facilitating crypto trading, allowing users the unofficial exchange­ rates for the Nigerian Naira. This move highlights their concerns regarding unregulated channels pote­ntially influencing the currency’s valuation. 

For the Nige­rian crypto community, clear regulations are e­ssential for a secure digital asse­t landscape. Establishing guideline­s promotes legitimacy. Furthermore, imple­menting measures to protect users’ interests is vital to e­nsure a fair and balanced approach towards cryptocurrency adoption in Nige­ria.

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Nigeria’s Central Bank Issues Denial Regarding Alleged Freeze on Crypto Accounts