Mon May 6, 2024 ▪ 7 min read ▪ by Luc Jose A.

Amid groundbreaking announcements, technological advancements, and regulatory turbulence, the crypto ecosystem continues to prove that it is a land of boundless innovation and a field of regulatory and economic battles. Here is a summary of the most notable news from the past week around Bitcoin, Ethereum, Binance, Solana, etc.

MicroStrategy perseveres through it all!

MicroStrategy has continued to increase its Bitcoin holdings, reaching an impressive total of 214,400 BTC with a recent acquisition of 122 Bitcoins for $7.8 million. Despite a net loss of US$53 million in the first quarter of 2024 and a 5.5% decline in revenue compared to the previous year, the company maintains its massive investment strategy in crypto. These market movements occurred in a context of greater volatility, affecting the value of the company’s digital assets.

This bold strategy, although risky given the volatility of the crypto market, is a bet on Bitcoin’s long-term profitability. However, this approach led to significant financial losses and prevented MicroStrategy from joining the S&P 500, a blow to the company’s attractiveness to investors. The future of this strategy remains uncertain, but it demonstrates a firm commitment to Bitcoin’s potential.

Light sentence for Changpeng Zhao despite serious charges

Changpeng Zhao, the founder of Binance, was sentenced to just four months in prison and a $50 million fine on charges of fraud and compliance failures. This sentence is markedly more lenient than the three years requested by prosecutors and is perceived by some as a sign of leniency that minimizes the seriousness of the infractions and thus sets a worrying precedent for the industry.

Furthermore, this case highlights the challenges that regulators face in a constantly evolving sector and highlights the need for a balance between promoting innovation and protecting investors. Zhao’s case also illustrates the tension between strict regulation and the potential to push key players into more permissive jurisdictions.

Treasury Targets Crypto Fraudsters in France

In France, the gap between actual crypto usage and tax reporting is alarming. According to data from the European Central Bank, around 5 million French people are cryptocurrency users, but only 150,000 tax returns have been registered. This discovery led the Treasury to take drastic measures to combat tax fraud, partly inspired by the massive fraud already observed in other schemes such as MaPrimeRénov, where 400 million euros were embezzled.

To combat this scourge, the Treasury decided to deploy artificial intelligence for more effective and targeted surveillance. A new anti-fraud legislative framework is being prepared, including a specific component on cryptocurrencies. Artificial intelligence will be used to analyze blockchains and detect suspicious activity in real time, modeling fraud patterns to better track and unravel the most complex money laundering circuits. This technological approach promises constant vigilance and greater responsiveness to fraudulent schemes.

BNP Paribas invests in Bitcoin

May 1, 2024 is marked by a contradictory event in the world of Bitcoin ETFs, with record outflows of US$563.7 million in a single day. Despite this tumultuous context, BNP Paribas, the second largest European bank, took a significant step towards Bitcoin adoption by investing approximately $40,000 in BlackRock’s IBIT ETF. Although modest, this investment symbolizes the growing acceptance of Bitcoin by traditional European financial institutions.

This move by BNP Paribas could mark the beginning of broader institutional acceptance of Bitcoin as a viable asset class. Until now, this adoption has been made mainly by American asset managers and regional banks. BNP’s commitment could encourage other large banks and asset managers to invest in Bitcoin, thereby accelerating its acceptance by the general public and increasing flows into ETFs and other regulated vehicles.

RippleX revolutionizes XRP with a new feature

RippleX recently released an innovative feature, the XLS-68d specification, which aims to simplify and democratize transactions on the XRP Ledger (XRPL). This new specification allows platforms to manage fees and account reserves for their users, significantly reducing the complexity and financial barriers associated with using XRP. Users will benefit from what are called “sponsored transactions”, where they can include sponsor signatures in their transactions while maintaining full control of their accounts.

This advancement is seen as an important step towards mass adoption of XRP as it allows platforms to cover transaction costs for their users, making XRP accessible to a wider audience.

SEC Controversy: Accusations of Lying About Ethereum

Gary Gensler, chairman of the SEC, is accused of misleading the US Congress by classifying Ethereum as an unregistered security. These revelations, arising from internal SEC documents exposed during a lawsuit with the company Consensys, show that the agency considered ETH a security for more than a year. These actions contradict public statements from Gensler, who refused to clarify the SEC’s position on Ethereum during a hearing, avoiding direct questions on the matter.

Patrick McHenry, chairman of the House Financial Services Committee, has openly criticized Gensler for what he sees as fraud on Congress. This situation clarifies the challenges and contradictions in the SEC’s regulation of cryptocurrencies. The outcome of these regulatory debates could have significant implications for the legal status of Ethereum and other cryptocurrencies in the United States.

PayPal Expands Its Crypto Offerings with MoonPay

PayPal has significantly expanded its crypto offerings through a strategic partnership with MoonPay. This collaboration allows PayPal to offer more than 100 different digital assets to its users, thus simplifying the purchase of cryptocurrencies like a normal online purchase. Likewise, this partnership increases the compatibility of cryptographic transactions with traditional banking systems and reduces transaction failures, providing a smooth and secure user experience.

Finally, this integration ensures better protection of customers’ personal data, who no longer need to provide their information separately to MoonPay for transactions. With the addition of popular cryptocurrencies such as Solana, Tether and Dogecoin, PayPal expands the possibilities for its users in terms of investment and daily use of cryptocurrencies.

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Lucas José A.

Graduated in Science from Toulouse and holder of a blockchain certification consultant delivered by Alyra, I am back on the Cointribune adventure in 2019. Harness the potential of blockchain to transform various sectors of the economy, and gain price engagement to raise awareness and inform the big public about this constantly evolving ecosystem. My goal is to enable you to better understand blockchain and take advantage of the opportunities it offers. I strive now to provide an objective of current affairs analysis, to decrypt market trends, to convey the latest technological innovations and to measure in perspective the economic and social countries of this revolution in March.

DISCLAIMER

The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.

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