2023-10-16 16:09

In a significant development, Binance, the leading global cryptocurrency exchange, has announced it will stop accepting new UK users from Monday. This decision comes in response to the UK's Financial Promotions Regime for qualifying crypto assets, which allows overseas companies like Binance to promote their crypto businesses in the UK, provided they collaborate with a firm authorized by the Financial Conduct Authority (FCA). The FCA recently tightened its control over cryptoasset promotions and took regulatory action against rebuildingsociety.com (REBS) and similar firms on October 8, 2023. These firms were barred from approving financial promotions for entities like Binance. REBS had been working with Binance for this purpose, but due to the FCA's legal requirements, REBS is no longer able to approve financial promotions. As a result of these regulatory actions, Binance has had to withdraw its existing promotion approvals and is now actively seeking a new FCA-authorised entity to approve its financial promotions. During this transition period, Binance will impose some restrictions and withhold new products and services from UK users. Existing users who have completed their Investor Declaration and Appropriateness Test will maintain access to current services. The move comes as part of Binance's efforts to comply with the FCA's regulations and avoid potential penalties, including two years imprisonment or an unlimited fine for violators of the regime. This development signifies an escalation in worldwide regulatory scrutiny of the cryptocurrency industry, following high-profile collapses in the sector. Binance is working diligently with the FCA to reduce and prevent consumer harm from investing in high-risk crypto assets. https://www.investing.com/news/cryptocurrency-news/binance-halts-uk-registrations-amid-regulatory-scrutiny-93CH-3200099

2023-10-16 15:46

Copyrighted Image by: Reuters Prominent market figure Anthony Scaramucci has identified five pivotal catalysts that are driving the escalating appeal of Bitcoin (BTC). These factors are broadening Bitcoin's allure across diverse investor groups and are likely to contribute to its future valuation. A key driver is the potential approval of spot Exchange Traded Fund (ETF) products by the Securities and Exchange Commission (SEC). Major investment firms, such as BlackRock (NYSE:BLK), are preparing to list the first Bitcoin ETF product. This move is viewed as a critical entryway for institutional investors into crypto markets. Another significant catalyst is the forthcoming halving event. This event is set to reduce miners' rewards, which will deflate supply over time and potentially exert upward pressure on BTC's price. Additional influences include the Federal Reserve's monetary policy easing, growing investment interest in hard assets, and Bitcoin's role in model portfolios. Market analysts have made bullish predictions for BTC's future value. BitMEX's Arthur Hayes and Ark Invest's Cathie Wood have offered estimates ranging from $750,000 to above $1.5 million. These predictions highlight the optimistic outlook for Bitcoin in the investment community, as it continues to gain traction as a viable asset class. https://www.investing.com/news/cryptocurrency-news/bitcoins-appeal-escalates-on-five-key-catalysts-predicts-anthony-scaramucci-93CH-3200078

2023-10-16 15:12

Major cryptocurrency exchanges including Coinbase (NASDAQ:COIN) Global Inc. and Binance, are escalating their lending initiatives in an effort to offset declining revenues. The move comes despite warnings about potential risks to the ecosystem and increased leverage. These lending programs encompass margin loans, client borrowing through their platforms, and direct lending to clients. The strategies, however, seem to be struggling to invigorate stagnant trading volumes. For instance, Coinbase's Q3 spot trading volumes plunged over 50% from the previous year, while Binance experienced an estimated decline of 64%, according to data from CCData. According to InvestingPro's real-time metrics, Coinbase's market cap stands at $17.63 billion with a negative P/E ratio of -13.40. The company's revenue for the last twelve months (LTM2023.Q2) was $2580.23 million, a decline of -55.34% in growth. This data supports the notion of a struggling market, as the company's 3-month price total return for the year 2023 was -30.27%. In August, Coinbase began permitting institutional clients to lend out their crypto assets for yields. Around the same time, Bitget started lending fiat money or cryptocurrencies against crypto collateral. Other platforms such as Bitstamp have also joined the trend, partnering with Finland-based Tesseract to facilitate customer lending to borrowers like market makers. Despite the new initiatives, trading volumes remain significantly lower than last year's levels. Volumes are nearly 90% down since the collapse of Sam Bankman-Fried's FTX in November last year. The exchanges assert that they have learned from past mistakes. Some firms now only facilitate fully collateral-backed loans or accept stablecoins or major tokens like Bitcoin as backing. Collaborating with third-party loan providers like Tesseract allows platforms to sidestep direct balance-sheet risk. InvestingPro Tips suggest that Coinbase's stock price movements are quite volatile and the company has not been profitable over the last twelve months. The company's price has fallen significantly over the last three months, a trend that aligns with the declining earnings per share. For more insightful tips, visit InvestingPro where you can find six additional tips about Coinbase. The ramping up of lending services could also attract regulatory scrutiny from bodies such as the U.S. Securities and Exchange Commission. The question remains whether these lending ventures are worth the potential issues. https://www.investing.com/news/cryptocurrency-news/crypto-exchanges-boost-lending-services-amid-revenue-decline-93CH-3200062

2023-10-16 15:10

In a significant development for the cryptocurrency industry, Binance, a leading crypto exchange, has discontinued new user registrations in the United Kingdom effective from Monday. This decision comes as a direct response to the Financial Conduct Authority's (FCA) restrictions placed on Rebuilding Society, the firm responsible for approving Binance's UK promotions. The FCA's actions against Rebuilding Society led to the termination of its contracts with several firms, including Binance. Consequently, Binance is now actively seeking a new FCA-authorized partner to help navigate these regulatory changes. The restrictions imposed by the FCA have critically impacted Binance's operations in the UK, blocking the initiation of new crypto promotions. In response, Binance has temporarily restricted its platform and mobile app for UK users while it works towards compliance with the new regulations. Despite these changes, existing customers who have passed the "Investor Declaration" and "Appropriateness Test" will maintain their current service levels. However, Binance has suspended the roll-out of new products or services in adherence to FCA directives during this interim period. These recent developments are part of broader regulatory changes within the UK. The country has tightened regulations on crypto asset transfers under the Financial Action Task Force's "Travel Rule" in an effort to curb money laundering via cryptocurrencies. Additionally, a bill passed in June recognized cryptocurrency as a "regulated financial activity", which although it enhances the industry's potential, also presents challenges for unregulated businesses. https://www.investing.com/news/cryptocurrency-news/binance-halts-new-uk-user-registrations-amidst-regulatory-changes-93CH-3200061

2023-10-16 14:48

Renowned crypto analyst EGRAG has highlighted a historical correlation between the price movements of Stellar (XLM) and Ripple's XRP, which could hint at an upcoming uptrend for both tokens. The analysis traces back to January 2018 when both cryptocurrencies reached their simultaneous peak, with XLM hitting $0.9309 and XRP peaking at $3.31. Following this peak, both tokens experienced a significant drop in March 2020 but managed to rally later that year in November. XRP saw a gain of 177%, while Stellar appreciated by 160%. However, in December 2020, both cryptocurrencies experienced a decline, with XRP dropping by 66% and Stellar following suit. EGRAG's analysis indicates that Stellar's price movements have been strongly influenced by Ripple's performance over the years. This correlation was again evident in April 2021 when both coins rallied once more. Ripple reached $1.9669 and Stellar peaked at $0.7978 before entering a downtrend from June 2021 to December 2022. The analyst's chart reveals a series of channels that Stellar has followed since January 2018, mirroring Ripple's movements. As of Monday, Stellar is trading at $0.1072 and is predicted to enter another uptrend soon, potentially reaching the $1 price range. This bullish outlook for both tokens is based on their historical performance and correlation. https://www.investing.com/news/cryptocurrency-news/stellars-price-movements-mirror-ripples-analyst-predicts-uptrend-93CH-3200042

2023-10-16 14:42

In a recent development, Y00ts, a blockchain-based platform, has launched a bridge from Polygon to Ethereum, which is accessible via Phantom Shortcuts. This new feature allows users to migrate their assets without staking on Ethereum, a move that has been met with mixed reactions from the community. The bridge was implemented by Y00ts within a week and is powered by Wormhole's cross-chain Non-Fungible Token (NFT) standard. The process involves the validation of bridge transactions on Polygon following their settlement on the Ethereum Mainnet. Users have been given until Saturday, October 22, 2023, to complete the migration process. This may take up to an hour due to the expected high traffic on the platform. To incentivize early migration, Y00ts is covering first-day gas fees and offering a reward of randomly distributing 10 y00ts to the wallets of early migrators. However, after the deadline, users will be subject to a 33.3% Paper Hand Bridge Tax on Polygon. Despite this tax, users will still have the ability to mint NFTs on Polygon. While some in the community have expressed concerns about these changes, others have appreciated Y00ts' efforts in facilitating asset migration and are looking forward to more updates from the company in the near future. https://www.investing.com/news/cryptocurrency-news/y00ts-initiates-polygon-to-ethereum-bridge-with-rewards-for-early-migrators-93CH-3200048