Crypto Market Impacted as Turmoil Hits Binance, KuCoin and Coinbase

Crypto Market Impacted as Turmoil Hits Binance, KuCoin and Coinbase

Bitcoin, this week, retained its value around the mark of $67,145 (roughly Rs. 55.9 lakh). As per market analysts, the key level remains at $69,000 (roughly Rs. 57.5 lakh), with BTC needing to maintain position above it. Ether, meanwhile, is hovering around the price point of $3,360 (roughly Rs. 2.80 lakh). To see a significant upside move, ETH must first surpass the mark of $3,650 (roughly Rs. 3.04 lakh).

Majority cryptocurrencies kept trading in the losses this week. These included Tether, Binance Coin, Solana, USD Coin, Cardano, and Avalanche alongside  Litecoin, Leo, Polkadot, Polygon, and Uniswap.

The overall crypto market cap held ground at the valuation of  $2.62 trillion (roughly Rs. 2,18,43,778 crore) for most part of this week. 

The loss-streak in crypto pricing comes in the backdrop of Binance, Coinbase, and KuCoin facing probes in different parts of the world. 

Binance is facing an inquiry in Nigeria over suspected involvement in unlawful activities.KuCoin has been charged by the US' CFTC for operating an illegal digital asset derivatives exchange, and as far as Coinbase is concerned, the SEC has made a plausible argument that Coinbase is operating as an unregistered broker. The market is expected to remain volatile now that these exchanges are under the scanner. 

OKX Crypto Exchange Shuts Operations In India

Seychelles-headquartered exchange OKX has exited India's crypto sphere. The reason for this decision is because the exchange was not completely in alignment with India's operational policies. Earlier this week, the exchange informed its Indian users about this decision earlier this week through an internal communication.  

All of the users using the app in India have been directed to close their accounts before April 30. Following the deadline, OKX users will still be allowed to withdraw funds, all other functions, however, will be rendered defunct.

“Due to local regulations, you need to close all margin positions, as well as positions in perpetuals, features, and options. Redeem all funds from Grow products. Your funds will remain safe and available in your account until you withdraw them,” OKX said in its announcement.  

The Financial Intelligence Unit (FIU) and the finance ministry of India are trying to ensure that all crypto-related firms are following the Anti-Money Laundering and Counter-Financing of Terrorism (AML-CFT) framework under the provisions of the Prevention of Money Laundering Act (PML) Act in March 2023.

Solana Defeats Ethereum on Popularity Quotient

Solana has been named as the topmost blockchain that has defeated Ethereum in recent times. There has been a significant spike in Solana-based activities, especially in-terms of the sales of Solana-based NFTs and memecoins. In recent weeks, the Solana blockchain has reportedly managed to garner $150 million (roughly Rs. 1,252 crore) through the sale of memecoins like Bonk and Slerf. With all this happening, CoinGecko has ranked Solana number one on the list of most popular blockchains.  Data by CoinGecko suggests that Solana commands 49.3 percent of global crypto investor interest. In fact, in the last one year, the value of SOL has escalated by a remarkable 700 percent.

As far as Ethereum is concerned, the blockchain has secured the second rank on the most popular blockchains list compiled by CoinGecko. 

London Stock Exchange to Launch ETNs for Bitcoin, Ether

Starting May 28, the London Stock Exchange will launch exchange traded notes (ETNs) for Bitcoin and Ether. UK's Barclays Bank had created the concept of ETN as an investment vehicle back in 2006. ETNs are issued by a bank as an unsecured debt security and it can track an index of securities and its price is linked to how this index performs.

All crypto ETNs, are mandated to be backed by a physical commodity, as ber UK's guidelines. In addition, all underlaying BTC and ETH assets linked to these ETNs must be provided by a custodian that has an Anti-Money Laundering license issued in the US, UK, or the EU.

With this, the UK has again portrayed itself as a lucrative destination for crypto businesses and investors.