1. Powell Believes Payment Stablecoins Should Be Treated as Currency

a. Federal Reserve Chairman Powell: Cryptocurrencies like Bitcoin Seem to Have ‘Staying Power’ link

On June 22nd, during the latest congressional hearing, Federal Reserve Chairman Powell stated that cryptocurrencies like Bitcoin appear to have “staying power.” Stablecoins also hold a significant share in the overall cryptocurrency market, and lawmakers are currently attempting to establish regulations for them.

b. Powell States Stablecoins for Payments Are Considered as Currency During Hearing link

During the congressional hearing, Chairman Powell also stated that payment stablecoins are considered as a form of currency, and central banks should play a role in approving their issuance in the United States. He mentioned, “We do regard them as currency.” Powell also dismissed suggestions of the Federal Reserve directly issuing a digital dollar (CBDC) or the imminent arrival of a digital dollar, citing concerns related to privacy as one of the reasons.

2. Four Additional Asset Management Firms Apply for Bitcoin Spot ETF Following BlackRock

a. Bitwise Submits New Application to SEC Requesting Rule Change to Accommodate Its Proposed Bitcoin Spot ETF link

Following BlackRock’s submission of a spot Bitcoin ETF application, Bitwise Asset Management submitted a new application to the U.S. Securities and Exchange Commission (SEC) on June 16th, requesting rule changes to accommodate its planned Bitcoin spot ETF. The SEC had previously rejected Bitwise’s Bitcoin spot ETF application in June 2022, citing concerns about adequate surveillance sharing, protection against market manipulation, and demonstrating a sufficiently large market size. In the newly submitted filing, Bitwise asserts that the SEC should initiate additional proceedings within 45–90 days to approve, disapprove, or initiate other actions regarding its proposed rule changes.

b. WisdomTree and Invesco Resubmit Applications for Bitcoin Spot ETFs link

On June 21st, following BlackRock’s submission of a physically-backed Bitcoin ETF application, Eric Balchunas, a senior ETF analyst at Bloomberg, tweeted that asset management company WisdomTree has once again submitted an application for a physically-backed Bitcoin ETF. In addition, Invesco has also filed a new 19b-4 document for a physically-backed Bitcoin ETF.

c. Valkyrie Funds Files Spot Bitcoin ETF Application with the U.S. Securities and Exchange Commission link

On June 22nd, Valkyrie Funds also submitted an application for a physically-backed Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC). Prior to this, Valkyrie Funds had already offered a Bitcoin strategy ETF and a Bitcoin miner ETF. If approved, the proposed ETF, named Valkyrie Bitcoin Fund, is planned to be listed on the Nasdaq exchange with the ticker symbol BRRR.

3. Binance.US’s Weekly Summary

a. Binance Reaches Tentative Agreement with US SEC link

On the evening of June 16th, Binance, Binance.US, and the U.S. Securities and Exchange Commission (SEC) announced an agreement to ensure that only Binance.US employees would have access to customer funds. The proposed agreement, which still requires the signature of the federal judge overseeing the case, includes measures such as preventing any Binance (Global) executives from accessing the private keys, hardware wallets, or root access to Amazon Web Services tools for Binance.US’s various wallets. Additionally, Binance.US will share detailed information about its business expenses, including estimated costs, in the coming weeks.

According to @JohnReedStark, Judge Amy Berman Jackson of the District Court for the District of Columbia has agreed to the agreement between Binance and the SEC and has submitted a consent order. Earlier, the judge rejected the SEC’s request to freeze the assets of entities such as Binance US, urging both parties to negotiate. The proposed agreement ensures that only Binance.US employees can access customer funds.

b. Binance US Collaborating with Banking Partners to Enable USD Withdrawals Again link

On June 23rd, according to cryptoslate, Binance US announced that it is working with banking partners to reinstate USD withdrawals. Most USD withdrawal requests are expected to be processed within five business days or less, as usual. However, it is anticipated that banking partners will discontinue this service in the near future. Binance US advised users to convert their USD balances into stablecoins and mentioned the possibility of automatically converting USD balances into USDT. They also stated that they would be removing most USD trading pairs and introducing new USDT trading pairs.

4. Binance’s Weekly Summary

a. BNB Chain Launches EVM-Compatible L2 Network opBNB on Testnet link

BNB Chain has launched opBNB, a Layer 2 network compatible with the Ethereum Virtual Machine (EVM), on its testnet. opBNB is based on Optimism’s OP Stack and utilizes optimistic rollups, which is expected to improve transaction speed and reduce costs. The mainnet launch of opBNB is planned for the third quarter of this year. Developers have stated that opBNB will support over 4,000 transactions per second with an average transaction cost of less than $0.005.

@tmel0211 analysis suggests that BNB Chain aims to provide a seamless “migration” channel for developers of other Layer 2 solutions, focusing on applications in areas such as social media and gaming that require higher throughput, faster frequency, and lower fees.

b. Binance Lightning Network Nodes Go Live link

On June 20th, Binance tweeted that they are currently working on integrating support for Bitcoin’s Lightning Network for deposits and withdrawals. They also confirmed that they have recently deployed a new Lightning Network node. According to Blockchain Explorer, Binance’s Lightning Network node went live approximately 5 days ago. The current capacity of the node is 25 BTC, and it has 4 channels, primarily connecting to Lightning Network nodes of OKEX, Kraken, and Bitfinex.

c. Binance UK Subsidiary BML’s Registration with UK Financial Conduct Authority (FCA) Officially Revoked link

Binance’s UK subsidiary, Binance Markets Limited (BML), had its registration with the Financial Conduct Authority (FCA) officially revoked on May 30th. Binance entities in the UK do not have any operational licenses. Ilir Laro, Binance’s Regional Manager, stated that BML was acquired by Binance Group in 2020 to conduct regulated business in the UK. However, BML has never engaged in any type of regulated business in the UK, and the revocation of registration does not have any operational impact on it.

d. Binance Announces Launch of Regulated Digital Asset Platform in Kazakhstan link

On June 21st, Binance announced the launch of a regulated digital asset platform in Kazakhstan. The new platform will provide trading and conversion services, fiat currency deposits and withdrawals, and cryptocurrency custody services for users in Kazakhstan. Binance obtained a license from the Astana International Financial Centre (AIFC) Financial Services Authority (AFSA) in October last year, allowing it to offer custody services.

e. President Tokayev of Kazakhstan Attends Binance Kazakhstan Signing Ceremony link

CZ , the CEO of Binance, showcased a signing ceremony photo with Bagdat Mussin, the Minister of Digital Development of Kazakhstan, with President Tokayev of Kazakhstan as the witness. Binance emphasized that users in Kazakhstan will be able to buy and sell cryptocurrencies with fiat currency, and the global Binance platform will remain open to users from the country. Binance stated that it is collaborating with five regulatory agencies in Kazakhstan, including the AIFC Financial Services Authority, the Ministry of Digital Development, Innovation and Aerospace Industry, and the National Bank.

f. Binance to Launch Zero Trading Fees Promotion for TUSD Spot and Margin Trading Pairs link

On June 21st, Binance announced the launch of a zero trading fee promotion for TUSD spot and margin trading pairs. Starting from June 30th, 2023, at 08:00 (GMT+8) until further notice, all users trading TUSD spot and margin trading pairs will enjoy zero trading fees for limit orders.

5. Li Lin Officially Files Lawsuit in Hong Kong Against Huobi for Trademark Infringement link

WuBlockchain has exclusively learned, on June 21st, X-Spot Limited, controlled by Li Lin, filed a trademark infringement lawsuit against Huobi Global Limited in the High Court of the Hong Kong Special Administrative Region. This comes after earlier events where Sun Yuchen blocked the account of Li Lin’s brother and accused him of dumping HT. Huobi Global has started reusing the “火币” trademark.

According to the lawsuit, X-Spot Limited has consistently maintained exclusive rights to the “火币” trademark, and Huobi Global Limited has been using the trademark without authorization from X-Spot. When the original shareholders transferred their shares of Huobi Global to About Capital Management, they explicitly agreed to retain exclusive rights to the “火币” trademark and ensure that these rights would not be transferred to the buyer or Huobi. The share transfer and asset delivery agreement explicitly prohibits the buyer from using the “火币” trademark and brand.

Huobi Global Limited responded by stating that they have the right to use the trademark in many legal jurisdictions globally and, therefore, have the freedom to use it. The registered location of Huobi Global Limited is not in Hong Kong, and the trademark rights in the Hong Kong region are subject to Hong Kong’s laws and regulations. They have not received any official notice of acceptance from any court at present.

6. FT: Cryptocom has In-house Trading and Market Making Teams, But Employees Are Instructed to Deny It link

On June 19th, according to FT, Cryptocom is reported to have an in-house trading and market-making team, but its employees are instructed to publicly state that there are “no internal market-making operations” and to declare non-involvement in trading to partners. Cryptocom responded by stating that the treatment of their in-house market makers is identical to that of third-party market makers. They act as counterparties to customers and operate in a broker model to enhance liquidity in the order book and reduce spreads. The company also clarified that they do not rely on proprietary trading as a source of revenue.

7. EDX Markets, Cryptocurrency Exchange Backed by Wall Street Giants, Begins Operations link

On June 20th, according to The Wall Street Journal, EDX Markets, a new cryptocurrency exchange backed by Citadel Securities, Fidelity Investments, and Charles Schwab, has begun operations. EDX operates in a non-custodial model, meaning it doesn’t directly handle customer assets, and plans to collaborate with third-party banks and cryptocurrency custodians. Unlike the issues faced by FTX and Binance, EDX is based on traditional financial markets, which attracts brokers and investors concerned about fund security. The exchange will offer trading for Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. This demonstrates that despite regulatory pressures and a cooling market, some Wall Street firms remain interested in cryptocurrencies.

On the same day, EDX Markets announced the completion of a new round of financing, with investors including Miami International Holdings, DV Crypto, GTS, GSR Markets LTD, and others. EDX is planning to launch EDX Clearing later this year to settle trades matched on the EDX Markets platform.

8. FTX Pays Over $120 Million in Legal, Consulting, and Financial Services Fees from February to April link

According to data from The Block Research, bankrupt cryptocurrency exchange FTX paid a total of $121.8 million in legal, consulting, and financial services fees from February 1st to April 30th. Sullivan & Cromwell law firm received $37.6 million, accounting for 30.9% of the total fees. Alvarez & Marsal, a restructuring consulting firm, charged $37 million, with additional expenses exceeding $1.1 million.

9. Prime Trust Ceases All Deposits and Withdrawals for Fiat and Cryptocurrencies link

According to CoinDesk, Prime Trust was ordered by Nevada financial regulators to halt all deposits and withdrawals of fiat currency and cryptocurrencies on June 22nd. TrueUSD stated that their TUSD stablecoin was not affected, as they no longer use Prime Trust for minting or redemption and maintain “multiple dollar channels” elsewhere. BitGo announced the termination of its acquisition of Prime Trust.

Regulators stated that Prime Trust is operating at a “significant deficit” and may be insolvent, making it unable to meet customer withdrawal demands. Prime Trust has the option to request a hearing within 30 days of the order. If no application is made, the cessation order will be deemed a final order.

10. Former CTO of Coinbase: Apple, Microsoft, and Google Can Help Governments Seize Cryptocurrencies from Citizens link

On June 19th, former Coinbase CTO Balaji Srinivasan stated in a podcast interview that if G7 countries decide to allow the confiscation of digital assets, tech giants like Apple, Microsoft, and Google could lend them a hand. Countries may potentially decide to seize digital assets in an attempt to recover from economic turmoil. He mentioned that if ordered to do so, tech giants could easily scan our devices to find private keys and hand them over to authorities.

Fundraising

• Based on AI-powered cryptocurrency search engine Kaito, the company raised $5.5 million in a Series A funding round at a valuation of $87.5 million link

• Neutron, an intelligent contract infrastructure company, has raised $10 million in funding led by Binance Labs and CoinFund link

• Singapore-based digital payment startup dtcpay has announced that it raised $16.5 million in a Pre-A round of funding link

• Cryptocurrency mining firm Arkon Energy has secured $26 million in new funding to expand its operations into the US market link

• Web3 wallet platform Galaxy Finance has announced the completion of a $30 million Series B funding round link

• The decentralized finance protocol TapiocaDAO has announced the completion of a $6 million seed funding round link

• DEX Vertex Protocol announced that it has received a strategic investment from Wintermute Ventures in the field of digital asset spot and derivative trading link

Learn more, check out crypto-fundraising.info.

Follow us
Twitter: https://twitter.com/WuBlockchain
Telegram: https://t.me/wublockchainenglish