Good Morning Crypto

The UK government has rejected a proposal to regulate cryptocurrency like gambling, insisting it's a financial service. Terraform Labs, facing legal issues with its co-founder, has appointed a new CEO, Chris Amani. Kuwait's Capital Markets Authority has issued an absolute ban on major cryptocurrency operations. FTX, a bankrupt crypto exchange, is suing its former CEO, Sam Bankman-Fried, for allegedly misappropriating over $71 million for personal gain. Meanwhile, crypto trading platform Bitget is expanding into the Middle East, with plans to hire up to 60 new staff and explore opportunities in Bahrain and the UAE.

In France, Société Générale's subsidiary, Forge, has become the first company to secure the highest access license for crypto services. Meanwhile, Nasdaq has halted its cryptocurrency custody service launch due to US regulatory concerns. In the tech space, Meta and Microsoft have launched Llama 2, an open-source AI model, amidst concerns about potential misuse. Regulatory issues continue to impact the crypto industry, with Australia's FTX losing its financial license and US lawmakers urging the SEC to consider a legislative approach to digital asset regulation.

Customers Bancorp, a small bank in Pennsylvania, has become a major player in the crypto industry, offering 24/7 services for crypto clients. Meanwhile, Reddit's MOON cryptocurrency has seen a 200% surge following a change in the platform's terms of service, indicating a potential shift towards embracing web3 tokens. Ripple Labs is also in the spotlight, hoping for a resurgence in the use of its XRP product by US banks following a favorable legal ruling. However, not all news is positive, as Thodex founder Faruk Fatih Özer has been sentenced to prison for failing to submit requested documents during his trial. Lastly, Kraken, a cryptocurrency exchange, has seen its market share in the US double in the last 18 months, largely due to a significant increase in the number of users on its Kraken Pro application.

Binance has integrated the Bitcoin Lightning Network for faster transactions, while the SEC reviews new Bitcoin ETF applications. In Australia, the National Australia Bank is blocking transactions with high-risk cryptocurrency platforms. Meanwhile, Changzhou, China, is boosting its digital currency use by distributing digital yuan tokens, and Beijing plans to train 10,000 individuals annually in digital technologies like blockchain and AI.

We have a lot to cover today, from the dominance of U.S-based crypto startups in attracting venture capital funding to the challenges Bitcoin miners are set to face with the upcoming halving event. We'll also discuss Raoul Pal's prediction of an imminent parabolic surge in the crypto markets and the controversy surrounding BlockFi CEO Zac Prince's decision to lend assets to Alameda Research against the advice of his risk management team. Lastly, we'll delve into the struggles of the Shiba Inu token as it faces a formidable sell wall.

In recent developments, the Bank of Japan has chosen Ripple's XRP cryptocurrency to enhance cross-border payments. A judge ruled in favor of Ripple in its case against the SEC. The SEC accepted BlackRock's application for a Bitcoin ETF. Cryptocurrency-related crime has significantly decreased in 2023, with a 65% decline in inflows to illicit entities. Judge Katherine Polk Failla expressed support for Coinbase in its legal battle with the SEC.

MultiversX implements on-chain two-factor authentication for enhanced security on its blockchain protocol. Former Celsius CEO, Alex Mashinsky, pleads not guilty to fraud charges and faces a $40 million bail. Multichain ceases operations due to a lack of funds, with the CEO under the custody of Chinese police. XRP price rallied over 70% following a court ruling declaring it, not a security, leading to increased scams. US Congressman Ritchie Torres calls for independent investigations into the SEC's handling of cryptocurrencies.

Wallet has launched a crypto payment solution on Telegram, enabling direct payments using cryptocurrencies like Bitcoin. The FTC has fined Celsius Network $4.7 billion for allegedly misappropriating consumer assets. Industry watchdogs oppose a proposed bill on crypto market structure, citing concerns about its impact on regulatory rulemaking. The IRS is investigating wealthy crypto traders suspected of exploiting Puerto Rico's tax breaks. The Blockchain Council of the Philippines is partnering with the DICT to promote Web3 adoption in the country.

The Bank of China is conducting trials for an offline payment system that connects to SIM cards, enabling users to make phone payments with the digital yuan. South Korea will require all local firms to disclose their cryptocurrency holdings from 2024 to enhance transparency and align with supervision guidelines. The Russian parliament has passed the digital ruble bill, bringing Russia's central bank digital currency (CBDC) project closer to reality. The European Banking Authority (EBA) has called for the early adoption of stablecoin standards by issuers ahead of expected regulatory requirements. Celsius Network has filed a lawsuit against StakeHound to recover $150 million worth of tokens, alleging that StakeHound failed to return the tokens.

Bank of England Governor Andrew Bailey remains skeptical of cryptocurrencies and stablecoins. ConsenSys launches Linea, a layer-2 scaling network for Ethereum. Axelar partners with Microsoft to bridge public and private blockchains. The UK's FCA shuts down several crypto ATMs due to illegal operations.