Binance suspends spot trading temporarily, SEN and Signet’s closure impact, EU revises anti-money laundering bill, FTX creditors approve stock sale and more
Binance Halts Deposits and Withdrawals: CEO Addresses Trading Issues
> The exchange’s CEO, Changpeng Zhao, revealed in a tweet on Friday that a bug had been detected in the matching engine of the trailing stop order.
> As a standard operating procedure, the exchange has paused deposits and withdrawals while the issue is being resolved.
> This follows Binance’s decision last week to halt sterling deposits and withdrawals, which came a month after the exchange ceased dollar transfers.
> Binance tweeted that they were aware of the issue affecting spot trading and have temporarily suspended all spot trading as they work towards a solution. Details here.
Bitcoin Liquidity Drops to 10-Month Low: A Deep Dive into Crypto Markets
Bitcoin liquidity has hit a 10-month low, according to a report from crypto data provider Kaiko.
> The report highlighted the critical role of market depth, spreads, slippage, and volumes in measuring liquidity in crypto markets.
> Market depth, which represents the number of orders waiting to be filled within a specific price range, was particularly relevant in this regard.
> The data showed that liquidity had dropped significantly in BTC markets, even lower than in the aftermath of FTX’s collapse.
> The closure of Silvergate’s SEN network and Signature’s Signet payment network, two critical pieces of infrastructure for market makers in the space, had impacted liquidity in the US exchanges. Continue here.
Nasdaq Digital Asset Custody
Nasdaq Digital Asset Custody: Pioneering Crypto Services for the Financial Sector
> The international exchange group is progressing with the necessary technological infrastructure and regulatory approvals, according to Ira Auerbach, Senior VP and Head of Nasdaq Digital Assets, in a recent discussion in Paris.
> Nasdaq has submitted an application to the New York Department of Financial Services for a limited-purpose trust company charter, which would supervise the new venture.
> Initially disclosed in September, this initiative represents Nasdaq’s inaugural significant venture into the world of cryptocurrencies. Full report here.
Do Kwon’s Fall from Grace: Extradition and Fraud in the Crypto World
> Kwon, whose full name is Kwon Do-hyung, is implicated in the fraud that followed his company’s abrupt collapse in 2022, which erased approximately $40 billion of investor funds and rattled global cryptocurrency markets.
> Kwon was detained in Podgorica, Montenegro’s capital, at the airport alongside an associate after being discovered traveling with counterfeit documents.
> Montenegro’s police announced on Friday that both individuals were charged with document forgery.
> Kwon’s TerraUSD was promoted as a “stablecoin,” usually linked to stable assets such as the US dollar to avoid significant price fluctuations. More here.
Stablecoin issuer Tether projects a Q1 profit of $700 million, pushing its aggregate surplus reserves beyond $1 billion, the firm’s CTO said while unveiling these financial figures for the first time.
> Tether is responsible for issuing the USDT stablecoin, which maintains a one-to-one relationship with the U.S. dollar.
> vUSDT is backed by tangible assets such as fiat currencies and U.S. Treasury bonds, guaranteeing its constant exchangeability with the U.S. dollar.
> Traders employ stablecoins to switch between cryptocurrencies without having to revert to fiat currencies.
> However, there has been skepticism about stablecoin issuers’ transparency concerning the reserve assets supporting their digital currencies.
> Previously, Tether held commercial paper, a form of short-term, unsecured corporate debt, but did not provide information about the specific companies or their locations from which it acquired the debt. Continue here.
Crypto Sector Gains Ground as EU Parliament Softens Stance on Anti-Money Laundering Legislation
> The digital assets industry had expressed concerns about the bill, prompting policymakers to return to the original phrasing regarding commercial payments.
> One provision of the bill, added by Members of European Parliament (MEPs), was intended to limit the value of transactions merchants can accept unless the crypto wallet owner is fully identified.
> An earlier version of the regulation stipulated that only transfers exceeding the equivalent of €1,000 ($1,090) from EU-licensed crypto service providers would be permitted, a point of contention for the European digital assets industry. Full report here.
Collapsed Crypto Exchange FTX Moves to Sell Preferred Stock in Sui Blockchain Developer Mysten Labs
> A March 22 document filed with the U.S. Bankruptcy Court in the District of Delaware outlines a proposed arrangement between FTX creditors and Mysten Labs, which includes a mutual release of claims.
> As part of the deal, creditors intend to sell approximately $95 million in preferred stock back to Mysten, along with $1 million in SUI tokens.
> The filing states, “The Debtors carefully considered and analyzed the offer as set forth in the Agreement in comparison to its other options and concluded that a sale of the Interests will result in obtaining maximum value for the Interests, and is in the best interests of the Debtors’ estates and creditors.” More here.
Cryptocurrency Market Rollercoaster: Weekly Gains, Losses, and Recovery
Cryptocurrency values experienced significant fluctuations this week, initially rising before the Fed’s announcement, then declining following the 25 basis point increase, and finally starting to recover some of the losses.
> Bitcoin, the foremost cryptocurrency in terms of market capitalization, traded around $27,600, representing an approximate 0.4% increase over the past week, based on TradingView data.
> Meanwhile, Ethereum witnessed a 2.1% decrease, trading at roughly $1,750. The performance of altcoins varied, with Binance’s BNB dropping 4.2%, Polygon’s MATIC experiencing a 10% plunge, and Solana’s SOL declining by 4%.
> Ripple’s XRP enjoyed a 17% increase, possibly due to positive developments in its ongoing legal battle with the SEC, though a final verdict is still pending.
> This week, Coinbase shares experienced a downturn as the company received a Wells notice from the U.S. Securities and Exchange Commission.
> The exchange’s staking products, including Coinbase Earn and Coinbase Wallet, as well as its asset listings, are currently under investigation. According to TradingView data, shares in the exchange fell by 3.8% over the week.
