Like other weeks within the crypto industry, this new week is filled with much news that might boost or burn the crypto portfolios of traders. Much has happened to the embattled FTX conman Sam Bankman-Fried trying to get new bail conditions.
Another major development is that India is trying to test the offline functionality of their digital rupee. According to many experts, the launch of CBDC in any country is mostly a move to limit the attention paid to cryptocurrencies. In other news, the Securities and Exchange Commission is back in the limelight again as they engage in another legal battle against crypto firms.
This article will brief you on all the trending crypto stories that will heavily impact the crypto industry this week.
Bybit Suspends USD Transactions
Bybit, a Dubai-based cryptocurrency exchange, has just announced it will temporarily suspend USD bank transfers to their exchange. According to the crypto exchange, the decision came after they experienced a “service outage” from one of their partners.
Because of the current situation within the crypto industry, the decision from Bybit has made crypto users increase their alertness on the crypto exchange. Many exchanges closed down after similar announcements — Any more suspicious announcement from Bybit might make users leave the exchange. Currently, Bybit is urging users that the new update is no big deal and that they will soon resume USD bank transfers.
SEC in New Legal Battles
The Securities and Exchange Commission has proved that they love being in the news every week. The commission will go into another legal battle with crypto companies in a new development. According to one of the staff working for the SEC, they believe that Binance.us is an illegal securities exchange operating in the US. Subsequently, the commission will likely serve the legal papers to Binance after their latest findings.
Binance is the apex crypto exchange in the industry and has been attacked by massive FUDs and legal issues. During the Voyager Digital bankruptcy hearing, the SEC official announced that Binance.us might be their next target. According to them, Binance.us doesn’t have the necessary licenses to operate a securities exchange in the US.
Recently, the Securities and Exchange Commission started witch-hunting Kraken and succeeded in taking about $30 million in settlements from the exchange. Because of the increasing crackdown among crypto firms, Bitcoin price might be negatively affected, leading to another bearish trend in the market.
Shorters Line for Silvergate
Shorters are currently lining up to short Silvergate after many reports came that it might be closing down within a week. According to reports from The Block’s Benjamin Robertson, a famous crypto analyst predicted that Silvergate will go down within the week, leading to heavy shorting.
This is one of the crypto stories that might affect Bitcoin price because of Silvergate’s status as a crypto bank. Silvergate was one of the crypto firms with close relationships with the failed crypto exchange FTX. Because of the huge negative impact FTX had in the crypto industry, it looks like the crypto bank might be falling soon. The Silvergate Exchange Network, one of the most prominent money transfer solutions, closed last Friday and will likely remain forever.
This is a huge blow to the crypto industry as it is fast losing many of its firms due to the effect of the FTX collapse. Moreover, crypto users worry about the crypto bank they should use next when Silvergate completely closes down.
India Makes Incredible Strides in their CBDC
The Reserve Bank of India (RBI) recently revealed that they would be going ahead to test the offline functionality of their newly launched digital India rupee. According to many crypto analysts, the move by the Indian government might affect India’s crypto industry negatively.
The CBDC was formally launched in India on the first of November 2022, and its growth has been very rapid since its introduction. Introduced with about 50,000 users and 5,000 merchants for real-world testing, the CBDC India has grown to perform about $134 million in transactions within February. With more than eight hundred thousand transactions performed within the same period, it seems like the growth of CBDC in India has been sporadic.
According to the government, the digital rupees will help to reduce transaction costs for Indians and also promote faster transactions. With the promises the new CBDC holds, it seems like many Indians are finally embracing it massively. The negative side effect is the CBDC will likely shift attention from the crypto industry and reduce adoption.
New Bail Conditions for SBF
Sam Bankman-Fried will receive new bail conditions as the court prepares a new one for him. Sam Bankman-Fried was the brain behind the collapse of FTX, which led to other sub-collapses in the crypto industry. The United States Department of Justice was the party that drafted the new bail conditions for Sam Bankman-Fried.
The proposal was submitted to District Judge Lewis Kaplan, and it came with many things that will restrict SBF from accessing basic things. The proposal, accepted by the judge, will prevent Sam Bankman-Fried from having access to basic things such as smartphones, tablets, and even video gaming platforms. The main clause here will prevent Sam Bankman-Fried from communicating beyond any prescribed means.
The proposal will also stop Sam Bankman-Fried from communicating with the current and former employees of FTX and Alameda Research. It will also stop him from using encrypted messaging apps or VPNs. In addition, Sam Bankman-Fried will also have security software to monitor every activity he performs online.