Cryptocurrency is becoming increasingly popular and present in the public sphere of finance. This week, several major developments have been made in the world of cryptocurrency that demonstrate the innovation being driven by both businesses and retail investors. On the one hand, the well-known figure Elon Musk tweeted about Dogecoin, causing the price of the cryptocurrency to surge by a record thirty-five percent. This development was accompanied by other favorable market signals such as CoinShares finding that investors have been buying Bitcoin, and Coinbase calculating that crypto could save U.S. citizens billions of dollars in remittance fees a year. Such titans as MicroStrategy also propelled their crypto wealth into the billions through their $30 million Bitcoin acquisition.

At the same time, negative news relating to fraud and other infringements of regulations have also been prominent. Binance was subject to a lawsuit by the CFTC and had to refrain from zero fees on their BTC pairs, while their CEO was suspected of receiving an Interpol Red Notice. Paxful shocked the Cryptoverse when they said they would be suspending their marketplace and the U.S. judge ordered Binance. US’s acquisition of Voyager Digital to halt pending a government appeal. Such incidents of fraud, lending, and partnerships have showcased the development of the crypto sphere, but at the same time shown the importance and need for solid oversight to ensure consumer protection.

In the wake of these developments, companies and entities around the world have begun to take action. To this end, PostFinance has partnered with Sygnum Bank, S&P Global has been on the lookout for a DeFi director, and SEB and Crédit Agricole CIB have jointly launched their blockchain-based platform so|bond.

On the other hand, the authorities have also taken strict regulations to mitigate the potential of criminality. Nanjin has opened more than 310,000 personal digital wallets, the Russian government has reported that citizens are spending more per household on crypto than gold, the UK has taken complaints directly to the Government, and the US has initiated a regulatory crackdown on crypto. Other reports of fraudsters and hackers have emerged from South Korea, the US and Russia, highlighting the necessity of being especially vigilant when dealing with crypto assets.

This week has had its major highs and lows for the cryptocurrency space. From financial giants making major moves, to criminal activity prompting authorities to act, the stories show just how varied and impactful this space can be. With a mix of optimism and caution, it looks like 2021 will continue to be a wild ride for cryptocurrency.



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