Reddit Moderators Ban Crypto Promotion on Pepe the Frog Subreddit
Moderators on Reddit have taken action against the flood of crypto-related Pepe the Frog hype in the meme's original subreddits after the explosion of the $PEPE memecoin. The moderator for "r/pepethefrog" has banned all cryptocurrency promotion and similar schemes such as NFTs from the subreddit, stating that it is for sharing and creating Pepe the Frog art, not for currency trading. The decision was met with overwhelming support from members of the subreddit, who even created memes depicting the moderators cleaning up the crypto-related mess. The $PEPE memecoin experienced a 2000% price rally fueled by hype and frenzy, but has since fallen at least 42% in value.
Co-Founder of Defunct Crypto Hedge Fund Obtains Restraining Order Against BitMEX's Arthur Hayes
Su Zhu, co-founder of Three Arrows Capital (3AC), has obtained a restraining order against Arthur Hayes, co-founder of BitMEX, from a Singapore court. The order prohibits Hayes from using threatening or abusive language towards Zhu and his 3AC partner Kyle Davies. Hayes has been tweeting at Zhu and Davies, asking for $6 million he says is owed following the collapse of the fund last year. The court order prohibits Hayes from communicating with Zhu by any means and from publishing any identity information.
Grayscale Worried SEC May Prevent Use of Coinbase for Crypto Assets
Grayscale Investments, the company behind the Grayscale Bitcoin Trust and Grayscale Ethereum Trust, has expressed concerns that the SEC's proposed new rules around safeguarding custody of clients' crypto funds could prevent it from using Coinbase as the sole holder of its $5.4 billion of crypto assets. The proposed rule would make it illegal for centralized exchanges like Coinbase to hold customer funds in commingled accounts and credit customers for their value, rather than providing an individual wallet for each customer. Grayscale currently stores its funds with Coinbase via the Coinbase Custody Trust Company, which holds Grayscale's assets in offline cold storage, via unique onchain addresses, and are never commingled with other clients' funds. Coinbase has also complained about the proposed rule, which would ban registered investment advisers from trading on non-qualified custodian crypto exchanges.
Top U.S. Regulator Says Europe's Landmark Crypto Regulation Could Serve as Model for U.S.
Hester Peirce, a commissioner at the Securities and Exchange Commission (SEC), has praised Europe's crypto regulation and suggested that it could serve as a model for the US. She specifically highlighted the speed at which the European Union put together its digital finance package, Markets in Crypto Assets (MiCA), which was passed by the European Parliament last month. Peirce also expressed her support for a regulatory model that allows for innovation while informing customers of the risks. She predicted that the rollout of MiCA could attract more businesses to Europe due to the clearer regulatory environment.
Hong Kong's Crypto Hub to Have Strict Regulations, Says Monetary Authority Chief
Hong Kong is preparing to introduce new licensing rules for virtual-asset service providers and guidelines for banks interacting with crypto firms. The Chief Executive of the Hong Kong Monetary Authority (HKMA), Eddie Yue, has stated that companies attracted by the plan to turn Hong Kong into a hub for digital assets should expect strict regulations. The new regulations will be tight, but the plan is to allow retail investors to acquire and trade major cryptocurrencies like bitcoin and ether. The move is part of efforts by authorities in China’s special administrative region to restore Hong Kong’s credentials as a leading financial center in the aftermath of restrictions imposed in response to the Covid pandemic and political unrest in the territory.
UK Crypto Industry Seeks Global Collaboration with Regulators to Avoid Post-Brexit Isolation
Stakeholders in the UK's crypto industry have welcomed proposed legislation for regulation, but are urging collaboration with global regulators to avoid isolation after Brexit. The UK plans to regulate crypto under existing frameworks and may publish crypto-specific rules within the next year. However, concerns have been raised by the Association of Financial Markets in Europe that the UK's authorization regime could damage its reputation as an open market. CryptoUK, AFME, and Binance have called for a transition period and clarity on the scope of economic activities and treatment of assets like NFTs.
Biden Criticizes "MAGA House Republicans" for Supporting Tax Loopholes for Wealthy Crypto Investors and Opposing Food Safety Inspections
On Tuesday, U.S. President Joe Biden criticized "MAGA House Republicans" for supporting tax loopholes that benefit wealthy crypto investors while opposing food safety inspections. Biden's comments were made in support of his proposed fiscal year 2024 budget, which has faced opposition from Republicans in the U.S. House. Biden's budget plan includes updating tax codes to apply to crypto assets, which he claims would recover $24 billion. The lack of clear regulatory guidance on crypto in the U.S. has led to criticism and increased scrutiny from regulators.
Institutional Investors Continue to Sell Digital Assets, Bitcoin Sees Largest Outflows
Institutional investors have shown negative sentiment towards digital asset investment products for three consecutive weeks, resulting in outflows of $54 million last week, according to a report by CoinShares. The majority of the outflows were from Germany and Canada, with fund issuers 3iQ Corp and CoinShares Physical accounting for most of the outflows. Bitcoin saw the most selling pressure from large investors, with outflows nearing $32 million. Despite this, Bitcoin's price has remained stable with a -1.6% loss over the past 30 days. Interest in investment products is trending 16% higher than this time last year, despite volumes for the broader cryptocurrency industry being at half of what they were at the beginning of 2023.
PayPal Discloses $943 Million in Cryptocurrency Holdings increased by 56% in Q1 2023 to nearly $1B
PayPal, a financial technology company, has revealed its cryptocurrency holdings in a quarterly report filing to the Securities and Exchange Commission (SEC).
Crypto media outlet Blockworks raises $12m for research and data analytics expansion
Blockworks, a crypto media outlet, has secured $12 million in a funding round led by private equity firm 10T Holdings, valuing the company at $135 million. The funds will be used to expand Blockworks Research, an investment platform that provides data, analytics, research, governance, and real-time news to financial institutions and crypto-native investors. Despite a difficult time for crypto-focused publications, including high-profile scandals and a bear market, Blockworks is doubling down on its efforts to provide better information to the industry. Framework Ventures and Santiago Santos also participated in the funding round.
