Cryptocurrency News on Canada – According to Michael Hiltzik of the Los Angeles Times, the bitcoin euphoria “may be coming to an end.” Late-stage investors most certainly “reaped significant losses” due to cryptocurrency’s collapse from a high market valuation of more than $3 trillion in late 2021 to roughly $800 billion today. However, as authorities have “tightened the screws,” congressional proposals that attempted to liberalize the cryptocurrency business “look to be running out of steam.” Cryptocurrency News on Canada Advocates of the new kind of money had asserted that it was a financial innovation that would boost the prosperity of individuals who were on the periphery of the financial system. Nevertheless, after 14 years of frauds and bubbles.
Cryptocurrency has shown to be nothing more than a speculative asset, something to purchase in the expectation that its value would increase in the future. That’s “often referred to as the “greater fool” hypothesis. The unbanked need straightforward, affordable methods to save money, but cryptocurrency transactions—which are often rife with unadvertised costs—tend to be the exact opposite.”
The free pass that Crypto had was revoked “FTX abruptly shut down last year, costing investors billions of dollars, according to Yueqi Yang, Katanga Johnson, and Austin Weinstein in a Bloomberg article. Cryptocurrency News on Canada Authorities is currently working to “construct a wall” between the cryptocurrency trading market and the banking and securities markets in an effort to avert a repetition of the financial catastrophe of 2008.
After a direct New Year’s warning to banks to make sure that “crypto-related risks” don’t disrupt the banking system from the Federal Reserve and other leading financial authorities, regulatory activities have accelerated. The Fed denied the cryptocurrency company Custodia Bank “coveted access to the central bank’s payment system” in late January. The SEC punished a cryptocurrency promoter and filed a lawsuit against a business that distributed digital currencies only last week, while the New York financial services authority ordered Paxos to cease distributing the well-known stablecoin BUSD.
In reaction, according to Rachel Louise Ensign and David Benoit in The Wall Street Journal, bankers “are re-evaluating any exposure to the crypto industry, no matter how tiny.” Banks that were formerly “deep into crypto” are now aggressively “shunning customers” with crypto ties, while others that kept a distance are lowering or even deleting their exposure. The extent to which cryptocurrency firms that positioned themselves as a bank alternative still relies on such organizations for access to conventional cash is being made clear by this restructuring. Swan Bitcoin, for instance, had to rush to pay its staff when Citigroup Inc. “abruptly terminated” the account.
According to David Yaffe-Bellany in The New York Times, this “aggressive government action” has sparked “outrage and worry” in the cryptocurrency sector. It was referred to as a “crypto carpet bombing” by Kristin Smith of the Blockchain Association, an industry organization. The founder of the firm momentarily “posted an obscene meme” about the SEC’s chairman following a deal the agency struck with the American cryptocurrency exchange Kraken that resulted in the removal of one of its products from the market. And this turmoil won’t soon come to an end. The recent enforcement actions are likely simply “a precursor to a lengthy spell of legal litigation,” according to industry attorneys.
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