Web3 avec Anouk Apr. 24 — Apr. 28, 2023
We are back! Welcome to Web3 avec Anouk.
I’m Anouk, a crypto enthusiast with a huge passion for the world of Web3 since 2019. Check back in every Friday for my take on the crypto news of the week.
Binance Faces Legal Pressure Over Money Laundering Allegations
The world’s largest cryptocurrency exchange, Binance, is under mounting legal pressure as regulatory authorities investigate the firm for compliance failures that allegedly enabled criminals to launder money on the platform. Changpeng Zhao, Binance’s founder and chief executive, has hired white-collar defense lawyers to represent him and his company as the legal net tightens.
If criminal charges are brought against Binance, it could cause panic in the crypto markets. Customers of Binance appear to be withdrawing their money, with $2bn in cryptocurrencies built on the Ethereum network leaving the platform in late March alone.
In response, Binance executives are trying to prove their compliance efforts and promote their agenda in Washington. The pressure on Binance could have a ripple effect throughout the entire cryptocurrency industry, which may not remain unscathed.
Coinbase Sues SEC to Force Decision on Crypto Regulation
Coinbase has taken its first formal shot at the Securities and Exchange Commission by filing a lawsuit against them. The exchange is demanding that the regulator make its decision on a months-old petition public, which asked if the crypto industry can be regulated under the SEC’s existing frameworks.
This move comes after the SEC ramped up enforcement actions and warnings against various crypto exchanges and individuals, including Coinbase. The SEC has taken action against Bittrex, Gemini, Genesis, Justin Sun, and Terraform Labs founder Do Kwon, accusing them of manipulating crypto assets.
Coinbase’s lawsuit against the SEC shows that regulatory clarity is necessary for the industry. The company argued that they are facing potential regulatory enforcement actions without knowing how the SEC believes the law applies to their business. This lawsuit could have significant implications for the crypto industry, as it may set a precedent for how the SEC regulates digital assets – and how companies respond – moving forward.
Bitcoin Bounces Back After Panic Selling
BTC recovered quickly from a fake news-induced bout of panic selling on April 26 that caused prices to fall 8% to around $27,200, with more than $200 million liquidated in under an hour.
The panic selling was caused by fake alerts from blockchain analytics firm Arkham Intelligence, which claimed that Bitcoin wallets linked to the U.S. government and seizures from the Mt. Gox hack had been revived. However, the news was a false alarm, and BTC regained 5% to trade at around $29,000 within hours.
Markets remain range-bound since their fall from 2023 highs of $1.34 trillion on April 16, with today’s dump and pump serving as a reminder of the impact that fake news or alerts on social media can have on crypto markets.
Thanks for reading! Check in next Friday for the next edition of this weekly quick take on Web3, crypto and blockchain discussing the week ahead!
