Crypto News Recap: Ether Outperforms BTC, Biden Freezes FinCEN’s Proposed Crypto KYC Regulations

Published January 25th, 2021 - 07:15 GMT
Crypto News Recap: Ether Outperforms BTC, Biden Freezes FinCEN’s Proposed Crypto KYC Regulations
Bitcoin managed to climb back above the $32,000 mark which now forms key support for the flagship coin's movements. (Art work by Rami Khoury- Al-Bawaba)
Highlights
Here are the market highlights for the week.

The world’s first truly digitized currency plummeted almost 5.18% over the past seven days as sellers are seeking to take the profits of their investments. Also, analysts at QCP Capital warn of what they called 'institutional exhaustion' meaning that institutional traders are minimizing their cash inflow into the BTC market.

Source: coinmarketcap.com

Nonetheless, Bitcoin managed to climb back and recover above the $32,000 mark which now forms key support for the flagship coin's movements. 

Altcoins

Ethereum  (trading at $1,430 at press time) outperformed BTC as it soared sharply by  almost 19.50% last week. Things are looking great nowadays for the world’s second-largest cryptocurrency by market cap.

The overall altcoin market is looking relatively stable considering what's happening with Bitcoin.

Source: coinmarketcap.com

Biden Orders Halt of FinCEN’s Proposed Crypto KYC Regulations

On his very first day in the office after his inauguration, the newly elected US president decided to freeze all federal regulatory processes including Financial Crimes Enforcement Network’s (FinCEN) proposed crypto Know Your Customer (KYC) Regulations for 60 days.

This is good news to all crypto operators in the US as Biden wants to ensure that ‘his appointees or designees have the opportunity to review any new or pending rules’, the announcement reads.

Per the regulations that were issued last December by Steven Mnuchin, Secretary of the US Treasury Department, crypto exchanges were required to verify the identity of the wallet owner if the transaction exceeds $3,000 and was proposed to limit the involvement of digital assets in illegal activities.

Ripple Hopes Biden will be a More Crypto-Friendly President 

After its recent fall from grace due to SEC’s lawsuit, Ripple crosses fingers hoping that the administration of the newly elected president will approach the crypto in a friendlier manner than the former’s.

It's worth mentioning that Biden has tapped the crypto flag-waver Gary Gensler, a former member of Ripple’s board of advisors whose resume and Bloomberg profile says he has experiences in Wall Street, government regulation, and cryptocurrencies and blockchain, to lead the Securities and Exchange Commission (SEC).

Ripple’s CEO Brad Garlinghouse welcomed the news with this tweet:

Miners Suffers Mining Chips Shortage as Demand Soars

Bitcoin miners are searching in every nook and cranny to find more mining chips as the global demand rises to unprecedented levels.

According to a report by Reuters on Friday, this high demand sent the prices for the mining rigs to the moon. 

This global shortage of chips didn’t only affect the mining industry but also extended to even hit the automotive industry as Ford decided to halt production for a month due to this issue. The demand boomed due to the higher crypto prices as everyone wants to mine bitcoin.

In an interview with Reuters, Chipmaker Samsung Electronics Co said that the company ‘would also prioritize supplies to sectors such as consumer electronics, whose chip demand is seen as more stable’. However, sources told the opposite to Bloomberg, as Samsung is mulling to build a facility in Texas, US $10B chips in the future.

The Central Bank of Central Banks to Create CBDC Settlement Platform

The Bank for International Settlements (BIS), the international financial institution owned by 63 central banks that "fosters international monetary and financial cooperation and serves as a bank for central banks", has decided to create a ‘platform for settling cross-border payments using multiple wholesale CBDCs’, according to an announcement

The BIS will explore the potentials of the CBDCs while facilitating the purchase, exchange, transaction between regulated banks and payment services around the world. 

As we previously mentioned, BIS is also working on ‘Project Helvetia’ jointly with the Swiss National Bank to explore the integration of the tokenized digital assets into the central bank money.

Events to Keep An Eye On:
European Blockchain Conference Barcelona 2021 (Jan 25, 2021 - Jan 26, 2021) in Catalonia, Spain
 

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