Binance trading volumes rise despite regulatory crackdown

Web Desk BOL News

05th Oct, 2021. 01:54 pm
Crypto

RIYADH: Trading volumes at cryptocurrency exchange Binance soared between July and September, suggesting a recent crackdown by regulators across the globe has had little impact on the platform’s business, Arab News reported.

Worried about consumer protection and the standard of anti-money laundering checks at crypto exchanges, regulators from Britain and Germany to Hong Kong and Japan have in recent months ratcheted up pressure on Binance.

Some have banned the platform from certain activities, while others have warned consumers it was not licensed to operate in their jurisdiction. Binance has in response tightened anti-money laundering checks and cut its product line-up.

Yet Binance’s spot cryptocurrency trading volumes totaled $789 billion in September versus $454 billion in July, data from UK researcher CryptoCompare compiled for Reuters showed, with Binance cementing its status as the world’s biggest digital asset platform.

Derivatives volumes jumped almost 25 per cent to $1.7 trillion, the data showed. A Binance spokesperson declined to comment.

New legislation

The Wall Street Journal reported on Monday that the Federal Reserve is set to begin reviewing the risks and opportunities related to introducing a central bank digital currency as early as this week.

Federal Reserve officials will also release a paper requesting public comment on the matter. Federal Reserve Chairman Jerome Powell referred to the development of the digital dollar as “critical work” last week during a Senate Banking Committee hearing, adding that it would require legislation from Congress in order to move forward.

However, the decision to launch a central bank digital currency will only be made if there are clear and tangible benefits that outweigh any costs and risks. according to a report by the Wall Street Journal, according to the report.

Mining

Nasdaq-listed Marathon Digital Holdings Inc. has secured a $100 million revolving credit line with Silvergate Bank in bitcoin and dollars.

The loan will be used to fund the company’s Bitcoin mining operations and acquire new equipment.

It also will be available for one year and can be renewed annually by agreement between Silvergate Bank and Marathon.

Marathon Digital said it has received 26,960 top-tier ASIC mining machines from Bitmain so far this year, with an additional 8,459 ASIC miners currently in transit. Its current mining fleet stands at 25,272 active miners producing approximately 2.7 EH/s.

Bitcoin is the new gold

Chamath Palihapitiya, Virgin Galactic chairman and CEO of Social Capital, said bitcoin has already taken the place of gold.

He also predicted that the price of the cryptocurrency would reach $200,000, adding that the market value of bitcoin would increase.

“It’s very hard for me sitting here to give you a price prediction, but I can pretty confidently say that bitcoin, I think, has effectively replaced gold. And it will continue to do so. And so that market cap is just going to grow,” Palihapitiya told CNBC.

Trading

Bitcoin, the leading cryptocurrency, traded lower on Monday, falling by 0.49 per cent to $47,678.20 at 6:50 p.m.Riyadh time.

Ether traded at $3,324.81, down by 2.38 per cent, according to data from CoinDesk.

Adsence 300X250