On November 29, Bitcoin (BTC) demonstrated resilience by maintaining its momentum at the $38,000 level, despite warnings of potential market corrections.
Bitcoin’s price trajectory continued to target new 18-month highs, as reported by data from Cointelegraph Markets Pro and TradingView.
It had previously reached highs matching those of the previous day, even surpassing $39,000 in futures markets.
The enthusiasm surrounding Bitcoin derivatives had led to debates about the possibility of large-volume traders leaving late long positions vulnerable at these elevated levels. Keith Alan, co-founder of monitoring resource Material Indicators, issued a word of caution to traders regarding what he referred to as “whale games.”
He highlighted an instance where liquidity at $38,000 was pulled to trigger a move to $38,500, emphasizing that it wasn’t necessarily a friendly gesture but rather a strategic move by large players.
Looking ahead, attention was focused on the words expected from Jerome Powell, the chair of the United States Federal Reserve, scheduled for December 1.
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Powell’s statements could potentially serve as an external catalyst for Bitcoin’s price, with the possibility of it surpassing the $40,000 mark.
However, it was noted that whales (large cryptocurrency holders) would likely be closely monitoring a key level at which to sell off their holdings.
A chart accompanying the article revealed that the sell-side liquidity in the order book was concentrated at $38,500, a level that had not been challenged at the time of writing.
Despite these considerations, some remained optimistic about the possibility of further short-term upside, suggesting that increased trading volume was all that was needed for a breakout toward the $40,000 threshold.
In the broader financial context, Bill Ackman, CEO and founder of hedge fund Pershing Square Capital Management, expressed his belief that the Federal Reserve might have to make a pivot on interest rates as early as the first quarter of 2024.
Ackman argued that failing to cut rates soon would increase the risk of a “hard landing” for the U.S. economy as inflation subsided.
Key U.S. macroeconomic data, including the Q3 GDP and the October print of the Personal Consumption Expenditures Index, were expected to play a role in shaping Fed policy decisions.
It’s important to note that the article does not provide investment advice and emphasizes the need for individuals to conduct their own research when making investment decisions.
The Philippines Securities and Exchange Commission (SEC) has issued a stern warning against cryptocurrency exchange giant Binance, asserting that the platform has been operating in the country without the requisite approvals or licenses.
The regulatory body’s announcement, dated November 28, disclosed that Binance lacks authorization to sell or offer securities within the Philippines.
According to the SEC’s statement, Binance, like any other exchange, is obligated to undergo registration and provide comprehensive details about the securities it offers to the public.
This information encompasses aspects such as issuance prices, the nature of the securities, and other pertinent data.
The Philippines’ Securities Regulation Code (SRC) mandates that securities issuers be registered within the country before being made available for investment.
Additionally, they are required to secure a secondary license for selling or offering securities to the public.
The SEC’s database revealed that Binance, the platform operator, is not registered as a corporation in the Philippines and operates without the essential license or authority to distribute any form of securities, as stipulated by Section 3.1 of the SRC.
In addition to operating without the necessary license, the SEC accused Binance of unlawfully promoting its services within the Philippines.
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The regulator cautioned that entities involved in promoting or trading on Binance could face criminal liability under Section 28 of the SRC.
This criminal offense carries severe penalties, including fines of up to 5 million Philippine pesos (approximately $90,300) or imprisonment of up to 21 years, or both, as stipulated in Section 73 of the SRC.
Despite prior warnings, Binance has apparently continued to be a prominent cryptocurrency trading platform in the Philippines. Some users had previously praised its local services as “reliable and stable” on social media platforms.
Interestingly, a Reddit commentator speculated that the Philippines authorities might follow the regulatory decisions of the United States SEC concerning Binance’s legal status.
Binance was facing legal action by the U.S. SEC at the time, and if it lost the case, it could potentially impact its operations in various countries, including the Philippines.
Notably, this development comes shortly after Binance’s CEO, Changpeng Zhao, pled guilty in a U.S. court for violating U.S. Anti-Money Laundering laws and subsequently stepped down from his position.
Moreover, in September 2023, the Philippines SEC had entered into a partnership with the U.S. SEC to jointly combat cryptocurrency-related fraud.
At the time of reporting, neither Binance nor the Philippines SEC had responded to requests for comment from Cointelegraph.
Thai cryptocurrency exchange Zipmex, currently facing financial turmoil, has unveiled a restructuring proposal that offers creditors an initial payout of 3.35 cents for every dollar owed, with the potential for increased payments in a recovery scenario.
This move comes as the exchange grapples with a substantial debt of $97 million owed to its customers.
According to a report from Bloomberg on November 29, Zipmex has outlined a plan that could potentially elevate the payout to 29.35 cents per dollar, contingent upon a successful recovery.
However, significant creditors have expressed their opposition to this proposed scheme, calling for an independent assessment of the company’s financial obligations.
While Zipmex CEO Marcus Lim did not confirm the specific details of the restructuring plan, he did highlight the existence of “inaccuracies” in the numbers reported by the media.
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Zipmex initially encountered financial difficulties in the summer of 2022 when the cryptocurrency exchange, operating primarily in Southeast Asia, sought bankruptcy protection in Singapore.
At that time, the company needed a period to devise a strategy to address its outstanding debt of $53 million to crypto lenders Babel Finance and Celsius.
Throughout this period, Zipmex repeatedly requested extensions of the debt moratorium from the Singaporean court.
According to Bloomberg, creditors will have the opportunity to vote on the current restructuring plan in early December.
In a separate development in November, Zipmex announced its intention to suspend all digital asset trading activities in Thailand by January 31, 2024.
This decision followed an ongoing investigation by Thailand’s Securities and Exchange Commission, which commenced in early 2023.
The future of Zipmex remains uncertain as it navigates its complex financial situation and attempts to find a viable path forward.
The fate of the proposed restructuring plan and the resolution of its debts will likely have a significant impact on the exchange’s future operations and its ability to recover from its current challenges.
A recent lawsuit filed by a group of FTX users alleges that the Mercedes-AMG Petronas F1 Team and Major League Baseball (MLB) played a role in facilitating fraud through their promotional partnerships with the crypto exchange, FTX.
These twin class-action lawsuits, filed in a Florida district court on November 27, accuse the organizations of aiding and abetting FTX Group’s massive global fraud, as well as promoting unregistered securities.
In 2021, Mercedes F1 entered into a promotional agreement with FTX, prominently displaying the exchange’s logo on various assets, including cars, uniforms, and hats.
In a groundbreaking move, MLB also signed a similar deal with FTX, becoming the first professional sports league to do so.
MLB umpires even wore FTX’s logo on their uniforms, marking a historic departure from tradition.
The class complaint filing highlights that the inclusion of FTX.US patches on MLB umpire uniforms represented a significant milestone in the sport’s long history.
Similarly, Mercedes F1 prominently featured FTX’s logo on its cars, merchandise, and marketing materials.
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The lawsuit suggests that FTX regularly cheered on and congratulated Mercedes F1 and its drivers, creating an illusion of trustworthiness among fans.
The same group of FTX users is pursuing legal action against celebrities who endorsed the exchange, including former sports stars like Shaquille O’Neal and Tom Brady, on similar grounds of promoting unregistered securities.
Some of these celebrities have sought to dismiss the lawsuits, asserting that they did not encourage users to deposit money on FTX.
However, a few, such as American footballer Trevor Lawrence and YouTubers Kevin Paffrath and Tom Nash, have reached settlements in their respective cases.
In a significant development, FTX’s founder and former CEO, Sam Bankman-Fried, faced convictions on seven charges related to fraud, conspiracy, and money laundering in November.
Furthermore, just a year after sealing their partnership deals, both MLB and Mercedes F1 terminated their contracts with FTX in 2022.
MLB ended its five-year promotional agreement with FTX shortly after the exchange filed for bankruptcy, while Mercedes F1 severed ties with FTX and removed its logo from its cars and merchandise.
These lawsuits and actions by prominent organizations and individuals underscore the growing legal scrutiny surrounding the cryptocurrency industry and its partnerships, as regulators and investors seek to ensure compliance and accountability.
Crypto investment platforms eToro and M2 have received approval to offer their services in the United Arab Emirates (UAE) from the ADGM Financial Services Regulatory Authority, which oversees the Abu Dhabi Global Market (ADGM), the UAE’s international financial center.
eToro has been granted a Financial Services Permission (FSP), enabling it to operate as a broker for securities, derivatives, and cryptocurrency assets in the UAE.
This approval marks a significant milestone in eToro’s global expansion journey, according to Yoni Assia, the company’s founder and CEO.
In September, eToro also received a Crypto Asset Service Provider (CASP) registration from the Cyprus Securities and Exchange Commission (CySEC), emphasizing the importance of securing European operating licenses for crypto companies aiming for worldwide growth.
On the other hand, cryptocurrency exchange M2 has obtained recognition as a fully regulated Multilateral Trading Facility (MTF) and custodian.
This allows M2 to onboard both UAE residents and institutional clients. M2’s services in the UAE encompass crypto custody, UAE dirham-based Bitcoin and Ether trading, and on/off-ramp services for the dirham.
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M2 CEO Stefan Kimmel views the timing of the license issuance as opportune, coinciding with a resurgence of positive investor sentiment.
The UAE has become increasingly attractive to international crypto players, as it continues to grant operational licenses.
Simultaneously, the ADGM’s registration authority has introduced comprehensive regulations for Web3 organizations in November.
These regulations, known as the Distributed Ledger Technology (DLT) Foundations Regulations 2023, are designed to provide regulatory clarity for blockchain foundations, Web3 entities, decentralized autonomous organizations (DAOs), and traditional foundations venturing into DLT.
Under these regulations, entities can establish a “DLT Foundation” by submitting a signed charter detailing the foundation’s initial assets, governance structure, and potential token issuance. A
dditionally, organizations must provide their white paper, tokenomics paper, and a link to a technical document known as a DLT Framework.
These measures aim to foster a regulatory environment that promotes transparency and accountability within the blockchain and Web3 space in the UAE.
Former BitMEX CEO, Arthur Hayes, has shed light on the recent $4.3 billion settlement paid by Binance, attributing it to the exchange’s explosive growth and defiance of traditional financial and political establishments.
Binance, founded by Changpeng “CZ” Zhao, admitted to violating U.S. laws regarding money laundering and terror financing.
In just six years since its inception in 2017, Binance has become the largest global exchange by trading volume, even ranking in the top 10 among traditional exchanges in terms of average daily volume, a testament to its burgeoning global influence.
Hayes contends that the financial and political elite became uncomfortable with intermediaries in the blockchain revolution being controlled by non-traditional actors.
Binance’s role in enabling regular individuals to easily own cryptocurrencies and intermediaries disrupted the established order.
Hayes emphasized that Binance allowed people to participate in the industrial revolution in under 10 minutes through desktop and mobile trading apps.
CZ and Binance bore the brunt of the U.S. Department of Justice’s enforcement actions, paying the largest corporate fine in Pax Americana history.
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Hayes juxtaposed this with previous mainstream banking scandals and the 2008 global financial crisis, where traditional institutions often escaped significant consequences.
Hayes then delved into the economic dynamics of China and the U.S., suggesting that Chinese capital may flow into Bitcoin in the coming years.
Chinese state-owned enterprises and investors, facing limited returns domestically, are seeking offshore investments.
Hayes quoted Peking University professor Michael Pettis, explaining that China’s debt investments don’t yield sufficient returns, prompting capital to enter global markets and support various risk assets.
Hong Kong’s recent approval of licensed cryptocurrency exchanges and brokers opens the door for Chinese companies and investors to purchase Bitcoin.
Having been a dominant force in Bitcoin mining in the past, many Chinese investors are familiar with the asset’s potential as a store of value.
On a macro scale, Hayes proposed that if China increases the availability and affordability of Chinese yuan-based credit, it could lead to a decline in the price of U.S. dollar-based credit.
This, in turn, might cause the prices of fixed supply assets like Bitcoin and gold to rise in dollar terms.
The global nature of fiat credit would likely drive capital into hard monetary assets like Bitcoin.
In conclusion, Hayes outlined a scenario where the success of Binance and changing economic dynamics, particularly in China, could drive significant capital inflows into Bitcoin and other hard assets in the future.
New Spanish legislation is set to require residents holding cryptocurrency assets on foreign platforms to report their holdings by March 31, 2024.
The Spanish Tax Administration Agency, commonly referred to as Agencia Tributaria, has introduced Form 721, a tax declaration form designed for virtual assets held abroad.
This new regulation was initially announced in the BoletÃn Oficial del Estado, Spain’s official state gazette, on July 29, 2023.
Starting from January 1, 2024, and continuing until the end of March, individuals and businesses are mandated to disclose the amount of funds they have stored in foreign crypto accounts as of December 31, 2023.
However, the reporting requirement applies only to individuals with crypto assets valued at over 50,000 euros, which is approximately $55,000.
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Those who hold their assets in self-custodied wallets are required to report their holdings using the standard wealth tax Form 714.
The Agencia Tributaria has intensified its efforts to ensure compliance among local crypto asset holders.
In April 2023, it sent out 328,000 warning notices to individuals who had failed to pay taxes on their crypto holdings for the 2022 fiscal year, representing a 40% increase compared to the previous year’s 150,000 warnings. In contrast, in 2021, there were only 15,000 notifications.
Spain is taking proactive steps to establish comprehensive regulations for the cryptocurrency sector.
In October, the Spanish Ministry of Economy and Digital Transformation announced that it would implement the Markets in Crypto-Assets Regulation, the European Union’s first comprehensive crypto framework, at the national level in December 2025, six months ahead of the official deadline.
Furthermore, in November, Spain’s primary financial regulator, the National Securities Market Commission, initiated its first case against a technology provider for breaching crypto promotion rules.
These regulatory developments reflect Spain’s commitment to ensuring the responsible and transparent use of cryptocurrencies within its borders.
Coinbase, the popular cryptocurrency exchange, has recently experienced a surge in its stock price, reaching an 18-month high.
This boost in share value coincided with the guilty pleas of Binance, a rival exchange, and its former CEO, Changpeng “CZ” Zhao, who admitted to charges related to money laundering and sanctions violations in the United States.
On November 27th, Coinbase’s stock closed at $119.77, marking its highest level since May 5, 2022, when it closed at $114.25, as reported by TradingView data.
Although there was little movement in after-hours trading, this recent performance has propelled Coinbase shares up by approximately 256.5% year-to-date.
However, it’s worth noting that the stock is still down 65% from its all-time high of nearly $343 on November 12, 2021.
This surge in Coinbase’s share price occurred shortly after Binance and its founder, CZ, pleaded guilty to charges related to money laundering, U.S. sanctions violations, and operating an unlicensed money-transmitting business.
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As part of the settlement, Zhao stepped down as CEO, and Binance agreed to comply with monitoring requirements from the U.S. Justice Department and Treasury Department for up to five years, amounting to a $4.3 billion settlement.
Coinbase has also benefited from the pending approval of U.S. spot Bitcoin and Ether exchange-traded funds (ETFs).
Analysis by Bloomberg ETF analyst James Seyffart reveals that Coinbase serves as the custodian for 13 out of 19 spot crypto ETFs currently awaiting approval from the U.S. Securities and Exchange Commission (SEC).
However, Coinbase is not without its challenges. The exchange is currently facing a lawsuit from the SEC, alleging that it failed to register with the regulatory authority and listed tokens that violated U.S. securities laws.
Coinbase had attempted to dismiss the lawsuit and questioned the SEC’s authority to oversee the cryptocurrency industry.
In summary, Coinbase’s stock has experienced a significant uptick in value following the legal troubles of its rival Binance and its founder.
The exchange’s involvement in pending cryptocurrency ETFs also contributes to its positive momentum, despite ongoing legal challenges with the SEC.
Vitalik Buterin, co-founder of Ethereum, has raised concerns about the unchecked advancement of super-advanced artificial intelligence (AI), suggesting that it could potentially become the next dominant species on Earth.
He emphasized that the outcome largely depends on how humans choose to intervene in AI development.
In a blog post dated November 27, Buterin, known for his influence in the cryptocurrency space, argued that AI differs fundamentally from previous inventions like social media, airplanes, or the printing press.
AI has the capability to create a new form of intelligence, which could pose a threat to human interests.
Buterin stated, “AI is a new type of mind that is rapidly gaining in intelligence, and it stands a serious chance of overtaking humans’ mental faculties and becoming the new apex species on the planet.”
One of Buterin’s key concerns is that superintelligent AI, if left uncontrolled, could potentially lead to the extinction of humanity, especially if it perceives humans as a threat to its survival.
He cited a survey conducted in August 2022 by over 4,270 machine learning researchers, who estimated a 5–10% chance of AI causing harm to humanity.
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Despite the extreme nature of these claims, Buterin believes there are ways for humans to maintain control over AI.
He proposed the integration of brain-computer interfaces (BCI) as a means to give humans greater influence over AI-based computation and cognition.
BCIs establish a communication pathway between the brain’s electrical activity and external devices, such as computers or robotic limbs.
This would significantly reduce the communication lag between humans and machines and ensure that humans retain a level of “meaningful agency” over AI-driven decisions.
By incorporating BCIs, humans could actively participate in every decision made by AI systems, reducing the incentive for AI to take autonomous actions that may not align with human values.
Buterin emphasized the importance of “active human intention” in directing AI towards outcomes that benefit humanity rather than purely focusing on profit.
In conclusion, Buterin acknowledged the remarkable progress of human technology throughout history and expressed hope that humans, as the brightest star in the universe, can continue to use technology to expand their potential.
He envisioned that human innovations like space travel and geoengineering would play a crucial role in shaping the future of life on Earth and beyond for countless years to come.
Bitcoin deposits and withdrawals have been reinstated on HTX, the cryptocurrency exchange previously known as Huobi, following a devastating $30 million security breach that occurred on November 22.
In an official blog post dated November 26, HTX announced the resumption of deposit and withdrawal services for several cryptocurrencies, including Bitcoin (BTC), Ethereum (Ether), Tron, and Tether (USDT).
Justin Sun, the prominent figure associated with HTX, shared a subsequent update on X (formerly Twitter), revealing HTX’s intention to progressively restore functionality for the remaining cryptocurrencies. Sun expressed optimism that this process would be completed “by next week.”
The recent security incident marked the fourth hack in just two months to afflict crypto platforms linked to or controlled by Justin Sun.
HTX’s exchange hot wallets suffered a massive $30 million loss during this latest breach.
Additionally, on the same fateful day, the HTX Eco Chain bridge, involving HTX, Tron, and BitTorrent, all entities associated with Sun, fell victim to an $86.6 million cyberattack.
Another Sun-owned cryptocurrency exchange, Poloniex, faced its own ordeal when it experienced a $100 million attack on November 10.
Blockchain security firm CertiK indicated that this incident likely resulted from a compromise of private keys.
The series of security breaches dates back to September 24, shortly after the rebranding of Huobi to HTX.
During this earlier attack, an assailant made off with nearly $8 million worth of cryptocurrencies from the exchange’s hot wallet.
These security breaches have raised significant concerns within the cryptocurrency community, highlighting the vulnerability of platforms and the pressing need for robust security measures in the ever-evolving landscape of digital assets.
HTX’s efforts to restore services and enhance security are a crucial step in regaining trust and stability for its users and the broader cryptocurrency market.