Welcome to Around the Blockchain, Huobi Learn’s daily rundown of the crypto markets.
Terraform Labs founder Do Kwon has said the Bitcoin market is “liquid” enough to handle any potential de-pegging of its stablecoin, UST. He pointed out that BTC “turns over more than $20 billion per day” and would be “even more liquid” over time, adding that after an initial $3 billion ‘bootstrap’ BTC purchase, Terra’s BTC reserve would add more BTC through seigniorage. He also highlighted Terra’s status as a decentralized stablecoin in contrast to “centralized collateral” such as “bonds, Tether stablecoin or Circle’s USDC”, saying whoever held “the largest amount of these reserves would be subject to censorship”, which would “defeat the entire purpose of having decentralized stablecoin”.
US Securities and Exchange Commission (SEC) chair Gary Gensler has said the SEC aims to exercise greater regulatory oversight of the crypto market to shield investors from scams. He said the SEC would partner with the Commodity Futures Trading Commission to address platforms trading both crypto-based security tokens and commodity tokens, and would assess if crypto platforms should be treated more like retail exchanges. He also expressed concern regarding stablecoins, saying crypto platforms owning stablecoins created potential “conflicts of interest and market integrity questions that would benefit from more oversight”.
Singapore has approved a law requiring virtual asset service providers (VASPs) in the country that only do business overseas to be licensed. Under the city-state’s Financial Services and Markets Bill, the Monetary Authority of Singapore (MAS) will be given greater authority to prevent individuals deemed unfit from performing key roles and activities in the financial sector, including those providing payment and risk management services. The bill also covers a higher maximum penalty of $737,050 on financial institutions that experience cyber attacks or service disruption.
The People’s Bank of China (PBOC) will be testing its digital currency in more cities — Tianjin, Chongqing, Guangzhou, Fuzhou, Xiamen and 6 cities in Zhejiang — as its digital yuan, e-CNY, now has over 261 million users. These new pilot cities will add to the 10 major cities e-CNY is already being tested in, including Shenzhen, Shanghai, Hainan, Qingdao and Suzhou. At the same time, Hong Kong plans to introduce a pilot scheme for the use of e-CNY for dining and shopping, said Hong Kong Monetary Authority (HKMA) CEO Eddie Yue.
Coinbase is focusing on expanding India’s crypto and Web3 ecosystem in India, with CEO Brian Armstrong saying this can “help accelerate India’s economic and financial inclusion goals”. He said Coinbase Ventures had already “invested $150 million in homegrown Indian tech companies in the crypto and Web3 space” and had over 300 full-time employees at its Indian tech hub, with plans to hire “over 1,000 people” in India this year alone. The crypto exchange will host a “crypto community event” in Bangalore this Thursday to “discuss the future of crypto and Web3 in India”.
Several users of hardware wallet maker Ledger have filed a class-action lawsuit alleging that Shopify failed to prevent a massive data breach in 2020 and that its third-party data consultant TaskUs leaked their personally identifiable information (PII). The plaintiffs claim both TaskUs and Shopify (which had direct access to Ledger customers’ PII through Ledger’s use of Shopify to run its online store) were aware of the breach for more than one week before notifying customers. Their complaint states that this failure to protect customer data has led to “targeted attacks on thousands of customers’ crypto assets” and they are now are demanding the exact details of the leaked information, as well as a monetary reward that covers actual and punitive damages.
Show me the money
BTC and ETH remained mostly stagnant yesterday amid muted trading action from investors, with the former seeing a slight decrease of 1.3% from $47,300 on Sunday to $46,700 on Monday. Most other major cryptocurrencies were in the red: SOL and AVAX fell by approximately 4% and DOT by around 3%, though LUNA saw a 3% increase.