Author: Faith Yakubu

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Nadeem Anjarwalla, a Binance executive detained by Nigerian authorities, has reportedly escaped custody, confirmed by Binance to CryptoSlate. Meanwhile, Tigran Gambaryan, another detained Binance executive and US citizen, remains in custody.

A representative from Binance confirmed that Nadeem is no longer held in Nigerian custody. The company’s foremost concern remains the safety of its employees, and efforts are underway in cooperation with Nigerian authorities to swiftly address this matter.

The Nigerian authorities have levied tax evasion charges and complicity in tax fraud against Binance Holdings and the detained executives, with the case pending trial at the Federal High Court.

Anjarwalla, a dual citizen of Kenya and the UK, reportedly absconded on March 22 during Friday prayers at a mosque in Abuja. He purportedly used a Kenyan passport to board a flight operated by a Middle Eastern airline, raising questions about how he obtained this passport as he possessed no travel documents except his British passport when taken into custody.

Speculations suggest Anjarwalla might have planned his escape, potentially leveraging privileges granted during detention, such as access to telephones. While Nigerian authorities have not released an official statement, covert operations are speculated to be ongoing to ascertain his location and facilitate his return to custody.

This development further complicates tensions between Nigeria and Binance, with authorities accusing the exchange of exacerbating foreign exchange challenges and manipulating rates for personal gain. The exchange’s website has been blocked, and two senior executives were detained in an attempt to address concerns.

Despite a High Court directive for Binance to provide data related to Nigerian users to the Economic and Financial Crimes Commission (EFCC), the exchange has not yet complied. The detention of executives has drawn condemnation from international crypto organizations, particularly in the US and Kenya, criticizing the actions of the Nigerian government.

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Bored Ape Yacht Club #9258, previously owned by comedian Kevin Hart, was recently traded for approximately 13.26 ether ($46,200) on Blur, a non-fungible token exchange. This transaction marks a significant decrease from the price Hart originally paid for it over two years ago.

In January 2022, Hart acquired the Bored Ape, adorned with a colorful propeller hat, for 79.5 ether, equivalent to over $200,000 at the time, as per data from Blur.

Hart’s purchase was facilitated by crypto startup MoonPay, which reportedly aided several celebrities, including Justin Bieber, Madonna, and Jimmy Fallon, in obtaining BAYC NFTs. MoonPay’s assistance often came in exchange for promotional activities, although the company denied providing Bored Ape NFTs for free.

However, in December 2022, Hart, MoonPay, Bored Ape creator Yuga Labs, and numerous celebrities were embroiled in a class-action lawsuit filed by Scott + Scott, a California-based law firm. The lawsuit alleged a scheme of undisclosed celebrity endorsements, with auction house Sotheby’s added to the list of defendants last summer.

Since its launch in 2021, the Bored Ape Yacht Club has symbolized the non-fungible token market. Nonetheless, the collection has experienced a decline in floor price, reaching around 14 ether on March 23, down from a peak of over 150 ether in May 2022, according to CoinGecko data.

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The London Stock Exchange (LSE) has designated May 28 as the start date for trading in Crypto Exchange-Traded Notes (ETNs). Only professional investors will have authorization to engage in trading activities related to these ETNs. ETN issuers have until April 15 to submit their plans, ensuring eligibility for trading commencement in May.

The LSE decided to commence trading on May 28 after careful consideration. It allows sufficient time for ETN issuers to meet the requirements outlined in the Crypto ETN factsheet. Additionally, it provides issuers planning to admit securities on the launch date ample time to prepare documentation, including the approval of a base prospectus by the Financial Conduct Authority (FCA), as stated in a market notice released by the LSE on Monday.

One of the requirements specified in the Crypto ETN factsheet is that Crypto ETNs admitted to trading on the LSE are solely appropriate for professional investors and are available under trading segments designated exclusively for “Professional investors only.”

ETNs function as debt securities that track an underlying asset. Consequently, Crypto ETNs will enable investors to trade securities reflecting the performance of crypto assets on the exchange.

While similar-styled Bitcoin exchange-traded funds (ETFs) launched in the U.S. in January have amassed $54 billion in assets under management, UK investors currently need access to these offerings. Notably, the UK Financial Conduct Authority (FCA) recently stated that it would not impede plans from Recognized Investment Exchanges (RIEs) like the LSE to list crypto ETNs.

To qualify for trading, ETN issuers must meet the deadline of April 15, as outlined in the LSE notice, and gain approval by May 22.

The impending availability of crypto exchange-traded notes has been viewed positively by industry leaders in the UK. Coinbase UK CEO Daniel Seifert and Kraken UK Managing Director Bivu Das expressed optimism about the potential benefits of offering Bitcoin ETFs in the UK, emphasizing the importance of consumer choice.

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A year ago, the cryptocurrency industry was grappling with layoffs and regulatory challenges, while trading activity had significantly dwindled. Fast forward to 2024, and the narrative has dramatically shifted from doom and gloom to ETF-fueled optimism, with Coinbase (NASDAQ:COIN) emerging as a standout performer. The company’s stock has surged by nearly 70% this year to approximately $265, garnering praise from analysts at JPMorgan.

Reflecting on previous crypto bull markets, it’s worth noting that the industry’s highs and lows can be subject to exaggeration. Coinbase CEO Brian Armstrong has consistently emphasized that both the downturns and upswings in crypto markets are often overstated. This sentiment holds not only for crypto but for markets in general.

As for Coinbase, recent developments have been overwhelmingly positive. The company’s stock rally, coupled with a renewed focus on product excellence from its leadership, has garnered widespread attention. Armstrong’s shift away from cultural controversies and towards product enhancement has been particularly noteworthy. Coinbase’s role as a Bitcoin custodian for institutional giants like BlackRock and Fidelity, along with the success of its Base blockchain, has further solidified its position in the market.

JPMorgan’s bullish report, which includes a $300 price target for Coinbase, highlights the growth potential in the exchange and custody services offered by the company. Additionally, the report anticipates Coinbase’s involvement in the evolving landscape of blockchain use cases. However, it’s essential to temper this optimism with a dose of reality.

While Coinbase is indeed innovating in blockchain services, regulatory hurdles, particularly from the SEC, pose significant challenges. Thinning margins constrain the profitability of Coinbase’s exchange and custody services, while regulatory constraints hinder the monetization of blockchain-related offerings like Base.

Nevertheless, JPMorgan’s analysts spotlight one area of Coinbase’s business with substantial growth potential—the offshore derivatives platform, which is reportedly scaling rapidly. This segment represents a lucrative opportunity for Coinbase, as it caters to traders seeking highly leveraged positions. In the short term, this aspect of Coinbase’s business warrants close observation.

In summary, while JPMorgan’s optimism towards Coinbase is justified in some respects, it’s crucial to maintain a balanced perspective considering the regulatory and operational challenges inherent in the cryptocurrency industry.

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Bitcoin has bounced back above the $70,000 mark, signaling resilience among cryptocurrency enthusiasts in the face of recent outflows from US exchange-traded funds (ETFs).

On Monday, most digital assets experienced gains, with Bitcoin surging as much as 5.8% to reach $70,014, marking its return to the $70,000 level after more than a week. Ether also saw an increase of around 5%, while Solana and Dogecoin recorded gains of over 4%.

Last week, approximately $900 million was withdrawn from these ETFs, reflecting ongoing outflows from the Grayscale Bitcoin Trust, as well as reduced subscriptions for offerings from BlackRock Inc. and Fidelity Investment. This trend resulted in one of the worst-performing weeks of the year for the group of 10 funds since their launch in January.

Nathanaël Cohen, co-founder at digital-asset hedge fund INDIGO Fund, noted, “Even though ETF inflows have hit a drag, order books are loaded on the bid side around the 60k area, showing that the market is eager to buy the dip.” He emphasized the importance of obtaining liquidity at lower levels to fuel upward momentum.

The recent demand for Bitcoin ETFs has been a significant factor driving the cryptocurrency’s historic rally this year. Strong inflows into these funds have fueled optimism about the asset class’s exponential growth among a broader range of investors. However, last week’s substantial outflows prompted traders to hedge against lower prices and led to significant liquidations in leveraged bullish positions in the crypto futures market.

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The cryptocurrency market concluded the week with a downward trend, witnessing Bitcoin (BTC) slipping below $64,000 again, while altcoins also recorded losses amidst profit-taking activities by traders preparing for the next significant uptrend.

Similarly, stocks faced pressure after a Thursday rally pushed all three major indexes to new record highs, driven by expectations of lower interest rates. At the market close, the S&P and Dow finished in negative territory, down by 0.14% and 0.77%, respectively, while the Nasdaq managed to recover from losses, ending the day up by 0.16%.

Despite stock investors celebrating the new record highs, crypto investors took a subtle jab at the achievement. While Bitcoin has experienced a more than 13% decline from its recent peak, the S&P has only seen a roughly 0.5% downturn. It’s worth noting that since 2014, Bitcoin’s price has surged by over 29,000%, while the S&P has risen by 195%, with gold’s price witnessing an increase of 91.5% during the same period.

As of the time of writing, BTC is trading at $63,570, marking a 2.3% decline over the 24-hour chart.

Market analyst CryptoChiefs noted, “After Bitcoin continued to bleed throughout yesterday, we saw a nice reaction from the previous week’s Low at $64.6k,” suggesting the formation of an inverse head and shoulders pattern, with resistance seen around the Monday low at $65.6k.

Despite the drop in Bitcoin’s price, Poppe highlighted BlackRock’s consistent inflow in the Spot Bitcoin ETF, indicating continued institutional buying, which signals that the cycle is far from over.

Looking ahead, Rekt Capital outlined the Pre-Halving Retrace, setting up a future Post-Halving Re-Accumulation Range, paving the way for the future Parabolic Upside phase of the cycle.

In the altcoin market, DeXe (DEXE) led with a 21.9% gain, followed by DAO Maker (DAO) with a 16.2% increase, and Aptos (APT) with an 11.5% gain. Conversely, Echelon Prime (PRIME) dropped by 9.3%, while Raydium (RAY) and Flux (FLUX) declined by 8% and 7.7%, respectively.

The overall cryptocurrency market cap stands at $2.43 trillion, with Bitcoin’s dominance rate at 51.7%.

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Worldcoin, a project aimed at empowering users, is rolling out a new feature called “Personal Custody,” which eliminates the option for users to store their biometric data. Under this initiative, individuals signing up for a World ID will no longer have their biometric data stored and encrypted by default. Instead, the data will reside on users’ devices, giving them full control over its usage, including the option to delete it if desired.

The introduction of Personal Custody marks a significant step in Worldcoin’s commitment to privacy and transparency. While the project has always emphasized the protection of users’ biometric data during verification, this new approach aims to build further trust among potential users.

Tiago Sada, Head of Product, Engineering, and Design at Tools for Humanity, the primary software contributor to Worldcoin, emphasized the importance of user control over their data. He stated that while data deletion was previously the default option, the implementation of Personal Custody ensures that users have complete autonomy over their data, thus providing them with greater peace of mind.

Worldcoin’s recent move towards Personal Custody comes amid scrutiny from government agencies and regulators. Despite facing challenges, including a temporary ban in Spain and scrutiny over token distribution, Worldcoin remains committed to enhancing user privacy and security.

Before the rollout of Personal Custody, users had the option to either delete their biometric data immediately after verification or allow Worldcoin to encrypt and store it in secure data stores. With the elimination of the Data Custody option, Personal Custody puts data control firmly in the hands of users.

In addition to Personal Custody, Worldcoin is also increasing transparency by making key components of its Orb software publicly available on GitHub. This move aims to bolster transparency and verifiability, aligning with the project’s commitment to openness and accountability.

By prioritizing user empowerment and transparency, Worldcoin continues to advance its mission of providing a secure and inclusive platform for individuals worldwide.

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Gary Gensler, Chair of the Securities and Exchange Commission (SEC), reiterated his stance on the need for transparency in the crypto markets, suggesting they could benefit from some “disinfectant.”

Speaking at the Columbia Law School conference on Friday, Gensler emphasized the importance of disclosures in financial markets, including those related to climate and cyber risks. He argued that disclosures contribute to more efficient markets and safeguard investors’ interests.

In his prepared remarks, Gensler pointed out that some participants in crypto securities markets seek to evade registration requirements, resulting in a lack of mandatory disclosure. He suggested that introducing more transparency could improve the integrity of the crypto markets.

Gensler has consistently stressed that crypto firms must adhere to the same regulatory standards as traditional financial institutions. Over the past year, the SEC has taken action against platforms like Coinbase and Kraken for allegedly operating without proper registration.

The SEC’s recent focus on disclosures extends beyond crypto, with Gensler highlighting the importance of disclosures related to executive compensation, climate risks, and cyber risks. Earlier this month, the SEC voted to adopt rules requiring companies to disclose climate-related risks.

During a question and answer session, Gensler emphasized the role of both the SEC and the Commodity Futures Trading Commission (CFTC) in regulating crypto. He acknowledged that the agencies have different perspectives on whether certain cryptocurrencies, like ether, should be classified as securities or commodities.

While there appears to be some disagreement between the SEC and the CFTC regarding the classification of ether, Gensler and CFTC Chair Behnam maintain regular communication to ensure effective regulation. Behnam has stated that ether is a commodity, while the SEC’s stance on the matter remains less clear.

Behnam has also raised concerns that conflicting classifications could create compliance challenges for market participants. If the SEC were to classify ether as a security, it would potentially conflict with CFTC regulations, impacting registrants who list ether as a futures contract.

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WisdomTree has achieved regulatory clearance from the New York State Department of Financial Services (DFS) to operate its digital asset business in the state, placing it among a select group of entities approved in one of the United States’ most rigorous crypto regulatory environments.

The Bitcoin exchange-traded fund (ETF) issuer obtained a charter to function as a limited-purpose trust company under the New York Banking Law, as announced in a statement on March 22. This charter paves the way for the introduction of its WisdomTree Prime platform in the state.

With this charter, WisdomTree is authorized to engage in fiduciary custody of digital assets, including providing digital wallet services, facilitating stablecoin trading, and managing stablecoin reserves, subject to DFS oversight.

Jonathan Steinberg, WisdomTree’s Founder and CEO, underscored the significance of the license in enabling the firm to offer innovative products while prioritizing customer safeguarding. He emphasized that the New York State Department of Financial Services holds a leading position as a regulator for businesses involved in digital asset activities. Additionally, he highlighted the importance of the well-established trust company charter program, which existed before the emergence of digital assets. This program is founded on rigorous banking regulations, allowing the company to introduce innovative products while ensuring customer protection remains paramount.

New York boasts one of the most stringent crypto regulatory frameworks in the United States, necessitating registration and licensing for crypto-related entities. Over the past year, the state has taken legal action against several crypto platforms, including Gemini and the now-defunct Genesis crypto lender, for breaching local regulations.

WisdomTree Prime Platform

The regulatory approval also sets the stage for the rollout of the WisdomTree Prime platform, which will offer a suite of products within the WisdomTree Prime ecosystem, including the issuance of WisdomTree Gold and Dollar Tokens.

The mobile platform will provide users access to cryptocurrencies, digital gold, and various digital funds, creating an integrated ecosystem for saving, spending, and investing on-chain. Leveraging the firm’s trust charter and fiduciary powers will enhance customer protection, particularly regarding asset storage.

Will Peck, CEO of WisdomTree Digital Trust Company, expressed confidence in the company’s product lineup and responsible growth strategy.

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The US Securities and Exchange Commission (SEC) has intensified its examination of Ethereum, inadvertently rallying the cryptocurrency community against it.

Ripple CEO Brad Garlinghouse confidently stated that the SEC would ultimately lose its battle against Ethereum. In a post on March 22 on social media platform X (formerly Twitter), Garlinghouse highlighted that the financial watchdog failed in its classification attempt of his company’s XRP token and is likely to face a similar outcome in its efforts to classify ETH as security. He mentioned that the SEC is engaging in disputes with the industry and is experiencing significant losses in court battles. Additionally, they are currently in conflict with other regulators such as the CFTC, and are trailing behind international counterparts.

Echoing Garlinghouse’s sentiments, Ripple’s Chief Legal Officer Stuart Alderoty suggested that the US Congress should halt funding for this “insanity.”

SEC’s Investigation of Ethereum

Recent reports revealed that the SEC, led by Gary Gensler, is investigating entities associated with Ethereum, such as the Ethereum Foundation, in an attempt to classify ETH as a security. This move sparked significant backlash from both the crypto community and US legislators, who expressed concerns about the SEC’s aggressive stance toward the burgeoning industry.

Paul Grewal, Coinbase’s Chief Legal Officer, highlighted numerous instances where the SEC and its representatives have referred to Ethereum as a commodity. He pointed to statements from former high-ranking SEC official William Hinman, as well as congressional hearings and testimony from Gensler before his tenure as SEC chair, which indicated that the digital asset was not considered a security. Additionally, Grewal noted instances where SEC lawyers attempted to draw comparisons between ETH and BTC.

Community Sentiments and Ripple’s Support

Notably, Ripple executives’ endorsement of Ethereum comes as unexpected, given the historical friction between the XRP community and ETH. For years, XRP supporters have alleged that Ethereum received preferential treatment from the SEC due to its non-classification as a security by former SEC official Hinman, arguing that this contributed to Ethereum’s widespread adoption and subsequent development.

Moreover, past negative remarks about XRP from Ethereum co-founder Vitalik Buterin further fueled animosity between the two projects.

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