Binance Co-Founder Calls Out Elon Musk to Curb Spread of Crypto-Related Fake News on X

Crypto scammers seem to be on an expansion drive now that the digital assets sector is logging growth in several regions around the world. Yi He, the co-founder of Binance called out Elon Musk over the weekend to take measures to ensure that the spread of fake crypto-related news on X is dealt with proactively. The Binance executive found herself embroiled in an impersonation scam recently, wherein her identity was being used to promote a fake crypto token on X.

In a post published on X, He said that she has not issued any crypto tokens called MemeCoins. She has clearly instructed her followers as well as members of Binance’s crypto circle to not bite the bait and invest in this scam token.

Calling out to Musk, the chief of X, He wrote, “Many people were tricked by this hacker link and lost a significant amount of money today. Is there any way to address this issue Elon Musk?” The screenshots shared by He also showed her crypto handle as well as her name being impersonated.

Musk, who is otherwise very active on X, has not posted any response to He’s question so far.

In March this year, Scam Sniffer said in its crypto phishing report that about 57,000 victims lost approximately $47 million (roughly Rs. 392 crore) to crypto phishing scams – with most percentage of scams facilitated by scammers working on X.

In February this year, the X account of MicroStrategy was hacked, through which the airdrop of a scam MSTR crypto token was promoted. Since MicroStrategy is a pro-Bitcoin business intelligence firm, several people believed the token airdrop was legitimate and ended up engaging with malicious links. At the time, market analysers like Scam Sniffer and ZachXBT had estimated that this scam had managed to steal around over $440,000 (roughly Rs. 3.6 crore).


The X account of Blockchain Capital was also hacked last year to promote another scam token BCAP. In fact, He herself had sounded an alert about the rising number of crypto scams stirring on X in January this year.

When Musk acquired X from its founder Jack Dorsey in April 2022, he said ridding the social networking platform of crypto-related market manipulating bots and scammers was among his top priorities. Despite the changes that he introduced to the platform; crypto scammers are still misusing the platform to connect with potential victims.

Affiliate links may be automatically generated – see our ethics statement for details.

Crypto Price Today: Bitcoin and Ether Remain Stagnant, Minimal Gains Seen Across the Market

The price of Bitcoin failed to record any notable changes over the weekend. At the time of writing, the most expensive asset on the crypto chart was trading at $63,200 (roughly Rs. 52.8 lakh) on foreign exchanges such as CoinMarketCap, after seeing a drop of 0.26 percent. On Indian exchanges meanwhile, the value of BTC is slightly higher at $68,540 (roughly Rs 57.2 lakh). Despite BTC’s prolonged lacklustre performance on the price chart, the asset has recently received appreciation from billionaires like Jack Dorsey and Michael Dell, the founder, chairman, and CEO of Dell Technologies.

Ether tumbled by 1.12 percent on Monday. With this, Ether’s price point has come to $3,171 (roughly Rs. 2.65 lakh), as shown on Gadgets360’s crypto price chart. The second most valued crypto asset after BTC, ETH is presently trading at $3,423 (roughly Rs. 2.86 lakh) on international exchanges.

Currently, the dominance of BTC and ETH on the overall market stands at 54.1 percent and 18.2 percent respectively, shows CoinMarketCap.

“As per the media reports, the US Commodity Futures Trading Commission (CFTC) is investigating Jump Crypto and it remains to be seen if CFTC will consider any charges against the company. The negative news showed immediate impact on the crypto market as BTC and ETH slipped in prices,” Shivam Thakral, CEO of BuyUcoin told Gadgets360.

Most cryptocurrencies logged losses on Monday. These include Binance Coin, Solana, Dogecoin, Cardano, Shiba Inu, and Avalanche.

Price dips also struck Polkadot, Chainlink, Near Protocol, Polygon, Litecoin, Cosmos, Stellar, and Cronos among others.

“The market is expected to remain choppy in the coming weeks owing to the uncertain macroeconomic factors,” Thakral added.

The overall crypto market valuation dropped by 2.06 percent in the last 24 hours. The sector’s market cap is currently at $2.3 trillion (roughly Rs. 1,92,15,131 crore), as per CoinMarketCap.

Only a small number of cryptocurrencies managed to see profits. These include Tron, Uniswap, Leo, Iota, and Braintrust.

Market experts, however, believe that these stagnated prices for cryptocurrencies will not last long.

“In a significant development, Standard Chartered, a major global bank, is establishing a spot trading desk for Bitcoin and Ethereum. This move reflects the growing institutional adoption of digital assets, with major financial institutions expanding their crypto offerings to meet rising demand,” the CoinSwitch Markets Desk told Gadgets360.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article. 

Affiliate links may be automatically generated – see our ethics statement for details.
Bitcoin Surges Amid EU’s MiCA Law Rollout; Altcoins Also See Profits Due to Market Optimism

Bitcoin on Monday, July 1 showed price hikes on foreign as well as local exchanges. As per CoinMarketCap, the most expensive crypto asset grew by 4.26 percent over the last day to trade at the price point of $63,373 (roughly Rs. 52.8 lakh) on international exchanges. Internationally, BTC was trading at $61,637 (roughly Rs. 51.4 lakh) on global exchanges last week. This is the first time in over a month that BTC has breached the mark of $63,000 (roughly Rs. 52.5 lakh). Meanwhile on Indian exchanges like WazirX and CoinSwitch, the current value of BTC stands at $68,110 (roughly Rs. 56.8 lakh).

Ether stepped into July trading at $3,491 (roughly Rs. 2.91 lakh) on foreign exchanges. Over the last week, ETH has managed to grow in prices by $43 (roughly Rs. 3,587). The value of ETH in India, meanwhile, stands at $3,236 (roughly Rs. 2.70 lakh) as shown on the crypto price chart by Gadgets360.

“The EU’s new Markets in Crypto-Assets (MiCA) regulation has taken effect, providing comprehensive legal and regulatory clarity for the digital asset market. MiCA aims to address the crypto industry’s boom-bust cycles and give euro-denominated stablecoins a chance to succeed,” the CoinSwitch Markets Desk told Gadgets360, commenting on the market rally.

Majority cryptocurrencies recorded profits on July 1, as shown by Gadgets360’s crypto tracker. These cryptocurrencies include Solana, Ripple, Cardano, Avalanche, Tron, and Shiba Inu.

Profits also struck Polkadot, Near Protocol, Polygon, Stellar, Cosmos, Cronos, and Bitcoin SV.

The overall crypto market cap rose by 3.87 percent in the last 24 hours. At the time of writing, the crypto sector valuation stands at $2.33 trillion (roughly Rs. 1,94,40,413 crore), shows CoinMarketCap.

“With the US presidential debate showing that pro-crypto Trump has a better chance of winning the upcoming elections, investors are optimistic about the future of the world’s largest digital asset. The crypto market will sustain this momentum this week if the macroeconomic factors remain favourable,” Shivam Thakral, CEO of BuyUcoin, told Gadgets360.

Among loss-making cryptocurrencies, Binance Coin, Leo, and Braintrust registered their names on Monday.

“Overall, the market looks healthy right now, but this week will be crucial due to key U.S. macro events such as the job openings and unemployment rate announcements,” CoinDCX told Gadgets360.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article. 

Affiliate links may be automatically generated – see our ethics statement for details.
Europe Issues ‘Travel Rule’ Guidelines for Crypto Firms Amid Push to Curb Money Laundering, Financial Crime

The European Union (EU) is adding more layers to its crypto-related regulations to ensure that virtual digital assets (VDAs) are not misused by criminals to conduct or finance illicit activities. The European Banking Authority (EBA) has imposed a ‘travel rule’ on crypto firms that will require them to store details of transactions on their platforms, that aims to reduce instances of money laundering and terror financing using crypto assets — these transactions often leave no trail leading back to the perpetrators of the crime.

The EBA has made it mandatory for all crypto firms to disclose details about each transaction on their respective platforms, as per a statement released by the regulatory authority earlier this month.

EBA’s Travel Rule Guidelines

Under the new guidelines, crypto firms in the EU have been instructed to collect and maintain records of the payers and beneficiaries for all transactions. The travel rule applies to all firms operating within the EU region, which will be required to confirm their compliance. Firms seeking an exemption, must provide reasons to the authorities that will be assessed.

Crypto firms that do not adhere to this law without notifying the authorities will be classified under ‘non-compliant’ businesses and could face legal action. Businesses related to crypto financing have been directed to amend their policies in a way that they align with EBA’s travel rule, which already covers the traditional banking sector.

The guidelines are comprehensive and will go into effect on December 30.

The EU’s Crypto Rules

The EBA is also working with EU policymakers to bind the volatile and financially risky crypto sector in a solid legal framework in a move that is expected to make the crypto sector safer for exploration for investors, without posing risk to EU’s financial stability and while also cracking down on crypto exploiters.

Earlier in June, the EBA published the final draft technical standards that will govern its Markets in Crypto Assets (MiCA) rules. The EBA addressed a number of issues in its final draft of technical standards including those related to liquidity requirements, stress testing programme, asset reserves, and recovery plans.

The EU approved its MiCA legislation in October 2022, aiming to ensure consumer protection, prevent market manipulation, and curb financial crimes linked to digital assets in the EU.

Affiliate links may be automatically generated – see our ethics statement for details.
Bihar Officials Plan State-Wide Uniform Blockchain for IT, E-Governance Uses, Invites Bidders

Blockchain, the underlying technology supporting cryptocurrencies and other Web3 ecosystems, has been garnering interest from Indian government bodies for some time. Recently, Bihar has become the latest state to explore the potential applications of blockchain in India. The Bihar State Electronics Development Corporation (BSEDC) has announced plans to implement a blockchain system designed to enhance e-governance and support IT businesses within the state. To this end, the authorities have invited reputable IT firms to submit proposals for the development of this infrastructure.

About Bihar’s Blockchain Plan

In a detailed proposal seen by Gadgets360, the BSEDC claimed that the departments affiliated to the government of Bihar wish to leverage the security, transparency, and permanency of stored records, which the blockchain technology brings to the table through the Bihar Blockchain Service Infrastructure (BBSI).

Alongside e-governance, Bihar is also looking to implement blockchain-based applications and solutions across other sectors including agriculture, land records, public distribution system, benefits tracking and distribution, data integrity as well as healthcare.

“The platform would provide an immutable ledger secured by cryptography and peer-to-peer networking which would allow applications to secure and verify government data and documents. Additionally, it would host a family of smart contract enabled workflows that would allow departments to build efficient, non-repudiable and automated workflows,” the details shared by the BSEDC noted.

Through this initiative, the government in Bihar is attempting to create a state-wide uniform digital ecosystem and offer tamper-proof e-governance assistance to its citizens as well as business ecosystems. The companies that wish to apply as a developer for the BBSI have until August 8 to submit their required documents and a detailed proposal on how they plan to create this platform.

“The proposals submitted must be valid for 120 days from the date of submission BSEDC will make its best efforts to select a firm within this period. Bidder who will quote the lowest amount will become the successful bidder,” the BSEDC added.

Opinions from Industry Insider

“A national uniform blockchain is best suited for projects under the central government’s purview, such as banking and payments,” Sharat Chandra, Founder of EmpowerEdge Ventures, told Gadgets360. Chandra has been working with multiple state governments in India to experiment with and fund blockchain initiatives.

Chandra explained that state governments in India have the liberty to design and implement projects at their discretion. This allows them to test the uses of blockchain, which offers advantages over traditional servers that are expensive to maintain and prone to hacking, among other drawbacks.

Discussing potential challenges, Chandra said, “Most government processes are disjointed and still not digitized. There are challenges with respect to integration with legacy systems, and ensuring data localization drives up the cost of implementation.”

Bihar is not the only state in India trying to integrate blockchain into their internal tech infrastructure. Telangana and Maharashtra are among other states that are testing blockchain technology.

Affiliate links may be automatically generated – see our ethics statement for details.
BWA Anticipates Tax Revisions Before Union Budget, Commends Indian Firms Embracing Web3

The Bharat Web3 Association (BWA) met with industry stakeholders in New Delhi on July 11, ahead of the upcoming budget announcement for FY2024-2025. During the meeting, Dilip Chenoy, the chairperson of this Web3 advisory body, said that the industry is ready to be patient and give the government enough time to access the results of imposing crypto taxes. He did, however, express concerns that this period of analysis is driving India’s Web3 circle offshore at a rapid pace.

Chenoy, in conversation with the media, said that the existing taxes on cryptocurrencies have not achieved the intended purpose of keeping track of these financial transactions, that are otherwise largely anonymous. Rather, Chenoy said, these taxes are incentivising India’s Web3 community to flock to other readily available channels through which, notorious elements could still dabble in illicit activities.

“The use of blockchain-related technologies in the enterprise sector has risen in recent times. India boasts over 900 firms operating from within its Web3 sector. Forecasts anticipate the sector to add $1.1 trillion to India’s GDP over the next decade, by 2032. We hope that the government rationalises the taxation framework applicable to digital assets in the upcoming union budget,” the BWA said.

Suggested Changes for Crypto Tax in India

Chenoy, alongside BWA co-directors R. Venkatesh and Kiran Vivekananda said that they have had multiple chances to discuss the future of Web3 with government officials in recent times. Several pro-growth suggestions from the BWA have been presented to the government for consideration.

The reduction in TDS on each crypto transaction from one percent to 0.01 percent has been one of the suggestions. The BWA believes investors and entrepreneurs linked to the sector must be able to save something after tax cuts, that gives them opportunities to invest further. The BWA has urged the finance ministry to allow traders of virtual digital assets (VDAs) to offset losses with gains made elsewhere.

In addition, the advisory body has adviced that the threshold limit for deduction of tax at source for crypto gains should be increased to Rs. 5 lakh from the existing range of Rs. 10,000 to Rs. 50,000.

“India is set to become a Web3 powerhouse despite regulatory uncertainties. The country should not lose the opportunity to become a leader in Web3 because of regulatory delays,” the association noted.

Chenoy said the government has not responded to their suggestions yet.

BWA’s Take on Web3 in India

Despite India’s scrutiny over cryptocurrency-related activities, the country has maintained a positive stance around exploring the blockchain technology.

In recent times, players from India’s clinical research sector, ecommerce businesses, as well as the railways industry have dabbled with Web3. The BWA has applauded the exposure of India’s enterprise industry with blockchain-related technologies.

While the BWA has observed a trend in the rising number of startups and enterprise usecases of blockchain technologies, it has also noted a drop-dead silence around the crypto mining industry in India so far. The association has called for discussions around the same in the months to come, especially now that several parts of the world are allowing crypto mining operations to open more employment opportunities in the regions.

Talking about India’s eRupee CBDC, the BWA leaders said, Indians are already accustomed to using the UPI here and so the eRupee is not likely to become a buzz. In other nations, however, the use of CBDCs may have more impact among the masses in terms of facilitating peer-to-peer payments, the BWA predicts.

Affiliate links may be automatically generated – see our ethics statement for details.
Web3 Startups Surge in Asia, Europe as New Legislation, Crypto-AI Mergers Gain Traction: Report

The crypto sector is undergoing a regulatory revamp in several parts of the world, aiming to make the industry safer for its members. Countries that have initiated these frameworks are seeing a spike in the number of Web3 startups, bringing business and opportunities to their citizens. A recent report by blockchain startup accelerator Alliance has claimed that Europe, Asia, and North America have registered significant expansion in their Web3 startup ecosystems.

Europe has deployed a comprehensive set of regulations called the MiCA framework to oversee the crypto sector within its region. In Asia, countries like India, South Korea, and Japan are accelerating efforts to implement laws that bring more transparency to the operations of crypto-related businesses. North American regions like El Salvador, where BTC is legal tender, are also supporting startups with their pro-crypto approach.

“Overall, North America, Europe, and Asia continue to be the big three, with each region contributing 1/4 to a 1/3 of all startups,” Alliance said in its report.

In the US and Canada, however, the winds are blowing the other way.

“In H1 2024 we saw the lowest percent ever of startups from the US and Canada. This is likely due to the regulatory uncertainty in the US and crypto gaining real-world adoption in emerging markets,” the report noted.

More Trends Observed

Startups merging AI and crypto have emerged as a budding category of Web3 startups, garnering interest from potential founders. These kinds of startups have been linked to the NFT sector, the report said.

In addition, Web3 projects exploring Decentralised Finance (DeFi) are also growing despite “little public excitement.”

The report showed that Web3 projects are also rapidly exploring use cases in social, payments, and decentralised autonomous organisations (DAOs).

According to the findings, 30 percent of founders initiating Web3 startups have had work experience in big tech companies. Alliance categorises ‘big tech’ firms as those that are part of the S&P500 group. The findings further said that about only 1/10 founders in Web3 have had experience setting up companies before, which indicates that tech professionals looking to venture into entrepreneurship are showing an interest in exploring opportunities in Web3.

Blockchain, cryptocurrency, NFTs, and the metaverse comprise a suite of technologies that make up the Web3 sector.

The report presented another insight, claiming that 39 percent of all Web3 startups have two founders, and less than 40 percent are founded by solo founders.

“Among startups with two or more cofounders, about half split their equity equally, and half split unequally. Close to 3/4 of startups work fully remotely,” the report noted.

Affiliate links may be automatically generated – see our ethics statement for details.
Worldcoin World Chain Developer Preview Launched for Developers Ahead of Mainnet Launch

The Worldcoin Foundation on Monday launched a developer preview of its upcoming World Chain project, allowing developers to try its upcoming blockchain mainnet. Sam Altman’s controversial Worldcoin project continues to grow steadily, despite facing regulatory challenges in multiple parts of the world. Sam Altman’s controversial Worldcoin project continues to grow steadily, despite facing regulatory challenges in multiple parts of the world, and the World Chain mainnet launch is expected to take place once testing has concluded.

World Chain Developer Preview Launched

Instead of opting for the traditional method of testing an upcoming mainnet (using a testnet that is designed to help developers point out potential issues with the upcoming mainnet) the Worldcoin Foundation has chosen to have developers test the blockchain on the open-source development framework OP Stack.

“Worldcoin user transactions currently represent about 44 percent of OP Mainnet’s activity, making it the largest application on the network. Often during spikes this rises over 80 percent, and at times it flat out exceeds the limits,” the Worldcoin Foundation said in an announcement on Monday.

The World Chain is designed to let Web3 developers avail its scalability feature to connect with more than 10 million on-chain users in 160 countries with compatible wallets.

The Worldcoin Foundation has decided to keep this blockchain ‘permissionless’, so that ‘all of humanity’ can govern it.

“Everyone will be able submit transactions to World Chain, but those created by verified humans will be prioritised for faster confirmation times. Verified addresses will also receive an allowance of some free gas,” the Worldcoin Foundation said.

The release of the World Chain blockchain is scheduled to take place later this year, but no concrete timelines have been provided by the Worldcoin Foundation.

The controversial Worldcoin project aims to provide a universal proof-of-personhood to humans called ‘World IDs’. This ID will distinguish humans from bots and eliminate the need for humans to disclose personal details on web.

For people to obtain this World ID, they have to agree to an iris scan via Worldcoin’s own biometric device, called the Orb.

Multiple governments have expressed concerns about Worldcoin’s eye scan collections, citing threats to the security of their citizens, several of whom have already signed up for the project.

As of Wednesday, the project has garnered over six million world ID verifications. In the last seven days, 143,620 new accounts have been created as part of the project. In addition, the amount of WLD tokens claimed by the project users has breached the mark of 208 million.

Affiliate links may be automatically generated – see our ethics statement for details.
Bitcoin, Ether See Minor Gains as Altcoins Show Varied Moves Amid Growing Selling Pressure

The crypto market is undergoing a period of price correction because of multiple macro-economic factors that are bringing volatility in the market. On Wednesday, July 10, Bitcoin showed a gain of over two percent, taking its value to $59,304 (roughly Rs. 49.5 lakh) on international exchanges like CoinMarketCap. On Indian exchanges, meanwhile, BTC managed to reflect a similar gain percentage to trade between the range of $57,906 (roughly Rs. 48.3 lakh) and $63,577 (roughly Rs. 53 lakh).

“The crypto market showed initial signs of recovery as market begins to digest the impact of German government large BTC release, adding to the selling pressure. Bitcoin rose by almost three percent in the last 24 hours. We can expect the markets to remain choppy in the coming weeks. If Bitcoin breaches the $60,000 mark and stays above it for at least two weeks, then we can expect the momentum to sustain,” Shivam Thakral, CEO of BuyUcoin told Gadgets360.

Ether showed slightly different trajectories on national and international exchanges on Wednesday. The asset, with a gain of 1.06 percent on international exchanges, is trading at $3,115 (roughly Rs. 2.6 lakh). In India, ETH’s price is hovering over the mark of $3,313 (roughly Rs. 2.76 lakh) after seeing a small loss of 1.7 percent, as per Gadgets360’s crypto price tracker.

“Caution lingers as the market will absorb 75,000 to 118,000 BTC worth $4.3 billion (roughly Rs. 35,902 crore)-6.8 billion (roughly Rs. 56,776 crore) from Saxony and Mt. Gox customers. The Fed’s inflation response with rate hikes is a cloud on the horizon, but controlled inflation could bring price increases,” commented Avinash Shekhar, Co-founder and CEO Pi42 on Wednesday’s crypto market situation.

Tether, Binance Coin, Solana, Dogecoin, Shiba Inu, Litecoin, and Chainlink reflected losses on the crypto charts on Wednesday.

However, a bunch of cryptocurrencies did manage to see small gains on Wednesday. These include Cardano, Avalanche, Polkadot, Near Protocol, Polygon, and Uniswap.

The overall crypto market cap rose by 2.73 percent in the last 24 hours. With this, the valuation of the sector is now at $2.17 trillion (roughly Rs. 1,81,18,089 crore), as per CoinMarketCap.

Market analysts, manwhile, are closely observing the market movement of Toncoin – which is the native token of the Telegram-linked TON blockchain.

“After reaching a low of $7.09 (roughly Rs. 0.085), TON is now trading at $7.28 (roughly Rs. 0.087). Increased whale activity is evident, with nine major transactions totalling 359,000 TON in the past 24 hours, indicating investor optimism,” Rajagopal Menon, Vice President, WazirX told Gadgets360. “TON’s price resilience and strategic buying during dips are shown by its ability to maintain above key support levels, with the 50 EMA and 100 EMA serving as crucial indicators.”

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article. 

Affiliate links may be automatically generated – see our ethics statement for details.
Indian Fintech Firms Calls Basel Committee’s Crypto Rules Transparency-Driven, Progressive

The Basel Committee of Banking Supervision (BCBS) released a new ‘disclosure framework’ directing banks to reflect their exposure to crypto assets as public records earlier this month. In conversation with Gadgets360, Indian fintech firms have said the Basel Committee’s decision to pass this law is progressive and driven towards bringing more transparency to the relationship between cryptocurrencies and banks on an international level.

Indian Fintech Firms React to Basel Committee’s Disclosure Framework

In conversation with Gadgets360, NeoFinity Founder and CEO Rayan Malhotra said that while it might be challenging to implement, the Basel Committee’s decision promises to bring about a positive shift in international fintech industry. NeoFinity is the fintech unit of the Neo Group and provides asset management services and financial advisories to institutions.

“Banks are set to embark on a new era of transparency and accountability. They are now expected to openly disclose their trading in cryptocurrency assets. The Basel Committee’s new crypto disclosure framework marks a significant step towards greater transparency and regulatory clarity in the crypto industry,” Malhotra noted.

According to Malhotra, the Basel Committee’s crypto asset disclosure framework will ensure that financial institutions can integrate crypto assets more securely and responsibly into their operations. In the wider picture, this could help the crypto industry see a safer scope for widespread adoption across all 45 BCBS’ member countries including India, Australia, China, the EU, Germany, Italy, and Japan.

Adding to Malhotra’s outlook, A2Z Crypto Co-Founder and CEO Krishnendu Chatterjee said that BCBS’ crypto disclosure framework for banks will also secure the playing field for investors engaging with crypto ETFs. On an overall level, Chatterjee predicts that this development will usher-in more institutional exposure to cryptocurrency.

“Due to the nature of crypto assets, complete transparency in holding and proper disclosure will give confidence to any structured products like ETFs or yield bearing tokens which the banks might offer to the clients. It could easily be achieved by disclosing wallet addresses, in which tokens/ coins are held,” Chatterjee noted.

As these assets are blockchain based, they already offer transparency and instant settlements, that hardly other Tradfi assets can provide, the A2Z Crypto CEO added.

Why the Crypto Sector Needs Banking Regulations

The crypto sector touched an all-time high of over $3 trillion back in 2021. A year later, promising crypto projects like Terra and FTX collapsed, wiping off an estimated $2 trillion. Amidst the ensuing financial turmoil, multiple crypto-related banks in the US like Silvergate also shut down.

These instances raised concerns among global banking authorities around the risks that volatile crypto assets could pose to their respective financial systems and stability. Soon after, the World Bank, the International Monetary Fund, and the Financial Stability Board began prioritising work around drafting rules to govern the crypto sector to safeguard crypto investors from similar losses.

Last year, financial regulators from around the world joined India in working towards drafting crypto rules that could work uniformly across international locations. As part of the efforts, a crypto adoption roadmap, outlining general rules like KYC details collection and reporting suspicious crypto activities, was created last year.

Other parts of the world are also exploring ways to integrate crypto with banking but under stringent safety-related guidelines. Earlier this month, the European Banking Authority (EBA) has imposed the ‘travel rule’ over crypto businesses, under which, all crypto firms across the EU have been mandated to maintain records of each crypto transaction processed through their platforms.

Affiliate links may be automatically generated – see our ethics statement for details.