New Zealand Launches Stable Coin as Bitcoin Explodes Back to Green

This week has emerged as one impacted by regulatory turbulence and significant market developments caused by regulators in the Crypto Currency sector which is proving its resilience as Bitcoin surges above USD 37,000 after a short burst of Fear struck the sector after Binance was found guilty of aiding money laundering.

The rebound comes in the aftermath of a major settlement involving Binance the world's largest CryptoCentralised exchanges (CEX) and amidst growing speculation about the approval of a U.S. spot Bitcoin ETF.

The rollercoaster week kicked off with a leak on Monday regarding a potential massive settlement of U.S. criminal charges against Binance.

Confirmation of the USD 4.3 billion fine and a guilty plea from Binance's founder and CEO, Changpeng "CZ" Zhao which sent shockwaves through the crypto markets causing Bitcoin to briefly dip below USD 36,000 on Tuesday evening.

However, the markets have quickly recovered and as of the latest update Bitcoin has surged about 1.5% in the past 24 hours exploding above USD 37,400. The broader CoinDesk Market Index (CMI) reflects this positive momentum showing a more than 2% increase over the same period. Ether (ETH) has led the charge with a 5% gain while Solana (SOL) and Chainlink (LINK) have both seen impressive 6% advances.

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Bitcoin Explodes Back

Industry observers are speculating that the Binance settlement could pave the way for the long anticipated approval of a U.S. spot Bitcoin ETF by the S Securities and Exchange Commission (SEC) as there is clear evidence that the ETF’s need to happen. The departure of CZ and the regulatory scrutiny on Binance may address concerns related to potential overseas manipulation of Bitcoin prices.

Crypto services provider Matrixport expressed optimism, stating, "With this plea deal, the expectations for a spot Bitcoin ETF might have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow." Economist Alex Kruger added a positive note saying: "Binance uncertainty out of the way, its activities will now be monitored by an independent compliance monitor."

New Zealand Stable Coin

While the Binance saga unfolds another corner of the crypto world is making headlines. Easy Crypto, in partnership with Australian blockchain development firm Larys has launched the New Zealand Dollar Stablecoin (NZDD). This stablecoin is backed 1:1 with cash in trust and is regulated by the New Zealand Financial Markets Authority. Initially live on Ethereum the NZDD plans to expand to Polygon, BNB Smart Chain, Arbitrum, Optimism, and Coinbase's Base.

Janine Grainger the co-founder and CEO of Easy Crypto highlighted the motivation behind the stablecoin's launch. Stating that it makes it easier for New Zealanders to maximize their profits compared to using U.S. dollar pegged tokens. The stablecoin is complemented by a multicurrency self-custody wallet featuring multiparty computation cryptography, enhancing security through a user's trusted social circle.

In the wake of these developments the crypto industry is still reeling from the aftermath of America's biggest crypto crackdown in history. The guilty plea of Binance's Changpeng Zhao follows the conviction of Sam Bankman-Fried. The founder of the collapsed FTX crypto exchange. The U.S. government's actions send a clear message to the crypto world valued at approximately USD 1.4 trillion.

ETF Approvals Highly Likely

Five key takeaways from this major enforcement action include the likelihood of a prolonged struggle for the crypto industry to repair its image. Both Zhao and Bankman Fried were influential figures in the industry and their legal troubles require other industry leaders to make a compelling case that they were exceptions rather than the norm.

Brian Armstrong, the CEO of Coinbase used the opportunity to distance his exchange from Binance, emphasizing the importance of compliance for long term success. The federal government's intensified crackdown on crypto firms. As evidenced by recent cases against Kraken and other exchanges signals a broader effort to combat illicit activities in the crypto space.

The agreement between Binance and law enforcement requires the exchange to cease operations in the U.S. However, Binance.US a separate entity created in 2019 remains unaffected and allows U.S. users to continue trading under regulatory compliance.

This crackdown underscores the U.S. government's increasingly tough stance on crypto related criminal activities. The involvement of various agencies, including the SEC, the Justice Department, the Commodity Futures Trading Commission, and the Treasury Department, indicates a comprehensive approach to combating corporate crime in the crypto space.

Despite these challenges there appears to be an appetite for new regulations to provide clarity and distinguish legitimate crypto products from illicit ones. While existing regulations are being enforced rigorously officials suggest that additional regulatory measures could further enhance investor protection and assist law enforcement in preventing the misuse of crypto platforms for criminal activities.

As 2023 comes to a close it is gearing up to bring in a roaring 2024, with the current high inflation and interest rates, investors might be able to receive additional income from Crypto currencies.

Image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

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