A bitcoin flash crash that saw the price of the coin dip to $25K levels has seen over $1 billion in both longs and shorts liquidated
The crash now stands as one of the biggest ever in the liquidations history of the coin
Crypto traders are left counting huge losses as $1.04B in liquidations happened over the last 24 hours as the price of Bitcoin fell to $25,200.
Bitcoin crash liquidates both shorts and longs at a record rate
The recent flash crash of the coin caused its futures market to become highly unstable, claiming over $1 billion in liquidations for both shorts and longs positions.
Per data from the on-chain analytics platform Crypto Rank, traders at OKX had the highest hit accounting for $332M of total liquidations, while Derbit followed closely with $273M in liquidations. At the same time, Binance had $218M, Huobi had $107M, and Bybit came fifth with $56M in liquidations.
At the time of writing, the coin’s price was still not fully recovered as it traded at $26,300. The coin still has a low trading volume though it is showing recovery signs; however, it is not promised to fully recover in the coming hours as weekend bearish sentiment may be setting in. Do your own research and trade accordingly.
Keep watching Fintech Express for more market updates and other fintech-related developments.
China’s Ministry of Commerce could respond to Biden’s executive order to restrict investments in advanced Chinese technology
US Commerce Secretary Gina Raimondo is set to visit the country amid a souring business relationship.
US Commerce Secretary Gina Raimondo is set to visit China as reports spread that the Asian nation could announce countermeasures to Bidens Executive Order against its advanced technology.
US Commerce Secretary Gina Raimondo to tour China following Biden’s Executive Order
The US and China have been experiencing deteriorating business ties lately as the two major world economies remain opposites in political spectrums. China has been associated with Russia and other non-Nato nations that seek to dethrone the dollar and have thus been under multiple economic sanctions.
As such, the Asian nation seeks to completely break away from the dollar, a sentiment the US shares. In Q2, the US asked the EU to follow suit and reduce its dependence on Chinese global supply chains. The EU and the US have depended on China’s advanced technology supply chains for items like chips.
President Biden has released an executive order seeking to cut the dependency on such Chinese items. As a retaliation plan, China’s Ministry of Commerce said on Thursday that it would also respond to the executive order with its restrictions against the US Economy.
“On that basis, we are making a comprehensive assessment of the executive order’s impact and will take necessary countermeasures based on the assessment’s results,” The ministry’s spokesperson said.
Bidens executive order over security concerns restricts our investments in Chinese quantum computing, artificial intelligence, and semiconductors industries. The targeted industries have been the Asian nation’s strongest ones globally, prompting a response from the nation as its economy is stalling.
While the two nations remain at each other’s necks, it could be catastrophic for global supply chains if they alienate each other as such. The US Commerce Secretary Gina Raimondo is set to travel to China to hold bilateral talks and find a way forward for the two nations weeks after Treasury Secretary Janet Yellen traveled there for similar purposes.
Keep watching Fintech Express for updates on macro-finance and other fintech-related developments.
Ripple vs. SEC case has been going on for years but has taken a dramatic turn as the US SEC recently lost partially.
The Presiding Judge ruled that the sale of XRP in primary and programmatic markets does not constitute the factors that could deem it a security.
Now, Ripple Labs Chief Legal Officer has hit back at the US SEC for filing a request for an appeal against the US SEC, saying there currently are no “extraordinary circumstances” in the case that warrants an interlocutory appeal at this stage.
Ripple Labs’ chief legal officer has hit back at the US SEC, expressing that no “extraordinary circumstance” warrants the US SEC’s ability to appeal the partial loss while the case is still pending.
Ripple Labs legal counsel not convinced by US SEC appeal.
Ripple Labs Chief Legal Officer Stuart Alderoty has hit back at the US SEC move towards filing for an interlocutory appeal relating to their July 13 XRP case partial loss laid down by U.S. District Court Judge Analisa Torres.
In an August 16 letter, Judge Torres explained that XRP failed to pass Howey’s tests in primary or programmatic markets, which makes it not a security. She explained that the court should reject the SEC’s motion for leave to file an interlocutory appeal. An interlocutory appeal occurs when a ruling by a court gets appealed as other aspects of the case are still underway.
Now, Ripple Labs’ legal system believes it is more appropriate for the US SEC to wait until the final ruling before filing for an appeal. The lawyers explained three main arguments starting with that the appeal needs the US SEC to raise new legal issues, which has yet to be the case.
Secondly, they claim that the US SEC that the court ruled incorrectly on the matter could be more efficient since it has to show that at least two courts are in apparent conflict with each other, which is not the case here. Thirdly, they explained that an immediate appeal would not advance the termination litigation proceedings.
🚨NEW: @Ripple files its response to the @SECGov’s anticipated interlocutory appeal.
Ripple Labs Chief Legal Officer Stuart Alderoty explained that the US SEC doe not have any extraordinary circumstance that would justify departing from the normal legal procedure.
“No extraordinary circumstance here would justify departing from the rule requiring all issues as to all parties to be resolved before an appeal.”
We oppose the SEC’s request for an interlocutory appeal. There is no extraordinary circumstance here that would justify departing from the rule requiring all issues as to all parties to be resolved before an appeal. https://t.co/hjNIwEZkSt
This case is expected to continue with the US SEC not giving up quickly, as it sets a significant precedent for all other cases connected to certain crypto assets being securities. By now, the US SEC has branded over 62 crypto assets as securities and charged multiple exchanges for trading them in the US.
As such, the case will be a landmarking event in the crypto industry as it will change the regulatory approach of the industry in the US forever. Keep watching Fintech Express for more updates on crypto regulation and other fintech-related developments.
FedNow has showcased a new DLT-powered payments platform built on Hedera to its list that showcases service providers.
The Federal Reserve previously indicated that it would not support or endorse any showcase providers featured on its website.
The United States Federal Reserve has showcased a DLT-powered company as a service provider on its website. The administrator said showcasing a company on the website does not necessarily mean it supports the company.
FedNow exhibits a DLT-powered payments system as a service provider
Dropp, the company in question, is a DLT services provider powered by the Hedera Hashgraph and has now appeared on FedNow’s Service Provider Showcase section. This section aims to connect financial institutions and businesses with service providers that could “help them innovate and implement instant payment products using FedNow Service.”
Though this showcasing could signal that FedNow is warming up to DLT-powered services providers, the Federal Reserve has previously stated that it doesn’t support any of the companies posted there. Also, it has said that the materials exhibited on its website are only “presented as a convenience” to potential FedNow Service participants.
“Federal Reserve Financial Services (FRFS) is merely the host for the showcase and does not support or endorse any showcase providers, and the inclusion or exclusion of a provider should in no way imply any recommendation or endorsement by FRFS.”
This development catches the crypto community divided time following the launch of PayPal’s PYUSD stablecoin. The coin has smart contract functionalities that allow for the censorship of transactions which a faction of the crypto community sees as a start to undermining crypto culture like decentralization.
Now, even with FedNow allowing DLT-powered services providers on their website, some still feel that it’s not enough indicator that crypto will be allowed to fully shape up as an alternative to the ‘flawed’ monetary systems.
Keep watching Fintech Express for more updates on banking and other fintech-related developments.
France has updated its crypto licensing rules to match MiCa legislation
The new amendments will come into effect on January 1, 2024, around the same time as the MiCA legislation
Applicants for DASP regulatory licenses in France starting in the year 2024 will have to follow MiCA legislation as the country has updated its licensing regime. The Eurozone is expected to enforce MiCA regulation in 2024, ushering in a new era of regulated blockchain and crypto adoption.
France ramps up crypto licensing rules to match MiCA
A press release from Autorité des Marchés Financiers (AMF), France’s main financial authority ushers in new policies that will see digital asset service providers take an “enhanced” registration process to comply with crypto licensing rules to match MiCA legislation.
The new registration requirements are captured by the AUMF’s article 721-1-2 of the MAF General Regulation that will include systems for managing conflict of interests, more disclosure obligations, and prohibition to use client assets without their consent, among others.
While these regulations were set in on January 1, 2024, any crypto exchange licensed before the new amendments will benefit from much lighter requirements set, which is protected by a “Grandfather clause” that comes as a simpler version of the MiCA regulatory framework.
Keep watching Fintech Express for more updates on this and other fintech-related developments.
