Binance Connect shuts down operations
- Binance Connect, the buy-and-sell crypto arm of Binance exchange, closed on Aug. 16 after losing its card payments services provider.
- Binance has been facing regulatory scrutiny and is involved in litigation with the U.S. SEC and CFTC.
- Binance Connect launched in March 2022 as Bifinity, connecting crypto firms with traditional finance systems.
- The platform supported 50 cryptocurrencies and fiat payment methods, including Visa and Mastercard.
Prime Trust files for bankruptcy
- Crypto custodian Prime Trust filed for Chapter 11 bankruptcy protection due to a shortfall in customer funds.
- The company has between 25,000 to 50,000 creditors and estimated liabilities between $100 million to $500 million.
- Prime Trust faced a cease and desist order in June from Nevada’s business regulator.
- The company’s financial condition was deemed “critically deficient.”
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BitGo raises $100 million
- Cryptocurrency custody platform BitGo raised $100 million in a Series C financing round.
- The funding brings BitGo’s valuation to $1.75 billion.
- The funds will be used for strategic acquisitions and to expand custody services globally.
- BitGo’s Series C funding included new investors from the United States and Asia.
PayPal introduces Cryptocurrencies Hub
- PayPal updated its terms and conditions to introduce Cryptocurrencies Hub.
- The feature allows users to hold and interact with Bitcoin and other cryptocurrencies in their PayPal account.
- Users can sell and purchase crypto through the hub and make payments using the proceeds.
- The hub will also facilitate the conversion between PayPal’s stablecoin (PYUSD) and other crypto assets.
Spot Bitcoin ETF approved in EU, not in the US
- The first spot Bitcoin exchange-traded fund (ETF) was approved in the European Union and went live on the Euronext Amsterdam exchange.
- The lack of regulatory clarity in the U.S. cryptocurrency market hinders the approval of a spot crypto ETF by the SEC.
Hot Take:
- The crypto industry continues to face regulatory challenges, with Binance and Prime Trust experiencing setbacks.
- However, there are positive developments, such as BitGo’s successful fundraising and PayPal’s introduction of the Cryptocurrencies Hub.
- The approval of a spot Bitcoin ETF in the EU highlights the need for regulatory clarity in the U.S. market.
