The cryptocurrency space saw massive adoption in August, despite some regulators restricting the activities of cryptocurrency service providers
More and more financial institutions are getting into cryptocurrency
One of the most interesting trends in August is the continued adoption of cryptocurrencies by institutional investors. MicroStrategy confirmed its status as perhaps the most optimistic company in the cryptocurrency space after spending an additional $ 177 million on Bitcoin. In the past few months, the company has bought nearly $ 3 billion worth of Bitcoin, making it one of the largest holders of the cryptocurrency. The company holds over 100,000 bitcoins valued at over $ 5 billion.
Financial institutions have also participated in the introduction of cryptocurrencies. Citigroup is expected to start trading the CME Bitcoin futures soon. This is due to an increase in requests from its customers to deal with cryptocurrencies.
Another US financial institution, JPMorgan Chase, has also launched its in-house Bitcoin fund for its wealthy clients. JPMorgan has partnered with NYDIG, the BTC arm of asset management company Stone Ridge, to offer the Bitcoin funds to its wealthy clients. The fund is designed to give JPMorgan’s wealthy clients indirect access to cryptocurrencies.
Wells Fargo is the third traditional US bank to enter the cryptocurrency space this month. The bank has registered a Bitcoin fund with US regulators to give its wealthy customers exposure to the leading cryptocurrency. Wells Fargos Bitcoin Fund is a partnership with NYDIG and FS Investments and is called FS NYDIG Bitcoin Fund.
The leading investment manager Neuberger Berman also added Bitcoin and Ether to its fund strategy earlier this month. The asset manager with over $ 400 billion in assets under management, the asset management firm said it has always been intrigued by Bitcoin and what the cryptocurrency has to offer.
Popular chip maker Intel bought Coinbase shares in the second quarter of the year. Intel believes in Coinbase’s business model and believes it could control a large chunk of the cryptocurrency market in the years to come.
AMC, the largest theater chain in the United States, announced earlier this week that it would accept Bitcoin as a means of payment before the end of the year. The company will accept BTC payments for tickets and concessions in its 593 theaters across the United States.
Walmart is also looking to get into the cryptocurrency space and is looking to hire a head of crypto products. The company posted a LinkedIn job ad saying it is looking for a candidate with experience in leading and growing companies. The candidate will also be able to identify cryptocurrency-related investments and partnerships.
Regulators are serious about regulating cryptocurrencies
The cryptocurrency market is growing and this has made it necessary for regulators in different parts of the world to be mindful of this and ensure that investors get the level of protection they need. The chairman of the US Securities and Exchange Commission discussed at length the need to regulate the cryptocurrency market this month. He explained the need to regulate the decentralized financial space (DeFi), stablecoins and cryptocurrency exchanges. He called on the United States Congress to give the SEC more resources and powers to strengthen its oversight of the cryptocurrency market. According to Gensler, some DeFi projects fall under the jurisdiction of the SEC and need to regulate them.
Earlier this month, the Spanish regulator, the National Securities Market Commission, warned some cryptocurrency exchanges and trading platforms not to operate investment platforms without registering with the authorities. The Huobi and Bybit cryptocurrency exchanges were among the 12 companies warned by the Spanish regulator.
Binance is discontinuing services in some countries
Binance’s regulatory challenges continued this month, causing the cryptocurrency exchange to make changes to its operations. The Dutch central bank warned that Binance was operating in the country without a license.
The cryptocurrency exchange has stopped trading derivatives in Hong Kong and Australia. She also discontinued futures trading services in Brazil due to regulatory challenges. In South Korea, the cryptocurrency exchange has discontinued South Korean won trading pairs, won payment options, and Korean language support on its platform.
The Poly Network hack ends with good news for everyone involved
A major event that month was the Poly Network hack. The attacker stole $ 611 million from the platform, making it the largest heist in the history of the DeFi sector. However, the attacker claimed to have done this to reveal the network vulnerabilities. The attacker returned the money to the DeFi protocol and also the keys to the wallets. The developers of Poly Network offered the attacker the role of Chief Security Advisor and a bounty of $ 500,000. Despite the twists and turns of events, the cryptocurrency project was able to recover the entire $ 611 million it lost in the attack.
Google allows crypto companies to advertise again
The leading search engine, Google, enabled cryptocurrency companies to advertise their services. Crypto exchanges and wallet service providers are allowed to advertise their products and services on Google. The search engine giant said Initial Coin Offerings (ICOs) and DeFi trade protocols are not allowed to advertise on Google.
PayPal launches its crypto services in the UK
PayPal announced earlier this month that it had launched its cryptocurrency services to its customers in the UK. The payment giant launched its crypto services last year. However, it was limited to dealers in the United States. UK merchants can now buy, sell and hold cryptocurrencies through their PayPal account.
Ethereum network activates the London hard fork
The London hard fork went live on the Ethereum network earlier this month. The hard fork brings the migration of the Ethereum network to a proof of stake protocol closer. While the London Fork doesn’t lower transaction fees on the Ethereum blockchain, it makes it easier for users to predict the transaction fees they will pay on the network.