LianGuai Morning News | Coinbase’s platform delists 38 non-dollar trading pairs

LianGuai Morning News | Coinbase delists 38 non-dollar trading pairs

Headlines

▌Coinbase’s platform delists 38 non-USD trading pairs

Coinbase has announced the suspension of several non-USD market trading pairs on Coinbase Exchange, Advanced Trade, and Coinbase Prime to improve overall market health and enhance liquidity. The delisted trading pairs include:

ALCX-USDT, BIT-USDT, BOBA-USDT, CLV-EUR, CLV-USDT, CTX-EUR, CTX-USDT, DIA-EUR, DIA-USDT, DYP-USDT, FARM-USDT, FIDA-EUR, FIDA-USDT, FIS-USDT, HOPR-USDT, INDEX-USDT, KRL-EUR, KRL-USDT, MATH-USDT, MDT-USDT, NCT-EUR, NCT-USDT, ORN-BTC, ORN-USDT, POLS-USDT, PRQ-USDT, QSP-USDT, SHPING-EUR, SHPING-USDT, SUKU-EUR, SUKU-USDT, SYLO-USDT, TIME-USDT, WAMPL-USDT, WCFG-BTC, WCFG-EUR, WCFG-USDT, XCN-USDT.

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Market

As of the time of writing, according to coinmarketcap data:

• Gov2 Polkadot’s Next Generation Decentralized Governance
• BitMEX Founder Arthur Hayes’ Token2049 Speech Fiat Debt and AI-Driven Next Bull Market (with PPT)
• Full Text of Arthur Hayes’ Token2049 Speech in Singapore The Next Bull Market Will Start in Early 2024

BTC recently traded at $26,218.6, with a daily change of -0.10%;

ETH recently traded at $1,607.79, with a daily change of -0.04%;

BNB recently traded at $212.44, with a daily change of -0.06%;

XRP recently traded at $0.4839, with a daily change of +0.18%;

DOGE recently traded at $0.0612, with a daily change of +0.03%;

ADA recently traded at $0.2487, with a daily change of +0.05%;

SOL recently traded at $18.399, with a daily change of +0.16%.

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Policies

▌CFTC Enforcement Director: Unregulated DeFi exchanges pose a “clear threat”

Ian McGinley, the Enforcement Director of the CFTC, stated during a conference hosted by a law research institute, “The existence of unregulated DeFi exchanges poses a clear threat to the CFTC-regulated markets and the customers protected by the CFTC, and we take this very seriously.”

Last week, the CFTC charged three DeFi protocols, Opyn, ZeroEx, and Deridex, with offering “illegal digital asset derivatives trading.” McGinley stated that these platforms engaged in multiple activities that require registration with the CFTC. Throughout his speech, McGinley cited other DeFi-related cases brought by the CFTC in recent years, including cases against Polymarket and Ooki DAO.

McGinley added, “All of this underscores that the CFTC has taken groundbreaking action in the DeFi space and its message is clear: when offering core derivative products based on digital assets to the public, whether in a centralized or decentralized manner, compliance with the law is essential.”

▌EU Parliament votes in favor of DAC8 crypto tax reporting rules

Members of the European Parliament overwhelmingly voted in support of the eighth edition of the Administrative Cooperation Directive (DAC8) during the plenary session on September 13th. This directive introduces cryptocurrency tax reporting rules. According to EU documents, DAC8 aims to empower tax authorities to track and assess all cryptocurrency transactions conducted by organizations or individuals within member states: “On December 8th, 2022, the European Commission proposed establishing a reporting framework that would require crypto asset service providers to report transactions carried out by EU customers. This will help tax authorities to track crypto asset transactions and income, thereby reducing the risk of tax fraud and evasion.”

The full meeting vote on September 13th was the last hurdle for DAC8 to pass. EU member states will implement these rules by December 31, 2025, and they will officially take effect on January 1, 2026.

▌SEC Chairman: Most of the content in the crypto field is non-compliant, and the industry’s problems may spread to a broader economic system

SEC Chairman Gary Gensler reiterated his tough stance on the cryptocurrency industry at a conference hosted by Better Markets commemorating the 15th anniversary of the Lehman Brothers’ collapse in the 2008 financial crisis.

He said, “Without prejudging any token, most of the content in the crypto field meets securities law, but unfortunately, most of it is also non-compliant.”

Gensler stated that millions of investors have been harmed by cryptocurrencies, and the industry’s problems may spread to a broader financial system. He said, “Millions of investors have been harmed in this field. It is an area that can potentially harm investors, but it can also damage the broader economic system because it may undermine investor confidence, and finance ultimately relies on trust.”

Gensler stated that compared to the “over $100 trillion capital market,” the overall crypto economy is “relatively small, but it can indeed undermine investor confidence.”

▌Coinbase CEO: CFTC should not take enforcement action against DeFi protocols

Coinbase CEO Brian Armstrong tweeted on X platform (formerly Twitter) that the CFTC should not take enforcement action against decentralized (DeFi) protocols as they are not financial service businesses, and the Commodity Exchange Act is unlikely to apply to them. He hopes that these DeFi protocols can take these cases to court and set a precedent. It turns out that the court is very willing to uphold the rule of law, and the only purpose of CFTC’s actions is to push an important industry overseas.

Last week, the CFTC announced that it had reached settlements with DeFi protocols Opyn, ZeroEx, and Deridex, each of which was ordered to pay civil penalties of $250,000, $200,000, and $100,000, respectively.

▌Bain Capital Executive: Most crypto projects lack resources to confront the SEC, and the law remains very ambiguous

Tuongvy Le, partner and regulatory director of Bain Capital’s crypto business, said at the Permissionless conference that companies like Ripple have more ability to confront regulatory agencies, while most crypto projects (such as Stoner Cats) lack resources to file lawsuits against the U.S. Securities and Exchange Commission (SEC) in court. Therefore, the end result is that the law remains very ambiguous.

Le believes that U.S. regulatory agencies are taking enforcement actions and creating “false theories” in areas where the law is lacking, and she hopes that U.S. policymakers will reevaluate their positions when faced with the Ripple case.

▌The trial of SBF has been postponed from October 2nd to October 3rd

Fox Business reporter Eleanor Terrett stated on the X platform (formerly Twitter) that the trial of SBF has been postponed by one day from October 2nd to October 3rd, and the jury selection will begin at 9:30 am on October 3rd.

▌FTX has obtained court approval to liquidate its cryptocurrency assets

Judge John Dorsey of the bankruptcy court in Delaware, USA, ruled that the cryptocurrency exchange FTX can sell and invest in the cryptocurrencies it holds to repay its creditors. Previously released documents showed that these assets were worth more than $3.4 billion as of August 31st.

LianGuai previously reported that FTX revealed earlier this week that it holds Solana (SOL) tokens worth $1.16 billion, accounting for about 16% of the token’s circulation, as well as Bitcoin worth about $560 million. There are also some assets consisting of low-liquidity altcoins. FTX debtors submitted a proposed plan in August, under which token sales will be guided by financial advisors, and the weekly sales limit for most tokens will be $100 million, but the limit may be increased to $200 million.

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Blockchain Applications

▌Vitalik Buterin: Asian developers have an increasing influence on cryptocurrency technology

Vitalik Buterin, co-founder of the Ethereum blockchain, stated at the Permissionless conference that he has observed that Asian development teams have an increasing influence on cryptocurrency technology, which is significantly different from the past when most development was done in the West. He said, “Five years ago, exchanges and mining in East Asia seemed great, but you know, they made little contribution to development and research. I think there has been a huge shift.”

Buterin said that he has been traveling in East Asia for the past month and has had contact with four or possibly five teams who are building some kind of account abstract wallet.

▌Vitalik Buterin: The future of Ethereum is to truly create an independent open technology stack

Vitalik Buterin stated at the Permissionless conference that cryptographically-based solutions have the potential to be more decentralized, privacy-preserving, and secure than the current Web2. He mentioned ENS, POAP, and other building modules (or next-generation versions), or the use of zero-knowledge technology such as Gitcoin LianGuaissport would be better.

Vitalik Buterin mentioned, “The great dream here is to truly create an independent open technology stack that can compete with companies like Google and Twitter, but without tightly integrating with closed centralized systems.”

Buterin envisioned a progressive process where new Web3 users create an Ethereum address initially controlled by familiar services like Gmail, but using account abstraction to allow people to take ownership when they are ready to use more native cryptographic methods. He said, “Basically, giving people the opportunity to step off the decentralized ladder and then, in the end, enter this fully independent stack where all the different parts inside can actually work together.”

▌GoMining allows individuals to access its mining data center and pay rewards

Bitcoin mining service provider GoMining allows individuals to access its mining data center and pay rewards. By joining GoMining, users do not need to purchase and set up hardware or maintain equipment. All processes are conducted online. GoMining handles all the backend work. With GoMining, users can mine Bitcoin through a proprietary token system, including: GOMINING tokens, which are the main utility tokens of the GoMining ecosystem; GoMining NFTs, which represent ownership of the Bitcoin hash rate of their data centers and entitle holders to daily mining rewards. It is reported that this mining service has been operating for over six years, with a total power capacity of 350 megawatts across nine data centers distributed worldwide, and a total hash rate of 2.1 million terahashes per second.

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Cryptocurrency

▌Report: Sweden and Canada lead in cryptocurrency ETPs

According to a report by CoinGecko, Sweden and Canada are leading in cryptocurrency exchange-traded products (ETPs). As of September 11th, the largest cryptocurrency ETPs in terms of assets under management are Bitcoin Tracker One (COINXBT) and Ethereum Tracker One (COINETH) by Swedish provider XBT, with assets under management of approximately $4.4 billion and $2.6 billion respectively, far ahead of the third-place Hashdex Nasdaq Crypto Index Fund from Brazil, which manages nearly $1.1 billion in assets.

The ProShares Bitcoin Strategy ETF (BITO), launched in the United States in October 2021, has $915 million in assets under management, while the Purpose Bitcoin ETF ranks fifth with $819 million in Canada.

CoinGecko data shows that six out of the top 25 largest ETPs globally are located in Canada.

▌QCP Capital: BTC’s true bottom to come in mid to late October

QCP Capital stated in a Telegram update, “We expect the final drop to come, and this quarter will close at the lows.” The cryptocurrency trading firm suggests that a series of negative news in the coming weeks, such as the more hawkish Fed meeting next week, the FTX asset sale, and the Mt Gox fund repayment, could push BTC prices down to around $23,000.

QCP added, “The true bottom will come in mid to late October when the bad news cycle ends. Nonetheless, we remain bullish post that till year-end and 1Q next year.”

▌LianGuaixos confirms responsibility for $500,000 erroneous Bitcoin transfer fee

According to a statement on September 13th, the account that paid a $500,000 fee for transferring $2,000 worth of Bitcoin belongs to LianGuaixos servers, and LianGuaixos claims responsibility for it. The end users were not affected, and all user funds are safe. A representative of LianGuaixos stated that LianGuail is not liable for any damages as the error was caused by itself and said, “LianGuaixos overpaid BTC network fees on September 10th, 2023. This only affected LianGuaixos’ operations. LianGuaixos’ customers and end users were not affected, and all customer funds are safe. This was due to an error in a single transfer, which has now been fixed. LianGuaixos is in contact with miners to recover the funds.”

It is reported that this erroneous transaction occurred on September 10th. According to blockchain data, the sender paid a fee of approximately 20 BTC (worth over $515,000 at the time), but only sent 0.07 BTC (worth less than $2,000 at the time).

▌Cloud provider Retool’s phishing attack leads to the theft of $15 million in cryptocurrency from Fortress Trust

Fortress Trust disclosed last week that its clients’ cryptocurrency was stolen (amounting to nearly $15 million) and blamed an undisclosed third-party supplier. CoinDesk has confirmed the identity of the supplier, who also admitted to being a victim of a phishing attack.

Insiders claim the supplier is Retool, a San Francisco-based company that serves Fortune 500 clients and has established a portal website for a few Fortress clients to access funds.

They stated that the theft was the result of a phishing attack, prompting Fortress to agree to be acquired by blockchain technology company Ripple. An insider familiar with the situation stated that Ripple has paid a $15 million “down payment” for the acquisition to help protect Fortress client interests. This payment is said to only be a small part of the total purchase price.

▌Insiders: CZ’s holdings and regulatory environment limit the development of Binance.US

The Block, citing insiders, reported that the relationship between Changpeng Zhao (CZ) and Binance.US as well as the current regulatory environment have limited the development of Binance.US. Insiders have stated that regardless, the regulatory environment and Zhao’s connection to Binance.US will be obstacles for the company’s development.

During an all-staff meeting, CZ presented three potential choices and their feasibility for the company in the current landscape. The first choice is to continue with the planned growth strategy, which includes new products such as licenses for stock and futures trading as well as derivative trading. However, the presentation states that this choice requires CZ to “resolve” his regulatory issues with the U.S. Securities and Exchange Commission, either by placing his holdings in Binance.US in a blind trust or by completely selling his shares.

The second choice is to moderately reduce the company’s capital consumption when investing in the platform, which would allow for investments in certain platform upgrades such as sub-account functionality and AWS/infrastructure optimization. However, this choice requires venture capitalists to be willing to invest in the company during the current bear market.

The third choice is to “hibernate” until there is substantial improvement in the company’s situation. The presentation shows that this choice would significantly reduce the burn rate while maintaining normal business operations and licenses.

Binance.US may currently be pursuing the third choice. In addition to Shroder’s departure, the company has also laid off one-third of its staff.

▌Caesars Entertainment pays millions of dollars to hackers due to data leak concerns

Bloomberg News reported that Caesars Entertainment has paid hackers who recently breached their system and threatened to leak company data tens of millions of dollars. When hacker groups demand ransom, they usually request payment in cryptocurrency. Some attacks deploy ransomware to lock computer files, and if the victim pays, the hackers provide decryption keys.

Insiders said Caesars is expected to disclose the cyber attack immediately in regulatory filings.

According to sources, the organization behind this attack is known as Scattered Spider or UNC 3944. Cybersecurity experts say its members are skilled in social engineering attacks and have access to large enterprise networks. Insiders said that in the case of Caesars, the hackers first infiltrated an external IT vendor before entering the company’s network.

▌Data: Announcement of Spot Ethereum ETF Application Did Not Cause Significant Change in Ethereum Social Media Sentiment

According to data from The Tie, the announcement of the Spot Ethereum ETF application did not cause a significant change in Ethereum social media sentiment. Nonetheless, Sacha Ghebali, Director of Strategy at The Tie, believes that social media is crucial in shaping the dynamics of the cryptocurrency market. While short-term sentiment did not experience major fluctuations, social media remains a valuable gauge of the potential mainstream acceptance of projects, which in turn can affect asset prices.

As for the market outlook for the remainder of this year, analysts warn that the current low liquidity environment makes short-term price predictions particularly challenging.

▌Grayscale CEO: Prepared for a Market with Multiple Spot Bitcoin Products

Grayscale CEO Sonnenshein said, “I think the U.S. Securities and Exchange Commission does have an opportunity to ensure that they’re not picking winners and losers in this market, and we’ve long been prepared for a market with multiple spot bitcoin products.”

▌Former FTX General Counsel Ryne Miller Establishes Personal Law Firm

Ryne Miller, the former General Counsel of the now-defunct cryptocurrency exchange FTX, has established his own law firm, Miller Strategic LianGuairtners LLP. In a post announcing the establishment on LinkedIn, Miller wrote that in addition to providing crisis management and regulatory advice to trading and market industry participants, Miller Strategic LianGuairtners will also specialize in providing regulatory and strategic advice to digital asset and blockchain companies.

According to his profile, Ryne Miller served as General Counsel at FTX for nearly two years before its closure in 2022. Prior to joining FTX, Miller was a partner at Manhattan law firm Sullivan & Cromwell and served as legal counsel during Gary Gensler’s tenure as Chair of the CFTC.

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Important Economic Trends

▌China Securities: Downward Pressure on US Inflation Still Faces Many Obstacles, Possibility of Rate Hike in the Fourth Quarter

China Securities research report pointed out that the rise in oil prices led to a second consecutive month of CPI inflation in the United States in August. Our previous view of the “downward trend in core CPI in the second half of the year + rebound in overall CPI” is being realized. The CPI data in August once again illustrates that although the slowdown in US inflation is the general direction, the process is by no means smooth sailing. First, the rise in oil prices brings inflationary pressures from the cost side, and energy commodities and air ticket prices have both rebounded significantly. Second, the labor market is tight, and service inflation excluding rent remains strong. Recently, strikes and wage increase incidents have occurred frequently in the United States, which may pose new obstacles to inflation resistance. For the market, the August inflation data will not cause anxiety, let alone excitement. The Federal Reserve is highly likely to “stand pat” next week, but there is still a possibility of a rate hike in the fourth quarter. (Jinshi Data App)

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LianGuai Encyclopedia

▌Cryptocurrency ATM

A cryptocurrency ATM, also known as a Bitcoin ATM or digital asset ATM, is a physical machine that allows users to buy or sell cryptocurrencies using cash or debit/credit cards. These ATMs bridge the gap between the traditional banking system and the cryptocurrency world, making it easier for people to access and interact with digital assets.

Disclaimer: LianGuai, as a blockchain information platform, publishes articles for informational reference only and does not constitute actual investment advice. Please establish the correct investment concept and be sure to improve risk awareness.

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