August’s happenings shaped the cryptocurrency and blockchain sectors. In reaction to Paxos’ BUSD stablecoin minting ban, Binance’s February 2024 BUSD support phaseout garnered notice. Grayscale Bitcoin Trust (GBTC) won a legal fight with the SEC, moving closer to a Bitcoin ETF and affecting crypto investments. Technological advances defined the month. Within 11 days of its mainnet introduction, the Base Layer 2 network had one million addresses, demonstrating the need for scalable blockchain solutions. Narendra Modi’s support for global standards in new technologies like cryptocurrency highlighted the necessity for international collaboration. However, Tornado Cash faced money laundering allegations. Jacobi Asset Management’s Euronext Amsterdam introduction of the first Bitcoin ETF opened crypto markets to institutions.
Binance Phasing Out Support for BUSD Stablecoin by February 2024
Binance plans to gradually eliminate support for the BUSD stablecoin. The end of Paxos’ BUSD token minting urged this choice. Binance users should switch BUSD to stablecoins or digital assets before February 2024. Importantly, the BUSD will maintain its 1:1 exchange rate with the US currency. Important dates include September 7, 2023, when cross-margin BUSD borrowings stop and numerous networks exit. Ethereum-based BUSD (ERC-20) transactions will continue until directed differently.
Binance promotes FDUSD as a stablecoin. Hong Kong’s First Digital Group debuted this stablecoin on Binance in late July. Binance’s stablecoin pioneership and BUSD trajectory led to this milestone. The Paxos Trust Company will redeem BUSD tokens until February 2024.
Grayscale’s GBTC Triumphs over SEC in ETF Lawsuit
In a significant cryptocurrency sector event, Grayscale Bitcoin Trust (GBTC), a prominent crypto asset management business, won a lawsuit against the SEC. Grayscale wanted to turn their over-the-counter GBTC application into a Bitcoin ETF.
On August 29, U.S. Court of Appeals Circuit Judge Neomi Rao granted Grayscale’s application review request and overturned GBTC’s listing application refusal. The SEC’s lack of “clear reasoning” for rejecting Grayscale’s application had previously concerned Judge Rao. This court win is noteworthy, but Grayscale’s Bitcoin ETF may not be listed. The asset manager confronts several regulatory barriers.
Base Layer 2 Network Surpasses One Million Addresses in Record Time
Layer 2 solutions solved the blockchain’s scalability issues. The pioneering layer 2 network Base attained a milestone. Base achieved one million addresses 11 days after the mainnet’s introduction. The network has collected 532,000 addresses via illegal bridges before its August 9, 2023 debut, raising expectations. The growth rate in layer 2 solutions is quicker than before. Arbitrum and Optimism surpassed one million unique addresses after 303 and 191 mainnet days. On June 3, 2023, zkSync attained this milestone 71 days after its March 25 debut with over one million Era mainnet addresses.
The base is supported by Coinbase and driven by meme currencies like $100 million-valued Bald (BALD). Base has enhanced network traffic and user engagement without a token. This demonstrates layer 2 protocols without native tokens gaining popularity for extensive adoption.
PM Modi Advocates Global Standards in Cryptocurrencies
Prime Minister Narendra Modi bluntly told Business Today about the fast pace of technology. Prime Minister Modi stressed the need to accept and integrate these advances, saying that the fast evolution of technology makes opposition or rejection futile. The focus should be inclusion and uniformity.
Modi has urged for global norms in emerging technologies, emphasizing their relevance. The person stressed the need for global standards and rules, especially for new technologies like cryptocurrencies.
Tornado Cash Faces Billions in Money Laundering Charges
Russian cryptocurrency mixing company Tornado Cash has been charged with billions in money laundering. Roman Storm and Roman Semenov, the service’s owners, have been accused of money laundering and sanctions violations. A comprehensive study links the service to North Korean money laundering.
Storm and Semenov are accused of money laundering conspiracy, sanctions violations, and unlicensed money transfer services. Roman Storm is in jail in Washington, but Roman Semenov is missing. One of the co-founders, Alexey Pertsev, is being sued in Amsterdam for his alleged involvement in the website’s operations. U.S. Attorney Damian Williams describes Tornado Cash as an innovative privacy solution that helps criminals hide their illegally gained riches. Waymaker LLP attorney Brian Klein expressed dismay, citing Storm’s strong cooperation with the authorities and his persistent denial of illicit activity.
Jacobi Asset Management Launches First Bitcoin ETF on Euronext Amsterdam
London-based Jacobi Asset Management listed the first Bitcoin ETF on Euronext Amsterdam. The Guernsey Financial Services Commission (GFSC) approved the platform in October 2021, allowing the first Bitcoin ETF launch. The failure of FTX and Terra delayed the debut from last year. The Jacobi FT Wilshire Bitcoin ETF (BCOIN) is now available to investors with a 1.5% annual management fee.
Fidelity Digital Assets holds the fund, while Flow Traders trades. The DRW and Jane Street have membership approval. This sustainable Bitcoin ETF gives institutional investors a safe and easy way to participate in the major cryptocurrency. Martin Bednall, Jacobi’s CEO, expects the ETF launch to boost institutional Bitcoin adoption.
PayPal Launches PayPal USD Stablecoin
PayPal USD integrates traditional and digital financial systems. This stablecoin tracks the US dollar. This new digital asset will transform Web3 payments by making them easy for consumers, retailers, and developers. PayPal USD is a reliable stablecoin transaction method. Its 1:1 exchange rate with the U.S. dollar is guaranteed by reserves of dollars, short-term Treasuries, and other cash instruments. The Paxos Trust Company’s offering assures transparency and redemption.
PayPal USD leads the translation of fiat and digital currencies to improve the customer experience by leveraging PayPal’s scalable payment solutions. The coin is an ERC-20 standard on the Ethereum blockchain. It makes it compatible with other cryptocurrency exchanges.
