The week was an interesting one for the cryptocurrency industry with many fresh developments, both good and bad.
Cryptocurrency exchange Kraken said that it would be reducing its workforce by 30 with no fewer than 1,100 people leaving the company. The exchange said that it was also impacted by the crash of Sam Bankman-Fried’s FTX.
The ripple effects of FTX’s crash have spread further into the industry this week with Genesis, yet another brokerage, pausing withdrawals to contain the initial shock of Bankman-Fried’s project collapse.
Understandably, investors’ trust is already shaky and not being able to access funds causes serious reputational damage for many companies.
In terms of regulation, the Brazilian Chamber of Deputies successfully passed a new bill on Tuesday that will introduce new cryptocurrency regulation in the country that will help establish a more robust set of rules for companies, local businesses, and regulators to follow.
Another company to feel the pinch was BlockFi which went straight ahead and filed for Chapter 11 bankruptcy proceedings.
Once again, the company said that it had been impacted by the FTX collapse. As markets are crashing, Australians are still most willing to trust Bitcoin out of all available cryptocurrencies.
Scams related to cryptocurrencies in the UK have gone up by one-third, Action Fraud reports this week. The increase has resulted in consumers losing £226m between October 2021 and September 2022. A total of 10,030 such incidents were recorded at the time.
Uzbekistan has issued its first blockchain and cryptocurrency licenses this year, with the first two crypto service providers already receiving theirs in the country. The two new entities are Crypto Trade NET LLC and Crypto Market LLC which are authorized to extend crypto-related services.
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