The collapse of FTX, one of the world’s cryptocurrency exchange mastodons, has triggered a global response among regulators, with the Organization of Securities Commissions confirming that a new way of regulating and monitoring mega companies in the industry is necessary.
Binance, which refused to buy out the troubled exchange, has agreed to set up a $1bn recovery fund which has been created in the hope of helping the industry weather the imminent shocks stemming from FTX’s sudden meltdown.
Peter Schiff, the man who predicted the subprime mortgage crisis in 2007-2008, has called the most recent events in the industry as the beginning of the end for the industry.
Others have suggested that should Binance or Tether follow with a similar crash, the industry may end up in a deep recession that impacts global markets and limits cryptocurrencies’ ability to grow.
Genesis, a cryptocurrency lender, has assured that despite the present challenges in the industry and its own struggles, it has no intention of filing for bankruptcy.
In light of the growth of the cryptocurrency industry, governments around the world have been actively pushing to introduce new regulation that will help them deal with the surging interest for these assets. Kenya is among the latest to pass a Capital Markets (Amendment) Bill 2022 that reflects that.
Fraudsters have been part of the current cryptocurrency landscape once again this week, with two Estonians arrested over a $575m fraud they perpetrated on US citizens and others.
Meanwhile, DraftKings has become the victim of a hacking attack that saw users lose funds from their balances.
Australians have been cautioned to look out for a new form of cryptocurrency scam that cleverly uses physical Bitcoin wallets that are left in public spaces to try to solicit people to scan a QR code which results in their crypto balances being emptied out.
Cardano in the meantime announced that it is pushing ahead with plans to launch a new privacy-focused blockchain.