Crypto News Roundup: August 8, 2023 📢

Welcome to the Crypto News Roundup, where I bring you the latest and most important developments in the world of crypto.


Today, I have some exciting news about PayPal launching its own stablecoin, Bitstamp raising funds for expansion, Hong Kong regulator warning crypto exchanges, Solana-based Cypher Protocol suffering an exploit and Blockchain.Com Obtaining Payment License from Singapore Central Bank. Let’s dive in!

PayPal Launches Dollar-Pegged Stablecoin on Ethereum 💸

PayPal, the global payments giant, has announced the launch of its own U.S. dollar-pegged stablecoin called PayPal USD (PYUSD). The stablecoin, which will be issued by Paxos Trust Co, is expected to become “a part of the overall payments infrastructure” and marks the payments giant’s entry into the cryptocurrency market.

PYUSD will be issued on the Ethereum network as an ERC-20 token and is backed by short-term treasuries, dollar deposits, and cash equivalents. PayPal said that the stablecoin will enable faster and cheaper cross-border payments, as well as provide more financial inclusion and access to digital assets.

PayPal has been gradually expanding its crypto offerings since last year, when it started allowing its users to buy, sell, and hold cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Earlier this year, it also enabled its users to checkout with crypto at millions of online merchants.

PayPal’s stablecoin launch is a significant milestone for the crypto industry, as it shows the growing adoption and acceptance of digital assets by mainstream players. It also poses a potential challenge to other stablecoins such as USDT and USDC, which currently dominate the market.

Bitstamp in Talks to Raise Funds for Expansion 🚀

Bitstamp, one of the oldest and largest crypto exchanges in the world, is in the process of raising fresh funding in order to expand the number of markets it serves around the world. According to a Bloomberg report, Michael Novogratz’s Galaxy Digital Holdings is acting as an adviser in the funding round.

The funds will be used to launch a licensed derivatives trading operation in Europe and expand to more markets in Asia. Bitstamp CEO Jean-Baptiste Graftieaux stated that the exchange is not for sale and is not actively looking to sell the company. He added that the current priority is to raise money through strategic investors to accelerate Bitstamp’s growth by providing new products and services to retail and institutional crypto customers.

Bitstamp was founded in 2011 and is based in Luxembourg. It has over 4 million users and supports more than 20 cryptocurrencies. It is one of the few exchanges that has obtained a BitLicense from New York State Department of Financial Services, as well as licenses from other regulators in Europe.

Bitstamp’s fundraising plans reflect the increasing demand and competition in the crypto space, as more investors and traders flock to digital assets amid rising prices and innovation. It also shows the ambition of Bitstamp to become a global leader in the crypto industry.

Hong Kong Regulator Warns Crypto Exchanges Can Be ‘Criminal’ 🚨

The Hong Kong Securities and Futures Commission (SFC) has issued a notice warning unlicensed crypto exchanges engaging in “improper practices” that their conduct may be liable to committing a “criminal offence” in the city. It also stated that such entities will be barred from receiving a license under the new regime for crypto retail trading.

The notice reads,

“It has come to the attention of the SFC that, anticipating the transitional arrangements, some unlicensed VATPs set up new entities to provide virtual asset services in Hong Kong. For example, they may, under new or existing entities, launch certain virtual assets for trading by retail clients, trading services in virtual asset derivatives, or arrangements involving virtual assets such as virtual asset ‘deposits,’ ‘savings’ or ‘earnings’ which are not allowed under the new regime.”

The SFC is referring to Virtual Asset Trading Platforms (VATPs), which are crypto exchanges that offer trading services to retail investors. The regulator announced last year that it will introduce a new licensing framework for VATPs, which will require them to comply with strict rules on anti-money laundering, investor protection, custody, auditing, and reporting.
The SFC said that it will not tolerate any attempts by unlicensed VATPs to circumvent or undermine the new regime. It urged investors to be cautious when dealing with such platforms and report any suspicious activities to the authorities.

The SFC’s warning is a reminder of the regulatory challenges and uncertainties that crypto exchanges face in different jurisdictions. It also highlights the need for more clarity and consistency in crypto regulation across the globe.

Solana-Based Cypher Protocol Suffers Exploit 🔥

Cypher Protocol, a decentralized exchange (DEX) built on Solana blockchain, reportedly lost almost $1 million in crypto due to an exploit that occurred yesterday. The protocol’s contracts are now frozen while the team attempts to investigate the cause of the exploit and make contact with hackers to negotiate a return of funds.

Cypher Protocol is a DEX that allows users to trade crypto assets with low fees, high speed, and liquidity. It also offers features such as margin trading, lending, borrowing, and staking. The protocol is powered by its native token CYPH, which is used for governance and rewards.
The exploit happened during Cypher’s biannual hacker house mtnDAO, which it hosts in Salt Lake City alongside fellow Solana trading protocol marginfi. The hacker house is an event where developers and hackers gather to work on projects and challenges related to Solana ecosystem.

The Cypher team said that the exploit was not a result of any vulnerability in the protocol’s code, but rather a “malicious attack” by an external party. They also assured that no user funds were affected and that they are working hard to resolve the issue and restore the protocol’s functionality.

The Cypher exploit is another example of the security risks and threats that DEXs and other DeFi protocols face in the crypto space. It also shows the importance of auditing and testing the code before deploying it on the mainnet.

Blockchain.Com Obtains Payment License from Singapore Central Bank 🏦

Blockchain.com, a leading crypto exchange and wallet provider, has announced that it has obtained a major payment institution (MPI) license from the Monetary Authority of Singapore (MAS), the country’s central bank and financial regulator. The license will enable the platform to offer digital payment token services to institutional and accredited investors in Singapore.

Blockchain.com said that the license is a “significant milestone” for the company, as it demonstrates its commitment to compliance and security in the crypto space. The license also allows the platform to expand its presence and reach in the Asia-Pacific region, which is one of the fastest-growing markets for crypto adoption.

According to a Cointelegraph report, Blockchain.com received in-principal approval from MAS in September last year, after applying for the license in February 2020. The approval makes Blockchain.com the twelfth digital payment token service provider in Singapore, joining other platforms such as Binance, Coinbase, Gemini, and Bitstamp.

Singapore is widely regarded as one of the most crypto-friendly jurisdictions in the world, as it has a clear and supportive regulatory framework for digital assets. The MAS introduced the Payment Services Act (PSA) in January 2020, which requires crypto service providers to obtain a license from the authority and comply with anti-money laundering and counter-terrorism financing rules.

Blockchain.com is one of the oldest and most popular crypto platforms in the world, with over 76 million verified users and $1 trillion in transactions processed. The platform offers a range of products and services, including crypto trading, lending, borrowing, staking, earning, and institutional solutions.

The MPI license from MAS is another achievement for Blockchain.com, which has been growing rapidly in recent years. The company raised $300 million in a Series C funding round in March this year, valuing it at $5.2 billion. It also acquired a UK-based broker-dealer called AiX earlier this year, and launched its own venture capital arm called Blockchain.com Ventures.

Blockchain.com’s CEO Peter Smith said,

“We are honored to be one of the first cryptocurrency platforms to receive an MPI license from MAS. This is an important step forward for our customers in Singapore who can now access our full suite of products and services with confidence.”

Conclusion 🙌

That’s all for today’s Crypto News Roundup. I hope you enjoyed reading it and learned something new. Stay tuned for more updates and insights from the crypto world. Until next time, happy trading! 😊

Sources 🔗

1. Crypto Exchange Bitstamp in Talks to Raise Funds for Expansion, CEO Says | Source: Bloomberg
2. Payments Giant PayPal to Launch Dollar-Pegged Stablecoin on Ethereum | Source: Decrypt
3. Hong Kong Regulator Warns ‘Improper Practices’ by Crypto Exchanges Can Be ‘Criminal’ | Source: The Block
4. Solana-Based Cypher Protocol Experiences Exploit, Freezes Smart Contract | Source: CoinDesk
5. Blockchain.Com Scores Payment License from Singapore Central Bank | Source: CoinTelegraph

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