From BTC BlackJack to Behind Bars 🎰

May 24, 2023

Author

CryptoBrew
May 24, 2023

GM Brew Crew, remember that rush of excitement when you rallied the courage to ask that girl way out of your league to senior prom - knees weak, palms sweaty? Well today’s brew has us feeling the same way. Lets dive in ⬇️

On the menu today:

  • MALAYSIAN POLICE CRACK DOWN ON ILLEGAL CRYPTO EXCHANGE, ARRESTING 40 IN RAID 🇲🇾👮

  • POLYGON CLIMBS THE LADDER 🪜

  • DIFFERENT APPROACH TO CRYPTO REGULATION 🧐

Today’s Charts:

Snapshot taken 9:47am EDT

Snapshot taken 9:47am EDT

MALAYSIAN POLICE CRACK DOWN ON CRYPTO EXCHANGE, ARRESTING 40 IN RAID 🇲🇾👮

The Malaysian authorities have demolished an alleged unlawful international crypto exchange, Huobi, powered by USDT and detained dozens of people for operating without registration.

  • 40 people were detained by Malaysian authorities after a raid on an allegedly illegal international cryptocurrency exchange powered by USDT, which was reportedly used largely by residents of Mainland China to enable the trade of USDT for cash.

  • The National Financial Crime Center and the police assert that they demolished the exchange, which they think also engaged in unlawful online gambling operations. It was discovered by the inquiry that the group engaged in bitcoin exchange business without authorization and did not register with authorities as required by Malaysian law.

  • Mobile phones, cash, gold bars, designer goods, and other pieces of jewelry have all been confiscated, and the exchange is suspected of running a gambling ring for Taiwanese clients while employing "money mule" bank accounts for Chinese citizens.

POLYGON CLIMBS THE LADDER 🪜

In the dynamic world of cryptocurrencies, the top 10 list is usually known for its stability. However, recent weeks have seen significant shifts, with Polygon (MATIC) making a notable comeback by overtaking Solana (SOL) and reclaiming its spot in the top 10. 

  • In the top 10 cryptocurrency rankings, Polygon (MATIC), a well-known Ethereum Layer-2 scaling solution, has effectively recaptured Solana (SOL), which had a difficult week. This development signifies a significant change in how these digital assets are ranked.

  • MATIC is currently the 10th largest cryptocurrency with a market cap of $8.08 billion and a trading price of $0.87. In comparison, Solana (SOL) has lost its key support level and is currently trading at $19.49, down around 6% in the past week.

  • MATIC's resurgence in the top 10 may be related to rumors of a potential airdrop by Polygon co-founder, Sandeep Nailwal, sparking increased usage of Polygon zkEVM. The total value locked (TVL) on Polygon zkEVM has grown significantly since Nailwal's comments and currently stands at $14.21 million.

DIFFERENT APPROACH TO CRYPTO REGULATION 🧐

The International Organization of Securities Commissions (IOSCO) released a statement that cryptocurrencies should be regarded on par with traditional financial assets (stocks and bonds) due to their similarities.

  • The IOSCO’s recommendations contradict that of politicians in the United Kingdom, who have advocated for the regulation of crypto trading to be akin to high-risk sectors such as gambling.

  • According to IOSCO, regulators should handle cryptocurrencies within existing frameworks whenever possible, and establish new ones if the current systems prove inadequate.

  • The IOSCO suggests that regulators adopt a consistent global approach to the crypto sector, given that crypto companies frequently operate across multiple jurisdictions.

  • As you can see, these two views on crypto regulation are just a tad different… ⬇️

“The regulatory approach should seek to achieve regulatory outcomes for investor protection and market integrity that are the same as, or consistent with, those that are required in traditional financial markets.”

The International Organization of Securities Commissions

“However, with no intrinsic value, huge price volatility and no discernible social good, consumer trading of cryptocurrencies like bitcoin more closely resembles gambling than a financial service, and should be regulated as such.”

Harriet Baldwin: UK Conservative MP and Treasury committee chair

Special Blend: Morning Meme Roast

As the CryptoBrew Daily comes to a close, we invite you to join us on Twitter for more crypto chat. Think of it as a chill gathering of like-minded folks, minus Chad talking about his 1-rep deadlift max and your tipsy uncle who always shares TMI stories. Let’s keep the crypto conversation going!

***DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and is not intended to be construed as financial advice or a solicitation to buy or sell any assets. We urge you to exercise caution and conduct your own research before making any financial decisions.