News that Caught our Eyes on Cryptocurrency

News that Caught our Eyes on Cryptocurrency

There has been a lot going on in the cryptocurrency sector and a few has really caught our attention, from India to Abu Dhabi.


Binance Ads: Cristiano Ronaldo faces $1bn Class Action lawsuit


BBC News reported that Footballer Cristiano Ronaldo is facing a class action lawsuit in the US over his promotion of Binance, the largest cryptocurrency exchange in the world.

The plaintiffs in the suit, claim Ronaldo’s endorsement of Binance led them to make investments that caused them loss.

They are seeking damages of “a sum exceeding” $1bn (£790m) in their suit.

In November 2022, Binance announced its first “CR7” collection of non-fungible tokens (NFTs) in partnership with Ronaldo, which the footballer said would reward fans “for all the years of support”.

NFTs are virtual assets that can be bought and sold, but which have no real-world form of their own – in other words they only exist digitally. Generally, they are used to mark ownership of something, such as a picture or video online.

In a social media video announcing the partnership, Ronaldo told would-be investors “We are going to change the NFT game and take football to the next level”.

The cheapest NFT from the collection was priced at $77 when it went on sale in November 2022 – but one year later, it was priced at about $1.

The claimants allege that Ronaldo’s promotion of Binance led to a “500% increase in searches” for the crypto exchange, which is registered in the Cayman Islands.

They also said it led people to use the firm to invest in what they call “unregistered securities” – such as Binance’s BNB cryptocurrency and that Ronanldo didn’t disclose how much he was paid for the endorsement as required by SEC.

According to the US Securities and Exchanges Commission (SEC), these assets can be considered securities – and so celebrities endorsing them must follow US law.

According to SEC chair Gary Gensler, when celebrities endorse investment opportunities, including crypto-asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements.

The class action suit was filed a week after the US Justice Department told the firm to pay $4.3bn (£3.4bn) in penalties and forfeitures.




Crypto Regulations in India Delayed Until 2025


India is reported to be awaiting global clarity on crypto and web3 regulation hence they are taking a cautious approach to its legislation.

Indian legislator Jayant Sinha has specified that the country is unlikely to introduce a crypto- or Web3-specific legislative bill until probably by mid-2025.

First, Sinha noted that cryptocurrencies and Web3 applications are evolving locally and so more time is needed to identify the most impactful applications for India’s economy and financial system.

According to Sinha, regulators and policymakers were responsible, not just on the innovation side, which of course they want to encourage, but also on the safety side. India must find the balance between innovation and safety side and that balance is going to evolve over the next 12 to 18 months.

Sinha also indicated that global regulatory standards surrounding these technologies remain a work in progress and with key countries like the US and UK holding elections in 2024, additional clarity on international norms is at least 18 months away.

Rather than legislation, Sinha suggested India will rely on a series of narrow policy decisions to act as a de facto regulatory framework, one that aligns with forthcoming G20 recommendations.




Binance Withdraws License Bid in Abu Dhabi

Cryptocurrency exchange, Binance has withdrawn its application for an asset management license in Abu Dhabi.  The application would have allowed Binance’s BV Investment Management unit to operate an investment fund in the United Arab Emirates (UAE).

Binance is said to have made the decision to focus on incubating early-stage founders and startups, as the utilization rate of the fund was low, hence the pulling of the license since it is no longer needed.

Since 2022, Binance has pulled licensing applications in Germany, Cyprus, and the Netherlands. Regulators in Belgium, the UK, Australia, and the Philippines have compelled Binance to cease operations or block access to new users.




Bitcoin Price up 175%

The price of bitcoin has finally recovered from the 2022 controversy that causes a market wide crypto crash.

Bitcoin is said to be trading above $44,000 some days ago. The collapse of the Terra LUNA cryptocurrency sparked one of the biggest sell-offs in the history of the Industry.

The implosion of the FTX crypto exchange last November also resulted in further losses for the industry, pushing bitcoin’s price below $17,000 by the start of 2023, both exchange has now recovered.

Bitcoin’s recent price surge, coincided with gains across other assets, with gold hitting an all-time high this week above $2,100.




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