The Shib Crypto Recap: Thursday

Today’s cryptocurrency news is focused on various subsectors, including the forced liquidation of a significant player in the crypto banking industry. This development coincides with heightened regulatory scrutiny from South Korean authorities, intensifying the spotlight on industry practices. Additionally, a backlash against a particular crypto project has emerged, which has drawn community attention. Moreover, recent remarks from Vice President Kamala Harris concerning the United States’ position in the blockchain arena are stirring discussions. Compounding these issues are potential regulatory shifts affecting the crypto gaming scene in Japan.

Regulatory Pressure: The Hidden Factors Behind Silvergate’s Liquidation

Recent insights from bankruptcy documents and insider accounts indicate that the voluntary shutdown of major US crypto bank Silvergate in 2023 was not exclusively a byproduct of the larger cryptocurrency market downturn. Rather, it appears to have been influenced significantly by pressure from officials within the Biden administration. Reports suggest that regulators enforced an unofficial limit on the bank’s cryptocurrency deposits, capping them at 15%, which severely compromised its business model despite the bank’s recovery from a previous bank run in 2022 and a subsequent rise in deposits.

These revelations raise serious concerns regarding the Biden administration’s stance on the domestic crypto sector and suggest a potential intent to stifle this emerging industry while also raising questions about whether such regulatory measures played a role in the regional banking crisis observed in early 2023.

South Korea Pledges Vigilance to Shield Crypto Market from Fraud

In a bid to curtail misconduct in the cryptocurrency sector, South Korean authorities are intensifying their regulatory efforts. Lee Bok-hyun, head of the Financial Supervisory Service (FSS), stated a strong, zero-tolerance approach towards unfair trading in a meeting with 16 cryptocurrency leaders. He highlighted the importance of tracking prices for new coins and being alert to unverified rumors. They also discussed implementing the Virtual Asset User Protection Act. Lee called on firms to adhere to legal requirements and enhance communication with regulators. He promised continued collaboration with policy authorities to resolve regulatory uncertainties and support the industry’s self-regulation.

Setback for Worldcoin: Fines Imposed Over Data Privacy Breaches in South Korea

The Personal Information Protection Commission (PIPC) of South Korea has fined Worldcoin 1.14 billion won (around $850,000 USD) for violating the Personal Information Protection Act (PIPA). The commission found that Worldcoin did not sufficiently inform users about how their biometric data, particularly iris scans, would be collected and used. Also, the company did not obtain proper consent from individuals for processing this sensitive data. To make matters worse, Worldcoin illegally transferred this data overseas, mainly to Germany, without proper notifications, breaching additional privacy regulations.

Harris Pledges Global Leadership in Blockchain Tech—Not Everyone Is Convinced

Democratic presidential candidate Kamala Harris has evolved her campaign narrative to highlight the importance of America’s leadership in dynamic sectors. In her latest remarks, she vowed to invest in areas including biomanufacturing, aerospace, artificial intelligence, and blockchain technology, signaling a recognition of the revolutionary capabilities these technologies possess.

She advocated for a stable regulatory environment that encourages economic growth while also protecting both consumers and investors. This indicates a noticeable shift away from Trump’s more permissive regulatory framework, which received various responses from the crypto landscape. Many in the cryptocurrency sector remain wary of her actual objectives, particularly due to the proposed tax on Bitcoin mining, which they perceive as a discouraging sign.

Japan’s FSA Aims to Modernize Crypto Gaming Regulations

Japan’s Financial Services Agency (FSA) is working on reforming its crypto gaming laws. It aims to create a framework that simplifies how businesses manage cryptoassets. Current rules, based on the Payment Services Act, make many gaming companies hesitant to explore blockchain gaming. The FSA is also reviewing asset management practices for crypto firms. This comes in response to industry leaders and politicians who believe Japan’s regulations hinder Web3 innovation, pushing startups to move overseas. These talks occur within a Financial System Council working group that advises the FSA.

Shiba Inu Builds Momentum with Strong Trading Activity

Meanwhile, in Shiba Inu news, $SHIB has recently experienced a steady rise, bringing hope to investors. Although the gains have been modest, analyst Crypto Sheriff has sparked renewed interest with predictions of larger increases ahead. Their analysis suggests that a stronger rally could be coming, despite the current slow progression.

SHIB has very recently reached an intraday high of $0.00001509 and a low of $0.00001441. The trading volume was notable, with 2.39 trillion SHIB traded and 35.31 million USDT, indicating strong market activity. High volume often hints at price changes, supporting Sheriff’s beliefs in a potential surge for SHIB soon.

The current state of the cryptocurrency sector emphasizes the multifaceted challenges and developments shaping its future. All of these underscore the need for stakeholders to navigate a complex web of economic, political, and social factors driving the future of digital currency and technology.

Malaya has positions in SHIB, ETH, USDT, MATIC, etc. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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