21 June

The U.K. government will not implement its proposed version of a controversial rule requiring all senders of funds to private crypto wallets to collect identification details of recipients. Based on the feedback received, the Treasury does not think it would make sense to create a data collection rule for unhosted, or private, wallets.

Instead of requiring the collection of beneficiary and originator information for all unhosted wallet transfers, cryptoasset businesses will only be expected to collect this information for transactions identified as posing an elevated risk of illicit finance.”

BnkToTheFuture co-founder Simon Dixon has proposed a recovery plan similar to the solution offered to Bitfinex after its Bitcoin hack in August 2016 – allowing customers to be compensated for their losses through tokens tied to the platform’s recovery.

I believe traditional finance will not have a timely solution for Celsius as we saw in the past with Mt. Gox that still remains unresolved 10 years later. I believe that this can only be solved with a solution using financial innovation like we did with Bitfinex that was resolved within 9 months and worked out very well for depositors.

Rather than pursuing liquidation proceedings, Bitfinex instead came up with an innovative recovery plan, which involved “promises to repay” in the form of BFX tokens to customers, representing the value of the money lost in the hack. These tokens were tradable on the open market or could be held later for future repayment of $1 per token, and effectively allowed customers to speculate on the company’s recovery.

However, there’s also an unofficial community-led recovery plan which appears to be gaining traction on Twitter under the hashtag #CELShortSqueeze. The movement is attempting to force short-sellers of the Celsius token to cover their short positions by purposefully driving up the price of the CEL token through the mass purchase and withdrawals of the CEL token from various exchanges.”

See Also: Babel Finance Reaches Debt Agreement With Counterparties After Withdrawal Freeze
See Also: Hong Kong’s Hoo.com Expects to Re-Open Some Token Withdrawals Today; Finblox Takes Steps to Address Liquidity

Investors exited bitcoin (BTC) positions worth a record $7.3 billion over the past few days, amounting to the biggest U.S. dollar denominated losses in the asset’s history. Approximately 555,000 BTC have changed hands between prices of $18,000 and $23,000. In broader futures markets, bitcoin futures racked up some $436 million in liquidations over the past three days.

Such liquidations could have contributed to bitcoin falling to under $20,000 over the weekend. Bitcoin fell to as low as $18,319 a coin while its market capitalization slumped to about $350 billion, a 73% decline from its November all-time high. Bitcoin saw resistance at $21,000 on Monday morning after a relief rally.

Glassnode analysts said data at current price levels suggested a market bottom. ‘We can see that as prices hit the $17,000 lows [Sunday], just 49% of the $BTC supply was in profit. Historical bear markets have bottomed and consolidated with between 40% and 50% of supply in profit.’

However, traders remain cautious with some stating that macroeconomic conditions must improve and the Fed’s aggressive approach to monetary policy should subside before crypto markets see a bottom.”

See Also: Bitcoin futures enter backwardation for the first time in a year
See Also: ProShares Launches First ETF to Short Bitcoin

“Layer-2 scaling solution Synthetix recently collaborated with liquidity provider Curve Finance to create Curve pools for sETH/ETH, sBTC/BTC, & sUSD/3CRV, allowing investors to cheaply convert synths such as sETH to Ether (ETH).

Synthetix created a buzz across the crypto ecosystem after witnessing a sudden increase in trading activities and an unprecedented comeback of its in-house token, SNX, during an unforgiving bear market. The protocol racked up over $1.02 million in trading fees — overshadowing Bitcoin’s (BTC) daily performance by five times.”

See Also: Bancor pauses impermanent loss protection citing ‘hostile’ market conditions

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