Bitcoin Surges 4% and Nears $45,000

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The Blends Briefs
TL’DR: Here’s a sneak peek into today’s newsletter

• Bitcoin Surges 4% and Nears $45,000

• 25% of ETH supply is now staked on the network

• UK crypto ambitions at risk after watchdog approves just four firms

• Bitsonic chief sentenced to 7 years for crypto theft in South Korea

Global Biscuits

Bitcoin Surges 4% and Nears $45,000
Bitcoin surged over 4% in the past 24 hours, approaching the $45,000 mark for the first time since mid-January. The rise comes after losses incurred following the approval of spot Bitcoin ETFs by the U.S. SEC. Reports suggesting the Fed would not lower interest rates in March, with possible cuts later in the year, have influenced market sentiment. This volatility has led to increased trading volume for Bitcoin, reaching nearly $26 billion. The broader crypto market also saw gains, with the total market cap rising over 3% to $1.79 trillion. Cardano and Solana led gains among the top 10 cryptocurrencies, with Cardano up 11.5% and Solana rising 7.4% in the past 24 hours. Dymension's newly launched DYM token also saw significant gains, rising 16.5% in the past day, reaching a $6.8 billion fully diluted valuation. Concerns about one validator, Big Brain Staking, linked to Dymension's partner firm, were addressed, with plans to redistribute tokens staked with them for balanced governance.

25% of ETH supply is now staked on the network.
The proportion of staked ether (ETH) on the Ethereum network has reached 25% of the total supply, marking a significant milestone almost a year after the Ethereum Shapella upgrade. With over 30.1 million ETH staked, valued at about $73 billion, and 942,023 individual validator stakes, ETH staking surged following the Shapella upgrade, driven by the availability of liquid staking solutions like Lido and Rocket Pool. However, staking rewards have declined from a peak of 8.6% to under 4% currently. Lido Finance dominates ether staking with over 31% of ETH stakes, raising concerns about centralization among staking service providers. Despite the decline in rewards and concentration of staked ETH, growing participation reflects increased confidence in Ethereum's proof-of-stake network.

Tastes of the regions

 UK crypto ambitions at risk after watchdog approves just four firms.
Prime Minister Rishi Sunak's vision of establishing the United Kingdom as a crypto hub faces challenges as the country's regulatory framework presents hurdles for crypto businesses. The Financial Conduct Authority (FCA) has approved only four out of 28 applications for crypto asset service providers in the past year, with a high number of withdrawals and rejections. Stringent anti-money laundering and anti-terror financing standards set by the FCA pose difficulties for many firms seeking approval. Additionally, new advertising rules, extending to crypto companies, have added complexity and cost to compliance efforts. Major players like ByBit, Binance, and PayPal have paused services to UK customers due to these regulations. However, hope remains as the UK government prepares to roll out new digital assets laws to rival the EU's regime, providing clarity and certainty for crypto businesses. The FCA is strengthening its resources to understand the crypto market better and is committed to developing a future regulatory regime for cryptoassets. Despite challenges, the UK aims to position itself as a leading center for crypto innovation and investment, aligning with government policy and global trends in the financial industry.

Bitsonic chief sentenced to 7 years for crypto theft in South Korea.
The CEO of South Korean crypto exchange Bitsonic, Jinwook Shin, has been sentenced to seven years in prison for embezzling 10 billion won ($7.5 million) worth of customer deposits. Alongside him, the company's VP of technology, known as Mr. A, received a one-year prison sentence. Shin was accused of manipulating crypto prices and trading volumes on Bitsonic, while Mr. A was charged with creating a program that allowed Shin to manipulate the system. The court stated that both individuals showed no remorse, and a significant portion of the stolen funds remains unrecovered. This sentencing follows a series of cryptocurrency-related scandals in South Korea, prompting tighter regulations. The country's Financial Services Commission recently announced that crypto criminals could face life sentences under new laws effective from July. South Korea's Financial Supervisory Service plans to collaborate with international regulators, such as the US Securities and Exchange Commission, to learn about their approaches to digital assets.

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