In RockItCoin’s effort to empower individuals in the cryptocurrency space, we have extracted top industry stories for your Weekly Digest. Cryptocurrency continues to dominate the news and here are some key happenings you should know.
Brazil Signs New Crypto Bill into Law
Brazilian President Jair Bolsonaro signed bill 14.478 into law last week, establishing a regulatory framework for trading and using cryptocurrency as payment in Brazil. The new law does not make Bitcoin legal tender in the country, but it does recognize it as a means of payment and store of value. Before the law goes into effect in approximately 180 days, the executive branch will choose an organization to monitor the crypto markets. The Central Bank of Brazil is likely to be chosen, but if it is, it may limit Bitcoin\’s use within the country. Overall, it’s exciting to see another country officially recognize the popularity of crypto!
Sam Bankman-Fried Released on Bail
Sam Bankman-Fried has been released on bail, as allowed by a federal judge last Thursday. The $250 million bail was secured through equity in his parent’s Palo Alto house in California. The former FTX CEO also has a long list of requirements; he cannot make personal transactions totaling over $1,000, cannot leave the house except for exercise, and must attend mental health and substance abuse treatment. Former CEO of Alameda Research Caroline Ellison pled guilty to criminal charges and had bail set at $250,000 along with giving up her travel documents. It’s good to see that those in charge of FTX and Alameda’s illegal scheme are getting justice. Hopefully, the customers of the defunct exchange will see their funds returned someday.
Global Crypto Exchange Binance sees 90,000 BTC Outflow in a Week
Binance, the largest crypto exchange by volume, saw over 90,000 Bitcoin leave in a massive bank run, where users test an exchange’s ability to back and process withdrawals. The exchange previously hit an all-time high of 655k Bitcoin held on their platform, and within a week dove to 565k when over $600 million was withdrawn in a day. This may be the post-FTX “new normal” for crypto exchanges, where users heavily test the processing abilities of platforms to ensure their funds are backed. It’s important to also note that decreasing balances of Bitcoin on exchanges could be a good sign, as it shows that less people are looking to sell their Bitcoin, and possibly instead hold it as a long-term investment.