3Commas Weekly Crypto Industry Updates August 23, 2024

Let's discuss on the latest crypto news updates this week of August 23, 2024

Changpeng Zhao transferred to custody of field office ahead of Sept release

Records show that the authorities have moved the former Binance CEO Changpeng “CZ” Zhao to an administrative facility in the Greater Los Angeles area. 

Zhao still has 38 days before his expected release from custody. It’s unclear why he was moved ahead of his release date, scheduled for Sept. 29. 

In April, Zhao was sentenced to four months in prison after pleading guilty to failing to maintain an effective Anti-Money Laundering program as the person in-charge of the Binance exchange.

Why does it matter? Some traders and researchers believe that the release of Changpeng Zhao will positively affect the market but still, we have yet to see how it will positively influence the cryptocurrency market. 

Tether plans to launch dirham stablecoin with UAE partners

Tether is planning to release a new stablecoin adding to its catalog of stablecoins. 

The largest operator of stablecoin USDT, has partnered with the UAE’s Phoenix Group and Green Acorn Investments to launch a dirham-backed stablecoin, which aims to improve international trade and remittances.

According to the Press Release, the new stablecoin will “streamline international trade and remittances” while reducing transaction fees and offering a hedge against currency fluctuations.

Why does it matter? The UAE is currently a crypto-favorable region which has so far accommodated adoption. This welcome development helps to increase cryptocurrency and blockchain technology support in countries who do business with the UAE. 

Hong Kong targets crypto exchanges at fault in a new licensing push

Hong Kong Securities and Futures Commission’s (SFC) requirements find some exchanges not managing cybercrime risks appropriately. 

The regulator has expressed dissatisfaction with the ongoing inspections of cryptocurrency exchanges that are waiting to be fully licensed in the region. 

The regulator also noted that some of these exchanges are excessively dependent on a handful of executives to supervise the custody of client assets, a Bloomberg report said, citing sources it did not identify. 

Why does it matter? Hong Kong is currently strict with cryptocurrency regulations and given the history of exchanges suffering from security vulnerabilities, keeping the exchanges compliant should result in better security for users. 

BlackRock’s iShares Ethereum Trust approaches $1B in net inflows

According to a Morningstar researcher as reported by Cointelegraph, BlackRock’s Ethereum exchange-traded fund (ETF) has reached approximately $1B in net inflows. 

The iShares Ethereum Trust (ETHA) has recorded an inflow of $992M in net inflows, putting the fund on track to surpass the $1B mark. ETHA will be the first Ether exchange-traded fund to crest the $1B mark.

Why does it matter? Just after the Bitcoin ETF, here comes the Ethereum ETF gaining wide adoption. The two top cryptocurrencies with combined valuation of over $1T are arguably becoming a much more attractive traditional investment choice.

Mercado Libre launches USD-pegged Meli Dollar stablecoin in Brazil

The new stablecoin will serve Mercado Libre customers. It will be a new option for managing finances in Brazil’s volatile economy.

Mercado Libre is a known organization in the Latin American e-commerce space. The newly dollar-pegged stablecoin in Brazil was issued through Mercado Libre's financial arm, Mercado Pago. 

The new stablecoin is called the Meli Dollar and will be available through the Mercado's Pago app.

Why does it matter? The adoption of cryptocurrency and especially blockchain technology is growing and can be seen with the numerous launch of stablecoins, the largest market for asset tokenization. 

Conclusion: 

There is an increase in the adoption rate of stablecoins in the world which equally shows an increased interest in the cryptocurrency market and blockchain technology. Also, there is a favorable regulatory environment for crypto institutions and traders.