3Commas Weekly Crypto Industry Updates September 6th, 2024

Let's discuss the latest news in crypto for the first week of September 6, 2024

India re-evaluates foreign crypto exchanges registrations

India’s Financial Intelligence Unit (FIU) is reportedly looking to allow offshore crypto exchanges to register again after the previous ban for noncompliance with the country’s AML laws.

The FIU — responsible for Anti-Money Laundering (AML) compliance in India — is reportedly evaluating requests from four overseas crypto exchanges. 

Following FIU registration approvals for Binance and KuCoin, “We have received requests from four more offshore crypto exchanges to operate in India, and we assume that at least two of them will be permitted to resume operations by the end of FY25,” local news media reported, quoting a source it did not identify.

Why does it matter?

The crypto regulatory environment in India appears to be a favorable one which has encouraged more offshore exchanges to apply after implementing compliance with the regulations. 

Ripple co-founder signs letter endorsing Harris for president

According to a CNBC Sept 6 report, Chris Larsen, co-founder and executive chairman at Ripple, the firm behind the XRP cryptocurrency, is among 88 signers of a letter endorsing Vice President Kamala Harris for president.

The report points to a letter signed by 88 corporate leaders in the United States and mentioned other prominent signees, including Aaron Levie, co-founder and CEO of the enterprise cloud company Box, and Yelp CEO Stoppelman, among others.

The report comes shortly after former Ripple board member Gene Sperling left the White House to join Kamala Harris’ 2024 presidential campaign in early August, 2024.

Why does it matter? 

It may signal that some leaders in the crypto industry believe they’ll receive favorable regulatory environments with the Harris administration, or it may just be personal preference of the CEOs of these companies. 

‘Unlucky’ MEV bot takes out huge $12M loan just to make $20 in profit

MEV bot took out a $11.9 million loan to sandwich attack a user but ended up with crumbs. 

According to Arkham data, the MEV bot made a total of 14 transactions during the time period of its sandwich attack — lending, borrowing and returning around $700,000 in USDC and WETH loans across decentralized finance protocols Aave and Uniswap.

Etherscan transaction data confirmed the bot made only $20 in profit after paying gas fees. The transaction only took 12 seconds.

Why does it matter? 

Traders should be cautious when making transactions on dex platforms to avoid being a victim of a sandwich attack.

Qatar releases a new regulatory framework for digital assets

The Qatar Financial Centre (QFC), a business center based in Doha, Qatar, has released a comprehensive framework for regulating and creating digital assets. 

The rules include tokenization procedures and the legal recognition of property rights in tokens and underlying assets, custody arrangements, transfer and exchange. Additionally, the framework also provides for the legal recognition of smart contracts. 

The QFC allows up to 100% foreign ownership and 100% repatriation of profits, charging a 10% corporate tax on locally sourced profits.

Why does it matter? 

The regulatory environment in the middle-east appears to be a positive development for the crypto natives in this region. This shows the good commitment from the regulators in this region to create a favorable environment for adoption.

Binance CEO says CZ is banned from managing or operating the exchange

According to a Sept. 5 Axios report, Binance CEO Richard Teng said CZ has received a lifetime ban from managing or operating the exchange. This is outside the three years, as previously reported by many news outlets.

The crypto exchange reportedly said the former CEO was barred from a management position at Binance, there is no known clear or explicit requirement by either Zhao’s or Binance’s plea agreements made by prosecutors.

Why does it matter?

While many traders anticipate the return of CZ from prison, and many argue for his reinstallment as the CEO, the other members of the board may prefer a less controversial figure to be at the helm as the company seeks to navigate increasingly complicated legal and regulatory environments. 

Conclusion: 

There is a need to be careful and avoid being a victim of sandwich attacks resulting from dex trades. Also, the taxation of crypto and the regulatory laws in the middle-east appears to be favorable for the crypto traders and natives in this region. Nevertheless, the election which comes in November has some support from crypto firms, signaling a good relationship with the government.