• The International Monetary Fund (IMF) has warned that banning cryptocurrency may not be an effective long-term strategy.
• Binance is facing legal issues, as a Brazilian lawmaker seeks to question its general manager.
• BitGo has backed out of the deal to acquire Prime Trust, while MicroStrategy has become profitable on its Bitcoin bet as BTC surged past $30k.
IMF Warns Banning Crypto May Not Be Effective
The International Monetary Fund (IMF) recently stated that banning crypto “may not be effective in the long run” in Latin American and Caribbean (LAC) countries. In those countries, investors seek the benefits of digital assets such as protection against uncertain domestic macroeconomic conditions, circumvention of capital controls, improved financial inclusion for unbanked populations, cheaper and faster payments, and stronger competition. At the same time, crypto adoption presents challenges and risks due to a history of fraud and money laundering activities. The IMF suggested that Central Bank Digital Currencies (CBDCs) would present a more appropriate choice over cryptocurrency in these regions instead of an outright ban.
Binance’s Legal Woes Intensify
Legal troubles have intensified for Binance after a Brazilian lawmaker sought to question its General Manager regarding allegations of insider trading and other fraudulent activities conducted through Binance’s Brazil platform. While no formal charges have been made yet, this development further complicates the company’s standing with regulators in various jurisdictions around the world.
BitGo Back Out Of Deal To Acquire Prime Trust
BitGo has backed out from acquiring Prime Trust after announcing last December that it would do so in order to expand into institutional custody services for cryptocurrencies. No official reason was given for why BitGo decided to back out of the deal at this time; however, it could be related to their recent acquisition by Galaxy Digital which gave them access to Prime Trust’s services without needing to make a full acquisition.
MicroStrategy Becomes Profitable On Bitcoin Bet
MicroStrategy recently became profitable on its Bitcoin bet as BTC surged past $30k due largely in part to the company’s decision last August to invest $250 million into the cryptocurrency. This move proved successful as MicroStrategy reported profits of $15 million for Q1 2021 compared with losses totaling $175 million during 2020 when Bitcoin averaged only around $10k per coin throughout most of the year.
Stably Pauses Withdrawals And Minting After Prime Trust Halts Deposits
Stably recently paused both withdrawals and minting after Prime Trust halted deposits due largely in part due to difficulties integrating with Stably’s banking partner SunTrust Bank following new regulations imposed by FinCEN earlier this month requiring banks dealing with cryptocurrencies or digital wallets/exchanges carry out additional KYC/AML checks on customers using their services . As a result, Stably had no choice but pause operations until they can find another banking partner or resolve their issues with SunTrust Bank