Crypto Biz: Binance’s chaotic June, miners gear up for halving, Bitfinex’s Latam expansion

June was a tough month for Binance, as it faced tension tests worldwide after the United States Securities and Exchange Commission (SEC) submitted a lawsuit versus the crypto exchange and its leadership.In a nutshell, over the previous 30 days, the Belgian monetary regulator bought Binance to stop all crypto services, the exchange stopped working to acquire a license in the Netherlands, Binances Brazil head has actually been subpoenaed to appear before Congress concerning a Ponzi plan examination, and just a few days back, another ongoing examination in France ended up being public. And theres more: Binances United Kingdom-based subsidiary canceled its registration with the Financial Conduct Authority, and in the U.S., the exchange still has a long road ahead in its struggle with regulators. Furthermore, the exchange was rejected a crypto custody license in Germany and lost its euro banking partner. Yet, regardless of all these advancements, Binance remains unblemished as the top pet dog among centralized exchanges, with $58.11 billion in overall value locked, down from $63.8 billion on June 1, according to data from DefiLlama. The exchanges next big focus remains in the United Arab Emirates, a supposedly “prime destination” for crypto companies seeking a clear path forward.” We keep building,” Binance CEO Changpeng Zhao said in a tweet on June 28, following a long and chaotic month. Todays Crypto Biz takes a look at the story behind Binances debanking in Australia, Bitcoin (BTC) miners preparing for the next halving, MicroStrategys latest Bitcoin purchase and Bitfinexs growth in Latin America. Binance Australia got 12 hours notification prior to it was debanked, exec saysThere was no prior caution, consultation or redress. In the middle of the night, Binance Australias team was suddenly told it would be “cut off” from the nations banking system. Binance local manager Ben Rose shared details of the exchanges debanking in the nation at the Australian Blockchain Week on June 26. In May, the business revealed that its dollar services were suspended after its payments company Zepto was informed to cease support for Binance. According to Rose, the relocation impacted around 1 million Australian-based customers, with Binance now seeking an alternative payment provider.Ben Rose (ideal) on stage at the Australian Blockchain Week. Source: CointelegraphRiot Platforms to add 33,000 Bitcoin miners ahead of 2024 halvingBitcoin miner company Riot Platforms is loading up for the next halving cycle by buying 33,280 “next-generation” rigs for its Texas center, costing $162.9 million. The miners, which were sourced from MicroBT, will enhance the companys self-mining capability by 7.6 exahashes per second (EH/s) to 20.1 EH/s once the makers are set up in the very first quarter of 2024. Amongst the devices, 8,320 are M56S+ models with a hash rate of 220 terahashes per second (TH/s), while the remaining 24,960 M56S++ are somewhat more effective at 230 TH/s. MicroStrategy buys $347 million worth of Bitcoin in the middle of market thawMicroStrategy announced the purchase of 12,333 Bitcoin on June 28, worth $347 million at publication. MicroStrategy now owns 152,333 BTC worth $4.52 billion, with a typical purchase price of $29.668 per coin. The coins were bought between April 27 and June 27, with the purchase partly funded by the issuance of brand-new stock. MicroStrategy has been actively purchasing Bitcoin utilizing money and stock financing throughout the crypto bearish market, sometimes irrespective of rate. In Q1 2023, the company reported its very first rewarding quarter because 2020 due to a one-time earnings tax benefit. MicroStrategy has actually obtained an additional 12,333 BTC for ~$ 347.0 million at a typical rate of $28,136 per #bitcoin. Since 6/27/23 @MicroStrategy hodls 152,333 $BTC acquired for ~$ 4.52 billion at a typical rate of $29,668 per bitcoin. $MSTR https://t.co/joHo1gEnR0— Michael Saylor ⚡ (@saylor) June 28, 2023

June was a tough month for Binance, as it dealt with tension tests worldwide after the United States Securities and Exchange Commission (SEC) submitted a lawsuit against the crypto exchange and its leadership.In a nutshell, over the previous 30 days, the Belgian monetary regulator bought Binance to cease all crypto services, the exchange failed to acquire a license in the Netherlands, Binances Brazil head has been subpoenaed to appear before Congress concerning a Ponzi scheme examination, and simply a couple of days back, another continuous examination in France became public. And theres more: Binances United Kingdom-based subsidiary canceled its registration with the Financial Conduct Authority, and in the U.S., the exchange still has a long roadway ahead in its struggle with regulators. In spite of all these developments, Binance stays unblemished as the leading canine amongst centralized exchanges, with $58.11 billion in overall value locked, down from $63.8 billion on June 1, according to information from DefiLlama.” We keep building,” Binance CEO Changpeng Zhao stated in a tweet on June 28, following a chaotic and long month. Binance local supervisor Ben Rose shared information of the exchanges debanking in the nation at the Australian Blockchain Week on June 26.

Bitfinex releases P2P trading platform in Venezuela, Argentina and ColombiaDigital possession exchange Bitfinex is broadening its operations to Latin America. The crypto company has launched a peer-to-peer trading platform in Venezuela, Argentina and Colombia, permitting users in the South American nations to purchase and sell Bitcoin, Ether (ETH), Tether (USDT), Tethers euro-pegged stablecoin, Tether EURt (EURT), and Tether Gold (XAUT). In April, Bitfinexs El Salvador arm got a digital property provider license from the National Digital Asset Commission. Last month, the exchange partnered with Chile-based crypto platform OrionX to support regional education and monetary literacy programs.Crypto Biz is your weekly pulse of the business behind blockchain and crypto, provided straight to your inbox every Thursday.

Other Questions People Ask

What challenges did Binance face in June related to regulatory issues?

In June, Binance encountered significant regulatory challenges, including a lawsuit from the U.S. Securities and Exchange Commission (SEC) against the exchange and its leadership. Additionally, the Belgian monetary regulator ordered Binance to cease all crypto services, and the exchange failed to secure a license in the Netherlands. These issues were compounded by a subpoena issued to Binance's Brazil head regarding a Ponzi scheme investigation and the cancellation of its registration with the UK's Financial Conduct Authority.

How are Bitcoin miners preparing for the upcoming halving event?

Bitcoin miners are gearing up for the next halving cycle by investing in new mining equipment, as seen with Riot Platforms' recent purchase of 33,280 next-generation rigs. This investment, costing $162.9 million, is expected to enhance their self-mining capability significantly. With the halving event anticipated in 2024, miners are positioning themselves to maximize their operational efficiency and profitability during this critical period.

What expansion efforts is Bitfinex undertaking in Latin America?

Bitfinex is actively expanding its operations in Latin America by launching a peer-to-peer trading platform in Venezuela, Argentina, and Colombia. This platform allows users in these countries to buy and sell various cryptocurrencies, including Bitcoin and Tether's stablecoins. Additionally, Bitfinex's El Salvador arm has obtained a digital asset provider license, further solidifying its commitment to growth in the region.

What impact did Binance's debanking in Australia have on its customers?

Binance's sudden debanking in Australia had a significant impact on approximately 1 million customers who were cut off from the country's banking system without prior warning. The local manager, Ben Rose, revealed that this disruption followed the suspension of dollar services due to their payment provider's withdrawal of support. As a result, Binance is now seeking alternative payment solutions to restore services for its Australian users.

How did MicroStrategy's Bitcoin purchases reflect market trends in June?

MicroStrategy's purchase of 12,333 Bitcoin for $347 million in June highlights a strategic move amidst a fluctuating market environment. This acquisition increased their total holdings to 152,333 BTC, showcasing their commitment to Bitcoin even during bearish market conditions. The company's ability to finance these purchases through stock issuance indicates a proactive approach to capitalizing on market opportunities while maintaining a long-term investment strategy.