Crypto News Round-up (October 23rd - October 27th 2023)

In this week’s crypto news round-up:

• Bitcoin Hits $35,000, Reaching 16-Month High Amid ETF Hype
• BlackRock Fined $2.5M by SEC for Misleading Investment Information
• Meta’s Reality Labs Division Reports Unexpected $3.7B Loss in Q3
• Taiwan Advances Crypto Regulation as Draft Act Passes First Reading in Parliament
• Ryder Ripps Must Pay Yuga Labs $1.5 Million for Bored Ape Trademark Infringement
• New UK Bill Strengthens Authorities' Ability to Seize Illicit Crypto

Bitcoin Hits $35,000, Reaching 16-Month High Amid ETF Hype

On October 25, 2023, Bitcoin experienced a surge, reaching a price of $35,000, a level not seen since May 2022. This significant rally had a domino effect on the cryptocurrency market, propelling other digital assets like Ethereum, XRP, Solana, Cardano, and Dogecoin to post substantial double-digit gains during the same timeframe.

Among the top ten cryptocurrencies by market capitalization, Solana outperformed, witnessing an impressive 41% increase in value within just one week.

The driving force behind this recent surge is renewed optimism surrounding the approval of a Bitcoin Exchange-Traded Fund (ETF). A Bitcoin ETF would provide a convenient way for large institutional investors to enter the cryptocurrency market without needing in-depth technical knowledge, similar to buying traditional stocks.

Notably, heavyweight financial firms like BlackRock, Fidelity, Ark Invest, and Invesco are actively vying for approval from the U.S. Securities and Exchange Commission (SEC).

BlackRock Fined $2.5M by SEC for Misleading Investment Information

The U.S. Securities and Exchange Commission (SEC) has announced that it is charging BlackRock, one of the world's largest investment management firms, for providing misleading information to investors concerning its investments in the entertainment sector.

As part of a settlement agreement, BlackRock has agreed to pay a fine of $2.5 million to resolve the charges.

Meta’s Reality Labs Division Reports Unexpected $3.7B Loss in Q3

Meta Platforms Inc., the company behind Facebook, continues to pursue the ambitious concept of the metaverse, championed by CEO Mark Zuckerberg.

In its recently released third-quarter earnings report, Meta disclosed that its Reality Labs division, responsible for developing metaverse-related technologies, recorded an operating loss of a substantial $3.7 billion.

Despite these substantial financial setbacks, Meta remains committed to realizing the metaverse concept. One of the latest manifestations of this commitment is the introduction of the Quest 3 VR headset, which was unveiled in September. Marketed as a technologically superior successor to the Quest 2, the Quest 3 incorporates an enhanced "passthrough" feature to deliver a more immersive mixed-reality experience.

Meta is positioning its Quest line of headsets as a cost-effective option for consumers exploring virtual reality (VR), especially when compared to Apple's upcoming Vision Pro mixed reality headset, expected to debut at a price of $3,499 next year.

Taiwan Advances Crypto Regulation as Draft Act Passes First Reading in Parliament

The Legislative Yuan in Taiwan has passed the first reading of a proposed crypto law aimed at regulating the cryptocurrency asset industry. This proposed law, co-authored by Yung-Chang Chiang and 16 other lawmakers, would mandate that all cryptocurrency platforms operating in Taiwan obtain a permit. Non-compliance could result in regulatory orders to cease operations.

Previously, Taiwan's Financial Supervisory Commission (FSC) had released guidelines for the cryptocurrency sector to establish self-supervisory rules, but these measures lacked legal enforceability. The goal now is to create a regulatory framework that provides oversight and legal enforceability for cryptocurrency businesses, emphasizing the necessity of such a law to ensure proper regulation in the cryptocurrency sector.

This legislative effort gained momentum when Yung-Chang Chiang, a member of the Legislative Yuan of Taiwan, expressed the intention to have the first draft of this law ready for parliament's review by the end of November 2023 or even sooner.

The new special law would grant regulatory authorities the power to impose administrative penalties on operators who violate these self-regulation rules, addressing the need for legal enforceability in the sector, which was lacking in previous self-regulation guidelines.

Ryder Ripps Must Pay Yuga Labs $1.5 Million for Bored Ape Trademark Infringement

A U.S. District Judge in California issued a judgment in favour of Yuga Labs, creators of the popular Bored Ape Yacht Club, against Ryder Ripps and Jeremy Cahen.

The court awarded Yuga Labs over $1.5 million in damages, the amount the court determined Ripps and Cahen made in profits from the sale of Ryder Ripps' Bored Ape Yacht Club, which the court found infringed on Yuga Labs' trademark.

In their defence, the defendants argued that their use of Yuga's Bored Ape Yacht Club trademarks was not infringement but rather "satire" and "parody."

In the ruling, Judge John Walter granted Yuga Labs' request that the defendants pay $200,000 in damages for the cybersquatting violations, $100,000 for each domain, and issued a permanent injunction against the defendants.

New UK Bill Strengthens Authorities' Ability to Seize Illicit Crypto

UK lawmakers approved the Economic Crime and Corporate Transparency Bill, a new piece of legislation aimed at addressing a wide range of criminal activities, including drug trafficking, cybercrime, and terrorism.

This bill, which has been under discussion since its introduction in September last year and underwent several amendments, also enhances law enforcement's ability to seize and freeze illicit cryptocurrency assets.

The legislators expect that by expanding the toolkit available to local law enforcement agencies, the UK will see quicker and more substantial seizures of cryptocurrency linked to criminal activities.

One such measure is the expansion of law enforcement's powers to seize digital assets without requiring a prior conviction, allowing authorities to act swiftly in cases where there is strong evidence connecting cryptocurrency to criminal activities.

Currently, cryptocurrency assets linked to illegal activities can be frozen but cannot be confiscated in criminal cases without an individual being arrested and convicted.

Disclaimer:  The information provided in this crypto news round-up is for informational purposes only and should not be considered financial or investment advice. Obiex will not be held liable for your investment decisions.