Tether Takes Stand on Venezuelan Sanctions, Binance Faces Legal Troubles in Canada, and Bitcoin No More a Bargain, as per Fidelity
Summary:
Tether plans to freeze assets of groups using USDT to bypass sanctions on Venezuela's oil trade, according to a spokesperson. Binance faces a new class-action lawsuit in Canada for alleged violations of local securities laws, including selling crypto derivatives to retail investors without proper registration. Meanwhile, Fidelity Digital Assets maintains that Bitcoin can no longer be deemed "cheap," adjusting its medium-term outlook for the cryptocurrency from positive to neutral due to various contributing factors.
In an announcement made to cryptocurrency news outlet Cointelegraph, a representative for Tether shared their intention to immobilize the assets of any groups employing the use of its stablecoin, USDT, to elude restrictions on Venezuela. In other news, Canadian officials are bringing forth legal proceedings against Binance, stating the exchange has broken the laws of the securities. Furthermore, Bitcoin is no longer considered a bargain, as stated by analysts at Fidelity Digital Assets.
Tether, the issuer of the world's largest stablecoin, USDT, with a total market capitalization nearing $110 billion, has stated that they will immobilize the USDT of any groups utilizing them to evade Venezuelan oil sanctions. A Tether representative announced their full commitment to prohibiting payments to any groups on the OFAC's (Office of Foreign Asset Control) sanctioned entities list, of which Venezuela's national oil company, PDVSA, is a part. They further emphasized their dedication to working forthwith to immobilize the addresses of sanctioned entities. The announcement followed a statement by Reuters, reporting that the U.S. Treasury Department advised customers and distributors of PDVSA to conclude any transactions by the end of May due to Venezuela's alleged failure to enforce electoral reforms. Tether CEO Paolo Ardoino recently underscored the necessity of competition to substantiate the validity of stablecoins in front of regulators.
Cryptocurrency trading platform Binance is facing legal proceedings in Canada for infractions against the local securities laws. This class-action lawsuit has accused Binance of marketing crypto derivative products to retail investors without proper registration. The Ontario Superior Court of Justice published the motion for the class-action lawsuit against Binance on April 19. It asserts that Binance's sale of such products violates the Ontario Securities Act (OSA) and federal regulations. Christopher Lochan and Jeremy Leeder are representing the plaintiffs. Moreover, this is among the various legal actions against Binance, as they had earlier decided in June 2021 to cease operations in Ontario after receiving a warning from the OSC.
Fidelity Financial Services has indicated that Bitcoin, once thought of as a less expensive investment, no longer fits that description. They've signaled this change by revising the medium-term perspective of the cryptocurrency from favorable to neutral. As evidence, Fidelity Digital Assets pointed out several analytical metrics, including their 'Bitcoin Yardstick', which alludes to Bitcoin's trading being at “fair value.” The organization noted that the recent change in viewpoint resulted from old Bitcoin holders applying selling pressure. Also, almost all (99%) of Bitcoin addresses are currently profitable, which could spur selling activities in the future. Despite maintaining a positive short-term forecast for Bitcoin, Fidelity highlighted the lack of significant indicators typically observed during bull market peaks.
This news report does not provide any financial advice or suggestions. Any financial or trading measure carries a risk component, and readers ought to research comprehensively before making a decision.
Geraint Price, Sam Bourgi, and Felix Ng contributed additional reporting to this article.
Published At
4/23/2024 9:48:57 PM
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