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Liechtenstein Accepts Bitcoin as Estonia Kicks Our Crypto

Plus the US crypto community is rallying against a proposed custody rule

Author

Nathaniel Whittemore
May 09, 2023

The Breakdown First Five - Tuesday May 9, 2023

The Estonian Exodus - [PS sorry Estonian friends, Midjourney still has some trouble with precise flags]

5. Bittrex bankrupt

The US arm of Bittrex has declared bankruptcy under the shadow of last month’s SEC enforcement. The once-home of the digital degens says that it’s fully solvent and will return all customer assets in due course. Bittrex Global will continue to operate as normal. Is this what US regulation looks like?

4. Custody Rule Comments

The Crypto industry came out strongly against the unworkable SEC Crypto custody rule. The Blockchain Association, A16Z and Coinbase have all filed public comments, saying the rule would function as a de-facto ban on investment advisers handling Crypto. Comments are now closed, the rule will come up for an SEC vote in due course.

3. “The Market Made Me Do It!” Deflecting SBF trying for dismissal

SBF has lodged documents asking the Court to dismiss most of his criminal charges. His arguments include the doubling up of fraud charges and his Bahamas extradition agreement. The key argument is that the fraud charges are doubled up which could lead to prejudice. Three charges of conspiracy to commit fraud and money laundering went unquestioned. Taking every opportunity to deflect blame, SBF called the charges “a classic rush to judgment” and blamed the “broader market collapse” for FTX’s failure.

2. Bitcoinstein

European micronation Liechtenstein is courting Crypto adoption by accepting Bitcoin in payment for government services. Prime Minister Daniel Risch said the country wouldn’t be hodling, with payments likely to be immediately converted into Swiss Francs. Although he said that while Bitcoin is currently too risky, “this assessment can change”.

1. Estonian Exodus

Tech-friendly Estonia has driven out 80% of its Crypto industry thanks to a new law that requires “legitimate ties” to the nation as well as massive capital reserves. Almost 200 licenses were voluntarily withdrawn and 189 were canceled as the law came into effect. With the EU’s MiCA regulation coming next year this could be the leading edge of European jurisdictions cleaning out questionable firms.

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Thanks for reading -NLW