Crypto Flipsider News – Fed Raises Interest Rates, Stocks and Crypto Market Rally, Binance Receives Regulatory Approval from France, California to Promote Blockchain Businesses, South Korea to Reverse ICO Ban, Bitcoin Investor Sues Coinbase and Kraken

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Fed Makes Biggest Interest Rate Hike in Two Decades, Bitcoin and Crypto Join the Stock Market Uptrend

Binance Gets Regulatory Approval in France, Paving the Way for Its Venture into Europe

Gov. Gavin Newsom of California Signs Executive Order to Promote Blockchain in the State

South Korean President-Elect, Yoon Suk-yeol, to Reverse ICO Ban

Dr. Craig Wright Sues Coinbase and Kraken for Misrepresenting Bitcoin

Fed Makes Biggest Interest Rate Hike in Two Decades, Bitcoin and Crypto Join the Stock Market Uptrend

Following its latest meeting, the Federal Reserve has increased its benchmark interest rate by half a percentage point, the largest increase since 2000. The interest rate hike is in response to the escalating inflation rate in the United States.

After the announcement of the recent rate hike on Wednesday, the stock market jumped sharply, with the Dow Jones Industrial Average gaining 932.27 points, or 2.81%. The Nasdaq gained 3.2%, and the S&P 500 rose by 2.99%.

Bitcoin, Ethereum, and the broader crypto market have tapped into the rally, which began with the stock market. Bitcoin gained 3% to hit $39.9k, while Ethereum gained over 4% to hit a weekly high of $2.956.

The 24-hour price chart of Bitcoin (BTC). Source: Tradingview

The 24-hour price chart of Ethereum (ETH). Source: Tradingview

Cardano’s ADA emerged as the top gainer with a 13% increase. BNB, XRP, Solana, and Luna all recorded at least 5% gains. The rally saw the crypto market gain 6% on Wednesday.

The global crypto market cap over the last 24 hours. Source: Tradingview

Flipsider:

As the price of gold continues to rise, analysts have warned that the price of Bitcoin could drop down to $30k

Why You Should Care

Bitcoin and the crypto market rallying together confirms that crypto and the stock markets are moving in tandem.

Binance Gets Regulatory Approval in France, Paving the Way for Its Venture into Europe

Binance Holdings Ltd., the world’s largest cryptocurrency exchange in terms of trading volume, has gotten regulatory approval from the French government. France has officially become the first European country that has given such approval.

The approval was granted by Paris-based markets and banking authorities and was obtained months after the company faced various regulatory setbacks on the continent. The approval will help support Binance expansion aims in Europe.

Binance founder and CEO Changpeng Zhao (CZ) announced that “effective regulation is important to the widespread acceptance of cryptocurrency.” Binance can now expand its digital assets services to France with this approval.

Binance has faced various oppositions from European regulators, but it has been relentless in proving its commitment to practice compliance and enhance the region’s blockchain ecosystem.

Flipsider:

As the crypto regulations keep becoming stricter in Singapore, Binance is reportedly still looking for a new base.

Why You Should Care

This approval from France is a big step for Binance as it looks to become the first globally regulated cryptocurrency exchange.

Gov. Gavin Newsom of California Signs Executive Order to Promote Blockchain in the State

Governor Gavin Newsom of California has signed an Executive Order outlining strategies for regulatory and consumer protection to promote the development of blockchain technologies and digital assets within the state.

This makes California the first state to start making a comprehensive framework toward Web3 technology. The Executive Order’s goals are to create a consistent business atmosphere conducive to blockchain operation.

It also aims to enhance wise crypto development and ensure consumer protection. Finally, it will require the state to inquire about how blockchain technology can be used in state and public institutions.

This new directive follows President Joe Biden’s administration’s proposal released in March to examine the risks and benefits of cryptocurrencies.

Flipsider:

Although Newsom referred to California as “a global hub of innovation,” he regrets that the government lags behind technological advancement.

Why You Should Care

Approximately one-quarter of American blockchain businesses are based in California, and the new order will keep them in the state through responsible regulations.

South Korean President-Elect, Yoon Suk-yeol, to Reverse ICO Ban

The president-elect of South Korea, Yoon Suk-yeol, has indicated he is ready to revert the ban on initial coin offerings (ICO), which dates back to 2017.

Early indications show that the South Korean president-elect Yoon Suk-yeol made good on some of the crypto-related campaign promises that helped him win power earlier this year.

Suk-yeol, who starts his term on May 10, has announced the approval of initial coin offerings (ICOs). Yoon’s Presidential Transition Committee has placed the creation of a Digital Asset Framework Act (literal translation) on a shortlist of 110 action points that his government will tackle in the weeks and months after he becomes president.

More importantly for big businesses, however, the committee made mention of enabling “domestic ICOs,” albeit with “issuance methods” that provide “safeguards for investors.”

Flipsider:

The New York Assembly has approved a bill to ban Proof-of-Work Crypto Mining for Two Years.

Why You Should Care

The proposed Digital Asset Framework Act will include the creation of suitable “conditions” for investors who wish to invest in “digital assets” with “confidence.”

Dr. Craig Wright Sues Coinbase and Kraken for Misrepresenting Bitcoin

Dr. Craig Wright, an Australian computer scientist who claims to be Bitcoin’s creator, has sued leading exchanges Coinbase and Kraken for “misrepresenting” BTC as Bitcoin Core.

According to Dr. Wright, the exchanges are “passing off” projects that don’t conform to the Bitcoin system described by him in the white paper, damaging his interest in Bitcoin to the tune of hundreds of billions of pounds.

The misrepresentation, according to Wright, has led to confusion among traders regarding the authenticity of assets they have bought and sold on Coinbase and Kraken.

On Friday, ONTIER LLP, on behalf of Dr. Wright, Wright International Investments Limited (WII) and Wright International Investments UK limited (WIIUK), filed the claim form with the English High Court, formally kicking off the action.