Explore Bitcoin's rollercoaster ride due to false ETF approval, California's new 'BitLicense' bill, Binance's $450M token burn, and Australia's digital-asset regulation.
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Bitcoin Surges to $30K on False iShares Spot ETF News

Bitcoin Surges to $30K on False iShares Spot ETF News

Explore Bitcoin's rollercoaster ride due to false ETF approval, California's new 'BitLicense' bill, Binance's $450M token burn, and Australia's digital-asset regulation.

Date:
Oct 17, 2023
| Issue
#
127

Welcome to another edition of Datawallet Daily. Here are the key stories that are shaping the crypto landscape over the last 24 hours:

Before diving into the Bitcoin ETF fake news, and the latest stories of the day, let's take a quick look at market price action.

Bitcoin surges to $30K on false iShares spot ETF news

In a rollercoaster event, Bitcoin's price soared from $27,900 to $30,000 following a bogus announcement about the approval of a spot ETF. The fake news, initially shared on social app X, triggered nearly $100 million in liquidations before the post was deleted 30 minutes later. As skepticism set in, Bitcoin's value retreated to $28,000. 

Data from CoinGlass reveals that the market saw $81 million in short positions and $31 million in long positions liquidated during this turbulence. Financial giant BlackRock and multiple sources confirmed that the ETF approval news was indeed false. The SEC has yet to approve any spot Bitcoin ETFs, leaving the market on edge.

The incident has prompted an internal investigation by Cointelegraph who disseminated the inaccurate information.

California 'BitLicense’ bill signed

California Governor Gavin Newsom has officially approved a crypto licensing bill, which is scheduled to come into effect in July 2025. This bill, known as the Digital Financial Assets Law, is seen as California's response to New York's "BitLicense." Despite facing opposition from the industry, the law was successfully passed by the state's Assembly in September 2022. Under this legislation, the Department of Financial Protection and Innovation (DFPI) in California will be responsible for developing a regulatory framework for the crypto industry. The framework will include a licensing system and grant the DFPI the power to enforce and establish rules within the sector.

BNB reduces supply by burning $450 million worth of tokens

On Monday, cryptocurrency exchange Binance announced that it has conducted a planned token burn, resulting in the destruction of BNB tokens worth more than $450 million. Binance successfully burned just over 2.1 million BNB tokens as part of this process. Token burning involves permanently removing tokens from circulation by transferring them to an address that is not under anyone's control. This strategic move reduces the supply of tokens like BNB, making them more valuable for holders. By decreasing the overall supply, Binance aims to provide increased value and benefit to its users.

Australia releases proposal to regulate digital-asset services platforms

Australia has recently unveiled a plan to regulate digital-asset service platforms in order to enhance transparency and safeguard customers. In a consultation paper, the Australian Treasury stated that the rise in failures and vulnerabilities of these platforms has necessitated regulation to provide consumer protection.

To achieve this, the government intends to utilize existing financial services laws in Australia. The proposal entails requiring Australian crypto platforms that exceed a specific asset threshold, such as AU$1,500 ($948) for individuals or AU$5 million ($3.2 million) in total, to obtain an Australian Financial Services Licence. This move aims to ensure accountability and maintain the integrity of the digital-asset industry.

Other breaking news

Wrapping up

Wrapping up today's issue, we've seen Bitcoin's volatile surge and dip due to false ETF approval news, California's landmark 'BitLicense' bill, Binance's strategic burning of $450 million in BNB tokens, and Australia's latest proposal to regulate digital-asset platforms. It's been a day of high stakes and shifting sands in the crypto world, underscoring the need to verify information and avoid use of leverage!