Morning Post - November 11

headlines

▌ DOJ and Regulators Contact Binance About FTX Negotiations

U.S. authorities, including the Justice Department, have contacted cryptocurrency exchange Binance to request information about its recent interactions with FTX in talks between the two companies about a potential rescue, according to a person familiar with the matter. Binance has received letters from U.S. financial regulators, as well as European regulators, asking for information about the inner workings of FTX that Binance executives learned this week, the person said.Binance’s due diligence team soon discovered that there was an ambiguous conflict in FTX’s relationship with trading firm Alameda Research. Alameda Research was also started by FTX CEO Sam Bankman-Fried. FTX client funds appear to have been used for commercial purposes, the person said.

policy

▌European Regulators: Encryption Firms Need “Urgent Regulatory Attention”

Europe's financial stability watchdog called on Thursday for urgent action to regulate cryptocurrency groups. The market is currently in turmoil over the apparent collapse of major exchange FTX.The message from the European chapter of the Financial Stability Board (FSB) is the latest signal that market turmoil will mean sweeping new rules for the sector, given its growing influence over traditional financial markets. The panel said it would be modeled on a recent FSB regulatory plan that could force the breakup of large conglomerates and centralized governance of stablecoins.

Blockchain application

▌Aptos and Google Cloud cooperate to launch an accelerator program

The public chain project Aptos announced that it has reached a cooperation with Google Cloud, and Google Cloud will provide support for some of its verification nodes and other services. The Aptos blockchain will also be indexed and joined Google Cloud's BigQuery service.Additionally, Google and the Aptos Foundation will launch an accelerator program and co-host a hackathon next year.

cryptocurrency

▌FTX US Leaves Washington D.C. Cryptocurrency Advocacy Group

FTX US has left Crypto Advocacy, a Washington, D.C.-based trade association that lobbying on behalf of the crypto industry. Prior to Thursday, FTX US was a member organization of the group, along with other major players in the cryptocurrency industry including cryptocurrency exchanges Coinbase and Gemeni and venture capital firm Andreesen Horowitz. Before news of FTX's bankruptcy broke earlier this week, the company's CEO, Sam Bankman-Fried, was actively lobbying lawmakers in Washington.

▌S&P Global Cryptocurrency Report: Pegged currencies are more stable than stablecoins

A report published by S&P Global concluded that stablecoins are less stable than the fiat currencies they are pegged to. S&P Global compared three U.S. dollar-pegged stablecoins, Tether, USDC and DAI, with the Hong Kong dollar (HKD), which is also a U.S. dollar-pegged fiat currency. The volatility of the Hong Kong dollar has been significantly reduced.On the other hand, cryptocurrencies are much more volatile than stocks. The volatility of Bitcoin, Ethereum, Binance Coin and Ripple has all remained above 60% for the past 30 months.

▌Tether started to freeze FTX’s USDT at the request of law enforcement agencies

Tether began freezing FTX’s USDT at the request of law enforcement during the investigation. According to the data on the chain, an unknown address with a balance of 46,360,701 USDT was frozen, and then the address was confirmed to belong to FTX.