Web3🌑Friday Roundup: Legal Battles, Regulatory Scrutiny, and Market Shifts!

Happy Friday, crypto enthusiasts! As we wrap up another week in the fast-paced world of Web3, we have some significant updates that could shape the landscape of digital assets. From regulatory actions targeting major players like Nvidia and BCB Group to the International Monetary Fund's (IMF) recommendations for El Salvador's Bitcoin strategy, the news is buzzing. Plus, we’ll touch on Binance’s declining market share and what that means for the industry. Let’s dive into today’s Web3 Buzz and explore the latest developments that are making waves in the crypto sphere!

1. SEC and DOJ support class action against Nvidia for allegedly concealing crypto revenue.

The SEC and DOJ are backing a class action lawsuit against Nvidia, claiming the company misled investors about the impact of crypto mining on its 2017-2018 revenues. The lawsuit argues Nvidia understated the influence of crypto miners and falsely attributed growth to gaming demand. Insider accounts and economic analysis show Nvidia’s leadership was aware of the crypto-driven sales but downplayed it publicly. After being initially dismissed, the case was revived by the Ninth Circuit Court, and now U.S. officials argue it should proceed, emphasizing the need for transparency in reporting risks related to emerging markets like cryptocurrency.

SEC, DOJ Back Class Action Against Nvidia Over Alleged Hidden Crypto Revenue - Decrypt

The DOJ and SEC have filed an amicus brief in a class action lawsuit alleging Nvidia downplayed the demand from crypto miners on its revenue.

DecryptVismaya V

2. BCB Group, a crypto payments firm, faces an FCA investigation.

BCB Group, a key payments provider for cryptocurrency firms, was the subject of an investigation by the U.K.’s Financial Conduct Authority (FCA), receiving a s166 notice late last year. The inquiry has since concluded positively, and BCB is now in discussions with the regulator to expand its license. The company’s CEO, Oliver Tonkin, emphasized BCB’s commitment to compliance and maintaining strong relationships with regulators. As a crucial player in the digital assets ecosystem, BCB continues to support major crypto exchanges like Bitstamp and Kraken. The closure of the inquiry marks a positive step for BCB’s ongoing growth and operations.

Crypto Payments Firm BCB Group Was the Subject of an FCA Investigation: Sources

The U.K. financial services regulator issued the payments provider a s166 notice late last year. The inquiry is now closed.

CoinDeskWill Canny

3. IMF advises El Salvador to limit its Bitcoin experiment.

The International Monetary Fund (IMF) has once again urged El Salvador to limit its public sector's exposure to Bitcoin, citing potential risks to financial stability and transparency. El Salvador adopted Bitcoin as legal tender in 2021, making it the first country to do so. While the IMF acknowledges that many of the risks have not yet materialized, it continues to stress the need for tighter regulation and oversight of the cryptocurrency. Despite President Nayib Bukele’s optimism, the IMF remains concerned about Bitcoin’s impact on the country's financial system, urging further discussions and measures to mitigate potential risks.

IMF Tells El Salvador To Cut Back on Bitcoin — But Is the Strategy Fizzling Out Anyway?

IMF recommended critical changes to El Salvador’s Bitcoin strategy, including solid regulatory oversight and reduced public exposure.

CCN.comPrashant Jha

4. Binance’s market share hits four-year low

In September 2024, Binance saw a sharp decline in both spot and derivatives trading volumes, its lowest since December 2023. Derivatives trading dropped 21% to $1.25 trillion, and spot trading fell 22.9% to $344 billion. This reduced Binance’s market share to 27% in spot trading and 40.7% in derivatives, marking its lowest point in years. The decline is largely attributed to mounting regulatory challenges, including lawsuits from the U.S. SEC. In contrast, Crypto.com experienced significant growth, with a 40% rise in spot trading and a 42% increase in derivatives, making it the fourth largest exchange globally.

Binance’s market share hits four-year low

In September 2024, Binance saw a significant drop in trading volume. In a report by CCData, the platform has reported the least trading volumes in both the derivatives and the spot since December 2023. The report revealed that Binance’s derivatives trading volume declined by 21% to $1.25 trillion in September. According to the report, this […]

InsightsCryptopolitan

As we close out this week’s Web3 Buzz, it's clear that the landscape of digital assets is continually evolving. The scrutiny from regulators, such as the SEC and IMF, underscores the need for transparency and responsible practices within the industry. Meanwhile, the challenges faced by Binance highlight the competitive and dynamic nature of the crypto market. Staying informed about these developments is crucial for anyone invested in or curious about Web3. We’ll continue to monitor these stories and their implications for the future of cryptocurrency.

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