• Bank of Canada (BoC) reported a decline in the ownership of Bitcoin and cryptocurrencies in the country in 2022 due to unfavorable market conditions and regulations.
• Coinbase chief legal officer Paul Grewal has revealed the exchange is planning to file an order seeking dismissal of a securities-related lawsuit against it.
• A couple charged with laundering billions of dollars worth of Bitcoin has reportedly admitted to being behind the 2016 Bitfinex hack.
Decline in Canadian Crypto Ownership
The Bank of Canada (BoC) recently reported a decrease in cryptocurrency ownership amongst Canadians in 2022, as both regulatory pressure and market conditions impacted investor confidence. According to BoC’s annual Bitcoin Omnibus Survey, Bitcoin ownership dropped from 11% to 9%, whilst altcoin usage also decreased. Furthermore, over one third of the 4,996 surveyed indicated that they use cryptocurrencies as an investment tool.
Coinbase vs SEC Lawsuit
Coinbase Chief Legal Officer Paul Grewal recently announced plans for Coinbase to file an order seeking dismissal of a securities-related lawsuit by the Securities and Exchange Commission on Aug. 4th 2023. The exchange is confident that it will win its legal battle against the SEC and prove its innocence regarding any alleged wrongdoing.
Bitfinex Hack Admitted
A couple charged with laundering billions worth of Bitcoin from the 2016 Bitfinex hack have reportedly admitted their guilt for their involvement in this case. This follows heightened scrutiny by law enforcement agencies around the world towards cryptocurrency based money laundering activities.
Why are Regulations Tight?
With increasing adoption rates for cryptocurrency across all markets, governments around the world are implementing stricter regulations on trading activities and asset holdings within their borders so as to prevent illegal activities such as money laundering or fraud taking place through these digital assets.
Overall, crypto adoption is still growing among Canadians despite tighter regulation from government agencies, however investors are becoming more wary when investing large sums into digital assets due to increased scrutiny by law enforcement agencies worldwide which could lead to heavy penalties if found guilty for illicit activity through crypto investments or holdings