RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Tuesday, falling by 1.77 percent to $20,811.95 as of 9:15 a.m. Riyadh time.
Ethereum, the second most traded cryptocurrency, was priced at $1,192.89 falling by 1.73 percent, according to data from Coindesk.
French markets regulator faces backlash after approving Binance
The French regulator’s decision to approve Binance last month has received criticism, with one European lawmaker describing the decision as “incomprehensible,” according to the Financial Times.
French MEP and member of the European parliament’s Committee on Economic and Monetary Affairs Aurore Lalucq has asked the Autorité des Marchés Financiers to revisit its May ruling, which she said gave Binance a “guarantee of respectability.”
The Paris-based regulator’s decision to register a Binance subsidiary as a digital assets service provider in May raised concerns in her remarks.
Binance fought for months to court French authorities, including President Emmanuel Macron, who met with Binance CEO Changpeng Zhao in November 2021.
In June last year, the UK’s Financial Conduct Authority warned that the exchange was “not capable of effectively-being supervised” and its “complex and high-risk financial products” presented “a significant risk to consumers,” the FT added.
Binance has also been criticized by regulators in Singapore, Japan, Italy, and the Netherlands for providing unregulated services in their markets.
Three Arrows Capital defaults on a $670 million loan
Crypto hedge fund Three Arrows Capital defaulted on a $670 million loan after another sign of stress in the industry emerged on Monday. Crypto broker Voyager Digital announced that it had served a default notice on hedge fund 3AC for failing to make required payments, according to Reuters.
The loan was for 15,250 bitcoin, about $324 million, and $350 million of USD Coin, a stable coin, Voyager said.
It has stated that it intends to pursue recovery from 3AC and that it is currently in discussions with its legal advisers regarding potential legal remedies.
In recent months, Singapore-based 3AC has been one of the prominent crypto companies to run into difficulties. The Wall Street Journal reported last week that 3AC is exploring options including selling assets and getting bailed out by another firm.
(With inputs from Reuters)