2023 In Crypto: A Look Back At The Biggest Events That Dominated Headlines

A year is a long time in crypto; 2023 had all the ingredients of a masala Bollywood potboiler. Corporate rivalry, bankruptcies, courtroom dramas, crazy product innovations, and convicted baddies going to jail. In this article, let’s get into a time machine and check out the major events in 2023.

January The year kicked off with the total market cap of cryptocurrencies surpassing $1 trillion, indicating renewed investor confidence. In stark contrast, the lending unit of Genesis, a prominent crypto company, filed for bankruptcy. Bitcoin increased to over $21,000 and increased by 7.

5 per cent to $21,299 in value. February A revolutionary development came in the form of Bitcoin Ordinals. This new concept allows for the inscription of full content directly onto satoshis, the smallest units of Bitcoin.

Unlike traditional NFTs, which are typically part of separate blockchain layers like Ethereum, Ordinals are directly embedded in Bitcoin transactions, representing a significant technological leap. googletag. cmd.

push(function() { googletag. display(“div-gpt-ad-6601185-5”); }); March March witnessed significant regulatory actions. This month also saw the closure of crypto-friendly banks like Silvergate and Signature Bank, signalling a shift in the financial sector’s approach to crypto businesses.

Importantly, the Indian government brought crypto assets under the Prevention of Money Laundering Act (PMLA), bringing crypto exchanges under overview. April The European Union introduced a landmark regulation, the Markets in Crypto-Assets (MiCA), setting a precedent for crypto regulations globally. MiCA aims to provide a harmonised regulatory framework for crypto assets, enhancing investor protection and ensuring market stability.

May Bhutan announced plans for a $500 million fund dedicated to crypto mining in the Himalayas. This move indicated the growing interest of national governments in harnessing the potential of cryptocurrencies and blockchain technology. Hong Kong also facilitated crypto trading for retail investors, although it extended only to certain tokens on verified and authorised platforms.

June June was marked by the SEC going after major crypto exchanges Binance and Coinbase. This regulatory pressure reflected the agency’s commitment to bringing crypto companies within the ambit of traditional financial regulations. Mastercard strengthened its presence in crypto by announcing the use of blockchain in financial applications.

And oh, Bitcoin hit a one-year high and soared past $31,300. July The SEC lost a case against Ripple regarding XRP. The judge ruled that while Ripple violated federal securities laws in selling XRP to institutional investors directly, it had not done so by making XRP available to retail customers through programmatic sales to exchanges.

The ruling has implications, as the SEC believes that all cryptos except Bitcoin are securities. In the same month, Sam Altman launched WorldCoin, which aims to address income inequality through its unique World ID feature. However, the scheme has attracted scrutiny from regulators in several countries, suggesting that its mission to become the world’s arbiter of digital identity could face a rocky road.

August PayPal launched its stablecoin, bolstering the integration of cryptos into mainstream payment systems. A US court ruled that the SEC was wrong to reject an application from Grayscale to list an exchange-traded fund. This ruling marked a significant step towards the acceptance of Bitcoin ETFs, paving the way for broader institutional involvement in the crypto market.

October The G20 adopted the IMF and FSB’s Synthesis Paper as a roadmap for crypto assets regulation. This move was significant as it provided a unified regulatory framework for G20 countries, aiming to standardise crypto regulations and reduce market fragmentation. It gives a roadmap for regulations for all G20 countries by 2025.

Bitcoin prices show optimistic growth towards the end of the month. November Sam Bankman-Fried, who once ran one of the world’s biggest crypto exchanges, was found guilty of fraud and money laundering at the end of a month-long trial in New York. He now faces decades in jail after the guilty verdict.

Bitcoin’s price surge, institutional investment, and possible ETF approval from the SEC take markets to new highs. Binance, the world’s largest crypto exchange, reached a settlement agreement regarding charges of sanction violations and breaches of money-transmitting regulations. The company is to pay a substantial sum of $4.

3 billion to resolve these allegations. Changpeng Zhao, commonly known as CZ, the CEO of Binance, is to pay a $50 million fine and relinquish his position as CEO. Throughout 2023, the crypto industry experienced a churn of technological innovation, market fluctuations, and regulatory changes.

The year’s events highlighted the growing resilience of the crypto industry as it moves closer to mainstream acceptance and regulatory clarity. With governments and financial institutions increasingly recognising the potential and challenges of crypto, the industry stands at the cusp of a new era of growth and integration into the global financial system. (The author is the Vice President of crypto investment platform WazirX) Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt.

Ltd. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.

Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.

.