According to recent reports by Kaiko, some of the world’s largest cryptocurrency exchanges have seen a significant drop in market depth due to disruptions in USD payment channels and crypto bank failures.

Specifically, Gemini’s market depth fell by 74% in March, Coinbase by 50%, and BinanceUS by 29%. However, Binance Global only saw a drop of 13%. This lack of liquidity could lead to more price volatility and unpredictable swings in both directions.

The crypto market liquidity in March was already down 52% before the news hit that depositors in SVB would be made whole. This only added to the volatility of prices in the immediate aftermath. However, the market depth increased by over $125m overnight, or 30%, as price effects played a role in restoring USD liquidity to exchanges.

Interestingly, a closer look at liquidity at the pair-level shows that a large portion of the increase actually came from renewed liquidity for USDC in particular. As Circle gained access to the $3.3bn they had in SVB as soon as Monday morning, USDC moved closer to its peg and market makers began offering liquidity for USDC pairs again.

Using USDC as the base asset, there was a huge spike of over $100m in extra liquidity offered overnight, with over $60m belonging to the relisted USDC-USDT pair on Binance, while the USDC-USD pair on Kraken saw an injection of $20m in liquidity as well.

The lack of liquidity and the recent disruptions in USD payment channels and crypto bank failures have highlighted the need for greater stability and security in the cryptocurrency market.

In conclusion, the drop in market depth on some of the major cryptocurrency exchanges is a cause for concern, as it can lead to increased price volatility and longer transaction times. It is crucial for exchanges to take steps to address these issues and ensure that they have sufficient liquidity to meet the needs of their customers.

Read more: https://azcoinnews.com/gemini-coinbase-and-binance-us-experience-major-decrease-in-market-depth-in-march-2023.html

#Gemini #Coinbase #Binance #azcoinnews

The regulatory landscape for cryptocurrencies is undergoing a potential transformation as global regulators show increasing acceptance towards the crypto industry. France's regulatory body, the AMF, is taking a supportive stance on decentralized finance #DeFi and is advocating for global regulation to safeguard investors and foster innovation.

Recognizing the dynamic nature of the DeFi sector, the AMF emphasizes the importance of striking a balance between regulation and innovation. While acknowledging the benefits brought by technological advancements, they also stress the need for investor protection and risk management.

In contrast to the tightening regulations in the United States, some overseas jurisdictions are embracing the opportunities presented by cryptocurrencies. Hong Kong, as a special administrative region of China, is actively creating an environment conducive to #crypto development, attracting businesses to establish their presence in the region.

The Asia-Pacific region, including countries like Japan, holds significant potential for crypto growth. #Gemini , a leading cryptocurrency exchange, is capitalizing on this market's expansion by expanding its operations and establishing a stronger foothold in the region.

To ensure they don't fall behind in #Web3 development, Hong Kong has implemented legislation aimed at attracting new players and supporting existing digital asset firms. By capitalizing on the increased activity in Asia and the Gulf region, Hong Kong aims to remain at the forefront of cryptocurrency innovation.

In response to BlackRock's filing for a spot Bitcoin exchange-traded fund #ETF numerous investment managers, including WisdomTree and Invesco, have followed suit and submitted their own applications for spot Bitcoin ETFs. WisdomTree, based in New York, has made its third attempt to secure approval for a spot Bitcoin ETF, having previously faced rejections from the #SEC .

Overall, these developments indicate a shifting regulatory landscape where global regulators are increasingly embracing cryptocurrencies, recognizing the importance of investor protection, and striving to foster innovation in the industry.

Winklevoss Threatens Legal Action Against DCG

In an open letter, #Gemini CEO Cameron Winklevoss accused #DigitalCurrency Group (DCG) and its CEO, Barry Silbert, of delaying the resolution for Genesis, impacting 232,000 Earn users. Winklevoss claimed #DCG engaged in "fraudulent behavior" and "abused" the mediation process. He gave Silbert an ultimatum: accept Gemini’s final $1.47 billion offer by July 6 or face a lawsuit on July 7.

Source - https://www.coingabbar.com/en/crypto-shorts-news/winklevoss-threatens-legal-action-against-dcg