Ethereum’s Shapella upgrade has boosted interest from institutional investors in staking the cryptocurrency, with top Ether (ETH) staking services observing a threefold rise in inflows this April compared to the previous month.

The regulatory environment for cryptocurrency firms in the United States is growing increasingly uncertain, with US-based crypto exchange Gemini having revealed plans to launch an offshore derivatives platform.

After the European Parliament passed the world’s first legislative framework intended to govern the burgeoning cryptocurrency sector, the Markets in Crypto Act (MiCA), Ukrainian authorities have declared their intention to adopt the legislative package in their own country.

Top stories in the Crypto Roundup today:

• Ethereum’s Shapella Upgrade Boosts Institutional Staking Interest
• Crypto Exchange Gemini to Launch Offshore Derivatives Platform
• Ukraine to Embrace EU’s MiCA Cryptocurrency Regulation
• Transparency is Increasing Across the Centralized Exchange Industry

Ethereum’s Shapella Upgrade Boosts Institutional Staking Interest

Ethereum’s Shapella upgrade has boosted interest from institutional investors in staking the cryptocurrency, with top Ether (ETH) staking services observing a threefold rise in inflows this April compared to the previous month.

According to Michiel Milanovic, an analyst at Ethereum blockchain developer firm ConsenSys, the majority of these inflows occurred after the highly-anticipated upgrade went live on April 12.

The upgrade unlocked approximately 18 million tokens valued at $35 billion, which had been previously held in staking contracts. Contrary to concerns that this move might result in substantial selling pressure and a price crash, ETH's value surged to $2,100, an 11-month high, before falling below $2,000 amid a wider market downturn.

Shapella has also mitigated liquidity risks associated with staking, encouraging previously hesitant investors to participate. A February survey by institutional-grade staking service provider Kiln found that 68% of respondents planned to begin staking or increase their staked amount after the Shanghai upgrade.

Crypto Exchange Gemini to Launch Offshore Derivatives Platform

The regulatory environment for cryptocurrency firms in the United States is growing increasingly uncertain, with US-based crypto exchange Gemini having revealed plans to launch an offshore derivatives platform.

The new offshore division, called Gemini Foundation, will extend its services to users in countries such as Singapore, Hong Kong, India, Argentina, Brazil, and South Africa, among others, but will not cater to US customers.

Gemini Foundation's inaugural derivatives contract will be a Bitcoin perpetual contract denominated in Gemini Dollar (GUSD), with an ETH/GUSD perpetual contract to follow soon after. Eligible clients will have the ability to trade both spot and derivatives products on the exchange.

It will also offer users the option to exchange US dollars and USDC for Gemini’s GUSD at a 1:1 ratio. Fees, profits, and losses will be processed in Gemini’s GUSD. The move comes days after Gemini revealed plans to establish an engineering hub in India.

Ukraine to Embrace EU’s MiCA Cryptocurrency Regulation

After the European Parliament passed the world’s first legislative framework intended to govern the burgeoning cryptocurrency sector, the Markets in Crypto Act (MiCA), Ukrainian authorities have declared their intention to adopt the legislative package in their own country.

Yaroslav Zheleznyak, deputy chairman of Ukraine's Tax Committee, announced on his Telegram channel that Ukrainian regulators, including the National Commission on Securities and the Stock Market (NKCPFR), are working on implementing certain provisions of MiCA to legalize crypto assets in Ukraine.

The comprehensive MiCA legislation imposes a wide array of stipulations on cryptocurrency platforms, token issuers, and traders, emphasizing the importance of transparency, disclosure, authorization, and transaction supervision, according to a statement released by the EU Parliament.

Under MiCA, platforms are mandated to inform consumers about potential risks linked to their services, and the issuance of new tokens will be subject to regulatory oversight, while stablecoins must maintain sufficient reserves to fulfill redemption requests in case of large-scale withdrawals.

Transparency is Increasing Across the Centralized Exchange Industry

In the wake of FTX's downfall, a notable development in the digital asset exchange industry is the adoption of Proof of Reserves to address increasing apprehensions among market players.

As a result, 20% of exchanges have embraced Proof of Reserves or a similar approach, and 13% have undergone audits or integrated Proof of Liabilities.

Dig deeper into the cryptocurrency exchange realm through CCData’s latest Exchange Benchmark.

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.