Ethereum’s developers are set to launch a new testnet called “Zhejiang,” allowing users to start testing Ethereum Improvement Proposal (EIP) 4895, which enables staked ether withdrawals, which will be included in the network’s next large upgrade, the Shanghai hard fork.

The UK Treasury released a consultation paper outlining plans to regulate cryptocurrency trading platforms and lenders. The paper is open for comment until April 30, and aims to give “confidence and clarity to consumers and businesses alike.”

According to a court filing by Kirkland & Ellis LLP on behalf of Celsius Network, some users of the bankrupt crypto lender's custody program will be able to retrieve 94% of their eligible assets.

 Top stories in the Crypto Roundup today:

• Ethereum Developers to Trial New Staking Withdrawal Testnet
• UK Treasury Plans to Regulate Crypto Exchanges and Lenders
• Bankrupt Crypto Lender Celsius Says Some Users Can Withdraw Assets
• Stablecoins Market Share on Different Exchanges

Ethereum Developers to Trial New Staking Withdrawal Testnet

Ethereum’s developers are set to launch a new testnet called “Zhejiang,” allowing users to start testing Ethereum Improvement Proposal (EIP) 4895, which enables staked ether withdrawals, which will be included in the network’s next large upgrade, the Shanghai hard fork.

Testnets are duplicates of the main blockchain that allow developers to test upgrades and applications in a live environment without risking the main blockchain itself. The new testnet will provide the staked ether withdrawals on February 7, and will launch at 15:00 UTC today, February 1.

Before being able to withdraw staked ether, testnet users will be able to deposit ETH to validators, so that it can be withdrawn next week. These are testnet tokens with no real value.

The Zhejiang testnet was introduced following the deprecation of the Shandong testnet, as it included EIPs related to EVM Object Format (EOF) that developers agreed will not be included in the Shanghai upgrade.

UK Treasury Sets Plans to Regulate Crypto Exchanges and Lenders

The UK Treasury released a consultation paper outlining plans to regulate cryptocurrency trading platforms and lenders. The paper is open for comment until April 30, and aims to give “confidence and clarity to consumers and businesses alike.”

The move comes as part of the Treasury’s financial services roadmap and is part of an approach meant to mitigate the most serious risks of volatility and structural vulnerabilities, which have been affecting some business models in the sector.

In the release Andrew Griffith, economic secretary to the Treasury, was quoted saying:

“We remain steadfast in our commitment to grow the economy and enable technological change and innovation — and this includes crypto-asset technology. But we must also protect consumers who are embracing this new technology — ensuring robust, transparent, and fair standards.”

The UK has made cautious moves toward regulating cryptocurrency. The Financial Services and Markets bill, initially presented to Parliament in July by former Chancellor of the Exchequer Nadhim Zahawi, included the regulation of stablecoins and “digital settlement assets.”

Bankrupt Crypto Lender Celsius Says Some Users Can Withdraw Assets

According to a court filing by Kirkland & Ellis LLP on behalf of Celsius Network, some users of the bankrupt crypto lender's custody program will be able to retrieve 94% of their eligible assets.

The outcome of the remaining 6% will be determined by the court later. The filing, with more than 1,400 pages, listed the names of eligible customers. Celsius Network said on Twitter that users would need sufficient assets in their accounts to satisfy withdrawal fees.

Celsius filed for bankruptcy in July 2022 after cryptocurrency prices started plunging, causing riskier bets to backfire. The firm is one of several cryptocurrency lenders that went under last year.

A court-appointed examiner criticized Celsius and its ex-CEO, Alex Mashinsky, for inadequate risk management and deceptive representation of business practices and financial stability. The company is currently under investigation by US state and federal regulators.

Stablecoins Market Share on Different Exchanges

Exchanges are increasingly favoring specific stablecoins, with Binance automatically converting USDC, USDP, and others to BUSD.

On December 8th, Coinbase also introduced zero-fee USDT-USDC trading, incentivizing users to switch to USDC, which currently represents less than 1% of stablecoin volume on Coinbase.

Read more on CryptoCompare’s latest Stablecoins & CBDCs Report

State of the Crypto by Top Tier Exchange Volume

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