Circle Internet Financial, the issuer of the USDC stablecoin, has announced the discontinuation of stablecoin creation for individual accounts. The company is "phasing out support for legacy consumer accounts," but this limitation will not affect business or institutional accounts under the Circle Mint umbrella. 

AllianceBernstein, an international asset management company, has released a note suggesting that Bitcoin's price could potentially surge to $150,000 by 2025. This bullish forecast, disclosed on 31 October, is based on the expectation that the U.S. Securities and Exchange Commission (SEC) will greenlight a spot Bitcoin exchange-traded fund (ETF) by the first quarter of 2024.

The UK Financial Conduct Authority (FCA) has placed Bitfinex, a well-known cryptocurrency trading platform, on its warning list of firms suspected of offering financial services or products without the required authorization. The FCA released a statement on its website last Friday, explicitly advising the public to refrain from engaging in transactions with Bitfinex. 

Top stories in the Crypto Roundup today:

• Circle Limits Stablecoin Minting for Individuals as Tether Reveals Q3 Audit Report
• AllianceBernstein Predicts Bitcoin Could Reach $150,000 by 2025 Due to Spot ETF Optimism
• UK's Financial Conduct Authority Adds Bitfinex to Warning List for Unauthorized Operations

Circle Limits Stablecoin Minting for Individuals as Tether Reveals Q3 Audit Report

Circle Internet Financial, the issuer of the USDC stablecoin, has announced the discontinuation of stablecoin creation for individual accounts. The company is "phasing out support for legacy consumer accounts," however, this limitation will not affect business or institutional accounts under the Circle Mint umbrella. 

Circle clarified that it is now focusing solely on qualified institutional clients and recommends retail users to access USDC through brokerages, cryptocurrency exchanges, and digital wallet services. The company plans to cease wire transfers and stablecoin minting for individual accounts by 30 November 2023, fueling speculation that Circle is tightening its account management policies.

This move aligns Circle more closely with its main competitor, Tether, which has long maintained a minimum threshold of $100,000 for minting and redeeming its USDT stablecoin. USDC is currently the second-largest stablecoin with a supply of $25 billion but has seen a significant decline in market share this year, losing 43% of its market capitalization year-to-date. In contrast, Tether's USDT has reached a new all-time high with a market capitalization exceeding $84 billion.

In related news, Tether disclosed its Q3 2023 attestation on 31 October 2023, revealing $3.2 billion in excess reserves. The report, verified by accounting firm BDO Italy, showed that Tether has $86.4 billion in assets against $83.2 billion in liabilities as of 30 September 2023. The company also indicated ongoing efforts to reduce its $5.2 billion in secured loans to zero by the end of 2023.

AllianceBernstein Predicts Bitcoin Could Reach $150,000 by 2025 Due to Spot ETF Optimism

Asset management and research firm AllianceBernstein forecasts that Bitcoin's price could climb to $150,000 by 2025, largely driven by optimism surrounding the approval of a spot Bitcoin ETF.

AllianceBernstein, an international asset management company, has released a note suggesting that Bitcoin's price could potentially surge to $150,000 by 2025. This forecast, disclosed on 31 October, is based on the expectation that the U.S. Securities and Exchange Commission (SEC) will greenlight a spot Bitcoin exchange-traded fund (ETF) by the first quarter of 2024. The estimate represents a fivefold increase from Bitcoin's current price, which is around $34,000, and more than a twofold increase from its all-time high of over $67,000 in November 2021.

Bernstein anticipates that the SEC's approval of a spot Bitcoin ETF could result in up to 10% of Bitcoin's circulating supply being allocated to ETFs. This would offer traditional investors a direct avenue to invest in Bitcoin, unlike the current closest alternative, Grayscale's Bitcoin Trust (GBTC), which holds about 3% of the total outstanding Bitcoin.

Gautam Chhugani, an analyst at Bernstein, highlighted the importance of timing in his note. He argued that even if one is not a Bitcoin enthusiast, viewing it objectively as a commodity suggests that the timing for an SEC-approved ETF appears to be near. Chhugani's remarks were part of a broader analysis that also initiated coverage on several Bitcoin mining companies.

The note also discussed the upcoming Bitcoin "halving" event slated for April 2024. During this event, Bitcoin mining rewards will be halved, a feature programmed into Bitcoin's code. Chhugani believes this will lead to the exit of less successful miners, benefiting those who remain.

 

UK's Financial Conduct Authority Adds Bitfinex to Warning List for Unauthorized Operations

The UK Financial Conduct Authority (FCA) has placed Bitfinex on its warning list of firms suspected of offering financial services or products without the required authorization. The FCA released a statement on its website last Friday, explicitly advising the public to refrain from engaging in transactions with Bitfinex. The regulatory body emphasized that to offer financial services in the UK, companies must possess the necessary authorization, something Bitfinex currently lacks.

In a counter-statement, Bitfinex revealed that it has been in ongoing, detailed discussions with the FCA for the past four months. The company has also proactively initiated measures to align itself with the FCA's regulatory requirements. These actions include issuing a comprehensive notice to its customer base, detailing the steps it has taken to comply with the FCA's guidelines.

Additionally, Bitfinex has restricted access for UK visitors to multiple sections of its website. These include pages related to affiliate programs, staking services, credit/debit card transactions, lending services, and various informational pages.

The FCA's newly updated rules on financial promotions are applicable across a wide range of media outlets, including websites and social media platforms. Firms not registered for crypto asset services must secure promotional approval from either the FCA or an individual authorized by the FCA. Failure to comply could result in severe penalties, including imprisonment for up to two years and unlimited fines, under section 21 of the UK's Financial Services and Markets Act 2000.

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