Bitcoin’s mining difficulty saw its most significant decline since the cryptocurrency winter of late 2022, dropping around 6% in a move analysts at broker Bernstein deemed was a positive development for miners.

The US has ordered a Chinese cryptocurrency mining company to divest property it acquired near a Wyoming Air Force base that houses intercontinental ballistic missiles, calling the firm a national security threat.

Cryptocurrency trading firm FalconX has agreed to pay $1.8 million to settle charges brought by the Commodity Futures Trading Commission (CFTC) for failing to register as a futures commission merchant (FCM).

Top stories in the Crypto Roundup today:

• Bitcoin Mining Difficulty Sees Largest Drop Since Late 2022
• U.S. Orders Chinese Crypto Miner to Divest Property Near Military Base
• FalconX Settles With CFTC for $1.8 Million Over Failure to Register

Bitcoin Mining Difficulty Sees Largest Drop Since Late 2022

Bitcoin’s mining difficulty saw its most significant decline since the cryptocurrency winter of late 2022, dropping around 6% in a move analysts at broker Bernstein deemed was a positive development for miners.

Lower Bitcoin prices and a near-doubling of mining equipment costs since the halving event have forced higher-cost operations to shut down, the analysts wrote, which in turn has reduced the overall hashrate, a measure of the combined computational power dedicated to Bitcoin mining.

The analysts added that the hashrate drop has seen the market share of the three Bitcoin miners they cover up “by almost 20 basis points,” and that they expected “the top 3 listed Bitcoin miners to continue to consolidate market share via organic and M&A led expansion.”

The report highlights Riot Platforms (RIOT) and CleanSpark (CLSK) as leading miners boasting the lowest production costs and healthy balance sheets. The firm’s analysts foresee Bitcoin remaining relatively stable, with a potential breakout being possible once spot Bitcoin exchange-traded funds (ETFs) see allocations from registered investment advisors, wealth platforms, and other institutions.

U.S. Orders Chinese Crypto Miner to Divest Property Near Military Base

The US has ordered a Chinese cryptocurrency mining company to divest property it acquired near a Wyoming Air Force base that houses intercontinental ballistic missiles, calling the firm a national security threat.

The company, MineOne Partners, and its affiliates "might take action that threatens to impair the national security” of the United States, the White House said in an executive order. The firm must sell the real estate it purchased in 2022 near the F.E. Warren Air Force Base, which houses nuclear weapons.

The move comes amid growing wariness in Washington about Chinese investment near sensitive military installations. Federal and state officials have expressed concerns surrounding a perceived pattern of Chinese companies acquiring land in close proximity to U.S. bases, with lawmakers in several states having introduced legislation that would restrict or ban such purchases by Chinese entities.

The Committee on Foreign Investment in the United States (CFIUS), an interagency panel that reviews foreign acquisitions for potential national security risks, has determined that MineOne's land purchase posed a threat after conducting a review.

According to the Treasury Department, which chairs CFIUS, the company still needs to submit the transaction for review before completion. The organization, with the Department of Justice, Homeland Security, Commerce, State and Defense among its members, recently received expanded authority to review real estate transactions near US military installations.

FalconX Settles With CFTC for $1.8 Million Over Failure to Register

Cryptocurrency trading firm FalconX has agreed to pay $1.8 million to settle charges brought by the Commodity Futures Trading Commission (CFTC) for failing to register as a futures commission merchant (FCM).

The CFTC said that FalconX, through its "Edge" product, acted as a crypto prime broker, facilitating trades in derivatives like futures and swaps for institutional clients, including some based in the United States.

FalconX lacked proper registration with the CFTC while describing itself as the “largest digital asset prime brokerage,” with only one of its portfolio companies being registered with the CFTC as a swap dealer since last August.

According to the regulator, the way FalconX conducted its business for institutional clients meant that accurate know-your-customer (KYC) information was often not provided to the exchanges being used. The firm’s approach was enhanced after the CFTC filed a lawsuit against Binance and its former CEO Changpeng Zhao in March 2023.

In its settlement agreement, the CFTC pointed to FalconX’s “substantial cooperation” with its investigation and the firm’s remediation efforts, which resulted in a lower penalty than could have been imposed.

Global Finance Convenes in London: City Week 2024 Kicks Off

 

We are delighted to be a supporter of City Week 2024!

The 14th annual edition of City Week will be held in-person in Central London, and also live streamed, over two days between 20-21 May 2024. As in previous years, CW2024 is being organised in partnership with the UK Government, the City of London Corporation, TheCityUK and UK Finance.

City Week brings together more than 1,000 top-level senior decision-makers from UK and overseas financial institutions for a comprehensive programme of cutting-edge presentations, panel discussions, social events and networking. Like previous editions, this year’s forum will feature many well-known names from the global financial services industry, the world of politics and the international regulatory community.

At the core of City Week are four separate summits (see below), which reflect the boardroom agenda of leading financial institutions from across the world.

Day One (20 May): The International Capital Markets Financial Leaders' Summit

Day One (20 May): The Climate Change and Natural Capital Financial Leaders' Summit

Day Two (21 May): The Tokenisation and Digital Assets Financial Leaders' Summit

Day Two (21 May): The AI and Technology Financial Leaders' Summit

Website/Registration/Enquiries

• Website: https://www.cityweekuk.com/city-week-2024/ccdata-discount
• Email: cityweekuk@cityandfinancial.com

Obtain a 20% discount by using/quoting the following discount code: CITY15CCD

Press Release

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.