RIYADH: Bitcoin, the leading cryptocurrency internationally, traded higher on Thursday, rising by 3.15 percent to $20,084.51 at 9:15 a.m. Riyadh time.
Ethereum, the second most traded cryptocurrency, was priced at $1,104.69, rising by 4.66 percent, according to data from CoinDesk.
Crypto firm Celsius files for bankruptcy
The industry was thrown into greater turmoil on Wednesday when cryptocurrency investment platform Celsius filed for bankruptcy in the US a month after freezing withdrawal, according to Reuters.
The company suspended withdrawals in mid-June and seeks a restructure that maximizes value for all stakeholders. It claimed it had $167 million in cash to cover urgent needs.
Without the freeze on withdrawals, “the acceleration would have allowed certain customers — those who were first to act — to be paid in full while leaving others to wait,” the Celsius special committee was quoted as saying in the statement.
Voyager Digital, a US-based cryptocurrency lending specialist, filed for bankruptcy last week.
As a result of a lack of cash, other companies have suspended withdrawals, including CoinFlex and Babel Finance.
In addition, Three Arrows Capital, a Singaporean investment firm, has filed for bankruptcy.
Stablecoins under ‘same risk, same regulation’
On Wednesday, global regulators tightened controls over a battered crypto sector by requiring stablecoins to comply with the same safeguards as traditional forms of payments, according to Reuters.
A stablecoin is a cryptocurrency designed to avoid the volatility that makes bitcoin and other digital tokens impractical for most commerce.
The International Organization for Securities Commissions and the Bank for International Settlements, a central bank forum, announced that the proposals they submitted to public consultation in October had been adopted.
Using “same risk, same regulation,” the new guidance explains when existing payment sector rules should be applied to large stablecoins.
Ashley Alder, chair of IOSCO and CEO of Hong Kong’s securities regulator, said: “We expect the same level of robustness and strength in these aspects in systemically important stablecoin arrangements.”
In addition to managing risks, the guidance also covers governance and transparency.
“Recent developments in the crypto asset market have again brought urgency for authorities to address the potential risks posed by crypto assets, including stablecoins more broadly,” chair of the BIS committee and deputy governor of the Bank of England Jon Cunliffe added.