Author: Kristen Moran

Taiwan’s Ministry of the Interior has approved the establishment of a cryptocurrency industry association, marking a significant step toward regulating the burgeoning sector.

The local cryptocurrency industry working group, which was formed last year to pave the way for the creation of the association, announced on Friday that it had received government approval for its application.

The working group is now tasked with finalizing all necessary preparations and officially establishing the cryptocurrency industry association by the end of June, as stipulated by government regulations.

Comprising 22 cryptocurrency firms, including prominent exchanges like MaiCoin and BitoPro, the working group has excluded ACE Exchange from its ranks due to ongoing investigations into alleged misconduct by its former executives.

Moving Towards Self-Regulation

While Taiwan currently mandates that cryptocurrency service providers adhere to anti-money laundering laws introduced by the Financial Supervisory Commission in July 2021, the sector largely operates without comprehensive regulation.

In September 2023, the FSC issued guidelines prioritizing customer protection for cryptocurrency firms. With the formation of an industry association, these firms aim to develop self-regulatory measures aligned with the FSC’s guidelines.

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In a recent blog post, Ethereum co-founder Vitalik Buterin shared his thoughts on memecoins and their potential to contribute positively to the cryptocurrency space. Buterin expressed his general disapproval of negative memecoins but emphasized the importance of fostering “good ones” that make constructive contributions.

Highlighting one of his moral principles, Buterin stated his lack of enthusiasm for memecoins associated with totalitarian political movements, scams, or rugpulls, which often result in disappointment and harm to participants. He acknowledged the recent surge of intentionally offensive memecoins, including those containing racial slurs or references to sensitive historical events like the Holocaust, expressing concern about their negative impact.

Despite these concerns, Buterin recognized the value of people’s desire for enjoyment and suggested that the crypto space should embrace this trend by promoting high-quality, fun projects that contribute positively to the ecosystem and society. He advocated for a balance, aiming for more good memecoins that support public goods rather than solely enriching insiders and creators.

Buterin proposed charity coins as an example of memecoins that could align with this vision, where a portion of the token supply or ongoing fees are dedicated to charitable causes. His remarks come amid ongoing discussions within the industry about the role of memecoins, with some expressing frustration over their potential to overshadow legitimate projects and concern over their regulatory implications.

Recently, regulators such as the Financial Conduct Authority in the UK have issued warnings about the risks associated with memecoins, particularly concerning their promotion by influencers on social media platforms. The FCA emphasized the need for approval from authorized representatives before advertising or posting memes related to financial products or services, including cryptocurrencies.

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Coinbase has announced its intention to enhance the storage of corporate and customer USDC balances on Base, an Ethereum Layer 2 solution incubated by Coinbase and built on the open-source OP Stack. This strategic move aims to capitalize on lower fees and faster settlement times offered by Base, without compromising the user experience on the Coinbase platform. Max Branzburg, Vice President and Head of Consumer Products at Coinbase, expressed enthusiasm about transitioning more of their operations on-chain and encouraged other companies to follow suit.

The decision has been well-received, with Base contributor Jesse Pollak expressing approval and stating that they are excited to support Coinbase’s transition to on-chain operations.

In parallel with this development, Base has experienced a substantial surge in Total Value Locked (TVL), reaching over $1 billion. This significant milestone represents more than double the TVL recorded at the beginning of the month, according to data from Defi Llama. Notably, the decentralized exchange Aerodrome contributes the majority of Base’s TVL, witnessing remarkable growth since early February.

Transaction counts on Base have surged, outpacing other optimistic rollups, with Arbitrum also experiencing notable growth. In contrast, OP Mainnet’s daily transaction count has seen a more moderate increase.

Coinbase’s decision to leverage Base for storing USDC balances aligns with the broader trend of increasing adoption of Layer 2 solutions in the Ethereum ecosystem. As Base continues to gain traction and demonstrate its scalability and efficiency, it is poised to play a significant role in facilitating faster and more cost-effective transactions for Coinbase and its customers.

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Deribit, a leading cryptocurrency derivatives exchange, is poised to witness historically high levels of bitcoin options open interest expiring this Friday. The surge in open interest, totaling over $9.5 billion, reflects increased liquidity and participation in the market.

According to analysts at Deribit, this end-of-month expiry represents one of the largest in the exchange’s history, accounting for approximately 40% of the total open interest. Comparatively, previous end-of-month expiries in January and February stood at significantly lower levels, around $3.74 billion and $3.72 billion, respectively.

A notable aspect of this expiry is the considerable portion of options set to expire in the money, amounting to $3.9 billion based on a current spot price of around $70,000. This suggests that a substantial number of options contracts hold value at current market prices, potentially leading to increased buying activity as traders seek to hedge or capitalize on further price movements.

Deribit analysts anticipate heightened volatility or upward pressure on bitcoin prices as option holders exercise their profitable contracts. The recent price rally in Bitcoin has contributed to this situation, resulting in higher levels of in-the-money expiries compared to typical scenarios.

Luuk Strijers, Chief Commercial Officer at Deribit, emphasized the bullish sentiment prevailing in the cryptocurrency market, particularly evident in derivatives data. Strijers highlighted the basis yield achievable by buying spot and selling longer-dated futures, indicating strong demand in the market.

Moreover, Strijers noted a significant increase in Bitcoin notional open interest in contracts valued at $100,000 and higher on Deribit. He also pointed out a shift in the put-call ratio for ether options, indicating evolving market sentiment towards short-term and long-term expiries.

Overall, the heightened levels of bitcoin options open interest on Deribit reflect the growing maturity and sophistication of the cryptocurrency derivatives market, underpinned by bullish market sentiment and evolving trader strategies.

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Bitcoin’s ascent faces a shaky $70,000 resistance, but data from the blockchain suggests participants are gearing up for a sustained rally. Recently, Bitcoin surged above $71,000, marking its highest point since March 15, propelled by capital inflows into spot BTC exchange-traded funds (ETFs).

On March 26, Bitcoin saw a 0.55% increase over 24 hours, reaching a weekly peak at $71,582. Factors driving this surge include consistent inflows into spot Bitcoin ETFs, the anticipation surrounding the upcoming Bitcoin halving, and positive sentiment among institutional investors.

Key to Bitcoin’s rally is the accumulation by large investors. Data from Sentiment reveals a rise in wallets holding between 1,000 BTC and 10,000 BTC, reaching 25.17% from 23% at the beginning of the year. Similarly, wallets holding between 10,000 BTC and 100,000 BTC saw a spike from 11.68% to 12.42% before settling at 11.98%.

This accumulation is reinforced by decreasing BTC deposits on exchanges, signaling reduced intent to sell. Instead, there’s been a surge in whale transfers from exchanges to self-custody wallets. Notably, one holder moved 2,400 BTC ($169.5 million) from Coinbase to an undisclosed wallet, while another withdrew 4,797 BTC ($339 million) to an unknown destination.

Anticipation surrounding the upcoming halving event is also bolstering Bitcoin’s price. Glassnode predicts that ETF buying power will overshadow the traditional supply squeeze expected from the halving, set for April. Analysts emphasize monitoring the activity of long-term holders (LTHs), whose decisions can significantly impact market liquidity and sentiment.

With the halving approaching, traders are eyeing Bitcoin’s next price level. Despite facing resistance, data from IntoTheBlock indicates strong support around $64,000, suggesting momentum for Bitcoin’s ascent back to the $70,000 range.

Traders are now focused on maintaining Bitcoin above $70,000, with $100,000 emerging as a key target for the price.

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