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Daily Crypto News | July 7, 2022

1. Bank Of England Enhancing Crypto Regulatory and Law Enforcement Frameworks

The “extreme volatility” in cryptocurrency prices in recent months highlights weaknesses in the market, according to the Financial Policy Committee of the Bank of England (BOE), the British central bank, Bloomberg reported.

The Bank of England emphasized the need for stricter law enforcement and regulation for the cryptocurrency sector, according to the journal, citing a $2 trillion decline in the overall market capitalization of all cryptocurrencies. Approximately $1 trillion is the current market capitalization of all cryptocurrencies. At its height in November of last year, it was close to $3 trillion.

The central bank warned that systemic risks could arise if crypto activity and its interconnectedness with the traditional financial system continue to increase, even though it was noted that the volatility in the cryptocurrency market is not currently posing a threat to the stability of the U.K. financial system.

2. US Goverment Bans Crypto Owners From Crypto Policy Making

Private cryptocurrency owners in the US government are no longer permitted to participate on legislation or other initiatives that might have an impact on the value of digital assets.

According to a new advisory notice issued by the US Office of Government Ethics (OGE) on Tuesday, stablecoins and cryptocurrencies are universally exempt from the de minimis exemption, which permits owners of securities to work on policy related to those securities if they hold an amount below a certain threshold.

The notification gave an example of a situation where an employee is asked to work on stablecoin regulation but only owns a small amount of that stablecoin ($100)—in this case, the employee is prohibited from doing so “until and unless they divest their interests in [that] stablecoin.”

3. Elon Musk’s Boring Company Accepts Dogecoin Payment

Elon Musk, the CEO of Tesla, launched The Boring Company, which will now accept dogecoin for use on its Loop transit system in Las Vegas.

The purpose of The Boring Company, according to Musk, is “to solve traffic, which plagues every major city on Earth.” The company’s Loop project, often known as “Teslas in Tunnels,” is one of its endeavors. According to the website for the system, Loop is “an express public transportation system that resembles an underground highway more than a subway system,” and it is also entirely electric and emission-free.

The Tesla CEO tweeted, “Supporting Doge wherever feasible,” in response to an article regarding The Boring Company’s intention to accept dogecoin payments for trips on its Vegas Loop, indicating that the information was accurate.

4. Bank Of America Loses 50% Active Crypto Users Amid Bear Market

According to data released by Bank of America, the proportion of its clients who actively utilize cryptocurrencies has decreased by more than 50% since November of last year, when it peaked. Furthermore, the bank said its data “shows that outflows to crypto platforms have fallen sharply,” indicating that “consumers are pulling back on their net investment into crypto platforms.”

The number of active cryptocurrency users has sharply decreased since its peak in November last year, according to a research released last week by Bank of America. the bank clarified: “Anonymized Bank of America internal customer data shows a sharp, greater than 50%, decline in the number of active crypto users from the peak of over 1 million users in November 2021 to below 500,000 in May.”

Bank of America added that compared to the 267,000 first-time users in October of last year, there were only about 33,000 consumers who transacted in cryptocurrency in May, a fall of 87 percent.

5. Sam Bankman-Fried’s Alameda Research Owes Voyager $377M

According to Voyager Digital’s Chapter 11 bankruptcy filing, Alameda Research, the company formed by crypto millionaire Sam Bankman-Fried that last month issued a $500 million line of credit to the crypto broker, owes the company $377 million.

Given that Voyager stated that hedge fund Three Arrows Capital owes it more than $600 million, the bankruptcy that has recently emerged is an unexpected development.

According to a table on the bankruptcy filing, which was filed in a New York district court, Alameda Research owes Voyager $377 million at a 1% to 5% interest rate. On page 119 of the document is a list of Voyager’s greatest unsecured claims, which includes a $75 million unsecured loan.

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