Five Events That Shaped the Crypto Industry in 2023 Cryptocurrency's global market share stands at USD 1.66T. While it started with a low, the crypto industry is riding higher as the year ends
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The year is ending on a high note for cryptocurrency. From hitting bottom with USD 16.83k earlier this year, Bitcoin, the largest cryptocurrency by market share, is riding high being priced at USD 43.95k at the time of writing.
Similarly, Ethereum, which ranks second, touched USD 2,274 at the time of writing. It dipped to red with USD 2,206 earlier this year. Cryptocurrency's global market share stands at USD 1.66T. However, not everything was rosy for the space. During the year, it felt the tremors of regulatory issues, leaders stepping down, and war. Here are five events which shaped crypto in 2023.
1. Crackdown by SEC
The US regulatory bodies ruffled things up for the crypto industry when in June, the United States Securities and Exchange Commission (SEC) announced it was filing 13 charges against Binance, the largest crypto exchange by market share, and founder CZ. It later went after Coinbase. Binance ceased its operations in the States and Canada post the allegations of money laundering.
Experts are of the opinion that US authorities have all the intentions of killing the crypto industry.
2. CZ Steps Down From Binance
After six months of trouble, CZ announced he would be stepping down as the head. "I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself," he shared the news on X. While at the time of news, Binance Coin dipped to USD 242. At present, it stands at USD 298.62. It has made a good recovery since June when it touched a low of USD 235.45.
While Richard Teng takes charge at Binance, experts are optimistic that the industry is maturing towards taking regulations and compliance as the top most priority.
3. Crypto Funding the Israel-Hamas Crisis
October 7 marks a gloomy period in history. The war between Israel and Hamas-led Palestinian militant groups over the Gaza Strip continues even today. Wall Street Journal reported that the attacks on Israeli territory by Hamas was funded through crypto. The three militant groups in the region- Hamas, Palestinian Islamic Jihad (PIJ) and Hezbollah, were reported to have received funds worth USD 93 million via crypto between August 2021 and June 2023. Crypto was also used as a means to fuel the Ukraine-Russia war.
On the other side, crypto has also played a role in humanitarian fundraising for the affected in the regions.
4. Sam Altman Enters the Crypto Chat
After taking ChatGPT public last year, Sam Altman made headlines for another industry-.cryptocurrency. Launched in 2019, his iris biometric cryptocurrency project 'Worldcoin' aims to provide its users with a verified digital identity, a cryptocoin, and a crypto wallet. Reportedly, over 2.6 million people signed up to offer the scans of their iris in exchange for a digital ID and free cryptocurrency. Worldcoin will operate as a digital identification platform to differentiate between humans and bots.
The project has faced backlash for its privacy concerns. But nonetheless, Altman and the project stand tall. They plan to raise USD 50 million in funding, according to sources.
5. Preparing Towards a Regulatory Framework
Additionally, the G20 Roadmap on Crypto Assets was approved by the G20 Finance Ministers. Back in April, Indian FM Nirmala Sitharaman shared that India's G20 presidency aims to develop a common framework for all countries to deal with risks associated with cryptocurrencies. In October, the finance ministers of G20 nations adopted the synthesis paper released by IMF-Financial Stability Board (FSB) which suggested for crypto regulations.
"The engagement of the Indian government and the regulatory discussions at the G20 summit have been pivotal moments, signalling a positive stride towards a more cohesive global regulatory framework for the crypto industry. India's presidency at G20 underscores the country's dedication to fostering a secure and innovative digital economy," shares Rahul Pagidipati, CEO, ZebPay.