Here are some of the latest developments from the world of crypto
World's largest crypto exchange Binance will temporarily suspend US dollar (USD) bank transfers starting on Wednesday. "We are temporarily suspending USD bank transfers as of February 8th," CoinDesk quoted a Binance spokesperson as saying. He noted that only 0.01 per cent of monthly active users use USD bank transfers, and affected customers are notified directly.
"In the interim, all other methods of buying and selling crypto remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance (including Euros), buying and selling crypto via credit card, debit card, Google Pay, Apple Pay and via our Binance P2P marketplace," the spokesperson added.
Without giving a reason for the suspension, the company informed that it is working hard to resume services at the earliest, a CNBC report said.
Binance's US division, Binance.US, has conveyed to the public that its operation has not been affected by the suspension. As a result, only the non-US customers who transfer funds between their bank accounts in dollars may have been affected.
FTX Bankruptcy Lawyers Say Independent Examiner Risks Assets
Crypto exchange FTX's bankruptcy judge has yet to decide whether to appoint an independent examiner to a four-hour hearing that included the testimony from FTX CEO John Ray III.
“To allow anyone else into that cybersecurity environment will jeopardize the security of everything that has gone forward and everything that will go forward,” decrypt quoted an FTX attorney as saying.
“The US Trustee's Office views this as if we have a warehouse full of sacks of potatoes. We do not. We have a virtual environment filled with code, and even looking at that code puts it at risk,” he added.
The court asked the attorneys representing FTX, the unsecured creditor committee, the US Trustee, and the Joint Public Liquidators of the Bahamas to discuss “a consensual resolution.” According to decrypt, the next FTX court hearing is scheduled for February 8, 2023, but no clarity yet that the judge would make a ruling then.
FTX's legal team argues that an independent examiner would be expensive and duplicate much of Ray team's work since November. In his testimony on Monday, Ray said he and his team field daily inquiries from state and federal investigators. FTX CEO also testified that he did not find examiner's reports helpful in two prior bankruptcies he oversaw.
FTX, once an influential giant in the crypto industry, is accused of having commingled client funds with those of its sister company, Alameda Research—a crypto trading firm. Both firms have the same founder.
Binance Launches Crypto Tax Reporting Tool
Binance Tax, a tool to help users calculate their tax obligations on crypto transactions, was launched by the world’s largest cryptocurrency exchange Binance. The launch is amidst many governments worldwide increasing their scrutiny over crypto transactions .
Binance Tax supports up to 100,000 transactions and allows users to download a tax summary report of gains and losses using the Binance platform. Spot trades, crypto donations, and rewards from blockchain-based forks are included in the data, but futures and NFTs are excluded. The tool is currently only available to users in France and Canada, which will be expanded to other global markets later this year.