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Cyprus regulator extends FTX suspension to May 2025

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Cyprus’ financial regulator, the Cyprus Securities and Exchange Commission (CySEC), has extended its suspension of FTX’s operations in the region until May 2025. The move comes amid ongoing investigations into the collapse of the crypto exchange, which filed for bankruptcy in November 2022 following allegations of fraud and mismanagement. CySEC’s decision to maintain the suspension reflects the continued uncertainty surrounding FTX’s legal and financial status, as authorities work to assess the full extent of its liabilities.

The extension of the suspension means that FTX will remain prohibited from offering services to clients in Cyprus, effectively preventing any operations from the exchange in the region. This measure also affects FTX’s local entities, which were previously licensed under CySEC’s regulatory framework. The regulator’s actions align with broader efforts by financial authorities worldwide to ensure the protection of investors and maintain market integrity in the wake of FTX’s dramatic collapse.

FTX’s downfall sent shockwaves through the cryptocurrency market, leading to a cascade of regulatory and legal responses across multiple jurisdictions. The exchange’s founder, Sam Bankman-Fried, has faced numerous criminal charges related to fraud, money laundering, and the misuse of customer funds, with trials currently underway in the U.S. CySEC’s decision to extend the suspension reflects the ongoing complexities surrounding FTX’s legal troubles, and it underscores the need for further regulatory clarity in the global crypto market.

The extended suspension further complicates the prospects for FTX’s creditors, many of whom are still awaiting resolutions and potential recoveries of their investments. While the regulator’s actions provide a layer of investor protection, they also highlight the challenges faced by authorities as they attempt to manage the fallout from one of the largest crypto exchange failures in history. As investigations continue, the global crypto community will be closely watching the outcomes of both legal proceedings and regulatory decisions that may shape the future of the industry.

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Binance tightens South African compliance rules for crypto transfers

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Binance is tightening compliance measures for crypto transactions in South Africa, announcing it will fully implement the country’s Travel Rule requirements beginning January 2025. The move aligns with regulations set by South Africa’s Financial Intelligence Centre (FIC) and reflects the exchange’s broader efforts to meet global anti-money laundering standards.

Under the new rules, Binance will require South African users to include verified personal information—such as names, addresses, and account details—when sending or receiving crypto between platforms. These changes are designed to increase transparency and traceability of digital asset transfers, making it harder for illicit actors to exploit decentralized networks.

Binance emphasized that users must complete know-your-customer (KYC) verification before transferring crypto to or from external wallets. Transfers to non-compliant platforms may be restricted or flagged, while internal transfers within Binance or to Travel Rule-compliant entities will remain unaffected.

The announcement follows South Africa’s decision in 2023 to designate crypto as a financial product, placing digital asset providers under the supervision of the FIC. The country has since taken steps to integrate crypto into its formal regulatory structure, including licensing requirements and mandatory reporting obligations.

With enforcement beginning in 2025, Binance urged users to familiarize themselves with the new procedures to avoid disruptions. The exchange also plans to provide additional guidance and tools to help users remain compliant as the deadline approaches.

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Ethereum bounces back as market dominance recovers from all-time low

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Ethereum has staged a notable recovery after recently experiencing its lowest market dominance since its early days. The turnaround comes as ETH surged nearly 4% in the past 24 hours, climbing back above the $3,100 mark and narrowing its underperformance gap relative to Bitcoin.

For much of 2024, Ethereum has trailed behind Bitcoin and a growing wave of altcoins, with its market share dropping below 15% — levels not seen since 2015. The slump was driven by investor focus on Bitcoin ETF momentum, lackluster institutional interest in ETH, and rising competition from layer-1 and layer-2 networks offering faster and cheaper alternatives.

Despite these challenges, Ethereum’s fundamentals remain strong. Data shows a healthy uptick in active addresses, transaction volumes, and total value locked in DeFi protocols built on Ethereum. Additionally, hopes remain high for the approval of a spot Ethereum ETF in the U.S., with analysts suggesting a potential turnaround in institutional flows if approved.

Traders are now watching whether this rebound signals a sustained trend reversal or just a temporary relief rally. With key upgrades and ecosystem developments still in the pipeline, Ethereum’s ability to regain dominance may hinge on reigniting both investor confidence and broader developer activity.

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SEC says it won’t re-file fraud case against Hex’s Richard Heart

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The U.S. Securities and Exchange Commission (SEC) has confirmed it will not pursue a retrial in its fraud case against HEX founder Richard Heart, effectively bringing an end to one of the agency’s high-profile crypto enforcement actions.

The decision follows a recent court ruling that dismissed several key allegations against Heart, including claims that he misled investors and violated securities laws through the promotion and sale of HEX, PulseChain, and PulseX tokens. While the SEC initially signaled it would consider further legal options, it has now opted to forgo additional litigation.

Heart, a controversial figure in the crypto world, had long denied the SEC’s accusations, framing the lawsuit as an overreach by regulators. The agency had alleged that Heart raised over $1 billion from investors while misrepresenting how funds would be used and failing to register the offerings.

With the SEC stepping back, the dismissal marks a rare instance in which the regulator has chosen not to continue a crypto-related fraud case, potentially signaling a reassessment of its approach amid growing legal pushback and mounting scrutiny over its enforcement tactics.

Although the case is now closed, legal analysts suggest the outcome could influence future regulatory efforts and may embolden other crypto founders facing similar challenges. Heart, meanwhile, has positioned the development as a vindication, reaffirming his stance that HEX and related projects were never in violation of U.S. securities laws.

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