Crypto Weekly: the blockchain heats up
STORY: From allegations of mixed-up money at Binance, to how Bitcoin birthed a new breed of token, these are the week’s big stories in the world of cryptocurrencies.
Binance has been accused of mixing customer deposits and company revenue - a practice that helped bring down rival exchange FTX.
Company insiders say the mixing ran into billions of dollars and happened almost daily.
Reuters couldn't verify those numbers, but bank records show the commingling of monies.
If confirmed, that would breach U.S. rules which require client funds to be kept separate.
In a statement, Binance denied using any such practice.
Transactions on the Bitcoin blockchain rocketed to an all-time high this month.
And it’s all about a new breed of coin.
BRC-20 is the first class of tokens to be built on the Bitcoin blockchain, besides Bitcoin itself.
Crypto watchers say that blockchain is seen as a relatively safe bet after the scandals that bought down other tokens.
Critics say the new tokens have no actual use, and are akin to the wildly volatile meme coins.
And UK lawmakers have called for crypto to be regulated like gambling.
In a new report, a parliamentary panel says regulating it like a financial service could give people the idea that it’s safer than it is.
They argue regulating it like gambling drives homes the risks.
Britain is currently drawing up its first set of rules for crypto assets.