• Gate.io denies liquidity problems after Multichain CEO goes missing
Centralized crypto exchange Gate.io denied rumors of illiquidity on May 31, stating that “there are no issues with our operations or withdrawals as rumored.” The statement comes after numerous Twitter channels had alleged that the exchange was experiencing insolvency due to an alleged connection between it and the cross-chain router protocol Multichain (MULTI).
The Gate.io team said the company’s “operations are running healthy” and that it is focused on establishing an affiliated trading platform in Hong Kong called Gate.HK.
Rumors about Gate.io’s insolvency erupted after a series of events relating to Multichain. On May 24, blockchain analytics firm Arkham Intelligence posted data showing large inflows of MULTI to Gate.io, which Arkham said was related to rumors of the protocol’s team “allegedly being arrested in Shanghai.”
• Debt ceiling bill passes in the House, advances to the Senate days ahead of default deadline
A bill to raise the debt limit and cap government spending passed in the House by a wide margin late Wednesday, sending the bill to the Senate just days before Monday’s U.S. default deadline.
The Fiscal Responsibility Act passed 314-117, with support from both Democrats and Republicans.
It was a dramatic conclusion to weeks of tense negotiations between the White House and Republican House Speaker Kevin McCarthy.
That drama now moves to the Democrat-controlled Senate, where leaders on both sides want to pass it in 48 hours. Late Wednesday night, Senate Majority Leader Chuck Schumer, D-N.Y., stood up in a nearly empty Senate chamber to formally place the bill on the calendar for Thursday.
“There’s been a very good vote in the House. I hope we can move the bill quickly here in the Senate and bring it to the president’s desk as soon as possible,” Schumer said.
• A June skip jumps to the fore following latest Fed comments
Federal Reserve officials including the vice chair-designate pointed towards a rate hike “skip” in June, prompting a quick reversal of market expectations for another hike as the U.S. central bank weighed the value of caution against still strong inflation data.
In what some viewed as a message from the Fed’s leadership, Fed Governor and vice chair nominee Philip Jefferson said any decision to hold rates steady should not be viewed as the end of the tightening cycle.
“Skipping a rate hike at a coming meeting would allow the (Federal Open Market) Committee to see more data before making decisions about the extent of additional policy firming,” Jefferson said at a financial stability conference in Washington.
• Bitcoin selling for $5K cheaper on Binance Australia as fiat ramp closes
Bitcoin is trading hands at a hefty discount on the Australian branch of the Binance crypto exchange, with the price of Bitcoin down as much as 21% if traded against the Australian dollar.
The move comes as traders rush to cash out their crypto holdings into Australian dollars before the door for local bank withdrawals closes in a few days.
On May 18, Binance Australia informed users that it is suspending Australian dollar services after a decision by its third-party payments provider.
At the time of publication, one BTC can be purchased for only 32,393 Australian dollars, equating to around $21,409, or 21% lower than the global spot rate.
• Hong Kong and UAE central banks collab on crypto rules, fintech development
Hong Kong and the United Arab Emirates’ (UAE) central banks are looking to collaborate on cryptocurrency regulations and financial technology development.
On May 30, the Hong Kong Monetary Authority (HKMA) said it met with its counterparts at the Central Bank of the United Arab Emirates (CBUAE), with the two agreeing to “strengthen cooperation” on “virtual asset regulations and developments.”
The two central banks also pledged to facilitate discussions on “joint fintech development initiatives and knowledge-sharing efforts” with each region’s respective innovation hubs.
Financial infrastructure and financial market connectivity between the two jurisdictions were also noted as key points discussed.
• Bali to crack down on foreign tourists using crypto as payment
Bali’s provincial government will crack down on foreign tourists using crypto as a means of payment in hotels, restaurants, tourism destinations, shopping centres and other places.
“Foreign tourists who behave inappropriately, do activities that are not allowed in their visa permit, use crypto as a means of payment and violate other provisions will be dealt with firmly,” Bali Governor Wayan Koster said at a tourism development press conference on Sunday (May 28).
According to Indonesian law, if one uses other forms of currency other than rupiah, they can face imprisonment of up to one year and a maximum fine of 200 million rupiah (US$13,300).
Concluding Notes:
- Gate.io facing liquidity problems?
- A bill to raise the debt limit passed in the House
- Rate hike skip in June
- Bitcoin selling cheaper on Australian markets
- Hong Kong and the United Arab Emirates are looking to work together
- Bali punishes tourists who use crypto as a means of payment
