FTX to Sell Billions in Crypto, SWIFT’s CDBC Project, and the EU’s Crypto Regulations

Written by BTSE

September 14, 2023

Following Bitcoin’s rebound to $26,400 yesterday, the price of the token has settled safely above the $26K mark at $26,200 at time of writing. Ethereum saw similar gains, jumping above $1.6K in the same timeframe, and now comfortably sitting at $1,620. Analysts see yesterday’s price movement to be fuelled by Franklin Templeton’s Bitcoin ETF filing, no news overnight has managed to stir either of these two large market cap tokens out of these ranges. 


What to Watch Out for Today


1. EU Parliament Approves DAC8: This morning, the European Parliament overwhelmingly voted in favor of DAC8, the eighth iteration of the Directive on Administrative Cooperation, a cryptocurrency tax reporting regulation. DAC8 aims to harmonize the cryptocurrency market within the EU, complementing MiCA and AML regulations, granting tax authorities the power to track and assess cryptocurrency transactions by individuals and organizations in member states. The final hurdle has been cleared, and EU member states have until December 31, 2025, to implement the rules, which will officially take effect on January 1, 2026. Analysts expect the further clarity in crypto regulation to make crypto more attractive to institutions in the EU looking to make their first foray into cryptocurrency – something that has historically been a positive sign for the crypto market.


2. FTX Approved to Sell Billions in Crypto: The bankrupt digital asset exchange, FTX, has received approval from Judge John Dorsey to sell $3.4 billion worth of cryptocurrencies, including Solana, Ethereum, and Bitcoin, as part of its bankruptcy proceedings in the U.S. Bankruptcy Court for the District of Delaware. The plan, initially outlined in August, designates Galaxy Digital, led by Mike Novogratz, as the investment manager responsible for overseeing the asset sale. FTX intends to limit its weekly token sales to $100 million per week, with the possibility of increasing this limit to $200 million for individual tokens, pending court authorization. Notably, sales of Bitcoin, Ethereum, stablecoins, and stablecoin redemptions will not count towards the weekly limit. This move would add a large supply of the above tokens to the market, which could result in a slip in price – however, the limit on weekly token sales could also negate the effects of the additional supply – only time will tell.


3. SWIFT’s CDBC Project: Three central banks, including the Hong Kong Monetary Authority and the Central Bank of Kazakhstan, have entered the beta phase of SWIFT’s central bank digital currency (CBDC) interoperability project, along with an unnamed central bank, and SWIFT’s CBDC connector solution has been integrated into the participating banks’ infrastructure for direct testing. SWIFT, a messaging platform connecting over 11,500 financial institutions globally, has been exploring CBDC-related projects despite potential competition with its existing services. In August, SWIFT reported that 89% of its transactions are processed within an hour, surpassing G20 goals. However, regulatory controls and working hours impact the actual speed of wholesale payments. As blockchain technology garners further interest among traditional financial institutions and services like SWIFT, the future mainstream adoption of cryptocurrency does not seem so far away – and large institutions moving into the space has previously been a bullish signal for the market more broadly.


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Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.

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