Cryptocurrency news: Polkadot declines by 6.3%; Ethereum slips by 5.9%

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Nine of the ten cryptocurrencies were trading in red on Tuesday, with Polkadot registering the highest decline of 6.32% to $28.15. The world’s second largest token Ethereum fell by 5.91% to $2,949.21. Similarly, XRP, Cardano and Binance Coin were also down by 4.18%, 4.19% and 3.77% respectively. Bitcoin, the oldest and the biggest cryptocurrency in the world slumped by 3.64% to $42,543.97. USD Coin alone gained by 0.01% in the last 24 hours. In terms of ranking, all the cryptocurrencies stayed in the same position as yesterday.

Cryptocurrency prices

*All prices as of 28th September 2021, at 9:00 AM, Table Source: Coinmarketcap.com. Conversion rate for the USD to INR used was $1=Rs 73.81

Crypto exchanges sever ties with Chinese clients

Crypto exchanges and service providers are in a rush to cut-off its ties with mainland Chinese clients, after the country’s right ban on all cryptocurrency trading mining, the biggest ever by a major economy.

Shares of various Chinese firms related to cryptos had a downward spiral which closed off loopholes left in previous regulatory crackdowns on the sector. On the other hand, many companies have already shifted their key portions of their business outside of China.

Huobi Global and Binance, two of the largest exchanges in the world, which are also popular in China said that they have stopped new registration of accounts by mainland customers. Huobi also said that it will remove the existing ones by the end of the year.

Treasury department to tighten regulations on stablecoins

The US treasury department and other agencies have ramped up the pace on bringing tighter regulations on a fast growing product called stablecoin.

This move comes on the back of concerns as both established and new firms have rushed to find ways to profit from bringing in massive wealth held in cryptocurrencies into the traditional financial system through quasi banking services like interest-bearing accounts and lending.

At present, Stablecoins are regulated lightly, through a patchwork of state rules as they serve as a bridge between cryptocurrency markets and the traditional economy.

Treasury department officials want an assurance that stablecoin firms have the technical capacity to handle the big surges in transactions, so that they do not set off a chain reaction of trouble when a large number of customers cash out on their holdings.