Behind the Blockchain: Power Moves and Policy Shifts

UK Regulator Plans to Ban Crypto Buys with Borrowed Money

The UK's financial watchdog is moving to ban the use of credit cards and other borrowed funds for purchasing cryptocurrencies. This effort is intended to reduce the financial risks faced by retail investors, especially after the fallout from high-profile crypto failures like Celsius. The FCA is also proposing stricter requirements for crypto lenders, including background checks on users' creditworthiness and investment experience.

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Trump Administration Spurs Crypto Boom in the U.S.

A growing number of international crypto firms are setting up operations in the U.S., driven by the Trump administration’s supportive approach to digital assets. Companies such as Deribit, OKX, Nexo, and DWF Labs are expanding stateside, buoyed by regulatory rollbacks and legal leniency. The Justice Department has also reportedly dissolved its crypto crimes task force, signaling a more business-friendly environment.

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Massive $2B Binance Deal Involves Trump-Linked Stablecoin

A UAE investment firm, MGX, is reportedly injecting $2 billion into Binance using a stablecoin called USD1, created by a company tied to Donald Trump. This marks one of the largest institutional investments in a crypto exchange to date. However, the transaction has sparked debate, as critics question whether political connections are influencing financial decisions in the crypto space.

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Worldcoin Debuts in the U.S. with Biometric Crypto Platform

Worldcoin, a project co-founded by OpenAI CEO Sam Altman, has launched its digital identity system in the U.S. The initiative includes an iris-scanning device known as the Orb, designed to verify individuals' identities and support a vision for future universal basic income distribution. As part of the rollout, early users received roughly $40 worth of Worldcoin tokens.

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Crypto Market Snapshot (May 3, 2025)

Bitcoin is trading just under $96,100, showing a modest daily decline. Ethereum has dipped slightly to $1,824, while BNB stands at $597. XRP and Cardano have also seen small pullbacks, reflecting a broader cooling in the market after recent highs.

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