Q2 2023: Five stories that shaped cryptocurrency
Quarterly retrospective covering April 1–June 30, 2023. Dated June 30, 2023. Stories selected for market impact, policy significance, and consequences for cryptocurrency infrastructure.
1. Ethereum enables staking withdrawals through Shapella
Ethereum activated the Shanghai-Capella upgrade, commonly called Shapella, on April 12. The release enabled withdrawals from the Beacon Chain, allowing validators to access eligible rewards and, through the exit process, withdraw their full stake. It completed an important part of the proof-of-stake transition that had remained unfinished after the Merge. For staking participants, the change made the path into and out of validation more complete, while withdrawal queues and protocol rules still governed the timing of access. It also required coordinated updates across execution and consensus clients. Source: The Block, April 12.
2. The EU formally adopts MiCA
The Council of the European Union adopted the Markets in Crypto-Assets regulation on May 16, following the European Parliament’s approval. MiCA established a common framework for covered issuers and service providers, including authorisation, governance, and consumer-protection requirements. The milestone turned the earlier political agreement into adopted legislation and gave businesses a clearer basis for planning European operations. Its operational provisions would follow a staged application schedule, so formal adoption and the immediate need for every existing firm to hold a new authorisation were different questions. Source: Council of the European Union, May 16.
3. The SEC sues Binance and Coinbase
The SEC brought major cases against Binance on June 5 and Coinbase on June 6, alleging violations involving unregistered securities-market activities. The Binance case also included allegations concerning the operation of its platforms and handling of customer assets. The actions placed two of the industry’s largest businesses at the centre of a dispute over how existing securities laws applied to cryptocurrency trading. These were allegations at the time, and the cases were separate proceedings; their shared importance was the regulatory pressure on the business model of large, multi-service exchanges. Sources: SEC Binance announcement, SEC Coinbase announcement.
4. BlackRock files for a spot Bitcoin fund
BlackRock filed for a spot Bitcoin exchange-traded fund on June 15, adding the world’s largest asset manager to the effort to bring direct Bitcoin exposure into U.S. securities markets. The application arrived while cryptocurrency exchanges were facing intense enforcement pressure, making the contrast between regulatory disputes and institutional product development especially striking. The filing renewed attention to custody, market surveillance, and investor access through ordinary brokerage accounts. It was an application for regulatory consideration, with the launch of any product still dependent on the relevant approvals and preparations. Source: Reuters, June 15.
5. Hong Kong begins its new platform-licensing regime
Hong Kong’s new licensing regime for centralised virtual-asset trading platforms took effect on June 1. The Securities and Futures Commission set out transitional arrangements for existing operators and requirements for firms seeking authorisation. The framework was significant for the city’s effort to develop a regulated digital-asset market and for platforms considering how to serve investors there. Its introduction made eligibility, compliance systems, and licensing status key operational issues, with transitional treatment depending on whether a business met the conditions specified by the regulator. Source: Hong Kong SFC circular, May 31.