Coinbase has joined the ranks of prominent cryptocurrency trading platforms like Binance by integrating the Bitcoin Lightning Network, fulfilling promises made by CEO Brian Armstrong.

In a statement released on April 3rd, Lightspark, a lightning network-based payment infrastructure provider, announced its selection by Coinbase to facilitate the integration of the Bitcoin Lightning Network.

Through this partnership, Coinbase will utilize Lightspark’s remote-key signing implementation. This setup enables Coinbase to maintain control of the Lightning signing keys while Lightspark manages the Lightning node infrastructure. This collaborative approach ensures smooth operations without overwhelming Coinbase’s team with the management of a large-scale implementation.

Lightspark has garnered significant success in simplifying Lightning node management. Its suite of products, including SDKs, APIs, and developer tools, seamlessly integrates with the Lightning Network. Moreover, Lightspark’s AI-based smart engine, known as Lightspark Predict, dynamically optimizes liquidity needs to improve transaction success rates in real time.

Benefits of Lightning Integration

The integration provides several advantages for Coinbase, including leveraging Lightspark’s node infrastructure while allowing its team to concentrate on customer-centric initiatives.

Furthermore, the collaboration will positively impact the Bitcoin network, particularly during periods of increased transaction fees, by improving scalability and transaction efficiency. Furthermore, it sets the foundation for future applications by supplying liquidity to the Bitcoin network.

Shan Aggarwal, Coinbase’s VP of Corporate & Business Development, conveyed excitement regarding the partnership, expressing the company’s eagerness to collaborate with Lightspark to remove payment barriers and facilitate faster and more cost-effective Bitcoin transactions by supporting the Bitcoin Lightning Network.

Recently, Coinbase has faced mounting inquiries from various crypto community members regarding its delay in adopting the scaling solution, especially following the integration of the technology by major competitors like Binance.

In response, Armstrong reaffirmed Coinbase’s commitment to incorporating the Lightning Network, highlighting the company’s ongoing efforts.

This integration holds significance for Bitcoin, considering the growing demand for streamlined Bitcoin transactions amidst soaring prices.

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The Monetary Authority of Singapore (MAS) is broadening its regulatory framework for crypto service providers through amendments to the Payment Services Act, aiming to enhance user protection and safeguard financial stability.

Announced on Tuesday, the amendments will be implemented in stages, starting from April 4. The MAS emphasized that these changes will encompass custodial services for digital payment tokens (DPTs), facilitation of DPT transmission, and cross-border money transfers, even in cases where funds are not received in Singapore.

Under the amended regulations, the MAS will have the authority to impose requirements related to anti-money laundering (AML), countering the financing of terrorism (CFT), user protection, and financial stability on DPT service providers.

Transitional arrangements will be provided for entities affected by the expanded regulatory scope. However, affected entities must notify the regulator within 30 days and submit a license application within six months from April 4.

According to Angela Ang, a senior policy advisor at blockchain intelligence firm TRM Labs and former MAS regulator, this expansion brings long-awaited regulatory clarity to crypto custody players in Singapore.

Kelvin Low, a law professor at the National University of Singapore, remarked that these changes were anticipated and unlikely to surprise industry players. He suggested that any decisions by crypto exchanges or firms to exit Singapore due to these changes would have been made well in advance.

In addition to regulatory amendments, the MAS released guidelines outlining consumer protection measures that DPT service providers must adhere to under the Payment Services Act. These measures include segregating customer assets, maintaining proper books and records, and ensuring the security and integrity of customer assets. The guideline is slated to come into effect on October 4.

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Crypto.com is set to introduce its digital asset trading services in South Korea by the end of this month, as announced on Tuesday. This move comes as part of Crypto.com’s acquisition of local exchange OK-BIT in 2022.

The forthcoming platform from Crypto.com will replace the operations of OK-BIT, which is gradually winding down its services. Eric Anziani, President and COO of Crypto.com, expressed excitement about entering the South Korean market, emphasizing its significance for the company’s growth and the keen interest of South Korean consumers in crypto.

The South Korean trading platform Crypto.com will adhere to strict regulations set by local authorities for crypto exchanges. Operating under the name Crypto.com App, the platform will enable South Korean retail investors to engage in cryptocurrency and non-fungible token (NFT) trading. However, institutional clients will not be served, as South Korean-based institutions are restricted from direct crypto investments.

Furthermore, South Korea mandates that local crypto exchanges establish banking partnerships to offer fiat-to-crypto trading services, aiming to mitigate risks related to money laundering and market manipulation. While Crypto.com’s initial services will focus on crypto-to-crypto exchange, the company aims to secure a local bank partnership to provide a comprehensive trading experience, according to South Korean news agency News1.

In a parallel development, Binance made its entry into the South Korean market last year by acquiring a majority stake in local exchange Gopax. However, regulatory concerns surrounding Binance’s legal issues in the U.S. have led to delays in approving structural changes to Gopax. Binance has been actively seeking to address compliance issues by reducing its shares in Gopax and engaging in discussions with financial regulators in South Korea.

South Korea boasts one of the world’s largest and most active cryptocurrency markets, with its five fully licensed exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—processing nearly $3 billion worth of crypto transactions in the past 24 hours, according to CoinGecko data. During the peak of Bitcoin’s price surge earlier this year, South Korea’s crypto trade volume briefly surpassed that of its stock market.

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Spot Bitcoin exchange-traded funds (ETFs) witnessed a significant surge in trading volume in March, reaching a staggering $111 billion. This notable increase, nearly tripling the trading volume from February, underscores the sustained interest of investors in BTC.

According to data provided by Bloomberg ETF analyst Eric Balchunas, spot Bitcoin ETF trading volume soared to $111 billion in March, compared to the $42.2 billion recorded in February. The remarkable performance in March reinforces the growing appeal of spot Bitcoin ETFs among investors.

BlackRock’s Bitcoin ETF, IBIT, continues to dominate the market share in trading volume, followed closely by Grayscale’s GBTC and Fidelity’s FBTC. Balchunas highlighted IBIT’s growing dominance, surpassing GBTC in market share, and likened it to the “GLD of Bitcoin.”

On April 1, cumulative spot Bitcoin ETFs experienced net outflows totaling $86 million, with Grayscale’s GBTC witnessing significant outflows of $302.6 million. Conversely, BlackRock’s IBIT ETF saw inflows of $165.9 million, while Fidelity’s FBTC recorded inflows of $44 million.

BlackRock and Fidelity’s spot Bitcoin ETFs amassed approximately $18 billion and $10 billion, respectively, in assets under management last month and have proven to be the most successful in terms of inflows.

However, Grayscale’s GBTC has faced substantial outflows, surpassing $15 billion in total outflows after experiencing over $300 million in outflows on April 1. GBTC’s assets under management have plummeted by 46% to $22 million, according to data from Coinglass.

Spot Bitcoin ETFs have significantly impacted the BTC markets, contributing to a surge to new all-time highs in March. Market participants anticipate a new market cycle fueled by the success of ETFs and the upcoming Bitcoin supply halving, which is less than 20 days away.

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Volatility in the cryptocurrency market has triggered liquidations surpassing $400 million in the past 24 hours. Bitcoin positions alone accounted for $130 million in liquidations, predominantly affecting long positions.

The recent volatility in the crypto market led to a surge in liquidations on centralized exchanges, coinciding with Bitcoin’s decline below the $67,000 mark, followed by a broader downturn across the crypto space.

According to data from CoinGlass, liquidations totaling over $427 million were recorded across various centralized crypto exchanges in the past day, with the majority, approximately $342 million, stemming from long positions.

Bitcoin bore the brunt of the liquidations, with over $130 million in liquidations within the same period, of which $90 million represented long positions.

Liquidations occur when a trader’s position is forcibly closed due to insufficient funds to cover losses, typically resulting from adverse market movements depleting initial margin or collateral.

The cascade of liquidations coincided with Bitcoin’s drop below $67,000, having traded above $71,000 the previous day. The largest cryptocurrency by market capitalization has seen a decrease of over 4.2% in the last 24 hours, currently hovering around $66,500.

Meanwhile, the GMCI 30 index, reflecting the top 30 cryptocurrencies, experienced a 6.8% decline to 143.40 over the past day, with the second-largest cryptocurrency, ether, plunging by 6.5% to $3,319.

Following the market downturn, analysts at crypto trading firm QCP Capital highlighted signals from the options market, indicating the liquidation spree led by large retail-heavy exchanges.

QCP analysts noted, “Once again, the options market provided an early signal to a sharp downside move, particularly the downside skew in risk reversals.” They further emphasized the rapidity of the downturn, attributing it to significant liquidations on retail-heavy platforms like Binance, resulting in flat perp funding rates after reaching as high as 77%.

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