TronWeekly

Crypto World News

You are here: Home / Archives for Cryptocurrency Exchange

Cryptocurrency Exchange

Huobi co-founder to sell major stake worth over $1B?

by

Huobi’s co-founder Leon Li is apparently in negotiations to sell the majority of his shares in the company, which may be worth over $1 billion.

According to Bloomberg, Li reportedly held talks with a number of investors about selling a 60% share in the cryptocurrency company, which may be worth more than $1 billion and, according to some, as much as $3 billion.

Without going into specifics, a Huobi representative told Bloomberg that the co-founder is in talks to sell his controlling stake in the cryptocurrency exchange with a number of global juggernauts. Li reportedly told the company’s other investors about his choices at a shareholder meeting in July of this year. Li has given Hua Zhu the CEO responsibilities so he can concentrate on his health.

FTX and Sun to invest in Huobi?

According to the Bloomberg story, Justin Sun, the founder of Tron, and the global cryptocurrency exchange FTX were among the initial investors in discussions with the co-founder of Huobi. At the time of publication, Huobi had not responded to Cointelegraph’s requests for comments.

The purchase might be completed by the end of this month, according to the article. Once completed, it may rank among the largest transactions since the upheaval that began in the crypto market in May of this year.

For crypto goliaths like FTX, who have pledged $1 billion to the rescue of crypto exchanges battling to stay afloat due to significant losses and a lack of money, the market slump has also turned into an opportunity.

However, Sun took to Twitter to deny his involvment.

Screenshot 115
Source: Twitter

Huobi, which was established in 2013, now represents a daily trading volume of more than $1 billion. After BTCC was shut down, the cryptocurrency exchange rose in popularity and quickly became the main location for Chinese cryptocurrency traders. After Beijing declared all cryptocurrency exchanges illegal and forbade foreign exchanges from providing their services, the exchange eventually stopped serving Chinese users.

Since the Chinese government’s ban, Huobi has significantly increased its global presence by obtaining licences in Dubai and New Zealand, as well as one from the United States Financial Crimes Enforcement Network (FinCEN).

Cryptocurrency balance freeze of Vauld: Indian saga

by

The cryptocurrency accounts of Bengaluru-based Yellow Tune Technologies, a provider of financial services, have been blocked, according to a Friday announcement from India’s Directorate of Enforcement (ED). Flipvolt, the Indian division of Singapore’s Vauld, held some of the accounts. The action is related to an ongoing investigation into money laundering by instant loan companies with ties to China. The organisation has intervened in the cryptosphere in relation to that matter twice this week.

After determining that Yellow Tune was a shell company formed by two Chinese nationals using aliases, the financial watchdog declared it was freezing the company’s bank balances, payment gateway balances, and balances in the Flipvolt cryptocurrency exchange for a total of 3.7 billion rupees, or $46.4 million. Newspaper reports claim that the ED spent three days searching locations connected to Yellow Tunes.

Screenshot 114
Source: Press Release

The ED discovered 23 entities that had put money into Yellow Tune’s Flipvolt wallets before sending it elsewhere. The ED gave Flipvolt harsh criticism for how company handled the money. The agency further stated,

“Lax KYC [Know Your Customer] norms, loose regulatory control of allowing transfers to foreign wallets without asking any reason/declaration/KYC, non-recording of transactions on Blockchains to save costs etc, has ensured that Flipvolt is not able to give any account for the missing crypto assets. It has made no sincere efforts to trace these crypto assets.”

Cryptocurrency exchanges suspected by ED

The Enforcement Directorate (ED) of India is investigating cryptocurrency exchanges that may have handled transfers from companies under investigation to foreign wallets totaling more than 10 billion rupees, or nearly $130 million. ten cryptocurrency exchanges, at least, are apparently implicated.

However, local publications stated that WazirX, a cryptocurrency exchange, had its bank account suspended.

In a case involving rapid loans, it is claimed that organisations under investigation conducted transactions of up to 1 billion rupees ($1.3 million), or $1.3 million, in the names of individuals who had no relation to the money. These companies frequently had ties to China. Even though anti-money laundering and know your customer procedures indicated that the transactions were suspicious, neither enhanced due diligence nor suspicious transaction notifications were submitted to the ED.

Furthermore, WazirX bank accounts containing 647 million rupees ($8.1 million) were frozen by the ED. claiming that roughly 16 fintech companies under investigation for money laundering received assistance from the exchange.

BitMex exec pleads guilty in violation of Anti-Money Laundering Act

by

Along with three other BitMEX co-founders who have previously acknowledged breaking U.S. law, a senior employee of the cryptocurrency futures exchange has pleaded guilty in New York to failing to implement an anti-money-laundering program.

The United States Attorney for the Southern District of New York stated on Monday that a high-ranking employee at the offshore cryptocurrency derivatives exchange, Gregory Dwyer, entered a plea of guilty to breaking a federal anti-money laundering rule.

Dwyer admitted to breaking the Bank Secrecy Act by “failing to build, implement, and manage an anti-money laundering program” at BitMEX, where he formerly oversaw business development.

In a press release, U.S. Attorney Damian Williams stated,

“Today’s plea reflects that employees with management authority at cryptocurrency exchanges, no less than the founders of such exchanges, cannot willfully disregard their obligations under the Bank Secrecy Act.”

Lack of KYC aided BitMEX in criminal activity

The three co-founders of the company, Arthur Hayes, Benjamin Delo, and Samuel Reed, had previously been convicted guilty by judgments obtained by the U.S. Attorney. According to prosecutors, BitMEX’s absence of know-your-customer (KYC) procedures allowed the business to flourish as a hub for illegal conduct, including as money laundering and sanction evasion.

HYRBDMSNSBC7VI5CS47PBKHENI
Arthur Hayes, former CEO of BitMEX

Two years ago, BitMex was hit with civil and criminal accusations by the CFTC, DOJ, and FinCEN after the company allowed Americans to trade cryptocurrency futures on its platform without having a U.S. registration or using poor know-your-customer (KYC) procedures. Although the agencies ultimately reached a $100 million settlement with the exchange last summer, the accusations led to a shift in the exchange’s management.

The Commodity Futures Trading Commission (CFTC) and the Financial Crimes Enforcement Network (FinCEN) filed civil lawsuits against the four men as well as BitMEX and other business entities, which resulted in financial penalties. Hayes, Reed, and Delo each had to pay $10 million after BitMEX was compelled to pay the regulators $100 million.

Huobi subsidiary hoops US license for yet another way of cryptocurrency transactions

by

In order to offer cryptocurrency transactions, Huobi Technologies (1611.HK) said that its brokerage subsidiary, HBIT, has secured a license to carry out foreign exchange and money transfer activities in the U.S.

According to a statement released on Tuesday, HBIT has been granted a Money Services Business Registration License (MSB) by the U.S. Financial Crimes Enforcement Bureau (FinCEN).

According to the blog, this represents yet another step forward in Huobi Technology’s compliance process and lays a solid compliance foundation for the company to conduct future digital currency-related business in the United States, furthering the strategic objectives of globalization and compliance.

The laws governing digital money in European and American countries are rather clear, from the bill’s drafting to the closely guarded oversight. It has been stated that United States stands out among them because it encourages the orderly growth of digital assets and is imaginative in the speed of regulatory development.

With this license in hand, HT’s brokerage company is now authorized to operate as a money transmitter and a dealer in foreign exchange across the entire country.

The firm is anticipated to maintain the momentum of foreign business expansion in the future while continuing to offer users in the United States secure and legal digital asset services.

Huobi scores another one with its trust company

In December 2020, Huobi Trust Company, a division of Huobi Technology (HT) that provides trust services for digital assets, received a trust license from the Nevada Financial Institutions Division. The organization was permitted to provide custodial and compliance services in the US thanks to the license.

11787441700077568

Furthermore, it has been claimed that in the future, HT intends to “consolidate the momentum of international business expansion” and offer additional digital asset services to U.S. users.

The subsidiary of the Huobi Group, which manages the Huobi Exchange, called Huobi Tech is listed in Hong Kong. Despite not having a formal affiliation, the two businesses have Leon Li as a common stakeholder and use similar branding.

Huobi Group first made an entry into the US crypto market in 2018. Due to regulatory concerns, the firm had to exit the market. However, in February this year, the founder Du Jun said that the company planned to make yet another entrance into the US crypto market.

BestChange Cryptocurrency Exchange Truly The Best Change?

by

Traders who wish to buy cryptocurrencies should go to centralized cryptocurrency exchanges first. However, there are often cheaper options available. It’s not easy to identify a dependable and profitable cryptocurrency exchange offer among the numerous cryptocurrency exchange instruments.

Nonetheless, here’s a particular platform that claims to provide a way to exchange cryptocurrencies or buy them with fiat currency, as well as with Visa and MasterCard. Several hundred exchangers are hosted on the platform, and their prices are tracked in real time. Users can choose the finest offer and conduct exchange operations in a convenient manner in this method.

To further clarify, crypto exchanger aggregators keep tabs on the best deals from reputable cryptocurrency exchanges and enable consumers to compare them to get the best terms, lowest fees, and most convenient deposit/withdrawal options. In perspective, BestChange claims to combine a large number of trustworthy crypto and e-currency exchange businesses in order to offer users reasonable rates.

The software automatically aggregates the rates and presents them in a table. Users can choose the currency they wish to sell in the first column, then choose the digital currency they would like to buy in the second column. After making a decision, the user can examine various exchange rates on the right side of the screen.

Screenshot 36

Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ripple, Monero, Dash, Dogecoin, Zcash, Stellar, Tron, and Tether are among the 15 cryptocurrencies that BestChange now supports (both Omni and ERC-20). Users can spend cryptocurrency or fiat currencies such as the US dollar, euro, and pound, and choose from a variety of payment methods like credit cards, PayPal, wire transfers, Skrill, Neteller, WebMoney, and more.

Secure new cryptocurrency exchanger

When adding a new service to the monitor, BestChange performs a thorough investigation to ensure that only reliable exchangers are included. The monitor excludes services with poor ratings or a shady reputation. All of the exchange platform’s exchangers’ websites have a large volume of business.

Three simple steps to buy/sell your cryptocurrency/fiat currency

Making a deal on the crypto exchanges featured on BestChange takes only three steps, making it acceptable even for crypto rookies.

  • Select the currency
  • Select your preferred exchanger
  • Leave your feedback

Overall, BestChange is a really useful tool for people who utilize cryptocurrencies for payments and exchanges in several countries. The BestChange cryptocurrency platform will ensure that your crypto exchange experience is smooth and secure, with the best rates, along with an intuitive UX/UI, a high-performance withdrawal toolkit, and cheap costs.

Two early birds of Binance to have caught the worm

by

Binance Labs, the crypto exchange’s venture capital and incubator arm, has lost two prominent employees in recent weeks.

Bill Qian, the CEO of the crypto exchange, is expected to leave the company soon, according to numerous people familiar with the situation. According to her LinkedIn page, Nicole Zhang, the firm’s executive director, quit last month.

Qian’s move was verified by a representative of the exchange, who said:

“We don’t comment on people moves at Binance as a matter of policy. However, we can confirm that Bill is leaving Binance for personal reasons.”

Zhang’s resignation was also verified by another spokesman from the firm.

download 5

The crypto exchange employed both executives for more than two years. According to his LinkedIn page, Qian joined Binance Labs in March 2020 after spending more than five years as the head of investment at China’s JD Group.

As can be seen in the Binance-Forbes agreement announcement from February, Qian, a Chinese national, reportedly changed his surname to Chin. His prior LinkedIn profile with the surname Qian is no longer active. His Twitter account appears to have been erased as well.

Qian did not respond immediately to the media, Zhang, on the other hand, started as executive director of the crypto exchange in April 2020, according to her LinkedIn profile. According to her LinkedIn page, she is now a partner at fintech-focused venture capital firm Lingfeng Capital, where she manages the firm’s, Innovation Fund.

Binance’s first outside capital

Binance Labs raised its first fund with outside cash earlier this week, and Qian and Zhang’s exits coincide with that. DST Global Partners, Breyer Capital, and undisclosed institutional investors helped the company raise $500 million.

Binance Labs was established in 2018 and has been investing its own funds since then. To date, Axie Infinity creator Sky Mavis, move-to-earn business StepN, decentralised exchange aggregator 1inch, and blockchain audit firm CertiK have all received funding from the firm.

Furthermore, this firm manages mergers and acquisitions in addition to investing. The company has made more than a dozen acquisitions, including CoinMarketCap, an Indian crypto market, and DappReview, a decentralized application analytics platform.

It’s unknown who will take Qian’s and Zhang’s places. According to the company’s website, Ken Li and Peter Huo are now serving as directors of Binance Labs.

Indian Parliamentary Panel Unhappy Over Crypto Stakeholders’ Focus On “Advocacy”

by

Indian Finance Committee met key players in the crypto industry in Bengaluru on May 6. According to sources, the meeting did not turn fruitful as members of the finance body were apparently dissatisfied with the industry’s emphasis on “advocacy” instead of chalking out a plan to deal with risks like terrorism financing, for instance.

As per local sources, the parliamentary panel reportedly asked industry representatives to address its concerns on mitigating cross-border terrorism and money laundering. Besides that, it also requested members to present a model for regulation, and names of crypto-related firms.

In the meeting, the Committee stressed that the main focus should be on overall regulatory policy rather than individual industry concerns about new tax rules.

art rachen 2ipicd3G G8 unsplash
Indian Parliamentary Panel Unhappy Over Crypto Stakeholders' Focus On "Advocacy" 8

“They haven’t done anything since the last time we raised concerns. It’s the same old thing. That’s what we chided the industry for. We are sick and tired of hearing advocacy, advocacy. Because they have to address the challenges that the government is putting forth, right? Plans, mitigation measures, or some kind of thing. I think that would go a long way,” an official present at the meeting remarked.

Tougher days ahead for Indian crypto exchanges

Its been quite an eventful month for the Indian crypto market. Since the tax came into effect, trading on digital asset exchanges in India took a nosedive, and to top that banks refuse to transmit payments to exchanges due to regulatory uncertainty. 

In general, we have seen trading volumes [on Indian exchanges] come down by 30%-40% in the last two to three weeks,” Nischal Shetty, founder, and CEO of WazirX, India’s biggest cryptocurrency trading exchange told in an interview.

Amid the sharp fall in the numbers, WazirX hinted at relocating its operations overseas, especially in Dubai.

However, it is not only WazirX that is reported to move out of India. The stringent tax rules have driven crypto talent to flock to friendlier regimes, with a few hoping things to improve soon.

Previously TronWeekly reported on Indian Tax authorities exploring ways to bring income generated from crypto platforms operating outside India under the lens, sources familiar with the matter said.

Kraken receives UAE’s nod to operate as a Regulated Crypto Exchange

by

US-based crypto exchange Kraken has been granted a Financial Services Permission [FSP] license from the Abu Dhabi Global Market [ADGM] to operate as a regulated exchange platform in the United Arab Emirates [UAE].

For those unfamiliar, ADGM is a free zone for financial entities to do business in the UAE capital and provide services to users within the region. According to a press release, Kraken would cater to the needs of the Middle East and North Africa [MENA] region.

Kraken met all the required criteria from the Financial Services Regulatory Authority [FSRA] of ADGM to operate as a digital asset Multilateral Trading Facility [MTF] and Custodian in Abu Dhabi and the wider UAE, the release added.

Image

Elated over the development, Curtis Ting, Kraken’s managing director for Europe, the Middle East, and Africa, stated in an interview,

“We’re incredibly excited to be able to set up our operations right in the ADGM [Abu Dhabi Global Market] itself to operate a virtual asset platform that finally offers Dirham pairs for investors in the region.”

Kraken says this is a first-of-its-kind full-fledged financial license from ADGM which the trading platform aims to capitalize on by providing seamless access to cryptocurrencies through regulated funding, trading, and custodial services in the local currency dirhams.

In terms of why so many crypto firms are flocking to the region, Ronit Ghose, global head of fintech and digital at Citi cited “greater regulatory clarity” as the reason behind the influx of cryptocurrency businesses in Dubai and Abu Dhabi.

Kraken sees the UAE as one of the most lucrative markets

Kraken, founded in 2011, operates in over 60 nations, said the UAE launch marks its entry into an increasingly lucrative region. According to Chainalysis, the Middle East is one of the fastest-growing cryptocurrency markets in the world, making up 7% of global trading volumes.

The UAE transacts roughly $25 billion worth of cryptocurrency each year. It ranks third by volume in the region, behind Lebanon [about $26 billion] and Turkey [$132.4 billion] as per Chainalysis data studied between July 2020 and June 2021. 

With the latest approval, Kraken joins several exchanges setting up shop in the UAE amidst stricter rules and tighter regulations for crypto businesses worldwide.

Robinhood grabs other stars as it lets go of one

by

Christine Brown, the Robinhood executive in charge of the trading platform’s cryptocurrency ambitions, announced her departure in a tweet on Tuesday. Brown, who worked at the firm for five years, said she would stay in the crypto area, although she didn’t say what venture she would be engaged with. Brown said,

“I’m moving on to start something new. I joined RH when it was under 100 people—before we even offered a crypto product. Watching us grow through IPO and serving more than 22m users has been the greatest professional experience of my life.”

Furthermore, Robinhood Chief Operating Officer Gretchen Howard told local media,

“We’re so grateful to Christine for her contributions over the past five years – from leading our self-clearing initiative to scaling our Crypto team. We’re excited to follow her entrepreneurial journey going forward.”

Robinhood gets closer to its all-around-the-clock dream

Because RH Markets hasn’t been able to grow its user base in recent quarters, the company is doing the next best thing: providing existing consumers even more trading time. Customers will be able to purchase and sell shares from 7 a.m. until 8 p.m. Eastern time, according to the investing app.

Customers can trade from 9 a.m. to 6 p.m. today on Robinhood. They can now log on after work or other duties, or check their phones first thing in the morning, thanks to the extra hours.

Screenshot 25

The more clients can trade equities around the clock, the more the stock market will mirror the cryptocurrency market, where traders sometimes feel compelled to follow Asian markets after they go to bed, and even on weekends. Robinhood has also advocated for quick transaction settlement, which it claims will reduce client risk. It also has the potential to lower the company’s capital requirements.

After-hours trading was once thought to be too risky for typical investors, but in the last two decades, electronic trading and looser rules have made after-hours trading accessible to a far larger number of investors.

Retail traders should have the same access to services as institutional traders, according to RH, and this new functionality reflects that attitude. At the same time, it appears to contradict RH’s recent shift toward encouraging investors to use tried-and-true investment practices. Although Robinhood has been known for its speed, this may not be a competitive advantage.

Japan Tightens Forex Norms To Block Russia’s Crypto Escape Route

by

Japan is currently working to revise its foreign exchange law to prevent Russia from circumventing Western financial sanctions through cryptocurrency assets, top government officials announced on 28 March.

Hirokazu Matsuno who is the Chief Cabinet Secretary revealed in a press conference that a revised draft of the Foreign Exchange and Foreign Trade Act would be submitted in the ongoing parliament session.

Even the country’s premier Fumio Kishida voiced his support for the law to be amended in a Monday parliament session, where he stressed the need for coordinated moves with Western allies after attending last week’s Group of Seven summit in Belgium.

A finance ministry official told Reuters that discussions are currently in progress about the proposed amendment, but refused to divulge any further details.

Japan's new Chief of Cabinet Secretary Matsuno Hirokazu announces new cabinet members, in Tokyo

Attempting to provide some clarity, Saisuke Sakai, senior economist at Mizuho Research and Technologies said, The revision “presumably enables the government to apply the law to crypto-asset exchanges like banks and oblige them to scrutinize whether their clients are Russian sanction targets.”

Japan has joined its western allies in slapping sanctions

Following the invasion of Ukraine, the Japanese government has imposed asset-freeze sanctions on more than 100 Russian officials, oligarchs, banks, and other institutions. It has also banned high-tech exports and revoked the most-favored-nation trade status for Russia, which calls its actions in Ukraine a “special military operation”.

Japan, a key US ally has been working in tandem with other nations, calling for stricter action on Russia. After G7 raised concerns in a written statement a few weeks ago, Japan immediately urged its crypto exchanges to not process transactions involving digital-assets subject to asset-freeze sanctions against Russia and Belarus.

The East Asian trading platforms which are among the most tightly regulated exchanges in the world grabbed headlines recently when they complied to implement Financial Action Task Force [FATF]’s Travel Rule on April 1. The Travel Rule essentially requires platforms to get rid of anonymity in crypto transactions in an effort to fight money laundering.

As per Japan’s regulator, the Financial Services Agency, the travel rule will improve transparency on the individuals and entities crypto exchanges deal with, as the government seeks to prevent sanctions-busting efforts.