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Hong Kong’s regulatory heat forces crypto exchange FTX to move

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Hong Kong’s latest regulatory turnover has caused an array of platforms to flee from the region. Prominent cryptocurrency exchange, FTX was the latest to move away.

This year was all about regulations in the crypto-verse. Even though the crypto market started out to steer away from the harsh regulatory system put forth by centralized entities, the digital asset market succumbed to this regulative society. Just as the value of the market began surging, regulators across the globe started taking a keen interest in the industry. This further pushed several crypto platforms to shut shop or even turn into a centralized firm.

Hong Kong was one such region that began overseeing its crypto scene. With newly established regulations, crypto platforms in the region were obligated to abide by it or close shop. Crypto derivative platform, FTX took another route and decided to relocate from HK.

Hong Kong bids adieu to FTX

In a recent tweet, Colin Wu Chinese crypto-journalist revealed that FTX had shifted its headquarters from Hong Kong to Nassau in the Bahamas. The tweet read,

This moe was directly linked to the harsh regulatory climate in the region. Nassau which is the capital of the Bahamas is reportedly more crypto-friendly and the chances of FTX thriving in the Bahamas was higher.

Just a couple of days ago, the crypto exchange noted that its subsidiary, FTX Digital Markets had garnered a registration from the Securities and Exchange Commission of the region. Not only did this open the doors for new opportunities but it also paves the way for the crypto platform’s growth.

Ryan Salame was appointed as FTX Digital Markets’ CEO. Salame was previously serving as the Head of OTC at Alameda Research. Speaking about this shift and his new position, Salame said,

“I’m excited to plant the flag for FTX in The Bahamas. The relationship we have fostered with local regulators culminating with us being authorized under the framework offered through the DARE Act, gives me confidence that we’ll be able to work closely with regulators to make sure our offerings are compliant in multiple jurisdictions.”

Coinbase declares $1.5 billion bond sale to bolster its balance sheet

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Prominent cryptocurrency exchange, Coinbase made immense news after it managed to get itself listed on Nasdaq. With an array of developments, the exchange managed to stay relevant and on top. Once again, the crypto platform has made it to the headlines after revealing that it intends to raise a whopping $1.5 billion through a debt offering.

Throughout the year, Coinbase was seen making the rounds on Twitter following its tiff with its own customers. Despite this, the crypto platform continued to jump on the progress train. Even though several platforms have come under the scrutiny of regulators, Coinbase has retained itself as the largest cryptocurrency exchange in the United States.

The Securities and Exchange Commission [SEC] of the US did not spare anyone. Just last week, the SEC threatened the exchange. The SEC revealed that it wants to press legal charges over its latest crypto lending feature. While the fervency around this persists, the exchange went on to move to the next level.

Coinbase intends to raise money via a debt offering

In its most recent announcement, the platform stated that it hopes to raise capital in order to bolster its growth as well as its balance sheet. While this move would aid its general corporate purposes, it would also pose beneficial for future investments as well as acquisitions, products along technology of other platforms.

A private offering memorandum would be offered to qualified institutional buyers. The post further read,

“The notes and the related guarantee will only be offered and sold by means of a private offering memorandum to persons reasonably believed to be qualified institutional buyers. [..] Neither the notes nor the related guarantee have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States, except pursuant to an applicable exemption from such registration requirements.”

SEC chair claims crypto regulations should become more focussed

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The tussle between the cryptocurrency market and regulatory authorities has been ongoing since the creation of the ecosystem. With each passing year, digital assets took forward steps to enter the good books of most overwatch bodies. The United States Securities and Exchange [SEC] had been on top of crypto from the very start with its Chairman making new comments recently.

During a discussion with the Committee on Economic and Monetary Affairs, SEC chairman Gary Gensler shared his views on cryptocurrency regulations. Gensler spoke about the new avenues being opened up due to the effectiveness of financial technologies. He went on to say that the current digital revolution has the potential to become as game-changing as the internet in the ’90s.

According to the SEC honcho, the cryptocurrency world was a system that constantly chugs along 365 days a year. It was no wonder that the $2.1 trillion value market was being watched by a lot of interested parties. Pro-regulation discussion aside, Gensler also pointed out the drawbacks connected to the cryptoverse.

The SEC chair cited reports that touched on Bitcoin mining’s impact on the environment. After the revelation that Bitcoin mining generated more emissions than some countries, it was clear more needed to be done to curb the problems. This was not to say Bitcoin did not have its merits as it set the foundation for the growth of new Proof of Stake [PoS] blockchain. Gesler added that the privacy of the user was of top priority with bodies like the SEC looking out to reassure that fact.

During the meeting, the SEC official also gave his two cents on stablecoins and their impact on today’s economic climate. He pointed out that stablecoins were just a medium for people to sidestep some economic policies under other banners. Gesler asked for the committee to draw up more solid regulations that will make virtual asset transactions safer and more transparent.

Coinbase bags new chief marketing officer from Facebook

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Prominent cryptocurrency exchange, Coinbase has been under fire following its recent tiff with its users. This did not stop the exchange from moving forward and making progress. In a recent development, the exchange went on to hire its latest chief marketing officer.

Coinbase was called out by an array of users after their funds disappeared without an explanation. Despite this abrupt loss of funds the lack of customer support was what angered the users. The crypto exchange received a lot of backlash for this move. Moving on and focusing on the marketing side of the company, Coinbase decided to recruit Kate Rouch, who was previously working for Facebook.

The exchange welcomed Rouch and revealed her role in the potential development of the platform.

Coinbase recruits former Facebook exec

In its latest blog post, Emilie Choi, the platform’s chief operating officer, went on to welcome Rouch into the company and noted that she would be responsible for looking after the platform’s global brand. Along with this, product, as well as performance marketing, would be overseen by Rouch.

Rouch served Facebook for over 11 years. Now bidding adieu to her role as the global head of brand and product marketing at the social media platform, she was hired by one of the USA’s most prominent exchanges.

Speaking about her latest position, Rouch stated,

“I am so inspired by what I’ve learned about crypto, and the vast ecosystem it is helping to usher forth. At its core, Coinbase is about creating more economic freedom for people. It is a mission I feel passionately about. I can’t wait to get started helping to introduce millions more people to the benefits of crypto.”

Additionally, Rouch hopes to bring millions of more people into the cryptocurrency ecosystem. Several people from prominent firms have been venturing into the crypto space. This further points out the rate at which the crypto-verse is growing.

Crypto not a financial asset, suggests potential Korean financial regulator

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While the entire world has started to view crypto as a promising industry, the nominee for the Korean Financial Service Commission [FSC], Seung-beom Koh,  believed otherwise.

Cryptocurrencies caught the eye of many this year. The industry was seen trying to successfully cut off ties with the dark web as it garnered recognition in the real financial world. With people pouring into the industry, the government began laying its focus on the crypto market while trying to regulate it. Some governments were glad to welcome digital assets into the monetary sphere, however, a few others continued to express distress over these assets.

Seung-beom Koh, the potential chair of the Korean FSC, suggested that it would be challenging to recognize crypto as a financial asset.

Crypto fails to meet the standards of a financial asset?

Addressing a recent press meet, the FSC chair nominee pointed out that officials from organizations like the International Monetary Fund [IMF], G20, and a few others wouldn’t categorize crypto as a financial asset. Koh stated,

“I understand that the Group of 20, the International Monetary Fund, other international agencies and a considerable number of experts find it difficult to see virtual currencies as a financial asset, and think they could not function as a currency.”

The interest in digital assets has surged in almost every region. In Korea, young people have reportedly been pouring funds into the market with hopes of achieving high returns. This is in light of the increasing household credit which has been showing the Korean economy in a bad reflection.

Koh with his potential take-over as the FSC chair hopes to diminish this surge in household debt. Speaking about the same Koh added,

“The FSC will push ahead with existing anti-debt measures and come up with additional steps, if needed, by mobilizing all available policy means.”

Coinbase Users Continue Berating Exchange for Poor Support and Fund Mismanagement

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The growth of the digital asset world resulted in its peripheral industries picking up steam from all directions. Apart from the updates and developments, the cryptoverse has also been witness to news reports involving exchanges mishandling user funds. Coinbase came under fire for the same reason recently when multiple users raised complaints on Twitter.

Since 2016, Coinbase has had over 11,000 tickets raised against it. Coinbase chief executive Brian Armstrong mentioned the ongoing stalemate by claiming people don’t need to be scared of crypto like the old days. This however did not change the fact that thousands of new users have held the exchange culpable to massive fund losses.

In a report about Coinbase’s reaction towards the complaints, CNBC mentioned:

“Interviews with Coinbase customers around the country and a review of thousands of complaints reveal a pattern of account takeovers, where users see money suddenly vanish from their accounts, followed by poor customer service from Coinbase that made those users feel left hanging and angry.

Some reports from earlier this year touched on cases of funds mysteriously disappearing from their accounts. Just this March, a user sued Coinbase after losing over $100,000 from their cryptocurrency savings. This was one of several cases with some still unsolved.

Large groups of the cryptocurrency community pointed out that Coinbase only took up the complaints brought up by users with a significant number of followers. The Brian Armstrong-led exchange has reverted to some individual complaints. According to policy, Coinbase’s insurance policy does not cover theft from said accounts.

Robinhood to address volatility woes with the launch of this imminent feature

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Volatility has always been a major worry for the crypto market. Prominent trading platform, Robinhood wanted people to stop riding the volatility wave and rather focus on reaping the benefits of the crypto-verse.

Robinhood elevated its presence in the crypto-verse this year. However, a small mistake of stopping its services amidst the crypto market’s volatile duration put the platform in a bad light. Despite garnering immense backlash for this, the platform managed to acquire significant gains during the first quarter of 2021. The platform certainly hasn’t lost interest in the crypto market as it was seen trying to address one of the major issues that the industry currently faces.

Several investors have been steering away from the crypto market citing high volatility. Officials from across the globe have been complaining about the same and fear that investors would endure huge losses. Therefore, Robinhood is reportedly working on a feature that protects users against the price volatility of cryptocurrencies.

Robinhood’s “price volatility protection” feature

According to Bloomberg, the trading firm will roll out the “price volatility protection,” feature allowing users to alter cryptocurrency orders based on the variation in the price. In addition to this, the platform would “sometimes skip your recurring orders or buy less than your chosen amount.” However, users would be alerted of the same before this function takes place.

The CEO of Robinhood, Vlad Tenev elaborated on this imminent feature and stated,

“We’ve been doing a lot of work behind the scenes to provide our crypto customers with the functionality that they’ve been asking for. We want to introduce new features safely, and there’s a lot of items we have to get right from the start.”

This latest feature would undoubtedly lure in an array of people into the market or at least those who have been sitting on the fence due to the volatile nature of the crypto-verse.

Mastercard’s new initiative to aid startups working with crypto and blockchain tech

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Several significant firms dived into the crypto-verse this year, and Mastercard was one of them. While an array of platforms maintained a low profile considering the volatile nature of the market, the payments giant went all in and is continuing to do so. Its latest announcement is enough proof of the same.

Back in February this year, Mastercard went on to announce its interest in crypto. The payments platform revealed that it would be taking a plunge into the crypto-verse, and stablecoins would get most of its attention. In its announcement, the platform stated, “We are here to enable customers, merchants, and businesses to move digital value — traditional or crypto — however, they want. It should be your choice, it’s your money.”

Further elevating its presence in the crypto industry, Mastercard advertised its recent initiative, Start Path, in its latest press release. With this program, the platform hopes to help and bring together startups that focus on crypto as well as blockchain tech.

Mastercard’s move to elevate its presence in the crypto market?

Along with seven companies including, Uphold, Taurus, STACS, Mintable, and several others, Mastercard would be diving deep into the crypto and blockchain startup biz. All of these companies are from different parts of the globe, like Singapore, the USA, Israel, and Switzerland.

Speaking about the same, Jess Turner, the executive vice president of New Digital Infrastructure and Fintech, said,

“Mastercard has been engaging with the digital currency ecosystem since 2015. As a leading technology player, we believe we can play a key role in digital assets, helping to shape the industry, and provide consumer protections and security. Part of our role is to forge the future of cryptocurrency, and we’re doing that by bridging mainstream financial principles with digital assets innovations.”

This initiative would allow startups to solve an array of challenges that the industry faces. The list includes tokenization, data accuracy, digital security, and seamless access between the traditional and digital economy. With each of the startups mentioned above specializing in specific fields, this initiative would address several market impediments.

Amazon is looking for someone to head the digital currency and blockchain product sector

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Amazon has been a constant visitor of the headlines, particularly after its founder Jeff Bezos blasted off into space. Apart from this, Amazon seemed to be making progress in the digital currency sector, and its latest job posting is a clear example of the same.

Digital currencies and blockchain technology witnessed massive growth in terms of popularity. While trying to steer towards digitalization, the world has started to adopt digital currencies as well as blockchain tech. Major firms were seen embracing this side of digitalization and Amazon jumped on the bandwagon.

In a recent job posting, Amazon revealed that it was looking for an experienced product leader to lead the blockchain, crypto, and the central bank digital currency [CBDC] sector of the e-commerce platform.

Amazon dives into digitalization

Applicants were required to traverse backward and keep in mind the needs of the customers as well as the partner. The lead would reportedly work towards developing the platform’s Digital Currency, which would include owning the vision and strategy of the product and designing the roadmap.

Elaborating on the job description, the e-commerce giant wrote,

“You will leverage your domain expertise in Blockchain, Distributed Ledger, Central Bank Digital Currencies and Cryptocurrency to develop the case for the capabilities which should be developed, drive overall vision and product strategy, and gain leadership buy-in and investment for new capabilities. You will work closely with teams across Amazon including AWS to develop the roadmap including the customer experience, technical strategy and capabilities as well as the launch strategy.”

While it wasn’t confirmed if the platform would be rolling out its own digital asset, its interest in the digital currency sector could significantly boost the industry.

Back when Facebook revealed its venture into the digital asset field, several speculated that Amazon would follow suit. However, this remains unclear.

Binance CEO Talks Compliance and Future of Crypto In Blog

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Binance and its workings came under massive scrutiny recently as financial regulators took it upon themselves to impose sanctions. To ensure its users of the safety of their holdings, Binance CEO Changpeng Zhao released a blog detailing current and future plans.

In the blog, CZ stated that the drastic adoption jump could be owed to the market realizing the potential of digital assets. Binance has added requirements for using the platform such as stricter insider trading policies, a Secured Asset Emergency Fund, and a firewall to separate out the listing team. Apart from this, Binance has invested in edtech resources such as Binance Academy.

The Binance blog added:
“We also protect our users through our work with law enforcement agencies such as the U.S. Internal Revenue Service (IRS), the UK South East Regional Organized Crime Unit, and many more to crack down on cybercrimes such as money laundering, terrorist financing and scams. In 2021, we have completed assisting 5,600 investigation requests already,100% more than 2020.”

Binance further boosted its international compliance team by a whopping 500 percent since 2020. This comes at a time when local governments were opposing Binance’s entry into foreign shores. CZ reiterated that the company would do everything in its power to comply with government mandates that allow smooth functioning.

Technology partnerships were a big arena for Binance with tie-ups including members such as CipherTrace. Binance also cleared multiple AML audits to further strengthen fund security. CZ’s letter was the first step in acknowledging the need for more transparent communication between crypto honchos and regulators. In Zhao’s words:

“Compliance is a journey – especially in new sectors like crypto. The industry still has a lot of uncertainty. We also recognize that with the growth comes more complexity.”