Category Archives: Binance
Crypto.Com Expands In Europe While Binance Faces Hurdles – CoinGape
Crypto News: Crypto.Com, a leading crypto exchange on Friday announced receiving registration clarity in Spain. As per the release, the Bank of Spain granted the crypto exchange with Virtual Asset Service Provider (VASP) license. However, this development comes in when the biggest crypto exchange by trading volume, Binance is facing compliance hurdles in Europe.
Also Read: Ripple Highlights CBDC Adoption; XRP Price Drops 3%
In order to gain a VASP permit in Spain, Crypto.com went under review for compliance with Anti-Money laundering rules, AMLD, and other finance linked directives. The crypto exchange will now be able to provide its suite of products and services to Spains digital asset users.
Kris Marszalek, CEO of Crypto.com stated that receiving the Virtual Asset Service Provider permit in Spain shows their commitment towards compliance in working with global regulators.
Meanwhile, Crypto.com received a backlash over allegedly deploying internal teams to trade tokens for profit making. This has led to major concerns in the crypto industry. The report mentioned that the crypto exchanges executives asked their team to say that there is no such internal market marker type operation running. Read More Crypto News Here
Binance is facing registration complications in Europe. The biggest crypto exchange announced its exit from the Netherlands after failing to gain a VASP license from the Dutch regulator. It recently decided to deregister from Cyprus as a crypto asset service provider.
Binance holds anti-money laundering compliance in Spain, France, Italy, Spain, Sweden, Lithuania and Poland. However, the biggest crypto exchange and its US affiliate are facing legal troubles from the Securities and Exchange Commission (SEC) over its operations.
Coingape reported that Binance might be facing internal FUD as its key executives are allegedly taking an exit from European operations amid expansion plans.
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Crypto.Com Expands In Europe While Binance Faces Hurdles - CoinGape
Binance to exit the Netherlands after failing to obtain regulatory approval – CNBC
The Binance logo is displayed on a screen in San Anselmo, California, June 6, 2023.
Justin Sullivan | Getty Images
Cryptocurrency exchange Binance said it will leave the Netherlands after the company's application to register under the Dutch crypto authorization regime was rejected.
Referring to a virtual asset service provider, Binance on Friday said that it could no longer serve Dutch clients "as we have been unable to register as a VASP with the Dutch regulator."
The company didn't give a reason for why it was unable to receive a license from regulators.
Starting Friday, no new Binance users will be accepted onto the platform. From July 17, Binance said it will cease allowing users to buy tokens, trade, or make deposits, although its withdrawal function remains active.
Binance recommended that users withdraw their assets from their accounts.
The Dutch central bank, which is responsible for authorizing new virtual asset services providers, was not immediately available for comment.
Under the current regulatory regime, Binance can only get approval to operate in an EU country by registering under its money laundering prevention rules.
The firm has so far received such approvals in France, Italy, Spain, Poland, Sweden and Lithuania. This is set to change once the EU approves its Markets in Crypto Assets (MiCA) regulation.
MiCA aims to harmonize crypto regulation across the bloc and to prevent bad actors from harming consumers, particularly in the wake of the shock bankruptcy of FTX in November.
Once MiCA comes into force, crypto firms with registration in one EU country will be able to then use that to offer their services across other member states.
Binance said it remains "committed to working collaboratively with regulators around the world and are additionally focused on getting our business ready to be fully MiCA compliant."
"Existing Dutch resident users are being sent an email with comprehensive information about what this means for their accounts and any assets they currently have on the Binance platform, alongside any steps they will need to take," a Binance spokesperson told CNBC.
"While Binance is disappointed that this has become necessary, it will continue to engage productively and transparently with Dutch regulators."
The latest blow to the crypto giant follows a tumultuous few months for the broader cryptocurrency industry. Last week, the U.S. Securities and Exchange Commission sued Binance and CEO Changpeng Zhao, alleging that they engaged in the unregistered offer and sale of securities and commingled investor funds with their own.
WATCH: How a $60 billion crypto collapse got regulators worried
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Binance to exit the Netherlands after failing to obtain regulatory approval - CNBC
SEC and Binance.US strike a temporary agreement on asset access – Cointelegraph
Binance, Binance.US, and the United States Securities and Exchange Commission (SEC) reportedly agreed on Friday, June 16, to temporarily limit access to customer funds exclusively to Binance.US employees.
According to reports, the proposed agreement, pending approval from the overseeing federal judge, outlines measures for Binance.US to prevent any access by Binance officials to private keys of wallets, hardware wallets, or root access to Binance.USs Amazon Web Services tools. Additionally, the U.S.-based crypto trading platform will disclose comprehensive information on business expenses, including estimated costs, in the upcoming weeks.
The agreement has emerged as a direct response to a motion filed by the SEC seeking to freeze the entirety of Binance.USs assets during ongoing legal proceedings. The regulatory body expressed apprehension that without a granted temporary restraining order, there might be a risk of funds being transferred offshore or crucial records being deliberately destroyed.
However, Binance.USs legal representatives strongly opposed the notion, contending that imposing a complete freeze on all assets would essentially be equivalent to administering an excessively severe death penalty upon the company.
During a hearing earlier in the week, U.S. district court judge Amy Berman Jackson advised the involved parties that it would be more advantageous to reach an agreement on a proposed stipulation rather than relying on the court to formulate a restraining order. The judge emphasized that a temporary restraining order carries a limited duration of two weeks, which might prove inadequate for a comprehensive hearing. This is particularly true considering the substantial volume of submitted exhibits, amounting to over 4,000 pages.
Related: Binance under investigation in France since February 2022: Report
The proposed agreement includes additional provisions, such as the creation of new crypto wallets by Binance.US, which will be inaccessible to employees of other Binance entities. Furthermore, Binance.US commits to providing additional information to the SEC and agrees to an accelerated discovery schedule. Notably, U.S.-based customers will retain the ability to withdraw funds throughout this period.
If accepted, the proposed agreement will partially address the SECs concerns while the broader lawsuit progresses. The SEC recently sued Binance and Binance.US for trading unregistered securities, and alleged commingling of funds and poor practices. However, the proposed agreement does not encompass the broader lawsuit.
Magazine: Binance humiliated, HK needs 100K crypto workers, Chinas AI unicorn
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SEC and Binance.US strike a temporary agreement on asset access - Cointelegraph
Binance to quit Netherlands after failing to register – Reuters
June 16 (Reuters) - Binance, the largest cryptocurrency exchange, said on Friday that it was leaving the Dutch market because it had been unable to meet registration requirements to operate as a virtual asset service provider.
It is the latest in a string of setbacks for Binance including the June 5 decision by the U.S. Securities and Exchange Commission (SEC) to charge the company with evading securities laws. Binance disputes the SEC charges.
A spokesperson for Binance, which had been operating in the Netherlands without permission from regulators, said that the company had tried "many alternative avenues" to meet Dutch registration requirements.
"While Binance is disappointed that this has become necessary, it will continue to engage productively and transparently with Dutch regulators," they said.
The company said that starting July 17, trading in the Netherlands will be halted and existing Dutch users will only be able to withdraw assets from its platform.
The Dutch Central Bank (DNB), which registers financial service providers in the Netherlands said it had previously warned the company it was operating in the Netherlands without proper registration, and then fined it for the same reason in January.
Binance has also recently announced plans to leave Cyprus, Canada and Australia.
The company said on Friday however that it has received registration in other European Union countries, including France, Italy, Spain, Poland, Sweden and Lithuania, and will continue to operate there.
Reporting by Lavanya Ahire in Bengaluru and Toby Sterling in Amsterdam; Editing by Nivedita Bhattacharjee, Dhanya Ann Thoppil, Elaine Hardcastle
Our Standards: The Thomson Reuters Trust Principles.
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Binance to quit Netherlands after failing to register - Reuters
Binance to quit the Netherlands and faces investigation in France – The Guardian
Binance
Crypto exchange confirms failure to obtain Dutch licence and French inquiry as problems mount in US too
Fri 16 Jun 2023 12.28 EDT
Binance has suffered setbacks in two European markets after it announced plans to quit the Netherlands and came under investigation by French prosecutors.
The worlds largest cryptocurrency exchange said it was leaving the Dutch market after it failed to obtain a licence from the countrys central bank.
A spokesperson for the company said: Binance has been in a comprehensive registration application process as a virtual asset service provider (Vasp) with the Dutch regulator Unfortunately, this has not resulted in a Vasp registration in the Netherlands at this time.
Binance said that from 17 July, Dutch residents would only be able to withdraw their assets from the platform and further trading or deposits would not be possible. It advised users in the Netherlands to withdraw funds from their accounts.
In France, Le Monde newspaper reported that prosecutors were investigating Binance because of its anti-money laundering procedures and the fact that it advertised its services in the country before it was registered with the financial markets regulator. Binance was registered with Frances Financial Markets Authority in May 2022.
A Binance spokesperson confirmed that the company had been visited by French authorities last week.
We had an on-site visit last week by the relevant authorities. Binance, as always, was fully collaborative and we met our obligations accordingly. We continue to work closely with regulators and law enforcement agencies on all ongoing compliance requirements to uphold high standards, said the spokesperson.
Binance is under pressure from regulators in the US and is being sued by the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission after allegations of trading in crypto assets and derivatives without the appropriate regulatory approval.
Separately, the companys US platform, Binance.US, which is owned by its chief executive, Changpeng Zhao, is in talks with the SEC to avoid a total asset freeze. The company has warned that its operations will grind to a halt if a US judge grants the regulators request for an asset freezing order.
Binances closest rival, Coinbase, is also being sued by the SEC, which accuses it of operating an illegal exchange.
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Binance to quit the Netherlands and faces investigation in France - The Guardian
Binance Reaches Deal With Government to Avert U.S. Shutdown – The New York Times
The Securities and Exchange Commission reached a deal with Binance late Friday that would allow the worlds largest cryptocurrency exchange to keep operating in the United States and safeguard customer assets as the company battles a government lawsuit.
After filing fraud charges against Binance on June 5, the S.E.C. moved to freeze the firms U.S. assets in a move that the exchanges lawyers said would put it out of business in the United States.
But in a court filing on Friday, the S.E.C. said that the two sides had reached a compromise after several days of court-ordered mediation. On Saturday morning, Judge Amy Berman Jackson, who is overseeing the case in federal court in Washington, signed off on the deal.
Under the agreement, funds belonging to customers of Binance.US, an affiliate of the companys larger offshore exchange, would go into special digital repositories accessible only to the U.S. exchange and not to Binances international operation, or its founder, Changpeng Zhao. The deal stipulates that Binance.US can transfer company assets solely to make payments for expenses or to satisfy obligations incurred in the ordinary course of business.
Binance said on Saturday, Although we maintain that the S.E.C.s request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms.
The S.E.C.s director of enforcement, Gurbir Grewal, said in a statement on Saturday, We ensured that U.S. customers will be able to withdraw their assets from the platform while we work to resolve the alleged underlying misconduct.
The dispute over Binance's assets was part of a high-stakes legal battle that could determine the future of the crypto industry in the United States.
In recent months, the S.E.C. has embarked on an aggressive industry crackdown, suing Binance as well as its largest U.S. rival, the crypto exchange Coinbase. With the regulatory pressure intensifying, some crypto companies have vowed to fight in court, while others are exploring options outside the United States, decamping to countries with more lenient regulations.
The agreement to safeguard customer assets in the United States would resolve the first of what could be many legal skirmishes to come. The S.E.C., in a sweeping civil fraud lawsuit, charged Binance and Mr. Zhao with mishandling customers deposits, lying to regulators and allowing market manipulation to proliferate on the exchange.
In court filings, the S.E.C. said an asset freeze was necessary to ensure that Binance did not endanger user funds or seek to move money abroad. But the company said the S.E.C.s proposal was overly punitive and would prevent the firm from paying employees and vendors, causing its operations to quickly grind to a halt.
Binance was also sued earlier this year by the Commodity Futures Trading Commission, and Mr. Zhao is under investigation by federal prosecutors. The company has argued that the S.E.C. is being unreasonable in going after the business and its founder. Four major law firms are representing Binance and Mr. Zhao, better known as C.Z., in the litigation in Washington.
At a court hearing in Washington on Tuesday, Judge Jackson expressed some skepticism over the S.E.C.s strategy of using enforcement actions to impose regulatory oversight on the crypto world. She called the approach inefficient and cumbersome and it is one reason she urged the parties to negotiate a deal on safeguarding customer assets in the United States.
But Judge Jackson also gave short shrift to Binances argument that is was surprised by the aggressiveness of the S.E.C.
According to court filings, the S.E.C. has been investigating Binance since 2020. Some of the surprise expressed in the pleadings rang a little hollow, she told Binances lawyers on Tuesday.
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Binance Reaches Deal With Government to Avert U.S. Shutdown - The New York Times
Binance Launches Bitcoin Transaction Accelerator and Teases Layer-2 Solution – CryptoPotato
Binance is also preparing a BNB Chain layer-2 scaling solution to improve network transaction speeds and costs.
Separately, the firm announced on June 15 that Binance Pool has launched a Bitcoin Transaction Accelerator.
The new solution will allow users to confirm their transactions on the Bitcoin network quicker regardless of any potential network congestion issues, it noted.
Binance Pool is the exchanges service platform dedicated to improving the income of BTC miners.
The Bitcoin network has struggled under demand for block space recently amid the BRC-20 memecoin minting and ordinal inscriptions craze.
In May, regular users suffered from high transaction fees and a backlog of unconfirmed transactions in the Bitcoin mempool.
The new transaction accelerator will only be available for verified Binance Pool users.
Also on June 15, BNB Chain posted a short video teasing a new layer-2 solution. It said the new offering would be coming soon on June 19, but no further details were provided.
Some in the crypto community suggested that BNB Chain will emulate Polygon and launch a zkEVM for layer-2 chains.
A zero-knowledge Ethereum Virtual Machine is a fully compatible layer-2 solution that can seamlessly integrate with Ethereums smart contract ecosystem.
Binance is currently embroiled in a battle with the U.S. Securities and Exchange Commission, which sued the firm last week for violating securities laws, among other alleged misdemeanors.
The Binance native token BNB has had a roller-coaster ride since the company came under fire from American regulators.
The asset fell to an intraday low of $231 before recovering to trade at $236 at the time of writing. It has lost 22.6% since the SEC sued the firm on June 6.
BNB is currently down 65.5% from its all-time high of $686 on May 10, 2021. Despite the regulatory war on exchanges, BNB has fared much better than a lot of its brethren. Many of the altcoins, especially those related to DeFi, are down 90% from their peak prices.
Crypto markets, in general, remain flat on the day, with total capitalization at $1.07 trillion at the time of writing.
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Binance Launches Bitcoin Transaction Accelerator and Teases Layer-2 Solution - CryptoPotato
Abra Cease-and-Desist Reveals Ties to Binance and Prime Trust – Decrypt
Abra Kadabra! And it's gone.
Cryptocurrency investment company Abra has been issued an emergency cease and desist order by Texas securities regulators.
Authorities claim the cryptocurrency company, also known as Plutus Financial, and Chief Executive Officer Bill Barhydt have engaged in securities fraud. The enforcement order also states it offered investment products to unaccredited investors and that the company has been at least partially insolvent since March 31, 2023.
According to the Texas Securities State Board, on May 12, 2021, the Texas Enforcement Division issued a warning to Barhydt that Plutus Financials products appeared to constitute investment contracts or securities. The state set up a working group to further investigate the cryptocurrency company.
Abra has tried to argue against that characterization in its marketing.
Earn users take no investment-like risks when they deposit digital assets into Interest accounts, the company said last year. Rather, Earn users are simply moving or placing their existing assets into their Interest Accounts with the possibility of receiving interest, but notably, no risk of an investment-type loss.
Investigations reveal, however, that Plutus Financial has been touting their risk management strategy as compared to the now-defunct Voyager Digital and Celsius Network.
The order also states that despite a letter from CEO Bill Barhydt, claiming the company had no exposure to the FTX collapse, a subsidiary of Plutus Financial did have more than $12 million in assets on the platform run by Sam Bankman-Fried.
Abra also allegedly held or currently holds nearly $30 million on Babel Finance, $30 million (or more) on Genesis, and roughly $10 million on Three Arrows Capital (3AC). All three of those companies have been touched by bankruptcy in the past year.
Last, but certainly not least, Texas state authorities claim that Abra has been winding down their Earn product, and transferring assets to Trade accounts. The company has been secretly transferring these funds to Binance, according to authorities. As of February this year, balances for Abra on the platform are valued at roughly $118 million.
Despite the warning, the company continued to offer and sell investment productsthrough Abra Earn and Abra Boostuntil roughly October 3, 2022, regulators said.
Abra did not immediately reply to a request for comment from Decrypt.
Alongside offering and selling investment contracts that resemble securities, the working group also alleges that Abra made offers containing statements that are materially misleading or otherwise likely to deceive the public.
Abra states Prime Trust as their main custodian, which according to Texas authorities, does not operate with a money transmitter license in the state.
As of May 17, 2023, Abra claims $49 million in assets under management (AUM) on behalf of 229 Boost investors, of which 23 are Texas-based. The company also claims to hold $66 million on behalf of 9087 Earn investors, of which 827 reside in the lone star state.
This is not the first time federal charges have been brought against Abra. In July 2020, the SEC charged the company with selling security-based swaps without registration. Similarly, the CFTC charged the company with engaging in illegal off-exchange swaps with overseas customers, namely from the Philippines. The company paid $300,000 for these two penalties.
Texas state authorities have not set a date for an official hearing, but have allowed customers to withdraw funds from the platform, for the time being.
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Abra Cease-and-Desist Reveals Ties to Binance and Prime Trust - Decrypt
Binance.US reaches agreement with SEC to avoid full asset freeze – Morningstar
By Clive McKeef
Binance, SEC strike deal to move all U.S. customer funds, wallet keys back onshore
Binance.US and the Securities and Exchange Commission have reached an agreement that avoids a total asset freeze at the cryptocurrency exchange while the SEC's lawsuit against it proceeds.
Under the deal announced Saturday, Binance Holdings, BAM Management US, BAM Trading Services and founder Changpeng "CZ" Zhao will repatriate Binance.US customer assets to the U.S.
Binance.US customers are permitted to withdraw funds from the platform, according to the order filed by US judge Amy Berman Jackson in Washington federal court.
Read the court orderhere.
Read the SEC statement here.
In its June 5 lawsuit, the SEC had accused Binance and Zhao of mishandling customer funds, misleading investors and regulators, and breaking securities rules. It also asked for the repatriation of crypto belonging to US customers, a request made when there is a risk assets may be lost or concealed.
See: Bitcoin drops after SEC files 13 charges against Binance, founder Changpeng Zhao
The deal is in response to an SEC motion to freeze all of Binance.US's assets while the securities-related charges are being considered by the court. The SEC said it was concerned that funds could be moved offshore or records destroyed if it was not granted a temporary restraining order.
However, Judge Amy Berman Jackson, of the District Court for the District of Columbia, told the parties that it would be better for them to come to an agreement.
Binance, Binance.US and the SEC agreed to ensure that only Binance.US employees could access customer funds in the short term, according to the court documents. Under the agreement, which still needs a sign-off from the federal judge overseeing the case, Binance.US will take steps to make sure that no Binance Holdings officials have access to private keys for its various wallets, hardware wallets or root access to Binance.US's Amazon Web Services tools, the filings showed.
See also:Should you be worried if your crypto is in Binance.US or Coinbase?
Binance.US says customer assets are safe and argued that blocking the flow of all funds would cripple its business.
The U.S. affiliate of Binance halted dollar deposits last week and gave customers until June 13 to withdraw their dollar funds, after the SEC asked a court to freeze its assets.
Binance.US on Saturday said it was "pleased" that the disagreement over the SEC's request was resolved on mutually acceptable terms, though it maintains that the call for a freeze was "entirely unwarranted," Bloomberg reported
See also:BlackRock is applying for a spot bitcoin ETF. Here's why it matters to the crypto industry
-Clive McKeef
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
06-17-23 1215ET
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Binance.US reaches agreement with SEC to avoid full asset freeze - Morningstar
Binance’s Liquidity Woes, Buffett’s Prediction Throwback And A Sheriff’s Bitcoin Clash: Week’s Top Crypto – Benzinga
June 17, 2023 12:42 PM | 2 min read
The past week in the cryptocurrency sector has been a rollercoaster ride, with significant developments from major players and regulatory bodies.
From Binance.USs liquidity crisis to Warren Buffetts crypto predictions, a Texas sheriffs clash with a Bitcoin ATM operator, a North Carolina politicians investment in Shiba Inu, to JPMorgan Chases warning of an SEC tsunami, and a crypto traders investment strategy, the week has been packed with action. Lets delve into the details.
Binance.US Faces Liquidity Crunch Amidst the SEC lawsuit, Binance.US experienced a severe liquidity crunch, with market makers and traders leaving the cryptocurrency exchange at an alarming rate. The liquidity on Binance.US, measured through the aggregated market depth for 17 tokens, plunged nearly 80% in just one week. Read the full article here.
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Warren Buffetts Crypto Predictions Accuracy In a 2018 interview, Warren Buffett predicted a bad ending for cryptocurrencies. Despite the remarkable growth of Bitcoin (CRYPTO: BTC) since then, its value has seen significant fluctuations, lending some weight to Buffetts prediction. Read the full article here.
Texas Sheriff Seizes Cash from Bitcoin ATM A Texas sheriff seized cash from a Bitcoin ATM operated by Lux Vending (operating as Bitcoin Depot) after an 82-year-old woman was scammed into transferring $15,000 into Bitcoin. The ATM company is now in a court battle against the sheriff, arguing that the seizure contravened the US and Texas constitutions. Read the full article here.
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North Carolina Politician Invests in Shiba Inu Shannon Bray, a gubernatorial candidate in North Carolina, announced his plans to buy Dogecoin (CRYPTO: DOGE) Shiba Inu (CRYPTO: SHIB) with his next paycheck. Bray has expressed his support for Shiba Inu multiple times on social media, believing that the cryptocurrency has accumulated significant traction. Read the full article here.
JPMorgan Chase Warns of SEC Tsunami JPMorgan Chase warned of a tsunami of SEC lawsuits against crypto titans like Binance and Coinbase. The bank stressed the urgent need for US legislators to develop a comprehensive framework on how to regulate the crypto industries. Read the full article here.
Michael van de Poppes Top 4 Crypto Picks Crypto trader Michael van de Poppe revealed his top four coins to invest in before 2024. His picks include Bitcoin, Ethereum (CRYPTO: ETH), Polkadot (CRYPTO: DOT), and Chainlink (CRYPTO: LINK). Van de Poppe believes these cryptocurrencies have a strong future ahead. Read the full article here.
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