Category: Crypto News

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Binance Crypto News

Binance UK Crypto Trading Services as Normal, Amid Regulation Scare

The UK’s Financial Conduct Authority (FCA) has ordered Binance to stop regulated activities in the country while issuing a warning to its consumers about the platform and its trading products.

The financial watchdog said the exchange had until 30 June to stop promoting any advertising and financial promotions in the country, besides preserving all records related to its UK customers to notify the FCA by 2 July.

Business as Usual for Binance Trading Services

The exchange said this wouldn’t affect the services provided on its official website, so trading services are working as usual.

This includes no changes to Binance Australia services as mentioned directly to Crypto News.

As Binance Australia is a separate entity to the UK-based Binance Markets Limited (BML), the Binance Australia platform experience remains unchanged and users can continue enjoying the Binance Australia platform as normal.

At Binance Australia we’re aware of the new challenges faced by regulators working with new exchanges in this space. We work closely with Australian regulator, ASIC, and have been AUSTRAC-registered since before our launch last year to ensure we offer a service that users can trust.

We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space.

Sam Teoh – COO, Binance Australia

And the official Binance Twitter account has clarified the situation.

Some users on Twitter said this was just more FUD from the UK. It is not the first time Binance has been the subject of rumours regarding investigations or closing of operations in certain countries. In March, for example, Binance CEO Changpeng Zhao dismissed reports that the exchange was being investigated by the US Commodity Futures Trading Commission (CFTC).

The FCA Toughens Its Stance Against Exchanges

The FCA established a registration regime for crypto exchanges in 2020, stating that only approved companies could promote their products. However, it has approved only five companies since then.

That year, Binance bought an FCA-regulated company called EddieUK to launch BML (Binance Markets Limited). Via BML, it would offer its trading services using pounds and euros.

Although BML wasn’t using FCA’s regulatory permissions, the exchange did apply to the FCA to become a registered company, later pulling that application due to “intensive engagement” from the regulatory body.

The only way to offer crypto products to UK citizens is by becoming a registered company or having a pending application with the FCA – but since Binance pulled its application, it can no longer provide any services, including spot trading.

Global Pressure on Binance

Many regulatory bodies worldwide have warned Binance about its lacking authorisation to operate in their respective countries. As a result, Binance is now under scrutiny from several regulators across Europe and North America.

We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space.

Binance spokesperson, via Reuters

The latest warning Binance received was from Japan’s Financial Services Agency (FSA), stating the firm was operating in the country despite lacking the permissions to do so.

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Blockchain China Crypto News Cryptocurrencies Cryptocurrency Law

Censorship Freedom: Hong Kong Newspaper Launches on the Blockchain Using DeFi Protocols

Hong Kong activists are scurrying to preserve the back catalogue of pro-democracy newspaper the Apple Daily by uploading thousands of articles onto the censorship-proof blockchain platform ARWeave.

ARWeave is a decentralised file storage platform that breaks down a file into bits of information distributed over an open network of anonymous computers around the world. It describes itself as a “collectively owned hard drive that never forgets“.

After a 26-year run, the Apple Daily was forced to cease publication on June 23 after being targeted by a national security crackdown for breaching “vaguely formulated offences“ as China’s grip over free speech tightens.

Five Executives Arrested, Assets Frozen

Last week, 500 officers raided the newspaper’s headquarters, going through reporters’ notes and other journalistic material. Police froze assets of companies linked to the Apple Daily and arrested five executives.

Following the raid, the Apple Daily closed its website and erased all its social media platforms. In anticipation of popular demand for its final print run, the paper printed 1 million copies, more than 10 times its usual run.

Staff members of Apple Daily and its publisher Next Digital with the final edition at the paper’s headquarters in Hong Kong, June 24. REUTERS/Tyrone Siu

Democratic Leaders Condemn Closure of Apple Daily

The shutdown is the most serious blow yet to Hong Kong’s media freedoms. US President Joe Biden described it as “a sad day for media freedom in Hong Kong and around the world“, adding that the Apple Daily had been “a much-needed bastion of independent journalism in Hong Kong“.

British Foreign Secretary Dominic Raab asked China to respect the agreement signed in 1997 committing to continue allowing free media in Hong Kong after the colony’s reversion to China from British rule.

We certainly view what’s been happening with the closure of the Apple Daily and the arrest of journalists very, very seriously. We call on China to respect the terms that it freely signed up to and we think that’s a matter of trust as well as important for the people of Hong Kong.

Dominic Raab, British Foreign Secretary

Apple Daily owner Jimmy Lai has been behind bars since last December over unauthorised rallies during Hong Kong’s mass pro-democracy protests in 2019. Lai is facing three national security charges, including colluding with a foreign country, and is already serving several jail sentences.

As the fight for free speech in Hong Kong continues, blockchain technology is playing a vital role in advocating for human rights in China – providing a platform where repressed citizens can resist centralised power by accessing decentralised networks that are immune from state censorship and impossible to silence.

New Blockchain Platform LikeCoin Embraced

Programmer Kin Ko has been building a decentralised registry called LikeCoin, which helps internet users identify metadata (creator, date, time, location, version) of content through a unique code called an International Standard Content Number (ISCN), similar to a book’s distinctive International Standard Book Number (ISBN). Any changes made to content would be recorded and tracked through a digital fingerprint. LikeCoin has been embraced by pro-democracy activists such as Citizen News, already using the platform to catalogue its online images.

The open-source transparency and immortality of blockchain technology poses a grave threat to those in power in China, who are desperate to keep authoritarian control over the narrative of the country’s media.

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Blockchain Crypto News

Colombia’s Capital Releases $2.8 Billion Finance Plan for Blockchain-Based Companies

The city of Bogotá in Colombia has recently announced the “Hub Blockchain Bogotá” project, which aims to assist 100 companies in developing blockchain solutions.

Claudia Hernández, Mayor of Bogotá, Colombia’s capital city, announced that four financing programs totalling US$8.8 billion have been made available for companies to apply to, one of which is specifically aimed at companies using/developing blockchain technology.

The 100 companies selected by the Hub Blockchain Bogotá project will receive $2.8 billion in direct funding, logistical support, as well as the formation of a Blockchain academy to improve blockchain knowledge and skills.

Each venture, each company, will be able to receive from the Fund for Innovation, Technology and Creative Industries of Bogotá [FITIC] between $10 [million] and up to $50 million in capital to be able to take their idea forward, but also in support for strategic resources, whatever each entrepreneur needs, and also in markets.

Claudia López, Bogotá mayor

Official applications to FITIC were to be received from June 25 and the names of the winners announced on August 20.

Bogotá’s Push For a Smart City

The larger initiative, of which Hub Blockchain Bogotá is a part, is looking to help businesses and entrepreneurs through innovation and technology, keeping a broader focus on the environment and green technology to help solve problems faced by the city and businesses confronting the fourth industrial revolution.

We want to make Bogotá a benchmark in innovation and a smart city. With these four FITIC programs we will help those companies and entrepreneurs who are looking for new solutions to respond to current and future challenges, as well as those generated by the fourth industrial revolution.

Claudia López, Bogotá mayor

Colombia is Already Deep in Crypto

Colombia’s financial regulator launched a cryptocurrency sandbox earlier this year allowing banks to explore business models associated with handling crypto assets. The government is also working with the World Economic Forum (WEF) on a blockchain-based solution to track government contracts transparently. 

The country is emerging as one of the fastest-growing crypto markets in the South American region, second only to Venezuela, according to the Chainalysis 2020 global crypto adoption index. Colombia has ranked ninth in the index, only three places behind the US. Peer-to-peer marketplace LocalBitcoins reported that Colombia accounted for 11.3% of its global trading volume throughout the year, the third-largest market globally by trading volume. 

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Banking Crypto News

Tanzania’s Central Bank Says It’s Working on Adopting Cryptocurrencies

Tanzania’s central bank has made a u-turn on its decision to ban cryptocurrencies following orders from the East African country’s new president, Samia Suluhu Hassan.

Hassan, who came to power in March 2021 after the death of her predecessor, said the arrival of digital currencies in Tanzania was “inevitable” as it witnesses the emergence of blockchain technology.

Tanzania’s Central Bank

All Aboard the Crypto Train

Tanzania has become the latest country to adopt cryptocurrencies and blockchain technology after El Salvador decided to make Bitcoin legal tender earlier in June – which prompted other Latin American countries such as Paraguay and Panama to explore digital assets.

Many countries in the world have not accepted or started using these currencies. However, I would like to advise the central bank to start working on those issues. Just be prepared.

Tanzania President Samia Suluhu Hassan

In November 2019, Tanzania banned cryptocurrencies after its central bank refused to recognise them under local law, but now the bank seems to be working on the directives given, a spokesperson told Reuters.

Crypto Adoption Plans Accelerate Worldwide

Crypto adoption is on the rise, not only in Africa but worldwide. Nigeria is working to develop and implement its own CBDC by the end of the year, and Brazil, El Salvador, Paraguay, China and now Tanzania are just some of the countries accelerating their plans to embrace crypto and launch their own digital currencies.

We could soon see a handful of other countries and states racing to join the digital financial world. Even the European Central Bank has said countries that choose not to launch a CBDC could be “left out” when it comes to cross-border payments.

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Bitcoin Crypto News Market Analysis Stablecoins

Stablecoins Held on Exchanges Hit All-Time High – Are They Getting Ready?

Stablecoins Held on Exchanges Hit All-Time Highs, Are They Getting Ready?

The number of stablecoins on all crypto exchanges has reached a record peak, which signals a likelihood of incoming buying pressure on the market again.

Stablecoin Reserve on Exchanges. Source: CryptoQuant

All Exchange Stablecoin Reserve Exceeds $16 Billion

Following the on-chain data from CryptoQuant, there is currently more than US$16 billion worth of stablecoin held in all cryptocurrency exchanges. 

Although USDC supply has been growing faster than Tether (USDT) since the beginning of this year, there’s a much higher number of USDT in exchange reserves than USDC. Over US$7 billion worth of Tether (USDT) is held in crypto exchanges. 

USDT Reserve on Exchanges. Source: CryptoQuant

At the same time, over US$6 billion BUSD and US$2 billion USDC are held in exchanges’ reserves, according to CryptoQuant.

Stablecoin reserves often serve as an indication for some analysts and traders to position themselves for market pumps. Thus, this latest massive increase in stablecoin reserve suggests the bulls are prepping for a comeback if these coins are being stored for buys. 

Bitcoin Liquid Supply is Declining

Bitcoin has been trading below US$35,000 over the past few days due to the bearish state of the market. However, Bitcoin’s liquid supply has been dropping for quite some time, which serves as another indicator that BTC is likely to resume an upward curve, especially in the presence of demand. 

Bitcoin’s liquid supply simply refers to the availability of Bitcoin on exchanges for easy buying and selling. A decrease in Bitcoin liquidity indicates that people are starting to move their coins off exchanges. This can result in a scarcity of BTC, which is probably bullish provided the demand increases. 

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Australia Crypto News DeFi

Australia Urged to Launch CBDC ASAP as Digital Landscape is Changing Quickly

The rapidly changing global digital landscape means worldwide banks and regulatory bodies are looking to either regulate cryptocurrencies in their respective countries or launch their own CBDCs (Central Bank Digital Currencies).

Australia Under Pressure to Launch CBDC

While the RBA (Reserve Bank of Australia) is still researching CBDCs, other banks across the world are moving fast with their plans to launch digital currencies.

A week ago, the local government of the Chinese Xiong’an region announced it would pay its residents in digital Yuan, starting with construction workers.

The case for Australia is the back-and-forth of the RBA regarding a future CBDC, along with the unclear regulatory environment for cryptocurrencies. Unsurprisingly, many in the blockchain and crypto community in general have criticised Australian monetary authorities for not taking digital currencies seriously, something that seems to affect the banks as well.

We need to think, as a country, ‘what is crypto, how could it be used, and do you trade it?’ If it is something that should be traded safely, [how do] we make it safe? Those are the issues we need to think about, and quite quickly, because people are making a livelihood out of trading.

Ross McEwan, CEO, National Australia Bank

BIS Backing Stablecoins

The Bank of International Settlements (BIS) – dubbed the central bank for central banks – has shown support for the development of CBDCs in an attempt to modernise traditional finance and ensure “Big Tech” does not take control of money, according to a report from Reuters. 

This has rushed other banks to explore the technology of CBDCs as cryptocurrencies are booming and the world is gradually transitioning to digital payments. Further, at least 56 central banks and monetary authorities are exploring digital currencies.

Impact of Blockchain and DeFi on Traditional Finance

Australian venture capitalist Mark Carnegie recently spoke on the ABC’s The Business cryptocurrencies special about how DeFi and blockchain are changing the landscape for traditional finance.

Carnegie, who launched a crypto fund two months ago, said the idea behind cryptocurrencies is to bring on a decentralised financial world and not to focus solely on one crypto, referring to Bitcoin maximalists. When asked about the safety of DeFi, he said:

Look at the GFC [Global Financial Crisis of 2007]; in the end, the government had to step in to guarantee the world’s financial system. It’s safe because they decided to print money, it’s not safe because it’s safe, it’s because you’re essentially charged huge amounts of insurance embedded in all the fees you pay.

Mark Carnegie

Carnegie added that wholesale investors were coming into his fund looking for a mainstream fund manager willing to go into digital assets.

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Crime Crypto News Hackers Investing Scams

Founders of South African Crypto Investment Company Vanish with $3.6 Billion Worth of Bitcoin

Ameer and Raees Cajee, the brothers behind Cape Town-based crypto investment platform Africrypt, have disappeared under suspicious circumstances, together with 69,000 Bitcoins belonging to their clients.

Africrypt Investor Presentation 2020: Moneyweb

The Promise of Exceptional Returns and Where Things Started Going Wrong

The company was founded in 2013 and over the years had managed to secure a lot of support from investors, including some prominent local celebrities. Ostensibly, it was a well-run business that continued to grow on the back of “sophisticated algorithmic trading” that promised returns of 10% per day.

Things took a strange turn in April when investors were sent an email alleging a hack. The email noted that the platform would be shut down and investors’ accounts, wallets and nodes frozen. Most surprisingly, investors were requested not to contact law enforcement authorities as this would “slow the recovery process”.

Investors Appoint Investigators as Suspicion Grows

Shortly thereafter investors hired specialist legal practice Hanekom Attorneys who established that the company had moved 69,000 Bitcoins from their clients’ wallets through a crypto tumbler, making them virtually untraceable. Investigators also found that Africrypt employees had lost access to the back-end platforms seven days before the alleged hack.

We were immediately suspicious as the announcement implored investors not to take legal action.

Derek Hanekom, Hanekom Attorneys

Hanekom indicated it was unlikely that all funds came from South Africans, saying it looked more like an international money laundering operation. The South African Police has been assigned to the case and has contacted exchanges to ensure the funds aren’t liquidated. It is alleged that the Cajee brothers have since decamped to the UK, but that remains unclear.

Investors Cautioned: Do Your Own Research

The crypto space remains a very new market that is highly volatile and experimental, and investors are advised to always DYOR (do your own research).

Some recent scams we have seen:

Despite the discernible scams occurring, crypto remains an exciting prospect for the African continent with projects like Cardano developing blockchain solutions for decentralised identity and financial systems.

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Bitcoin Crypto News Investing

Mexican Billionaire Ricardo Salinas Puts US$1.5 Billion into Bitcoin

Ricardo B. Salinas is among the swarm of cyber hornets as one of the top high-profile advocates for Bitcoin, with laser eyes and #Bitcoin in his Twitter profile. Putting his money where his mouth is, he has invested 10% of his personal wealth into Bitcoin.

Worth an estimated US$15.2 billion, Salinas is the third-richest man in Mexico and among the top 200 richest people in the world. As founder and chairman of Grupo Salinas, a group of companies with interests in telecommunications, media, financial services and retail stores, he says the best thing to put your money into is Bitcoin.

#Bitcoin @RicardoBSalinas on Twitter

Last November, Salinas tweeted a video showing piles of paper money thrown into a bank’s bin because it is so worthless, due to hyperinflation affecting most countries south of the US border.

Translation: “To start with the #Bitcoin I share a video taken in a Latin country where banks throw money away (paper money is worth nothing) that is why it is always good to diversify our investment portfolio. This is inflationary expropriation!”

Mexican Peso Blows Out 1000% in 40 Years

Talking about inflation, Salinas stated that when he first started working in 1981, a US dollar was worth 20 pesos. Now, 40 years later, a dollar equates to 20,000 pesos. Bitcoin’s finite supply makes it a very attractive asset to invest in because it is deflationary.

Along with other billionaires such as the Winklevoss twins and Michael Saylor, Salinas is pushing the Gold 2.0 crusade. He believes that every investor should have a part of their portfolio in Bitcoin, likening its value to a modern form of gold.

Bitcoin a ‘Store of Value’ for Billionaire Investors

Billionaires looking for ways to protect their wealth against growing inflation are favouring Bitcoin as a store of value because they understand the many advantages it offers. Even well-respected old-school American institutional investors such as Warren Buffett can’t ignore Bitcoin any longer. Hedge fund manager Marc Lasry, for another, says he regrets not buying more Bitcoin.

Australian billionaire Alex Waislitz, touted as “Australia’s Warren Buffett”, has made tremendous profits of over 400% by investing in cryptocurrency companies.

Categories
Bitcoin Crypto News

‘The Bitcoin Fund’ ETF Launches on Dubai Stock Market

In a first for the Middle East, a crypto-based exchange-traded fund (EFT) has been listed on the Nasdaq Dubai exchange.

The Bitcoin EFT, trading under the ticker symbol QBTC, was met with strong demand when it debuted on the Nasdaq Dubai on Wednesday, June 23.

Interest in QBTC has been strong on the Nasdaq Dubai exchange

‘The Bitcoin Fund’ has roughly US$1.5 billion in assets under management and is dual-listed, having been established by Canadian digital asset management firm 3iQ on the Toronto Stock Exchange (TSX) in 2020. 

Expanding to the Middle East will capitalise on investor demand in the region and give people access to trade in their local time zone, according to 3iQ’s chairman and CEO Frederick Pye:

The idea is Bitcoin trades 24 hours a day … so our interest is to bring a regulated product to the Dubai market in their time hours.

Crypto EFTs Continue to Emerge Globally to Meet Demand

Canada was the first country to offer a crypto EFT on a major exchange in 2020 and now has multiple Bitcoin EFTs available on the Toronto Stock Exchange. 

Investment management firm Invesco – which holds US$1.5 trillion in assets – applied for two crypto-based EFTs in June 2021, joining a queue of companies waiting on the US Securities and Exchange Commission (SEC) to decide whether to give the EFTs the green light. 

Australia’s primary securities exchange the ASX is looking into the creation of a local EFT for cryptos to cater to demand, although the ASX has not specified a timeline for enacting such a mechanism.

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Binance Crime Crypto News

Binance Assists International Agencies in Taking Down $500M Ransomware Gang

Binance Assists International Agencies in Taking Down $500M Ransomware Gang

Leading crypto exchange Binance has been commended for playing an active role in taking down a ransomware group known as “FANCYCAT“ which had reportedly laundered about US$500 million in cryptocurrencies. 

Binance Teams with International Agencies

Binance closely collaborated with international law enforcement agencies including the Ukraine Cyber Police, the Korean National Police Agency’s Cyber Bureau and US authorities to halt the operations of the notorious cybercriminal ring. 

According to the announcement, FANCYCAT was responsible for several high-profile attacks, which involved Cl0p and Petya ransomware. It was also alleged to have laundered money from the dark web and conducted a high-risk exchange. 

How Binance Identified FANCYCAT

The exchange said it employed a two-pronged approach in this case, which eventually led to the apprehension of FANCYCAT. The first involved Binance’s anti-money laundering and analytics program, which alerted it to the suspicious activities of the ransomware gang.

Upon detection of the group’s activity, Binance then worked with analytics companies TRM Labs and Crystal (BitFury) to further investigate the on-chain activities of the group, which led to its identification. 

We are continuing to investigate the FANCYCAT criminal syndicate across multiple jurisdictions and the connections associated with other cyber attacks.

Binance announcement

Curbing Illicit Flows to Exchanges

Crypto News Australia has previously reported several cases of Ransomware attacks, where ransoms were demanded in either Bitcoin or any privacy coin. Some cybercriminals have also opted to launder ill-gotten funds in cryptocurrencies, due to their anonymous property. 

This is a thorn in the side for the growth of the crypto space. However, these exchanges can help minimise crypto laundering by stepping up AML measures, as Binance noted.