The former editor at Diar and head analyst at The Block, Larry Cermak, is in the crypto news lately after reporting that one of the leading crypto exchanges Bitfinex obtained a banking partner in the $133 billion banking giant from London, HSBC.
As Cermak said:
“Bitfinex is now banking with HSBC through a private account of Global Trading Solutions. Very good fit if you ask me. It’s also worth mentioning that all EUR, JPY and GBP deposits are paused but Bitfinex ‘expects the situation to normalize within a week.’”
Meanwhile, Bitfinex has experienced some of the most difficult challenges an exchange could face in wake of the clarity on cryptocurrency regulation as well as the challenging situation in Japan and South Korea. The exchange also has conflicts with Taiwanese banks, since when it moved out of the country and relocated to the Caribbean.
As Bloomberg then reported, the partnership with Noble Bank that followed for HSBC did not go well, as the bank filed for bankruptcy and quickly vanished. However, HSBC is a well-known company and finally the banking partner that Bitfinex deserves, according to many.
In the wake of the new partnership, the director of communications at Bitfinex stated:
“Bitfinex does not, and has never, commented on actual or potential business relationships and this is not subject to change now,”
However, what many speculate is the exchange obtaining the official banking services of HSBC through a strictly regulated channel.
SEC Shuts Down Two Crypto Startups For Illegal ICOs
“The orders impose $250,000 penalties against each company and include undertakings to compensate harmed investors who purchased tokens in the illegal offerings. The companies also will register their tokens as securities pursuant to the Securities Exchange Act of 1934 and file periodic reports with the Commission for at least one year. Airfox and Paragon consented to the orders without admitting or denying the findings.”The settlement also illustrates one non-fraud ICO case and the point 17 in the Paragon document illustrates a familiarity with token technicalities, reading:
“PRG tokens were distributed to purchasers on October 22, 2017, on the Ethereum blockchain using the ERC-20 protocol.”The Enforcement Co-Director at SEC, Steven Pelkin, also believes that the enforcement actions against Airfox and Paragon will help stimulate the registration of other US-based ICOs in advance of further non-fraud prosecution.
“By providing investors who purchased securities in these ICOs with the opportunity to be reimbursed and having the issuers register their tokens with the SEC, these orders provide a model for companies that have issued tokens in ICOs and seek to comply with the federal securities laws," he stated.
UK Research Shows That Private Blockchains And New EU Privacy Rules Might Go Well Together
“There is a risk that this legal uncertainty will have a chilling effect on innovation, at least in the EU and potentially more broadly. For example, if all nodes and miners of a platform were to be deemed joint controllers, they would have joint and several liability, with potential penalties under the GDPR.”However, blockchain operators could be treated like processors the same way the companies behind cloud technologies control the users’ data. Blockchain networks could store personal data externally to meet the rules of the privacy laws or allow nodes to delete the private key that has encrypted information. GDPR rules are really hard to comply with especially for crypto mining businesses which are why the researches urge the European Data Protection Board to create a guide of the protection law that will be clearer.
Thailand’s Deputy PM Calls For Enhancement Of Cryptocurrency Regulations
“The Revenue Department will waive value-added tax for people trading in cryptocurrencies on exchange markets approved by the Securities and Exchange Commission (SEC),” stated an excerpt of a report at the time.With this, the tax proposals of Thailand's Ministry of Finance also generated controversy over the fact that firms raising funds via ICOs would also be required to pay income tax on those funds.
$68 Million Worth Of Illegal ICOs Brought Down By The SEC Last Year
"Given the explosion of ICOs over the last year, we have tried to pursue cases that deliver broad messages and have the market impact beyond their own four corners.’’In the report also, the Division of Enforcement as a part of the SEC formed a new Cyber Unit that helped this agency focus on cyber-related misconduct. For this reason, the Commission managed to bring down more than 20 cases including those involving ICOs and the Division opened more than 200 cyber-related investigations some of which are still ongoing. Further, in the SEC report, we can read that:
"While many of these cases have involved allegations of fraud, the Division also has pursued enforcement actions to ensure compliance with the registration requirements of the federal securities laws. In the past year, the Division has opened dozens of investigations involving ICOs and digital assets, many of which were ongoing at the close of FY 2018."The Securities and Exchange Commission is now going after other crypto-related entities and startups that are unregistered or show up as unregistered brokers that facilitate token sales.
Join us on Facebook
- Where Does Bitcoin Cash (BCH) Stand The Day After The Fork?
- A New $4 Billion Drop Sees Bitcoin Cash – And The Entire Market – Falling
- SEC Shuts Down Two Crypto Startups For Illegal ICOs
- Q3 Report: Chinese Blockchain Company Xunlei Reaches $45.3 Million In Revenue
- Financial Analyst Gary Shilling: Bitcoin Is Some Kind Of A Grand Ponzi Scheme
UPCOMING EVENTS RECOMMEND BY DC FORECASTS
wed05dec9:30 am5:30 pmDigital Asset Investment ForumExploring the Emerging Asset Class.9:30 am - 5:30 pm The St. Regis Washington, D.C, 923 16th and K Streets, N.W., Washington, District Of Columbia 20006 USA
Altcoin News5 days ago
Australian Exchange Co-Founder: ‘Stablecoins Are A Game Changer’
Blockchain Archive2 days ago
ICO Promotion Services | Advertise your ICO | Promo for ICO
Blockchain News3 days ago
Bank Of America Secures A Patent For Crypto Aggregation Systems
Altcoin News5 days ago
CFTC With A Fine Of $1.1 Million To Crypto Fraudster
Blockchain News4 days ago
Iran Gets Removed From SWIFT, Considers Switching To Crypto As Planned
Blockchain Archive4 days ago
Blockchain Conferences Marketing | Advertise Cryptocurrency Events
Blockchain News5 days ago
The City Of Graz Opens A Cancer Research Laboratory That Will Use Smart Contracts On The Blockchain
Analysis4 days ago
Bitcoin Falls To $6,300, Recording Two Sell Candles On Its Daily Chart