Binance is one of the major cryptocurrency exchanges that has faced regulatory challenges in the past few weeks
Binance has issued a warning in the Netherlands
It seems that Binance is on the news every week now to get regulators’ attention. This week, the Dutch central bank De Nederlandsche Bank (DNB) warned citizens that Binance is operating in the country without a license. The central bank further added that Binance is currently operating in the Netherlands without properly complying with the Anti-Money Laundering and Terrorist Financing Act. Therefore, Dutch citizens have been advised not to use the cryptocurrency exchanges.
The cryptocurrency exchange has also been ordered by a UK court to track and freeze cryptocurrencies that have been stolen from one of the user accounts. Fetch.ai reportedly lost $ 2.6 million held in USDT, Binance Coin (BNB), Bitcoin (BTC), and others. Binance is also in legal trouble after some traders announced they are seeking compensation for losing millions of dollars during the major stock market failure in May. The outage lasted for hours with Binance users unable to conduct any trading activity, and some traders are now claiming that the event resulted in a loss of millions of dollars.
For its part, Binance has changed some of its operations. After Binance discontinued derivatives services for European and Hong Kong traders, it announced earlier this week that the restrictions had been extended to Australian traders as well. Binance stated that it is taking these steps to comply with local regulations in each country.
Regulators are turning their attention to the crypto market
The crypto market is now worth $ 2 trillion and has caught the attention of regulators around the world. Earlier this week, Spain’s National Securities Market Commission warned 12 companies, including Huobi and Bybit crypto exchanges, not to operate without a license. The regulator did not disclose whether there would be sanctions, but had warned its citizens not to trade on these platforms.
The Australian Securities and Investments Commission (ASIC) also warned its citizens against using unlicensed cryptocurrency trading platforms. According to ASIC, Australians using these services would not enjoy the investor protection available to users of the licensed platforms.
The US Securities and Exchange Commission has turned its attention to the cryptocurrency market in recent weeks. The SEC chairman told the Wall Street Journal in a recent interview that some decentralized financial platforms (DeFi) fall under the purview of the SEC because they offer securities. Gary Gensler has already asked the U.S. Congress to give the SEC more power and resources to expand its oversight of the cryptocurrency market to include exchanges, stablecoins, and DeFi.
In India, cryptocurrencies would soon be recognized as a tradable asset class if the new law is passed. The Indian government is working on a new bill to recognize cryptocurrencies as a tradable asset class. However, they are not considered to be legal tender. The move is intended to clarify the government’s stance on cryptocurrencies in India.
Wells Fargo is leading this week’s adoption effort
Wells Fargo finally started giving its wealthy customers access to cryptocurrencies earlier this week. The Bitcoin Fund was launched by NYDIG and FS Investments and is now available to Wells Fargo’s wealthy clients.
Dutch football club PSV Eindhoven set a record by becoming the first major European sports club to accept a full sponsorship deal in Bitcoin. PSV Eindhoven has teamed up with Anycoin Direct and the entire amount of sponsorship would be paid in the leading cryptocurrency. Leading chip maker Intel also bought Coinbase shares, indirectly entering the cryptocurrency market.
PBC continues its crackdown on crypto trading
The People’s Bank of China (PBC) branch in Shenzhen has remained true to its desire to eliminate cryptocurrency trading in China. The PBC has shut down 11 companies in the region for illegally trading cryptocurrencies. Apex bank examined 46 companies operating in the region and said it would step up efforts to combat crypto trading activity.
While most of the news in China about crypto is negative, the country continues to take blockchain technology warmly. Earlier this week, Alibaba launched its non-fungible token (NFT) marketplace. The NFT platform is backed by the Sichuan government and Alibaba intends to bring writers, artists, designers, game developers and musicians to the market.
Coinbase starts its Japanese exchange with MUFJ
The leading US crypto exchange Coinbase wants to make it big with its cryptocurrency exchange in Japan. Coinbase received regulatory approval in Japan earlier this year and has now teamed up with financial giant Mitsubishi UFJ to bring Coinbase Japan to market. As the largest bank in Japan, MUFJ will make it easy for Japanese customers to open a Coinbase account and start trading cryptocurrencies.
Also in Japan, Liquid, a regulated crypto exchange in the country, was hacked earlier this week and lost $ 94 million to the attackers. As a result, the crypto exchange suspended cryptocurrency deposits and withdrawals as the affected funds were on their hot wallet.
Galaxy Digitals wants to launch a Bitcoin futures ETF
The digital asset management company Galaxy Digitals has applied to the US SEC to introduce a Bitcoin futures ETF. In contrast to the other cryptocurrency ETFs, the Bitcoin Futures ETF seeks indirect exposure to Bitcoin. The US Securities and Exchange Commission recently said it was open to approval of an ETF that does not seek direct exposure to the spot price of a cryptocurrency. This is why asset management companies are now applying to launch a Bitcoin futures ETF.