Crypto Exchange Platforms – The cryptocurrency market is continuously evolving. More and more investors are looking for new ways to buy Litecoin and participate in the ecosystem. And ever since the release of Bitcoin more than a decade ago, cryptocurrency exchanges have played a vital role in this market.
They provide convenient methods of purchasing crypto, as well as methods for speculating on their value. Without crypto exchanges, cryptocurrencies might have remained as a niche asset, available only to a select few.
Consequently, any crypto enthusiast should be aware of the latest news pieces that impact the most important cryptocurrency exchanges in the world. For this reason, we collected 5 of the top headlines regarding crypto exchange platforms. Keep on reading for a comprehensive summary of each one in this article.
Binance’s regulatory woes
Binance is the most popular cryptocurrency exchange in the world. It handles over $30 billion of trading volume daily and offers hundreds of cryptocurrency pairs available for trade. More importantly in this narrative, the exchange offers crypto purchases and trading in 50+ different fiat currencies.
Because of this fiat coverage, Binance has become the go-to crypto platform in many countries. However, this global coverage has also brought increased scrutiny from regulating bodies globally.
Earlier this year, the Thai government issued a criminal complaint against Binance, stating the operation of a non-licensed security business. The Dutch government also found it breaching AML regulations and the US SEC is looking closely at its activities as well.
Recently, the Singaporean government has requested that Binance ceases to offer its services in this country for non-compliance with local payment rules.
Coinbase mistakenly informs 125.000 users that their account has been hacked
Coinbase is the second-biggest crypto exchange in the world. However, in contrast to Binance, its user base is mainly situated in the US, with a small part spread out in the EU, UK, and Australia. This company is the first crypto exchange to be traded openly on the stock market (NASDAQ).
At the end of august 2021, an internal error in the system caused the exchange to send a warning to 125.000 users that their 2FA credentials were changed. This message was an error, as no security breach had impacted any accounts in the userbase.
Nevertheless, hundreds of customers tried to contact Coinbase’s support to get to the end of the matter. This overloaded the helpdesk system and caused a bit of a panic in the userbase. As a result, a number of users sold all their crypto holdings, just to be sure they wouldn’t fall into the hands of hackers.
FTX exchange makes a deal to acquire derivatives platform LedgerX
FTX is a rising cryptocurrency exchange created and founded by billionaire Sam Bankman-Fried. It has been gaining in popularity as one of the most promising crypto platforms that would comply with US regulations when requested. The cryptocurrency price of the FTT token native to the exchange has skyrocketed lately, making 170% gains in 2 months.
Recently, FTX acquired LedgerX, a derivatives exchange and clearinghouse regulated by the Commodity Futures Trading Commission (CFTC). This goes toward the goal of FTX to be completely compliant with US regulative bodies, something other exchanges like Binance failed to do.
Thailand SEC to revoke Huobi’s exchange license
Once again, regulation strikes in the crypto exchange platform ecosystem. Huobi, a Seychelles-based crypto exchange with offices in Hong Kong, South Korea, and Japan is experiencing scrutiny from regulators in Thailand.
The Thailand Securities and Exchange Commission (SEC) is seeking to revoke Huobis’s license to provide services within its borders. The reason behind this license withdrawal is the exchange’s failure to address security issues plaguing its platform for several months.
Because of this, the exchange must cease all activity and return funds to investors within three months of the announcement.
Gemini and Brave browser collaboration to streamline BAT rewards
Gemini is a popular crypto exchange founded by the Winklevoss brothers, made famous through the movie “The Social Network”. More than just an exchange, Gemini is the custodian for the popular lending platform Blockfi.
In September 2021, Gemini partnered with Brave browser, the platform that rewards users with BAT tokens for watching advertisements. The update allows Brave users to seamlessly deposit their BAT rewards directly in their Gemini wallets.
More importantly, this allows BAT holders to use their tokens using Gemini Pay and spend them at merchants that participate in the payment network. They can also use their BAT in their savings account, earning 3.49% APY with their holdings.
We can conclude that the regulatory measures against cryptocurrency exchanges are becoming commonplace. Platforms that didn’t manage to comply with requirements are experiencing a backlash as the popularity of cryptocurrencies rises once again. Others, like FTX, are attempting to preemptively do the necessary steps to fulfill all the requirements and be able to offer services globally.