Exchanges
Game Over For The American Traders On Bitmex Platform?

For all the people who are trading on BitMex out of the United States it is time to close your positions withdraw your BTC and make sure your funds are safe and are not going to get confiscated. As BitMex is most likely is going to get investigated by the CFTC (the commodity and Futures Trading Commission) because they offer perpetual swaps and perpetual futures for it’s USA based customers which forces BitMex to be regulated by the CFTC.
There are some rumors that USA accounts will be closed and funds could actually get confiscated, so once again make sure if you are from the United States or from any other country where BitMex says they don’t offer their services there that you are not trading there and you’re withdrawing your funds to stay safe.
It is probable the vast majority of Bitmex customers are from America and it is probable Bitmex is fully aware of it, yet most probably, BitMex will get more aggressive because of the CFTC investigation and will ban all VPN IPs and proxy servers it’s USA clients might be using to access it’s platform. And it might even ask all of it’s users to do KYC.
According to tokenanalyst.io, the BitMex’s Outflow volume has increased by 357% in the last 24 hours which means traders are withdrawing their funds.

BitMex and BTC Manipulation?
There are rumors that BitMEX is connected and closely working with whales to manipulate BTC and ETH unregulated markets. And BitMEX makes up to half of its revenue from liquidations.
The current market seems to be largely driven not by organic buying and selling, but by exchange driven manipulation of the spot market to exploit the current dynamics of leverage trading. Lately some users on Reddit started discussing if BitMex is trading against it’s clients to make profit.

BitMex Alternatives?
ByBit Would be a better alternative to BitMex. It is not as big as BitMex but apparently it’s not under investigations (yet). Yes, ByBit dose not allow users from the United States to trade on their platform but there is always ways around that.
There are other leverage trading platforms such as Deribit and Primexbt.
Will BitMex shutdown?
I personally dont think so. Desipte all of the market manipulation rumors, BitMex is still a crypto icon, it has its own research team, which is one of the most competent research teams out there who publish researches and crypto studies regularly. Recently some Bitcoin (BTC) developers received $60,000 donation from BitMex.
Bitcoin
Mercado Bitcoin Obtains Payment Provider License from Brazil’s Central Bank

Cryptocurrency exchange Mercado Bitcoin has received a payment provider license from Brazil’s central bank, allowing it to introduce its fintech solution called MB Pay. This milestone paves the way for expanded services and improved customer experiences within the Brazilian crypto market. Additionally, the country’s favorable regulatory environment has attracted global crypto firms, further bolstering Brazil’s position as a prominent player in the industry.
With the payment institution license, Mercado Bitcoin’s fintech offering, MB Pay, can now provide Brazilian users with a range of digital banking services using crypto assets held on the exchange. These services include digital fixed-income investments, staking, and various financial transactions. Furthermore, the exchange plans to launch a debit card that will offer users a convenient off-ramp for converting cryptocurrencies into traditional fiat currencies.
Mercado Bitcoin’s partnership with traditional local broker Guide Investimentos signifies the growing interest in the digital asset market in Brazil. The collaboration aims to leverage the expertise of both companies to tap into the country’s vibrant demand for digital solutions. While the fintech rollout had been delayed due to regulatory processes, Mercado Bitcoin has successfully navigated the approval stage, allowing it to accelerate its expansion plans.
Brazil’s large population of nearly 214 million and the increasing demand for digital solutions have made it an attractive market for cryptocurrency firms. Binance, one of the world’s largest crypto exchanges, has recognized Brazil as one of its top global markets. Its local partner, Latam Gateway, recently obtained a payment provider license in Brazil as well. Other notable exchanges, such as Crypto.com and Bitso, have also received payment provider licenses, further cementing Brazil’s position as a crypto-friendly nation.
Leading American exchange Coinbase has been actively expanding its operations in Brazil. Through partnerships with local payment providers, Coinbase now enables users to purchase cryptocurrencies, as well as deposit and withdraw funds in the local currency. This move demonstrates Coinbase’s commitment to catering to the Brazilian market and meeting the increasing demand for crypto services.
Brazil has not enacted any specific regulations or legislation against cryptocurrencies, making them legally accessible for buying and selling. While lawmakers have proposed cryptocurrency regulation in the past, the country’s approach has been favorable, allowing the industry to thrive and attract global players.
Bitcoin
SEC Files Lawsuit Against Coinbase for Alleged Market Rule Violations

In a widening crackdown on the cryptocurrency market, the Securities and Exchange Commission (SEC) has sued Coinbase, the largest crypto trading platform in the United States. The SEC accuses Coinbase of breaking the law by failing to register as a broker and allowing users to trade unregistered securities. This legal action comes on the heels of a similar lawsuit against Binance, the world’s largest crypto exchange, for mishandling funds. These moves reflect regulators’ efforts to bring greater accountability and regulation to the crypto industry.
Contents
SEC Claims Coinbase Prioritized Profits Over Compliance
The SEC’s lawsuit against Coinbase highlights the company’s alleged disregard for investor interests and compliance with securities market regulations. The filing states that Coinbase prioritized increasing profits and failed to adhere to the regulatory framework designed to protect investors and the integrity of the capital markets. Despite having knowledge of how digital asset marketing and sales should be governed under US laws, Coinbase allegedly violated these laws.
Coinbase’s Public Listing and Trading Volume: Coinbase made headlines in April 2021 when it went public, marking a significant milestone for mainstream acceptance of cryptocurrencies. The platform facilitated $830 billion worth of trades last year, serving nearly nine million users who made at least one trade per month.
SEC’s Allegations Against Coinbase
According to the SEC’s complaint filed in federal court in Manhattan, Coinbase made substantial profits from facilitating the sale of crypto assets while failing to provide investors with adequate protections. The SEC claims that Coinbase operated as an unregistered exchange, despite informing investors during its public listing that some products traded on the platform might be deemed securities by regulators. The lawsuit argues that Coinbase should have been subject to stricter oversight as a registered exchange.
Coinbase’s Position and Disagreement with the SEC
Coinbase has contended that its business model received implicit approval from the SEC when the agency greenlit its initial public offering. The company states its willingness to cooperate with the SEC but disagrees with the requirement for all digital assets on its platform to be registered securities, as it believes they should be subject to less stringent oversight.
SEC’s View on Crypto Products: The SEC’s actions against Coinbase align with its longstanding stance that most crypto products should be treated as securities, similar to stocks and bonds. Consequently, platforms providing trading services for crypto assets must register and operate under the same regulations as traditional exchanges and brokerages.
Final Thoughts
As the regulatory landscape evolves, the SEC’s lawsuits against major crypto companies like Coinbase and Binance aim to reshape the industry by subjecting digital asset exchanges to increased scrutiny and compliance measures. These actions reflect a broader effort to eliminate bad actors from the crypto sector and establish a more regulated and investor-protected market environment.
Bitcoin
SEC Files Lawsuit Against Binance: Impact on Crypto Market

In a significant development for the cryptocurrency world, the Securities and Exchanges Commission (SEC) has launched a lawsuit against Binance, the world’s largest cryptocurrency exchange. The allegations include operating an unregistered national securities exchange, broker-dealer, and clearing agency, as well as misusing user funds and offering unregistered securities. The news sparked panic selling, leading to a 7% drop in Bitcoin and a 4% drop in Ethereum.
Contents
SEC Lawsuit Shakes Binance and Crypto Market
Binance, the renowned crypto exchange, is now confronting a civil lawsuit filed by the US securities regulator. This legal action has caused a 5% decrease in the overall market cap of cryptocurrencies overnight. The lawsuit’s primary claim revolves around Binance operating as an unregistered national securities exchange, broker-dealer, and clearing agency. What makes this case profound is the SEC’s assertion that several crypto assets, including BNB, BUSD, SOL, ADA, and MATIC, should be classified as securities under US law. This classification has raised concerns among exchanges and other platforms, which might result in the delisting of these tokens due to fears of regulatory repercussions. Additionally, the SEC accuses Binance of offering and selling unregistered securities, focusing specifically on BUSD, BNB, and certain lending and staking programs. Furthermore, the SEC alleges that Binance engaged in the commingling of customer funds, involving billions of dollars, through entities controlled by the exchange’s CEO, Changpeng Zhao.
Commingling of Assets
According to the 136-page filing, Binance utilized accounts held by two entities controlled by Zhao, Merit Peak and Sigma Chain, to transfer tens of billions of dollars among Binance and its associated entities. The filing reveals that in 2021 alone, $145 million was transferred from BAM Trading to a Sigma Chain account, and an additional $45 million from BAM Trading’s Trust Company B account to the Sigma Chain account. Shockingly, $11 million from this account was used to purchase a yacht. Moreover, since the launch of Binance.US, Merit Peak’s US bank account allegedly received over $20 billion, including customer funds from both the US and global Binance platforms. Merit Peak then transferred the majority of these funds to Trust Company A for the purchase of BUSD. The transfer of customer funds to Merit Peak, an allegedly independent entity, could have placed these funds at risk of loss or theft without customer notification.
Misrepresenting Trading Controls
The lawsuit highlights Binance’s failure to implement the trading controls it claimed to have. The SEC alleges that the controls were either nonexistent or ineffective in monitoring and protecting against manipulative activities like wash trading and self-dealing. Evidence provided by the regulator shows that Sigma Chain was engaged in wash trading from September 2019 to June 2022, artificially inflating the trading volume on the Binance.US platform.
Binance Responds and Future Implications
In response to the lawsuit, Binance expressed disappointment with the SEC and affirmed its commitment to cooperating with regulators to seek clarity. The exchange denied allegations of fraud, market manipulation, and commingling of user funds through Zhao-controlled entities, reiterating that these entities were solely used to facilitate user purchases.
Key Takeaways for Investors
Investors should closely monitor the situation, as the SEC’s actions may lead to the delisting of specific tokens from exchanges like Uniswap. However, it is important to note that delisted assets can still be accessed through the underlying smart contracts, which are immutable and uncensorable.
On the other hand, the non-custodial infrastructure could witness improved liquidity as users and liquidity providers shift towards decentralized exchanges that allow them to retain ownership
of their assets. This trend began after the collapse of FTX in November and is expected to accelerate further. If altcoins are officially classified as securities, it is anticipated that the long tail of crypto assets may face tighter market conditions and reduced liquidity. Market makers like Jane Street and Jump Crypto might also scale back their operations in the United States until there is greater clarity regarding the regulatory classification of crypto assets.
Looking ahead, it is important to note that the SEC is not the only agency targeting Binance. The allegations from the Commodity Futures Trading Commission (CFTC) and the US Department of Justice (DOJ) should also be closely monitored, as they could have additional implications for the exchange.
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