South Africa Directs Crypto Exchanges to Register or Face Sanctions

Starting November 2023, crypto exchanges in South Africa will be required to register with the country’s financial regulator or face sanctions. This comes after the Financial Sector Conduct Authority (FSCA) declared that no exchange will be allowed to operate without a license.

According to FSCA Commissioner Unathi Kamlana, the agency has already received 20 applications since opening for licenses a few weeks ago, with more expected before the deadline of Nov. 30. Crypto exchanges that fail to get licensed before the deadline will be fined or in extreme cases closed down.

“There is potentially serious harm to financial customers when using crypto products, and therefore it makes sense for us to introduce the regulatory framework,” Kamlana said in Pretoria. “Time will tell the effectiveness of our measures, and we will continue to work together with the industry to refine and make changes where and if necessary.”

By this instruction, South Africa will be the first African country to require that crypto exchanges register with a financial regulator to continue operating. This is in spite of the fact that African countries such as Nigeria top the list in terms of crypto trading volume, suggesting that Africa is leading in crypto adoption, but not in regulation.

African leaders however have shown a general dislike for cryptocurrencies, with Nigeria issuing a ban on the industry recently. This has not succeeded in reducing interest in digital assets though. In fact, the trading volume coming from the country has increased since then.

Countries Taking a Stand for Regulation

There has been a recent increase in the number of countries taking steps to regulate the cryptocurrency industry. While the US is the most known for this because of its brutal enforcement approach, many other countries are working on regulating the industry to ensure that their citizens are safe while investing in digital assets.

Just yesterday, Singapore enacted a law that forbids centralized crypto exchanges from offering crypto staking services to retail investors. In addition, Singapore now requires that all crypto exchanges save their customers’ assets with a trust to ensure they are safe.

A similar law was passed in Thailand the same day, forbidding staking services. The new regulation also requires that all crypto exchanges must have a risk declaration clearly stating that crypto investing is risky and investors can potentially lose all their investments. They have also been banned from any form of advertisements that suggest customers should participate in any staking activities whatsoever.

One thing these countries have in common is that they are open to crypto innovation, but are also ensuring that their citizens don’t get affected by the risks in the industry. This approach is different from the US which seems to be actively driving away innovation.

African Countries May Take a Cue

The steps taken by South Africa are quite timely, considering the increasing demand for crypto assets. Being the most developed African economy, other African countries may take a cue from this legislation to also regulate the crypto industry in their domains.

Hopefully, they will not be going after the industry to kill it as is the case with the securities and exchange commission (SEC) in the US. To be fair though, regulation is required to not just protect investors, but also ensure that crypto has a direction to grow in.

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Bitget Launches Streamlined Crypto Loans Product For All Customers

Top crypto exchange Bitget is launching a crypto loans product to cater to all kinds of customers. The crypto derivatives and copy trading platform announced the product will use a dual-coin approach to enhance crypto loans experience.

The approach allows users to stake an asset as collateral and borrow another crypto asset. The platform is coming as an alternative to traditional lending institutions which offer less than the required quality of service to clients, with cryptocurrency backing.

Bitget believes that crypto lending is gaining more traction due to its importance in this age, and the fact that it offers better services to clients than traditional institutions. According to reports, the overall digital lending sector surpassed $8.5 billion in 2022, with a compound annual growth rate of 20.5%.

“Users now have the opportunity to stake less-demanded coins, enabling them to obtain loans in more liquid assets for investment purposes,” Bitget Managing Director Gracy Chen said in the statement. “Our platform’s flexible borrowing and repayment mechanism is designed to cater to the needs of all users, accommodating their requests and ensuring convenience.”

How the platform works

Bitget says its loan product is streamlined to replicate a more familiar process found in traditional finance to ease user onboarding. How much a user can borrow is determined by the market value of the collateral staked and is automatically disbursed, with each loan issued at a specific interest rate.

After borrowing, users can make use of the loans as they wish, and can still adjust the collateral to fit their needs, as well as repay the loan on or before the due date. The platform promises an easy withdrawal and quick review process for applications to ensure that users get served promptly.

Bitget has embarked on some expansion projects lately. In March this year, the exchange acquired a controlling stake in the crypto wallet BitKeep, making it to now be known as Bitget wallet. It also announced a $100 million venture fund in April, which has come from different investors including Dragonfly Capital.

The crypto lending sector

Indeed, crypto lending is growing rapidly and many more people are getting comfortable with the service. However, it probably would be much more popular if not for the incidents in 2022.

The year was a tough one, during which centralized crypto lending platforms such as Celsius, BlockF, and Voyager Digital went bankrupt and folded up for various reasons. For Celsius, it was due to lack of liquidity as a result of “extreme market conditions”.

BlockFi went down after the SEC came after the platform because it did not register with the agency and placed its customers at risk. Voyager closed down due to high volatility in the crypto market and after Three Arrows Capital (3AC) defaulted on a loan Voyager issued running into hundreds of millions of dollars.

With such incidents affecting hundreds, maybe thousands of lending customers, the chances of Btiget’s new platform gaining rapid popularity may be affected. However, the exchange says its quick loan application review and instant withdrawal is sure to attract users to the platform.

The new platform’s dual-coin approach is also new, and users may be open to trying it out since it offers flexibility in lending, utilization, and repayment of loans, unlike other lending platforms.

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Crypto ATM Bitcoin Depot Goes Live on Nasdaq Exchange

Bitcoin Depot, North America’s largest crypto ATM provider, went live on Nasdaq Stock Exchange on Monday, July 3. The launching of Bitcoin Depot ranked as the first America Bitcoin ATM provider to be available on Nasdaq.

According to Nasdaq, Bitcoin Depot is listed under the ticker symbol BTM and is exchanging hands at $3.61. Over the last 24 hours, BTM trading volume reached $ 2089581.

Similarly, the Bitcoin Depot public warrant and common stock will be listed under BTMWW.

Bitcoin Depot Dubuts on Nasdaq Exchange

In a statement, the chief executive of Bitcoin Depot, Brandon Mintz, confirmed that the crypto ATM provider has a significant market share in North America. The executive stated that the firm would leverage its financial position to explore viable opportunities and support Bitcoin growth.

Despite the expansion efforts, Mintz confessed that Bitcoin Depot would focus on its core mission of offering safe and secure Bitcoin to the public.

As of this publication, the Atlanta-based Bitcoin ATM provider has approximately 6440 kiosks in North America. This has enabled the Bitcoin Depot team to cement its market position by offering users a platform to buy and sell crypto assets.

Additionally, the ATM provider supports the trader in buying and selling digital assets without opening an account with respective exchanges. Unlike other transactions done through an exchange, Bitcoin ATMs are friendly. For instance to complete a crypto transaction, the user only downloads a mobile application and provide critical information, such as phone numbers.

Recently, Bitcoin ATMs have gained proficiency following the fallout of major banks in the US. It was reported that despite banks failing to support crypto transfers amid the recent banking crisis, Bitcoin ATMs were used as an alternative method.

Factors Contributing to Growth of Bitcoin ATMs

Bitcoin Depot is competing with CoinFlip, Coinsource Inc., Paxful Inc., and Buy Bitcoin Worldwide to gain market dominance in North America. Based on Coin ATM Radar, Coin Cloud occupies an 11.8% market share while CoinFlip averages 11.2%.

In 2019 the US Internal Revenue Service (IRS) called for regulatory scrutiny of crypto ATMs. The IRS noted that the growing prevalence of Bitcoin ATMs has supported violating Know Your Customers (KYC) regulations and the bypassing Anti Money Laundering requirements.

The revenue regulators explained how Bitcoin ATMs had been used in conducting money laundering activities. The financial regulators observed that Bitcoin ATMs had been used by scammers who listed their fake products on eBay, Craigslist, and other online platforms.

The IRS report compelled the Financial Crime Enforcement Network (FinCEN) to enforce regulatory measures on crypto ATMs.

On June 30, the Pennsylvania fintech company GSR II Meteora signed a mergers and acquisition deal with Bitcoin Depot. The agreement allowed GSR to become a special-purpose acquisition company (SPAC) for the Bitcoin ATM provider.

In 2022 GSR and Bitcoin Depot estimated that the July 3 listing on Nasdaq would cost $885 million.

Editorial credit: ARTYOORAN / Shutterstock.com

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Axia review Trading CFDs with an award-winning broker in the GCC market

About Axia

Axia started its venture into the retail trading space with a goal of changing how things are done. With that clear goal set from the start, it was obvious that they’d need to focus on security features, a superior educational framework and outstanding support. Have they managed to do so in the time since their inception? Let’s find out. 

This broker is very popular today in the GCC area, already boasting several important industry awards. Moreover, traders working with Axia are backed by regulatory compliance, since the brand is authorized by the FSA, Seychelles, to operate. If you are searching for a broker to work with and none seems to qualify for you, maybe it’s time to learn about Axia.

Axia’s CFD Offering

Traders choosing to work with Axia enjoy asset diversity. The broker is currently covering all major markets, including currencies, stocks, indices and commodities. These remain highly liquid assets, generating consistent trading volumes every day.

Tight spreads and overall costs give traders an edge, since they can enter and exit the market multiple times, without worrying about charges. Axia offers access to flexible margin requirements (max 1:100 for Bronze accounts and 1:400 for Platinum/Diamond accounts).

Trading Software

AxiaTrade Web is the trading platform designed by the company to ensure smooth access to your trading account from any computer. It incorporates all the usual tools and other interesting features.

Making trading-related decisions that deliver results constantly is not an easy task, even when it comes to seasoned traders. This platform gives you a complete perspective on the markets, via sentiment analysis, trading signals, advanced indicators and customized trading alerts.

AxiaTrade Mobile is a second option with the broker, this time designed for smartphones and tablets. Daily signals, charting suite, risk management tools and real-time alerts make it a good choice when trading on the go.

Last, but not least, traders who fancy trading software designed by MetaQuotes will be pleased to find that MetaTrader 5 is also part of the platform offering.

Main Trading Features

Financial markets are now open to the broader public, and that’s why brokers are adjusting their offerings, so as to meet the expectations of various types of traders. With Axia, 5 different accounts are available for diversity, incorporating a generous list of trading benefits.

Starting with the most affordable one, Bronze is the entry point into the Axia ecosystem. Requiring a minimum deposit worth $500, it provides attractive spreads, up to 1:100 leverage, daily market analysis resources, and a 5% welcome bonus to those interested.

The Silver, Gold, Platinum and Diamond accounts add value via tighter spreads, higher leverage, up to 25% welcome, support from an account manager, trading signals, and more.

We should also mention the knowledge center, where users can read the latest crypto market news, find useful guides and learn more about how to conduct technical analysis.

Bottom Line

To sum up, Axia is an awarded CFD broker that gained its users’ trust thanks to several years of consistency and hard work. It benefits from a solid reputation, and we found that its trading conditions are truly attractive. Bottom line? We have plenty of reasons to believe that your market experience with Axia will be pleasant and informative.

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Winklevoss Twins Slams SEC for Exposing Investors to Toxic and Unregulated Products

Cameron Winklevoss, the co-founder of the American crypto exchange, was disheartened by the US securities and exchange commission’s (SEC) for failing to green light the Bitcoin exchange-traded fund (EFT) applications. He explained that the SEC regulatory action had pushed the investor to operate in a “toxic and unregulated” business environment when offering the crypto products.

On Sunday, July 2, the Winklevoss brother condemned the SEC for rejecting approval of Gemini’s Bitcoin EFT application submitted in 2013. They confessed that despite the effort made by the crypto exchange to comply with the Bitcoin EFT requirements, the SEC has regularly refused to approve the Gemini application.

Why is the SEC Against Bitcoin ETF?

The Winklevoss twin lamented that for around 10 years, the SEC has exposed the investors to “utter disaster” depriving them an opportunity to explore viable investments. The Gemini co-founders described the SEC as a failed securities regulatory agency. 

In the report, the Winklevoss twins confessed that the unwillingness of the SEC to approve Bitcoin ETF applications has exposed the US crypto entrepreneurs to engage in the buying and selling of “toxic products.”

Citing the case of the Grayscale Bitcoin Trust project (GBTC) that forced the investors to incur “astronomical fees” when trading Bitcoin at a discounted price. In a recent report, the YChart analysts observed that the discount for GBTC net assets was 30% more than the actual Bitcoin prices.

In 2022 financial experts from Morningstar observed that the GBTC annual fee was 2% more than the average Bitcoin charge, which amounted to 0.40%. 

Besides the issuance of “toxic products,” the co-founder of Gemini argued that the SEC’s reluctance to approve Bitcoin ETF projects had forced the investors to flee licensed and regulated trading platforms. He added that for years crypto investors has issued several proposals that the SEC required to adopt to safeguard the investor’s interests. He mentioned that the SEC should reconsider reviewing the current dismissal record to protect the investors.

Winklevoss requested the SEC to prioritize implementing strategies to protect the investors rather than exercising exceeding statutory power. He added that SEC should abandon its plans to become an economic life government gatekeeper. 

Will Bitcoin ETF Approval Support Compliance to Securities Regulations?

The Winklevoss comment on SEC regulatory action came at a time when other firms were seeking to acquire approval for Bitcoin ETF. The SEC’s delays in approving Bitcoin ETF have elicited mixed feelings among the best-performing crypto and tech firms such as WisdomTree, Invseco, ARK Invest, Valkyrie, and BlackRock. Recently it was reported that the SEC received multiple filings and ammendment on Bitcoin ETF applications.

In a statement, the SEC confirmed that most of the submitted filings on Bitcoin ETF were inadequate and lacked clarity. Therefore, the commission requested the responsible fund managers to revise their filing to clarify critical details. In addition, the SEC directed interested firms to resubmit their revised Bitcoin ETFs applications to the commission for regulatory reviewing and approval.

In January, the SEC sued Gemini for contravening the securities regulation. The SEC considered the crypto product Gemini’s Earn offered by the crypto exchange as an unregistered securities. Primarily Gemini Earn provided the retail client with a platform to lease their crypto to Genesis.

Subsequently, following the suspension of the Gemini Earn platform, the co-founder of the embattled crypto exchange filed a lawsuit against DCG and the chief executive Barry Silbert. Winklevoss brothers argued that Gemini’s parent company DCG and the executive failed to honor their $900 loan repayment plan issued to its subsidiary, Genesis. At court, Winklevoss lamented that DCG was risking defaulting on the loan repayment after missing to settle $630 million.

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Court Orders Kraken to Provide User Information To IRS

A US federal court has ordered top crypto exchange Kraken to turn over user information to the Internal Revenue Service (IRS). Kraken had earlier announced that it would settle charges brought against it by the United States Securities and Exchange Commission (SEC).

Following this, the IRS also filed a petition demanding that the exchange provides sensitive user data to the revenue collection agency. The order also follows the failure of Kraken to comply with previous “discussions” with the IRS.

“Despite discussions between the parties, Payward Ventures Inc. [one of the registered companies that make up Kraken] & Subsidiaries has failed to comply with the summons and has not produced the books, records, papers, and other data demanded in the summons. Payward Ventures Inc. & Subsidiaries’ failure to comply with the summons continues to this date,” the IRS said in a statement in a February petition.

The IRS was seeking information on user accounts that have carried out at least $20,000 worth of cryptocurrency trading in a single year between 2016 and 2020. Responding, Kraken said the agency was embarking on an “unjustified treasure hunt” and overstepping its bounds as was the case with Coinbase.

Court Turns Down Some IRS Requests

Although the court granted the petition of the IRS that Kraken should furnish the agency with user information, the court did not grant all of the requests it put forward. Among the requests rejected were the request to receive employment information and source of users’ wealth from the exchange. In his ruling, the judge said:

“The Court must determine whether the Government’s summons is narrowly tailored, that is, whether it is ‘no broader than necessary to achieve its purpose. The Court finds that to the extent the first three requests are aimed at establishing the identities of the Kraken account holders who fall within the Doe definition, the information sought in these requests is much broader than what is necessary to achieve that purpose for the vast majority of Doe users.”

As stated earlier, Kraken isn’t the first crypto exchange to have a misunderstanding with the IRS concerning user data. The agency had in 2018 petitioned a federal district high court requesting permission to seek information regarding virtual currency transactions from Coinbase.

Following the granting of the petition by the court, the IRS served a “John Doe” summons on Coinbase, seeking information about U.S. persons conducting convertible virtual currency transactions between between 2013 and 2015.

Like Kraken, Coinbase refused to comply, resulting in an enforcement action. It remains to be seen what step Kraken will take next, whether it will comply or face enforcement actions like Coinbase.

Crypto Turmoil in America

The IRS is bringing up the issue with Kraken at a time when the securities and exchange commission (SEC) is embarking on a major crypto crackdown. Kraken is one of the top crypto exchanges in the US and although it has not been affected by the SEC’s crackdown, it could be the next target with the upcoming IRS case.

Meanwhile, the SEC had earlier this year ordered the exchange to shut down its staking services in the US and pay a $30 million fine. Kraken did comply with the order, but that doesn’t rule out the possibility of the SEC bringing up fresh allegations in the future.

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Polygon Labs Proposes the Integration of Aggregator Bridge on Polygon 2.0

On June 29, the team behind the Polygon network submitted a proposal outlining the necessary architecture designs for its new project Polygon 2.0. The Polygon Labs team suggested that the new projects should constitute four different layers which are easily compatible. The four layers will be integrated into Ethereum’s decentralized blockchain to create a unique web of networks.

Polygon Labs Proposes New Architecture for Polygon 2.0

The developers suggested that if the proposal passes the validators’ test, the Polygon 2.0 will be featured on the aggregators to allow “near-instant and atomic,” transactions to be conducted on the bridge network. 

On June 12, the New York-based software development company launched Polygon 2.0, aiming at introducing a value layer on the internet where the user can easily share and exchange value. Mihailo Bjelic, the co-founder of Polygon Labs, had earlier proposed the integration of zero-knowledge proofs to improve the network’s security and maintain fair cost. The co-founder recommended that upgrading the Polygon Network was crucial to expedite the launching of version 2.0.

In a blog post, the Polygon Labs team provided further details on the features of Polygon 2.0. The post mentioned that the developers would utilize the existing staking layers to create the new upgrade.

Reflecting on the developer’s report, the Polygon team will integrate a validator manager centered on the Ethereum network and a chain manager to support the Polygon chain. The developers anticipate that in the future, the current Polygon chain will support the generation of Ethereum-powered chain managers.

Significance of Polygon Upgrades

Per the post, the developers stated that the integration of the staking layers would act as an interoperability layer positioned on multiple bridges attached to the Polygon chain. At the interoperability layer, the developers projects that all transactions will be validated through the support of the zero-knowledge proofs. 

Furthermore, the interoperability layer will consist of an aggregator that will transform the zero-knowledge proofs connected to the bridges into a single proof before the transaction is sent to the Ethereum network.The June 29 post also highlighted the advantages of the proposed upgrades.

The Polygon team mentioned that the proposed network upgrades aim to make the bridge transactions more seamless. Also, Polygon Labs aims to reduce Ethereum gas consumption used in validating proofs.

The Polygon team stated that the third layer of the Polygon 2.0 would be utilized as an execution layer connected to the Erigon network. In contrast, the final layer will involve launching a providing layer that will standardize most of the zero-proof process on the Polygon chains.

The blog post mentioned that the Polygon team would provide further details concerning the function of the four main layers in the coming days. The Polygon network’s latest update mirrors the expansion efforts made by zkSync Era in the attempt to shift to the multichain ecosystem.

Recently the layer-2 protocol zkSync Era announced plans to develop a new network comprising Hyperchains. The announcement mentioned that the zkSync Era team would launch the hyperchains on its testnet before the end of this year.

zkSync Era replicates the development made by Optimism and Coinbase Base in creating a super chain. A few days ago, the Optimism and Coinbase team launched a Bedrock upgrade to support the launching of the Superchain.

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