We’ve gathered the week’s most important crypto-industry news.
- Australian regulator accuses Kraken’s subsidiary Bit Trade Pty of failing to comply with margin-trading requirements.
- ByBit to suspend UK operations in October.
- CoinShares launches US-focused hedge-fund division.
- Bitbuy signs strategic partnership with Localсoin ATM network.
Australian regulator accuses Kraken’s subsidiary Bit Trade Pty of failing to comply with margin trading requirements
Australian Securities and Investments Commission (ASIC) filed a civil case against the Kraken-connected Bit Trade Pty for failures in the design and distribution of margin trading products.
ASIC explained that the company failed to identify the target market for the product and continued to offer it despite ASIC’s notice that it needed to be withdrawn in June 2022. From October 2021 to at least 1,160 customers used the product, incurring total losses of about 12.95 million AUD ($8.35 million), according to the document.
ASIC seeks a public comment from the firm, payment of a monetary penalty and injunctions preventing the product from being offered.
ByBit to suspend UK operations in October
ByBit will suspend UK operations next month in connection with the 8 October in-force new rules for the promotion of digital assets.
The rules require registration with FCA. ByBit is not listed in the regulator’s registry. The statement followed a week after assurances from the platform’s representatives that they intended to maintain a presence in the UK market in the long term.
This was preceded by a comment from the exchange’s CEO, Ben Zhou, who hinted that services for UK users could be terminated due to tighter regulation.
CoinShares launches US-focused hedge-fund division
The digital assets manager CoinShares launched a new hedge-fund division aimed at expanding its reach to US investors.
The initiative envisions CoinShares Capital, with a FINRA broker-dealer license, conducting marketing efforts to qualified market participants in support of CoinShares Hedge Fund Solutions strategies and products.
“The long-awaited return of volatility driven by interest rates is a terrific opportunity that we plan to capitalise on with our new fund products,” said Lewis Fellas, head of the division.
Bitbuy signs strategic partnership with Localcoin ATM network
Bitbuy, part of the WonderFi alliance in Canada, signed a strategic partnership with the Localcoin ATM network.
The latter, through the collaboration, will expand the range of cryptocurrencies offered and launch a wallet app. The company operates around 900 ATM, representing about a third of the Canadian market.
Earlier, WonderFi management said they aimed to build the largest regulated crypto platform in Canada.
Also on ForkLog:
- FTX sought the return of $157.3 million from staff at its Hong Kong subsidiary.
- Binance and Changpeng Zhao urged the SEC lawsuits be dismissed.
- Mt.Gox pushed back the compensation date by a year.
- Tether resumed lending in USDT.
- CoinEx gave an approximate timeline for resuming withdrawals.
- Bitmain is investing $54 million in Bitcoin miner Core Scientific.
- OpenSea’s valuation has fallen from $12 billion to $1.2 billion.
What to read this weekend?
Bloomberg reporters conducted an investigation that revealed the pivotal role played by the parents of FTX founder Sam Bankman-Fried (SBF) in building the business empire. ForkLog presents excerpts from the article:
ForkLog has also reviewed The New York Times materials related to SBF’s reflections on the development of FTX. They contain details of his life in the last months and offer insight into the former CEO’s worldview.