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Bitcoin Exchange BitMEX Under CFTC Investigation: Bloomberg Insiders

BitMEX in The Firing Line BitMEX, the leading Bitcoin derivatives platform, is purportedly under investigation. Per a Bloomberg report released a number of hours ago, the Seychelles-based exchange, which also has a luxurious office in Hong Kong, the cryptocurrency platform is being investigated by the U.S. Commodity Futures Trading Commission (CFTC). The financial regulator, which presides over most Bitcoin-related vehicles, is reported by insider sources is looking into if BitMEX has been knowingly allowing American users to trade on its platform. This is presumably in response to the exchange’s sudden spike in volume that came alongside this bull market, with it processing over $1 trillion worth of volume in the past year. Both the CFTC and BitMEX were rather quiet on this whole purported situation. A spokesperson of the Bitcoin exchange told Bloomberg: HDR Global Trading Limited, owner of BitMEX, as a matter of company policy, does not comment on any media reports about inquiries or investigations by government agencies or regulators and we have no comment on this report. It is important to note that this rumored CFTC investigation may be unfounded. Arthur Hayes, the chief executive of the platform, has explained that it removes anyone found in violation of BitMEX’s terms of services, which includes a clause about the trading of its crypto derivatives in certain regions (including the U.S. and Quebec). Though, users can bypass these IP checks through virtual private networks, which have become somewhat of a given/no-brainer for tech-savvy Bitcoin investors. Nouriel Roubini Vindicated This Bloomberg report has somewhat vindicated Nouriel “Dr. Doom” Roubini, the famous Great Recession soothsayer that has turned his sights on the cryptocurrency industry. As detailed by this outlet, the economist and Stern School at New York University professor has been bashing Hayes and his platform for a while now, calling it a platform that takes money from “retail suckers”. In fact, Roubini even took to the stage, debating Hayes earlier this month about BitMEX’s practices and the future and validity of Bitcoin and the cryptocurrency space at large. During that spat, the economist bashed the exchange for being based in Seychelles and not complying by U.S. regulations. This seeming CFTC investigation, which comes alongside the U.K.’s Financial Conduct Authority proceedings to ban cryptocurrency derivative products entirely, is presumably been a sight for sore eyes for Roubini. Crimes probed by @CFTC are a fraction of sleaze going on in BitMEX: U.S. Regulator Probing Crypto Exchange BitMEX Over Client Trades. Trading platform known for 100x leverage futures contract. Probe comes as regulators ramp up scrutiny of crypto sectorhttps://t.co/X0JDU5Ge46— Nouriel Roubini (@Nouriel) July 19, 2019 U.S. Regulators Don’t Like Bitcoin, and BitMEX By Extension Even if this rumor is false, one thing is for certain: U.S. regulators and lawmakers are starting to crack down on this industry. Just look to the cases laid out by The Block’s Larry Cermak below, which involves some of the biggest cryptocurrency exchanges in the industry. This is getting quite serious. Let's summarize:– Both BitMEX and Bitfinex are now investigated for servicing U.S. customers– Bittrex and Poloniex started to geo-block tokens from the U.S.– Binance pulled crypto-to-crypto trading out of the U.S. completely— Larry Cermak (@lawmaster) July 19, 2019 These seem to be preemptive responses to an impending crackdown, which have been hinted at by President Donald Trump and Treasury Secretary Steven Mnuchin. Photo by Ben Rosett on Unsplash The post Bitcoin Exchange BitMEX Under CFTC Investigation: Bloomberg Insiders appeared first on Ethereum World News.
Ethereum World News

US Regulator to Probe BitMeX Cryptocurrency Exchange: Bloomberg

The US Commodity Futures Trading Commission is going to investigate cryptocurrency derivatives exchange BitMEX, according to sources cited by Bloomberg. The regulator would focus on whether or not BitMEX, a Seychelles-based firm, has been offering services to the American citizens. The exchange lets people make big bets on the cryptocurrencies with as much as 100-times margins. The CFTC considers cryptocurrencies like bitcoin as commodities, which brings companies like BitMEX – that offers futures and other crypto-based derivatives trading services – under its jurisdiction. Bloomberg reached BiMEX for further clarification and received the statement from the firm’s spokesperson as follows: “HDR Global Trading Limited, owner of BitMEX, as a matter of company policy, does not comment on any media reports about inquiries or investigations by government agencies or regulators and we have no comment on this report.” Americans Cannot Access BitMEX Until They Can The alleged investigation follows BitMEX’s removal from the North American markets. In 2018, Canadian regulator Autorité des marchés financiers (AMF) sent a letter to the crypto derivative firm over its unlicensed status in the region. But, according to BitMEX’s press representative Wachsman, the firm had started closing the accounts of all its US and Canada-based customers from as back as 2015. “BitMEX has banned all US traders since 2015, and has been proactively closing accounts since guidance was obtained by US regulators, in particular the Commodities and Futures Trading Commission (CFTC),” Wachsman’s Joe Coufal told the South China Morning Post. While Americans cannot access BitMEX through an internet-based protocol based out of the US, they can still use the cryptocurrency exchange using a virtual private network tool. Such software helps the users mask their original locations by providing internet protocol (IP) addresses of other countries. A company typically relies on databases which contain a list of fake IPs to detect whether or not their users are using proxies. “BitMEX has always retained the right to close any accounts and to liquidate any open positions were trading participants has given false representations as to their location or place of residence,” explained Coufal. Banning Users In November 2018, BitMEX banned the account of famous cryptocurrency analyst and trader Tony Vays. The exchange alleged that Vays, a US citizen, provided them fake identification details before liquidating his positions. In his response, the trader said BitMEX wrongfully closed his account since he is not an American. “Just got my BitMEXdotcom account terminated on suspicion of being a US Citizen,” Vays tweeted. “Anyone else finds the timing of this odd?” Just got my @BitMEXdotcom account terminated on suspicion of being a US Citizen. Anyone else find the timing of this odd?The 900+ affiliates that accounted for half my income r gone going forward.After #Unconfiscatable Conf expect prices on all services offered by me to rise. https://t.co/6bShmcdBEF — Tone Vays [#UnderstandBit] (@ToneVays) November 12, 2018 The CFTC’s investigation closely follows Treasury Secretary Steven Mnuchin’s warning of an aggressive crackdown on bitcoin firms operating in the US. Earlier this week, the White House staff called bitcoin “a national security threat.” US Regulator to Probe BitMeX Cryptocurrency Exchange: Bloomberg was last modified: July 19th, 2019 by Davit BabayanThe post US Regulator to Probe BitMeX Cryptocurrency Exchange: Bloomberg appeared first on NewsBTC.
NewsBTC

Crypto Exchange BitMEX Under CFTC Investigation Over US Users: BloombergCrypto Exchange BitMEX Under Investigation Over US Users: Bloomberg

The US Commodity Futures Trading Commission (CTFC) has launched an investigation against the cryptocurrency exchange BitMEX, Bloomberg reported today. Probe on US customers According to Bloomberg, BitMEX is not registered in the United States, and the CFTC is probing whether the Seychelles-based crypto exchange has broken the rules by giving access to US users to […] The post Crypto Exchange BitMEX Under CFTC Investigation Over US Users: Bloomberg appeared first on CCN Markets The US Commodity Futures Trading Commission (CTFC) has launched an investigation against the cryptocurrency exchange BitMEX.
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Fan tokens draw new users to crypto with the latest club addition, AS Roma

Blockchain is stepping further into the sports arena, as cryptocurrency company Socios partners with soccer team AS Roma to offer a fan token, according to a statement from the club.  The token will find its way to fans through the Socios app. There, it'll be tradeable against the Socios native token, $CHZ, currently listed on BitMax and KuCoin, as well as Binance DEX - Binance's decentralized exchange. The tokens are accessed on Socios.com, but housed on a separate permissioned side chain, where each club becomes a Node with Proof Of Authority (POA) from $CHZ. In order to access the club token through a Fan Token Offering, fans must first hold $CHZ. The move could open crypto to a wider user base, since the tokens allow fans to have a voice in their club. The tokens five supporters the right to vote on certain club decisions. They'll be set at a price of two euros, but fans can also earn them by interacting with AS Roma on the Socios app. Fans can also "hunt" tokens for free through the app's augmented-reality geo-location feature Token Hunt. However, AS Roma isn't the only club interacting with fans through crypto. Indeed, clubs from different leagues including Paris Saint-Germain, Juventus and West Ham United have all created fan tokens for supporters. Alexandre Dreyfus, chief executive & founder of Socios.com, said AS Roma's fan base along with other participating clubs draw hundreds of millions of users.
The Block Crypto

What does it take to be part of the next wave of Bitcoin Billionaires? Tim Draper answers

As crypto ecosystem consistently redefines its new peak in terms of adoption, fiat investors and new players are seeking opportunities to be a part of the next wave of Bitcoin Billionaires. One of the early birds, Tim Draper leads this space in terms of making sizable investments and returns in Bitcoin. Having complete faith in Bitcoin’s […] The post What does it take to be part of the next wave of Bitcoin Billionaires? Tim Draper answers appeared first on AMBCrypto.
AMBCrypto

Bitcoin Law Review - Blockstack's Reg A+, CFTC vs Bitmex, Gov't vs Libra/Crypto

https://ToneVays.com by @ToneVays https://twitter.com/ToneVays Topic 1: Reg A+ & Blockstack https://www.sec.gov/Archives/edgar/data/1719379/000110465919020748/a18-15736_1ex1a15addexhbd6.htm https://www.theblockcrypto.com/2019/07/12/blockstack-garners-reg-a-approval-but-that-doesnt-mean-crypto-icos-will-boom/ Leads into Topic 1a on Broker-Dealers & Custody https://twitter.com/philipliu/status/1149907881061302272?s=12 https://www.sec.gov/news/public-statement/joint-staff-statement-broker-dealer-custody-digital-asset-securities https://bitcoinmagazine.com/articles/op-ed-latest-finra-sec-security-token-custody-rules Topic 2: Government vs Libra/Crypto https://twitter.com/realDonaldTrump/status/1149472282584072192?s=09 https://www.cnbc.com/2019/07/18/first-on-cnbc-cnbc-transcript-treasury-secretary-steven-mnuchin-speaks-with-cnbcs-squawk-box-today.html https://www.cnbc.com/2019/07/18/mnuchin-says-us-will-ensure-bitcoin-doesnt-become-like-anonymous.html https://www.cnbc.com/2019/07/18/first-on-cnbc-cnbc-transcript-treasury-secretary-steven-mnuchin-speaks-with-cnbcs-squawk-box-today.html https://brianoflondon.me/2019/07/facebook-lied-about-the-cryptocurrency-industry-to-destroy-it/ https://www.youtube.com/watch?v=9-ZTkCNW0w8 https://www.cnbc.com/2019/07/16/i-like-bitcoin-says-house-gop-leader-mccarthy-hits-facebook-libra.html Topic 3: Crypto Exchanges https://www.bloomberg.com/news/articles/2019-07-19/u-s-regulator-probing-crypto-exchange-bitmex-over-client-trades https://twitter.com/notsofast/status/1151864421414838274?s=21 https://www.coindesk.com/ex-ceo-of-crypto-exchange-wex-arrested-in-italy https://www.coindesk.com/mt-gox-founder-hit-with-lawsuit-over-alleged-fraudulent-misrepresentation https://www.scribd.com/document/414569311/Steinmetz-Jones-v-s-McCaleb#from_embed https://www.thedailybeast.com/behind-the-biggest-bitcoin-heist-in-history-inside-the-implosion-of-mt-gox?ref=scroll Topic 3a - Update on Bitfinex vs NYAG https://ambcrypto.com/new-york-ags-court-filings-written-in-bad-faith-and-riddled-with-false-assertions-says-bitfinexs-rebuttal/ https://www.coindesk.com/bitfinex-ny-prosecutors-tether-850-million-allege https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=vIexA1b0spKOnK_PLUS_ZUGTJ3A==&system=prod https://breakermag.com/crypto-capital-is-the-common-thread-between-bitfinex-quadrigacx-and-other-troubled-exchanges/ https://decrypt.co/6824/crypto-capital-follow-up-article Topic 4: Crypto & Taxes (Time Permitting) https://www.carltonfields.com/insights/publications/2019/how-state-remote-sales-and-use-tax-statutes-may-im https://twitter.com/cryptotaxgirl/status/1148370522775797760?s=21 Topic 5: Other - Time Permitting https://www.journalofaccountancy.com/news/2019/jun/virtual-currency-not-fbar-reportable-201921479.html https://www.justice.gov/usao-sdny/pr/us-attorney-announces-arrest-and-money-laundering-charges-against-dark-web-narcotics https://cryptoslate.com/chinese-court-upholds-legal-bitcoin-ownership-btc-protected-china-property-law/ Closing Moment of Zen: https://twitter.com/Horsebox_1/status/1117955111219867648 Honorable Mention: https://www.sec.gov/corpfin/framework-investment-contract-analysis-digital-assets Please Support via Affiliate Codes: Unlimited Trading for $9 a Month at LVL: https://lvl.co/?r=kDpHhBmS Deribit to save 10% on Trading: https://www.deribit.com/reg-3221.4686 Buy/Sell Bitcoin at Paxful: https://paxful.com/?r=or4dNEDBBQX Trading View: http://tradingview.go2cloud.org/aff_c?offer_id=2&aff_id=4905&url_id=3 TorGuard VPN 50% off code & link = tone50: https://torguard.net/aff.php?aff=3782 Ugly's Lifetime Subscription: https://uglyoldgoat.com/?rid=4xyuzu Audio Podcast: https://itunes.apple.com/us/podcast/the-tone-vays-podcast/id1390209454?mt=2 See Regulation overview in each state here: https://www.carltonfields.com/state-regulations-on-virtual-currency-and-blockchain-technologies/ Tone Vays is available for Corporate Consulting at the rate of 0.3 btc per hour. Please email Tone@protonmail.ch for additional info.
Tones Vays
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