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American Crypto Platform Coinbase Fined 3.25 Million Euros in The Netherlands for Operating Without a Licence

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1 year ago

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Crypto platform Coinbase will have to pay a fine of 3.25 million euros in the Netherlands. This is what regulator De Nederlandsche Bank (DNB) reported on Thursday. Coinbase, a large American trading platform, was active in the Netherlands for almost two years without the required registrations. The illegal activities happened between November 2020 and August 2022.

Coinbase is one of the largest providers of crypto services worldwide. DNB says the company had ‘a considerable number of customers’ in the Netherlands, but has not  disclosed how many exactly. According to DNB he crypto platform had a competitive advantage because the company did not pay any taxes due to the lack of registration in the country, but did however have the intention to request this. Licences were finally awarded in September 2022.

Since May 2020, crypto platforms in the Netherlands are required to register with DNB. Due to the anonymity of crypto services, DNB thinks there is a high risk of money laundering and terrorist financing, and it claims that in the period in which Coinbase was active without registration, there were a large number of unusual transactions on the platform. Due to the lack of licencing they remained hidden from the investigative authorities.

In December 2022, the DNB also targeted the cryptocurrency exchange KuCoin saying that it too was operating without a license and therefore offering services illegally. In 2021 it similarly targeted Binance Holdings Limited, for which the exchange paid also more than 3 million euros in fines.

In the United States, where Coinbase is the most popular crypto platform, the company has to pay a fine of 50 million dollars (46 million euros) because it has not done enough to prevent money laundering.

News surrounding Coinbase has been pretty much negative since the beginning of 2022. The company has been in the headlines for numerous reasons relating to its business operations. And so far 2023 has not been any better.

On January 10 it announced that it would cut a fifth of its workforce due to operational restructuring. A week later on January 18 Coinbase announced that it would stop its operations in Japan due to the ongoing effects of the 2022 bearish market.

Coinbase has lost more than 70 percent of its market value over the last 7 months. The crypto platform laid off 1,150 employees last summer, nearly a fifth of its total. It was recently announced that another 950 people will lose their jobs at Coinbase, this means Coinbase has cut 35 per cent of its workforce since June.

Chief executive Brian Armstrong recently spoke about the need to “make sure we have the operational efficiency to weather downturns in the crypto market”. But he assured the world that Coinbase was well capitalised “and crypto isn’t going anywhere.”



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Binance To Delist All Spot Pairs Of These Major Crypto

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13 hours ago

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July 8, 2024

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Binance, one of the leading crypto exchanges, revealed its decision to delist all spot trading pairs for BarnBridge (BOND), Dock (DOCK), Mdex (MDX), and Polkastarter (POLS) by July 22, 2024. Notably, this unexpected move has sent ripples through the crypto market, leaving investors and traders in a state of speculation and concern. Here we explore the recent announcement and its potential implications on the cryptos.

Binance To Delist These 4 Major Crypto

In its latest strategic review, Binance emphasized a commitment to maintaining high standards and adapting to market shifts. The delisting of BOND, DOCK, MDX, and POLS is driven by several factors that the exchange continuously monitors.

Meanwhile, these include project commitment, development activity, trading volume, network stability, and compliance with regulatory requirements. Binance’s decision reflects a proactive approach to managing its platform and protecting its users.

In addition, the delisting will specifically affect trading pairs BOND/BTC, BOND/USDT, DOCK/BTC, DOCK/USDT, MDX/USDT, and POLS/USDT. Once trading ceases, users will no longer see these tokens’ valuations in their wallets.

Notably, to manage their holdings, users should disable the “Hide Small Balances” option. Deposits of these tokens will not be credited post-July 23, and withdrawals will be unsupported after October 22, 2024.

Meanwhile, Binance has outlined a series of measures to handle the delisting. Binance Simple Earn will halt the token offerings by July 19, with automatic redemption into users’ Spot Wallets.

Similarly, Binance Auto-Invest will stop recurring investments by July 15, and VIP Loan will close all loan positions for these tokens by July 17. In addition, the Binance Funding Rate Arbitrage Bot and Margin services will also be impacted, with crucial deadlines for users to settle positions to avoid losses.

For instance, all BOND, DOCK, MDX, and POLS balances in Cross Margin Wallets will convert to USDT on July 17. Binance Convert will maintain a sell-only function until July 22.

What’s Next?

The delisting news has stirred unease among crypto enthusiasts. Binance’s influence on the market is significant; its actions often drive market sentiment. While positive announcements from a crypto exchange like Binance can fuel market confidence, delisting or any other negative update can have the opposite effect, potentially eroding the market value of the affected tokens.

For instance, the removal of BOND, DOCK, MDX, and POLS could reduce liquidity and trading volume for these tokens, causing volatility. Investors are particularly wary as these assets might struggle to find new exchanges to list on or maintain their market presence.

The broader cryptocurrency ecosystem is also on alert. Binance’s decision underscores the dynamic nature of the crypto market, where regulatory compliance, project performance, and market health dictate listing decisions.

BOND Price BOND Price
BOND Price

As of writing, BOND price was down 26% to $1.57, while its trading volume rocketed 270% to $23.1 million. On the other hand, DOCK price plunged nearly 40%, and its one-day trading volume also skyrocketed 180% to $4.13 million. Simultaneously, MDEX price plummeted over 40%, while POLS price slumped about 20% today.

POLS PricePOLS Price
POLS Price

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Ripple and Coinbase Use Binance Win to Contest SEC Claims

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6 days ago

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July 2, 2024

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Coinbase and Ripple Labs are using Binance’s pivotal legal victory to challenge ongoing cases with the U.S. Securities and Exchange Commission (SEC). Both companies argue that the SEC’s approach needs more clarity and consistency, necessitating formal rulemaking to better define the regulatory perimeter for digital assets.

Ripple, Coinbase Cite Binance Case Against SEC

Ripple Labs and Coinbase have intensified their legal defenses by referencing a recent court order involving Binance, which achieved a partial dismissal in its SEC lawsuit. The companies argue that this precedent highlights the need for the SEC to establish clear regulations. In its latest court filing, Ripple emphasized the judge’s remark that cryptocurrency does not align seamlessly with existing securities laws, such as those established by the 1946 Howey Test. This test is crucial for determining whether a transaction qualifies as an investment contract and thus falls under securities regulation.

 

Coinbase has concurrently voiced concerns over the SEC’s expansive interpretation of securities laws applied to the crypto industry. The exchange asserts that this broad application could be more extensive and better defined, pushing for a definitive rulemaking process to provide legal clarity. In its appeal, Coinbase cited the recent Binance ruling to bolster its case for rulemaking, arguing that the decision underscores the inconsistencies in current regulatory applications.

 

Also Read: Bybit Exchange Unveils Support For ASI Alliance, Will FET Rebound?

Coinbase Demands Clarity in SEC Regulatory Battle

The SEC has engaged with various cryptocurrency platforms and assets, deeming some of their operations as securities offerings without proper registration. In the case of Ripple, the SEC’s lawsuit initiated in December 2020 alleged that Ripple raised over $1.3 billion through sales of its XRP token, which the SEC classified as an unregistered security. However, in a significant turn, Judge Analisa Torres ruled that certain “programmatic sales” of XRP did not constitute securities transactions, introducing a nuanced interpretation Ripple now seeks to leverage to challenge broader SEC claims.

 

Coinbase faces similar regulatory scrutiny. The SEC argues that the platform operated as an unregistered securities exchange, a claim that Coinbase refutes, urging a formal rulemaking process to clarify these regulatory boundaries. Both Coinbase and Ripple use recent judicial outcomes, notably the Binance case, to argue for a more structured and transparent regulatory framework from the SEC, stressing that the current state of affairs is inefficient and unclear.

Crypto Firms Rally Around Binance Court Decision

The partial victory for Binance in its own SEC lawsuit has become a strategic reference point for other crypto entities embroiled in legal challenges with the regulator. Despite Judge Amy Berman Jackson’s decision to proceed with most of the SEC’s claims against Binance, her dismissal of the charge regarding secondary sales of Binance Coin (BNB) as securities has been perceived as a significant legal precedent. Coinbase and Ripple have particularly highlighted this aspect of the ruling in their ongoing litigation.

 

Further developments are anticipated, with a scheduled conference for the SEC’s case against Binance set for July 9. Meanwhile, Coinbase and Ripple continue to press for regulatory clarity, which they argue is crucial for the industry’s stability and growth.

 

Also Read: Genesis Digital Is Considering Going Public Via IPO In US: Report

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Binance Rejoices Partial Victory Against SEC As Legal Battle Continues

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6 days ago

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July 2, 2024

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Binance, a prominent cryptocurrency exchange, is celebrating a significant legal milestone in its ongoing tussle with the U.S. Securities and Exchange Commission (SEC). Binance said that a recent court decision dismissing several key SEC claims against the exchange marks a noteworthy triumph for the broader industry.

Notably, in another update, Binance.US said that it remains vigilant and is prepared for the next phases of this legal journey.

Partial Victory Against SEC

Binance has achieved a partial victory in its ongoing legal battle with the U.S. SEC, as a federal court recently dismissed several of the agency’s major claims. This ruling is seen as a significant win for the crypto exchange and the entire cryptocurrency sector.

In a blog post shared on the X platform, Binance announced, “In a victory for the industry, a U.S. federal court dismissed several SEC claims against Binance.” The post highlighted that the court ruled crypto tokens are not securities, sales of BNB on secondary exchanges were not sufficiently alleged to be securities, and Binance’s stablecoin, BUSD, is not classified as a security.

A Closer Look Into The Report

Meanwhile, the court’s decision, as detailed in Binance’s blog, rebuffed the SEC’s assertion that digital tokens are inherently securities. Notably, Judge Amy Berman Jackson dismissed this broad claim, emphasizing the need to consider the specific circumstances surrounding each transaction rather than labeling the tokens themselves as securities.

This aspect of the ruling challenges the SEC’s strategy of enforcing regulations through broad classifications, aligning instead with the principle that regulatory oversight should be based on transaction context. Moreover, the court rejected the SEC’s argument that secondary market sales of BNB tokens should be treated as securities transactions.

This decision limits the SEC’s ability to extend its enforcement reach to secondary trading activities on crypto exchanges, thereby providing a crucial check on the agency’s regulatory power. Besides, the court found that the SEC failed to demonstrate that purchasers in secondary market sales bought BNB tokens with an expectation of profit, which is a critical component of the Howey Test used to determine whether an asset qualifies as a security.

In addition, the court dismissed the SEC’s claim that Binance’s fiat-backed stablecoin, BUSD, is sold as an investment contract. The court noted that BUSD was promoted as a stablecoin without any indication that investors anticipated its value would rise due to Binance’s efforts. This decision further reinforces the position that stablecoins do not inherently meet the criteria for securities classification.

Also Read: Bitcoin ETFs Gain Momentum With $129M Inflows, Will BTC Price Recover?

Despite the favorable rulings, some of the SEC’s claims against Binance were allowed to proceed. The court did not dismiss the SEC’s allegations that direct sales of BNB tokens may constitute securities transactions, as these claims require further examination during the judicial process.

However, Binance.US expressed readiness for the ongoing legal battle, stating in a recent X post, “We were prepared for this and look forward to having this case move forward in the judicial process.” The crypto exchange highlighted its adherence to U.S. regulations and commitment to maintaining 1:1 reserves for all customer assets.

In addition, Binance.US criticized the SEC’s regulation-by-enforcement approach, which has been perceived as politically motivated overreach under the current leadership. The exchange remains confident in its position, asserting that the SEC’s case lacks factual and legal support.

Meanwhile, Binance emphasized its intention to continue serving its customers and advancing its business, underscoring its strong footing and dedication to providing access to digital assets. As the case progresses, Binance’s partial victory is a significant step in the ongoing struggle between regulatory authorities and the evolving cryptocurrency market.

Besides, in a recent development, Coinbase has filed a notice requesting an interlocutory appeal, citing Judge Jackson’s decision in the Binance BNB case. This has also attracted the market attention, with investors keeping a close watch on the shifting crypto regulation.

Also Read: Swiss Government Bank Launches XRP, ADA, SOL, AVAX & DOT Trading

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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