The Federal Reserve and Arkansas State Bank Department have mandated sweeping reforms at Evolve Bank & Trust following significant compliance breaches. The order highlights issues in anti-money laundering efforts and consumer protection, especially in its dealings with fintech companies and prominent crypto players like FTX. Compliance Concerns Trigger Regulatory Action Against Evolve Bank Evolve Bank […]
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Texas Issues Emergency Cease and Desist Against Arkbit’s Crypto Operations
The Texas State Securities Board has issued an Emergency Cease and Desist Order against Arkbit Capital and its affiliates, Arkbit Capital Holdings, ABC Holdings LLC, and ABC Mining. These companies were found operating a fraudulent MLM cryptocurrency investment scheme. Promising daily returns of 1.6-2.8% for 120 days on investments between and ,999, they lured […]
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Zksnacks to Cease Coinjoin Transactions, Affecting Wasabi, Trezor and Btcpay
On Thursday, Zksnacks, the developer behind Wasabi Wallet, announced its decision to cease its coinjoin services following regulatory measures in the U.S. The company stated that the wallet will now operate as a standard non-custodial bitcoin wallet without the coinjoin feature. Zksnacks Withdraws Coinjoin Feature from Wasabi Wallet Following intensified regulatory scrutiny in the U.S., […]
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Regulatory Clampdown — Alaska and Florida Order Binance US to Cease Operations
A recent report indicates that regulatory authorities in Alaska and Florida have prohibited Binance US from operating within their jurisdictions. This development comes in the wake of Binance, along with its previous CEO Changpeng Zhao, reaching a plea agreement with the U.S. government.
Alaska and Florida Issue Cease Operations Orders to Binance US
Binance US, a subsidiary of Binance – the world’s leading crypto exchange by trading volume, has been ordered to cease operations in Alaska and Florida, according to state regulatory mandates. The news was initially revealed by Wall Street Journal (WSJ) journalist Caitlin Ostroff, highlighting the American exchange’s previous complications in these states.
Reportedly, the Office of Financial Regulation in Florida had enacted an emergency suspension of Binance US’s license for money transmission. The report further highlights that this month, the Alaska Division of Banking and Securities reportedly refused to renew the license of Binance’s U.S.-based crypto exchange.
A Binance US spokeswoman told Ostroff that the exchange was in “active dialogue with state officials.” The recent developments in Florida and Alaska come after the plea agreement that former CEO Changpeng Zhao (CZ) and Binance entered into with the U.S. government.
CZ is scheduled for sentencing on Feb. 23, 2024, with a potential 18-month prison term. Furthermore, on Jan. 23, 2024, a judge denied CZ’s request to travel to the UAE, even though he proposed to secure his travel with equity.
Regarding the situations in Alaska and Florida, the Binance US spokeswoman chose not to provide any comments on the possibility of the U.S. exchange appealing the prohibitions, as reported by Ostroff. Based on the data gathered on Jan. 28, 2024, Binance US ranks as the 41st largest crypto exchange by volume, having processed trades amounting to million over the last 24 hours.
What do you think about Florida and Alaska banning Binance US? Share your thoughts and opinions about this subject in the comments section below.
Elon Musk, Vivek Ramaswamy Warn of Increasing World War III Risk — ‘The US as We Know It Will Cease to Exist’
Tesla CEO Elon Musk and U.S. presidential candidate Vivek Ramaswamy have cautioned about the increasing risk of World War III erupting. “I think we are sleepwalking our way into World War III,” Musk said. Ramaswamy warned: “If we enter a major conflict, anything resembling World War III against a Russia-China alliance with potentially Iran and/or North Korea included on the other side, the United States as we know it will cease to exist.”
Elon Musk, Vivek Ramaswamy Discuss World War III Risk
Tesla and Spacex CEO Elon Musk and U.S. presidential candidate Vivek Ramaswamy discussed their perspectives on the growing risk of World War III Monday during a discussion on social media platform X. The discussion, titled “Where is Israel-Hamas war headed? Could this lead to WW3?,” was hosted by venture capitalist David Sacks, with Ramaswamy as the co-host. In addition to Musk and Ramaswamy, the event featured several other speakers, attracting an audience of over 915,000 listeners.
Musk said “the most important issue” to discuss is “how do we avoid World War III?” He explained that “World War III is a civilizational risk that we may not recover from,” therefore we need to “prioritize avoiding World War III” and not let “a regional conflict rapidly become a global conflict.” The billionaire cautioned:
People are overestimating U.S. military power … We don’t have the power differential that we used to have.
“A combination of Russia, China, and Iran should be viewed as very strong relative to the West,” the Tesla boss emphasized. “We are not fighting small fry here … It is a massive battle where the industrial capacity is of comparable size to the Western alliances.”
The billionaire continued: “We do not have an overwhelming advantage in industrial might … and the foundation of war is economic power, especially industrial output … In fact, it may be the case, if not now in the future, it probably will be that a Russia-China-Iran alliance can outproduce the Western alliance.”
Musk explained: “The point is that in order for there to be a global conflict of World War III, you have to have two superpower alliances like that, where one cannot easily defeat the other one, and that is the case. And that, I think is a massive shift in thinking that most people do not understand.”
The Spacex chief pointed out: “Russia has the raw materials and China has the industrial capacity — Frankly, a perfect match from a war standpoint.” He added: “Unfortunately, our [U.S.] policy has been driving, forcing really, Russia and Iran to ally with China. It’s been forcing them. What choice have we given them?” He stressed:
We need to stop doing that. It’s unwise, and I think it will lead to immense risk to civilization … We need to make sure we are not putting civilization itself at stake, which is World War III.
‘The United States as We Know It Will Cease to Exist’
Ramaswamy shared Musk’s concern about World War III being a civilizational risk. He said during the discussion that “a different way of saying civilizational risk because there’s a lot of other things that would also cease to exist” is to say that “If we do enter World War III, it is likely that the United States as we know it will cease to exist.”
The presidential hopeful emphasized that “it’s important for people to understand” the risk to the United States in case of WWIII, “especially when the U.S. homeland is as vulnerable as we have been in modern memory, not just from a border perspective but from missile defense or cyber defense or defenses against super electromagnetic pulse attacks.”
He additionally highlighted various factors amplifying the risks, such as “Russia’s hypersonic missile capabilities, nuclear capabilities,” which he noted are ahead of the U.S., and “China’s naval capacity, which arguably is ahead of ours.” Moreover, “our economic dependence on China” and a range of other factors, when you consider the Western allies in contrast to the “alternative alliance between Russia, China, Iran, and North Korea,” have heightened the risks, he detailed.
Reiterating that “The existence of the United States itself is what we are talking about as being on the line here,” Ramaswamy emphasized:
If we enter major conflict, anything resembling World War III against a Russia-China alliance with potentially Iran and/or North Korea included on the other side, the United States as we know it will cease to exist.
‘We Should Restore Normal Relations With Russia’
Musk also believes that it’s imperative for the U.S. to restore normal relations with Russia. “From a civilizational risk standpoint, we should restore normal relations with Russia … because the alternative is … an axis of immense power against the West and laying the groundwork for World War III,” the billionaire cautioned.
“I see no benefit and only bad things, frankly, in prolonging the Ukraine and Russia conflict … bad things for Ukraine and bad things for the United States and bad things for the world,” Musk opined. “So we should seek peace. I think immediately we should seek to restore normal relations as soon as possible. This is not some kind of reward for Russia. This is simply recognizing the realities and the risks that the world faces and ensuring that there is the highest likelihood of a positive future for human civilization.”
The billionaire concluded: “The most important thing is avoiding World War III because we may never recover from World War III and I think currently the risk of World War III is increasing rapidly. And I think if relations are renormalized with Russia, the probability of World War III is dramatically lower.” Musk stressed:
I think we are sleepwalking our way into World War III … with one foolish decision after another.
Do you agree with Elon Musk and presidential candidate Vivek Ramaswamy about the risk of World War III? Let us know in the comments section below.
Binance Finds Way to Serve Belgian Users After Cease Order
Cryptocurrency exchange Binance said it continues to provide services to residents of Belgium through its Polish entity. The announcement comes two months after the crypto trading company was ordered by the Belgian financial regulator to cease all crypto services in the country.
Binance Offers Belgian Clients to Trade on Its Polish Platform
Belgian customers of Binance, the world’s largest crypto exchange, are currently served by its Polish platform. In a blog post published Monday, the crypto trading company pointed out that the move allows it abide by applicable regulations. It stated:
We are pleased to announce that Binance Poland sp. z o.o. is now the entity that provides Binance services for Belgian residents. By doing this, Binance ensures that it complies with its regulatory obligations and can continue to provide services to Belgian users.
The change comes after in June Belgium’s Financial Services and Markets Authority (FSMA) ordered Binance to “cease immediately all offers of virtual currency services” in the EU nation, accusing it of providing exchange and custody wallet services from countries that are not members of the European Economic Area (EEA).
The FSMA also demanded from Binance to return to Belgian clients all cryptographic keys and crypto assets that it holds for their account, or transfer them to entities governed and authorized by the law of an EEA member state in order to continue to carry out the said activities.
Binance emphasized it will be able to continue serving Belgian users in compliance with local regulatory requirements. “Binance Poland is able to provide crypto exchange and custodian services in line with its registration as a virtual assets service provider (VASP) in Poland,” the exchange noted.
To keep trading on Binance, Belgians will have to accept the Terms of Use of Binance Poland for Belgian users, the company explained, adding: “We may also ask users to resubmit some of the required know-your-customer (KYC) documentation in order to comply with Polish regulatory requirements.”
Binance has been dealing with increased pressure from financial authorities around the world, including lawsuits from the securities and commodities regulators in the U.S. In Europe, Binance withdrew its license applications or canceled its registrations in several countries, including the Netherlands, Germany, Cyprus, and the U.K., indicating it wants to focus on fewer regulated entities on the Old Continent.
In late July, the crypto giant announced it’s restoring full services for its Japanese users on a new platform. In November 2022, acquired the Japan-registered Sakura Exchange Bitcoin (SEBC) after receiving warnings from Japanese regulators that it was operating without the necessary authorization.
Do you think Binance will adopt a similar approach regarding other European markets where it faces regulatory challenges? Share your thoughts on the subject in the comments section below.
Former Paxful CEO Ray Youssef Urges Platform Users to ‘Cease Trading’
On July 7, Ray Youssef, the former CEO of Paxful, told users of the peer-to-peer crypto marketplace to stop trading on the platform. Youssef claimed that Paxful is now “just paying legal bills” and that “no African or any non-American should trust any IS corporation.”
Paxful’s Alleged Removal of Reserve Funds From Status Page Raises Concern
Following reports that Paxful, the peer-to-peer crypto marketplace, has removed the reserve funds amount from the status page, former CEO Ray Youssef advised users to cease trading. In his reply to a Twitter user who warned of an FTX-style collapse, Youssef suggested that users should consider switching to self-custody until “we get to the bottom of this.”
In addition to exposing the alleged removal of reserve funds from Paxful’s website, the unidentified social media user also claimed to have seen tweets from former employees who complained of not being paid all their dues after they left. The user also claimed to have heard rumors that Paxful was dipping into customer funds.
In another tweet, Youssef, in an apparent response to Paxful’s pledge to unfreeze .5 million in customer funds, reiterated his lack of confidence in the process, declaring:
I do not trust lawyers. Paxful is now just paying legal bills. No African or any non-American should trust any IS corporation. Don’t say you were [not] warned folks. My reputation I value over any shares in any company.
In early April, trading on the P2P marketplace was suspended due to regulations and what Youssef attributed to the departure of key personnel. However, after Paxful announced the resumption of services, Youssef, who had already left the organization, said he could not vouch for anything that is happening there now.
Since leaving Paxful, Youssef, who has more than 50,000 followers on Twitter, has not only urged users to abandon the platform but has routinely promoted Civkit which he founded. Although many of the followers have lauded Youssef’s efforts, some have accused him of being an “attention seeker.” He has also been accused of seeking to use his influence to harm rivals.
What are your thoughts on this story? Let us know what you think in the comments section below.
Binance Ordered to Cease All Crypto Services in Belgium
Crypto exchange Binance has been ordered by Belgium’s Financial Services and Markets Authority (FSMA) to cease providing any crypto exchange and custody wallet services in the country. The Belgian financial regulator stressed that it “takes the view that by offering such services in Belgium from countries that are not members of the European Economic Area, Binance is in violation of that prohibition.”
Belgian Regulator Orders Binance to Cease Crypto Services in the Country
Belgium’s Financial Services and Markets Authority (FSMA) announced Friday that it has ordered cryptocurrency exchange to “cease immediately all offers of virtual currency services in Belgium.”
The FSMA noted that “Binance is offering and providing exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services, from countries that are not members of the European Economic Area.” The financial regulator emphasized: “The FSMA takes the view that by offering such services in Belgium from countries that are not members of the European Economic Area, Binance is in violation of that prohibition.” The announcement details:
By way of its decision dated 23 June 2023, the FSMA has therefore decided to order Binance to cease, with immediate effect, offering or providing any exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services.
“Failure to comply with this prohibition is subject to criminal sanctions pursuant to Article 136 of the Belgian Law on the prevention of money laundering and terrorist financing,” the regulator warned.
In addition to ordering Binance to cease crypto activities in Belgium, the FSMA stated that it has “demanded that Binance take immediate measures” to return to Belgian clients “all cryptographic keys and/or all virtual currencies that Binance holds for their account, or to transfer these to entities governed by the law of an EEA member state and duly authorized by their domestic law to carry out such activities.”
Belgium’s Crypto Regulation
The financial regulator explained that providing exchange services “between virtual currencies and legal currencies and of custody wallet services (VASP) remains an unregulated activity, except as concerns combating money laundering and terrorist financing (AML/TF).”
The FSMA noted that the European Union’s Markets in Crypto-Assets (MiCA) regulation, which was published in the Official Journal of the European Union on June 9, “will introduce more general rules, and in particular prudential rules, governing activities relating to crypto-assets.” The regulator clarified:
These rules, with direct effect in Belgian law, will enter into force in January 2025.
In the absence of specific regulations, the common law and relevant provisions of the Belgian Criminal Code are applicable to crypto assets, the FSMA noted.
Binance is facing increased regulatory scrutiny across multiple countries. The U.S. Securities and Exchange Commission (SEC) has filed charges against Binance, CEO Changpeng Zhao (CZ), and Binance US. In addition, Binance has ceased operations in the United Kingdom. The exchange has also pulled out of the Netherlands and is seeking to deregister in Cyprus. Furthermore, French investigators are investigating Binance on allegations of money laundering and regulatory breaches.
What do you think about Binance being ordered to halt its crypto services in Belgium and its decision to withdraw from multiple countries? Let us know in the comments section below.
CZ Says Binance Has Issued a Cease and Desist Notice Against Nigerian ‘Scammer Entity’
Changpeng Zhao, the CEO of Binance, said the recently banned Binance Nigeria Limited has been issued with “a cease and desist notice.” Zhao, who has since branded the Nigeria-registered company a “scammer entity,” told his followers not to believe everything they read in the news.
Binance Disassociates Itself From Banned Nigerian Entity
The CEO of Binance, Changpeng (CZ) Zhao, recently said his firm had issued a “cease and desist” notice against Binance Nigeria Limited, the supposed affiliate of the crypto exchange platform. In a June 18 tweet, CZ also told his followers not to believe everything they read in the news. However, the tweet did not explain how Binance is going to enforce the order against the “scammer entity.”
Binance have issued cease & desist notice to the scammer entity "Binance Nigeria Limited".
Don't believe everything you read in the news.
— CZ
Binance (@cz_binance) June 18, 2023
The Binance chief’s clarification about the crypto exchange’s relationship with the Nigerian entity came just over a week after the Nigerian Securities and Exchange Commission (NSEC) declared Binance Nigeria Limited’s operations in the country illegal. As reported by Bitcoin.com News, the Nigerian regulator also told Binance Nigeria Limited to “stop soliciting Nigerian investors in any form whatsoever.”
Following the NSEC’s declaration and warning to the Nigerian public, a spokesperson for Binance was quoted in a report distancing the leading crypto exchange from the Nigerian entity.
Meanwhile, in the same report, an individual known as Ahassan Ifzal Mughal is quoted confirming Binance Nigeria Limited’s non-affiliation with Binance. According to the report, Mughal had registered Binance Nigeria Limited with the hope of eventually selling the incorporated entity to CZ’s Binance.
“We are willing to hand over full control of Binance Nigeria Limited to binance.com should they choose to legally enter into the Nigerian market, and are further available to provide our legal services to them in obtaining legal regulatory compliance in Nigeria,” Mughal reportedly said.
While some have questioned CZ’s belated move to disown the “scammer entity,” a Nigeria crypto industry insider told Bitcoin.com News that it is possible that Binance was not aware that the now-banned entity had been using its name. To support this assertion, the insider pointed to 6 Nigerian organizations on the Corporate Affairs Commission portal which use the name Binance.
Senator Ihenyen, the lead partner at Infusion Lawyers, said while Binance’s move may seem surprising to some, the illegal use of well-known brands or trademarks is “a menace genuine companies or brand owners face across the world, including Nigeria.” Ihenyen stated that his firm has handled many cases wherein this practice which is known as cybersquatting has been perpetrated.
“As the Lead Partner of a law firm in the African market, we have handled similar matters involving cybersquatting in and outside the blockchain space. Here, an entity’s name, domain name, trademark, etc. is registered without due authorization in the hope of reselling them for profit. So “Binance Nigeria Limited” may just be one of many instances of this menace. This is Cybersquatting.,” Ihenyen explained.
The lawyer also stated that while this practice is illegal in Nigeria, many still see it as a legitimate practice.
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What are your thoughts on this story? Let us know what you think in the comments section below.
Binance To Delist And Cease Trading For Helium (HNT), Here’s Why
Binance, the popular crypto exchange, decided to delist Helium (HNT). The crypto token HNT powers the Helium network, a decentralized blockchain for internet of things (IoT) devices. It enables the communication between the devices sending data across the network nodes.
In Binance’s account, Helium HNT is no longer adhering to its standards and, as such, will no longer exist in its market. Notably, the exchange carried out a periodic review to reach this conclusion.
Binance Finds Helium As Unsuitable For Its Customers
The crypto exchange posted a press release disclosing its plans to cease trading for Helium (HNT). It will remove the HNT/BUSD trading pair from the marketplace and stop accepting deposits for the tokens from March 25.
Also, the exchange disclosed that it will allow users to withdraw their tokens until April 17, when it will stop. Then on April 21, users can withdraw HNT again until June 24. Regarding its reasons for delisting and ceasing trading support for HNT, Binance stated that crypto is no longer acceptable.
Notably, the exchange shared that it followed specific criteria to review HNT. Some of the critical factors are trading volume, liquidity, and smart contract stability. Also, it checks the developmental activities on the network and how the team commits to the project.
Other factors include the level of responsiveness to its periodic due diligence requests, the level of public communication, and how the projects contribute to the general crypto ecosystem. Further, it also checks if shreds of evidence point towards negligence, fraudulent, or unethical conduct by the project’s team.
Most importantly, Binance mentioned that it only carries out an in-depth review when a crypto project fails to meet its standards or if there are critical industrial changes that could affect assets. So, after checking these factors, HNT and another asset, Teal (WABI), failed to meet its expectations.
HNT Price Plummeted Amid Solana Migration Plans
After the announcement by Binance, HNT lost its price gains over the past few days. As of press time, HNT price is down by 13.10% in 24 hours. It has lost hold on the price level it enjoyed since January, despite some rallies to on specific days in February.
Its market cap has also lost 12.26% in the same time frame. Looking at its current price trend, HNT lost 96.94% from its all-time high of .22 on November 12, 2021.
This recent announcement has affected investors’ sentiment on HNT, as seen in the price. But it hasn’t dampened the HNT community looking forward to its migration to Solana as the activities with the coin show massive usage.
The latest update about its migration appeared yesterday in an official Medium post by the Helium Foundation. It tweeted about it the same day, disclosing that the migration would now occur on April 18.
Featured image from Binance and chart from Tradingview.com