‘Predatory’ Bots Exploiting Decentralized Crypto Exchanges: Report

Arbitrage bots are exploiting “inefficiencies” in decentralized exchanges (DEX), according to a report. Citing recent research from Cornell Tech, Homeland Security News Wire said on Monday that such cryptocurrency platforms are being used by “predatory users” to profit from everyday trades, “siphoning millions or possibly billions of dollars a year in cryptocurrency.” In some cases, high fees are paid to prioritize certain transactions, posing a security threat to entire blockchains, the piece said. According to the article: “Like high-frequency traders on Wall Street, these bots exploit inefficiencies in DEXes, paying high transaction…

Following Expansions, Japanese Regulator Investigates Local Crypto Exchanges

Japan’s Financial Services Agency (FSA) is looking into two major cryptocurrency exchange platforms as part of an investigation. According to a report published by Reuters Japan on April 23, 2019, the investigation by the financial watchdog is connected to the legal compliance and customer protection standards of trading platforms Fisco Digital Asset Group (FDAG) and Huobi Japan, the Japanese subsidiary of Huobi Global. FDAG recently acquired the crypto exchange Zaif, which was hacked last year, from Tech Bureau for $44.7 million. Huobi Global, meanwhile, expanded into Japan through the acquisition…

Crypto Exchanges Huobi and Fisco Investigated by Japan Watchdog: Report

Cryptocurrency exchanges Huobi Japan and Fisco are said to have been investigated by the country’s financial watchdog last week. A Reuters report on Tuesday, citing “two sources familiar with the matter” said that the Financial Services Agency (FSA) visited the two exchanges to assess their customer protection and anti-money laundering (AML) provisions. Japanese exchanges run by the two firms have recently seen big changes at the management level, and the FSA investigation was aimed to ensure whether adequate compliance measures are in place under the new regimes, according to the sources.…

Fake Volume on Crypto Exchanges Isn’t the Half of It

Daniel Cawrey is CEO of Pactum Capital, a cryptocurrency investment firm focused on market making and liquidity. Formerly a CoinDesk Contributing Editor, he is author of the upcoming “Mastering Blockchain” book to be published by O’Reilly Media. Recently, a report was produced by Bitwise Asset Management showing the existence of faked volumes in the bitcoin market – 95% of total volume according to its research. It’s hard to disagree with many of the facts in the report. Yet there are some items left out in this presentation to the SEC.…

Lightning Offers Growth Path for Emerging-Market Crypto Exchanges

While leading cryptocurrency exchanges like Coinbase and Binance feverishly add new tokens, smaller exchanges serving emerging markets are pivoting toward retail applications of the lightning network’s bitcoin scaling solution. The latest is Singapore-based exchange Zebpay, which now offers lightning wallet options for users who want to send lightning-enabled payments to external wallets. Bitcoin users can cash out their crypto directly to make a nearly instant payment to any lightning-friendly wallet. For now, Zebpay will enable this feature by handling all the channels to recipients on the back-end. “Next comes allowing…

Most Crypto Exchanges Still Don’t Have Clear KYC Policies: Report

The crypto exchange industry may be far less compliant than it appears. As revealed exclusively to CoinDesk, a global study of 216 exchanges by the reg-tech startup Coinfirm found 69 percent of these businesses do not have “complete and transparent” know-your-customer (KYC) procedures. The study also found that only 26 percent of exchanges had a “high” level of anti-money laundering (AML) procedures, such as ongoing transaction monitoring and in-house compliance staff with experience in AML. While some people may see anonymous trading as a feature of the cryptocurrency market, it…

Mexico’s Proposed Crypto Laws Create New Barriers For Exchanges, Adoption

Earlier this month, the Bank of Mexico (Banxico) published a circular, wherein it laid out its plan to issue permits to bitcoin exchange platforms and other crypto-related businesses operating in the country. Banxico’s circular stated that to get the right permits, crypto-based businesses in the country would be required to provide detailed business plans and company profiles. Each profile will have to contain various aspects of how the business operates including its business model, transaction fees and know-your-customer (KYC) security measures. Per the circular, the principal objective of the regulator…

Canada Proposes Regulatory Framework for Cryptocurrency Exchanges

Canadian financial regulatory authorities are considering putting in place rules for cryptocurrency exchanges in the country. The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) published a consultation paper on Thursday, seeking input from the fintech community on how regulatory requirements can be developed for cryptocurrency platforms. “The emergence of digital and crypto assets continues to be a growing area of interest,” said Andrew J. Kriegler, president and CEO of the IIROC in a separate statement on Thursday, adding: “We must adapt to innovation, and provide…

Pro-Bitcoin Square Headlines London Stock Exchange’s Blockchain ETF

Invesco, an American firm, and Elwood, a British digital asset investment company, announced the launch of a blockchain ETF on the London Stock Exchange today. The exchange-traded fund features 48 companies with ties to the blockchain industry, including some – like Square – that have dabbled directly in the bitcoin or crypto space. Invesco & Elwood Team up for UK Blockchain ETF The London Stock Exchange just listed a blockchain ETF, providing investors with broad exposure to companies that are active in the crypto space, including Square and Overstock. |…

Revolut App Now Lets Users Auto-Trigger Cash and Crypto Exchanges

Mobile finance app Revolut has launched a new feature allowing users to “auto-exchange” cash and cryptocurrencies. The firm announced Tuesday that its over 4 million users can now automatically exchange, say, U.S. dollar (USD) to bitcoin (BTC) or ether (ETH) to XRP, based on a pre-set target rate. Fiat-to-fiat exchanges are also possible. Once a target rate is set in the app – either above or below current rates – Revolut said the exchange will trigger once the target has been reached. It warns, though, that the achieved rate could be…