Bitmex restricts service in Seychelles, Hong Kong and Bermuda – Here’s Why!

Popular Seychelles-based crypto derivatives trading platform, BitMEX has announced that it is closing its platform to three jurisdictions. The announcement was made in other to ensure the safety of its customers’ funds as well as the stability of the platform.
According to the official announcement, the regions affected by the restriction include Seychelles, Hong Kong, and Bermuda. Customers of the derivative trading platform based in these three listed regions will not be able to continue accessing the platform’s services. These three jurisdictions are where BitMEX parent HDR Global Trading Limited’s users and offices are located.
According to the official announcement,
“This change will have no financial impact on the business and will affect very few people. The BitMEX team will be reaching out to those who are affected,” the firm said in a statement. BitMEX also added that the firm welcomes the involvement of regulators in the cryptocurrency industry and that regulators will provide “a new era of legitimacy for cryptocurrency exchanges: a future where market operation standards are clearly stated and maintained, where security is paramount, and where financial reserves are independently and frequently audited.”
This comes after reports that the U.S. Commodity Futures Trading Commission (CFTC) is probing the firm to determine whether it went against regulations in the form of servicing US traders. BitMEX is not registered with the CFTC and counts the U.S. as one of the jurisdictions in its restricted access list.
The Genesis Of The Situation
This news is rather expected than a surprise to anyone who followed the derivative exchange’s tangle with popular economist and crypto antagonist, Nouriel Roubini about a month ago. BitMEX’s CEO, Arthur Hayes was engaged in a debate with Roubini in Taipei along with discussions focussing on cryptocurrencies.
Thereafter, Roubini ramped up a campaign against BitMEX which then led to CFTC investigating the trading platform. In the days following the events, BitMEX had experienced a huge outwards funds flow and the daily trading volume had dropped drastically. The platform’s social media also stopped updating.
The post Bitmex restricts service in Seychelles, Hong Kong and Bermuda – Here’s Why! appeared first on Coingape.
Source: CoinGape

UK’s Advertising Regulator Accuses BitMEX Exchange of Misleading Bitcoin Graph

Coinspeaker
UK’s Advertising Regulator Accuses BitMEX Exchange of Misleading Bitcoin Graph
The advertising regulator ASA notes that BitMEX ads breached the code along with the lack of clear explanation of the risks involved with the BTC investments.
UK’s Advertising Regulator Accuses BitMEX Exchange of Misleading Bitcoin Graph

Continue reading at Coinspeaker
Source: CoinSpeaker

Will this Coinbase-backed Crypto Derivatives Exchange offering 150x Leverage Challenge BitMEX?

According to a report, upcoming London-based crypto derivative exchange Blade has secured funding amounting to $4.3 million. Among the exchange’s investors are popular companies including Coinbase, Slow Ventures, SV Angel, A.Capital, as well as Justin Kan and Adam D’Angelo.
Blade, which is expected to launch in three weeks, will offer perpetual crypto swap contracts with leverage as high as x150. In this arrangement, which shares a few differences with future contracts, investors either on short or long term positions tend to gain profits from selling off crypto assets. Perpetual contracts are different from futures in that they have no expiration date.
Blade Offers Perpetual Contracts And x150 Leverage
The crypto derivatives exchange will provide users with options of 150x leverage on both BTC/USD and BTC/KRW contracts. These two contracts are the only fiat-based products in which BTC is paired with fiat. The remaining are purely crypto pairs. These pairs include XRP/USDT, BNB/USDT, ZEC/USDT, XMR/BTC, and DOGE/USDT. With the inclusion of a Korean Won fiat product, the exchange derivative, which aims to provide services similar to BitMEX, is primarily targeting the Asian crypto market.
Big industry names like Gate.io and Okex have already introduced similar features on their platforms and this confirms the likely future adoption of perpetual contracts. Although BitMEX recently fell under regulatory scrutiny and has seen a massive outflow of funds, Blade aims to put forward competition for market recognition. According to Jeff Byun who cofounded Blade,
Coinbase and Binance are building this foundational structure for crypto, but I think we are too and in a sense that derivatives are at their core about risk transfer, we want to be building the foundational layer for risk transfer in the crypto markets.
In the long term, we want to be the CME of crypto.
The post Will this Coinbase-backed Crypto Derivatives Exchange offering 150x Leverage Challenge BitMEX? appeared first on Coingape.
Source: CoinGape

Roubini’s “The Great Crypto Heist”, Amid CFTC Probe BitMex Bleeds $524M in Outflows

Nouriel Roubini’s aka Dr. Doom’s severe censure of the crypto derivatives platform, BitMEX, has reportedly landed the company in serious trouble. BitMEX, amid rumors of a full-fledged CFTC probe, experienced $524M in outflows in July while the rest of crypto community enjoyed a bull-market. 
Did Arthur make a mistake by meddling with Permabear Roubini?
The chain of events leading to BitMEX losing over half a billion dollars started with a debate between Nouriel Roubini, economist and crypto skeptic and Arthur Hayes, CEO of BitMEX. 
At the 2019 Asia Blockchain Summit at Taipei, Roubini was invited to debate with Hayes on the subject of cryptocurrencies – whether they are a scam or the future. Just a few days before the debate, Roubini had tweeted on an update by BitMEXResearch about BitMEX achieving over $9 billion in trading volume and $1 billion in open interest on the Bitcoin perpetual swap contract. Roubini’s comment implied that these figures were not reliable as 95% of all bitcoin transactions on a typical exchange were fake.
Source: Twitter
In the debate, Roubini maintained his typical hostile attitude towards cryptocurrencies.
He claimed that the cryptocurrency industry was characterized by “shitty behavior” with scammers and criminals and that Bitcoin was not “not secure, not decentralized and is not even scalable”. 
He also shared his view on other emerging technologies including artificial intelligence (AI), Big Data, the Internet of Things (IOT) saying that the revolution in the fintech space was already happening with these technologies and it did not need cryptocurrencies. “We don’t need that cesspool of stinking shi*coins,” stated Roubini. 
Hayes argued for the value propositions offered by cryptocurrencies, especially digitization of money and decentralization. “In 50 years, if Alibaba, Facebook, and Google control everything, people will like that thing that isn’t controlled by the large companies. Bitcoin won’t be a niche market,” Hayes emphasized.
The debate also saw discussion around fake volumes on crypto exchanges, regulatory uncertainty and Facebook’s upcoming Libra cryptocurrency.
Roubini’s “The Great Crypto Heist”
Nearly two weeks after the debate, Roubini attacked cryptocurrencies again with his article “The Great Crypto Heist”. The article began with inflammatory remarks on cryptocurrencies and regulators’ attitude towards them –
“Cryptocurrencies have given rise to an entire new criminal industry, comprising unregulated offshore exchanges, paid propagandists, and an army of scammers looking to fleece retail investors. Yet, despite the overwhelming evidence of rampant fraud and abuse, financial regulators and law-enforcement agencies remain asleep at the wheel.”
The article went on to describe the problems with BitMEX, namely, its unregulated nature and that it’s business model that involved “ peddling to “degenerate gamblers” (meaning clueless retail investors) crypto derivatives with 100-to-one leverage”. Roubini further explained that “with 100-to-one leverage, even a 1% change in the price of the underlying assets could trigger a margin call and wipe out all of one’s investment”.
Further, Roubini accused the platform of charging high fees and drawing the investors’ savings into a “liquidation fund” that was disproportionately large for avoiding counter-party risk. The crypto skeptic also shared that BitMEX insiders had revealed to him that the exchange was not doing anything to stop terrorists and other criminals from Russia and Iran who were using the exchange for money-laundering at a massive scale. 
The platform’s condemnation continued with Dr. Doom saying that it was not following adequate AML/KYC regulations and that US and UK investors, who were not allowed to use the platform due to regulations, were using it anyway by masking their IP addresses with standard VPN applications.
The severe consequences for BitMEX
Rumors suggest that the article and the Taipei tangle triggered CFTC’s probe into BitMEX’s operations. The probe, reportedly aimed at investing US investors’ accounts on BitMEX was announced on July 19, and by the end of July, the platform had experienced over half a billion dollars in outflows. 
BitMEX’s website has also dropped in popularity. From its #11,851 rank on July 19, it has dropped to #12,763 on Alexa.com. BitMEX’s Twitter account was last updated on July 15, while Arthur Hayes also went silent on Twitter on July 12 and updated his account with a cryptic tweet on July 31. 
Hayes’ tweet has been trolled by Twitter users and they have accused him of being a coward and going undergoing when his company is going through a probe. 
The post Roubini’s “The Great Crypto Heist”, Amid CFTC Probe BitMex Bleeds $524M in Outflows appeared first on Coingape.
Source: CoinGape

“Dr. Doom” Attacks Cryptocurrencies Again, Proposes Jail Term for Crypto Hodlers

Renowned Bitcoin skeptic and economist, Nouriel Roubini who is famously known as Dr. Doom, has attacked cryptocurrencies again, this time, insinuating that cryptocurrency holders have been “arrogantly flouting all criminal laws/regulations as if they are above the law.
Now, Roubini has decided to attack the cryptocurrency users again and this time, not just Arthur or BitMEX, but coming against a whole larger population of cryptocurrency enthusiasts. According to Roubini,
“Criminality is standard in crypto land. 1000s of folks in crypto belong to jail n will end up there soon. They have been arrogantly flouting all criminal laws/regulations as if they are above the law under the b/s fig leaf of “censorship resistance”: an excuse for sheer sick greed!”
Roubini: “Cryptocurrencies Are A Tool For Money Laundering”
Roubini’s tweet comes as a comment on Modern Consensus’s tweet from November 2018 about Tether hiring Leonardo Real, ex quality control manager at Bank of Montreal’s anti-money laundering office, as its Chief Compliance Officer. Modern Consensus’ tweet is linked to its article on why Real makes for an interesting choice as Tether’s CCO as he previously had written articles on how cryptocurrencies were being used for money laundering by drug and arms dealers.
Source: Twitter
Crypto Enthusiasts Respond To Roubini’s Tweet
Roubini’s tweet has generated both support and backlash from Twitter users. While some have supported Roubini’s stance, others have made counter tweets implying that traditional financial institutions like banks are much more involved in criminal activities than crypto.
Source: Twitter
Roubini regularly lambastes cryptocurrencies on his Twitter account and while speaking at public events. In July, at the 2019 Asia Blockchain Summit, Nouriel Roubini and BitMEX’s Arthur Hayes had engaged in a  “duel-like” debate on cryptocurrencies in Taipei. Both the parties had later released video clips of the tangle, which Nouriel later claimed, to have been “heavily edited” in Hayes’ case.
The events had escalated into an issue of national concern as Roubini ramped up a campaign against Arthur Hayes and his cryptocurrency exchange and derivative trading platform, BitMEX, which led to CFTC reviewing the exchange. The efforts proved productive for Roubini and the exchange’s trading volume crashed heavily and its Twitter handle stopped getting updated. Almost nothing was heard of Hayes himself until he recently tweeted “I traded in a yacht for the jungle. See y’all in September.”
Hayes’ cryptic tweet was trolled by Twitter users who accused him of going underground when his company is being probed by the CFTC.
 
The post “Dr. Doom” Attacks Cryptocurrencies Again, Proposes Jail Term for Crypto Hodlers appeared first on Coingape.
Source: CoinGape

Bitcoin slides following $100 million liquidation on BitMEX

The world of traditional financial assets may be celebrating a weekend and getting a break now. However, the cryptocurrency space does not sleep, with the world’s largest cryptocurrency, Bitcoin, recording yet another major dump in its valuation, at press time. Over the past few weeks, the king coin has repeatedly fallen in the market; falls […]
The post Bitcoin slides following $100 million liquidation on BitMEX appeared first on AMBCrypto.
Source: AMB Crypto

Crypto Derivatives market will continue to boom, despite present bearish slump

Over the last few years, cryptocurrencies have continued to develop and grow. 2019 was a watershed year in this regard as it saw more and more exchanges opening their arms to the crypto derivatives market. In fact, 2019 witnessed record volumes on crypto derivatives exchanges. Earlier this year, it was observed that BitMEX leveraged over […]
The post Crypto Derivatives market will continue to boom, despite present bearish slump appeared first on AMBCrypto.
Source: AMB Crypto

Justin Sun’s guest list gets a new addition, Bakkt to launch user testing for BTC Futures and more

Crypto News – 22 July – Justin Sun’s guest list gets a new addition, Bakkt to launch user testing for BTC Futures and more Don’t forget to follow us for our daily videos pic.twitter.com/7xkcVpW9FB — AMBCrypto (@CryptoAmb) July 22, 2019 Crypto News – 22 July Tron hits a home run: The Tron community celebrated after it […]
The post Justin Sun’s guest list gets a new addition, Bakkt to launch user testing for BTC Futures and more appeared first on AMBCrypto.
Source: AMB Crypto

BitMEX CEO Arthur Hayes Goes Mum amid CFTC Probe Rumor

Three days after Bloomberg published a report about BitMEX facing a regulatory investigation, the crypto derivatives exchange is still without an explanation.
A quick look at the Seychelles firm’s official social media handles, including an otherwise active Twitter page of founder & CEO Arthur Hayes, shows no response about the current scandal. As BitMEX goes mum on the matter, the exchange is witnessing a more massive outflow of bitcoins from its wallet reserves. Twitterati Token Analyst on Saturday noted that BitMEX processed $85 million worth of crypto withdrawals on a 24-hour timeframe. At the same time, the exchange processed deposits of only $12 million.

24H BTC exchange on-chain flows:#binance: $58M in | $54M out#bitstamp: $52M in | $50M out#bittrex: $4M in | $5M out#poloniex: $6M in | $4M out#bitmex: $12M in | $85M out
See more at https://t.co/6AFFM1D63p
— TokenAnalyst (@thetokenanalyst) July 20, 2019

The probe, launched by the Commodity Futures Trading Commission (CFTC), focuses on whether BitMEX, a non-US entity, offered services to the American citizens. In its response to Bloomberg, BitMEX said it “does not comment on any media reports about inquiries or investigations by government agencies or regulators.”
Nouriel Roubini Attacks BitMEX – Again
BitMEX and its founding partners’ silence prompted an increase in verbal attacks from their critics. Noted economist Nouriel Roubini, who debated Hayes during the latest Asia Blockchain Summit in Taiwan, weaponized the Bloomberg report to reiterate his objection. He supported the investigation led by the Commodity Futures Trading Commission against BitMEX as he tagged Hayes’ official Twitter handle in a majority of his tweets.

Agreed. I rekt @CryptoHayes in the debate and now he is in deep trouble as the @CFTC is investigating him and his @BitMEXdotcom racket https://t.co/30GAVqk0Ob
— Nouriel Roubini (@Nouriel) July 21, 2019

“Hayes indeed got [totally] rekt at the conference,” Roubini said in a tweet. “Then [he] tried to be cocky till I destroyed him in public and exposed BitMEX scams in my ProSyn article. Then he was hit with the CFTC investigation. So for a week, he has been [quietly] hiding in his gilded Seychelles cave.”

Criticism also came from inside the cryptocurrency community. Scott Melker, a crypto trader, associated with TexasWest Capital, supported Roubini on his comments about BitMEX. He shared his tweet published on April 26, stating that what Roubini said in the recent days is something he is warning the community about for a long time. Excerpts:
“The existence of Bitmex boggles my mind. The platform can effectively steal your money whenever they want (failed stop loss, system overload), blame in on the poor tech and return nothing. It’s the biggest and most impressive scam I’ve seen. And you all accept this as normal.”

You may not be a fan of @Nouriel, but he is spot on regarding Bitmex, and I have personally described these practices via twitter a number of times. Arthur should not have poked this nest. https://t.co/MX7uM8aLcL
— The Wolf Of All Streets (@scottmelker) July 19, 2019

BitMEX Defense from Past
Hayes, in his debate with Roubini, said he does not believe the US should act as a trendsetter when it comes to regulating financial organizations. The statement, in turn, followed BitMEX’s decision to quit the North American market after the crackdown by the Canadian regulatory body Autorité des marchés financiers (AMF).
An external spokesperson said in January that BitMEX has refrained from offering services to US citizens since 2015. He added that users, nevertheless, attempt to trade on their exchange using virtual private network services.
“BitMEX has always retained the right to close any accounts and to liquidate any open positions where any BitMEX trading participant has given false representations as to their location or place of residence,” the spokesperson clarified.
The post BitMEX CEO Arthur Hayes Goes Mum amid CFTC Probe Rumor appeared first on NewsBTC.
Source: New feedNewsBTC.com

CFTC Investigates Crypto Exchange BitMEX Over Client Trades

Coinspeaker
CFTC Investigates Crypto Exchange BitMEX Over Client Trades
The U.S. Commodity Futures Trading Commission (CFTC) is reportedly probing crypto derivatives exchange BitMEX to determine whether it broke rules by allowing U.S. traders on its platform.
CFTC Investigates Crypto Exchange BitMEX Over Client Trades

Continue reading at Coinspeaker
Source: CoinSpeaker

Ethereum whale linked to flash crash on Bitstamp resurfaces with a massive buy order

An Ethereum whale is speculated to have caused a market crash on July 14, with a sell order of approximately 15,000 ETH pulling the price of Ethereum down from $290 to $190. This crash is understood to have bled over to Bitcoin, contributing to the king coin’s price slumping from $10,800 to $9,100, a massive […]
The post Ethereum whale linked to flash crash on Bitstamp resurfaces with a massive buy order appeared first on AMBCrypto.
Source: AMB Crypto

Former EXMO Analyst Pavel Lerner About His Kidnapping, Security, and New Job

Coinspeaker
Former EXMO Analyst Pavel Lerner About His Kidnapping, Security, and New Job
After keeping silence for more than a year after kidnapping, former EXMO analyst Pavel Lerner has given his first interview to the media.
Former EXMO Analyst Pavel Lerner About His Kidnapping, Security, and New Job

Continue reading at Coinspeaker
Source: CoinSpeaker

Roubini Calls Arthur A “Thug” In New Anti-BitMEX Struggles

Well known Economist turned crypto critic, Nouriel Roubini has stepped up his game on back lashing popular cryptocurrency exchange, BitMEX and its CEO, Arthur Heyes by instigating that BitMEX was a den of criminals involved in subtle illegalities and indeed called Arthur Hayes “a thug” in the process.
Nouriel Roubini took to his twitter handle to announce a platform where he claimed to have exposed the ugly truths about Arthur Hayes and his company to the public. He maintained that BitMEX was being used by Arthur to constitute illicit evasion of Anti-Money Laundering (AML)/ Know Your Customer (KYC) policies, front running, insider trading, massive scale money laundering and gouging of clients.
Exposing BitMEX’s Ugly Truth
As he seized the opportunity to unveil his new work of literature tagged “The Great Crypto Heist| by Nouriel Roubini”, he urged his followers and the crypto community at large to consider following his account of the targeted victims.
According to Roubini,
My new column where I expose the shady rekting racket that is @BitMEXdotcom run by the thug @CryptoHayes: evasion of AML/KYC, front-running, insider trading, massive scale money laundering, gouging of clients, etc.
The Great Crypto Heist by Nouriel Roubini https://t.co/79UsmlZxdr
BitMEX And Bitcoin
Following the debate at Taipei, where Arthur took on Roubini to debate a series of topics including bitcoin and Bitmex, Arthur had said that the community loved speculating and BitMEX was a platform to help them do so more efficiently. As Roubini believed BitMEX to be a predator which feeds on customers irresponsibility in trading leverage, he argued that BitMEX’s x100 leverage option was doing more harm than good to its customers. In fact, according to Roubini, a considerable percentage of BitMEX’s income depends on liquidations derived from leverage trading.
The Common Enemy
Bitcoin and Arthur Hayes seem to have a common enemy- Roubini. The popular crypto critic never misses an opportunity to air his opinion (mostly the negativities) on bitcoin at any given time. While he tried to kill two birds with one stone, he also took a jab at bitcoin and insinuated that it wasn’t a typical currency.
Going by the last 24 hours record in which bitcoin had crashed by 14% to record a price $9480, he took great pleasure in calling Bitcoin and other altcoins (which he referred to as ” shitcoins”) a joke!
According to Arthur’s tweet,
Bitcoin down 14% in last day to below 9.5K! Ouch! It must hurt to get so rekt so fast! Calling bitcoin a currency – let alone 1000s of other shitcoins – is a joke: they are not a unit of account, they are not a means of payments (5tps) and no stable store of value (-14% in a day)
The post Roubini Calls Arthur A “Thug” In New Anti-BitMEX Struggles appeared first on Coingape.
Source: CoinGape

With Facebook and Netflix Involved, Are We Heading Into a New Era of Crypto Space?

Coinspeaker
With Facebook and Netflix Involved, Are We Heading Into a New Era of Crypto Space?
With institutions now firmly in on the game, crypto is entering a new era. This is great news for retail investors, as many of funds, derivatives, and other financial instruments are also open to individuals now.
With Facebook and Netflix Involved, Are We Heading Into a New Era of Crypto Space?

Continue reading at Coinspeaker
Source: CoinSpeaker

BitMex Shares Part 2 of CEO and Nouriel Roubini Battles Over Crypto v/s Fiat v/s Digital

So round 2 debate of the Tangle in Taipei, conducted between BitMEX boss, Arthur Hayes and Dr. Doom (Nouriel Roubini) has recently revealed. While the result of the debate seems nothing specific yet, the crypto community is calling it just “Hilarious”.
Round 2 – Crypto v/s Fiat v/s Digital
The best part of the debate that makes everyone exciting is that – only the Asia Blockchain Summit organizer and the BitMEX has the tapes as it was excitedly held behind the closed doors. Now the BitMEX exchange has released a second round of the tape.
The first round was based on the topic “Holy Trinity in Crypto – Decentralization, security, and scalability” wherein Roubini calls whole system “Bitcoin” as corrupt and ridiculous, and Arthur seems more financial privacy in it. Whereas the second round was focused on Crypto v/s Fiat v/s Digital.

In a second round of the tape, the footage reveals that American Economist and NY Professor, Nouriel Roubini shouts at crypto community and its leaders, yelling as “there are terrorists, criminals, tax evaders, human traffickers. Continuing his angry tone, he said there are all sorts of criminals out there’s the lots of shady stuff happening.
He further bashed at Bitcoin, shouting that this shitcoin is against the whole idea of cryptocurrency. At the center of the whole debate, Roubini pointed out at the business model of BitMEX and says that it is completely exploitative for retail investors. Above all, he believes that BitMEX is operating without sufficient regulations.
While few think the video is just Hilarious, the Moderator Andrew Neil hushed Roubini during a longer argument and shouted “Quite”. He quickly remarked
“There’s no point in the two of you talking over each other because we can’t understand a word you’re saying.” “It’s actually hard enough when you’re not talking over each other,”
Benefits of Crypto
When asked about what are the main benefits of Crypto, Arthur took up the mike and said “We need a choice” and Bitcoin represents an opportunity.
Bitcoin represents an opportunity instead of using courts laws and violence to govern how money is transferred between individuals and parties, we use open source software cryptography and math now which one successful, Arthur said. As a society, we definitely need a choice and that is what bitcoin represents a choice for a different way to govern financial transactions
While given the opportunity to Roubini on the same topic, he referred revolution is already based on artificial intelligence, big data and the Internet of Things. He further compared transactions over Bitcoin v/s transactions via Visa and states that “bitcoin is not scalable, it does five transactions per second whereas VISA does 25,000 transactions per seconds” and explains that;
There are payment systems today used by billions of people for billions of transactions a day – not 5 transactions per second and it (Bitcoin) is not scalable.
In a longer harangue, Roubini again directs back his thought to Arthur and elaborates, It is a business of one shitcoins being traded against another shitcoins and middleman like him (BitMEX/Arthur), they make money.
They don’t consider – whether it goes up, goes down, as long as their volume backs out the Commission, Roubini said.
Image Source – Video snap
The post BitMex Shares Part 2 of CEO and Nouriel Roubini Battles Over Crypto v/s Fiat v/s Digital appeared first on Coingape.
Source: CoinGape