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German Crypto License Obtained By Bitpanda’s Local Branch

Customers in the European nation can now avail of custody and proprietary trading services from the Austrian cryptocurrency exchange.

 

Bitpanda, an Austrian exchange, announced on Tuesday that its local branch had acquired a cryptocurrency license in Germany.

 

Bitpanda Asset Management GmbH claimed in a news release that it may now independently offer crypto custody as well as proprietary trading for crypto assets for German residents thanks to the license from the German Federal Financial Supervisory Authority (BaFin).

 

Additionally, Bitpanda will be able to keep an order book and directly market services for cryptocurrency assets, allowing them to offer a secure and regulated environment for German consumers to invest in a variety of cryptocurrencies, according to the firm.

 

Global regulators are keeping a careful eye on the cryptocurrency market as it recovers from the collapse of the largest cryptocurrency exchange, FTX. The European Union, of which Germany is a part, just completed its thorough framework for regulating cryptocurrency issuers and service providers seeking to operate in any of the 27 member nations of the trade union.

 

The European Union’s Markets in Crypto Assets (MiCA) should be the global standard for crypto regulation, according to Stefan Berger, the German legislator in charge of guiding the draft legislation over the European Parliament after FTX declared bankruptcy in the United States.

 

MiCA won’t go into force, however, until at least 2024, and EU nations like Germany and France are still issuing local regulatory permits, despite this.

 

Regulatory approval for Bitpanda, which last year became Austria’s first fintech unicorn, has been granted in several European nations, including Spain, France, Austria, Italy, the Czech Republic, the United Kingdom, and Sweden.

 

Bitpanda co-founder and CEO Eric Demuth said in a statement to the press that the German license has been in the works for several months.

 

Demuth, who appeared to be referring to allegations that FTX misappropriated customer funds for engaging in dangerous trades, said: “That implies being regulated and it means a strong separation of consumer and corporate assets, which is sadly not the case everywhere these days.”

 

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Estonian Couple Charged With $575 Million Cryptocurrency Fraud

Two individuals have been detained by Estonian police on suspicion of orchestrating a $575 million (£485 million) cryptocurrency fraud that claimed thousands of victims.

 

Sergei Potapenko and Ivan Turogin, two Estonians, are wanted by the US for extradition after Estonian police and the FBI jointly investigated the case.

 

The two 37-year-olds are accused of convincing individuals to invest in HashFlare, a bitcoin mining service, and Polybius, a phony online bank.

 

There is a US indictment on file.

 

According to a statement from the US Department of Justice (DoJ), the two are charged with conspiring to commit money laundering and wire fraud, each of which carries a maximum 20-year prison sentence.

 

According to the announcement, the defendants have appeared in court in Tallinn, the capital of Estonia, and are being detained pending extradition to the US.

 

Their reps did not immediately respond with any comments.

 

The two allegedly misled victims by giving them the opportunity to invest in HashFlare’s bitcoin mining operations, according to the DoJ, which provides specifics of the alleged plan.

 

Computing power is extensively used during the crypto mining process, which employs computers to create virtual currency for financial gain.

 

From 2015 to 2019, HashFlare contracts are estimated to have been bought by customers worldwide for more than $500 million. But it’s claimed that the operation exaggerated its powers.

 

According to the DoJ, victims were also promised dividends if they made investments in Polybius, a virtual bank that Mr. Potapenko and Mr. Turogin claimed they had founded.

 

The defendants allegedly raised $25 million in this manner, but no bank was ever established.

 

They purchased at least 75 homes and high-end vehicles using shell businesses designed to launder illegal money, according to the DoJ.

 

The collaborative investigation, which encompassed 100 individuals, including 15 from the American side, was described as “lengthy and wide” by Oskar Gross of the Estonian police cyber crime branch.

According to him, it was “one of the biggest fraud instances we’ve ever had in Estonia,” the ERR news agency in Estonia said on Monday.

 

Authorities in the nation also issued a warning, stating that technology had “broadened the possibility of fraud.”

 

After the failure of FTX, the second-largest cryptocurrency exchange in the world, the lawsuit arises amid increased trepidation in the cryptocurrency sector.

 

According to a court document, the company filed for bankruptcy in the US last week and owes its 50 top creditors over $3.1 billion (£2.6 billion).

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Chart Analyst: Bitcoin Will Perform Better Than Ether in the Upcoming Months

As evidence of a bullish breakout, the Bitcoin-to-ether ratio has surpassed its 50-day moving average.

 

One chart expert anticipates BTC, the most valuable cryptocurrency by market cap, to remain quite resilient as Bitcoin (BTC) and ether (ETH) trend downward amid persistent concerns over FTX contagion.

 

After taking into account the recent rise of the Bitcoin-ether ratio over the 50-day simple moving average, Katie Stockton, founder, and managing partner of Fairlead Strategies stated in a note to clients that “we expect Bitcoin to outperform in the next months” (MA).

 

In light of ETH’s newly discovered deflationary cryptocurrency appeal, numerous fundamental analysts disagree with Stockton’s prediction and predict that ether will outperform Bitcoin.

 

On Sunday, the Bitcoin-ether ratio rose over the 50-day moving average and was 14.50 at the time of publication.

 

One of the most popularly followed technical lines, the 50-day moving average (MA), has typically worked well as a breakout signal. Three of the last four rises above the average for the ratio resulted in significant gains.

 

The most recent breakout supports the bullish “higher low” of 12.70 that was established earlier this month. When selling stalls at a price low higher than the previous low, a higher low is produced, and this is regarded as the first indication of an oncoming bearish-to-bullish trend reversal.

 

After posting a higher low earlier this month, the Bitcoin versus ether ratio “has cleared the 50-day MA,” according to Stockton. The ratio’s next barrier is at the 200-day moving average.”

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After the FTX Crash, Lawmakers Demand Fidelity Discontinue Its Bitcoin Retirement Plan

Following the failure of cryptocurrency exchange FTX, U.S. Senators today wrote another letter to financial behemoth Fidelity Investments cautioning it not to provide Bitcoin to its clients.

 

Senators Tina Smith of Minnesota, Richard Durbin of Illinois, and Elizabeth Warren of Massachusetts signed a letter requesting that Fidelity discontinue its 401(k) Bitcoin plan.

 

Boston-based America’s top 401(k) provider is Fidelity, one of the largest asset managers in the world. The business introduced a new product in April that gives businesses and employees who choose to participate access to Bitcoin.

 

However, in May, Senators Warren and Smith wrote to Fidelity to warn them against the plan. A new letter was issued this time, and Senator Durbin added his signature to it.

 

In the letter sent on Monday, Fidelity Investments was urged to “seriously reconsider its decision to permit 401(k) plan sponsors to expose plan participants to Bitcoin.”

 

The senators continued, “It is patently evident that the digital asset business has major challenges as demonstrated by the recent collapse of FTX, a cryptocurrency exchange.

 

The financial services sector is rife with charismatic up-and-comers, cunning con artists, and self-declared investment advisors who push financial products with little to no transparency.

 

One of the biggest cryptocurrency exchanges in the past, FTX went out of business last month after losing billions of dollars in investor money. The exchange was allegedly using client funds through its sibling trading company Alameda Research to place dangerous investment wagers.

 

According to a document submitted by FTX on Saturday, the exchange owes its top 50 creditors $3.1 billion.

 

The former CEO of the exchange, Sam Bankman-Fried, was among the top 20 largest donors to Joe Biden’s 2020 U.S. presidential campaign, giving $5.2 million. This is significant because FTX is one of the biggest financial backers of political campaigns.

 

The crypto market was shaken by the crash, and most digital assets fell after the news.

 

The letter today noted that the U.S. was “already in a retirement security crisis” and that “retirement savings should not be exposed to undue risk” in order to make matters worse.

 

Fidelity presently manages more than $9.9 trillion and has made significant progress in the realm of digital assets.

 

An early-access queue for its newest cryptocurrency product, an app that lets retail investors trade Ethereum and Bitcoin from their phones without incurring commission costs, was unveiled earlier this month.

 

 

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After FTX’s Demise, Cryptocurrency Lender Genesis Denies Plans to File For Bankruptcy

After stopping withdrawals days ago in response to the failure of cryptocurrency exchange FTX, cryptocurrency lender Genesis has denied that it is on the verge of filing for bankruptcy.

 

On Monday, Genesis declared that it has “no plans” to declare bankruptcy anytime soon and will instead try to reach a “consensual” agreement.

 

In an email reply to Al Jazeera, a spokeswoman said, “We have no plans to file bankruptcy imminently.” “Our objective is to reach a mutually agreeable resolution to the current situation without declaring bankruptcy. Genesis keeps in touch with its creditors in a positive way.

 

According to a previous story by Bloomberg News, Genesis, which has offices in New York City, London, and Singapore, was having trouble finding new money for its lending section and had warned investors it would declare bankruptcy if it did not.

 

The crypto investment bank reportedly spent the previous few days trying to raise at least $1bn in new capital, according to the report, which cited people with knowledge of the situation.

 

The Wall Street Journal reported on Monday, citing persons familiar with the situation that Binance had been approached by Genesis to invest, but had declined to owe to potential conflicts of interest.

 

According to the Wall Street Journal article, Genesis also contacted the private equity company Apollo Global Management for financial assistance.

 

Binance chose not to respond. Apollo has been contacted by Al Jazeera for comment.

 

One of the biggest cryptocurrency lenders, Genesis Global Capital, this week put a halt to customer withdrawals because of what it claimed was a liquidity deficit brought on by an increase in withdrawal requests following Sam Bankman-collapse.

 

The third-largest cryptocurrency exchange, FTX, collapsed earlier this month, shocking the industry and drawing analogies to the 2008 collapse of Lehman Brothers as well as accusations of fraud and poor management.

 

Sam Bankman-Fried, the founder of FTX who left his position as CEO earlier this month, spoke with Vox last week and appeared to retract some of his comments. He expressed regret for his decision to file for bankruptcy protection and accused regulators of failing to protect consumers.

 

Investors are currently suing Bankman-Fried and other celebrities who pushed FTX for $11 billion.

 

According to reports, the US Department of Justice and the Securities and Exchange Commission are also looking into possible securities law violations by Bankman-Fried or his business.