After a major hack in 2024, Indian cryptocurrency exchange WazirX has started operations. Regulators such as the UK’s Financial Conduct Authority (FCA) are tightening their grip on crypto exchanges in other regions as well.
The FCA has issued hundreds of warnings against unregistered crypto exchanges, including Justin Sun’s HTX.
In Russia, the Ministry of Finance is reportedly preparing to introduce further regulations for the cryptocurrency industry.
Meanwhile, European regulators are seeking additional sanctions against Russian crypto exchanges. From cryptocurrencies to oil, EU officials are growing concerned that Russia is evading sanctions over the Ukraine war.
Bitcoin (BTC) government bonds remain popular despite losses for some companies. In the US, data services company Hyperscale Data has allocated $60 million to Bitcoin on its balance sheet.
Read more in this week’s Global Express:
WazirX Shutdown Ends Following July’s $230 Million Hack
On Thursday, WazirX CEO Nischal Shetty announced that the platform will resume trading on October 24th. The exchange will initially offer zero-fee trading for the first 30 days. It is also gradually introducing trading pairs with the rupee, starting with Tether’s USDt (USDT) stablecoin.
WazirX has been inactive since last summer, when the Lazarus Group, a hacker group linked to the North Korean government, stole about $240 million in cryptocurrencies from the exchange. Before the hack, WazirX disclosed that it had assets of approximately $500 million. This means that hackers have stolen almost half of all cryptocurrencies on the platform.
The exchange, while catering to its Indian customer base, underwent a restructuring program at the Singapore High Court through its Singapore-based parent company Zettai. After rejecting several proposals earlier this year, the court approved the final restructuring program on October 13.
Not all WazirX creditors are happy. The exchange is still in litigation with Indian cryptocurrency app CoinSwitch, which is suing WazirX for failing to recover lost funds. CoinSwitch’s $5.4 million claim was recently upheld by the Bombay High Court.
UK FCA sues Justin Sun’s HTX
The UK market regulator FCA filed a lawsuit against cryptocurrency exchange HTX (formerly Huobi) on October 22nd. According to Bloomberg, the exchange is owned by Justin Sun. HTX also lists Sun as a global advisor.
The FCA claims that HTX is not licensed to operate in the UK and is therefore in breach of the UK’s financial incentive scheme. The action, brought by the FCA in London’s High Court on Wednesday, is “part of our commitment to protect consumers and maintain the integrity of the UK’s financial markets”. HTX has not released any public statement regarding this accusation.
Related: UK lifts ban on virtual currency trading tickets as ‘market has evolved’
HTX is not the only exchange targeted by the FCA. The agency has issued a number of complaints against unregistered exchanges and virtual currency companies serving UK customers. The increased scrutiny of crypto-related businesses follows recent rule changes by the FCA to allow crypto exchange-traded notes. He expressed the view that the market is sufficiently mature.
Russia prepares new cryptocurrency regulations. EU passes virtual currency sanctions
Russia’s Ministry of Finance is preparing to introduce sweeping new regulations for the crypto industry, including legislation on cross-border crypto payments.
Finance Minister Anton Siluanov announced the new measures after a strategic meeting overseen by Prime Minister Mikhail Mishustin on Tuesday, Interfax news agency reported. Siluanov noted that the government is observing cryptocurrencies being used to send money abroad and pay for imported goods.
Late last year, the central bank introduced an experimental system allowing the use of cryptocurrencies to pay for imported goods. All other forms of cryptocurrency payments are prohibited in Russia. Siluanov said his ministry had reached an agreement with the central bank to “bring order” to financial markets and strengthen supervision.
Russia has employed a number of methods, including cryptocurrencies, to circumvent wartime sanctions. Just two days after the strategic meeting, the EU passed the 19th round of sanctions against Russia. This included significant sanctions against the Russian state-backed stablecoin A7A5.
“Stablecoin A7A5…is emerging as a prominent tool for financing activities in support of wars of aggression,” the European Council said. Sanctions have been imposed against the developers, publishers and operators of the platforms where large amounts of A7A5 were recorded. Trading is also prohibited in the EU.
US-based Hyperscale allocates $60 million to Bitcoin treasury
US-based data services company Hyperscale Data has announced that its Bitcoin vaults total $60 million, based on October 19 prices. Bitcoin treasury accounts for nearly 66% of the company’s market valuation.
Related: Bitcoin Treasury Fail: These Companies Made Bad Bets on BTC
The company’s subsidiary, Centinum, has approximately $16 million in Bitcoin on its balance sheet. Hyperscale also allocated approximately $43 million in cash to Centinum to purchase additional Bitcoin. Hyperscale Executive Chairman Milton Ault said, “Our disciplined dollar-cost averaging strategy continues to prove its strength…Bitcoin price volatility has provided a meaningful opportunity to build our position with a systematic and advantageous long-term average.”
Buoyed by the enthusiasm of Bitcoin maximalist and strategic chairman Michael Saylor, more and more companies are starting to buy and hold Bitcoin. Strategy is the world’s largest publicly traded Bitcoin holder and has been very successful in purchasing Bitcoin.
But not all companies are so lucky. Due to market fluctuations, the market value of some companies has fallen below the amount of their Bitcoin holdings. If this continues for a long time, companies will be forced to liquidate their holdings and the situation could deteriorate rapidly.
KindlyMD CEO David Bailey recently said that the hype around Bitcoin Treasuries is starting to die down and investors are getting better at identifying bad Treasuries.
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