Today BitMEX, one of the main crypto exchanges, has been accused of not implementing the necessary measures to prevent money laundering. Since the news broke, the price of Bitcoin has seen a major pullback.
Accusations provoke pushback in Bitcoin price
Today the United States Commodity Futures Trading Commission (CFTC) filed a civil enforcement action against BitMEX and the crypto markets are not very happy about it.
Specifically, the charges under which BitMEX are being accused relate to the operation of a trading platform that has not been registered in the country. In addition to violations of established regulations.
Thus, among the defendants are Arthur Hayes, Ben Delo and Samuel Reed, who have ownership of the exchange through a “labyrinth of corporate entities.”
Since the BitMEX news broke, Bitcoin (BTC), the leading crypto, took a step back. Going from being valued at $ 10,880 to $ 10,550 in a matter of minutes.
Currently the price of the crypto is located at $ 10,630 according to the CryptoTrend tool, Crypto Online.
Jason Deane, Bitcoin analyst at Quantum Economics, explained to Decrypt that this kind of movement should come as no surprise given that it is news like BitMEX that scares new and inexperienced Bitcoin investors.
For its part, BitMEX completely denied the allegations. In a blog post, the crypto exchange lashed out at the charges.
“From our early days as a startup, we have always sought to comply with applicable US laws …”, the statement noted.
What will be the impact of the BitMEX news on the price of Bitcoin in the next few hours?
Research: Crypto Exchanges Have Weak KYC!
On the very same topic of regulatory compliance, a study by CipherTrace he found that 56% of crypto exchanges lack strong know-your-customer (KYC) practices.
This means that a large part of crypto exchanges are not doing their best to force their clients to prove their identities. In fact, it also found that 81% of decentralized exchanges (DEX) have little or even no user verification.
Trademark of «Euro Digital»
According to a Bloomberg report, on September 22 the European Central Bank filed a trademark application for the term “digital euro.”
Therefore, the news is a clear demonstration that the previously revealed intentions do not seem to remain only in the idea. So soon we could have a digital euro which, as we pointed out earlier, will not be a substitute for fiat but a complement.
Renewable energy for crypto mining
The University of Cambridge conducted a study that found that 76% of cryptocurrency miners use electricity from renewable energy sources.
It also found that more than 39% of the total energy consumed by crypto, such as Bitcoin and Ethereum, comes from renewable energy sources.
Miner manipulate Ethereum blocks
Frank Topbottom, an anonymous researcher, highlighted Yesterday several compelling cases of “miner’s extractable value” or, also known as MEV.
This is how this term refers to the amount of value that crypto miners can extract from the system through the initial execution. Previously, experts had already pointed to the MEV as a potential exploitation pattern for DeFi.
In this way, the researcher pointed to several cases of suspicious transactions where a small set of crypto addresses appeared first on the block despite having a lower fee.
In a few lines …
- Andre Anjos, a Grammy Award-winning musician, launched a new community token called $ RAC.
- Jack Dorsey points out that Bitcoin and Blockchain are the future of the social network.
- The activity of the crypto Bitcoin SV has seen a 761% increase over the last few days.