Binance crypto exchange saw departure of 10 key executives in 2023. Here’s the list

September 7, 2023 Coin Telegraph

Binance

Binance CEO Chang Peng Zhao sought to dismiss concerns around executive departures, claiming these executives are moving into bigger roles outside Binance, and said reports are market FUD.

The world’s leading crypto exchange by trading volume Binance has seen the departure of 10 key executives from various departments in the first nine months of 2023. While executive departures from a company are a norm based on their preset contractual obligations, the number of executives leaving Binance amid growing regulatory troubles has been a key talking point in the crypto community.

The latest to join the list is Helen Hai, the executive vice president of the crypto exchange, who announced her resignation from her post on Sept. 6. On the same day, Gleb Kostarev, Binance’s vice president of Eastern Europe, Turkey, the Commonwealth of Independent States, Australia, and New Zealand, also announced his resignation, as did Russia and CISgeneral manager Vladimir Smerkis.

The list of key executives to leave Binance in 2023:

September 6, 2023: Helen Hai, Binance Executive Vice President and Head of Global Fiat, announces resignation.
September 6, 2023: Vladimir Smerkis, general manager for Russia and CIS at Binance announced his departure.
September 6, 2023: Gleb Kostarev, Binance Vice President of Eastern Europe, Turkey, the Commonwealth of Independent States, Australia, and New Zealand, announces his resignation.
September 4, 2023: Mayur Kamat, Binance Product lead, announces resignation.
August 31, 2023: Leon Foong, Binance Head of Asia-Pacific, announces resignation.
July 7, 2023: Steven Christie, Binance senior vice president for compliance, announces resignation.
July 6, 2023: Patrick Hillmann, Binance's chief strategy officer, announces resignation.
July 6, 2023: Han Ng, Binance general counsel, announces resignation.
July 6, 2023: Steve Milton, Binance Global vice president of marketing and communications, announces resignation.
July 6, 2023: Matthew Price, Binance Senior Director of Global Investigations and Intelligence, announces resignation

Four top executives from Binance reportedly all left on the same day after Binance’s response to the Department of Justice investigation. A Fortune report claimed that these top executives were not happy with the crypto exchange's response. However, Binance CEO Chang Peng Zhao dismissed all such reports labelling them as FUD.

4. More FUD about some departures. Yes, there is turnover (at every company). But the reasons dreamed up by the “news” are completely wrong.

As an organization that has grown from 30 to 8000 people in 6 years, from 0 to the world’s largest crypto exchange in less than 5 months…
— CZ Binance (@cz_binance) July 6, 2023

Zhao took to X (formerly Twitter) to address the growing chatter around the departure of key executives again on Sept. 6. While reposting a Cointelegraph report on the Kostarev exit, Zhao said that many members from Binance are moving into bigger roles, some outside of Binance as well.

Some of our team members are growing into bigger roles, some outside of #Binance. Some are doing new exciting ventures. I even made intros/references for many of them. We are supportive of everyone. We are one community.

This also creates more growth opportunities within…
— CZ Binance (@cz_binance) September 6, 2023

Cointelegraph reached out to Binance to enquire about the community concerns around executive departures but Binance said they don’t have any comments to offer.

Most of the executives leaving the crypto exchange have said that their departure was routine and they share a good relationship with the crypto exchange and its CEO. However, the crypto community has become a bit more sceptical about exchanges post-FTX collapse.

Binance over the years has faced regulatory troubles in more than a dozen countries. The crypto exchange on-boarded many former government officials and compliance officers to help it mitigate the regulatory complexities, however, in 2023, many of these executives have left the crypto exchange.

Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?

Rejection of crypto bill exposes Aussies to ‘unregulated market’ — Senator Bragg

September 7, 2023 Coin Telegraph

Australia

Senator Andrew Bragg says rejecting his crypto bill will drive investment away from Australia but lawyers claim it's part of a bigger regulatory picture.

Australian investors will be left exposed to unregulated markets and investments will be driven away from the country if the Digital Assets (Market Regulation) Bill is rejected by parliament, the bill's author Senator Andrew Bragg has warned.

On Sept. 4, the Senate Committee on Economics Legislation recommended the Senate reject Bragg’s bill and suggested the government instead continue to consult the industry on developing crypto regulation.

The Committee’s chair, Labor Party Senator Jess Walsh, wrote in a report that it recommended the bill not be passed as it “fails to interoperate with the established regulatory landscape, creating a genuine concern for regulatory arbitrage and adverse outcomes to the industry.”

In emailed comments to Cointelegraph, Bragg criticized the committee’s recommendation saying it would “expose consumers to an unregulated market, and drive investment offshore.”

“The benefits of digital asset regulations are twofold: They protect consumers and promote market investment and activity. This was why these regulations were placed on the legislative agenda by the former Liberal government in October 2021.”

Bragg perceived the rejection of his bill as a largely partisan-motivated decision, due to the number of Labor Party members presiding on the Senate Committee and slammed their decision to oppose his draft bill claiming it “stalled the implementation of digital asset regulations in Australia.”

“Australia would have a regulated digital assets market. Instead, it is close to the end of 2023, and the government has no plan to implement these regulations,” Bragg said.

While Bragg blamed partisan politics, Liam Hennessey, partner at international law firm Clyde & Co., told Cointelegraph the rejection had more to do with a separate regulatory process — specifically the Treasury’s consultation paper on the government's “token mapping” exercise.

Hennessey said the recommended rejection of Bragg’s draft bill was “neither good nor bad” for crypto regulation in Australia.

“There’s no doubt that Senator Bragg's bill and the consideration and industry feedback it has received will be considered,“ he said. “The Senate is congested with legislation more broadly at present, so I do not think the delay is something that can be read into too much.”

“I think [Bragg’s] bill, and the work that went into it, will be valuable in informing the government's approach,” Hennessey concluded.

Last August the Labor government announced its token mapping exercise, which used the Treasury to “identify how crypto assets and related services should be regulated” and inform future regulatory decisions.

On Feb. 3 the Treasury released a public consultation paper on the exercise, announcing it as a foundational step in the government’s plan to regulate the digital asset market.

Since then, there’s been little mention of digital assets or the broader approach to regulating them from the government.

Bragg first introduced the Digital Assets (Market Regulation) Bill 2023 in March with the aim to “protect consumers and promote investors.”

The bill provides recommendations for regulating stablecoins, licensing exchanges and custody requirements.

The bill is before the Senate and is expected to be voted on during the next sitting session.

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Additional reporting by Helen Partz.

OKX crypto exchange enters final stage of Hong Kong VASP license application

September 4, 2023 Coin Telegraph

bitcoin regulation

Hong Kong regulators have only approved a handful of crypto exchanges to date that are permitted to offer crypto retail trading services.

OKX cryptocurrency exchange has entered the final stage before acquiring a virtual asset service provider license (VASP) in Hong Kong. The crypto exchange expects the final approval for a VASP license by March 2024.

In an interview, Li Zhikai, the global chief commercial officer of OKX, said that it is actively engaged in a dialogue with the banks and is currently waiting for the group to be issued a license and start a business. The crypto exchange has started the preparatory work, such as technology docking.

Hong Kong became a pro-crypto nation in 2023 and announced a licensing regime for crypto exchanges to offer their services to retail customers. While more than 80 crypto firms initially showed interest in opening an office in the country, only a couple of crypto platforms, such as HashKey and OSL, gained the necessary license to start retail crypto trading services.

HashKey started offering retail crypto trading services to Hong Kong users on Aug. 28. The regulatory body in the country has opened only Bitcoin (BTC) and Ether (ETH) trading for retail customers to cut back on the risk involved with investing in new crypto tokens. The regulations also put a 30% cap on investors that only allows them to invest one-third of their net income.

Apart from HashKey and OSL, Huobi and Gate.io have also applied for retail crypto trading services and are waiting for the regulatory nod. Previously, a Gate.io executive shared the regulatory experience in Hong Kong and told Cointelegraph that compared with other regulators, the Hong Kong Securities and Futures Commission has stricter requirements for virtual asset service providers. The regulator has made it compulsory for crypto platforms to offer insurance and compensation arrangement requirements to help protect clients. Apart from that, the crypto exchanges must hold 98% of assets in cold wallet storage.

Cointelegraph reached out to OKX for its views on the regulatory experience and expectations from the Hong Kong retail market but didn’t get an immediate response.

Magazine: Hall of Flame: Wolf Of All Streets worries about a world where Bitcoin hits $1M

China court declares virtual assets legal properties protected by law: Report

September 1, 2023 Coin Telegraph

bitcoin regulation

Despite a blanket ban on cryptocurrencies imposed by Beijing in 2021, many Chinese courts over the years have established that virtual asset holders have property rights.

The People’s Courts of the People’s Republic of China exercise judicial power independently and are not subject to interference by an administrative or public organization. These courts try criminal, civil and administrative cases as well as economic disputes.

The report titled “Identification of the Property Attributes of Virtual Currency and Disposal of Property Involved in the Case” acknowledged that virtual assets have economic attributes and thus can be classified as property, reported a local daily. Although China has deemed all foreign digital assets illegal by imposing a blanket ban, the report argues that virtual assets held by individuals should be considered legal and protected by law under the current policy framework.

The report also added suggestions to deal with crimes involving virtual assets and noted that since the money and property involved in the case cannot be confiscated, it should be based on the unification of criminal and civil law. Such cases should be treated separately to achieve a balanced protection of personal property rights and social and public interests.

China imposed a blanket ban on all crypto-related activities and banned foreign crypto exchanges from offering their services to mainland customers. However, despite a hostile national policy on digital assets, the Chinese courts have offered a contrasting stance on Bitcoin (BTC) and other digital assets over the years.

The first instance of such difference arose in September 2022, when a lawyer suggested that crypto holders in China are protected by the law in case of theft, misappropriation or breach of a loan agreement despite the ban on crypto. Later in May 2022, a Shanghai court affirmed that Bitcoin qualifies as virtual property and thus is subject to property rights.

China’s hostile stance against Bitcoin and other cryptocurrencies has been a long-drawn one. However, over the past few years, the government seems to have softened its stance. This was evident from the rise in China’s Bitcoin mining share, which dropped to zero post blanket ban but rose to take the second spot within a year.

A People’s Court in China published a report on the legality of virtual assets analyzing the criminal law attributes of these digital assets. The court in its report noted that virtual assets under the current legal policy framework are still legal property and protected by law.

Magazine: DeFi faces stress test, DoJ fears run on Binance, Hong Kong’s crypto trading: Hodler’s Digest, July 30 – Aug. 5

SEC delays decision on spot Bitcoin ETF applications from WisdomTree, Invesco, and Valkyrie

August 31, 2023 Coin Telegraph

Crypto community jubilant over Grayscale decision, but uncertainty remains

August 29, 2023 Coin Telegraph

bitcoin regulation

The court’s decision that the SEC has to consider Grayscale’s Bitcoin spot ETF application is good news for crypto but maybe not as impactful as some hoped.

The crypto community received the decision it had been hoping for when the District of Columbia Circuit Court of Appeals ruled on Grayscale Investments’ Bitcoin spot ETF application. The United States Securities and Exchange Commission (SEC) rejection of the application was overturned.

The decision was “a slaughterfest of the SEC arguments,” Cinneamhain Ventures founder Adam Cochran said on X (formerly Twitter). “This changes everything. Time to pay attention again,” influencer Miles Deutscher chimed in.

The initial enthusiasm was tempered by the understanding that the decision was limited in its scope and the SEC has options for its next steps. Grayscale released a statement in which chief legal officer Craig Salm said:

“We appreciate that the D.C. Circuit’s opinion acknowledged that this case presented a straight-forward question about equal treatment under the law.”

This more sober evaluation gained traction as analysts considered the SEC’s resourcefulness further.

“Gary Gensler and team are discussing how this can [be] made into a political win. [...] Will Gensler graciously accept defeat or talk about how these 3 judges got it wrong?” crypto lawyer John Deaton asked.

Blockchain Association chief policy officer Jake Chervinsky acknowledged the possibility that the SEC would accept defeat, calling that strategy “a face-saving narrative” and “the right move” after “a huge embarrassment.”

1/ Grayscale's victory over the SEC is *massive.*

It's very rare for a federal circuit court to find that an agency has violated the APA by acting arbitrarily and capriciously.

The DC Circuit just delivered a huge embarrassment for the SEC.

But the ETF isn't approved yet
— Jake Chervinsky (@jchervinsky) August 29, 2023

Others were less optimistic. “So far, every time they lose in court they just shamelessly say the judge got it wrong and pursue more shenanigans,” Delphi Labs general counsel Gabriel Shapiro said.

if a court finds that the government acted arbitrarily and capriciously it should have to pay the other side's legal fees -- if not, there's no consequence for bad government behavior.
— Palley (@stephendpalley) August 29, 2023

Shenanigans can be costly. “For many companies, fighting back is incredibly expensive (you will win, but you’ll be bankrupt when you do) or you’re a financial conglomerate where the SEC can fuck up the rest of your business in the meantime. Gangster behavior,” Zero Knowledge Consulting managing partner Austin Campbell said.

Live view of Garbitrary Gensler's office reading the court order that absolutely demolishes the SEC's efforts to defraud retail investors: pic.twitter.com/TfU1l5CLeV
— Austin Campbell (@CampbellJAustin) August 29, 2023

Crypto lawyer Jeremy Hogan reminded the community to beware of what it prays for. “Everyone, welcome ‘Big Money’ to the table. For better, or worse,” he said of the Grayscale win.

Magazine: SEC seeks appeal over Ripple, crypto prices plunge and EU debuts Bitcoin ETF: Hodler’s Digest, Aug. 13-19

Bitcoin may hit $100K by capturing ‘even 2 to 5% of gold’s market cap’ — Hut 8 VP Sue Ennis

August 28, 2023 Coin Telegraph

Bitcoin may hit 0K by capturing ‘even 2 to 5% of gold’s market cap’ — Hut 8 VP Sue Ennis

ASIC

New developments in the Bitcoin mining space have Hut 8 vice president Sue Ennis convinced that well-positioned miners will thrive after the next BTC halving.

The next Bitcoin halving event is less than nine months away, and the consensus opinion among analysts and investors is that the halving will send Bitcoin’s price to a new all-time high or even above $100,000.

Despite this belief, the absence of fresh inflow to the crypto market, the current macroeconomic headwinds and Bitcoin’s (BTC) recent price action below $30,000 do not inspire much confidence in this theory in the short term.

In a recent interview with Paul Barron, Hut 8 vice president Sue Ennis shared her thoughts on how the Bitcoin price will rise above $100,000 in the next year and how the upcoming halving will impact BTC miners. Hut 8 currently has a balance of 9,152 BTC in reserve, of which 8,305 is unencumbered. The company’s installed ASIC hash rate capacity sits at 2.6 exahashes per second, and Hut 8 mined 44.6 BTC in July.

In the interview, Barron inquired whether rising Bitcoin difficulty for miners could induce a fresh wave of sell pressure against BTC. Citing data from Hashrate Index, Barron observed that spikes in Bitcoin difficulty were followed by drops in BTC’s price.

*Bitcoin price, difficulty and difficulty adjustment. Source: Hashrate Index*

Barron questioned if miners were selling Bitcoin as a result of the upcoming halving creating a need for more efficient ASICs and whether BTC’s pre- and post-halving price action would not be as bullish as investors expected.

According to Ennis:

“There’s a lot of really unprecedented dynamics that are happening now in the mining space. [...] What’s interesting is hash rate continues to come online despite Bitcoin price trading in a certain band. [...] We’re still seeing hash rate increase.”

Ennis elaborated with:

“What’s changed now is that we’re seeing Bitcoin price come down a little, but hash rate continues to go up. [...] I think what’s really exciting and different is we’re seeing a tremendous amount of new entrants into the global Bitcoin network.”

Ennis referenced six gigawatts of nuclear and renewable energy being generated in the Middle East, and with the region's governments exploring Bitcoin mining as an option, more hash rate is coming online in a way that is somewhat price agnostic. This is drastically different from how publicly traded United States-based and more forward-facing miners operate.

In order to stay afloat after the halving, Ennis suggested that miners need to be in a position to avoid being “single-threaded,” i.e., they need more than one way of earning revenue beyond just mining Bitcoin.

Revenue diversification would include exploring various artificial intelligence (AI) applications, dedicating some warehouse rack space to GPUs for companies specializing in AI training and possibly offering industrial-level ASIC repair services — or even participating in demand-response initiatives with large energy producers and distributors.

Higher prices are programmed thanks to the halving and eventual BTC ETF

Crypto investors have waited years for the launch of a spot Bitcoin exchange-traded fund (ETF), and even with the recent influx of applications, an approval by the U.S. Securities and Exchange Commission remains elusive.

Despite the history of delays and denials, Ennis said that a “spot ETF coming to market, that’s incredibly bullish for the asset class,” but she also cautioned that an approval could create sell pressure on miner equities given that mining stocks have often been used as a proxy investment to Bitcoin.

Regarding the percentage chance of a spot Bitcoin ETF approval by the end of 2023, Ennis said:

“Definitely better than 50. The real reason for my opinion on that is that BlackRock threw its hat in the ring, BlackRock being powerful and the largest asset manager in the world. For them to throw their hat in the ring and say this is what we want and the amount of clout they’ve had in markets in past initiatives has been tremendous. So I think for them to make this call, that is a real bullish signal.”

Regarding a potential target for the Bitcoin price, Ennis said:

“I definitely do think we could see in this next cycle $100,000 cost per Bitcoin, and that’s based on if BTC were to capture even 2 to 5% of gold’s $13 trillion place in institutional portfolios. If Bitcoin were able to capture even 2 to 3% of gold’s market cap, that would be incredibly accretive to the price and push it north of $100,000.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Indian PM Modi calls for global cryptocurrency framework at G20 Summit

August 28, 2023 Coin Telegraph

Bitcoin Industry

India has advocated for a global crypto framework for years, however, back home, the crypto ecosystem is still looking for a clear regulatory framework and simpler taxation.

Indian Prime Minister Narendra Modi called for a global collaboration on formulating crypto regulations during the Group of 20 (G20) summit. G20 President India has taken up the task of advocating for a comprehensive global framework for regulating cryptocurrencies.

G20 is the premier forum for international economic cooperation that plays a critical role in strengthening global architecture and governance on all major international economic issues. India currently holds the Presidency of the G20.

During an interview with a local daily, the Indian PM talked about the role of emerging technologies such as blockchain and cryptocurrency. Modi noted that the nature of such emerging technologies will have an impact on the global scale. Thus, the rules, regulations and framework around it should not belong to one country or a group of countries.

Modi cited the example of the aviation industry and said just like air traffic control or air security have common global rules and regulations, emerging technologies like cryptocurrency should also see a worldly consensus. He further added that India is doing its part in the crypto regulatory conversation:

“India’s G20 presidency expanded the crypto conversation beyond financial stability to consider its broader macroeconomic implications, especially for emerging markets and developing economies. Our presidency also hosted enriching seminars and discussions, deepening insights into crypto assets.”

India released its presidency note that included its input on the global framework for crypto. The suggestions on the crypto framework were aligned with the guidelines written by the Financial Stability Board FSB, the Financial Action Task Force (FATF) and the International Monetary Fund (IMF). The note also contained additional suggestions with a focus on developing economies.

India has been advocating for a global crypto framework for quite some time, however, back home, the crypto regulatory environment is still shrouded in complexities, lack of clarity and high taxations. The country imposed a 30% tax on crypto gains in 2022, quite akin to its gambling taxation leading to a mass exodus of budding crypto companies and a sharp decline in crypto trading activity.

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HashKey to start Bitcoin and Ether retail trading in Hong Kong from Aug. 28

August 25, 2023 Coin Telegraph

Bitcoin Price

HashKey, along with OSL, received a major license upgrade on Aug.3 clearing their way to offer crypto trading services to retail customers.

Asian cryptocurrency exchange HashKey is set to start offering Bitcoin and Ether crypto trading services to retail customers in Hong Kong starting on August 28, according to a local media report. Investors will only be allowed to invest up to 30% of their net worth into cryptocurrencies when using the platform

HashKey became the first crypto exchange in Hong Kong to get regulatory clearance to offer crypto trading services to retail traders after upgrading two major licenses issued by the country’s Securities and Futures Commission (SFC). The first license known as Type 1, made way for HashKey to start a virtual asset trading platform under Hong Kong’s securities laws. The second license called Type 7, allows the crypto exchange to provide automated trading services to both institutional as well as retail users.

Apart from HashKey, another crypto platform called OSL also received a regulatory nod from the SFC to offer BTC and ETH retail trading services. The new license regime has made way for Hong Kong to establish itself as one of the few countries that allow crypto retail trading services under the pureview of law.

Hong Kong started the year 2023 with a focus on building a crypto friendly environment in the country. Hong Kong’s Financial Secretary Paul Chan noted at the start of the year that the local government and regulators are looking forward to building a crypto and fintech ecosystem in 2023.

By March, more than 80 crypto firms expressed interest in opening their office in Hong Kong including several crypto heavy weights. In April, the Hong Kong Monetary Authority (HKMA) called on banks to provide services to cryptocurrency firms. By May of the same year, the HKMA announced a licensing regime for the crypto platforms with a deadline of June 1. By August a couple of crypto platforms have now been approved to offer crypto trading services to retail as well as institutional clients.

The role of the regulatory framework that helps to protect investors is quite evident in the case of Hong Kong where retail traders will have access to only BTC and ETH, which the exchange believes is enough for the retail traders' need.

HashKey didn’t respond to Cointelegraph’s request for comments at press time.

Magazine: Hall of Flame: Wolf Of All Streets worries about a world where Bitcoin hits $1M

Is the SEC a bad cop? CoinRoutes CEO Dave Weisberger breaks down crypto regulation in the US

August 24, 2023 Coin Telegraph

bitcoin regulation

Weisberger believes the structure of the Securities and Exchange Commission needs to change but that politicians are reluctant to do so because of their power within the current state of affairs.

On Episode 27 of Hashing It Out, CoinRoutes CEO Dave Weisberger joins host Elisha Owusu Akyaw (also known as GhCryptoGuy) to discuss the current state of cryptocurrency regulation in the United States. Weisberger explains how the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) approach regulations and what they mean for the fast-evolving cryptocurrency space.

Weisberger addresses the state of regulation at the start of the podcast. According to him, the problem in the United States stems from a lack of clear regulations and rules, leading to regulators arbitrarily applying different rules. Weisberger adds that the issue stems from the existence of two different regulators — the SEC and CFTC — which have different roles in the financial system that may intersect depending on which crypto assets are being referred to and the use cases under scrutiny.

Recently, the SEC took the initiative to lead the attempt to regulate cryptocurrencies, resulting in multiple court cases against several projects in 2023. Weisberger explains that for most industry players, there isn’t a strong resistance to regulations; rather, the argument is that the SEC’s rules were established in the 1940s and updated in the 1970s and should not be used to regulate a new asset class and technology-oriented products. He further describes the situation from the perspective of builders in the space:

“We have a situation where the industry says if you call me a security, it is a death sentence. Not because regulation is bad but because the rules themselves will strangle the innovation.”

Hashing It Out host Owusu Akyaw asks if regulating cryptocurrencies is challenging in the United States, to which the CoinRoutes CEO responds that the answer should be no, but that it’s a complex situation. He uses the analogy that remodeling a house is more difficult than building a house from scratch. According to Weisberger, regulators need to rethink their approach toward crypto regulations.

On whether or not cryptocurrency is an issue voters care about in the U.S., Weisberger argues that the freedom to invest and engage in economic activity and the U.S. potentially losing competitiveness in a fast-growing industry are issues that make cryptocurrency an important voting issue.

Listen to the latest episode of Hashing It Out with CoinRoutes‘ Weisberger on Spotify, Apple Podcasts, Google Podcasts or TuneIn. You can also explore Cointelegraph’s complete catalog of informative podcasts on the Cointelegraph Podcasts page.

bitcoin regulation

Higher prices are programmed thanks to the halving and eventual BTC ETF

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