Societe Generale To Become First TradFi Bank To Launch a Stablecoin, Plans Debut on Bitstamp: Report

December 7, 2023 The Daily Hodl

Bitstamp’s departure from Canada is ‘timing issue,’ says CEO

October 11, 2023 Coin Telegraph

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Bitstamp’s decision to discontinue operations in Canada is “primarily a timing issue” related to the firm’s expansion priorities, Bitstamp USA CEO said.

Cryptocurrency exchange Bitstamp hopes to return to Canada after halting operations early next year, according to Bitstamp USA CEO and global chief commercial officer Bobby Zagotta.

Bitstamp will officially discontinue its services to customers in Canada starting from Jan. 8, 2024, the exchange confirmed in a statement to Cointelegraph.

As a result of the service termination, all Canada accounts on Bitstamp will be closed, and customers will no longer have access to their accounts. Bitstamp has strongly recommended its Canadian customers withdraw their funds by January 2024, also urging the clients to deactivate their Bitstamp accounts.

“We want to emphasize that your crypto assets always remain yours, and we are committed to reaching out to any customers who were unable to close their accounts themselves to ensure the return of their funds,” Bitstamp noted.

Bitstamp’s decision to discontinue operations in Canada is “primarily a timing issue” related to the company’s current expansion priorities, Zagotta told Cointelegraph. The exchange is exiting the Canadian market to refocus on regions where Bitstamp can align “more effectively” with local regulations, he said, adding:

“We hope to serve this market in the future; however, at this time, we are unable to prioritize the work and allocate the necessary resources to meet new regulations.”

Zagotta emphasized that Bitstamp remains committed to serving its global user base, and any decisions regarding its presence in specific countries would likely depend on evolving regulatory environments and market conditions.

Bitstamp’s exit from Canada comes amid the exchange reportedly raising funds to scale its global operations. The platform has reportedly been working to secure new capital since May 2023 to launch derivatives trading in Europe in 2024 and expand its services in the United Kingdom.

Founded in 2011, Bitstamp is one of the world’s longest-running cryptocurrency exchanges. According to the Bitstamp website, the platform serves a large number of countries at the time of writing, including the United States, Singapore, South Korea, Japan and others.

According to data from CoinGecko, Bistamp’s daily trading volumes amount to roughly $114 million at publishing time. The volumes are significantly lower than volumes reported by major competitors like Binance, which trades nearly $4 billion per day, according to CoinGecko.

Magazine: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis

Whales Move Over $730,000,000 in Bitcoin, Ethereum, Dogecoin and XRP – Here’s Where the Crypto’s Going

October 6, 2023 The Daily Hodl

Crypto Liquidity Becoming More Concentrated Within Top Exchanges, Says Analytics Firm Kaiko

September 10, 2023 The Daily Hodl

Bitstamp halts ETH staking in the United States

August 23, 2023 Coin Telegraph

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The crypto exchange is ending staking services for U.S.-based users on Sep. 25; the decision came a few weeks after Bitstamp halted trading for seven altcoins in the country.

Crypto exchange Bitstamp will discontinue staking services for customers based in the United States. In a message shared with Cointelegraph, the exchange announced the ending of Ether (ETH) staking as of Sep. 25.

"Customers will continue earning staking rewards up until September 25, 2023, and after that, all staked assets will be unstaked. Rewards, along with the principal, will be credited to users’ main Bitstamp account balances," said Bobby Zagotta, U.S. CEO and global chief commercial officer at Bitstamp, warning that it could take a few days for users' balances to reflect the changes.

According to Bitstamp's website, it charges a 15% commission on all staking rewards. The monthly reward rate for staking ETH on the exchange is 4.50%; by comparison, the monthly reward for staking Algorand (ALGO) is 1.60%. With the move, the United States joins other countries where Bitstamp staking services aren't available, including Canada, Japan, Singapore and the United Kingdom.

The decision appears to be related to recent legal developments in the United States. In early August, Bitstamp announced at least seven altcoins would no longer be offered in the country. They were Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near NEAR, Sandbox (SAND) and Solana (SOL). While the company didn't specify why it suspended trading, all seven tokens were deemed unregistered securities by the U.S. Securities and Exchange Commission (SEC) in June as part of its lawsuits against crypto exchanges Binance and Coinbase.

Update for our US users

Starting August 29: AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL trading will be halted after evaluating recent market developments.

Execute any open trades. Holding and withdrawing tokens afterwards will be unaffected.

More info:…
— Bitstamp (@Bitstamp) August 8, 2023

Ether is the native cryptocurrency of the Ethereum blockchain and the second-largest by market cap behind Bitcoin (BTC). A central issue surrounding the ongoing regulatory environment in the United States relates to whether it could be classified as a commodity or a security. The Commodities Futures Trading Commission (CFTC) has repeatedly called Ether a commodity, while SEC chair Gary Gensler said at a hearing in April that everything but Bitcoin should be deemed a security.

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

Crypto Biz: PayPal’s stablecoin goes live, Bitstamp seeks capital, and Coinbase’s L2

August 11, 2023 Coin Telegraph

bitstamp

This week’s Crypto Biz explores PayPal’s stablecoin, Coinbase’s new layer 2 network, Bitstamp’s fundraising and the growing popularity of crypto bots on Telegram.

In a move that can reshape the digital payments landscape, financial technology giant PayPal has unveiled its United States dollar-pegged stablecoin PayPal USD (PYUSD).

In line with expectations, the launch has ignited a complex debate within the crypto community.

Ethereum’s daily active user base hovers between 300,000 to 400,000, which is a fraction of PayPal’s colossal user base count of over 430 million. As a result, some see the move as a significant step toward transforming Ethereum into the internet’s monetary backbone. Despite the excitement, skepticism looms over the crypto landscape, with questions about crypto centralization taking center stage.

However, concerns raised by the crypto community may not pose the biggest challenge to PayPal’s stablecoin; the regulatory landscape is still uncertain in the U.S., where the fintech company is headquartered.

PayPal is said to have been discussing the stablecoin with regulators and lawmakers in recent months, lobbying for clarity from authorities before releasing PYUSD. Democratic and Republican House Financial Services Committee members have voiced contrasting opinions on the stablecoin launch.

Nevertheless, the PYUSD debut shows PayPal’s optimism about an upcoming framework for stablecoins oversight in the United States. As regulatory debates unfold, PYUSD’s impact on the industry’s evolution and stablecoin dominance remains to be seen.

This week’s Crypto Biz explores PayPal’s stablecoin, Coinbase’s new layer 2 network, Bitstamp’s fundraising and the growing popularity of crypto bots on Telegram.

PayPal launches PYUSD stablecoin for payment

American financial technology company PayPal launched a new stablecoin on Aug. 7. The U.S. dollar-pegged PYUSD will be issued by Paxos Trust Company, and it is fully backed by U.S. dollar deposits, short-term Treasurys and similar cash equivalents. PYUSD is built on Ethereum and is “designed for digital payments and Web3.” The stablecoin is expected to be available in the U.S. soon, according to the firm. To justify the move, PayPal argues that the regulatory environment around stablecoins in the U.S. is gradually “progressing toward more clarity,” thus, there is a demand for alternative stablecoins. The company first confirmed its plans to launch a stablecoin in January 2022, claiming it would work closely with relevant regulators. The stablecoin will be redeemable for U.S. dollars or exchanged for other cryptocurrencies on the platform.

Bitstamp crypto exchange to raise funds for global expansion

Bitstamp is moving forward with its global expansion ambitions, working to raise new funds to scale operations worldwide, including plans to launch derivatives trading in Europe in 2024 and expand its services in Asia and the United Kingdom. Bitstamp currently operates in 194 countries. In the U.S., the company announced that the trading of several tokens deemed securities by the Securities and Exchange Commission would be suspended soon. This includes Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), The Sandbox (SAND) and Solana (SOL). These developments follow Ripple’s acquisition of a minority stake in Bitstamp in the first quarter of 2023.

Base network has officially launched: Here’s how it can be used

Coinbase’s layer-2 network, Base, was launched on Aug. 9, allowing end users to onboard for the first time without relying on developer tools. In response to the launch, several Web3 teams announced the release of apps running on Base. A few things users can do on Base right now include bridging Ether (ETH) from mainnet to Base, swapping tokens and providing liquidity through decentralized exchanges, making payments, registering a username, launching a decentralized autonomous organization and minting nonfungible tokens. In another headline, Coinbase will start buying back up to $150 million of its 2031 senior notes for $0.645 — a discount of 35.5%. The 2031 senior notes have a coupon rate of 3.625% yearly and a total principal balance of $1 billion. The tender offer will last until Sept. 1.

Base is open and Onchain Summer is here

Become a part of Base history by minting “Base Day One” to join the story of bringing the world onchain

Our story.https://t.co/qaDj7CBCMd pic.twitter.com/9PZCLQQV7p
— Base ️ (@BuildOnBase) August 9, 2023

Telegram crypto bots gain momentum in the market: Binance Research

Telegram bots have been increasingly emerging as a new tool to get exposure to cryptocurrency markets and several related services. The cumulative crypto trading volume associated with Telegram bots exceeded $190 million as of early August 2023, according to a new report by Binance Research. Crypto activity facilitated through these bots has increased in recent months. On July 23, daily volumes of trades hit a record high of $10 million. Telegram bots are often connected to peer-to-peer or decentralized cryptocurrency exchanges, enabling users to execute trades using chatbot commands. Telegram bots have collected more than 15,500 ETH (about $28 million) in all-time revenue, Binance reported.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

Bitstamp to suspend trading of major altcoins for US users

August 8, 2023 Coin Telegraph

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All the soon-to-be suspended tokens are alleged by the SEC to be securities in its lawsuit against Coinbase and Binance.

Cryptocurrency exchange Bitstamp will suspend trading of Axie Infinity (AXS), Chiliz (CHZ), Decentraland (MANA), Polygon (MATIC), Near (NEAR), Sandbox (SAND), and Solana (SOL) for customers residing in the U.S. beginning August 29.

According to the Aug. 8 announcement, trading of the seven aforementioned cryptocurrencies will soon become unavailable for trading for U.S. customers due to "recent developments." While the firm did not specify the reason for their suspension, all seven tokens are alleged by the U.S. Securities and Exchange Commission to be unregistered securities in its complaints against cryptocurrency exchanges Binance and Coinbase. Bitstamp wrote:

"We kindly request our users to promptly execute any desired buy or sell orders involving the affected assets before August 29, 2023. After this deadline, trading activities related to AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL will be permanently disabled on the Bitstamp platform."

Although trading will soon be halted, Bitstamp says users can still hold the seven tokens in their accounts and withdraw them at anytime. The SEC's allegations against the tokens have not yet been proven in a court of law. However, other fintech firms, such as Revolut, have voluntarily delisted them for U.S. residents amidst the SEC litigation against Binance and Coinbase. The Sandbox had also begun mandating Know Your Customer verification for SAND staking after the event. The SEC currently alleges that 68 cryptocurrencies are securities.

Founded in 2011 and now headquartered in Luxembourg, Bitstamp is currently the world's oldest cryptocurrency exchange. The platform offers around 30 coins and tokens for trading. Approximately $164 million worth of digital currencies were traded on Bitstamp in the past 24 hours.

Update for our US users

Starting August 29: AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL trading will be halted after evaluating recent market developments.

Execute any open trades. Holding and withdrawing tokens afterwards will be unaffected.

More info:…
— Bitstamp (@Bitstamp) August 8, 2023

Magazine: DeFi faces stress test, DoJ fears run on Binance, Hong Kong’s crypto trading

Bitstamp crypto exchange to raise funds for global expansion: Report

August 8, 2023 Coin Telegraph

bitstamp

One of the world’s oldest cryptocurrency exchanges, Bitstamp, is trying to scale its operations with new fundraising advised by Galaxy Digital.

Bitstamp, one of the world’s longest-running cryptocurrency exchanges, is moving forward with its global expansion ambitions, reportedly working to raise new funds to scale operations.

Crypto exchange Bitstamp started the fundraising process in late June, with Michael Novogratz’s Galaxy Digital Holdings acting as an adviser, Bloomberg reported on Aug. 7.

The firm plans to use the raised capital to launch derivatives trading in Europe in 2024 and expand several of its served markets in Asia. Bitstamp is also looking to scale its services in the United Kingdom, the report notes.

Bitstamp’s global CEO Jean-Baptiste Graftieaux reportedly said that the company is now exclusively focused on raising money to expand the services to retail and institutional crypto clients. He added:

“Bitstamp is not for sale, and we are not actively looking to sell the company.”

The crypto exchange did not immediately respond to Cointelegraph’s request for comment.

The news comes a few months after major blockchain firm Ripple acquired a minority stake in Bitstamp in the first quarter of 2023. Novogratz’s Galaxy also acted as an adviser on the deal, which was publicly announced in late May.

Bitstamp’s latest efforts to scale its business come in line with its global expansion plans announced in 2018 when the firm was acquired by South Korean NXC-backed NXMH.

Back then, Bitstamp co-founder Nejc Kodrič claimed that he and another Bitstamp co-founder, Damijan Merlak, “were not looking to sell” and “were definitely not looking for investment’ because they “didn’t need to raise the capital.” However, Kodrič still took the opportunity to cash out on most of his Bitstamp stock while keeping 10% and remaining CEO.

Founded in 2011 in Slovenia, Luxembourg-based Bitstamp was once a major venue for Bitcoin (BTC) trading, serving as an option to then-dominant Bitcoin exchange Mt. Gox. Bitstamp is now one of the world’s largest crypto exchanges, with about $127 million in trading volume in a recent 24-hour period, according to data from CoinGecko.

In June, Bitstamp’s U.K. arm joined the list of registered firms under the country’s Financial Conduct Authority.

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Bitstamp now included on FCA’s list of registered crypto firms

June 13, 2023 Coin Telegraph

bitstamp

The Financial Conduct Authority listed 42 registered crypto firms in compliance with the U.K. government's Anti-Money Laundering and Combating the Financing of Terrorism rules.

The United Kingdom arm of cryptocurrency exchange Bitstamp has joined the list of registered firms under the country’s Financial Conduct Authority.

According to the FCA list of registered cryptoasset firms as of June 13, Bitstamp U.K. Limited and Interactive Brokers Limited became the first companies to join other registered entities in the U.K. after roughly 6 months — the FCA added Hidden Road Partners and MoonPay in December 2022. The FCA listed 42 registered crypto firms in compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements, among others.

We are proud to be recognized by the FCA as providing the gold standard in crypto compliance to customers in the UK.

Bitstamp is now registered as a cryptoasset business with the UK’s Financial Conduct Authority (FCA).

Thank you for your continued support!

More info:… pic.twitter.com/SRO9LTqTux
— Bitstamp (@Bitstamp) June 13, 2023

In the U.K., firms permitted to “carry out crypto asset activities” must either be registered with the FCA or have been granted temporary status to operate. The financial watchdog previously ordered Binance Markets Limited to halt its U.K. operations as well as issued “shut down or face further action“ orders for local crypto ATM operators.

Cointelegraph reached out to Bitstamp, but did not receive a response at the time of publication. Blockchain-based payment platform Ripple announced in a May shareholder conference call that it had taken a minority stake in Bitstamp in the first quarter of 2023.

Lawmakers in the U.K. have been proposing a comprehensive crypto asset regulatory framework aimed at giving crypto a more prominent role in the nation’s financial services sector as well as promote an approach to encourage innovation in the space. At the time of publication, the government appeared to be gathering responses to the consultation paper on the framework and considering the next steps moving forward.

Magazine: Best and worst countries for crypto taxes — plus crypto tax tips

Crypto Biz: Ledger halts recovery service, Web3 in Hong Kong, and another CEX goes down

May 27, 2023 Coin Telegraph

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This week’s Crypto Biz explores Hotbit’s closure, Hong Kong’s licensing of crypto firms, Bitstamp’s acquisition by Ripple and Ledger’s branding crisis.

Another centralized exchange (CEX) bites the dust, with Hotbit announcing it will close operations due to adverse business conditions. As is common among CEX collapses in recent months, the crypto firm mentioned FTX, the ongoing banking system crisis, and even a probe, as reasons for its cash flow problems.

Also facing a tough time is wallet provider Ledger. The company decided to postpone its controversial recovery service amid community backlash. Security reputation is critical for a crypto wallet provider, but Ledger’s dilemma may be beyond a public relations crisis. The recovery service was also a path toward subscription services, which could generate recurring revenue for the wallet provider. The feature is now postponed until most of its code is open-sourced, said Ledger.

In challenging times, there are also opportunities for others. Honk Kong is advancing its plans to become a crypto hub, with over 150 crypto firms waiting for approval to operate as virtual assets trading platforms in the city.

This week’s Crypto Biz explores Hotbit’s closure, Hong Kong’s licensing of crypto firms, Bitstamp’s acquisition by Ripple and Ledger’s branding crisis.

Hotbit exchange halts operations, urges users to withdraw funds

Crypto exchange Hotbit is winding down operations, urging users to withdraw funds by June 21. According to an announcement, Hotbit’s operations have deteriorated since an investigation of a former team member took place in August 2022. Authorities believe a former management employee was involved in a project that violated criminal laws. The probe forced the exchange to halt business for weeks. Hotbit’s cash flow was also impacted by the FTX collapse and the banking crisis — incidents that resulted in a continuous outflow of funds from centralized exchanges, said the firm. The announcement was followed by phishing links pretending to be the official Hotbit website on Google.

Ledger key recovery service paused amid backlash, will open-source code

Ledger’s public relations nightmare took a new turn this week, leading the company to pause its recovery service tool amid ongoing community backlash. Disclosed on May 16, the Ledger Recover feature would allow users that lost their private seed phrase to get it back via an optional function. Earlier in the week, Ledger’s CEO Pascal Gauthier confirmed that private seed phrases of users using the service could, in theory, be handed over to governments if they were to be subpoenaed. In response to concerns, the firm is accelerating efforts to open-source most of its codebase, including core components of its operating system and Ledger Recover, which is postponed until after this process is completed.

Ledger Recover will be launched as soon as the source code is auditable. We believe in these amendments to the project and will continue to build the industry together.
— Pascal Gauthier @Ledger (@_pgauthier) May 23, 2023

Hong Kong to open crypto exchange access for retail users, but there’s a catch

Hong Kong has taken another step toward building its reputation as a crypto hub. Earlier this week, its Securities and Futures Commission announced that virtual assets trading platforms would soon be licensed to serve retail investors. Compliance guidelines will include asset custody safety requirements, cybersecurity standards and segregation of client assets. Further measures to protect investors may involve enhanced token due diligence and regular disclosures. The legal framework was approved by local legislators in December 2022, seeking to give cryptocurrency exchanges the same market recognition as traditional financial institutions. Providing regulatory clarity for crypto firms has been part of Hong Kong’s strategy in attracting businesses and positioning itself as a Web3 city.

Ripple acquires Pantera’s stake in Bitstamp

Digital payment network Ripple took a minority stake in the crypto exchange Bitstamp in the first quarter of 2023. Galaxy Digital advised on the deal, according to a transcript of Galaxy’s shareholder conference call on May 9. Ripple acquired shares previously owned by Pantera Capital, a United States-based digital asset investment firm. It is unclear how much Ripple paid for the acquisition or how the deal was structured. Founded in 2011, Bitstamp was one of the first crypto exchanges to offer digital assets transactions. Based in Luxembourg, the company serves clients in over 100 countries.

Crypto Biz is your weekly pulse of the business behind blockchain and crypto, delivered directly to your inbox every Thursday.

bitstamp

PayPal launches PYUSD stablecoin for payment

Bitstamp crypto exchange to raise funds for global expansion

Base network has officially launched: Here’s how it can be used

Telegram crypto bots gain momentum in the market: Binance Research

Hotbit exchange halts operations, urges users to withdraw funds

Ledger key recovery service paused amid backlash, will open-source code

Hong Kong to open crypto exchange access for retail users, but there’s a catch

Ripple acquires Pantera’s stake in Bitstamp

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