BitMEX gets into serious trouble with the CFTC and the U.S. Attorney’s Office and this makes Bitcoin’s price wobble.
Today BitMEX, one of the main crypto exchanges, has been accused of not implementing the necessary measures to prevent money laundering. Since the news was released, the price of Bitcoin has experienced a significant drop.
Accusations lead to a drop in the price of Bitcoin
Today the U.S. 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 is being charged 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 „maze of corporate entities“.
Since the BitMEX news was released, BinBot the leading crypto, has taken a step backwards. Going from a $10,880 value to $10,550 in a matter of minutes.
Currently the price of crypto is at $10,630 according to CryptoTrend’s tool, Crypto Online.
Jason Deane, a Bitcoin analyst at Quantum Economics, explained to Decrypt that this kind of move shouldn’t come as a surprise since it’s news like BitMEX that scares off new and inexperienced Bitcoin investors.
For its part, BitMEX completely denied the accusations. In a blog post, the crypto exchange attacked the charges.
„Since our early days as a start-up company, we have always sought to comply with applicable U.S. laws…“ the statement said.
What will be the impact of the BitMEX news on Bitcoin’s price in the next few hours?
Research: Crypto exchanges have a weak KYC!
On the very same topic of regulatory compliance, a study by CipherTrace found that 56% of crypto exchanges lack sound customer knowledge (KYC) practices.
This means that a large portion of crypto exchanges are not doing everything possible to force their customers to prove their identities. In fact, it also found that 81% of decentralized exchanges (DEX) have little or no user verification.
Registered 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 we could soon have a digital euro which, as we pointed out above, will not be a substitute for fiat but a complement.
Christine Lagarde: „The digital euro could complement cash“
Renewable energy for crypto-mining
The University of Cambridge conducted a study that found that 76% of cryptominters 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.
Bitcoin Mining: 5 highlights of the week
Miner handling Ethereum blocks
Frank Topbottom, an anonymous researcher, highlighted several compelling cases of „miners‘ extractable value“ or, also known as MEV, yesterday.
This is how this term refers to the amount of value that crypto miners can extract from the system by initial execution. Previously, experts had already pointed out the MEV as a potential exploitation pattern for DeFi.
Thus, the researcher pointed out several cases of suspicious transactions where a small set of crypto addresses appeared first in the block despite having a lower rate.
Ethereum needs to find a solution to its problems, now!
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