Connect with us

Regulation

BTC and OKB plunge after OKEx suspends withdrawals

Published

on



Major crypto asset exchange OKEx has suspended cryptocurrency withdrawals, announcing that one of the holders of its private keys is “currently cooperating with a public security bureau” concerning ongoing “investigations.”

The exchange noted that it has been “out of touch” with the key-holder, preventing the “associated authorization” from being completed. OKEx plans to resume digital asset withdrawals “immediately” once the key-holder “is able to authorize the transaction.”

Citing its terms of service, OKEx said it had decided to suspend withdrawals but added that the security of its customers’ assets “will not be affected” by the events.

Bitcoin (BTC) has fallen nearly 3% in response to the news, while OKEx’s native token OKB has crashed 15%.

Hours before the announcement, on-chain transaction monitoring service Whale Alert noted several large transfers between OKEx and unknown wallets.

Outgoing transfers of 1,180 BTC worth $13.6 million, 50 million Tron (TRX) worth $1.3 million, and 21,000 Ether (ETH) were made over six hours, alongside an incoming transaction of roughly $13.9 million in Tether (USDT). The transfers occurred during a similar time period to transfers of coins from the Bitfinex hack according to Whale Alert’s feed, however this may simply be a coincidence given the large numbers of transactions that occur every day.

Beijing based reporter Colin Wu, who writes at WeChat public account @wublockchain suggested the OKEx investigation may be related to money laundering.

“The Chinese government is cracking down on money laundering using cryptocurrency for telecom fraud, and centralized exchanges are in a very dangerous state.”

OKEx targets asian markets, although it is headquartered in Malta. Wu also alleged he’d discovered an “OTC merchant on OKEx had mistakenly received 500,000 CNY from the fraud group and was hunted by the police across the provinces.”

Wu’s information is unverified at this early stage. 

The OKEx situation occurs after a 48 hour period that saw at least 33 arrests resulting from separate law enforcement operations targeting global money laundering operations in North America, Oceania, and Europe.





Source link

Regulation

New York authorizes first Yen stablecoin operator in the US

Published

on

By



New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.