Tehran Stock Exchange Head Resigns Over Mining Rigs Found at Organization’s Office

The director of Tehran’s Stock Exchange has resigned from his post following the discovery of cryptocurrency mining rigs in his organization’s basement. The scandal has erupted as licensed crypto miners in Iran are reportedly resuming operations amid fears of new restrictions in the winter.

Iran Stock Exchange CEO Loses Job for Illegal Crypto Mining Under His Watch

Ali Sahraei, chief executive of the Tehran Stock Exchange, has submitted his resignation after cryptocurrency mining machines were uncovered in the building occupied by the organization. Media reports of the illegal mining operation at the market’s offices were initially denied by the exchange. It only admitted to having launched an “investigation and research project” related to the liquidity outflow towards crypto assets in 2020.

According to another statement, quoted by the state-run Mashreq News, an internal inspection came across several mining devices that were allegedly operated by the stock exchange. “During the investigation, we found that the activity was not fully recorded and disclosed in the reports and by the accounts of the company,” the announcement details. As news of these findings broke on Iranian media, Ali Sahraei told ISNA news agency:

To offer an opportunity for more investigations about cryptocurrency mining at the stock exchange and to help the stability of the markets, I offered my resignation to the board of directors, which accepted it.

However, according to the Iran International news portal, the country’s official news agency, IRNA, has presented a different description of the events. Its report on the mining scandal, quoted by the English-language edition, claims Sahraei has actually been fired from his position at the Tehran Stock Exchange Market.

Iranian Authorities Allow Licensed Miners to Resume Operations, Report

The Iran Power Generation, Distribution and Transmission Company, Tavanir, which had initially denied the existence of the miners, refused to issue any subsequent comments after Ali Sahraei’s statement, the National Council of Resistance of Iran (NCRI) reported on its website. The rigs are believed to have used a lot of electricity and Tavanir has been going after energy-intensive illegal mining operations blamed for the country’s power shortages this year.

According to data released in September, the utility has seized over 216,000 mining machines from more than 5,300 underground crypto farms. During the extraordinarily hot summer, Iran faced rising electricity demand for air conditioning and had to deal with blackouts across the country. The power deficit forced authorities to cut consumption and cryptocurrency miners were targeted. Licensed mining farms were also shut down under a temporary ban imposed by former President Hassan Rouhani in May.

In August, Tavanir announced the restrictions were to be removed for authorized crypto miners on Sept. 22, in view of an expected decline in power demand during the fall. According to the report by UK-based Iran International, authorities in Tehran have now allowed licensed mining entities to resume operations. However, Iran may experience power shortages again in the cold winter months and reinstate the mining restrictions.

The Islamic Republic recognized cryptocurrency mining as a legal industrial activity in July 2019, and the government introduced a licensing regime for mining companies. Permits are issued by the Ministry of Industry, Mines, and Trade. According to Tavanir, 56 authorized crypto mining farms need a total of 400 megawatts of electricity to mint digital coins, while its claims that illegal miners consume around 2,000 megawatts daily have been rejected by the Industries Ministry.

Do you think the Tehran Stock Exchange has been involved in illegal cryptocurrency mining? Share your thoughts on the case in the comments section below.

via Lubomir Tassev

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Singapore Grants Crypto Licenses to DBS and Independent Reserve

The Monetary Authority of Singapore (MAS), the country’s central bank, has formally approved two companies to provide crypto services. One is the brokerage arm of DBS, the largest bank in Singapore and Southeast Asia. The other is Independent Reserve, a crypto exchange and OTC trading desk.

Singapore’s Central Bank Formally Approves DBS and Independent Reserve

DBS Bank announced Friday that its brokerage arm, DBS Vickers (DBSV), “has received formal approval from the Monetary Authority of Singapore (MAS) under the Payment Services Act 2019 to provide digital payment token services as a Major Payment Institution.”

The bank explained: “This will enable DBSV, as a member of DBS Digital Exchange (Ddex), to directly support asset managers and companies to trade in digital payment tokens through Ddex.”

Eng-Kwok Seat Moey, head of Capital Markets at DBS and chair of the DBS Digital Exchange, commented:

Having received formal regulatory approval from MAS, DBSV is now in a better position to support institutional and corporate investors in tapping into the growing potential of digital assets as an investment class.

Since its launch in December as a member-only bourse, DBS Digital Exchange has been “growing very rapidly,” the bank said last month, adding that the platform expected the number of trading members to double by the end of December, and grow by 20-30% annually for the next three years.

Another company, Independent Reserve, a crypto exchange and OTC trading desk, also announced Friday that it has gained “licensure approval” from the MAS. The exchange, established in Australia in 2013, provides SGD, AUD, USD, and NZD fiat-to-crypto trading pairs. The company wrote:

Cryptocurrency exchange Independent Reserve has today received approval for a Major Payment Institution License in Singapore … to operate as a regulated provider for Digital Payment Token Services.

Independent Reserve CEO Adrian Przelozny opined: “A well-regulated environment will benefit both investors and crypto industry stakeholders. With tailormade rules for the crypto industry, Singapore currently has the clearest and most detailed licensing requirements of any jurisdiction in Asia.”

The exchange announced in August that it received an “in-principle approval” from the central bank. Since then, “we’ve seen an influx of retail and institutional investors,” said Raks Sondhi, Managing Director of Independent Reserve in Singapore.

What do you think about the central bank granting crypto licenses to DBS and Independent Reserve? Let us know in the comments section below.

via Kevin Helms

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Popular Bitcoin ATM Operator: Bitcoin of America Working With WGN Radio to Promote Cryptocurrency Education

PRESS RELEASE. Bitcoin of America (BOA) is a popular virtual currency exchange, headquartered in Chicago, IL. They are known for their extensive number of Bitcoin ATM locations across the United States. Bitcoin of America’s CEO, Sonny Meraban, and Director of Marketing, Jenna Polinsky, have been featured on air at WGN Radio over the past couple of months. BOA is hoping to provide more free opportunities for the public to learn the basics of cryptocurrency.

In BOA’s first WGN radio segment, Meraban and Polinsky discuss the basics of how to use a Bitcoin ATM. They also talk about an additional option, which they are hoping to promote to their beginner audience. Bitcoin of America recognized a major learning gap and created their own face to face purchasing experience, this is known as a Bitcoin Teller location. This means that customers can go in and ask questions regarding their purchase. According to Bitcoin of America, all merchants are trained and ready to assist all users.

BOA’s Meraban and Polinsky were also featured on air with John Landecker where they discussed the common question of “how Bitcoin works”. WGN even added a daily Bitcoin price update sponsored by Bitcoin of America. BOA is hoping to bring more awareness to the topic as it has already caught the eye of several viewers.

 

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This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

via Bitcoin.com PR

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Egyptian Banks Set to Launch Multi-Million Dollar Fintech Fund

Egyptian banks are reportedly on course to launch a $69.6 million fund which is earmarked to support the country’s fintech companies. According to a report, this fund is expected primarily to target the digital banking and financial services sector.

Fintech Apps Targeted

Fintech apps that can extend banking and financial services to all segments of society in a cost-effective way will also be targeted. So far, only the National Bank of Egypt, Banque Misr, and Banque du Caire have been identified as the financial institutions that are participating in this initiative.

Fintechnews Africa reveals in a report that “investments from the fund will be made in both local and international emerging fintech companies.” The report adds that part of the funds will be used to nurture “young talent in this space.”

Aside from helping fintech companies grow, having this fund is expected to help the country narrow its financial exclusion gap. With 67% of its adult population currently financially excluded, Egypt remains one of the most unbanked countries in the world.

Egypt’s Financial Exclusion Gap

By adding the fintech fund to Egypt’s already existing funds, expectations are that this will bring financial services to Egypt’s excluded groups. A narrowing financial exclusion gap could in turn lead to economic growth.

Concerning the decision by the three Egyptian banks to create the fintech fund, the report suggests this may have been necessitated by the banks’ desire to keep abreast with the latest fintech trends. Quoting a statement released by the banks, the report states:

“The participation of banks in this fund stems from their belief in the importance of keeping pace with global developments in the field of financial technology, which is the future of the banking and financial industry in Egypt and the world.”

What are your thoughts about this story? Tell us what you think in the comments section below.

via Terence Zimwara

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Reserve Bank of New Zealand Seeks Public Opinion on Central Bank Digital Currency

The central bank of New Zealand has lined up among monetary authorities exploring the question of issuing their own digital currencies. The financial regulator is now seeking feedback from the public about the need for a digital form of the national fiat while also promising to preserve cash.

New Zealand Central Bank Considers Risks and Benefits of CBDC

Reserve Bank of New Zealand (RBNZ) is now gathering input from the public on the potential use of a central bank digital currency (CBDC), Reuters reported following an announcement released by the bank on Thursday. Assuring that financial authorities are still working “to preserve cash and the cash system for those that need it,” RBNZ Assistant Governor Christian Hawkesby stated:

A Central Bank Digital Currency would see the features and benefits of cash enjoyed in the digital world, working alongside cash and private money held in commercial bank accounts.

The high-ranking official elaborated that a CBDC could benefit both individuals and businesses by facilitating the establishment of more efficient and integrated platforms. A digital New Zealand dollar could potentially help protect the country’s monetary sovereignty as well. Hawkesby, who is also the bank’s General Manager of Economics, Financial Markets and Banking, was quoted as saying:

As steward we want to ensure that our central bank money remains a stable value anchor for the monetary system and available as a fair and equal way to pay and save – so ensuring that New Zealanders have access to money in forms that suit them and their changing needs.

At the same time, the banker acknowledged that a digital currency would pose certain operational risks, including those of a cybersecurity nature, and impact the traditional financial sector. Hawkesby then emphasized that any decision on launching a CBDC would have to take these factors into careful consideration.

In a paper accompanying the statement, the Reserve Bank of New Zealand pointed to the declining use and acceptance of paper cash in the country, which could be another major motive to mint a national digital coin. The financial institution also highlighted innovations in private money such as the emergence of stablecoins.

Other central banks in the region are already cooperating on the CBDC front. In early September, reports came out that the Reserve Bank of Australia, Bank Negara Malaysia, the Monetary Authority of Singapore, and the South African Reserve Bank are all preparing to test the use of state-issued digital currencies in international payments. The banks explained that the collaboration aims to develop shared platforms for cross-border transactions using different CBDCs.

The trials are led by the Bank for International Settlements (BIS) Innovation Hub with the goal to establish whether central bank digital currencies can simplify transactions and lower their costs. The Hub heads a similar project between China, Hong Kong, Thailand, and UAE, while it’s also cooperating with Bank of France and the Swiss National Bank to test wholesale digital currencies in cross-border settlements.

Central banking institutions in dozens of countries around the world are currently working to develop and launch CBDCs, with the People’s Bank of China arguably having the most advanced project. The U.S. Federal Reserve, Bank of Russia, and the European Central Bank are also progressing towards issuing their own digital currencies.

Do you think the Reserve Bank of New Zealand will eventually decide to issue a national digital currency? Share your expectations in the comments section below.

via Lubomir Tassev

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Crypto Exchange Bitbay Passes Audit Under Estonia’s Tougher New Regulations

Bitbay has become a fully licensed cryptocurrency exchange in Estonia which introduced stricter rules for the industry last year. The European trading platform has recently passed an independent audit that confirmed its “solvency, security and fiscal responsibility.”

Audit Examines AML and KYC Procedures at Bitbay

Bitbay, a leading crypto trading platform in Europe, is now a fully licensed and regulated exchange under Estonia’s stringent regulations imposed last fall. The company has been audited by an independent third party which thoroughly examined its accounting practices, including anti-money laundering (AML) and know-your-customer (KYC) procedures.

The inspection also verified the platform’s financial assets, including crypto and fiat funds, as well as the current state of user accounts. Income, revenue, and profit were analyzed too, and according to an announcement published on the exchange’s website on Wednesday, the audit has confirmed Bitbay is solvent, secure, and fiscally responsible.

Estonia tightened its licensing regime for crypto service providers in late 2020 and they are now required to meet the same standards as traditional financial institutions under the country’s Money Laundering and Terrorist Financing Act. In December, the Baltic nation’s Financial Intelligence Unit revoked more than 1,000 licenses previously issued to virtual currency firms.

Bitbay referred to the successful audit as a milestone, not only for the exchange itself but also the crypto industry in general. The company noted that “regulation is fundamental to creating a secure future for digital money and cryptocurrency exchanges.” It insisted that “only by bringing cryptocurrency into the light will we be able to open it up for everyone,” emphasizing its commitment to work with authorities to “transform how deposits, trades, and tax flow transparently to, through and from crypto exchanges.” Bitbay further pointed out:

For the million or so users on our platform across Europe, this certification should provide further comfort that their assets are in good hands.

Bitbay also published key figures from its financial statement. According to the provided data, the company has generated €8,849,686 in net revenue between October 2019 and December 2020, resulting in a net profit of €6,491,835 after tax. Its share capital is €100,000.

The crypto exchange was launched in Poland in 2014 but in the spring of 2018, it decided to leave its home country, citing difficulties with access to banking services. Bitbay announced a decision to move its exchange operations to Malta, another EU member state. The government of the “Blockchain Island” has been working to create a crypto-friendly business climate. Digital asset trading platform Crypto.com recently became the country’s first licensed exchange to offer bank transfers.

Do you think more cryptocurrency exchanges will be able to meet Estonia’s stricter regulatory requirements? Tell us in the comments section below.

via Lubomir Tassev

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Dydx Trading Volumes Explode After Latest Chinese Crypto Ban

Dydx, a decentralized exchange, has seen its trading volumes explode in the last few days, surpassing other recognized decentralized exchanges like Uniswap and Pancakeswap. Some analysts have suggested this might be the result of the latest Chinese cryptocurrency ban causing China-based users to move their trading activities to these platforms.

Dydx Bursts With Activity

Dydx, a decentralized exchange that, unlike other similar platforms, offers an order book, has been bustling with activity during the last few days. The activity in the decentralized exchange has grown enormously, with volumes surpassing those of its decentralized rivals such as Uniswap and Pancakeswap. In fact, On September 26, dydx trading volumes surpassed those of Coinbase, achieving a big milestone for the platform.

According to Antonio Juliano, Dydx’s founder, the exchange managed to move $3.68 billion on September 26, while Coinbase moved $3.61 billion on the same day. Dydx was originally based on Ethereum, but it has since included an L2 layer called Starkware, which allows for much cheaper fees offering the same functionality to its users. This has also caused the exchange to become popular, now being more appealing to everyday traders.

Chinese Exodus to Decentralized Exchanges

Due to the incredible growth in Dydx’s trading volumes, some analysts have declared that this might be the result of Chinese traders moving to decentralized alternatives after being abandoned by their centralized counterparts. This abandonment was motivated by the recent cryptocurrency ban that forced Asian exchanges to stop offering services to mainland China-based users.

Decentralized exchanges are the best option for Chinese traders right now because they don’t enforce KYC policies for their customers. This means that traders can continue to keep holding and exchanging their assets without the risk of government intervention, and now, this trait is key for Chinese users.

The value of dydx, the governance token of the exchange, has also been on a constant rise since it was awarded to its traders earlier this month. The token has gained more than 100% in just a month, and its price now hovers around the $24 mark. This means that the airdrop offered to traders is now worth more than double when it was awarded, with some traders now having obtained $900K worth of dydx.

What do you think about the recent explosion in dydx trading volumes? Tell us in the comments section below.

via Sergio Goschenko

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