Bitstamp cryptocurrency exchange reported of obtaining a license from the Bank of Spain to provide cryptocurrency services in the country. This marks approval in another European jurisdiction for an exchange, which has focused on the European Union market since its launch in 2011.
The company revealed the news of its Spanish license on November 17. The Bank of Spain approval allows the local Bitstamp affiliate to offer digital currency to fiat currency conversion services. As well as electronic wallet custody services for Spanish users. Bitstamp becomes the 46th virtual asset provider to receive a license in Spain, after Binance and Bitpanda.
Spain has recently demonstrated a moderate approach to cryptocurrency regulation, which goes hand in hand with a high rate of adoption in the country.
FTX Collapse Prompts FINRA to Investigate Crypto Communications
The Financial Industry Regulatory Authority (FINRA), the US self-regulatory organization, has launched an examination of the company’s retail communications regarding the cryptocurrency products and services they offer.
The regulatory body, in an official statement, announced that it is launching a specific examination of companies. This, about the way they handled retail communications between July 1 and the end of September. The decision to scrutinize cryptocurrency-related retail communications follows the collapse of cryptocurrency exchange FTX.
In its notice of review, FINRA asked companies to provide additional information for each individual communication, such as the date it was first made public, whether it was filed with FINRA’s department of advertising regulation, whether a director of the company approved the communication and the identification of the crypto assets or services mentioned in said communication.
Lemon Cash withdrew its capital invested in Alameda days before the collapse of FTX
According to data published According to Bloomberg Línea, Lemon Cash, one of the main Argentine companies in the sector, withdrew the capital it had invested in Alameda, the FTX fund.
The withdrawal date was November 3. That is, days before the company led by Sam Bankman-Fried began the bankruptcy process.
After the collapse of FTX, Argentine wallets came out to calm down their clients. Marcelo Cavazzoli, CEO and founder of Lemon, the platform that currently has the largest number of users in the country, referred to the case.
The controversy surrounding Lemon’s relationship with FTX arose because a social media user identified that Lemon Cash’s Terms and Conditions (T&C) recognized the company’s investments in FTX. But then those T&Cs were replaced and today FTX is no longer listed on them.
The aftershocks of the collapse of the fund, would have caused the cessation of operations of the Genesis Block in Hong Kong
Following the recent FTX scandal, another cryptocurrency company is feeling the repercussions. Genesis Block, one of the leading cryptocurrency trading service providers in Hong Kong, has announced that it will cease operations and close its operations. According to various news.
According to an email sent to its customers by the compliance department, the company said that, effective December 10, it will close its over-the-counter (OTC) trading portal.
Wincent Hung, CEO of the company, told Reuters that the company has ceased operations while counterparties continue to close in light of the fallout from the FTX collapse, and no one can know who is next.
“So we prefer to close all our positions to recover some of our liquidity.”
The company’s website is still active, and there are even help messages for clients interested in continuing to trade via OTC transactions. However, according to the email, the company is asking its clients to withdraw their remaining funds and is no longer accepting new clients.
Genesis Block is not related to the cryptocurrency company Genesis, which offers institutional cryptocurrency trading services. The “other Genesis” has also been affected by the fallout from FTX. And, he tweeted that $175 million of his funds are locked up on the struggling exchange.