CoinEX Targets Hong Kong Users with New Crypto Trading Service

Cryptocurrency exchange CoinEX has launched a digital asset trading platform for its users in Hong Kong. Dubbed BitHK, the platform, which seeks to apply for a Virtual Asset Service Provider (VASP) license from the Securities and Futures Commission of Hong Kong (SFC) on June 1, would offer spot trading and digital asset storage services in both the taditional Chinese and English languages. Additionally, BitHK aims to expand its current offerings.

''BitHK is constantly improving and plans to introduce P2P crypto trading on top of spot trading to support both HKD deposits and withdrawals,'' said Haipo Yang, CEO of CoinEX, in a statement. ''As an integral part of Hong Kong's financial services industry, BitHK has an obligation to uphold the city's image as an internationally recognized 'inclusive and open' financial hub.''

CoinEX’s launch of BitHK specifically for the Hong Kong users comes at an interesting time: the city has just reviewed its cryptocurrency regulation to allow retail investors to participate in digital asset trading per a consultative process detailed last year.

Hong Kong Opens Up for Crypto

In efforts to re-establish itself as a digital asset hub, Hong Kong said in a statement last October that it was seeking to introduce regulations to the digital asset sector similar to those governing the traditional financial space. Christian Hui, Hong Kong’s secretary for Financial Services and Treasury, emphasized the statement in March this year, noting that many companies had expressed interest in setting up operations in the city.

Speaking during the Aspen Digital Web 3 Investment Summit on March 20, 2023, Hui said that as of February this year, Invest Hong Kong had gotten expressions of interest from more than 80 virtual asset-related digital asset firms from Mainland and foreign markets, including virtual asset exchanges, blockchain infrastructure companies, wallet, and payment services providers.

Regulatory Pressure in the US

Elsewhere, CoinEX is battling tougher regulation. The exchange was recently sued by the New York Attorney General, Letitia James, for operating unregistered business against the state laws. As a result, James is seeking a ban on CoinEX from operating in New York.

Some of the services offered by CoinEX include spot and margin trading, futures, swaps and financial management services. It also operates as an Automated Market Maker (AMM). The exchange was founded in 2017 and serves 5 million users across more than 200 countries, according to CoinMarketCap.

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Kraken to Suspend ACH Deposits and Withdrawals

<p>Following the <a href="https://www.financemagnates.com/cryptocurrency/silvergate-bank-announces-voluntary-liquidation-amid-troubles/" target="_blank" rel="follow">collapse of Silvergate Bank</a>, the crypto exchange Kraken has decided to end support for ACH deposits and withdrawals from 27 March 2023. It is one of the many crypto exchanges using Silvergate Exchange Network (SEN) for ACH settlements in the US since 2019.</p><p>Kraken Faces the Impact of Silvergate Bank Collapse</p><p>On Wednesday, Kraken sent an email to its customers, notifying the upcoming restrictions on the deposit and withdrawal methods on the exchange. It came as the crypto platform faced issues after the crypto-friendly lender's collapse.</p><p>However, the termination of ACH deposits and withdrawals will be temporary, as Kraken is already searching for a new banking partner to reinstate these services. "Our team is working to make ACH funding available again as soon as possible," Kraken stated.</p><blockquote><p>?? KRAKEN WILL “NO LONGER SUPPORT ACH DEPOSIT AND WITHDRAWALS” STARTING MARCH 27TH.CHOKE CHOKE CHOKE <a href="https://t.co/kKLpWi5oYi">pic.twitter.com/kKLpWi5oYi</a></p>— DIRTY BUBBLE MEDIA: BYE BYE BYE (@MikeBurgersburg) <a href="https://twitter.com/MikeBurgersburg/status/1638621487828443147?ref_src=twsrc%5Etfw">March 22, 2023</a></blockquote><p>In addition, the crypto exchange specified that users would no longer see a deposit option via Plaid or a withdrawal option via ACH Silvergate. All other deposit and withdrawal services will be in place, "including ACH instant purchases via Online Banking."</p><p>On top of that. the exchange urged crypto traders and investors to use alternative funding options on the platform, including MVB Bank for Fedwire deposits and withdrawals. Other instant purchases will continue to work.</p><p>Crypto Exchanges Need a New Banking Infrastructure Provider</p><p><a href="https://www.financemagnates.com/tag/kraken/" target="_blank" rel="follow">Kraken </a>is one of many cryptocurrency exchanges operating in the US that faced the consequences of Silvergate Bank's and <a href="https://www.financemagnates.com/cryptocurrency/signature-bank-collapse-coinbase-and-paxos-disclose-massive-exposure/" target="_blank" rel="follow">Signature Bank's recent collapse</a>. Both were crypto-friend banks and offered real-time settlement infrastructure. Silvergate discontinued its settlement infrastructure as the bank decided to go into voluntary liquidation. </p><p>Meanwhile, Signature Bank's Signet continues to operate even after the lender went under the Federal Deposit Insurance Corporation (FDIC) receivership. However, the fate of Signet remains in the doldrums.</p><p>Coinbase is another crypto exchange that recently stopped supporting Signet and is looking for a new banking technology partner. However, several other crypto platforms stopped using Signature Bank's infrastructure even before the collapse of the bank. Winklevoss twins' Gemini was one exchange that terminated deposits and withdrawals through Silvergate ACH and wire transfers on 2 March as the bank shares plummeted.</p><p><a href="https://www.financemagnates.com/cryptocurrency/silvergate-effect-bybit-becomes-latest-crypto-exchange-to-halt-usd-withdrawals/" target="_blank" rel="follow">Bybit </a>was another crypto exchange to temporarily suspend US dollar withdrawals on 10 March, <a href="https://www.financemagnates.com/cryptocurrency/binance-to-suspend-usd-bank-transfers-from-wednesday/" target="_blank" rel="follow">following Binance</a>, the global arm of which suspended USD deposits and withdrawals in February. However, neither of these two exchanges clarified if the troubles at Signature Bank or Silvergate Bank have impacted them.</p> This article was written by Arnab Shome at www.financemagnates.com.

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Coinbase Beats Q4 Estimations, Doubles Revenue

Coinbase Global Inc (Nasdaq: COIN) has generated $2.5 billion in revenue in the fourth quarter of 2021. It was a substantial gain from the previous quarter’s $1.

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Gemini Acquires Omniex to Introduce Prime Brokerage Services

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Gate.io Crypto Exchange Confirms its SFC License Application

Gate Group, the owner of the Gate.io crypto exchange trading brand, has confirmed to apply for regulatory approval with the Securities and Futures Commission (SFC) in Hong Kong. It is, thus, another cryptocurrency platform that wants to join the local market before the new digital assets' regulations take effect in June.

Gate.io Awaits SFC Authorization

According to the recent press release, Gate Group has already applied for an SFC license and is planning to pursue the Virtual Asset Service Provider (VASP) License under the anti-money laundering laws to trade non-security tokens. Additionally, the crypto exchange wants to apply for Licenses under the Securities and Futures Ordinance for Type 1 (Securities Dealing) and Type 7 (Automated Trading Services Provision) regulated activities to facilitate security token trading.

In February, the exchange obtained a Trust and Corporate Service Provider (TCSP) license from the Company Registry in Hong Kong, allowing the Group to offer virtual assets custody services. Additionally, it announced intentions to launch a local Gate HK branch that will comply with the special administrative region's licensing requirements. The information and an update on applying for SFC authorization were confirmed this week.

"The anticipated VASP Licences will ensure Gate HK maintains the highest standards of security and regulatory compliance, fostering trust and confidence among its customers. Gate Group is eager to contribute to the groundbreaking Web3 Festival in Hong Kong and support the ongoing development and expansion of the Web3 ecosystem," the company commented in the statement.

Gate.io Launches Gate Wealth

Additionally, the leading crypto exchange has unveiled a novel wealth management solution called Gate Wealth. This service aims to deliver tailored wealth management options to cryptocurrency investors worldwide, assisting them in efficiently managing their digital assets.

Gate Wealth presents a selection of investment instruments and structured products. These encompass interval interest calculation, double no-touch, compounding, and quantitative strategies. In addition, the platform devises personalized product solutions to address users' income, asset protection, and leverage ratio requirements.

"Gate Wealth is a new wealth management product launched by Gate.io to provide investors with considerate and efficient services. With the rapid development of the encryption market and increasingly fierce competition, Gate Wealth aims to bring better investment experience and more opportunities for global crypto investors," Dr Han Lin, the Founder and CEO of Gate.io, said.

Lin underscored that Gate.io is eager to delve into the thriving cryptocurrency landscape alongside its clients, jointly pursuing their mutual wealth growth objectives.

Traction after FTX Collapse

In the immediate aftermath of the FTX cryptocurrency exchange's downfall, retail investors predominantly gravitated towards Crypto.com and Gate.io platforms, as highlighted by a recent analysis carried out by Trading Browsers, a digital assets analytics tool.

In the wake of the FTX ecosystem collapse, Trading Browsers conducted an analysis of the largest cryptocurrency exchanges to determine which experienced the most significant growth in Google Search and trading volumes from November 9 to 13, 2022.

Source: Trading Browsers

The research findings revealed that Crypto.com experienced a remarkable uptick of 333% in Google searches and an increase of 232% in trading volume during the specified timeframe. On top of that, Gate.io saw a substantial rise in search interest, with an increase of 300%, and a considerable boost of 181% in overall trading volume.

A few months ago, Gate.io's US subsidiary, Gate US, obtained multiple state licenses to expand its crypto exchange operations. However, services for US customers remain pending amid ongoing regulations. Meanwhile, Gate.io launched GateTR, a cryptocurrency exchange tailored to Turkey's market, catering to the country's eight million active digital asset traders.

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