{"id":108288,"date":"2020-11-09T20:06:36","date_gmt":"2020-11-09T17:06:36","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/fud-or-regulatory-change-rumor-clouds-swirl-around-crypto-exchanges\/"},"modified":"2020-11-09T20:06:36","modified_gmt":"2020-11-09T17:06:36","slug":"fud-or-regulatory-change-rumor-clouds-swirl-around-crypto-exchanges","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/fud-or-regulatory-change-rumor-clouds-swirl-around-crypto-exchanges\/","title":{"rendered":"# FUD or regulatory change? Rumor clouds swirl around crypto exchanges"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2ea261d35f7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2ea261d35f7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/fud-or-regulatory-change-rumor-clouds-swirl-around-crypto-exchanges\/#A_global_push_to_rein_in_crypto_exchanges\" >A global push to rein in crypto exchanges?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/fud-or-regulatory-change-rumor-clouds-swirl-around-crypto-exchanges\/#An_increasing_likelihood_of_enforcement\" >An increasing likelihood of enforcement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/fud-or-regulatory-change-rumor-clouds-swirl-around-crypto-exchanges\/#What_should_users_do\" >What should users do?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/fud-or-regulatory-change-rumor-clouds-swirl-around-crypto-exchanges\/#Role_of_China\" >Role of China<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/fud-or-regulatory-change-rumor-clouds-swirl-around-crypto-exchanges\/#Is_more_regulation_coming\" >Is more regulation coming?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># FUD or regulatory change? Rumor clouds swirl around crypto exchanges <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTEvOWZkNTE3MDctM2QwZC00OTFmLTlkY2QtMWNkZDc2ZmI5YzE3LmpwZw==.jpg\" \/><\/p>\n<div data-v-5a136f3a=\"\">The mood of fear, uncertainty and doubt, otherwise known as FUD, that has gripped some of the largest cryptocurrency exchanges since October heightened last week \u2014 and it had nothing to do with the United States presidential election.<\/p>\n<p>\u201cWeird Binance fud Friday and weird huobi arrest fud today,\u201d <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/tayvano_\/status\/1323565758929014785\">tweeted<\/a> MyCrypto CEO Taylor Monahan, referring to an Oct. 29 Forbes report that Binance had set up its U.S. unit, Binance.US, as a regulatory decoy and referencing separate rumors that Chinese authorities had detained a senior executive at Huobi. <\/p>\n<p>FUD, which has long dogged the cryptoverse, is commonly defined as misinformation intentionally spread to put a competitor at a disadvantage \u2014 to knock down a rival\u2019s stock price or coin price, for example. It can also result from government action, such as the arrest by U.S. authorities of BitMEX\u2019s co-founder and former chief <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> officer on Oct. 1 or the reported detainment of an OKEx co-founder by Chinese police in early October. It raises speculation: Who is causing the FUD, and what is that party\u2019s motivation?<\/p>\n<p>Binance CEO Changpeng Zhao, for example, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/cz_binance\/status\/1321887211084603392\">characterized<\/a> the leaked document, which detailed the exchange\u2019s purported 2018 plan to evade Bitcoin (BTC) regulation by setting up a U.S. subsidiary with a \u201cfeigned interest in compliance,\u201d as FUD, adding: \u201cThe said document was not produced by a @Binance employee (current or ex).\u201d<\/p>\n<p>In any event, the FUD meter seemed to be rising last week, particularly as the Huobi rumors were accompanied by reports of large Bitcoin withdrawals at the Singapore-based exchange. Boxmining creator Michael Gu, for one, <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/boxmining\/status\/1323273271035359237\">announced<\/a> that he was removing his balances from Huobi &#8220;until this FUD clears up.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_global_push_to_rein_in_crypto_exchanges\"><\/span>A global push to rein in crypto exchanges?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>But was there anything behind all those events? Some have suggested that regulators worldwide \u2014 in the U.S. China and elsewhere \u2014 are now targeting centralized cryptocurrency exchanges, and that is what is causing all the doubt and uncertainty with regard to these largely unregulated enterprises.<\/p>\n<p>Bobby Ong, co-founder and chief operating officer of CoinGecko, is skeptical that there was any such unified plan. As he told Cointelegraph, \u201cThe timing of all these FUD [events] seem to be coincidental,\u201d with the charges against BitMEX being brought about as the result of a prolonged investigation.<\/p>\n<p>Monahan, for her part, allowed for the possibility that regulatory actions could indeed be a key source of recent anxiety; but then again, it could just be rivals spreading rumors and innuendo about one another. Huobi\u2019s coin, Huobi Token (HT), took a hit when the bad <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> broke, falling hundreds of dollars on Nov. 2. Monahan shared with Cointelegraph:<\/p>\n<blockquote><p>\u201cIt is interesting that we\u2019ve seen so much confirmed and rumored regulatory action around the top futures\/derivatives exchanges in the past month. However, it may be that we\u2019re simply seeing an increase of FUD now that these exchanges have their own token \u2014 BNB, OKB, HT, etc. The FUD usually reserved for coins\/tokens is now attached to the exchange itself.\u201d <\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"An_increasing_likelihood_of_enforcement\"><\/span>An increasing likelihood of enforcement?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>But maybe there is a method to all this \u201cFUDiness.\u201d Syren Johnstone, who is executive director of the compliance and regulation program at the University of Hong Kong and has written about regulating crypto exchanges, suggested to Cointelegraph that the global regulatory pendulum is swinging in the direction of tighter control:<\/p>\n<blockquote><p>\u201cIn Hong Kong the government this week proposed to bring all crypto-assets under the oversight of the securities regulator by using money laundering concerns as the stepping stone. Legislation has been proposed in the EU and the U.S. that drives crypto-assets into existing regulatory silos. These actions indicate the wind has definitely changed direction \u2014 [while] strengthened regulatory mandates increases the likelihood of enforcement.\u201d<\/p><\/blockquote>\n<p>Jay Hao, CEO of OKEx, told Cointelegraph: \u201cIt seems as if the regulators have been more prolific over the last months,\u201d particularly with the legal problems surrounding key exchanges. \u201cHowever, this is not surprising as certain moves from regulators such as the U.S. CFTC and the UK\u2019s Financial Conduct Authority have been anticipated.\u201d<\/p>\n<p>As for all the fear, uncertainty and doubt that seem to surround centralized exchanges recently, \u201cThe market is largely retail-driven still and heavily influenced by news and rumors,&#8221; said Hao, adding: <\/p>\n<blockquote><p>&#8220;With the growth of DeFi, there has certainly been more FUD and backlash against centralized exchanges and I think that this is more what we are seeing rather than major increased action by regulators.\u201d<\/p><\/blockquote>\n<p>It should be noted that OKEx itself became a FUD talking point after an Oct. 16 report by a Chinese news agency saying that the exchange\u2019s founder, Mingxing Xu, had been questioned by Chinese police, which was followed by the Malta-based exchange\u2019s suspension of withdrawals. In a Nov. 6 statement, OKEx <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.okex.com\/support\/hc\/en-us\/articles\/360051787072-Update-on-the-suspension-of-withdrawals\">apologized<\/a> \u201cfor the inconvenience caused by the suspension of digital asset withdrawals\u201d and denied claims \u201cthat a concerned party related to OKEx is under criminal detention.\u201d But meanwhile, users still can\u2019t withdraw funds from the exchange.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_should_users_do\"><\/span>What should users do?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Nevertheless, recent events can be worrisome. As Monahan told Cointelegraph, holding funds on central exchanges has always been risky, adding: \u201cNow we are reminded that regulatory action can affect end users and their ability to access their funds. The old adage \u2014 \u2018not your keys, not your coins\u2019 \u2014 remains true.\u201d<\/p>\n<p>Thus, a user\u2019s best choice to retain control of their cryptocurrency is to use cold storage for long-term holding, and when using \u201ca centralized exchange, they should be aware of the risks and choose an exchange that has strong security, a good track record, and doesn\u2019t actively thumb their noses at regulators.\u201d<\/p>\n<p>Why did Gu withdraw his funds from Huobi? \u201cI\u2019m a victim of the Mt.Gox exchange hack, so I prefer playing on the safer side,\u201d he told Cointelegraph. \u201cHuobi denied claims they are under regulatory scrutiny, but can we really trust them? We saw whales move out of BTC in a couple of large withdrawals.\u201d If the exchange becomes insolvent, would the private keys then be held by a government? One doesn\u2019t really know. \u201cIt\u2019s easier to take out funds now and redeposit [them] once it clears up.\u201d<\/p>\n<p>Ong said that users need to understand \u201cthat the risk is high for non-regulated exchanges like those that <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared in the news recently. These exchanges can shut down or disappear overnight due to a \u2018hacking incident.\u2019\u201d By comparison, Ong outlined for Cointelegraph:<\/p>\n<blockquote><p>\u201cRegulated exchanges have higher safety measures as the client funds are segregated and held in custody with a third party. There are also more safety and audit measures put in place by the regulators when issuing licenses to these exchanges.\u201d<\/p><\/blockquote>\n<p>That said, centralized exchanges can be useful for investors who aren\u2019t ready to act as their own banker or custodian. \u201cThere will always be a place for CEXs as an easy way to onboard people to the cryptocurrency space and to offer users a robust and secure environment to store their funds,\u201d said Hao, adding that \u201cAs long as they keep up with local laws, they can offer a secure place for their users.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Role_of_China\"><\/span>Role of China<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Some believe that China is playing a role in the recent FUD. Gu told Cointelegraph that \u201cChina is also stepping up crypto regulation to push people to use their DC\/EP,\u201d the nation\u2019s digital currency project known as Digital Currency Electronic Payment. Ong agreed: \u201cChina is pushing hard to get DC\/EP adoption and wants to show that it is superior to cryptocurrencies.\u201d<\/p>\n<p>Monahan seemed unconvinced on this point, however stated: \u201cHave we actually seen China upping its regulation? It has been pretty locked down for years now.\u201d She further added: \u201cIf we saw action from China akin to the CFTC and DOJ filing criminal charges against the founders of BitMEX then it might be worth investigating that angle. For now, the steps China takes to ensure that its digital yuan has little or no competition remain to be seen.\u201d<\/p>\n<p>Johnstone noted that China\u2019s central bank digital currency is positioned as a fiat currency and a payment tool \u2014 something quite different from cryptocurrency \u2014 further sharing with Cointelegraph:<\/p>\n<blockquote><p>\u201cToo many Chinese citizens had acquired cryptocurrencies by the time China prohibited initial coin offerings. It created a legacy problem that will diminish over time. The basic dynamic in China is that you cannot do much with a cryptocurrency but you will be able to do many things with the CBDC.\u201d <\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Is_more_regulation_coming\"><\/span>Is more regulation coming?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Gu told Cointelegraph that \u201cRegulation is bound to come,\u201d and Johnstone agreed, adding: \u201cThere is definitely more regulation coming for centralized crypto exchanges, as evidenced by what\u2019s now being proposed and contemplated in the EU.\u201d<\/p>\n<p><strong><em>Related:\u00a0The case against BitMEX is a compass pointing toward the future of crypto regulation<\/em><\/strong><\/p>\n<p>In sum, underlying all the recent FUD may be a recognition that governments are looking more closely at large centralized exchanges, especially as cryptocurrencies garner more attention (BTC surpassed $15,600 on Nov. 8) and crypto use becomes more widespread. And this isn\u2019t necessarily a bad thing. \u201cEnforcement and more regulation doesn\u2019t spell the end of cryptocurrencies,\u201d said Johnstone. \u201cThe regulatory end<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> is a stronger and safer market environment.\u201d<\/p>\n<p>Taking a bird\u2019s-eye view, centralized exchanges have come a long way from the Wild West days of only three years ago. As Hao told Cointelegraph, \u201cMost of the scams have been weeded out and exchanges have learned to adapt and build robust platforms.\u201d But that doesn\u2019t mean that governments won\u2019t be demanding more from exchanges in regard to compliance as Bitcoin and other cryptocurrencies become further entrenched.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"\/><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/fud-or-regulatory-change-rumor-clouds-swirl-around-crypto-exchanges\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# FUD or regulatory change? Rumor clouds swirl around crypto exchanges &#8221; The mood of fear, uncertainty and doubt, otherwise known as FUD, that has gripped some of the largest cryptocurrency exchanges since October heightened last week \u2014 and it had nothing to do with the United States presidential election. \u201cWeird Binance fud Friday and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":108289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/9fd51707-3d0d-491f-9dcd-1cdd76fb9c17.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75014,74993,75592,117,4973,70934,67874],"class_list":["post-108288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-binance","tag-bitmex","tag-okex","tag-business","tag-china","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/108288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=108288"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/108288\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/108289"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=108288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=108288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=108288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}