Crypto-Friendly Xapo Bank Enters Indian Market

Bakkt Signals Interest in Entering Hong Kong MarketBakkt, the US digital asset platform owned by Intercontinental Exchange, Inc., the owner of the New York Stock Exchange (NYSE), has set its sights on international expansion, with Hong Kong headlining its focus on regions that offer clearer regulatory frameworks for cryptocurrencies.Photo by Jimmy Chan on PexelsGreater regulatory clarity overseasCEO Gavin Michael highlighted Hong Kong as a target market for the company, given that the autonomous Chinese territory is making rapid progress in establishing regulatory clarity, and at a faster pace than in the United States. Alongside Hong Kong, Michael also earmarked the UK and parts of the EU as possible target markets based on similar rationale.Michael made the comments while speaking at the Piper Sandler Global Exchange & FinTech Conference in New York recently. While emphasizing the company’s commitment to the US market, Michael stated that Bakkt is actively seeking markets where it can gain traction and utilize them as a catalyst for growth. The recent acquisition of Apex Crypto, an integrated crypto-trading platform based in the US, further supports Bakkt’s international plans.Leveraging existing partnershipsMichael anticipates leveraging Apex’s existing partnerships with companies such as Webull, M1, Public.com, and Stash to facilitate expansion into international markets. Bakkt aims to accompany these companies as they venture into offering US equities trading, enabling the addition of crypto trading with minimal barriers to entry. However, regulatory concerns have led to the delisting of 25 tokens on the Bakkt platform.Michael highlighted the progress being made in crypto markets outside the US, where regulatory clarity is being achieved more rapidly. He cited the UK’s advancements in clear crypto regulation, Hong Kong’s allowance of trading certain cryptocurrencies, and the EU’s implementation of the MiCA framework for crypto regulation. While supportive of recent regulatory actions in the US, Michael believes that the country needs to provide further clarity, particularly at the federal level.The lack of regulatory clarity in the US has impacted Bakkt’s ability to collaborate with domestic companies. Despite launching with notable partnerships, including Microsoft and Starbucks, Michael revealed that many firms are awaiting clear regulatory guidelines before entering the cryptocurrency space. He noted that trading activity has been slower compared to Bakkt’s custody service, as regulatory clarity plays a significant role in shaping consumer sentiment and providing operational guidelines for trading platforms.Interest in Lightning NetworkIn addition to exploring international expansion, Bakkt is actively considering the use of the Bitcoin Layer 2 Lightning Network for custody and settlement services. Michael explained that this technology has the potential to revolutionize financial services, particularly cross-border payments.Bakkt’s strategic focus on markets with regulatory clarity and its acquisition of Apex Crypto demonstrate the company’s intent to grow beyond the US. By expanding into Hong Kong, the UK, and the EU, Bakkt aims to meet the demand of partners eager to explore these markets.However, the company recognizes the need for the US to provide clearer regulatory guidelines to foster innovation and accelerate adoption within the domestic cryptocurrency industry. With its custody services gaining traction, Bakkt is still optimistic about the potential of trading as regulatory clarity continues to improve. Moreover, Bakkt’s exploration of the Lightning Network showcases its desire to leverage emerging technologies for more efficient financial services.

Cryptocurrency exchange Backpack has recently forged a strategic partnership with Banxa, a global crypto on-ramp provider, to introduce a comprehensive digital asset on- and off-ramp solution. Onboarding into cryptoThis collaboration, announced by Banxa on Monday, marks a significant milestone for Backpack users globally. If crypto and Web3 are to live up to their promise, then on-ramping and onboarding people from conventional financial services is key to broadening out adoption. Given the service provided by Banxa, the partnership has great importance. Notably, Backpack Exchange, which recently secured a virtual asset service provider (VASP) from the Virtual Asset Regulatory Authority (VARA) in Dubai, emerged from the minds behind Solana's renowned Mad Lads NFT collection, adding a layer of credibility to this venture. Since then, the platform has been steadily expanding its operational footprint. Throughout the latter half of 2023, the exchange acquired several operational licenses across various jurisdictions worldwide, further solidifying its regulatory compliance and global presence. The platform’s user base spans across more than 130 countries. Banxa hit the headlines in the crypto sector earlier this month when it emerged that the firm’s UK affiliate had become the first entity in 2024 to take its place on the Financial Conduct Authority’s (FCA) crypto register.Photo by Shubham Dhage on UnsplashIndustry responseAnndy Lian, a Singaporean intergovernmental blockchain expert and the author of the book "NFT: From Zero to Hero," views this partnership as a game-changer for Backpack users. Lian told Cointelegraph that this link-up will add to the ease with which users can now engage in buying and selling cryptocurrencies using fiat currencies through various payment methods like credit cards, bank transfers and e-wallets. He emphasizes that such convenience will undoubtedly drive up the adoption and liquidity of Backpack and its associated tokens, thereby enhancing the overall user experience. Trading volume high pointThe announcement of this partnership comes on the heels of Backpack's achievement of surpassing $1 billion in 24-hour trading volume on Sunday, merely four days into the launch of its trading preseason. The exchange had already exceeded $300 million in daily trading volume within the first 24 hours of trading on Feb. 15. In light of this exponential growth in trading volume, Armani Ferrante, the founder and CEO of Backpack, took to the X social media platform to issue a word of caution to traders. Ferrante warned against potential overexcitement that might lead to unfavorable trading outcomes. Ferrante stressed the long-term vision of the platform and urged users to trade responsibly, emphasizing that Backpack has extensive development plans in store, with the preseason serving as just the beginning. Ferrante previously worked for bankrupt exchange platform FTX, which was seen as being at the center of the Solana ecosystem prior to its collapse. The Solana-based Backpack appears to be going some way in filling that void within the Solana community. With that, Solana-based trading pairs feature strongly in Backpack’s overall trading volume statistics. At the time of writing, SOL was trading at $109, down 1.7% over the course of the past 24 hours.  

Hot Wallet Exploit Results in $23M Bitrue LossBitrue, a Singapore-based crypto exchange, has fallen prey to a $23 million hack due to a hot wallet exploit. The exchange has been forced to suspend all withdrawals until April 18, to provide an opportunity to conduct a thorough security review.©Pexels/Karolina GrabowskaHot wallet vulnerabilityHot wallets are used by exchanges to store small amounts of cryptocurrencies for easy access. These wallets are connected to the internet and are therefore more vulnerable to attacks compared to cold wallets, which are stored offline. In the case of Bitrue, hackers were able to exploit the hot wallet and steal cryptocurrencies worth $23 million.In a series of Twitter posts, the exchange outlined that the exploit occurred at 07:18 (UTC) on Friday. “We were able to address the matter quickly and prevented the further exploit of funds”, it went on to state.The stolen digital assets include ETH, QNT, GALA, SHIB, HOT and MATIC. Bitrue outlined that the hot wallet funds account for only 5% of overall funds and that the rest of its wallets remain secure and have not been compromised.Blockchain security firm PeckShield outlined how the funds were swapped and drained. A wallet it has labeled as “Bitrue drainer” swapped 173,000 QNT, 22.55 billion SHIB tokens, 46.4 million GALA and 310,000 MATIC for 8,540 ETH. The ether is now being held within the following address:0x1819EDe3B8411EbC613F3603813Bf42aE09bA5A5Reimbursing usersIn response to the hack, Bitrue has promised to reimburse all affected users. However, the process could take some time.The incident underscores the importance of taking precautions when storing cryptocurrencies on exchanges. Users should only keep a minimal amount of cryptocurrencies on an exchange and should not store more than they can afford to lose. Ongoing exploits, hacks and frauds exemplify the need for users to only use reputable platforms with a proven track record of security.Doubling down on securityBitrue has promised to improve its security measures to prevent similar incidents from occurring in the future. The exchange’s response to the hack has been lauded by many in the cryptocurrency community, who have praised the company’s transparency and commitment to reimbursing affected users.The cryptocurrency community has been vocal in its criticism of exchanges that fail to prioritize security. The Bitrue hack is just the latest in a series of incidents that have highlighted the importance of maintaining security in the world of cryptocurrency.It’s not the first security breach that the exchange has encountered. In 2019 Bitrue suffered a $4.7 million loss, with quantities of both XRP and Cardano (ADA) having been stolen. On that occasion, the exchange released tracking details relative to the stolen funds. Thanks to collaboration with Huobi, Bittrex and ChangeNOW, the funds and associated accounts were frozen.According to data from CoinGecko, Bitrue trades an average of $1 billion in digital assets daily, with bitcoin and ether trading pairs accounting for a large proportion of that trading volume. The Bitrue hack has been a wake-up call for the cryptocurrency community and serves as a reminder of the ongoing risks associated with storing cryptocurrencies on exchanges.