HTX bounces back following DDoS attack

FD International joins hands with Lbank to expand global blockchain ecosystemFD International, the parent company of blockchain consulting and IT company Blockchain Innovation, announced on Friday (local time) that it has signed a memorandum of understanding (MOU) to collaborate with the global cryptocurrency exchange LBank.Photo by Shubham Dhage on Unsplash“Blockchain-related industries are growing exponentially worldwide, and we hope to create an ecosystem that can have a positive impact on many people through our well-prepped collaboration with LBank,” said FD Group CEOs Jeon Da-seul, Lee Seo-yeon, and Jeon Sol.Lbank’s global presenceEstablished in 2015 in Indonesia, LBank currently boasts a user base of over 10 million people and a daily trading volume of up to $1.5 billion. It currently supports over 50 fiat currencies, several major cryptocurrencies like Bitcoin and Ethereum and a wide variety of payment methods including Apple Pay. It also operates branches in other countries like the U.S. and Canada.Navigating regulatory landscapesFD International has been working on creating Travel Rule solutions for Korean exchanges such as Bithumb, Coinone and Korbit in accordance with relevant regulatory guidelines like the Act on Reporting And Using Specified Financial Transaction Information. The Travel Rule refers to the Financial Action Task Force’s (FATF) Recommendation #16, which outlines that VASPs must share certain personal information about customers — including names and account numbers — when facilitating crypto transactions that exceed a certain amount.The firm has also been leveraging its expertise in the blockchain and IT fields to help accelerate major companies such as Klaytn and Everscale. Notably, the company adapts its solutions and technological capabilities to regulatory trends, such as the Financial Services Commission’s (FSS) regulations on security token offerings (STOs) and the European Union’s Markets in Crypto-Assets Regulation (MiCA) legislation.

According to India’s Finance Ministry, Binance and a number of other virtual asset service providers (VASPs) are not tax-compliant in India. Cases of tax evasion detectedNews of this matter emerged via written answers, published on Dec. 2, provided in response to parliamentary questions which had been put to India’s Finance Minister, Pankaj Chaudhary. The minister confirmed that a “few cases of evasion of Goods and Services Tax (GST) by cryptocurrency exchanges and investors” had been detected. The document goes on to list 17 crypto entities who are currently being investigated on that basis, with Binance being the most well-known among them. Notable Indian exchanges listed include WazirX, CoinDCX and CoinSwitch. Chaudhary included details of cases booked against these exchanges. In Binance’s case, it was required to pay 722 crore Indian rupees, which amounts to around $85.2 million. While Binance doesn’t appear to have incurred penalties, in the case of WazirX, the exchange had an assessed tax shortfall of 40.51 crore Indian rupees ($4.78 million), but after fees and interest, it was provided with a demand for 49.19 crore Indian rupees ($5.8 million). CoinDCX and CoinSwitch were also assessed with a demand for 20.86 crore Indian rupees ($2.46 million) and 19.38 crore Indian rupees ($2.28 million), inclusive of penalties and interest. In the case of WazirX, CoinDCX and CoinSwitch, the exchanges have had to pay an additional 21%, 24% and 37% respectively in fees and interest over and above their original tax liabilities.Photo by Naveed Ahmed on UnsplashPrevious tax and regulatory issuesTo date, the Finance Ministry has recovered 122.3 crore rupees ($14.4 million) as part of these investigations. Binance has as yet not paid the funds demanded by the authorities. It emerged in August that India’s Directorate General of Goods and Services Tax Intelligence (DGGI) had imposed an $86 million tax demand on the company, with Binance contesting the assessment. The global crypto exchange platform had previously paid a $2.5 million fine for having engaged with Indian customers despite not having been approved by the authorities to trade within the country. After a number of months during which it didn’t trade within the Indian market, in August Binance regularized its standing and gained approval to trade. In a request for comment on the matter from Cointelegraph, a Binance representative stated: “We continue to work closely with regulatory authorities and attend necessary hearings to address any concerns and questions. Binance remains responsive and cooperative and is committed to addressing all necessary tax inquiries.” The company recently hired UK-based accounting and business advisory firm Grant Thornton to assist with accounting, tax and audit preparedness. In the case of WazirX, a spokesperson said that “GST law on cryptocurrencies was not clear in India,” and that on this basis, the company found itself being assessed for non-payment of the applicable taxes.

Beijing-headquartered crypto mining equipment manufacturer Canaan recently revealed its financial results for the fourth quarter of 2023, demonstrating that it continues to struggle with profitability despite positive numbers relative to revenues and growth.Photo by Sasun Bughdaryan on UnsplashIncreased revenues and salesAccording to the company’s filing, during the last quarter of 2023 Canaan reported a surge of 45.7% in total computing power sold compared to the preceding quarter, reaching 5.5 million Thash/s. This ascent, which reflects a 191.9% increase from the same period in 2022, signifies not just a recovery but a robust resurgence in demand and operational ability. The company's dispatch of 19.6 million Thash/s throughout the year, marking a 29.6% leap from 2022, aligns with the rebound in bitcoin prices observed in Q4 2023, a pivotal factor shaping Canaan's operational revitalization. 47% growth on previous quarterA closer examination of the financials reveals not only surpassing total revenues but also a notable 47.3% quarter-over-quarter growth. Canaan's foray into international markets, bolstered by securing substantial orders from esteemed public company clients, underscores a buoyant sales performance and a positive outlook for the computing sector. Despite the buoyant sales and revenue figures particularly in the mining machine market, the sector has faced ongoing regulatory uncertainties and market fluctuations. Nonetheless, the company's strategic initiatives, alongside the positive market effects of the approval and listing of spot bitcoin exchange-traded funds (ETFs), have been positive. Moreover, Canaan's investments in wafer supply capabilities and strategic financial maneuvers garnered approximately US$136 million through at-the-market (ATM) programs and preferred shares. Recording a lossYet, the company’s journey in 2023 was not without its hurdles. Q4 2023 witnessed a significant increase in product revenues from the previous quarter but a decline from Q4 2022, attributed to dwindling sales prices as the halving event loomed, underscoring the volatility inherent in the cryptocurrency market. Results published last year are indicative of the company’s difficulty. In Q2 2023, revenues were strong, yet the company wasn’t turning a profit.With Q4 results, it’s now clear that the firm lost $421 million in 2023. In Q4, Canaan recorded a net loss of $139 million. That compares with a loss of $91 million in Q4, 2022. The company also expects tough market conditions in 2024. In its forward-looking outlook, it stated:”For the first quarter of 2024, and the second quarter of 2024, the Company expects total revenues to be approximately US$33 million and US$70 million, respectively, considering the challenging market conditions across the industry. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.” The crypto mining sector remains a very challenging market. With the upcoming Bitcoin halving event set to occur in April, it’s expected that as much as 20% of mining capacity could be forced offline, as some equipment would simply fail to mine on a profitable basis. Indicative of the challenges within the sector, crypto miner Core Scientific was forced into bankruptcy due to market difficulties in December 2022. It has only recently exited that bankruptcy process and now expects to generate revenues of $600 million in 2024. Another Bitcoin miner, Riot Platforms, has warned that profitability may be difficult to achieve in 2024 due to chip shortages.