Coinbit suspends operations, marking second crypto exchange shutdown this month

Bybit Overhauls Institutional Trading Platform Bybit InstitutionalDubai-headquartered crypto exchange Bybit has announced the launch of its newly revamped institutional trading platform, Bybit Institutional.Bybit outlined details of the refreshed product offering which the company hopes will provide institutional clients with an elevated trading experience, via a blog post published to its website on Wednesday.The revamped Bybit Institutional platform claims to have introduced a host of new features that it hopes will distinguish it from competitor offerings:Photo by Gerd Altmann on PixabayLiquidityThe platform claims to be one of the largest in terms of open interest for crypto derivatives trading. This position allows for high trading volumes, creating frequent opportunities for clients to enter and exit positions. This heightened trading activity allows clients to execute orders without causing significant market price fluctuations.Asset safetyFollowing the spectacular failure of a number of crypto platforms in 2022, a lot of emphasis is being placed on client asset safety in 2023. Proof of reserve audits has been adopted by some platforms as a direct response to these failures. Bybit Institutional is offering that fail-safe in an effort to demonstrate that it maintains cryptocurrency reserves to cover all client holdings.Between routine audits, the use of robust security frameworks, multi-factor authentication, encryption, and other measures, the platform feels that it is prioritizing the security of client assets. Moreover, clients are also offered the option to utilize third-party custodial services for off-exchange settlement of trades and long-term asset storage.Fee structure optimizationThe platform is offering a fee structure that it claims to have tailored to maximize cost-efficiency for institutional traders. A customized fee schedule has been incorporated, based on trading volumes and strategies, and aimed at supporting institutions’ objectives of reducing trading costs while optimizing their returns.Eugene Cheung, Vice President and Head of Bybit Institutional, expressed his enthusiasm for the platform’s refreshed product offering, stating:“We are thrilled to introduce the new Bybit Institutional page, designed to cater specifically to the needs of our institutional clients. With our deep liquidity, commitment to asset safety, and cost-efficient fee structure, we aim to provide a seamless trading experience for institutions of all sizes.”Bybit Institutional has partnered with significant players within the industry in bringing its offering to market, such as Fireblocks, Copper, and Circle.Blockchain LifeThe United Arab Emirates-based exchange is also a participant in next week’s Blockchain Life 2023 event in Dubai, the 11th international forum on cryptocurrencies, blockchain, and mining. Cheung will participate as one of the panelists at the event on October 24. Titled “Crypto Market Outlook: Insights and Forecasts From Top Crypto Exchanges,” the panel of industry experts will delve into the current crypto landscape, emerging trends, and future forecasts.Bybit’s launch of the enhanced Bybit Institutional trading platform is indicative of the interest that exists between a range of market participants in cornering institutional business. UK bank Standard Chartered, through its Singapore-based subsidiary Standard Chartered Ventures and portfolio companies Zodia Custody and Zodia Markets, is also making a concerted effort to muscle in on this market segment.

Israel Freezes Crypto Accounts Linked to HamasIsrael has taken action to freeze cryptocurrency accounts believed to be involved in a fundraising campaign for the Palestinian militant group Hamas on social media, according to a statement by Israeli police on Tuesday.Hamas recently carried out a series of devastating attacks from Gaza into Israel, leading to one of the most severe escalations in the Israel-Palestinian conflict in years.According to the police statement:“With the outbreak of the war, Hamas’ terrorist organisation initiated a fundraising campaign on social networks, urging the public to deposit cryptocurrencies into their accounts.”Photo by Taylor Brandon on UnsplashBinance implicatedIn response, the Police Cyber Unit and the Ministry of Defense, with the cooperation of global crypto exchange Binance, located and froze these accounts, with the intention of diverting the funds to the state treasury.While the statement did not provide specific details about the number of accounts frozen or the value of the cryptocurrencies seized, it emphasized the government’s proactive efforts to counteract these activities.Hamas had been using cryptocurrencies as a fundraising method for some time, but in April, the group announced that it would discontinue receiving donations in Bitcoin, citing an increase in “hostile” activities against its donors.Binance has been cooperating with global law enforcement agencies and regulators to combat illicit activities, including those related to terrorism financing. A spokesperson for Binance stated:“Over the past few days, our team has been working in real time, around the clock, to support ongoing efforts to combat terror financing.”Unwelcome attentionThe exchange also mentioned that the data used to identify individuals and entities associated with specific organizations comes from intelligence provided by law enforcement and investigative tools developed in collaboration with partners.While Binance is cooperating with law enforcement on these matters, such specific attention is likely to be unwelcome. The exchange platform has been the subject of severe regulatory pushback internationally in 2023. Any suggestion of terrorist financing being enabled through the platform, even if unknowingly so, won’t be helpful to the business in overcoming its regulatory challenges.In the lawsuit taken against Binance by the Commodity Futures Trading Commission (CFTC) in the United States earlier this year, the CFTC claimed that Binance was aware that it had facilitated terrorist financing, specifically referring to Hamas-related transactions.Given that all eyes are currently on the activities of the Palestinian terrorist group, there could also be trouble for rival platform Bitfinex. According to a Wall Street Journal report earlier this year, Bitfinex Turkiye was alleged to have facilitated an account that was used by Hamas for money laundering purposes.Previous crypto seizuresThis action by Israel is not the first of its kind. In May, Reuters reported that Israel had seized approximately 190 crypto accounts on Binance since 2021, including two accounts linked to the Islamic State and dozens owned by Palestinian firms associated with Hamas.Binance responded to these developments by affirming its commitment to cooperate with law enforcement agencies and emphasized that it uses information available only to law enforcement to identify individuals involved in activities related to illicit organizations.

CoinGecko expands data offering through Zash acquisitionCoinGecko, the Malaysian crypto data aggregator, has intensified its focus on the non-fungible token (NFT) market through the recent acquisition of London-headquartered Zash. The move forms part of CoinGecko’s initiative to enhance its API offering by providing comprehensive data on digital collectibles.Photo by Andrey Metelev on UnsplashSolving for crypto data fragmentationIn a statement published to its website on Wednesday, CoinGecko provided further details on its acquisition of the enterprise-grade NFT and blockchain analytics company. Separately CoinGecko Co-Founder Bobby Ong told Tech in Asia that the crypto data sector is fragmented. As a consequence, it leads to inefficiency as market participants are forced to navigate multiple crypto data APIs. It’s in an effort to solve that issue that Ong and CoinGecko have moved to acquire Zash.Zash Co-Founder and CEO Parit Patel expressed optimism about the evolving nature of NFTs and their potential to unlock new use cases globally, creating value for both companies and consumers. The company plans to introduce new services derived from the acquisition by the second quarter of 2024.Enriched data offeringIn its own statement, CoinGecko emphasized its commitment to offering more NFT-related metrics. The acquisition aims to enrich CoinGecko’s data offerings with information such as metadata, historical trades and lending data related to NFTs. The specific financial details of the deal were not disclosed.With the integration of Zash, users can expect access to a broader range of data across multiple blockchain networks, including Ethereum, Polygon, BNB Chain (formerly Binance Smart Chain), Bitcoin Ordinals and Solana. The extended services will cover NFT lending information indexing various marketplaces, such as Blend, X2Y2 and NFTfi.In reflecting on the acquisition, CoinGecko Co-Founder TM Lee considered the move in terms of the ongoing process of asset tokenization. Taking to the X platform, Lee wrote:“Any asset that can be tokenized, will be tokenized. Like tokens, NFT is a core primitive to the crypto economy stack. We’ve been building http://coingecko.com/nft earlier even in the bear market and I’m excited on possibilities within the NFT industry with @zash_api joining us!”Monitoring wash tradingOne notable feature introduced through Zash is the ability for users to monitor wash trading, an illegal form of market manipulation that gives the false impression of market activity. CoinGecko clarified that this feature would be available for “major collections” minted on Ethereum.Wash trading, involving the simultaneous buying and selling of assets, has been associated with the NFT bubble of 2022. Blockchain forensic firm Chainalysis reported that over 100 profitable wash traders collectively earned nearly $9 million from this activity. However, it noted that the majority of NFT wash traders have been unprofitable, resulting in losses exceeding $416,984 from more than 150 wash trades.While the NFT market has faced challenges, with total sales currently at $80.8 million, significantly lower than the peak in August 2021 when daily sales exceeded $2 billion, CoinGecko’s strategic move positions the company to provide users with enhanced tools for assessing and ranking their cryptocurrency holdings. Established in 2014, CoinGecko operates as a platform offering comprehensive data and information on digital currencies, contributing to the quantitative evaluation of cryptocurrency portfolios.