Crypto Exchanges Bypass Proper Licenses, Exaggerate Daily Trading Volume: Report

Certain crypto exchanges are boasting about their licenses and daily trading volume, but their claims appear suspect.

That's according to Cointelegraph, which has been looking into the matter of whether Bitspay and other companies are truly regulated.

What Happened: Estonia's Financial Intelligence Unit (FIU) confirmed to the outlet that Bitspay doesn't hold a valid license to operate in the country.

At one point, Bitspay insisted that it was regulated under the Estonian “Anti Money Laundering Counter-Terrorism Financing Act 2019." Founder and CEO Kelly Nova then clarified to Cointelegraph that the startup was currently working on attaining licenses in both Estonia and the U.K.

Why It Matters: The dubious nature of crypto licenses is an ongoing concern within the crypto industry, as is the veracity of daily trading volume.

Bitspay, for example, claimed to handle up to $1.4 billion in daily trading volume on CoinMarketCap.

The true trading volume at both Topcredit and Bika has also been scrutinized.
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Meanwhile, Binance has deregistered its Europe entities, Cyprus and U.K. It also closed its Netherlands operations after failing to receive a local license. Its German license application was also dropped.

The company has, however, resumed operations in Belgium after the country's Financial Services and Markets Authority required the exchange to suspend services and return customer holdings back in June mainly due to operating without required regulatory licenses.

Also Read: Taiwan Polishes Crypto Regulations, Plans To Ban Non-Compliant Offshore Exchanges

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