Bybit Suspends UK Operations; Binance Seeks Lawsuit Dismissal; Tether Invests in AI Initiatives
Summary:
Dubai-based cryptocurrency exchange, Bybit, is suspending its operations in the UK starting October 1, in response to impending regulations from the Financial Conduct Authority. In related news, Binance and its CEO Changpeng Zhao have jointly filed to dismiss a lawsuit by the U.S. Securities and Exchange Commission, contending overreach of regulatory authority. Additionally, the company behind Tether has invested in German crypto miner Northern Data Group, with the aim to back AI initiatives.
Due to an impending decision from the UK's Financial Conduct Authority (FCA), cryptocurrency exchange Bybit, located in Dubai, has decided to halt its services in the UK. This cessation, beginning on October 1, will affect both existing and potential users, with new admissions halted and current services suspended, including new deposits, contracts, and position alterations, which will kick off on October 8. Bybit claimed this decision stems from new regulations introduced by the FCA pertaining to marketing and communication in the cryptocurrency industry.
Binance Holdings has filed for a dismissal of the lawsuit against it by the U.S. Securities and Exchange Commission, alongside its U.S. division and CEO Changpeng Zhao. The claim, lodged on September 21, contends that the SEC over-arched its jurisdiction by not providing clear guidelines on the sector prior to initiating the lawsuit, thereby imposing its regulatory scope retroactively. Legal representatives for Binance countered that the lawsuit misinterprets securities laws and how they apply to cryptocurrencies.
Meanwhile, the company behind Tether has made substantial investments in the Germany-based Northern Data Group, a cryptocurrency mining operation. The exact investment was not specified, contrary to reports claiming it exceeded $420 million. Tether's USDT, the most substantial stablecoin, valued over $83 billion, emphasized this investment will have no bearing on customer funds. The Northern Data Group disclosed these funds will be directed towards hardware typically used in the AI field.
Published At
9/22/2023 8:39:29 PM
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