Katherine Ross

ByBit is suspending services in the UK starting in early October as the UK implements new crypto marketing regulations.



“Bybit has made a choice to embrace the regulation proactively and pause our services in this market. The suspension will allow the company to focus its efforts and resources [on] being able to best meet the regulations outlined by the UK authorities in the future,” a blog post said.



UK customers will no longer be able to create new accounts on ByBit starting on Oct. 1. The company will cease new deposits and position buys on Oct. 8.&nbsp;



“UK Customers who are implicated by these measures are strongly encouraged to take action by Jan. 8, 2024,” the post <a href="https://announcements.bybit.com/en-US/article/announcement-bybit-to-suspend-services-in-the-uk-blt286daa9208c8f3aa/?category=latest_bybit_news&amp;channel=pr_&amp;medium=organic_social&amp;source=twitter&amp;sa_utm_ci=107&amp;pid=Social_twitter&amp;dtpid=16953838071898884&amp;campaign=enannouncement_16953838071898884&amp;utm_source=twitter&amp;utm_medium=organic_social&amp;c=enannouncement_16953838071898884&amp;sa_utm_channel=pr_&amp;sa_utm_tcn=16953838071898884&amp;is_retargeting=true">said</a>.&nbsp;



ByBit cited a June posting from the FCA outlining the new approach as part of its choice to suspend its services in the UK market.



The June FCA <a href="https://www.fca.org.uk/publications/policy-statements/ps23-6-financial-promotion-rules-cryptoassets">post</a> said that the regulation directly impacts consumers buying crypto, FCA-registered crypto companies, those attempting to register and overseas companies marketing to UK customers.&nbsp;



The announcement comes a day after the <a href="https://blockworks.co/news/uk-fca-warning-crypto-firms-unregistered-risk-warnings">UK gave crypto companies a “final warning.”</a>



In the Sept. 21 letter, the FCA cited “poor engagement from many unregistered, overseas crypto asset firms who have UK customers…” It stated that some had “refused to engage with the FCA”, despite the authority&#8217;s outreach attempts. Out of over 150 firms approached, only about 24 responded to a survey.



According to Lucy Castledine, the director of consumer investment, <a href="https://blockworks.co/news/uk-fca-deadline-crypto-marketing-regulation">the regulatory framework requires that crypto firms in the UK</a> present their offerings to UK customers “clearly, fairly and honestly. And they must provide risk warnings people understand.”



The regulations also require certain technical changes, such as the introduction of a cooling-off period. Firms registered within the UK have the option to request an extension of these deadlines until early January.



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ByBit to suspend UK market activity in early October

James Cirrone

Bybit can now officially operate as a crypto exchange and custody service in Cyprus after receiving a license from regulators on Monday.&nbsp;



Crypto users in Cyprus, with a population of approximately 1.2 million, now have full access to the fourth largest centralized crypto exchange in the world by assets. Bybit trails the likes of Bitfinex, OKX and Binance, according to DeFiLlama <a href="https://defillama.com/cexs">data</a>.



In a statement, <a href="https://blockworks.co/tag/bybit">Bybit</a> explained that regulatory authorities in Cyprus are granting it the ability to “offer a full suite of services.” 



Bybit co-founder and CEO Ben Zhou said in a statement that he values compliance in the crypto industry, something that’s been cemented after striking a deal with <a href="https://blockworks.co/tag/cyprus">Cyprus</a> regulators. Bybit itself operates out of a headquarters in Dubai.



“We wholeheartedly support the regulatory objective of building a cryptocurrency industry that is both compliant, secure, and transparent, ultimately benefiting all those seeking financial freedom,” Zhou said.&nbsp;



“This landmark is a testament to Bybit&#8217;s commitment to adhering to robust regulatory frameworks while expanding our global presence.” Blockworks reached out to Bybit but didn’t receive an immediate response.



Cyprus has long aspired to be a crypto hub. The island nation, situated in the Mediterranean sea, <a href="https://blockworks.co/news/cyprus-looks-to-become-global-crypto-hub-with-new-bill">tried to pass a bill to clarify policies on digital assets</a>. The bill never became law, however, and was <a href="https://www.lexology.com/library/detail.aspx?g=8bfa16bb-62d4-4939-add1-2f23a6a2f667">withdrawn</a> in April 2023.&nbsp;



This comes after <a href="https://blockworks.co/news/bybit-flees-canada">Bybit pulled out of Canada</a> in late May because of regulatory changes. Existing Canadian Bybit users won’t be able to deposit or trade on the platform in a little more than a month’s time.



<a href="https://blockworks.co/news/binance-leaving-canada">Binance pulled out of Canada</a> before Bybit but <a href="https://blockworks.co/news/binance-leaves-netherlands-cyprus">has also deregistered in Cyprus</a> pending the implementation of European Union crypto regulations, <a href="https://blockworks.co/news/european-parliament-mica-doesnt-touch">under MiCA</a>.



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Bybit gains Cyprus crypto license weeks after Binance withdrawal

Bybit has become the latest crypto exchange to exit Canada citing “recent regulatory development.”



In a Tuesday blog <a href="https://announcements.bybit.com/article/notice-on-exit-from-canadian-market-bltc1bfb8746d077fda/#">post</a>, Bybit told Canadians that by Wednesday, May 31, the entity would not be able to open accounts on its platform. Further, existing Canadian Bybit users will no longer be able to make deposits or trade after July 31. Bybit advised those users to close out their positions by September 30. After that, they will be liquidated.



This comes as <a href="https://blockworks.co/news/binance-leaving-canada">a myriad of other crypto exchanges are leaving Canada</a> because of the regulatory environment in the country. Notable exits to date include Binance, OKX, Paxos, dYdX and Bittrex.



Most coincide with the Canadian Securities Administrators urging crypto trading platforms to begin the process of registering with them or cease operations.&nbsp;



Under the CSA’s “pre registration undertakings,” firms have to agree to segregation in crypto custody, and they must have a chief compliance officer on staff. They must also eliminate leveraged trading and not allow users to trade or hold stablecoins.&nbsp;



Many firms that weren’t already registered with the state have decided to forego those requirements, which were due by March 23, and simply leave the country behind.



But not all exchanges have followed the same path, with some committed to succeeding in a regulated Canadian market.



<h2 class="wp-block-heading">Coinbase</h2>



The largest crypto exchange based in the US still wants a relationship with its neighbors to the north. More importantly, it wants a piece of Canada’s expected $1.42 billion in crypto revenue in 2023, per <a href="https://techcrunch.com/2023/05/16/canada-binance-coinbase-crypto-regulations/">Statista</a>.



Coinbase Canada signed a pre-registration undertaking (PRU) on March 24 and pledged to work with Canadian regulators to build a strong “regulatory framework.”



“We applaud the Canadian securities regulators’ efforts to bring clarity to the industry and look forward to continuing our collaboration with them on regulation that protects consumers while embracing innovation,” Coinbase wrote in a March 30 <a href="https://www.coinbase.com/blog/building-for-canada-and-the-world-from-canada">statement</a>.&nbsp;



Since then, Coinbase has continued to be effusive in its praise of Canadian regulators. For example, Nana Murugesan, Coinbase vice president of international and business development, <a href="https://www.coindesk.com/policy/2023/05/19/coinbase-praises-canadas-crypto-approach-as-us-regulatory-pressure-intensifies/">told</a> CoinDesk on May 19 that Canada’s approach is far better than America’s because in America, the rules aren’t clear.&nbsp;



“There’s a couple of ways we see regulators acting: one is regulation by engagement; the other one is regulation by enforcement,” Murugesan said. “The latter part is tough, because you don’t know what the rules are. But the Canadian regulator is definitely the former, which is regulation by engagement – which we love.”



<h2 class="wp-block-heading">Kraken</h2>



Like Coinbase, Kraken wasn’t content with abandoning the Canadian market. On March 30, Kraken <a href="https://blog.kraken.com/post/18260/kraken-remains-committed-to-canada/#:~:text=We%20are%20pleased%20to%20announce,with%20the%20Ontario%20Securities%20Commission.">announced</a> that it too had filed a PRU with regulators.



In its press release, Kraken pointed to an OSC survey from October 2022 that found that 31% of Canadians plan to buy crypto assets in the next year. Though, the <a href="https://www.osc.ca/en/news-events/news/osc-survey-explores-canadians-crypto-ownership-and-knowledge#:~:text=The%20average%20crypto%20asset%20knowledge,role%20in%20the%20financial%20system.">survey</a> also showed that nearly half weren’t planning on purchasing any sort of crypto in the next 12 months.&nbsp;



Gemini is another US-based crypto exchanges that has filed a PRU with the CSA. 



<h2 class="wp-block-heading">BitBuy</h2>



BitBuy is one of Canada’s top crypto exchanges and is based in the country, so it was brought under the regulatory umbrella earlier than Coinbase, Kraken and Gemini.



BitBuy was founded in 2016 and was the first trading platform to <a href="https://bitbuy.ca/updates/bitbuy-becomes-first-crypto-trading-platform-to-be-regulated-as-a-marketplace-in-canada#_ftn2">become</a> a regulated crypto marketplace and restricted dealer in Canada.&nbsp;



<h2 class="wp-block-heading">Shakepay</h2>



This Montreal, Canada-based crypto exchange filed a PRU with the CSA on March 24 like many others on the list.



Shakepay tweeted on Tuesday that it&#8217;s now a regulated exchange in Canada.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Big news, Shakepay is now regulated as a Restricted Dealer in Canada 🇨🇦! In addition, Shakepay is the first Quebec-based Crypto Asset Trading Platform to register. We’re committed to serving the Canadian market responsibly, and this registration is proof of that commitment.&mdash; Shakepay — Buy Bitcoin 🇨🇦 (@shakepay) <a href="https://twitter.com/shakepay/status/1663588513797791744?ref_src=twsrc%5Etfw">May 30, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The Ontario Securities Commission has <a href="https://www.osc.ca/en/industry/registration-and-compliance/registered-crypto-asset-trading-platforms">listed</a> Shakepay as one of a number of firms that are permitted to offer crypto products to Ontario residents. Others include Fidelity Digital Assets, Coinsquare, and Newton Crypto.



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Bybit Latest to Flee Canada, but Not All Exchanges Are Leaving

Casey Wagner

Bitstamp is making its foray into crypto lending, starting with select markets that offer more lenient regulatory policies than the US, the company announced Thursday.&nbsp;



Bitstamp is now offering yields on lended crypto, ranging from 1.5% APY on <a href="https://blockworks.co/price/xrp" target="_blank" rel="noreferrer noopener">XRP</a> and 4.4% on <a href="https://blockworks.co/price/usdc" target="_blank" rel="noreferrer noopener">USDC</a> and tether (<a href="https://blockworks.co/price/USDT" target="_blank" rel="noreferrer noopener">USDT</a>). The interest income is paid out in various cryptocurrencies of the investor’s choice, the company said. 



The products are available to customers in France, Italy, Hong Kong and the <a href="https://blockworks.co/tag/UAE" target="_blank" rel="noreferrer noopener">United Arab Emirates</a>, among other regions. Users in the US and UK cannot currently access Bitstamp’s lending services. 



“We acknowledge the risks associated with lending your crypto, that’s why we have built crypto lending from the ground up for enhanced security so you can lend your crypto with increased confidence,” <a href="https://blockworks.co/tag/bitstamp" target="_blank" rel="noreferrer noopener">Bitstamp</a> said in a statement. 



In an effort to promote transparency, Bitstamp <a href="https://blog.bitstamp.net/post/lend-crypto-with-confidence-and-full-transparency/">said</a> it will be sharing a monthly performance report to include borrower risk profiles, collateral levels and more. The firm has not yet released its first report.&nbsp;



The yields are comparable to other lending programs based outside the US. Bybit, which currently blocks US IP addresses, offers 1.8% yield on bitcoin (<a href="https://blockworks.co/price/btc" target="_blank" rel="noreferrer noopener">BTC</a>) and 5.5% on USDT, with flexible staking periods. 



Options for lending and staking for retail investors in the US have dwindled as <a href="https://blockworks.co/news/sec-crypto-enforcement-actions-accelerate">regulatory pressures increased</a>. US-based exchange Kraken recently <a href="https://www.sec.gov/news/press-release/2023-25">settled with the SEC</a> for $30 million over its staking product.&nbsp;



Coinbase is still offering its Earn product, where users can generate 1.5% APY on USDC and more than 6% on Cosmos, but regulators appear to be cracking down on the service.&nbsp;



The publicly-traded exchange was <a href="https://blockworks.co/news/sec-serves-coinbase-in-latest-alleged-crypto-securities-violation">issued a Wells notice late last month</a> over concerns regulators have with its Earn, wallet and prime brokerage offerings. The SEC has not yet released an enforcement action, which succeeds a Wells notice. 



“We are confident in the legality of our assets and services, and if needed, we welcome a legal process to provide the clarity we have been advocating for and to demonstrate that the SEC simply has not been fair or reasonable when it comes to its engagement on digital assets,” Coinbase <a href="https://www.coinbase.com/blog/we-asked-the-sec-for-reasonable-crypto-rules-for-americans-we-got-legal">said</a> when the notice was issued. “Rest assured, Coinbase products and services continue to operate as usual — today’s news does not require any changes to our current products or services.”



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Bitstamp Rolls Out Crypto Lending in Europe, UAE — US Has to Wait

Shalini Nagarajan

The Mastercard and Visa duopoly has been signing fresh debit card partnerships with crypto companies even as government officials butt heads over regulating the industry.



Payments giants stand to gain partnerships with crypto companies as they get access to new sources of revenue. In turn, crypto companies get access to a global payment network.&nbsp;&nbsp;



Some examples of crypto partnerships with the payments giants below show they aren’t holding back on the sector.



<h2 class="wp-block-heading">Binance</h2>



Binance recently <a href="https://www.binance.com/en/blog/payment/binance-and-mastercard-launch-prepaid-crypto-card-in-brazil-1501690616956776269?irclickid=x39ws9U0hxyNRNpRHdUyETowUkARz9R7BWk4Ss0&amp;irgwc=1&amp;ref=&amp;registerChannel=x39ws9U0hxyNRNpRHdUyETowUkARz9R7BWk4Ss0" target="_blank" rel="noreferrer noopener">launched</a> a prepaid crypto card through a Mastercard partnership in Brazil, allowing local residents to make purchases and pay bills with crypto as long as they hold a national ID.&nbsp;



Binance and Mastercard had already <a href="https://www.mastercard.com/news/latin-america/en/newsroom/press-releases/pr-en/2022/august/binance-and-mastercard-launch-prepaid-card-in-argentina-to-bridge-cryptocurrencies-and-everyday-purchases/" target="_blank" rel="noreferrer noopener">teamed up</a> last year for a prepaid card in Argentina.&nbsp;



<h2 class="wp-block-heading">Bit2Me&nbsp;</h2>



Spain-based Bit2Me last month <a href="https://www.bloomberg.com/press-releases/2023-02-09/largest-spanish-crypto-exchange-bit2me-launch-debit-card-with-up-to-9-cash-back" target="_blank" rel="noreferrer noopener">launched</a> a Mastercard-powered debit card offering 9% cashback to customers. The exchange had already partnered with the payments provider for its original card, which allowed the conversion of crypto into fiat money.&nbsp;



The card so far works with eight cryptocurrencies that can be linked to its wallet, and the exchange intends to add more cryptocurrencies through the year.



<h2 class="wp-block-heading">Bitso&nbsp;</h2>



Latin American exchange Bitso also <a href="https://twitter.com/Bitso/status/1631324144305606656" target="_blank" rel="noreferrer noopener">rolled out</a> a Mastercard debit card in Mexico this month, offering crypto rewards on purchases. The company said over 100,000 users had already signed up to test the product.



<h2 class="wp-block-heading">Bybit&nbsp;</h2>



Dubai-based Bybit this month <a href="https://www.zawya.com/en/press-release/companies-news/welcome-to-the-future-bybit-partners-with-mastercard-to-offer-crypto-payments-debit-card-trnxxiin" target="_blank" rel="noreferrer noopener">announced</a> the launch of ByBit Card, which is powered by Mastercard and issued by Moorland. The company said it would provide a free virtual card that can be used for online purchases, while a physical card would be launched in April.&nbsp;



The card is said to be accessible to eligible countries in Europe and the UK, which have necessary KYC and anti-money laundering measures in place.



<h2 class="wp-block-heading">Gate.io</h2>



Lithuania-based Gate Group, the firm behind crypto exchange Gate.io, <a href="https://finance.yahoo.com/news/gate-group-announces-plans-launch-093500109.html" target="_blank" rel="noreferrer noopener">revealed</a> the launch of a Gate debit card in partnership with Visa.&nbsp;



A waitlist and registration process is available to customers in most countries in the European Economic Area.



<h2 class="wp-block-heading">Mastercard and Visa say they’re still with crypto</h2>



Reuters <a href="https://www.reuters.com/technology/visa-mastercard-pause-crypto-push-wake-industry-meltdown-sources-2023-02-28/" target="_blank" rel="noreferrer noopener">reported</a> recently that both Mastercard and its competitor Visa are pausing efforts to establish new crypto-related partnerships after a series of bankruptcies in the industry.



Visa quickly denied the report, telling <a href="https://blockworks.co/news/visa-reaffirms-crypto-strategy-mastercard-touts-blockchain" target="_blank" rel="noreferrer noopener">Blockworks</a> it would continue to monitor the crypto industry and pay attention to regulatory developments.&nbsp;



Visa’s job is “to support an array of ways to pay and to study new technologies that may impact the future of payments,” the spokesperson said.&nbsp;



“To that end, we’re focused on growing our core competencies in Web3 infrastructure layers and evaluating the blockchain protocols driving crypto development.”



“Our efforts continue to be focused on the underlying blockchain technology and how that can be applied to help address current pain points and build more efficient systems for consumers and businesses,” a Mastercard spokesperson told Blockworks.&nbsp;



Mastercard initially said it was focused on “the underlying blockchain technology” and how that can help make payment systems more efficient. But in a more recent statement to Blockworks, a spokesperson directly refuted that it was winding down crypto operations.&nbsp;



“[The Reuters article] is inaccurate and does not reflect our activities and plans for this space,” Mastercard said.



“We continue to work with our partners to bring relevant payments solutions and programs to market, guided by Mastercard&#8217;s foundational principles in the digital assets and blockchain space &#8211; stability, regulatory compliance, and consumer protections.”



Simon Schaber, SpoolDAO’s chief business development officer, broke down the win-win situation between both parties:



“By partnering with crypto companies, Mastercard stands to make a lot of money through fees. When a customer uses a crypto debit card, a small transaction fee is taken out of the customer’s wallet and goes to Mastercard,” he said.&nbsp;



“These fees can be quite substantial, so it’s no wonder that Mastercard is so eager to partner with crypto companies.”



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Mastercard, Visa Ink Fresh Crypto Debit Cards With Web3 Startups

Ben Strack

As a year marred by the collapse of various industry players approaches its end, several more firms revealed rounds of layoffs over the past week, bracing for crypto winter’s low point.&nbsp;&nbsp;



Bloomberg <a href="https://www.bloomberg.com/news/articles/2022-12-09/crypto-s-amber-to-end-chelsea-sponsorship-axe-over-40-of-jobs-in-ftx-fallout?leadSource=uverify%20wall" target="_blank" rel="noreferrer noopener">reported</a> Friday that Amber Group is set to cut its workforce to less than 400 from roughly 700. The report came after reporter Colin Wu <a href="https://twitter.com/WuBlockchain/status/1600018582212988929" target="_blank" rel="noreferrer noopener">tweeted</a> Monday that the firm began to lay off hundreds of people again this month.



The company said in a Tuesday tweet that its operations as well as its WhaleFin app “<a href="https://blockworks.co/news/amber-group-says-business-as-usual" target="_blank" rel="noreferrer noopener">are business as usual</a>,” but acknowledged constantly adjusting internal teams and functions.



A spokesperson did not immediately return a request for comment.&nbsp;



Bybit CEO Ben Zhou said in <a href="https://twitter.com/benbybit/status/1599275418502459392" target="_blank" rel="noreferrer noopener">a series of Dec. 3 tweets</a> that the company is set to downsize “across the board” as it seeks to be more nimble to navigate the market slowdown.



“Difficult decision made today, but tough times demand tough decisions,” he said. “I have just announced plans to reduce our workforce as part of an ongoing re-organisation of the business as we move to refocus our efforts for the deepening bear market.”



A spokesperson did not return a request for comment.&nbsp;



Australian crypto exchange Swyftx also said it would be laying off a portion of its team. CEO Alex Harper said in <a href="https://swyftx.com/au/media/press-releases/swyftx-announces-further-team-changes/" target="_blank" rel="noreferrer noopener">a Monday note</a> to company staff that it cut 90 employees as it looks to gear up for tough crypto market conditions potentially getting worse.  



“Swyftx has no direct exposure to FTX, but we are not immune to the fallout it has caused in the crypto markets,” Harper said. “As a result, we have to prepare in advance for a worst-case scenario of further significant drops in global trade volumes during [the first half of] next year and the potential for more black swan-type events.”



Harper said Swyftx has up to five times more employees than most of its main Australian competitors.&nbsp;



“The truth is that Swyftx grew too fast,” the CEO added. “Our world was very different at the start of the year and our forecasts were for global trading volumes to carry on rising for at least six months longer than they did.”



Crypto tax startup Koinly <a href="https://blockworks.co/news/crypto-tax-startup-koinly-cuts-staffers-just-in-time-for-tax-season" target="_blank" rel="noreferrer noopener">recently cut 16 full-time employees</a>, or 14% of the company, representatives said Tuesday. 



In a statement, CEO Robin Singh said crypto investors have a “lack of awareness” when it comes to “filing their crypto losses.” The “actual <a href="https://blockworks.co/news/crypto-main-characters-drop-like-flies-as-bear-market-turns-one" target="_blank" rel="noreferrer noopener">crypto downturn</a>,” according to Singh, has hurt the company by a smaller margin.



<a href="https://blockworks.co/news/gamestop-layoffs-crypto-staff-axed" target="_blank" rel="noreferrer noopener">GameStop also laid off some employees</a>, including members of the team building GameStop’s blockchain wallet, <a href="https://www.axios.com/2022/12/05/gamestop-begins-layoff" target="_blank" rel="noreferrer noopener">Axios</a> reported.



The layoffs mean an increased number of crypto-focused professionals are in search of jobs.&nbsp;



<a href="https://www.linkedin.com/in/julia-draheim/" target="_blank" rel="noreferrer noopener">Julia Draheim</a>, a recruiter at staffing firm Proof of Talent, told Blockworks that although not many crypto companies are currently in growth mode, some smaller firms that recently secured Series A funding rounds are looking to expand their teams with senior-level people.



The employees burned by bankruptcies and layoffs are looking for something more “stable,” she added, noting that word means something different to everyone.&nbsp;



“People that are super passionate about the space in general and see it as something that’s going to be important in the future are definitely not shying away [from crypto],” she said. “Most people just want to make sure that there’s strong funding and product-market fit.”



<h3 class="wp-block-heading">New hires</h3>



Draheim said that while certain former FTX employees have been concerned about being associated with the collapsed exchange, companies have not been holding what happened to their former employer against them.



<a href="https://www.linkedin.com/in/adamcolejacobs/" target="_blank" rel="noreferrer noopener">Adam Jacobs</a>, FTX’s former global head of payments, <a href="https://blockworks.co/news/former-ftx-head-lands-at-nuvei%EF%BF%BC" target="_blank" rel="noreferrer noopener">began his role</a> as a senior vice president of corporate development for Montreal-based payments technology company Nuvei.



Jacobs began working at crypto exchange FTX in June 2021. The crypto exchange <a href="https://blockworks.co/news/5-highlights-ftx-bankruptcy" target="_blank" rel="noreferrer noopener">filed for bankruptcy</a> last month.



Cowen Digital brought aboard <a href="https://www.linkedin.com/in/taylor-s-cable-33282622/" target="_blank" rel="noreferrer noopener">Taylor Cable</a> — a former chief operating officer at Blockchain.com Asset Management — to lead its efforts in Europe and Asia. 



Financial services firm Cowen <a href="https://blockworks.co/news/financial-firm-cowen-unveils-digital-assets-unit" target="_blank" rel="noreferrer noopener">unveiled</a> its digital assets division in March. TD Bank said in August that it would <a href="https://blockworks.co/td-bank-buys-cowen-in-tradfi-push-with-crypto-twist/" target="_blank" rel="noreferrer noopener">acquire Cowen for $1.3 billion</a>, though details about how it could seek to leverage Cowen’s digital assets unit remain unclear. 



Cable was also head of institutional client trading at Blockchain.com. Prior to joining the crypto company, he was COO at artificial intelligence trading broker AiX and spent more than a decade at Moore Capital Management.



Web3 gaming company Immutable hired <a href="https://www.linkedin.com/in/shin-novation/details/experience/" target="_blank" rel="noreferrer noopener">David Shin</a> as its head of business development for the Asia-Pacific region and interim leader of the Europe, Middle East and Africa region.



He joins Immutable from Klaytn Global Group, where he led the team focused on the adoption of the Klaytn blockchain.&nbsp;



Shin left the banking industry in 2019 after working as head of global equity derivatives and repo sales at TD Bank. He went on to be head of exchange at Bitcoin.com and led TZ APAC, a Singapore-based team focused on the adoption of the Tezos blockchain.&nbsp;



NFT platform Magic Eden hired <a href="https://www.linkedin.com/in/chrisakhavan/" target="_blank" rel="noreferrer noopener">Chris Akhavan</a> as its first chief gaming officer. 



Akhavan was previously chief revenue officer at mobile game developer Glu Mobile, which was acquired by Electronic Arts (EA) last year.&nbsp;



Magic Eden <a href="https://blockworks.co/news/nft-marketplace-magic-eden-raises-130m-for-creator-collector-support" target="_blank" rel="noreferrer noopener">raised $130 million</a> in June, bringing its valuation to $1.6 billion. The company launched a venture arm the following month that focuses on investing in Web3 games.



Wave Financial appointed <a href="https://www.linkedin.com/in/harumiuratathompson/" target="_blank" rel="noreferrer noopener">Harumi Urata-Thompson</a> as its chief financial officer.



She is set to help the Los Angeles-based crypto investment advisory company build out its operations infrastructure and back office solutions to better service the team’s institutional and high-net-worth clients. 



Urata-Thompson was most recently CFO at blockchain services company Emrit. Before that, she was chief investment officer at crypto lender Celsius, which <a href="https://blockworks.co/news/celsius-to-file-for-bankruptcy-imminently-report" target="_blank" rel="noreferrer noopener">filed for bankruptcy</a> in July.



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Latest in Crypto Hiring: More Fall Victim to Persistent Layoffs

Bessie Liu

<div id="highlights-block_62bcbc8b6d6e0" class="highlights">
 <ul>
 <li>“A favorable tax regime, supportive legislation, access to capital and a wealth of talent makes Dubai the Web3 hotspot of the future,” a crypto exec told Blockworks</li>
 <li>“India has battled brain drain for decades,” CoinSwitch’s CEO said</li>
 </ul>
 
</div>



India’s <a href="https://cms.blockworks.co/india-clarifies-crypto-taxes-as-trading-volumes-crater/" target="_blank" rel="noreferrer noopener">daunting cryptocurrency taxation</a> policies and seemingly complex treatment of digital assets are pushing local exchanges to Dubai and Singapore.



The nation recently announced a <a href="https://cms.blockworks.co/indias-crypto-tax-takes-effect-with-industry-fearing-it-will-stifle-growth/" target="_blank" rel="noreferrer noopener">1% tax deducted at source</a> (TDS) — meaning crypto users must pay 1% tax on any transaction — on top of a controversial <a href="https://cms.blockworks.co/indias-crypto-tax-takes-effect-with-industry-fearing-it-will-stifle-growth/" target="_blank" rel="noreferrer noopener">30% tax</a> on investment profits.



India’s 30% tax law, which came into effect on April 1, triggered trade volumes at four regional crypto exchanges — WazirX, ZebPay, CoinDCK and BitBns — to immediately <a href="https://www.coindesk.com/business/2022/04/11/crypto-trading-volumes-in-india-collapse-10-days-after-new-taxes-crebaco" target="_blank" rel="noreferrer noopener">crash</a> as much as 72%.



Moves like these have led to India’s central bank being labeled “hostile” to the cryptocurrency sector. Its governor Shaktikanta Das has <a href="https://www.moneycontrol.com/news/business/rbi-governor-interview-citing-crypto-crash-shaktikanta-das-says-rbi-has-been-rightly-cautioning-investors-8559491.html" target="_blank" rel="noreferrer noopener">cautioned against cryptocurrencies</a> and claimed they hold no underlying value.&nbsp;



Nischal Shetty and Siddharth Menon, co-founders of WazirX, have now reportedly shifted operations to Dubai, although they still plan on doing business out of Mumbai.&nbsp;



The Binance Labs-backed exchange told <a href="https://www.businesstoday.in/crypto/story/exclusive-wazirx-ceo-nischal-shetty-co-founder-siddharth-menon-shift-base-to-dubai-330395-2022-04-19" target="_blank" rel="noreferrer noopener">Business Today</a> it is a remote-first organization with employees in over 70 locations. Sameer Mhatre, the third co-founder, continues to head the exchange in India.



Coinbase Ventures-backed Vauld, which recently <a href="https://cms.blockworks.co/coinbase-backed-vauld-cuts-workforce-by-30-seeks-to-halve-exec-pay/" target="_blank" rel="noreferrer noopener">cut</a> its workforce by 30%, shifted its headquarters to Singapore in 2018 alongside ZebPay. CoinDCX is also registered there under the legal name Primestack Pte. Ltd.



“India has battled brain drain for decades. This is a generational opportunity to reset the odds in our favor,” said Ashish Singhal, co-founder and CEO of Bangalore-based CoinSwitch.



CoinSwitch itself isn’t being enticed to move operations away from the country. “We want to play an active role in shaping the Web3 ecosystem in India,” he said.



<blockquote class="wp-block-quote">“Examples from the US and other matured economies show institutional investors are ready to put capital in crypto markets if there is more regulatory clarity.”</blockquote>



While the new taxation in India appears restrictive and discouraging to investors, Dubai has a <a href="https://news.bitcoin.com/dubai-launching-crypto-valley-tax-free-zone/" target="_blank" rel="noreferrer noopener">full exemption</a> on cryptocurrency taxes — similar to its <a href="https://tradingeconomics.com/united-arab-emirates/personal-income-tax-rate#:~:text=The%20Personal%20Income%20Tax%20Rate,source%3A%20Ministry%20of%20Finance" target="_blank" rel="noreferrer noopener">treatment</a> of personal income.&nbsp;



The emirate’s crypto regulator, the Virtual Assets Regulatory Authority, began handing out crypto exchange licenses in March, and two months later Dubai announced its <a href="https://dlp.dubai.gov.ae/Legislation%20Reference/2022/Law%20No.%20(4)%20of%202022%20Regulating%20Virtual%20Assets.html" target="_blank" rel="noreferrer noopener">first law</a> regulating digital assets.



“There’s a unified regulator workflow, which synthesizes the regulations and creates a beacon for the UAE to become a leader in the digital asset space,” Pranav Sharma, founding partner of Woodstock Fund, told Blockworks. “Taxation rules are also on the individual side.”



<h3 class="wp-block-heading">Global companies look to Dubai and Singapore</h3>



It’s not just India’s crypto exchanges making the move. A raft of global companies are now preparing to launch in Dubai, including Binance, FTX Europe, Crypto.com and Bybit — even though Dubai-based crypto exchanges can only offer a limited number of products and services to pre-qualified investors and professional finance service providers throughout the first phase of its “test, adapt, and scale” framework.



“Dubai is set to become the largest blockchain hub globally,” Domenik Maier, CEO of Dubai-based crypto market maker iBLOXX, told Blockworks. “A favorable tax regime, supportive legislation, access to capital and a wealth of talent makes Dubai the Web3 hotspot of the future.”



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Today, we approved the virtual assets law and established the Dubai Virtual Assets Regulatory Authority. A step that establishes the UAE’s position in this sector. The Authority will cooperate with all related entities to ensure maximum transparency and security for investors. <a href="https://t.co/LuNtuIW8FM">pic.twitter.com/LuNtuIW8FM</a>&mdash; HH Sheikh Mohammed (@HHShkMohd) <a href="https://twitter.com/HHShkMohd/status/1501566703322513408?ref_src=twsrc%5Etfw">March 9, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Singapore’s laws, too, are permissive for cryptocurrencies, where the purchase of digital assets isn’t considered taxable, and so capital gains <a href="https://cointelegraph.com/news/why-singapore-is-one-of-the-most-crypto-friendly-countries" target="_blank" rel="noreferrer noopener">aren’t taxable.</a>



Eric Barbier, founder and CEO of TripleA a company that allows businesses to pay and get paid in crypto says Singapore is “an efficient place to run a global business from.”



“I have been building companies in Singapore since the early 2000s because of its strong [intellectual property] laws, pro-business environment and international connectivity,” Barbier told Blockworks.&nbsp;



TripleA recently became one of the first crypto companies to be licensed by Singapore’s Central Bank, a process that took 18 months. Barbier believes that his company was able to receive regulatory approval as it ran by a business-to-business model, which made it “easier to enforce stringent regulatory and compliance standards.”&nbsp;



“Conducting a comprehensive verification process on a business is much easier than on a consumer or on an individual,” Barbier said.



Despite being headquartered in Singapore, Barbier says he has not completely ruled out the possibility of moving to Dubai.



“We are definitely not closing the doors to this possibility. At the moment, though, we are running a global business from Singapore and Europe,” he said. “It is imperative to have in place proper regulatory frameworks and good systems, which will ensure that we are not used as a vehicle for money laundering or terrorism financing in any way.”



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India’s Tax Regime Prompts Crypto Companies To Leave

<div id="highlights-block_62b4597cb0d8f" class="highlights">
 <ul>
 <li>“Unlike KuCoin, Bybit responded to the OSC’s enforcement action,” the OSC said</li>
 <li>KuCoin is barred from operating in Ontario, while Bybit continues to work on registration</li>
 </ul>
 
</div>



The Ontario Securities Commission (OSC) has hit two foreign cryptocurrency exchanges with enforcement actions after finding they failed to comply with securities laws there. KuCoin has been banned from operating in the Ontario province, while Bybit agreed to pay a fine as it works with the authority to register appropriately.



“Bybit and KuCoin both operate unregistered cryptoasset trading platforms and allowed Ontario investors to trade securities without a prospectus or any exemption from the prospectus requirements,” the regulator said in a <a href="https://www.osc.ca/en/news-events/news/osc-holds-global-crypto-asset-trading-platforms-accountable" target="_blank" rel="noreferrer noopener">statement</a> on Wednesday.



KuCoin, based in Seychelles, has been ordered to pay an administrative penalty of about C$2.1 million ($1.6 million), including investigative charges. Meanwhile, Singapore-based Bybit has reached a settlement with the regulator for about $2.5 million.



“Foreign cryptoasset trading platforms that want to operate in Ontario must play by the rules or face enforcement action,” Jeff Kehoe, OSC’s enforcement director, said.&nbsp;



Bybit has agreed to continue working with the OSC to register its platform. In the event that registration talks fail, the exchange will close its operations with Ontario, the regulator said.&nbsp;



“Unlike KuCoin, Bybit responded to the OSC’s enforcement action, maintained an open dialogue, provided requested information, and committed to engaging in registration discussions,” the regulator said.



Existing Bybit retail customers in Ontario will be asked to close their positions in some restricted products involving leverage, margin or the extension of credit. The exchange <a href="https://cms.blockworks.co/bybit-to-slash-staff-citing-turbulent-markets/" target="_blank" rel="noreferrer noopener">told Blockworks</a> this week it’s looking to cut employee headcount by removing overlapping functions. 



The penalties come a little more than a year after the Canadian regulator warned exchanges operating in Ontario to contact the OSC by April 19, 2021 for registration or face enforcement action.



“Despite this warning, Bybit and KuCoin did not contact the OSC by the deadline and continued operations in Ontario,” the regulator said.



Authorities have been keeping a closing eye on cryptocurrency products as interest grows in the relatively nascent investment space. Earlier this year, crypto lender BlockFi agreed to pay <a href="https://cms.blockworks.co/crypto-lender-blockfi-to-pay-100m-in-fines-to-us-regulators/" target="_blank" rel="noreferrer noopener">$100 million in penalties</a> to the Securities and Exchange Commission over allegations it illegally offered a high-interest yield product. 



The rulings could lead to hesitation among North American investors to invest in cryptoassets as a result of the jurisdiction&#8217;s harsh regulatory framework, according to Sheraz Ahmed, managing partner at STORM Partners.&nbsp;



He thinks the exchanges themselves won’t be too concerned about financial penalties, as they have been operating successfully for years. “Fines are always preferable to complete bans, and sometimes it is better to ask for forgiveness than permission,” he said.



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Canadian Regulator Fines Bybit, KuCoin For Securities Law Violations

<div id="highlights-block_62b07e92f078a" class="highlights">
 <ul>
 <li>“We are exploring a way to remove overlapping functions and build smaller but more agile teams,” a Bybit spokesperson told Blockworks</li>
 <li>A challenging and bearish market backdrop has forced the need to cut costs, they said</li>
 </ul>
 
</div>



In the face of recent market <a href="https://cms.blockworks.co/crashing-prices-expose-bitcoin-mining-industrys-addiction-to-leverage/" target="_blank" rel="noreferrer noopener">carnage</a>, Bybit has become the latest cryptocurrency exchange set to slash its employee headcount.



Persistently high inflation, a drop in consumer spending and the arrival of the bear market struck its business — and that’s resulted in a need to cut costs, a spokesperson for Bybit told Blockworks.



“We are exploring a way to remove overlapping functions and build smaller but more agile teams to improve our efficiency,” the spokesperson said.



It isn’t clear how many employees will be affected by the review.



Bybit’s spokesperson pointed to companies around the world being affected by a bearish environment and that it isn’t an outlier.



Coinbase said it will <a href="https://cms.blockworks.co/coinbase-cut-workforce-ceo-wary-of-potential-recession/" target="_blank" rel="noreferrer noopener">axe 18%</a> of its workforce, <a href="https://cms.blockworks.co/crypto-com-cutting-5-of-workforce-amid-digital-asset-downturn/" target="_blank" rel="noreferrer noopener">Crypto.com will cut 5%</a> while <a href="https://cms.blockworks.co/gemini-joins-growing-list-of-crypto-exchanges-cutting-staff-amid-downturn/" target="_blank" rel="noreferrer noopener">Gemini will cut 10%</a>. Companies in the industry have cited worsening market conditions and signaled an extended downturn — also known as a crypto winter.



<blockquote class="wp-block-quote">“Bybit is no exception apart from the fact that we have taken extreme steps to maintain our workforce for as long as possible during this crisis,” the spokesperson said.</blockquote>



Affected employees will receive a severance package and access to Bybit’s employee career support while making the transition to another job.



Dubai-based Bybit says it has more than 5 million users and a presence in 160 countries. The platform’s trading volume stands at $12 billion over the past 24 hours, according to data from <a href="https://nomics.com/exchanges/bybit" target="_blank" rel="noreferrer noopener">Nomics</a>.



“We are committed to continuously investing in strategic [Web3] projects and acquisitions, as well as sponsoring nonprofit organizations as we streamline our expansion plans based on our business priorities,” Bybit’s spokesperson added.



Correction: 11:30 am ET, June 20, 2022: Bybit is based in Dubai, not Singapore.



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Bybit Takes ‘Extreme Steps,’ Slashing Staff Amid Turbulent Markets

David Canellis

<div id="highlights-block_629926fb89b89" class="highlights">
 <ul>
 <li>Singaporean exchange Crypto.com has furthered its commitment to servicing Dubai’s burgeoning digital asset ecosystem</li>
 <li>Unlike Binance and Bybit, the firm won’t be moving its headquarters to the emirate</li>
 </ul>
 
</div>



Crypto.com has secured critical government approval to expand into Dubai, joining a string of top crypto exchanges given the greenlight to launch localized platforms in the region.



The Singapore-headquartered exchange first received provisional approval of its Virtual Asset MVP License from the Dubai Virtual Assets Regulatory Authority (VARA).&nbsp;



The government <a href="https://cms.blockworks.co/dubai-is-the-latest-government-to-roll-out-crypto-law-set-up-regulator/" target="_blank" rel="noreferrer noopener">launched</a> VARA — which oversees crypto trades and new product issuances — in March.



Crypto.com shared plans to set up a regional outpost in Dubai just three weeks after VARA’s inception. The firm plans to eventually provide a full suite of crypto exchange products and services, including offerings geared toward institutional investors, the firm told Blockworks.&nbsp;



In February, Dubai issued its first law specifically regulating digital assets. It prohibits anyone in Dubai from engaging in digital asset dealings without VARA’s prior authorization – including running crypto exchanges and overseeing custodial solutions.&nbsp;



The law also requires crypto companies looking to do business in the region to incorporate in Dubai, which explains Crypto.com’s <a href="https://www.reuters.com/business/finance/uae-crypto-push-sees-bybit-cryptocom-announce-dubai-offices-2022-03-28/" target="_blank" rel="noreferrer noopener">recent move</a> to open a regional office.&nbsp;



All approved crypto operators must operate within Dubai’s strict market model of testing, adapting then scaling. Initially, only limited exchange products and services can be rendered to pre-qualified investors and professional finance service providers. VARA then monitors the markets before deciding whether to open them to retail investors.&nbsp;



So far, no regulated crypto exchange offers crypto-to-dirham trading pairs in the UAE, with Kraken <a href="https://www.cnbc.com/2022/04/25/crypto-exchange-kraken-to-launch-in-uae-after-full-regulatory-approval.html" target="_blank" rel="noreferrer noopener">pegged</a> to be the first to do so sometime in the near future. Crypto.com declined to comment on its initial crypto offerings.&nbsp;



Indeed, Crypto.com&#8217;s operating license is conditional — until it meets certain mandated requirements. VARA gave the company a conditional go-ahead based on documents outlining Crypto.com’s assurance of compliance checks, pending further due diligence.



“We are excited to provide more of our products and services in a market of great importance to our business, and one that is equally committed to regulation and compliance,” Crypto.com co-founder and CEO Kris Marszalek said in a statement.&nbsp;



Helal Saeed Almarri, director general of the Dubai World Trade Centre Authority (DWTCA), which oversees VARA, called Crypto.com “one of the anchors partnering with VARA in the development of a global, future-focused regulatory framework.”



Last December, DWTCA established a crypto hub in the Dubai World Trade Centre – a government-run exhibition and events facility – which exchange Binance quickly joined. The idea is to give crypto companies a controlled environment in which to set up.



Multiple major crypto players have now secured approval to provide services in the United Arab Emirates (UAE). FTX Europe and Binance <a href="https://cms.blockworks.co/binance-granted-license-to-operate-in-dubai/" target="_blank" rel="noreferrer noopener">both</a> <a href="https://cms.blockworks.co/ftx-granted-crypto-license-with-dubai-hq-in-sights/" target="_blank" rel="noreferrer noopener">acquired</a> VARA’s Dubai-focused license in March – the latter pledged to move its headquarters to the region shortly after.&nbsp;



Singaporean crypto derivatives platform Bybit – which is joining Binance in relocating its headquarters to Dubai – also gained VARA approval in April. Crypto hedge fund firm Three Arrows Capital is likewise <a href="https://cms.blockworks.co/singapore-central-bank-ready-to-try-defi-after-crypto-giants-leave-for-dubai/" target="_blank" rel="noreferrer noopener">making the switch</a> from Singapore to Dubai.



San Francisco-based exchange Kraken, on the other hand, <a href="https://cms.blockworks.co/kraken-receives-abu-dhabis-first-virtual-asset-exchange-license/" target="_blank" rel="noreferrer noopener">opted for</a> neighboring Abu Dhabi, where it received the emirate’s first virtual asset exchange license.&nbsp;



In any case, Crypto.com formally joining the mix (albeit without relocating its headquarters) proves the UAE is well on its way to becoming a global hub for digital assets – although one that’s very closely regulated.



Crypto.com, founded in 2016, has more than 50 million users worldwide.



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Crypto.com Secures Provisional Approval To Open Crypto Exchange in Dubai

Jacquelyn Melinek

<div id="highlights-block_6222590637379" class="highlights">
 <ul>
 <li>The total money invested this week came from over 20 deals and funds, PitchBook data showed</li>
 <li>Prominent venture capital firm a16z invested $70 million into DeFi staking platform Lido on Thursday</li>
 </ul>
 
</div>



March started off strong as crypto companies and funds alike brought in another substantial week of capital, nearing a total of $1.34 billion. The total money invested this week came from over 20 deals and funds, PitchBook data showed.



The week’s biggest raise came from Electric Capital. The firm <a href="https://cms.blockworks.co/electric-capital-raises-1-billion-to-launch-crypto-venture-token-funds/" target="_blank" rel="noreferrer noopener">raised $1 billion</a> to launch two funds: a $400 million venture fund and a $600 million token fund. The capital raise brings the firm into the big leagues alongside major funds such as Andreessen Horowitz (a16z), Paradigm and 10T Holdings.



On Thursday, the prominent venture capital firm, a16z, invested $70 million into DeFi staking platform Lido. The decentralized platform offers Ethereum staking and other proof-of-stake assets to users through a decentralized autonomous organization (DAO) governance structure.



The fresh funds from a16z will be used to build out its staking solution and prepare for upgrades surrounding the Ethereum transition from <a href="https://cms.blockworks.co/proof-of-work-vs-proof-of-stake-whats-the-difference/" target="_blank" rel="noreferrer noopener">proof-of-work to proof-of-stake</a>, Jacob Blish, Lido’s head of business development and partnerships, said to Blockworks.



<blockquote class="wp-block-quote">“The roadmap for 2022 is prioritizing the Ethereum network upgrade, researching and building out layer-2 solutions, and expanding to a number of new protocols,” Blish said.</blockquote>



Since 2022 started, Lido has launched liquid staking for Kusama and Polygon and plans to add Polkadot, Avalanche and Cosmos in the second half of the year, Blish noted.



In other news, a seed-stage venture capital firm, Arcanum Capital, launched its first fund of $12 million, Wednesday, to focus on blockchain technology companies in emerging markets — mainly in India.&nbsp;



“We launched the fund because we wanted a vehicle to raise significant institutional capital into, to then deploy into India and make a big impact,” James McDowall, founding partner at Arcanum Capital, said to Blockworks.



The company’s fund includes prominent investors like Polygon Co-founder Sandeep Nailwal, venture capitalist Tim Draper, and Bybit’s venture capital arm, Mirana Ventures, among others. To date, Arcanum has invested about $4 million in over 20 startups.



“We are seeing blockchain technology disrupt almost every industry,” McDowall said.



<blockquote class="wp-block-quote">“DeFi alone has trillions of dollars of market share to go at. Add in [non-fungible tokens], gaming, and decentralized applications, and it is clear that blockchain is a gargantuan technology trend in its relative infancy.”</blockquote>



Other notable capital raises this week include:&nbsp;



<ul><li>South African crypto exchange VALR’s <a href="https://cms.blockworks.co/in-one-of-africas-largest-crypto-raises-south-african-exchange-takes-in-50m/" target="_blank" rel="noreferrer noopener">$50 million</a> round</li><li>Thetanuts Finance closed an <a href="https://cms.blockworks.co/thetanuts-finance-get-18m-in-seed-funding-to-flest-out-defi-platform/" target="_blank" rel="noreferrer noopener">$18 million</a> round to democratize DeFi-structured products</li><li>Pantera Capital led a <a href="https://cms.blockworks.co/subspace-labs-raises-33m-led-by-pantera-capital-to-further-web3-efforts/" target="_blank" rel="noreferrer noopener">$33 million round</a> for Subspace Labs to further its Web3 efforts</li><li>Multicoin Capital and Jump Crypto co-led a <a href="https://multicoin.capital/2022/03/02/dialect-the-smart-messaging-standard/" target="_blank" rel="noreferrer noopener">$4.1 million</a> seed investment in smart messaging protocol Dialect&nbsp;</li><li>Ignite Tournaments closed a $10 million financing round to build a play-to-earn esports tournament and streaming platform</li></ul>



Check back next week for more funding news.



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