Binance, the world’s largest cryptocurrency exchange by trading volume, has been facing regulatory challenges in several countries, including the UK, Japan, Canada, and the US. Some analysts have speculated that BlackRock, the world’s largest asset manager, may have played a role in the crackdown on Binance, as part of its strategy to dominate the crypto market. Travis Kling made a speculation about Blackrock wanting dominance in crypto space back in June on X which might be what’s delaying spot ETFs approval by the SEC.
BlackRock is no stranger to the crypto space. The firm has been investing in blockchain technology and crypto-related companies for years and has recently launched two funds that allow its clients to gain exposure to Bitcoin futures. Moreover, BlackRock’s CEO Larry Fink has expressed his interest and optimism about the potential of digital assets, saying that they could become a “great asset class” and that he is “fascinated” by them.
However, following the ongoing Binance and US SEC travails, the founder and CEO has forfeited $175 million bond to be released from custody after pleading guilty to charges brought by the SEC before DOJ against Binance exchange and its CEO. Consequently, as part of the bargain CZ has to give room for Richard Teng to assume operation as the new CEO of the global exchange network of Binance.
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However, BlackRock may also have a darker motive for getting involved in crypto. Some observers have suggested that BlackRock may be using its influence and connections to pressure regulators to crack down on Binance, in order to eliminate a major competitor and pave the way for its own crypto products and services. According to this theory, BlackRock may be acting as a proxy for the US government, which sees Binance as a threat to its financial sovereignty and national security.
While this theory may sound plausible, there is little evidence to support it. First of all, BlackRock is not the only asset manager that is interested in crypto. Other giants like Fidelity, Vanguard, and State Street have also been exploring the crypto space and launching their own initiatives. It is unlikely that BlackRock would have the power or the incentive to sabotage its peers and risk damaging its reputation and credibility.
Secondly, Binance’s regulatory woes are not unique to itself. Many other crypto exchanges and platforms have also faced scrutiny and challenges from regulators around the world, as the crypto industry is still largely unregulated and poses various risks and challenges to consumers, investors, and authorities. Binance may have attracted more attention due to its size and global reach, but it is not the only one that has to comply with the rules and standards of different jurisdictions.
Thirdly, Binance has not been shut down or banned by any regulator. While some countries have issued warnings or restrictions against Binance, the exchange has not ceased its operations or services in any market. Binance has also been cooperating with regulators and taking steps to improve its compliance and governance, such as hiring former regulators, implementing KYC and AML measures, and applying for licenses where needed.
Therefore, it is unlikely that BlackRock has anything to do with Binance’s regulatory challenges. Rather than seeing them as a conspiracy or a plot, it may be more reasonable to see them as a natural and inevitable consequence of the rapid growth and innovation of the crypto industry, which requires more clarity and consistency from regulators and more responsibility and transparency from participants.
Bittrex Global to shut down Operations from December
Meanwhile, in n a surprising move, Bittrex Global, one of the largest and most popular cryptocurrency exchanges in the world, announced that it will cease its operations by the end of this year. The decision comes amid increasing regulatory pressure and legal challenges from various jurisdictions, as well as declining user base and trading volume.
Bittrex Global was launched in 2019 as a spin-off of the US-based Bittrex exchange, with the aim of providing a more global and compliant platform for crypto traders and investors. The exchange offered a wide range of digital assets, including Bitcoin, Ethereum, Litecoin, and many other altcoins, as well as fiat currency pairs and derivatives. Bittrex Global also boasted a robust security system and a user-friendly interface.
However, the exchange faced several difficulties in its short lifespan, such as being banned in some countries, losing its banking partner, facing lawsuits from disgruntled customers, and struggling to compete with other platforms that offered lower fees, higher liquidity, and more features. According to its website, Bittrex Global’s daily trading volume has dropped to less than $10 million, a far cry from its peak of over $300 million in 2020.
In a blog post published on November 21, Bittrex Global stated that it will stop accepting new registrations and deposits immediately, and that it will close all trading and withdrawal services by December 31, 2023. The exchange urged its users to withdraw their funds as soon as possible and warned that any remaining balances will be forfeited after the deadline. The exchange also thanked its customers for their support and loyalty and expressed its regret for the inconvenience caused by the closure.
The announcement has shocked and saddened many crypto enthusiasts, who have expressed their disappointment and frustration on social media. Some users have also raised concerns about the security and accessibility of their funds and have questioned the motives and legitimacy of the exchange. Others have speculated that the closure may be related to the recent crackdown on crypto exchanges by the US Securities and Exchange Commission (SEC), which has accused several platforms of operating illegally and violating securities laws.
The closure of Bittrex Global is another blow to the crypto industry, which has been facing increasing scrutiny and regulation from governments and authorities around the world. While some argue that this is necessary to protect consumers and prevent fraud and money laundering, others fear that this will stifle innovation and limit the potential of blockchain technology. The future of crypto exchanges remains uncertain, as they have to balance between compliance and competitiveness in a fast-changing and volatile market.