The crypto exchanges have been going through deep investigations and sometimes they are even fined for their " suspicious " actions. Even though it is too hard to track and prove as a piece of evidence, the blockchain literacy of institutions has been rising.
Today, the founder of ACE Exchange, a Taiwanese crypto exchange, got arrested over the claims of fraud actions in the operations. When the details of the case were revealed, there were different types of claims.
Fiirst of all, the founder asserts that the fraud happened not on the side of crypto exchange operations, rather, it took place in token project part of the exchange.
According to Cointelegraph news, the issue with tokens are not new and the reality might be a bit different:
“Some currencies listed in 2019 were involved in illegal activities,” said Wang. “Basically, ACE is cooperating with the investigation as a witness. Some media reported that our employees were involved in the case, which is not true.”
Clean Crypto Movement
The recent news from the centralized exchanges has always been formed in a similar theme: Being regulation friendly ✅
Binance accepted to pay for the charging fee which was beyond expectations. Afterwards, the exchange announced that there will be some potential delistings on soon:
" No longer meeting the criteria "
This sounds hilarious as Monero and Zcash are some of the most popular privacy coins with amazing technological advancement behind them. Their Zero knowledge mechanism makes it almost impossible to track and figure out the sources of transactions on the chain. That the regulators do not want privacy coins encourages centralized exchanges to be on the side of removing them rather than having more issues with the SEC or any other forms of it in different countries.
In the same vein, the founders of centralized exchanges are under a strict investigation as to whether they or their employees had been in a fraud action.
Soon the waves that started with the ACE exchange will be followed in several countries in the case that the SEC approves Bitcoin ETFs. If the debut of spot traded crypto exchanges gets permission, then the service providers are obliged to follow similar rules in the real world.
Bitcoin ETFs Open A New Era
The centralized exchanges may start to lose their importance because, with the approval of Bitcoin ETFs, the investors will be following the data from the Bitcoin ETF providers as the liquidity and volume will be more on this side.
On the other hand, the spot traded are at the heart of crypto trades. As future contracts only matter in digits, the reality lies in the spot buyers and sellers trades. At that point, the policy makers will prefer track the spot traders and Bitcoin holdings of people for taxation of gains from new type of global investment sources.
Basically, it is time for Bitcoin to go beyond being an " internet money "
That internet money becomes a new type of investment with institutional solutions to make it easier for people to buy sell and keep securely. Even though it used to be almost impossible to expect everyone have their MetaMask or cold wallets to get involved in crypto, now it is a thing that is in the corner. Technology will always be the trend; we, people, will chase it 😉
What do you think about the investigations on the centralized exchanges?
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Posted Using InLeo Alpha