Homeland Security Warns Bots Are Exploiting Decentralized Crypto Exchanges

The U.S. Department of Homeland Security has warned that arbitrage bots are exploiting “inefficiencies” in decentralized exchanges (DEX). Citing recent research from Cornell Tech, the department said on Monday that such cryptocurrency platforms are being used by “predatory users” to profit from everyday trades, “siphoning millions or possibly billions of dollars a year in cryptocurrency.” In some cases, high fees are paid to prioritize certain transactions, posing a security threat to entire blockchains, the agency said. According to the article: “Like high-frequency traders on Wall Street, these bots exploit inefficiencies in…

Crypto Exchanges Huobi and Fisco Investigated by Japan Watchdog: Report

Cryptocurrency exchanges Huobi Japan and Fisco are said to have been investigated by the country’s financial watchdog last week. A Reuters report on Tuesday, citing “two sources familiar with the matter” said that the Financial Services Agency (FSA) visited the two exchanges to assess their customer protection and anti-money laundering (AML) provisions. Japanese exchanges run by the two firms have recently seen big changes at the management level, and the FSA investigation was aimed to ensure whether adequate compliance measures are in place under the new regimes, according to the sources.…

Chainalysis Urges FATF to Rethink Data Demands on Crypto Exchanges

Blockchain analysis firm Chainalysis has hit back at recommendations from intergovernmental financial anti-crime organization the Financial Action Task Force (FATF) in a direct letter dated April 8. The letter, which Chainalysis sent to the FATF, criticizes the organization’s demands to make cryptocurrency exchanges identify and keep records of senders and recipients involved in cryptocurrency transactions. These demands had surfaced at the end of February, with the FATF subsequently inviting public feedback on its literature. According to Chainalysis, such requests would place exchanges, which the FATF calls “Virtual Asset Service Providers…

Fake Volume on Crypto Exchanges Isn’t the Half of It

Daniel Cawrey is CEO of Pactum Capital, a cryptocurrency investment firm focused on market making and liquidity. Formerly a CoinDesk Contributing Editor, he is author of the upcoming “Mastering Blockchain” book to be published by O’Reilly Media. Recently, a report was produced by Bitwise Asset Management showing the existence of faked volumes in the bitcoin market – 95% of total volume according to its research. It’s hard to disagree with many of the facts in the report. Yet there are some items left out in this presentation to the SEC.…

Lightning Offers Growth Path for Emerging-Market Crypto Exchanges

While leading cryptocurrency exchanges like Coinbase and Binance feverishly add new tokens, smaller exchanges serving emerging markets are pivoting toward retail applications of the lightning network’s bitcoin scaling solution. The latest is Singapore-based exchange Zebpay, which now offers lightning wallet options for users who want to send lightning-enabled payments to external wallets. Bitcoin users can cash out their crypto directly to make a nearly instant payment to any lightning-friendly wallet. For now, Zebpay will enable this feature by handling all the channels to recipients on the back-end. “Next comes allowing…

Canada Proposes Regulatory Framework for Cryptocurrency Exchanges

Canadian financial regulatory authorities are considering putting in place rules for cryptocurrency exchanges in the country. The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) published a consultation paper on Thursday, seeking input from the fintech community on how regulatory requirements can be developed for cryptocurrency platforms. “The emergence of digital and crypto assets continues to be a growing area of interest,” said Andrew J. Kriegler, president and CEO of the IIROC in a separate statement on Thursday, adding: “We must adapt to innovation, and provide…

Pro-Bitcoin Square Headlines London Stock Exchange’s Blockchain ETF

Invesco, an American firm, and Elwood, a British digital asset investment company, announced the launch of a blockchain ETF on the London Stock Exchange today. The exchange-traded fund features 48 companies with ties to the blockchain industry, including some – like Square – that have dabbled directly in the bitcoin or crypto space. Invesco & Elwood Team up for UK Blockchain ETF The London Stock Exchange just listed a blockchain ETF, providing investors with broad exposure to companies that are active in the crypto space, including Square and Overstock. |…

Revolut App Now Lets Users Auto-Trigger Cash and Crypto Exchanges

Mobile finance app Revolut has launched a new feature allowing users to “auto-exchange” cash and cryptocurrencies. The firm announced Tuesday that its over 4 million users can now automatically exchange, say, U.S. dollar (USD) to bitcoin (BTC) or ether (ETH) to XRP, based on a pre-set target rate. Fiat-to-fiat exchanges are also possible. Once a target rate is set in the app – either above or below current rates – Revolut said the exchange will trigger once the target has been reached. It warns, though, that the achieved rate could be…

A Fight Is Brewing Among QuadrigaCX Crypto Exchange’s Creditors

Creditors of the failed cryptocurrency exchange QuadrigaCX are bracing for a fight – among themselves. Customers who had fiat currency balances at the exchange before it went offline and sought protection from creditors in a Canadian court last week are beginning to argue they should be paid back first from recovered assets. But they expect customers who stored crypto at QuadrigaCX to push back on such demands. And even some fiat holders say such prioritization would be unfair. “There seems to be a conflict going on between creditors themselves,” Canadian resident and…

Crypto Startup Wants You to Trade on Exchanges Without Trusting Them

A new protocol aims to allow crypto users to maintain control of their private keys while trading on centralized exchanges. Arwen, a startup formerly known as Commonwealth Crypto, launched a testnet version of its namesake protocol Monday. CEO Sharon Goldberg described it as “a layer-two protocol specifically for trading.” In other words, trades will take place off-chain. As Goldberg explained: “You put a smart contract on a blockchain where it locks up coins and once it’s locked up, you can do all sorts of transactions … without posting those transactions…