Coinbase Custody partner ETC paid $80k fine for putting customer assets at risk
Cryptocurrency exchange and brokerage giant Coinbase onboarded 10 customers for its new institutional-grade custody service. However, the firm’s partner in the venture, Electronic Transaction Clearing (ETC), a broker-dealer already operating as an institutional custodian, was recently the subject of an SEC enforcement action regarding failing to safeguard customer funds.
In March of 2018, the SEC charged ETC with “repeatedly putting customers assets at risk.”
The SEC charged ETC with having “illegally placed more than $25 million of customers’ securities at risk in order to fund its own operations.”
The actions violated a provision in the Customer Protection Rule that requires custodians to maintain physical possession or control of customer assets. ETC ultimately agreed to pay an $80,000 penalty without admitting or denying the SEC’s allegations.
Binance announces secure asset fund for users (SAFU) in syscoin incident aftermath
Leading cryptocurrency exchange Binance recently announced the creation of a user safety fund called “Secure Asset Fund For Users (SAFU)” in the aftermath of trading irregularities that saw at least one user purchase one Syscoin (SYS), worth about $0.26, for the equivalent of $625,000 in Bitcoin.
Binance’s announcement details that it’ll rollback all irregular trades, and compensate those negatively affected by offering them zero-fee trading between July 5 and 14. All other Binance users will receive a 70% rebate paid in BNB on trading fees paid during this period.
Bermuda amends banking act to favor blockchain startups
The Government of Bermuda is amending the Banking Act to create a new class of bank specifically to cater to local fintech and blockchain companies.
Bermuda premier and minister of finance David Burt said:
“The fintech industry’s success globally depends on the ability of the businesses operating in this space to enjoy the necessary banking services.”
Binance exchange halts deposits/withdrawals amid suspected hack, claims maintenance
World largest cryptocurrency exchange Binance has halted deposits and withdrawals claiming system maintenance and upgrade. Support team says all funds are safe, however some people raised concerns as 7000 BTC has been reported to be withdrawn from Binance’s cold storage wallet just recently.
Bitcoin price went down $150 on the news, reflecting market uncertainty.
Kraken Daily Market Report for 03.07.2018
KRAKEN DIGITAL ASSET EXCHANGE
$94.6M traded across all markets today
Crypto, EUR, USD, JPY, CAD, GBP