Beaxy exchange shuts down after SEC lawsuit

Beaxy exchange shuts down after SEC lawsuit

Regulation Asia tracks and analyses financial regulation across Asia to keep readers informed on the changes and their impacts. However, it expressed regrets that the regulatory environment was just too uncertain to function. It added that the current situation arose despite their best efforts to operate. You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. Customers of the exchange will be able to withdraw their assets within 24 hours after all user orders are canceled and balances are verified and are encouraged to do so within 30 days, the SEC said.

In this capacity, he worked with teams from the Financial Crimes Enforcement Network (FinCEN), Office of Foreign Assets Control (OFAC), and other Treasury and interagency components on issues related to sanctions, the Bank Secrecy Act, cryptocurrency, and anti-money laundering strategies. Previously, Mr. Redbord served as a Senior Assistant United States Attorney for the District of Columbia, where he investigated and prosecuted cases related to cryptocurrency, terrorist financing, sanctions evasion, export control, child exploitation and human https://investmentsanalysis.info/ trafficking. He has received numerous awards from FinCEN, the FBI, and the United States Attorney’s Office, including the Attorney General’s Award for leading an interagency task force dedicated to prosecuting those who abuse and exploit children. Previously Bradley oversaw Strategy with SunGard Financial Systems (now FIS), heading up strategic, business planning and product development across Asia, Africa, Latin America and the Middle East. Prior to this, he was a management consultant focused on private equity and alternative assets.

Crypto Exchange Beaxy Shut Down After SEC Lawsuit

The penalty amounts reflect the cooperation the staff received from the settling parties during the investigation. Bradley is Co-Founder at Regulation Asia, the leading regulatory news intelligence service for the financial sector in APAC. Bradley advises governmental and start-up projects, including several regulated digital assets, climate markets and payments entities. The SEC said in its official statement that it has also charged the founder of the platform, Artak Hamazaspyan, and a company he controlled, Beaxy Digital, Ltd., with raising $8 million in an unregistered offering of the Beaxy token, denoted by BXY. “The Beaxy Platform also had the ability to trade crypto asset securities against its own customers, which gives it the means and the motive to put itself on the winning side of each trade, without regard to obligations that apply to registered broker-dealers,” the filing said.

Naturally, referral programs and options to customize the trading experience are also positive. The exchange was previously registered in Saint Kitts and Nevis, but it is now owned by Windy Inc. (a Delaware corporation) and Beaxy’s headquarters today are in Chicago, Illinois. “We strongly advise you to withdraw any remaining assets within 30 days to avoid unnecessary complications and delays,” the exchange told its users.

Beaxy Top Competitors And Email Format

The exchange supports 6 fiat pairs, a two-way fiat ramp, credit and debit card purchases, and spot cryptocurrency trading. Cryptocurrencies are reportedly secured by Curv institutional custody and fiat accounts are insured up to $250,000. Beaxy Exchange offers prebuilt technical analysis trading signals for cryptocurrencies listed on their platform. Their API features REST and WebSocket as well as FIX, view the documentation here. Launched on 10 Jun 2019, Beaxy Exchange is a centralized exchange, headquartered in The Board of Trade in Chicago, IL. The exchange claims to support 6 fiat pairs, a two-way fiat ramp, credit and debit card support, and spot cryptocurrency trading.

• But it was the first time the agency sued a crypto platform for simultaneously operating an unregistered exchange, brokerage and clearing business – a problem that SEC Chair Gary Gensler has repeatedly said is rampant in the sector and poses a conflict of interest.
• Throughout her career, Jane has worked closely with advisors and business stakeholders to ensure that clients can easily conduct business with the firm while maintaining compliance with all regulatory requirements.
• Jesse Hamilton is CoinDesk’s deputy managing editor for global policy and regulation.
• Beginning her career as a practicing lawyer in Malaysia, she later transitioned to the financial services industry where she assumed responsibility for overseeing regulatory compliance and risk management.

Throughout her career, Jane has worked closely with advisors and business stakeholders to ensure that clients can easily conduct business with the firm while maintaining compliance with all regulatory requirements. It further said it was forced to make the difficult decision to stop the operations because of the uncertain regulatory climate surrounding its business. If you’ve got thoughts or questions on what I should discuss next week or any other feedback you’d like to share, feel free to email me at or find me on Twitter @nikhileshde.

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The Securities and Exchange Commission today charged the crypto asset trading platform beaxy.com (the Beaxy Platform) and its executives for failing to register as a national securities exchange, broker, and clearing agency. The SEC also charged the founder of the platform, Artak Hamazaspyan, and a company he controlled, Beaxy Digital, Ltd., with raising $8 million in an unregistered offering of the Beaxy token (BXY) and alleged that Hamazaspyan misappropriated at least $900,000 for personal use, including gambling. Finally, the SEC charged market makers operating on the Beaxy Platform as unregistered dealers. Windy Inc. took over the platform in 2019 after the founder misappropriated money, according to the SEC, and managers Nicholas Murphy and Randolph Bay Abbott maintained Beaxy for trading crypto assets “that were offered and sold as securities,” the SEC said. So the agency is also accusing them of violating securities law by operating an unregistered exchange, broker and clearing agency, though the platform was described as defunct in another SEC case last year.

But a case filed by the Securities and Exchange Commission just a few days later against a much smaller player whose name also starts with a “B” could also have big ramifications for the digital-asset space.The SEC’s complaint against this other “B” — Beaxy.com — flew somewhat under the radar. But it was the first time the agency sued a crypto platform for simultaneously operating an unregistered exchange, brokerage and clearing business – a problem that SEC Chair Gary Gensler has repeatedly said is rampant in the sector and poses a conflict of interest. The U.S. Securities and Exchange Commission filed a lawsuit against crypto exchange Beaxy last week, alleging it offered an unregistered securities sale through a 2018 initial coin offering, and that it operated as an unregistered securities exchange, broker-dealer and clearing agency. Mr Ken Nagatsuka is the Executive Director and Head of Payments Department at the Monetary Authority of Singapore (MAS). The department is responsible for the authorisation, ongoing supervision and policy-making in relation to payment systems and payment service providers, such as e-money issuers, remittance providers and digital payment token (more commonly known as cryptocurrency) service providers under the Payments Services Act. Prior to this, Mr Nagatsuka has worked in the field of capital markets regulation for over 15 years, and was previously Head of the Capital Markets Policy Division responsible for policy formulation and reviewing legislation in relation to capital markets and market infrastructures.

Beaxy Trading View

In its lawsuit, filed Wednesday at the Northern District of Illinois, the securities regulator also accused the platform of failing to register as a broker and a clearing agency. Beaxy suspended services on its exchange and ceased operations “due to the uncertain regulatory environment surrounding our business,” the company said on its website—the SEC said in a statement Beaxy agreed to shut down the platform. Without admitting or denying the allegations in the complaint, Windy, Murphy, Abbott, Peterson, and the Braverock Entities have agreed to permanent injunctions prohibiting them from future violations of the securities laws alleged in the complaint and to pay civil penalties. Specifically, Windy, Abbott, and Murphy agreed to pay a total of $79,200 in civil penalties; Peterson agreed to pay a civil penalty of $6,600; and the Braverock Entities agreed to jointly and severally pay a penalty of $80,000. In addition, Windy agreed to pay $10,779 in disgorgement plus prejudgment interest, and the Braverock Entities agreed to jointly and severally pay $52,000 in disgorgement plus prejudgment interest.

This absolutely reads like a playbook for how the SEC could sue Coinbase, if that situation doesn’t resolve with a settlement or non-action. So far all Coinbase has said is that the notice lists “an undefined” number of its listed cryptocurrencies, and that its Earn, Prime and Wallet products potentially violate securities law. Beaxy, for its part, claimed an “uncertain regulatory environment” as the reason for its shutdown ahead of the lawsuit’s publication. The SEC is litigating its charges against Hamazaspyan for securities fraud and against Hamazaspyan and Beaxy Digital for the unregistered offering of BXY.

US SEC Forces Shut Down of Crypto Platform Beaxy

Blockchain’s capability goes beyond improving government services, says Bryan Daugherty in his latest Evening Standard piece, stressing the technology could also benefit businesses and everyday users. “Unfortunately, despite our best efforts, it has become clear that the regulatory environment is just too uncertain to continue operations,” Beaxy stated. Bradley is a senior Financial Regulation and Risk Management research fellow with The Guangzhou-Nottingham Advanced Institute of Finance and the Guangzhou University of Finance’s Institute of Financial Employment. Focused on the broader economic impact of financial regulation, he holds Master’s degrees in Finance, Quantitative Research and Law from New York University’s Stern School of Business, the Hong Kong University of Science and Technology, and the University of Melbourne. He is currently a doctoral candidate at the Swiss Business School in Zurich.