OKX to open hub in France

france flag on gray concrete building near road

According to Bloomberg, OKX has applied for regulatory approval in France and plans to build out its European hub in Paris. This makes it the latest overseas crypto firm to choose France as its base on the continent, following the likes of Circle, Crypto.com and Binance.

Why France, you may ask? Well, France is very welcoming of crypto firms, thanks to President Emmanuel Macron’s support for the sector. France has also introduced a registration process for crypto businesses that want to operate in the country. This requires them to meet certain standards of anti-money laundering and transparency, providing credibility for the sector.

OKX is not a small player in the crypto space. It is the fourth largest digital-asset exchange by trading volume, according to CryptoCompare. It offers a variety of products and services, such as spot trading, futures and options, lending and borrowing, staking and mining, and more.

OKX’s president, Hong Fang, said that having operations in France is crucial for engaging with European regulators and customers. He also expressed his confidence in OKX’s ability to provide a safe and reliable platform for crypto enthusiasts.

France’s Digital Minister, Jean-Noel Barrot, welcomed OKX’s decision. He said that it is testament to France’s positive policies on cryptoassets. He also said that France is committed to fostering innovation and competitiveness in the digital economy.

This news story is a great example of how OKX is constantly innovating and adapting to the changing regulatory landscape. It also shows how France is becoming a hub for crypto businesses in Europe, thanks to its supportive government and regulatory framework.

Vive la France!

BXB Capital to launch new fund in July

four assorted cryptocurrency coins — *Four of the (imaginary) Bitcoin needed to hit the 1,000 target*

BXB Capital are to launch a new fund in July, and it is a crypto hedge fund that is co-founded by J.J. Petersen and Alex Friedberg, who are also the co-founders of Binance Korea, the Korean arm of the world’s largest crypto exchange. BXB Capital is not your typical crypto fund. Unlike most funds that raise capital in fiat currencies and trade in various crypto assets, BXB Capital is raising capital exclusively in Bitcoin and will also only trade in Bitcoin and provide returns in Bitcoin.

This means that investors who participate in the fund will not have to worry about converting their fiat into crypto or vice versa, and they will also benefit from any appreciation of Bitcoin’s value over time.

The fund has a target of raising up to 1,000 BTC, which is equivalent to around $27 million at the current price. So far, the fund has secured around 400 BTC, or roughly $10 million, from investors who are high-profile crypto figures, according to Petersen and Friedberg. The fund will use various trading strategies to generate profits in Bitcoin, such as arbitrage, market making, and algorithmic trading.

The fund’s co-founders have a track record of successful crypto ventures. Petersen and Friedberg started trading the ‘kimchi premium’, a phenomenon where the price of Bitcoin in South Korea is higher than other markets, back in 2017 and 2018. They also launched the first stablecoin backed by the Korean won, called KRWb, in 2019. In 2020, they co-founded Binance Korea, which later shut down due to low trading volume but returned to the market earlier this year after acquiring a majority stake in GOPAX, a local crypto exchange.

Petersen and Friedberg believe that Bitcoin is the ultimate store of value and that more investors are shifting their mindset from accumulating more fiat to accumulating more Bitcoin. They see their fund as a unique opportunity for investors who want to earn more Bitcoin without exposing themselves to risky lending or yielding products.

If you want to learn more about BXB Capital and its bitcoin-focused fund, you can visit their website at bxb.capital or follow them on Twitter at @BXBCapital.

Merger of WonderFi, Coinsquare and CoinSmart: Rare Occurence

A rare three-way merger of three crypto exchanges in Canada is all set to take place. The merger of WonderFi, Coinsquare and CoinSmart means a combination which creates one large crypto exchange, forming a company managing over $600 million in assets. The new enlarged business will have a user base of 1.65 million customers.

The new, and as yet unnamed, company will be in a stronger position to take on the big boys at the best crypto exchanges. Or so the thinking goes. The intention is that customers from each of the current crypto exchanges will trade through a single platform.

The composition of the equity in the merged business is proposed as 43% in favour of Coinsquare, 38% for WonderFi, and the remaining 19% for CoinSmart.

Merger of WonderFi and co: how unusual is three-companies merging?

A three-way company merger is certainly unusual. Indeed, a quick and dirty search in Google finds no examples of three companies merging into one. Either it has never happened (unlikely, of course) or I am not very good at using Google.

It is likely further mergers will happen in the near future. Crypto has had a bumpy ride since the pandemic, making sector consolidation a more realistic prospect. It is not certain that mergers will involve three companies though, considering it is so rare.

What does merger of WonderFi, Coinsquare and CoinSmart merger mean for customers?

Between them the three businesses of WonderFi, Coinsquare and CoinSmart generated around $37 million in revenue in 2022, so we’re not talking about industry giants here. Instead, the new business is likely to find cost synergies. This allows it to become operationally more efficient. In a normal business, these savings are ploughed back into marketing. This in turn generates more customers, and so on.

As for day-to-day operations, the executives at each of WonderFi, Coinsquare and CoinSmart have stressed that it is ‘business as usual’ for all existing customers.

Business performance of WonderFi, Coinsquare and CoinSmart

WonderFi purchased Bitbuy and Coinberry in 2022. Registered users on the Bitbuy and Coinberry platforms surpassed 400,000 and 200,000 users, respectively, as of December 31, 2022
The Bitbuy and Coinberry brands generated $2.6 million and $9.1 million respectively for the three and fifteen months ended December 31, 2022
CoinSmart spent much of Q1 2023 arguing with CoinSquare about a merger of the two businesses. This has clearly been resolved now, with WonderFi also joining the partnership
CoinSmart financial performance dipped in recent times, with Q3 2023 revenue of $2.35m being a 25% YOY decrease

Binance coin: price spanked, investors worry

Yes, that’s right. The Binance coin price has taken a hit today. You say hit, I say spanked.

The Binance coin fell as a result of civil enforcement action that Binance is facing from the CFTC (Commodity Futures Trading Commission) in the USA. Investors and traders are fretting about the likely impact of the CFTC action, which caused the Binance coin to fall from around $329 on March 27th, 2023, to a low of $307 within 24 hours. The drop of almost 7% might well worry investors.

Binance, a Chinese-owned cryptocurrency exchange, is accused of allowing their US customers to illegally carry out derivatives transactions, a charge that Binance denies. If found guilty, Binance could face sanctions and/or heavy fines.

The CFTC’s enforcement action against Binance comes within a week of the Chinese-owned social media phenomenon Tik-Tok facing a congressional hearing in the USA amid accusations of potentially spying on behalf of the Chinese government.

Changpeng Zhao, a Chinese-Canadian entrepreneur, founded Binance in China in 2017. Initially headquartered in Shanghai, Binance relocated to Malta after the Chinese government announced a crackdown on cryptocurrency trading in September 2017. Despite its move to Malta, Binance still maintains strong ties to China.

Binance launched a new platform called “Binance China” in 2019 that provides cryptocurrency trading services to users in China. However, Binance China is operated by a separate entity, called “Binance Asia Services,” based in Taiwan.

Binance is known to engage with the Chinese market through various initiatives, such as partnering with the Chinese government-affiliated China Blockchain Application Center and conducting blockchain research and development in China. Binance’s CEO, Changpeng Zhao, regularly speaks at blockchain and cryptocurrency events in China.

It’s worth noting that while Binance has a strong presence in China, the Chinese government has been cracking down on cryptocurrency-related activities in recent years, including banning cryptocurrency exchanges and mining operations. As a result, Binance has continued to expand its operations globally, with offices in various countries, including the United States, Singapore, and Japan.

Important note: Any comments reported here do not constitute financial advice and are opinions only. Always seek independent financial advice before investing, and never trade or invest with money you cannot afford to lose.

Bitcoin and Ethereum: Security or Commodity?

brass colored metal padlock with chain — A security lock, not a security you can trade…

Some interesting chit chat is going on in the USA at the moment as the Commodity Futures Trading Commission (CFTC) on March 27^th once again referred to Ethereum as a commodity. The backdrop to this is the CFTC lawsuit against Binance for violations of the Commodities Exchange Act and CFTC regulations.

The classification of Ethereum, Bitcoin and other cryptocurrencies as a security or commodity is an important one as it impacts on which body regulates crypto.

To start, it’s important to understand what a commodity and a security are.

A commodity is a raw material or primary agricultural product that can be bought and sold, such as gold or oil. This is long-term good for crypto, potentially.
A security, on the other hand, is a financial instrument that represents ownership in a company or a promise of repayment with interest. Examples of securities include stocks and bonds. This is long-term bad for crypto, potentially.

Now, when it comes to Ethereum and Bitcoin, there are arguments on both sides of the debate. Some people argue that they are commodities because they are used as a medium of exchange and have a finite supply. Like gold or oil, their value is determined by supply and demand in the marketplace.

However, others argue that they are securities because they were initially sold through initial coin offerings (ICOs) and their value is tied to the performance of the underlying blockchain technology. This is where things get a bit murky because the definition of a security is somewhat broad and can include any investment contract that involves the expectation of profit from the efforts of others.

This is not a story that is going away anytime soon. Watch this space.

Important note: The comments reported here do not constitute financial advice and are opinions only. Always seek independent financial advice before investing, and never trade or invest with money you cannot afford to lose.

Live Cryptocurrency Prices

Name	Price	24H (%)
Bitcoin (BTC)	$44,201.00	5.15%
Ethereum (ETH)	$2,262.72	2.33%
Tether (USDT)	$1.00	0.03%
BNB (BNB)	$230.18	-0.53%
XRP (XRP)	$0.62	2.29%
Solana (SOL)	$63.36	4.55%
USDC (USDC)	$1.00	-0.09%
Lido Staked Ether (STETH)	$2,265.23	2.41%
Cardano (ADA)	$0.443235	10.73%
Dogecoin (DOGE)	$0.103383	15.82%

Bitcoin Price Climbing Again: Is It Time To Buy?

Bitcoin has been enjoying a revival recently, with the Bitcoin price up by 17% in the past month. At the time of writing, the Bitcoin price is hovering around the $28,000 mark. This takes the market capitalisation of Bitcoin up to a whopping $535,541,123,890 USD at the time of writing.

Speculation is rife that the upward trend for Bitcoin will continue, bearing in mind the current troubles in the global banking industry. The recent collapse of Silicon Valley Bank has spooked global markets, giving rise to fears that the banking industry is out of control in a way similar to that which precipitated the 2008 global financial crisis.

Credit Suisse is another bank to hit the rocks, albeit Credit Suisse is one with an older and more venerable history than Silicon Valley Bank. The rapid takeover of the troubled Credit Suisse by UBS has calmed some fears, but the question investors across the world need to be asking right now is: are any more banks going to hit the wall?

It’s our view that Bitcoin and other cryptocurrencies will benefit from an uplift in value on the back of this uncertainty as more and more people, once again, turn to decentralized currency as a an essential way of creating a more stable economic environment. The whole point of cryptocurrencies is that the responsibility for the stability of the currency sits with the generally public, through their mutual confidence in the system, and not with policy makers who risk inspiring a lack of confidence in the global banking system.

It’s worth bearing in mind that back in 2021, at the peak of its price climb, the Bitcoin price hit over $67,000. If confidence in global banking remains shaky, it is possible we might see a slow and steady creep back towards those lofty heights.

Live Cryptocurrency Prices

Name	Price	24H (%)
Bitcoin (BTC)	$44,201.00	5.15%
Ethereum (ETH)	$2,262.72	2.33%
Tether (USDT)	$1.00	0.03%
BNB (BNB)	$230.18	-0.53%
XRP (XRP)	$0.62	2.29%
Solana (SOL)	$63.36	4.55%
USDC (USDC)	$1.00	-0.09%
Lido Staked Ether (STETH)	$2,265.23	2.41%
Cardano (ADA)	$0.443235	10.73%
Dogecoin (DOGE)	$0.103383	15.82%