Binance has revealed it is rebuilding its Dogecoin (DOGE) wallet from scratch after a recent upgrade glitch has resulted in heavy controversy for the exchange. Binance is facing a lot of heat for mishandling of the DOGE wallet issue.
BINANCE- HAVE TO REBUILD DOGE WALLET ENTIRELY, WHICH IS CAUSING A DELAY THAT CO EXPECT MAY LAST ANOTHER WEEK OR SO— *Walter Bloomberg (@DeItaone) November 23, 2021
Binance, the world’s largest crypto exchange by trading volume has found itself in hot waters again, but not for regulatory reasons. The issue arose nearly a week ago when Binance upgraded the Dogecoin (DOGE) wallet on its platform. A glitch in the upgrade led to the execution of year-old transactions stuck in the system due to low fees.
Dogecoin holders on Binance later revealed that the exchange executed transactions from their account without their consent and now demanding it back from them even though there is no DOGE in their accounts. The exchange has also reportedly threatened to suspend and freeze withdrawals for these users. This caught the eye of Dogefather Elon Musk himself who called out Changepeng Zhao and Binance for their shady handling of the issue.
Binance responded to Musk’s tweet trying to explain the issue and how they are handling it. However, Musk dismissed their response claiming the error on the exchange’s part should not incur losses for the customers.
Doge holders using Binance should be protected from errors that are not their fault— Elon Musk (@elonmusk) November 23, 2021
Binance CEO Claps Back at Elon Musk
After Musk’s response to Binance’s official Twitter handles, Changpeng Zhao decided to take matters into his hand and responded to Musk’s “shady” tweet with a headline from The Guardian about Tesla’s recall of 12,000 vehicles caused by a communication glitch. Zhao wrote,
Elon, we are pretty certain it is an issue with the latest #doge wallet. We are in communications with the devs. Apologies for any inconvenience that this may have caused you. What happened here?
Elon, we are pretty certain it is an issue with the latest #doge wallet. We are in communications with the devs. Apologies for any inconvenience that may have caused you.
What happened here? 👀https://t.co/g2J50zqbEu— CZ 🔶 Binance (@cz_binance) November 23, 2021
The exchange is not new to controversies, however, a majority of these were mostly around regulations and compliance. The exchange has sought another couple of weeks to resolve the issue completely.
Binance Asia Acquires 18% Stake in Singaporean Securities Exchange HGX
Despite being stuck in regulatory limbo, Binance Singapore has acquired a stake in a MAS-regulated platform.
Binance Asia Service (a.k.a Binance.sg), the Singaporean arm of the world’s leading cryptocurrency trading venue, has invested in the private securities exchange – HG Exchange (HGX) – on December 8th.
Binance’s Strategic Stake
According to the official press release, BAS revealed an 18% post-money stake in HGX. Richard Teng, the CEO of Binance Singapore stated that the platform plans to work collaboratively with HGX to foster the blockchain ecosystem in the region and added:
“Crypto and traditional financial offerings continue to converge. Through this investment, we seek to work with HGX in enhancing offerings of products and services supported by blockchain technology.
In Singapore, we continue to work closely with key government agencies to support the growth of the blockchain ecosystem and development of requisite local talent needed.”
For the uninitiated, HGX was founded by prominent institutions such as brokerage firm PhillipCapital, financial service group PrimePartners, and investment firm Fundnel. Additionally, it is powered by the blockchain platform Zilliqa. Singaporean regulator, the Monetary Authority of Singapore (MAS), recently granted HGX a Recognized Market Operator license.
Regulator Tussle For Binance Not Over
Despite acquiring an 18% stake at the regional private securities exchange and getting access to engage with a regulated market operator, Binance is yet to cement its position in Singapore.
Reports earlier suggested that the cryptocurrency firm planned to withdraw its application from the region. Singapore is a tough nut to crack. Besides, with the mounting regulatory threat across different parts of the world, the CZ-led exchange is now looking elsewhere to build its headquarter.
It’s important to note that Binance’s Singaporean entity is under an exemption from holding a license under the city-state’s Payment Services Act (PS Act) for the provision of digital payment token services. In short, Binance Asia Services’ license is still being processed by MAS.
Meaning, the platform is allowed to offer services until its application is being reviewed and will cease after a response from the regulatory authority, be it approval, rejection, or withdrawal. If Binance plans to withdraw its license, the users in the region would not be able to buy and trade crypto-assets through the platform legally.
Earlier in September this year, MAS added Binance.com to its Investor’s Alert List that provides a list of unregulated platforms which may have been mistakenly perceived as being licensed or regulated by the authority. Shortly after, a Binance official clarified that the two entities – Binance.com and Binance Singapore (Binance.sg) – are separate platforms.
Breaking: Binance Expands Business in Singapore Amid Exit Speculations
As speculations about the world’s largest exchange, Binance’s exit from its former hub, Singapore took over social media, the latest update cancelled out all rumours, and determined Binance’s expansion plans. Binance CEO, Changpeng Zhao took to Twitter today, declaring that the crypto exchange has acquired 18 per cent of Singapore-regulated private securities exchange, Hg Exchange (HGX).
Binance Exclusive Investment To Cross Regulatory Hurdles
The acquisition has come just in time when Binance was struggling with getting approval from the Monetary Authority of Singapore (MAS) to legally provide crypto services in the nation. As HGX is a recognised market operator, it could potentially help Binance cross the innumerable regulatory hurdles.
According to Binance Singapore’s Chief Executive, Richard Teng, with its latest investment into HGX, Binance seeks to expand business in Singapore by offering improved and more centralised services, backed by blockchain technology. However, interestingly, Teng had formerly worked as the Chairman at HGX, henceforth, this investment may not been as out of the blue as portrayed.
“Crypto and traditional financial offerings continue to converge. Through this investment, we seek to work with HGX in enhancing offerings of products and services supported by blockchain technology…In Singapore, we continue to work closely with key government agencies to support the growth of the blockchain ecosystem and development of requisite local talent needed” Teng told the Business Times.
Binance CEO on Collaboration of Centralised approach with Decentralised technology
Earlier this month, CoinGape reported on Binance’s alleged, upcoming exit from Singapore in lieu of regulatory inconvenience. Insider reports claimed that Binance hinted at withdrawing its application with the Monetary Authority of Singapore (MAS) because of its overdue approval of an operation’s permit. While Binance CEO declined to comment on the status of his the exchange’s local unit’s licence application in Singapore, he noted that the exchange only seeks to establish in countries with a pro-crypto approach, despite agreeing to become centralised. He asserted that both, risk reduction and Innovation driven economic growth can go hand in hand.
“When (regulators) only go by that metric, they just shut everything down, and yes that’s the best way to reduce risk. But better regulators have 2 metrics – they want to encourage innovation or economic growth and reduce risk. Regulators usually make rules that are much more pro-business when they look at both these metrics.”, The Business Times quoted its impromptu interview with CZ.
FTX overtakes Binance in Bitcoin Futures OI as price reclaim $50k
- FTX has surpassed Binance in Bitcoin futures OI.
- Overall, interest in Bitcoin and other altcoins is starting to increase again.
- Fear and Greed index suggests now is a good buying opportunity for BTC.
Cryptocurrency trading platform FTX has now surpassed Binance and other popular digital currency derivatives platforms in terms of open interest (OI) in Bitcoin. The growing interest in Bitcoin futures comes at the time when the volume and price of Bitcoin are also reclaiming high marks, which somewhat indicates a bullish market ahead.
📈@FTX_Official has overtaken competitors to become the largest exchange in the #Bitcoin futures market, according to https://t.co/poOM1xPG0E data.
The exchange recently announced that, together with its US affiliate, it seeks to raise $1.5 billion.
👉 https://t.co/qyzOcvlZfh pic.twitter.com/VKPe8sKvOc— CryptoRank Platform (@CryptoRank_io) December 7, 2021
FTX records $3.6B OI in Bitcoin Futures
According to the market data by CryptoRank, the overall open interest in Bitcoin futures on FTX exchange has topped $3.65 billion, followed by Binance ($3.4 billion), Bybit ($1.55 billion), OKEx ($1.52 billion), Deribit ($1.30 billion), BitMEX ($520 million), and others. On the 24 hours timeframe, however, Binance leads with more than $25 billion OI in Bitcoin futures.
The growing interest in the Bitcoin market can be considered a bullish sign. OI tends to increase when there are notable inflows of capital to the market; otherwise, the OI drops, as seen recently when Bitcoin crashed below $45,000. At the time of writing, Bitcoin was trading above the $51,500 mark, which a market capitalization above $973 billion, per Coinmarketcap.
Some bullish signs
There are some indicators pointing towards a better market ahead, one of which is the Bitcoin fear and greed index. About 30 days ago, traders in the BTC market were in the “greed” state, which preceded the sudden crash in the price of Bitcoin some days ago. Presently, the market is in the “fear” state, which is considered a buying opportunity.
Other major altcoins have been trending alongside Bitcoin, moving to the upsides since the beginning of the week. The overall crypto market valuation is up by more than nine percent over the last 24 hours to $2.40 trillion.