Fun

News Feed - 2023-09-26 08:09:43

Helen Partz12 hours agoCrypto exchange claiming $1.4B trading volume uses reportedly fake license dataA crypto exchange claiming $1.7 billion in daily trades on its website and $1.4 billion in daily trading volume on CoinMarketCap had reportedly displayed false license data.9319 Total views17 Total sharesListen to article 0:00InvestigationJoin us on social networksA number of cryptocurrency platforms reporting billions of dollars in daily trades on CoinMarketCap appear to have been misleading their customers about holding certain crypto licenses, an investigation by Cointelegraph has found.


Bitspay, a crypto exchange that reports a $1.4 billion daily trading volume on CoinMarketCap, claimed it held a license in Estonia, and is regulated under Estonian law. However, after Cointelegraph reached out with questions about this license, the company swiftly erased its reportedly fake license data.


At the time of writing, Bitspay is the fourth-largest crypto exchange by daily trading volume on CoinMarketCap, following platforms like Binance, BitForex and Topcredit International.Top four crypto exchanges by daily trading volume. Source: CoinMarketCap


According to Bitspay’s page on CoinMarketCap, it is a centralized exchange (CEX) based in Estonia. The exchange was launched in 2020 and claims to be regulated under the Estonian “Anti Money Laundering Counter-Terrorism Financing Act 2019,” which appears to be referring to the country’s Money Laundering and Terrorist Financing Prevention Act.Bitspay’s info on CoinMarketCap. Source: CoinMarketCap


Bitspay also claimed it was licensed and regulated by Estonia’s Financial Intelligence Unit (FIU). “Bitspay Limited registered with the registration number FVR000796, under the Laws of the Republic of Estonia,” the firm stated on one of its domains, Bitspay.io, until it erased the information immediately following Cointelegraph’s inquiries.Bitspay claiming to have a license in Estonia on Bitspay.io. Source: Wayback Machine


Contacted by Cointelegraph, Estonia’s FIU reported that Bitspay didn’t hold any valid license in Estonia. “We took a look into it, and it seems that the license number which they have previously announced refers to an Estonian company, Globe Assets OÜ,” a spokesperson for the FIU said in a statement on Sept. 21. The license was also valid for less than a year, from March 2019 until January 2020, the representative noted.


The FIU didn’t respond to additional questions about Bitspay’s legal status in Estonia.


Bitspay was showing its website visitors information on the license mentioned above until at least Sept. 18, 2023. The firm subsequently rebranded its website from the briefly unavailable Bitspay.io to Bitspay.global on Sept. 21, removing all data about being registered or regulated in Estonia.


At the time of writing, Bitspay has not provided any information about its registration or license status on its new website. The exchange also claims on its website that its daily trading volume amounts to 65,249 Bitcoin (BTC), or $1.7 billion. However, the exchange appears only to have around 400 followers on X (formerly Twitter) and some 16,000 members on its Telegram channel.


Kelly Nova, who is said to be the founder and CEO of Bitspay, told Cointelegraph that the exchange is working on licenses in both Estonia and the United Kingdom. “We have some copyright issues, and that’s why we closed the Bitspay.io domain,” he said. The exec didn’t respond to Cointelegraph’s request for further information about Bitspay founders or why the firm previously claimed to have a license in Estonia on its website.


Bitspay appears to be far from the only platform reporting massive trading volumes on CoinMarketCap despite little being known about its licenses, founders or background. Exchanges like Topcredit, which reports $1.8 billion in daily trading volume on CoinMarketCap, and Bika, which reports $1.2 billion, have been unwilling to talk to Cointelegraph about their background and founders.


“We have long been aware that self-reported data can be problematic, but APIs are the only viable source for data collection,” a spokesperson for CoinMarketCap told Cointelegraph.


The representative also referred to the website’s scoring system, pointing out that platforms like Bitspay, Topcredit or Bika have a significantly lower score than major exchanges like Binance, which has owned CoinMarketCap since April 2020. “We always encourage our users to perform their own due diligence, especially with low-scoring exchanges,” the spokesperson said, adding:“We know our data isn’t infallible. Our role is as an objective and comprehensive information aggregator, not a regulator. [...] In short, CMC numbers are as credible as they can be, using our industry leading experience, technology, verification methodology and feedback loops [...]”


The spokesperson cited the crypto adage “don’t trust, verify” and said it embodies a foundational principle of cryptocurrencies and blockchain technology.


Related:Hong Kong to list ‘suspicious’ crypto platforms in wake of JPEX scandal


According to a public announcement, Bitspay was listed on CoinMarketCap in July 2023. CoinMarketCap’s primary rival, CoinGecko, hasn’t listed this website, nor has it listed Topcredit or Bika. Despite this discrepancy, CoinGecko has significantly more spot exchanges listed than CoinMarketCap. At the time of writing, CoinGecko lists a total of 784 exchanges, while CoinMarketCap lists only 225.


Websites like CoinMarketCap have frequently been criticized for providing inflated exchange trading volumes. In 2019, Bitwise Asset Management claimed that 95% of volumes on unregulated exchanges reported on CoinMarketCap were fake or non-economic wash trading in nature. Another investigation by data analytics firm The TIE suggested in 2019 that more than 86% of reported crypto trading volume appeared suspicious.


Collect this article as an NFTto preserve this moment in history and show your support for independent journalism in the crypto space.


Magazine: Big Questions: What’s with all the crypto deaths? # Bitcoin# Bitcoin Scams# Estonia# CoinMarketCap# CoinGecko# RegulationAdd reactionAdd reactionRead moreWho invented NFTs?: A brief history of nonfungible tokensHow to buy Bitcoin in DubaiHow are crypto firms responding to US regulators’ enforcement actions?

News Feed

What are Bitcoin whales and how to spot them?
Tobias Vilkenson12 hours agoWhat are Bitcoin whales and how to spot them?Follow Bitcoin whales’ trails: track their tactics, from manipulation to stop-loss hunting and explore their market impact for navigating crypto
India-Russia Oil Deals Chip Away at Dollar Dominance in International Trade
India-Russia Oil Deals Chip Away at Dollar Dominance in International Trade On Wednesday, Reuters reported that Western sanctions on Russia and oil trading between Moscow and India
Ana Paula Pereira7 hours agoOPNX exchange bids for crypto lender Hodlnaut in Singapore: ReportIf approved, the deal would see a capital injection of nearly $30 million worth of FLEX tokens into Hodlnaut to partially cove
Biggest Movers: ATOM Remains Close to 1-Year Lows, as DOT Declines 8%
Biggest Movers: ATOM Remains Close to 1-Year Lows, as DOT Declines 8% ATOM moved closer towards a one-year low on Wednesday, as prices dropped by nearly 10%. This came as DOT also
Ticino Blockchain Technologies Association Has Been Established
Ticino Blockchain Technologies Association Has Been EstablishedLugano, 10 September 2020 – The Ticino Blockchain Technologies Association aims to promote research and support
ZRO token falls 17% amid controversy over LayerZero’s ‘not an airdrop’
Ciaran Lyons5 hours agoZRO token falls 17% amid controversy over LayerZero’s ‘not an airdrop’After its June 20 launch, ZRO surged 15.15% within just 20 minutes before sharply tumbling 22% as people debated whether
Amaka Nwaokocha2 hours agoRipple Labs to revolutionize real estate industry through tokenizationAn innovative pilot program aims to enable users to tokenize real estate assets and utilize them as collateral for loans, le
Brazilian Tax Authority RFB Registers New Record of Almost 1.5 Million Brazilians Investing in Crypto in September
Brazilian Tax Authority RFB Registers New Record of Almost 1.5 Million Brazilians Investing in Crypto in September The Brazilian Tax Authority RFB registered a new record in the nu
Markets Spike After Fed Chair Says It ‘Makes Sense to Moderate the Pace’ of Rate Hikes, Hints Easing Could Happen in December
Markets Spike After Fed Chair Says It ‘Makes Sense to Moderate the Pace’ of Rate Hikes, Hints Easing Could Happen in December Equities, precious metals, and cryptocurrencies sh
Bitcoin UTXO Signal Approaches 99% Level – Bullish Signal Or Profit-Taking Setup?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Voyager to Allow Cash Withdrawals for Customers With US Dollars Held in Accounts
Voyager to Allow Cash Withdrawals for Customers With US Dollars Held in Accounts Following the bankruptcy judge approving the release of $270 million in cash deposits, the crypto f
Savannah Fortis10 hours agoAmazon invests $4B in Anthropic AI startupAmazon has agreed to invest $4 billion into the artificial intelligence startup Anthropic to develop high-performing foundation models.5104 Total views