Crypto exchange Bybit will suspend services in U.K. after ‘final warning’ from the FCA. Binance and its U.S. counterpart, as well as CEO Changpeng Zhao, has filed a joint motion seeking dismissal of the lawsuit from the United States Securities and Exchange Commission. Meanwhile, the firm behind Tether has acquired a stake in Bitcoin miner Northern Data.
Bybit will suspend services in UK following financial regulator’s ‘final warning’
Cryptocurrency exchange Bybit, a Dubai-based company, has announced the suspension of services to the United Kingdom in response to pending rules from the country’s Financial Conduct Authority, or FCA.
Starting Oct. 1, Bybit will begin suspending services to U.K. residents and cease allowing new applicants to sign up for services.
This move will be followed by the suspension of new deposits, new contracts and changes to positions for existing users on Oct. 8.
“In light of the UK Financial Conduct Authority’s introduction of new rules regarding marketing and communications by crypto businesses. […] Bybit has made a choice to embrace the regulation proactively and pause our services in this market,” said the firm.”
Due to recent UK regulatory changes, Bybit will suspend its services in the UK. New account applications cease from Oct 1, 2023, 8AM UTC. Existing UK users, please manage your positions before Jan 8, 2024, 8AM UTC. #Bybit
Find out more here: pic.twitter.com/06ucS4giKV
— Bybit (@Bybit_Official) September 22, 2023
Binance and CEO Changpeng Zhao ask court to dismiss SEC suit
Binance Holdings, it’s U.S. counterpart and CEO Changpeng Zhao have a joint motion seeking the dismissal of the lawsuit against them by the SEC.
According to a Sept. 21 filing to the United States District Court, both Binance Holdings and Zhao claimed that the financial regulatory had overstepped its authority in the lawsuit against them.
It accused the SEC of failing to introduce clear guidelines for the sector ahead of its lawsuit against the crypto exchange and as a result, had imposed its regulatory authority over the crypto sector retroactively.
Did you know that the CFTC sued Binance in March, alleging that BUSD is a commodity?
And then, just 3 months later, the SEC sued Binance, alleging BUSD is a security?
Now, if FinCen files suit and alleges BUSD is a currency, Binance will have achieved the Holy Trifecta! SMH. pic.twitter.com/b7ioB9qCB7
— Jeremy Hogan (@attorneyjeremy1) September 22, 2023
Lawyers for Binance also asserted that the regulator fundamentally misinterprets securities laws and their application to crypto assets.
In addition to Binance and Zhao’s petition, the American outfit of the crypto exchange, Binance.US — legally known as BAM Trading Services Inc. — also moved to have the charges made against it dismissed in a separate 56-page filing made on the same day.
Tether acquires stake in Bitcoin miner Northern Data, hinting at AI collaboration
The firm behind Tether has invested an undisclosed amount into German-based crypto miner Northern Data Group in a move backing artificial intelligence (AI) initiatives.
The company denied a report from Forbes regarding a $420-million investment, but declined to give a specific amount when reached for comment by Cointelegraph.
Tether, whose USDT is the largest stablecoin by market capitalization at more than $83 billion, says the investment is “separate from [its] reserves” and won’t impact customer funds.
According to a press release from Northern Data Group, the funds are involved in the purchase of hardware typically used in the artificial intelligence sector:
“Damoon Designated Activity Company (Damoon), a company Northern Data Group has recently acquired, with closing of the transaction expected in Q4 2023, has purchased over 10,000 NVIDIA H100 Tensor Core GPUs, at a total cost of approximately EUR 400 million.”
Tether Makes Strategic Investment into Northern Data Group – Set to Become the Biggest Independent AI Player in Europe
— Tether (@Tether_to) September 21, 2023
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