Crypto Exchange Beaxy Shuts Down in Wake of SEC Lawsuit

Beaxy gives you access to globally sourced liquidity that results in competitive entry and exit levels when you trade BTC-USD. Increase your profit margin by spending less on fees when you trade fiat for crypto. We write product reviews and comparison articles in the field of cryptocurrency.

Blockdaemon is the leading independent blockchain node infrastructure to stake, scale, and deploy nodes with institutional-grade security and monitoring. Supporting 40+ cutting edge blockchain networks in the cloud and on bare metal servers, Blockdaemon is used by exchanges, custodians, crypto platforms, financial institutions and developers to connect commercial stakeholders to blockchains. Austin DeNoce is a writer, personal investor, and entrepreneur who is focused on trading and investing education for macro, crypto, equities, derivatives, and foreign exchange traders. He graduated from the University of California, Santa Barbara with a bachelor’s in philosophy and carries a deep passion for a first-principles approach to investing and education therein. Austin specializes in topics related to cryptocurrencies and blockchain technology. When it comes to the Trender trading signal services, it’s difficult to say how well it works without an extended period of time using it.

Businesses

Following the shutdown, customers were advised to withdraw all their assets within 30 days. 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.

Evan Jones was introduced to cryptocurrency by fellow CryptoVantage contributor Keegan Francis in 2017 and was immediately intrigued by the use cases of many Ethereum-based cryptos. He has a keen and vested interest in cryptos involving decentralized backend exchanges, payment processing, and power-sharing. Yes, prior to its shutdown, the platform had a partnership with the Gunbot trading bot, which allowed Gunbot users to connect to the exchange at no extra cost.

This includes $79,200 in civil penalties to be paid by Windy, Abbot andMurphy. Moreover, the SEC said it will continue its litigation against Hamazaspyan for securitiesfraud, and both the Founder and Beaxy Digital for the unregistered offeringof BXY. Speaking on the case, Gurbir S.Grewal, the Director of the SEC’s Division of Enforcement, noted separateregistration requirements exist for organizations that want to operate asexchanges, brokers and clearing agencies. These requirements are targeted at protectinginvestors and ensuring checks and balances among the various firms.

The SEC continues to focus on determining whether digital assets are securities. While Beaxy Exchange was a relatively small exchange, the charges that tie back to the trading, clearing, and dealing of unregistered securities may have big implications across the industry. Indeed, the SEC has already charged or is investigating several large cryptocurrency exchanges with offering unregistered securities3. SEC Chairperson Gary Gensler recently reiterated his stance that proof-of-stake tokens should be regulated as securities4.

• The exchange ceased itsoperations in the wake of a lawsuit from the United States Securities andExchange (SEC) which charged the platform and its executives for operating anunregistered exchange, brokerage andclearing agency.
• Brian and his companies struck an agreement with Windy to provide market-making services for the Beaxy token and also made a similar arrangement for another crypto security, causing Peterson and Braverock to be unregistered dealers.
• The securities regulatorfurther alleged that Hamazaspyan “misappropriated at least $900,000 forpersonal use, including gambling.”
• Beaxy is an all-in-one cryptocurrency exchange platform which gives users all the power and control over their finances.

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Guidehouse is a global AI-led professional services firm delivering advisory, technology, and managed services to the commercial and government sectors. With an integrated business technology approach, Guidehouse drives efficiency and resilience in the healthcare, financial services, energy, infrastructure, and national security markets. Node management is one of the most critical infrastructure elements at any exchange. Persistent server uptime, data integrity, and redundant 100% reliable architectures are all essential to efficient operations.

• By creating an account you get access to a wide variety of payment rails, automated trading systems, assistive trading tools, bulletproof security, and more.
• Persistent server uptime, data integrity, and redundant 100% reliable architectures are all essential to efficient operations.
• The information provided on Inside Bitcoins is for educational and informational purposes only and should not be considered financial, investment, or trading advice.
• Also facing charges is Brian Peterson and his companies, the Braverock entities, for acting as unregistered dealers due to the marketing services they provided to Beaxy.
• We strongly advise you to withdraw any remaining assets within 30 daysto avoid unnecessary complications and delays,” Beaxy announced.

“Beaxy’s ambition to build a top of the line cryptocurrency exchange made them an obvious partner. After the matching engine was built, OneTick Surveillance was deployed,” Ross Dubin, global head of sales of OneMarketData, said. Founded in 2017 by two software engineers, most of the development process of the exchange was done in a bear market when many other crypto-related companies were forced to shut their shops.

Crypto Exchange Beaxy Shut Down After SEC Lawsuit

It’s worth noting that users from the USA are currently not eligible to access the Loyalty Rewards program or obtain the PLS token in any way. The reward calculations for payouts are performed everyday at midnight UTC, however the actual payouts for loyalty rewards are made on a monthly basis, on the first day of each month with PLS holders receiving rewards for the previous month. In the following example, if a user locks up 100K BXY tokens for 6 months, they will receive 100K PLS tokens. If there are also 10 million BXY tokens locked up in various accounts on Beaxy, there will be 10 million PLS tokens in circulation.

Other Centralized Exchanges

Securities and Exchange Commission charged the company and its founder, Artak Hamazaspyan. With operating an unregistered exchange and brokerage, the agency said Wednesday in a statement. CHICAGO, Sept. 7, 2021 /PRNewswire/ — Digital asset exchange Beaxy today announced it has begun migrating operations to leading blockchain infrastructure provider Blockdaemon.

Over $2 million in trading volume during the first 24 hours confirms there’s an interesting in this new trading platform. The company has also processed thousands of Know-Your-Customer requests, which is a major milestone for such a new project. Keeping the momentum going will prove to be a crucial challenge, as the competition will not sit by idly. Furthermore, Beaxy supports both the US Dollar and Euro, making this platform more attractive to users around the world. The company also uses multiple wallets per currency, which seems to indicate they will keep the majority of funds in cold storage at all times. This is a common practice in the cryptocurrency trading industry, as leaving funds in a hot wallet will attract the attention of hackers.

What Is Beaxy?

Earlier this year, crypto exchange Kraken agreed to shut its crypto-staking operations to settle charges with the SEC. Last week, SEC also issued crypto exchange Coinbase a Wells notice, warning the Platform that it identified potential violations of U.S. securities law. The shutdown follows a few hours after the Securities and Exchange Commission charged the Beaxy Platform and its executives for failing to register as a national securities exchange, clearing agency, and a broker. Crypto trading platform Beaxy has closed down its operations following the SEC crackdown, citing an “uncertain regulatory environment.” Also facing charges is Brian Peterson and his companies, the Braverock entities, for acting as unregistered dealers due to the marketing services they provided to Beaxy. The SEC released a press statement stating that Artak Hamazaspyan, the founder of Beaxy, and the exchange unlawfully raised $8 million in an unregistered offering of the Beaxy token (BXY).

Both of these programs are designed to reward existing customers and allow them to invite new users to the platform. Considering how big some of the other cryptocurrency exchanges are these days, the company will need to use every tool at its disposal to compete with the big guys. By actively relying on its community members to do so, the company aims to make a positive impact.

Labeling itself as an all-in-one cryptocurrency trading platform is a tall order to live up to. For the https://traderoom.info/beaxy-cryptocurrency-exchange-review/ Beaxy team, the desire to revolutionize the world of cryptocurrency trading is a top priority. It’s evident not all trading platforms give users the control over funds they need or deserve. Instead, most companies act as a custodian over customer funds, which can create a lot of issues further down the line. Beaxy wants to shake things up and bring strong competition to the other players in this industry.

Easy KYC

“Trading on the platform hasbeen halted effective immediately to simplify the withdrawal and reconciliationprocess. We strongly advise you to withdraw any remaining assets within 30 daysto avoid unnecessary complications and delays,” Beaxy announced. Meanwhile, in its announcement,Beaxy said it will make all customer assets on its platform available forwithdrawal “within 24 hours after all user orders are cancelled and balancesverified.” The parties, without admittingor denying the allegations, have also agreed to pay various amounts inpenalties to the SEC.

In the future, the team aim to add OTC trading capabilities, margin trading, and portfolio management features that will appeal to a variety of traders. The exchange also incorporates TradingView charts with a full range of technical indicators, and trading analysis, data research, and back-testing services from OneMarketData. More experienced crypto traders will be impressed by the variety of market orders available on Beaxy, and they include Market, Limit, Post Only, Limit IOC, Limit FOK, Stop Loss, Stop Loss Limit, Take Profit, and Take Profit Limit orders.

If all staking products or proof-of-stake tokens are ultimately determined to be securities, then most crypto exchanges offering services in the U.S. will have to comply with the federal securities law, including applicable registration requirements. This would be a significant change from the current regulatory environment, where most digital asset businesses are licensed and regulated as money transmitters. Securities and Exchange Commission (SEC) charged the online  crypto asset trading platform, Beaxy Exchange, and its executives, with failing to register as a national securities exchange, broker, and clearing agency1.