Binance reportedly in talks to launch crypto exchange in Indonesia

Binance is reportedly in talks with the richest family in Indonesia regarding a new crypto venture.

Binance, the world’s largest crypto exchange by trading volume, is reportedly in talks with Indonesia’s richest family, the Hartonos, to open a crypto exchange. 

As per a report published in Bloomberg, Binance Holdings Ltd. is looking to finalize a crypto venture with billionaire siblings Budi and Michael Hartonos-controlled PT Bank Central Asia (BCA), and Indonesia’s largest state-owned telecom firm PT Telkom Indonesia. 

The report also claimed that the BCA may enter into the partnership using a separate business entity and the terms of the partnership could vary at the time of finalization. If finalized, it would be the second crypto venture for Binance in Indonesia. The first came in the form of a partnership with crypto trading platform Tokocrypto.

A new crypto venture involving the country’s richest family and the largest telecom firm would give Binance a strong foothold in the country with positive crypto regulations. The Indonesian government treats the crypto market as an investment class and allows its trading alongside commodity futures.

BCA didn’t immediately respond to Cointelegraph’s requests for comments. Binance declined to comment.

Related: Binance plans to become registered UK firm despite regulatory setbacks

After facing major regulatory challenges in the second and third quarters of 2021, Binance is now looking to expand its footprint in the Asia Pacific region. The Singapore arm of the crypto trading giant recently acquired an 18% stake in a local private securities exchange, Hg Exchange. The crypto exchange giant led another $1.5 million funding round for an Asian tokenized messaging platform, the BBS Network.

Apart from new acquisitions and fundings, Binance’s sister company in the United States, Binance.US, is reportedly in the final stages of closing a multi-million funding round. Changpeng Zhao, the CEO of the global exchange, had revealed in November this year that the firm is expected to raise “a couple hundred million.”

Analysts say Bitcoin’s behavior at $47.5K mirrors the pre-breakout 2017 market

Bitcoin price succumbed to another wave of selling, but analysts say the current market structure at $47,500 mirrors the early bull-market from 2017.

Crypto markets tanked again after Bitcoin (BTC) price slipped to $47,500 on Dec. 9, but most analysts agree that the price is destined to remain in the $40,000 to $55,000 range until the holiday season has passed.

BTC/USDT 4-hour chart. Source: TradingView

Data from Cointelegraph Markets Pro and TradingView shows that the early morning defense of the $50,000 support level was overwhelmed by sellers and according to independent market analyst Ben Lilly, bids at underlying support levels are not inspiring much confidence from bulls.

Here’s a look at what analysts and traders are saying about the recent price action and whether BTC’s current downside is a signal that a bear market is in the making.

Bulls aim to hold the $47,000 support

Insight into the weekly price action was provided by analyst and pseudonymous Twitter user Rekt Capital, who posted the following chart, which outlines the levels of support and resistance that are currently relevant to the price action for BTC.

BTC/USDT 1-week chart. Source: Twitter

Rekt Capital said,

“BTC is threatening to lose this red support but no confirmed breakdown. Below red is the orange area, a strong support which ended two -25% corrections in February and September. Generally red needs to hold to avoid a drop to orange. Still holding here until further notice.”

Full-time trader and Cointelegraph contributor Michaël van de Poppe is also keeping an eye on the price action around these important support levels and posted the following chart outlining the “make it or break it” support level in the low $40,000s.

BTC/USD 1-day chart. Source Twitter

Poppe said,

“Chop, chop, chop it is for Bitcoin. A crucial area to hold is that region we’ve touched already at $42K. The close was above $46K–47K and I’d prefer not to lose that at all.”

Pennant formation hints at an eventual bounce

Further analysis of the weekly price action for BTC was provided by analyst and pseudonymous Twitter user TechDev, who posted the following tweet outlining the formation of pennants, which have proven to be followed by bullish breakouts in the past, on the Bitcoin chart.

As expressed by TechDev at the end of his tweet, nobody ever said that making money and holding firm on the long-term outlook for BTC was easy, and the biggest rewards are reserved for those that can persevere during times of struggle like that which the market is currently facing.

Related: Bitcoin could hit $100K, gold $2K in 2022 thanks to ‘deflationary forces’ — Bloomberg analyst

Bitcoin price action resembles the 2017 market

A final bit of insight was offered by the crypto trader and pseudonymous Twitter user Nunya Bizniz, who posted the following chart comparing the price action for BTC during the 2017 bull market cycle to the current chart and hinted at a possible breakout approaching for Bitcoin in the near future.

2017 BTC/USD price action vs. present-day BTC/USD price action. Source: Twitter

Nunya Bizniz said,

“Price action at a prior ATH that has been most similar to now was in 2017. Maybe?”

While what happens with Bitcoin price in the near future remains to be seen, it’s looking as if the handful of $100,000 predictions by the end of 2021 will fall short and possibly not occur until sometime in 2022, if at all.

The overall cryptocurrency market cap now stands at $2.25 trillion and Bitcoin’s dominance rate is 40.1%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Coinbase users launch online refund campaign following GYEN troubles

Many Coinbase customers are understandably frustrated after the company decided to freeze their accounts for weeks.

Coinbase has come under fire recently following a technology snafu that reportedly resulted in the company closing many of its customer’s accounts. 

When users attempted to purchase Japanese stablecoin GYEN and Powerledger (POWR), they suffered from technical difficulties. This was then followed by an error in the system response. Now, deeply frustrated customers have launched an online campaign demanding refunds. 

Chris Flemming, a Coinbase user, has started an online petition against the exchange called “Accountability for COINBASE GYEN account freeze,” which has already garnered 1,620 signatures. It states, “We as a whole recognize that mistakes happen and there is the potential for loss when investing in any cryptocurrency or asset. Though in this case the losses came from internal technical errors of Coinbase.”

On Nov. 10, according to a CNBC report, Coinbase listed GYEN for the first time. Somehow, the coin became detached from the Japanese yen’s price it was supposed to track starting around Nov. 17. The token’s value rose to a peak of 0.065643, which is more than 7.5 times greater than investors had anticipated in fiat currency. Transfer activity on Coinbase increased on Nov. 18 and peaked at $122 million, according to the report.

It’s still unclear how many clients were affected, how much money was lost, or whether anybody made a profit by selling before the price tumbled again. The currency is now trading at the yen peg rate as it was originally intended.

Related: Binance CEO reveals one key factor for token listings

A Coinbase representative told CNBC that the company would provide a thorough explanation of what occurred and how concerns would be addressed. The Nasdaq-listed exchange “will publish a blog article on the November 19 event involving GYEN and POWR assets in the coming weeks,” the representative said. They noted that both GYEN and POWR have resumed trading on Coinbase Pro, and withdrawals are enabled on Coinbase.com.

Elon Musk, CEO of Tesla, recently suggested that cryptocurrency owners transfer their funds out of centralized exchanges to safeguard them. “Any crypto wallet that won’t give you your private keys should be avoided at all costs,” Musk said.

Indian CoinDCX crypto exchange to go global in 2022, says exec

After announcing Cosmex in February 2021, CoinDCX is now testing its global product to launch in 2022.

Ongoing uncertainty around cryptocurrency regulation in India isn’t stopping domestic crypto companies from launching global offerings.

Indian cryptocurrency exchange CoinDCX is preparing to move forward with its global crypto-to-crypto trading platform — dubbed Cosmex — in 2022, according to a senior executive at the company.

Ramalingam Subramanian, head of brand, marketing and communications at CoinDCX, told Cointelegraph that CoinDCX has significant ambitions regarding the exchange’s global expansion as its upcoming platform will target a global audience.

The firm initially announced the development of Cosmex in February 2021, planning to expand CoinDCX’s footprint to the global markets amid the increasing global demand and acceptance for cryptocurrencies.

According to Subramanian, the launch of Cosmex is coming “most likely next year” and will initially launch in Western Europe and Southeast Asia.

Cosmex “has nothing to do specifically with what’s happening in India,” Subramanian stressed, adding that the platform rather seeks to respond to the “huge demand” for crypto services outside of India. He added that CoinDCX is not willing to add to speculation around regulatory uncertainty in India by discussing scenarios where Indian regulators take a tougher stance on the industry.

Related: India’s crypto unicorn CoinDCX has no immediate plans for IPO

Subramanian noted that CoinDCX’s main platform is “focused on India generally” and has restrictions for certain countries.

After lifting a major ban on crypto services in 2020, Indian authorities have been reportedly considering other restrictions for the industry. However, experts are confident that the Indian government would most likely choose to regulate rather than ban its growing crypto economy.

Crypto CEOs request Congress provide regulatory clarity at hearing on digital assets

“We don’t need knee-jerk reactions by lawmakers to regulate out of fear of the unknown rather than seeking to understand,” said Representative Patrick McHenry.

The House Committee on Financial Services heard from several CEOs of major crypto firms in the United States, some of whom seemed to present a united front in urging lawmakers to provide a clear regulatory framework for crypto.

Speaking at a Wednesday hearing titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States,” Circle CEO Jeremy Allaire, FTX CEO Sam Bankman-Fried, Bitfury CEO Brian Brooks, Paxos CEO Chad Cascarilla, Stellar Development Foundation CEO Denelle Dixon and Alesia Haas, chief financial officer of Coinbase and CEO of its U.S. subsidiary, told U.S. lawmakers about the challenges their companies faced as both stablecoin issuers and digital asset exchanges.

In a written statement released prior to the hearing, Allaire said Circle supported Congress’ efforts for “national licensing and Federal supervision” of stablecoin issuers, given many were now “too big to ignore.” Cascarilla seemed to echo this sentiment, describing the U.S. financial system as “inadequate” for handling the emerging digital economy, but blockchain technology may offer a possible solution:

“A blockchain-based financial architecture could settle trades on the same day, mitigate counterparty risk and eliminate the costly central clearinghouse,” said the Paxos CEO. “This would enable market participants and regulators to monitor and correct settlement and margin shortfalls in real time. We agree that shortening the trade settlement cycle should be a high priority for the SEC, and we are working aggressively to make that possible.”

Circle CEO Jeremy Allaire addressing the House Committee on Financial Services on Wednesday

Brooks added that there were already examples of companies involved in the digital asset space finding a more regulatory-friendly environment in other countries, such as Fidelity launching a Bitcoin (BTC) exchange-traded fund in Canada in the absence of the U.S. Securities and Exchange Commission’s approval of one.

“There is a reason why crypto talent is no longer concentrated in Silicon Valley, the birthplace of the original commercial Internet,” said Brooks. “Sure, some talent has merely moved from Silicon Valley to Miami — but a surprising number of talented founders have left for Portugal, Dubai, Abu Dhabi, Singapore, and other jurisdictions that are not at all unregulated but that have a more positive posture toward innovation and growth.”

Related: US lawmaker urges congressional action on crypto as government avoids shutdown

Addressing the panel of crypto CEOs, Representative Patrick McHenry argued the technology in the crypto space was “already regulated” but acknowledged that any existing framework could be “clunky” and “not up to date.” According to the North Carolina congressperson, a lack of understanding among his fellow committee members could risk overregulating crypto and blockchain:

“We need reasonable rules of the road, we know that. We don’t need knee-jerk reactions by lawmakers to regulate out of fear of the unknown rather than seeking to understand. And that fear of the unknown in the move to regulate before understanding will only stifle American ingenuity and put us at a competitive disadvantage.”

Still ongoing at the time of publication, the House committee hearing seeks to discuss four key aspects of the crypto space: exchanges, stablecoin offerings, regulatory concerns in digital assets, and federal regulatory responses. Lawmakers will also likely discuss decentralized finance, given its potential to “replicate and replace conventional delivery of financial services such as loans, asset trading, insurance, and other services.”

Binance Singapore arm acquires 18% stake in private stock exchange

Binance’s most recent acquisition is still subject to some regulatory requirements.

Binance Asia Services, the Singapore arm of major cryptocurrency exchange Binance, has acquired a stake in a local private securities exchange, Hg Exchange (HGX).

On Dec. 7, the company officially announced an acquisition of a post-money 18% stake in HGX, a stock exchange licensed and regulated by the Monetary Authority of Singapore.

Binance Singapore CEO Richard Teng said that the new investment will help Binance and HGX further expand the scale of products and services “supported by blockchain technology” in Singapore.

“Crypto and traditional financial offerings continue to converge. We aim to work collaboratively with HGX to enhance the blockchain ecosystem in Singapore,” Teng stated.

HGX is a community-driven private stock exchange, founded by financial institutions like wealth management firm PhillipCapital, local financial services group PrimePartners, and Fundnel, a Southeast Asian private investment technology platform. The exchange reportedly uses the Zilliqa blockchain.

After working as CEO of Financial Services Regulatory Authority at Abu Dhabi Global Market, Teng joined Binance Singapore as CEO in August 2021, a few years after the Singaporean branch was launched. According to the CEO, Binance continues working closely with “key government agencies” to support the growth of the blockchain ecosystem and is actively hiring local talent.

Related: Singapore suspends exchange Bitget’s license over K-pop coin promotion

The new investment comes soon after Binance experienced some regulatory issues in Singapore. In late September, Binance restricted Singapore users from using its platform, citing compliance matters. Previously, Binance limited product offerings in Singapore amid regulators alleging that the company may have violated payments laws.

Huobi opted to exit Singapore as a global company in order to launch a dedicated local entity in November 2021.

House memo details Congress’ priorities ahead of crypto CEO hearing

The hearing on digital assets will involve discussions around four key aspects: crypto exchanges, stablecoin offerings, regulatory concerns in digital assets and federal regulatory responses.

The United States House Committee on Financial Services released a memorandum detailing the points of discussion during the hybrid hearing on digital assets to be held on Wednesday at 10:00 am ET.

Addressing the members of the Financial Services Committee, the memo confirmed that the hearing will dedicate one panel to six executives from the crypto community as witnesses. The list includes Circle’s Jeremy Allaire, FTX’s Sam Bankman-Fried, Bitfury Group’s Brian Brooks, Paxos’ Charles Cascarilla, Stellar’s Denelle Dixon and Coinbase’s Alesia Haas.

The hearing, entitled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States,” seeks to discuss four key aspects: crypto exchanges, stablecoin offerings, regulatory concerns in digital assets and federal regulatory responses.

The brief reads, “This hearing will examine some of the new products and services offered by major digital assets market participants, the role of cryptocurrency market exchanges in facilitating investments in cryptocurrency and related transactions, the growth of stablecoins and other digital assets, and the current regulatory landscape governing these new products and services.”

While the memo highlights the role of exchanges in serving as an entry point for crypto investors, the hearing will also discuss decentralized finance, given its potential to “replicate and replace conventional delivery of financial services such as loans, asset trading, insurance, and other services.”

The document also talks about the differences in operational structures and reserve compositions of stablecoins as compared to fiat currency, adding:

“Cryptocurrency markets have no overarching and centralized regulatory framework, leaving investments in the digital assets space vulnerable to fraud, manipulation, and abuse. Digital assets and related service providers can present money laundering, terrorist financing, sanctions evasion, kleptocracy, and other illicit finance risks.”

Acknowledging the rise of cryptocurrencies, Congress hopes to develop a clear stance on central bank digital currencies (CBDC) based on the ongoing study conducted by the Federal Reserve to “examine the potential benefits and risks of CBDCs and its impact on the U.S. domestic payments system.”

On Tuesday, Circle’s Allaire released a statement ahead of the hearing, stating:

“In a world where money becomes a core feature of the internet, the U.S. should aggressively promote the use of the dollar as the primary currency of the internet, and leverage that as a source of national economic competitiveness, security and a major upgrade needed for more efficient and inclusive financial services.”

Allaire’s firm, Circle is the sole issuer of dollar-backed stablecoin USD Coin (USDC). He suggested that the U.S. government can make mainstream use of the stablecoin via dollar-denominated reserves. “Policy frameworks need to support an open and competitive playing field, and allow new technologies to flourish,” he added.

Cryptocurrency Exchange Huobi Global to Leave China This Month

Cryptocurrency Exchange Huobi Global to Leave China This Month

Digital asset exchange Huobi Global has revealed its intention to exit the Chinese Market. The crypto trading platform with Chinese roots said it will stop processing transactions for existing users on the mainland by the end of the year.

Huobi Global Halts Services in the People’s Republic

Crypto exchange Huobi Global is going to discontinue services for users based in mainland China this month. In a statement quoted by the English-language Chinese TV channel CGTN, the company announced on Sunday that starting from 11:00 a.m. Beijing time on Dec. 14, users in the People’s Republic will not be allowed to purchase cryptocurrencies.

Huobi Global further detailed it will cease crypto exchange operations on the following day, Dec. 15, and terminate all crypto asset trading by 12:00 p.m. on Dec. 31. However, traders will still be able to log into their accounts and apply for the withdrawal of remaining assets within the next one to two years, emphasized the platform, which has not accepted new customers from China since September.

The report notes that several cryptocurrency exchanges are preparing to pull out of the Chinese market by the end of 2021. Their moves come after Beijing’s decision this year to reiterate restrictions on cryptocurrency transactions which was followed by a crackdown on trading and mining. Besides Huobi Global, the list includes other major platforms such as Binance and Kucoin.

The state-run CGTN remarks that China has been stepping up efforts to limit the crypto market amid what it calls a global cryptocurrency crackdown. “Concerns grow that the highly volatile digital currencies could undermine the stability of financial and monetary systems, increase systemic risk, promote financial crime and hurt investors,” the news service adds.

The People’s Republic banned crypto-related activities back in 2017 and while the government went after coin trading and token sales, authorities did not interfere with mining until this spring. In May, the State Council, the cabinet of ministers in Beijing, decided to clamp down on the crypto industry following President Xi Jinping’s pledge for the country to achieve carbon neutrality in the next four decades.

Leading mining hardware producer Bitmain provided another example of a major crypto company exiting the Chinese market. In October, the Beijing-based manufacturer announced it will no longer ship its products to the mainland, explaining the move was in response to local regulations. As is the case with other businesses, Bitmain stressed the decision does not concern its operations in the special administrative region of Hong Kong and neighboring Taiwan.

Do you expect more crypto companies to pull out of the market in mainland China? Tell us in the comments section below.