Ether Crashes to $700 on Kraken; High Network Activity Leads to Withdrawal Delay & Suspension

Ether Crashes to $700 on Kraken; High Network Activity Leads to Withdrawal Delay & Suspension

In Monday’s crypto carnage, the market provided a hefty discount that people have been calling out for some time now, with the digital assets rallying hard.

The overall cryptocurrency market lost $240 billion, but since then, it has gained some $86 billion back as the prices of cryptocurrencies make a recovery.

While Bitcoin went under the $50,000 level, Ethereum went under $1,550. But what has been interesting and for some devastating, the price of Ether went to $700 on Kraken.

The cryptocurrency exchange had some wild price action on Ether as after such a discounted opportunity, it went back right above $1,700 and caught up with other exchanges soon after.

This hasn’t even been a one-time thing as popular crypto personality, CryptoCobain, tweeted, “People trading on Kraken are masochistic. Once per month they get completely fucked by the matching engine.”

While for leveraged traders, it was a disaster, this also turned out to be a perfect opportunity for spot buyers.

“Unbelievable, my fishing ETH orders below $1.2k have been filled on Kraken,” tweeted one trader, who is extremely bullish on Ether and has long been calling out for a $10,000 price target for the second-largest cryptocurrency in this cycle.

On top of the deep red market, this much price volatility sent the gas prices on the network soaring. This made trading on-chain nearly impossible, let alone allowing traders to front-run.

Exchanges were already struggling with too much activity, with Kraken reporting, “Due to heavy traffic you might experience some connectivity issues. We are working to resolve the issue as soon as possible.”

Then, this congestion due to demand spikes on the Ethereum network led to delays with ETH and ERC20 token withdrawals.

Besides Bitstamp, Binance, as usual, felt the heat and suspended withdrawals.

“Binance has temporarily suspended withdrawals of ETH and Ethereum-based tokens due to high network congestion. Rest assured funds are SAFU, and we apologize for any inconvenience caused,” informed the leading spot exchange.

For now, things are slowly coming back to normal, ETH is currently around $1,750, and Bitcoin is back above $53,500.

Read Original/a>
Author: AnTy

Bitstamp’s Dutch Users Must Provide KYC Documents On External Withdrawal Addresses

Bitstamp’s Dutch Users Must Provide KYC Documents On External Withdrawal Addresses

  • Bitstamp introduces new mandatory withdrawal rules to customers in the Netherlands.
  • Users will need to provide KYC documents for external wallet addresses to make crypto withdrawals.
  • Is this trend set to continue in other regions and exchanges?

In an email circulating across crypto social media channels, Bitstamp has activated new withdrawal rules for customers in the Netherlands, requiring them to prove that they are the owner of the withdrawal address. This follows the recent implementation of crypto laws by the Dutch government targeting crypto service providers such as exchanges. The email read,

“We have made some changes on how cryptocurrency withdrawals work on Bitstamp.”

“The new regulation requires us to collect proof that you are the owner of any third party wallet or exchange account before you can withdraw crypto to it.”

Users will need to whitelist any external withdrawal address by providing proof or picture that the account belongs to them. Whitelisting addresses were available on Bitstamp as a voluntary security measure but will now be a requisite procedure for Dutch customers to withdraw from the exchange. The directive kicked off to all Dutch customer accounts on Friday, 15th January 2021.

Moreover, users cannot withdraw their tokens to third-party wallets such as mixers and payment channels. They will need to withdraw the coins to their whitelisted address before transferring them to a third-party crypto wallet.

The Netherlands is one of the leading countries implementing the AMLD 5 directive proposed to EU countries to curb money laundering and counter-terrorism financing. Bitstamp compliance lies in the latest crypto laws drafted by Dutch lawmakers in November 2019 and passed late last year.

Crypto companies operating in Holland must register with the central bank, the De Nederlandsche Bank, BEG reported earlier. The central bank set a deadline of January 2020 for every crypto firm and service provider in the country to obtain a license. Recently, DNB approved the first license for a crypto exchange in the country, offering AMDAX BV, an Amsterdam-based crypto service provider, the power to offer crypto-assets to Dutch residents.

The Netherlands’ case could open a case for other European states and other governments to follow their steps in regulating cryptocurrencies. Recently, U.S regulator FinCEN proposed draconian rules extending anti-money laundering (AML) regulation to non-custodial wallets that will see crypto transactions above $10,000 reported to authorities.

Read Original/a>
Author: Lujan Odera

Binance Halts Filecoin (FIL) Withdrawals Over the Weekend

Over the weekend, leading spot crypto exchange Binance stopped the withdrawal of the Filecoin (FIL) without any announcement.

Even after 24 hours, it continued to show, “The current currency is not open for withdrawal.”

The exchange finally told its customers that it was due to the sudden failure of the wallet. The weekend was to blame, and Binance has to do internal technical repairs to restore the FIL network mainnet.

“The industry suspects that a large amount of FIL has been lent from Binance before,” tweeted Colin Wu of Chinese publication Wu Blockchain

“Binance Filecoin inventory has been drained it seems like, withdrawal of FIL has been paused for over 24hr now Lots Chinese FIL miners rekt badly and the rough total investment into FIL mining is way over its circulating market cap,” also noted Dovey Wan, the founding partner of Primitive Crypto.

“As total Filecoin investments number floating is over 10b RMB (adding up sales number from all rigs manufactures and sales channel) ~1.5B in USD,” she added.

FIL is the 21st largest cryptocurrency with a $1.34 billion market cap while trading around $30.

The price of the token started uptrending in June this year, when it was trading under $7 only to climb above $56, on the anticipation of its mainnet going live in mid-October.

It was during this time, Coinbase Custody announced support for the cryptocurrency. Last week, Filecoin was also tradeable at Coinbase.com and on the San Francisco-based cryptocurrency exchange’s Android and iOS apps.

Last week, Coinbase also allowed people to earn up to $6 in FIL tokens through its Earn program.

Filecoin is a decentralized peer-to-peer file storage network that was initially released more than six years back. The project aims to let anyone store, retrieve, and host information, and for this service, FIL tokens are used as payment.

In other news, YUANLIQU, one of China’s largest Filecoin companies, has been reportedly frequently attacked by investors to defend its rights in its Shanghai office because “too many Filecoin mining machines are sold, but the profit design is confusing. The police have stepped in.”

Read Original/a>
Author: AnTy

Coinbase Now Allows Instant WIthdrawals via Mastercard & Visa Debit Card

San Francisco-based Coinbase is now allowing instant cash withdrawal through Mastercard and Visa debit cards.

“Don’t wait days for your cash when you need it now,” it says.

In a move towards the defining characteristics of crypto, transacting instantly, and anywhere, anytime that is curbed by the traditional banking system, Coinbase is offering instant withdrawals in about 40 countries.

These instant withdrawals will cost US customers a 1.5% fee (minimum $0.55), while for the UK and European customers, it is up to 2%.

Coinbase product manager Eddie Lo shared that customers in the US, UK, and Europe can withdraw funds with a linked Visa debit card with US customers allowed through Mastercard as well.

“The ability to easily spend, send, and receive crypto is critical to growing the cryptoeconomy, so we’ll continue building even more ways for our customers to access and use their crypto on Coinbase,” said Lo.

Using Visa to convert crypto balances into fiat means it can be spent at more than 60 million merchant locations while providing “faster, simpler and more connected experience” for Coinbase users, said Terry Angelos, SVP and global head of fintech, Visa.

Customers have the option to select between standard or instant withdrawal methods.

According to Sherri Haymond, executive vice president, Digital Partnerships at Mastercard, today’s digitally driven consumers want real-time payment options, and Mastercard will help them achieve “greater flexibility and convenience” in converting their cryptocurrency into fiat currency.

Also Read: Coinbase Pro to Pass the Rising Network Fees Onto The Customer

Read Original/a>
Author: AnTy

LedgerX Director Says the Company Is Failing Its Investors After Hostility Ensues

One of LedgerX’s board members and investors, Nicholas Owen Gunden, has made a withdrawal of his funds and thinks the company is failing their investors.

CoinDesk obtained a letter from Gunden to the LedgerX shareholders, the Ledger Holdings board, LedgerX LLC board and the Commodity Futures Trading Commission’s (CFTC) Inspector General. In this letter, the LedgerX former director says he’s worried about how the Bitcoin (BTC) derivatives provider is operating, as its founders were last month put on administrative leave:

“I am concerned with recent developments at the company, particularly the fact and manner in which the founders, Paul Chou and Juthica Chou, and particularly Juthica, have been barred from continuing their roles at the company.”

Gunden on the Disciplinary Panel

A designated contract market (DCM) application exhibit that LedgerX filed says Gunden joined the company’s members board of market participants in 2017. However, since last year, he has been on the disciplinary panel. Gunden expressed his concerns over 3 pages in the letter, explaining that ever since the founders got ousted, he had no one at LedgerX acting as a point of contact. He also says the company has a preferential treatment for some of its shareholders. The letter says,

“Just days after Paul and Juthica were placed on administrative leave, a petition was circulated at the office, which 75 percent of employees signed in support of retaining Paul and Juthica’s leadership. I have seen a copy of this petition and believe it to be legitimate.”

He also claims the company retaliated to the petition by firing two of its employees who were involved in filing it.

LedgerX Thought to no Longer Comply with Regulations

Furthermore, Gunden expresses his worries that LedgerX is no longer complying with regulations and that it doesn’t fulfil its fiduciary duties. No one from LedgerX had any intention to respond to Gunden’s comments yet.

Read Original/a>
Author: Oana Ularu