BTC-e, one of the oldest digital currency exchanges, remained offline on Thursday, July 27, 2017 after law enforcement officials alleged criminal acts by its owner, Alexander Vinnik. On Wednesday, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) announced a $110 million fine against BTC-e for facilitating crimes such as identity theft, ransomware fraud and public corruption, among other crimes, through its digital network. An additional $12 million fine was imposed against Russian-born Vinnik. Vinnik was arrested in Greece on Tuesday and the indictment was unsealed in California on Wednesday.
BTC-e was used by criminals who stole or extorted Bitcoin from the victims and converted the into traditional currency using U.S. dollar and Russian ruble-based bank accounts registered to shell companies. The exchange is accused of laundering more than $4 billion for criminals. Vinnik’s arrest followed the arrests in Europe and the U.S. of two large drug markets that used Bitcoin as their primary currency.
The indictment also revealed that hundreds of thousands of Bitcoins moved from Tokyo-based Bitcoin exchange Mt. Gox that were controlled by Mr. Vinnik. MT. Gox declared bankruptcy in 2014 after being hacked and losing more than 800,000 Bitcoins, some of which were laer recovered. 300,000 of the missing Bitcoins were moved from Mt. Gox to a different Bitcoin exchange and converted to traditional currencies that were deposited into Mr. Vinnik’s bank accounts. According to the New York Times, these Bitcoins would be worth approximately $800 million today.
The agencies also allege that BTC-e ignored he ‘know your customer’ (YC) laws in order to serve a criminal customer base.
The arrest and fines imposed this week should serve as a reminder that even though the digital currency market continues to heat up, sometimes that heat is a hint towards an underlying explosion – as with all trading, make sure to understand your risks before getting started and to use a recommended broker for all Bitcoin trading.
UFX.com, a leading Forex broker regulated by MiFID and IFSC in Belize, announced today its partnership with football superstar Andres Iniesta, who has signed on to become the latest brand ambassador. Iniesta has been playing with FC Barcelona since 1996, where he captained their Under-15 team. He currently the captain of the team’s Spanish Club and Spanish National Team as well as a valued player in central midfield.
Iniesta is widely considered one of the most respected Spanish football players in history, as well as one of the best midfielders of all time. He scred Spain’s winning goal in the 2010 World Cup and earned the title “Man of the Match.” Iniesta has earned an astounding 33 trophies to-date and is honored to have signed a 2-year contract with UFX.com, with an option to extend to a 3rd year. He is viewed by the broker as an important part of their online marketing campaign, the goal of which is to reach a wider global audience. Iniesta joins Mike Tindall, MBE, the brand’s UK ambassador and a rugby legend.
Dennis de Jong, Managing Director of UFX.com, said: “UFX is proud to announce our association with Andrés Iniesta. With our shared commitment to excellence and UFX’s devotion to our traders, I’m certain our new alliance with Andrés Iniesta will help take us all to the next level of success.”
Traders can get started with UFX for a minimum deposit of only $100 and can enjoy trading currencies, commodities, CFDs and dozens of other assets.
AvaTrade, a widely-respected global Forex broker headquartered in Dublin, Ireland, announced this week that it has added trading of three digital currencies to its already wide range of tradeable assets. The assets are Ethereum, Dash and Ripple. These currencies have shown a 1,000-4,000% increase in the past year, as has Bitcoin, the most famous digital currency, which AvaTrade also offers.
Digital currency trading is becoming more popular across the globe, though traders are advised to learn about the opportunities and risks before trading. AvaTrade joins a list of very few Forex brokers which provide these offerings. eToro is another broker that offers similar opportunities, though the primary difference between the brokers is that AvaTrade is primarily focused on individual trading while eToro’s trading platform is focused on social trading.
Learn more about AvaTrade in our comprehensive AvaTrade review to see if this broker is right for you, and make sure to practice trading digital currencies on a deme before moving to a live account so that you can get a sense for how they fluctuate.
In recent months the Capital Markets Board of Turkey, the Turkish regulator implemented dramatic changes on the way the industry functions. Among the changes were the new requirement for a minimum deposit of TRY 50,000 for any Forex trading account, and a maximum leverage of only 1:10, lower than even The United States’ NFA imposes. The Turkish Capital Markets Association has tried to ease these restrictions but has thus far been unsuccessful in reversing these unquestionably harsh restrictions.
Traders and Forex brokerages are concerned that the restrictions will cause lower trading volume and liquidity which will force traders to pay higher spreads and will thus perpetuate a spiral of lower trading volumes or will cause Turkish Forex traders to pursue trading offshore trading opportunities, which at this point have not yet been thwarted by Turkish regulators (and the question remains as to whether Turkish regulators will be able to control offshore trading activities for its nationals due to the open nature of the global currency markets).
There have been several Turkish Forex brokers who have paused their business activities in response to the regulatory changes, and other who have closed their doors entirely. But interestingly, there have also been several new, unregulated brokers located outside of Turkey’s physical borders that have begun recruiting Turkish Forex traders. Whether or not the Capital Markets Board will come after these brokers remains to be seen, but there’s no question that the shift in the industry has been significant. We will continue to monitor the situation and to report on the newest regulatory changes as they become relevant. We will also continue to monitor the activities of Turkish Forex brokers and to honestly review the remaining brokers that can accept Turkish traders. If you’re interested in trading Forex in Turkey don’t let the regulators scare you – just make sure that you know how the market functions before you get started.
HYCM, an FCA-regulated Forex broker has been granted CySEC licensing and regulation, expanding the company’s reach throughout Europe. The brokerage also has strong operations in the UK, Hong Kong, Cyprus and Dubai.
Stavros Lambrouris, the CEO of HYCM Europe, said about the achievement that “The CySEC authorisation marks a milestone in our history as part of our plans to expand our global operations. We now have a gateway to the European market, affirming our commitment to our European clients whilst rubber-stamping the company’s position as a global leader.”
Formerly known as HY Markets, HYCM is part of the Henyep Capital Markets Group. The brokerage offers a range of services for traders and has headquarters in the United Kingdom, Dubai and Kuwait. The company’s proprietary Prime Trader platform offers guaranteed stop losses, integrated pricing, trade screens and technical charts that are designed to provide a comprehensive trading experience for intermediate and advanced traders.
HYCM also offers its traders access to the popular MetaTrader 4 platform for both desktop and mobile traders.
FORT LAUDERDALE, Fla. - March 5, 2017 - DailyForex, a company that provides currency traders with updates and analysis about the currency markets, has announced today the launch of its website in Swedish and Polish. The Swedish and Polish websites offer timely market analysis directly from the DailyForex trading desk as well as reviews of Forex brokers that serve the Swedish and Polish markets.
The DailyForex website is also available in English, Arabic, Spanish, Italian, French, Turkish, German and Japanese. The addition of these languages results directly from the need for quality content and reliable information for native Polish and Swedish speakers who are usually forced to read information in English due to the lack of websites in their native tongues.
“It’s very exciting to be able to bring valuable information to a wider audience and to help people understand the currency markets properly,” said Adam Lemon, Chief Analyst at DailyForex. “When someone’s money is at stake it’s critical for them to understand trading strategies and principles properly and oftentimes critical details get lost in translation or aren’t understood completely when traders read articles in a secondary language.”
In addition to providing timely market analysis, each new language website offers a comprehensive ebook that traders can use to learn more about currency trading at their convenience as well as educational articles that were written by professional traders with the express goal of guiding traders at all levels to become profitable, long-term currency traders.
FXCM announced earlier this week that it will be changing its company name to Global Brokerage, Inc. and that its stock trading ticker will be changed to GLBR as of market opening on February 27, 2017.
The company also announced that its Director and Chairman of the company’s Board of Directors, Drew Niv, has resigned, and that he will be replaced immediately with Brian Reyhani as Chairman of the company’s Board of Directors. Mr. Niv will also relinquish his post as the company’s CEO, to be replaced by interim CEO Brendan Callan, who has been the CEO and President of European Operations subsidiary since 2010.
Jimmy Hallac, a Managing Director of Leucadia, the company that bailed out FXCM following the Swiss National Bank crisis in 2015, has been appointed as Chairman of the FXCM Group, after William Adhout resigned this week as Director of the Board.
Despite the changes in the company’s executive structure, FXCM (or Global Brokerage, Inc.) remains committed to putting its customers first and is expected to remain a leading global Forex brokerage. Commenting on the appointments, Leucadia’s CEO Rich Handler and President Brian Friedman commented: “We are very excited to have Brendan and Jimmy in their new roles. We believe that, under their leadership, FXCM Group will be able to continue to enhance and grow its global platform and customer offering. Brendan and Jimmy share our deep commitment to always putting clients first, maintaining and building a culture of transparency, communication and support among employees, and responding to the needs and goals of all relevant constituencies, including FXCM’s customers, employees, regulators, business partners and equity owners.”