Crypto Exchange Shuts Down Amid SEC Charges
These rates are in line with most industry standards, especially as starting rates. These rates may be reduced by increasing your user level, which is accomplished by a combination of maintaining an average daily trading volume and/or (based on the table below) holding a certain quantity of Beaxy Coin (BXY) tokens on the exchange. Curv eliminates the need for private keys, replacing them with multi-party computation (MPC) protocols that enable transactions to be securely signed in a distributed way to eliminate any single point of failure. In short, the digital assets are under bulletproof protection on Beaxy thanks to Curv’s approach to security. Beaxy Exchange is an up-and-coming fiat-to-crypto exchange that offers a great loyalty program for those who hold their proprietary token Beaxy Coin (BXY). Rewards include up to 12% apy and the potential to earn a piece of the fees the exchange makes everyday.
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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. The SEC also charged several market-makers that operated on the Beaxy platform as unregistered dealers. The founder of Beaxy Exchange was charged with raising $8 million in an unregistered offering of the Beaxy token (BXY) and misappropriation of those funds.
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The Beaxy team place security at the forefront of their priorities and the security protocols within the exchange are extremely effective and leave your account protected in many ways. The exchange uses two-factor authentication (2FA) and is compatible with both Google and Authy Authenticators. When a crypto intermediary combines all of these functions under one roof—as we allege that Beaxy did—investors are at serious risk. The blurring of functions and the lack of registrations meant that regulations designed to protect investors were not followed or even recognized by Beaxy.
How to Set Up Your Beaxy Account
- Beaxy’s customer support also includes a massive Help Center where you can find tens of valuable articles explaining how exactly to use the exchange.
- If you are able to afford to hold a half million BXY then you have no trading fees to worry about.
- The platform provides 24/7 support to their users with live chat and an AI bot, which is especially valuable when a critical issue arises.
- They also offer a mobile app for iOS and Android for those interested in trading on the go.
The statement also stated that the SEC accused Hamazaspyan of misappropriating at least $900,000 for personal use, including gambling. The integrated price charts are placed in the center of your browser, and at the top of the screen, there is a quick summary of important information such as the bid/ask spread, percentage change and volume updated in real-time. The order panel and trade history are placed on the left, while the right is reserved for the order book. You can find additional trading pairs at a handy drop-down menu, including a search bar for ease-of-access. This technology can support hundreds of thousands of trades per second with less than a millisecond of latency, which is very fast when compared to other exchanges. However, like everything else, for this to really shine, you need actual trading volume.
Beaxy Crypto Exchange Shuts Down After the SEC Charged The Firm and Its Founder
- The blurring of functions and the lack ofregistrations meant that regulations designed to protect investors were notfollowed or even recognized by Beaxy,” Grewal explained.
- While they are a relatively new exchange, they are attempting to rival giants such as Binance and KuCoin with their rewards programs.
- However, your funds will only be deposited to the wallet set as default, and you can then transfer freely between your internal wallets.
- There is also an option to earn a portion of trading fees by locking up PLS tokens and onboarding friends onto the platform via the referral program.
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. According to the SEC, Windysigned an agreement with Peterson and his companies in December 2019 to providemarket marking services for BXY. In May 2020, one of the firms signed asimilar agreement for a different digital asset. The team at CryptoVantage.com only recommends products and services that we would use ourselves and that we believe will provide value to our readers.
Windy Inc. took over the platform in 2019 after the founder misappropriated money, according to the SEC, and managers Nicholas Murphy and Randolph Bay Abbott maintained Beaxy for trading crypto assets “that were offered and sold as securities,” the SEC said. So the agency is also accusing them of violating securities law by operating an unregistered exchange, broker and clearing agency, though the platform was described as defunct in another SEC case last year. The fees on the Beaxy exchange are fixed at 0.2% of whatever you deposit, however, the BXY token allows users to reduce their fees by up to 50%. There is also an option to earn a portion of trading fees by locking up PLS tokens and onboarding friends onto the platform via the referral program. There is also another way to get discounted trading because with the staking program, you will have the option to lock up some of your BXY tokens to receive a discounted trading fee. Launched in June 2019, Beaxy is a new cryptocurrency exchange that aims to get ahead of its competition by offering unmatched security, performance, and superior tech.
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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. “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. The parties, without admittingor denying the allegations, have also agreed to pay various amounts inpenalties to the SEC. 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.
The platform aims to provide traders with a comprehensive service that appeals to both newer traders and more experienced participants. I agree to receive newsletters from CryptoVantage and accept the data privacy statement. Currently, Beaxy does not compare to Binance, they offer nowhere near the same number of assets, and their volume is not even close. They are attempting to become as popular as Binance with their Beaxy Token trying to capture some of the same attention as Binance Coin (BNB) has.
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On the hand, Beaxy posted a blog on its website saying that the exchange had suspended its operations citing the uncertain regulatory environment surrounding our business. Beaxy further stated that it had committed to cooperation with the authority for more than two years by providing all the required information, data, and interview. We allege that Beaxy and its affiliates performed the functions of an exchange, broker, clearing agency, and dealer without registering with the Commission and complying with clear, time-tested rules governing those activities. Securities and Exchange Commission(SEC) pressed charges against the company along with its founder for failing to register the exchange and running an unlicensed broker, and clearing agency. The SEC’s action against Beaxy comes a week after the regulator charged crypto entrepreneur Justin Sun and three of his companies with engaging in wash trades with the Tronix (TRX) token. Additionally, the financial watchdog charged eight American celebrities for promoting TRX and/or BitTorrent tokens without disclosing that they were paid to do so.
He has a keen and vested interest in cryptos involving decentralized backend exchanges, payment processing, and power-sharing. It’s also important to note that Beaxy will have an exclusive partnership with OneTick, its flagship software, a comprehensive suite for time-series data management, real-time event processing, and analytics. In addition, the SEC charged two managers, Nicholas Murphy and Randolph Bay Abbott, for operatingBeaxy Exchange as an unregistered exchange, broker and clearing agency throughWindy Inc. According to the regulator, Murphy and Abbot took over the reins ofBeaxy Exchange in October 2019 after convincing Hamazaspyan to resign as aresult of the unregistered sale of BXY and the misappropriation of customerfunds. 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.
As a result, the SEC is accusing them, in addition to Hamazaspyan, of violating securities law by running an unregistered exchange, broker, and clearing agency, despite the platform being termed defunct by the SEC in a different case last year. “When a crypto intermediarycombines all of these functions under one roof — as we allege that Beaxydid — investors are at serious risk. The blurring of functions and the lack ofregistrations meant that regulations designed to protect investors were notfollowed or even recognized by Beaxy,” Grewal explained.
After Beaxy accepting the Terms and Conditions and clicking “Sign Up”, you will automatically receive a confirmation email with a verification link.