Fear, insecurity and suspicion, also known as RD&D, which has had some of the largest cryptocurrency exchanges since October, has intensified over the past week – and had nothing to do with the US presidential election.
MyCrypto CEO Taylor Monahan said on Twitter, citing a Forbes report released on October 29, that Binance had set up its US division, Binance.US, as a regulatory tool, citing single rumors the government carried out supporting a major Hubei. executive.
R&D, which has long chased cryptocurrencies, is often defined as misinformation deliberately spread to put a competitor at a disadvantage – for example, to lower the price of a competitor’s stock or currency. It could also be the result of government actions, such as the arrest of the co-founder of BitMEX and the former CTO on October 1, or reports of the arrest of the co-founder of OKEx by Chinese police in early October. This raises speculation: Who caused the research and development and what was the motive behind this party?
For example, Changpeng Zhao, Chairman of Binance, described a nice document describing the exchange’s proposed 2018 plan to circumvent Bitcoin (BTC) regulations by setting up a US company with a “false interest in compliance,” as reported by RD&D, and added: Why The document is prepared by a Binance employee (current or former). ”
In any case, it appears that the R&D counter has increased over the past week, especially as the Huobi rumors were accompanied by reports of large withdrawals of Bitcoin on the Singapore Exchange. For example, Boxmining creator Michael Gu announced that he will remove the credit from Huobi “until this RD&D is cleared.”
Global pressure to curb cryptocurrency exchanges?
But was there anything behind all these events? Some have speculated that regulators around the world – in the United States, China and elsewhere – are now targeting centralized cryptocurrency exchanges, which is the cause of all suspicion and uncertainty about these largely unregulated companies.
CoinGecko co-founder and CEO Bobby Ong doubts such a plan exists. He also told Cointelegraph, “The timing of all these R&D incidents appears to be coincidental” when the allegations were brought against BitMEX as a result of a lengthy investigation.
For his part, Monahan agreed that the regulatory action could indeed be a major source of concern for the latter; But again, they can only be rivals spreading rumors and insinuations about each other. The Huobi Token (HT) was hit when bad news broke and dropped hundreds of dollars on November 2. Monahan shared with Cointelegraph:
“Interestingly, over the last month we have seen a lot of confirmed and circulating rumors about regulatory actions on the leading futures / derivatives exchanges. However, we may now only see an increase in research and development because these exchanges have their own codes – BNB, OKB, HT etc. RD&D, usually reserved for currencies / tokens, is now linked to the exchange itself.
Is the likelihood of implementation increased?
But maybe there is some way to all this ‘nonsense’. Sirene Johnston, executive director of the Compliance and Regulation Program at the University of Hong Kong, who has written about regulating cryptocurrency exchanges, suggested to Cointelegraph that the global regulatory pendulum is swinging toward stricter controls:
“In Hong Kong, the government has proposed placing all cryptocurrencies under the supervision of the Securities and Exchange Commission, using fear of money laundering as a starting point. Legislation in the European Union and the United States has been proposed that directs crypto assets into existing regulatory coffers. Actions indicate that the winds have changed direction. Certainly – [while] increased regulatory requirements increase enforcement potential. ”
“It looks like the regulators have gotten more fruitful in recent months,” OKEx CEO Jay Howe told Cointelegraph, particularly regarding the legal issues surrounding the major exchanges. “This is not surprising, however, as certain steps were expected from regulators such as the US CFTC and the UK Financial Conduct Authority.”
Regarding all the concerns, insecurities and uncertainties that seem to be swirling around central exchanges lately, Howe said, “The market is largely retail-driven and continues to be heavily influenced by news and rumors,” adding:
“With the rise of DeFi, there has definitely been more research and development and setbacks against centralized exchanges, and I think that’s more of what we’re seeing from a massive increase in regulatory action.
It is worth noting that OKEx itself became the subject of RD&D discussions after a Chinese news agency reported on October 16 that the founder of the exchange, Mingxing Xu, had been questioned by Chinese police, after which the Malta Stock Exchange suspended withdrawals.