Beaxy exchange shuts down after SEC lawsuit

On the date of last updating this review the 24-hour trading volume was as low as USD 1,612 vis-a-vis  USD 19,676 on 18 September 2021, according to Coinmarketcap.com. Most traders in the crypto world today carry out their trades via desktop (around 70% or so). To find a reliable exchange where you can start an account, just use our Exchange Filters and we’ll help you find the right platform for you.

He has a keen and vested interest in cryptos involving decentralized backend exchanges, payment processing, and power-sharing. Beaxy was an innovative cryptocurrency exchange that offered lucrative rewards and strong trading features. This is coupled with advanced trading features and low fees, making it an all-around great exchange.

  • In its lawsuit, filed Wednesday at the Northern District of Illinois, the securities regulator also accused the platform of failing to register as a broker and a clearing agency.
  • The exchange, which launched in 2019, was a fiat-to-crypto trading platform aimed at blending traditional finance with digital assets.
  • The exchange enforces strict KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures to meet global standards.
  • While this complaint seems pretty clear, as ConsenSys’ Matt Corva pointed out, part of the issue with registration is figuring out the asset aspect of it all.
  • So far all Coinbase has said is that the notice lists “an undefined” number of its listed cryptocurrencies, and that its Earn, Prime and Wallet products potentially violate securities law.
  • The network fees vary from day to day but are roughly 15-20% of the global industry average BTC-withdrawal fee.

Beaxy reached a settlement with the SEC that saw them agree to pay fines totaling $165,200, cease operations, and shut down their platform. In March 2023, the platform was shut down following a U.S. We’ll highlight a great alternative for the defunct exchange. “This case serves as yet another reminder to crypto intermediaries that their business models must comply and adapt to the law, not the other way around.” By offering these services, Peterson acted as an unregistered dealer.

While the charges by the SEC portrayed the exchange as an entity that knowingly and consistently violated securities and financial laws, Beaxy claimed that it has been working with the regulator since its launch. It further charged founder Artak Hamazaspyan with conducting an unregistered offering in which he raised $8 million from selling Beaxy tokens (BXY). In its lawsuit, filed Wednesday at the Northern District of Illinois, the securities regulator also accused the platform of failing to register as a broker and a clearing agency. Securities and Exchange Commission (SEC) filed charges against it for operating an unregistered securities exchange. Digital asset trading exchange Beaxy has shut down after the U.S. In addition to those charges, the agency is charging market makers operating on the Beaxy platform as unregistered dealers.

To deposit funds on Beaxy, click on the “My wallets” tab at the top right of the screen, and select your preferred currency. Once the team has approved you, you become a standard user and can withdraw up to 30 BTC worth of cryptos per day from any combination of their wallets. The team members have assisted multiple conferences and are actively engaging with their users on social media.

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This means that no other crypto exchange will have access to this technology. The platform aims to provide traders with a comprehensive service that appeals to both newer traders and more experienced participants. Referral programs, low trading fees, 24/7 support and options to customize the trading experience are also positive.

Beaxy

  • This means that no other crypto exchange will have access to this technology.
  • One of the best features is the calculator used to calculate the profits and losses of certain trades that you’re thinking about making.
  • The SEC said is litigating its charges against Hamazaspyan for securities fraud and against Hamazaspyan and Beaxy Digital for the unregistered BXY offering.
  • There are several crypto exchanges you can use to trade digital assets.
  • BXY tokens are the main in-site currency and their value is to be set by the open market.
  • It further charged founder Artak Hamazaspyan with conducting an unregistered offering in which he raised $8 million from selling Beaxy tokens (BXY).

They only charge the network fees when you execute a transaction. This exchange, however, is on the totally opposite side of the spectrum. Because once you’re in, you can’t get out without paying withdrawal fees. Today, however, the industry average is 0.213% for takers and 0.16% for makers, so Beaxy is a bit above average when it comes to taker fees. The maker-taker model normally encourages market liquidity by rewarding the makers of that liquidity with a fee discount.

Beaxy Trading fees

Carefully consider whether investing in crypto-assets is suitable for you in light of your financial condition and risk tolerance. Exchange of crypto-assets for funds; 2. There are exchanges out there that charge low trading fees and then hit you with high withdrawal fees. Yes, prior to its shutdown, the platform had a partnership with the Gunbot trading bot, which allowed Gunbot users to connect to the exchange at no extra cost. Fortunately, alternative exchanges like Kraken provide better benefits for crypto traders.

More than 500 digital assets can be bought, sold, and traded on the platform. One of the world’s most trusted and secure crypto exchanges with low fees and advanced trading tools. “The Beaxy Platform also had the ability to trade crypto asset securities against its own customers, which gives it the means and the motive to put itself on the winning side of each trade, without regard to obligations that apply to registered broker-dealers,” the filing said. The next few paragraphs then contrasted Beaxy with the traditional securities world, noting that a national securities exchange would not “take possession or control” of an asset being traded, while clearing agencies handle settlement and broker-dealers.

How to Get Started on Beaxy

There are several crypto exchanges you can use to trade digital assets. The exchange, which launched in 2019, was a fiat-to-crypto trading platform aimed at blending traditional finance with digital assets. “Platforms like the Beaxy Platform require users to deposit with the platform all of the crypto asset securities that they traded there, resulting in the platform possessing, and even becoming the legal owner of such assets and thus a central securities depository,” the filing said. Beaxy aims to become a leader in the crypto trading space and is best suited to people with a good understanding of trading digital assets and using exchanges. If you’re thinking about trading crypto, you’ll need a crypto wallet to keep your digital assets safe. Several safe crypto exchanges offer secure trading, rewarding programs, and advanced tools for every level of trader.

Other Centralized Exchanges

The order panel and trade history are placed on the left, while the right is reserved for the order book. There are both day and night modes available, making the trading panel easy on the eyes and presenting information and execution panels in a clean and easy-to-read manner. With over 100 trading pairs, Beaxy will have a maximum capacity of 22.5M tx/s. However, like everything else, for this to really shine, you need actual trading volume. They are planning to provide penetration, cloud infrastructure, white box, black box, and many more tests to insure Beaxy’s security.

Beaxy Trading View

“This type of arrangement means that an unregistered crypto asset platform like the Beaxy Platform could use assets in their possession and control for its own purposes, thereby exposing investors to significant and at times undisclosed risk of loss of their assets. The U.S. Securities and Exchange Commission filed a lawsuit against crypto exchange Beaxy last week, alleging it offered an unregistered securities sale through a 2018 initial coin offering, and that it operated as an unregistered securities exchange, broker-dealer and clearing agency. You can only trade your BXY tokens for this token and when you receive it you can lock them up for a certain time, which will get you a percentage of your trading fees back. 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. You can find more information on the risks involved with trading or holding crypto-assets here.

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Beaxy suspended operations on March 28 “due to the uncertain regulatory environment surrounding our business,” according to the cryptocurrency exchange’s blog. President Donald Trump’s push toward friendly crypto policies produced a CFTC-led effort to encourage leveraged spot crypto trading, starting with Bitnomial. So far all Coinbase has said is that the notice lists “an undefined” number of its listed cryptocurrencies, and that its Earn, Prime and Wallet products potentially violate securities law. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. The platform is set out in a way that makes it easy for new users to get acquainted. A user will need to hold tokens for at least a month to earn a 15% discount.

One more thing worth noting is that Beaxy is in the final stage of discussions with Optiv, a cybersecurity giant. The team also declares that requirements on the platform are according to PCI-DSS and ENISA safety requirements. The exchange uses two-factor authentication (2FA) and is compatible with both Google and Authy Authenticators. Security measures are one of the most important factors you should be looking at when choosing an exchange.

While this complaint seems pretty clear, as ConsenSys’ Matt Corva pointed out, part of the issue with registration is figuring out the asset aspect of it all. It doesn’t look like Beaxy or its executives settled the charges with the SEC, but the fact the exchange is shutting down suggests this will be the kind of case the SEC beaxy review may look to for a potentially easy win ahead of the Coinbase lawsuit. You’re reading State of Crypto, a CoinDesk newsletter looking at the intersection of cryptocurrency and government. It is not an offer to buy or sell any security, product, service or investment. Please make sure to do your own research, make educated financial decisions and consult your Financial Advisor. CaptainAltcoin.com does not offer any sort of financial or investment advice.

As of 2023, the platform is not available for crypto trading. They also alleged that the exchange raised $8 million through an unregistered offering of its native BXY token. Beaxy was a fiat-to-crypto exchange with an innovative loyalty program that provided users with multiple ways to earn rewards.

Why Kraken Crypto Exchange Is The Perfect Alternative

Among its allegations, the SEC said Beaxy operated as an unregistered exchange, a broker and a clearing agency. As Beaxy is still building its reputation and developing its user base, it offers an attractive fee structure and various incentives, which should prove successful in attracting users to the platform and improving the validity of the BXY token. The exchange also features the most advanced interface, data compilation, trading tools, and security measures to date.