Gemini Wants to Trade Crypto Securities

The broker-dealer license appeal will be sent to Financial Industry Regulatory Authority, but experts believe the plans implementation can take some time
03 July 2019   929

Gemini Bitcoin Exchange will apply for a broker-dealer license, which will allow it to operate as an alternative trading system and offer clients securities on the blockchain. It is reported by CoinDesk.

The appeal will be sent to the Financial Industry Regulatory Authority (FINRA).

Gemini has previously entered into a partnership with Harbor, a startup specializing in real-world assets tokenization, which gives institutional investors the opportunity to purchase securities using Gemini Dollar (GUSD).

However, now, as source familiar with the operating activities of Gemini said, the exchange plans to launch trading in similar instruments on its own platform. It is assumed that this will be securities from Harbor, as well as from other projects.

Implementation of these plans, however, may take quite a long time, so FINRA is in no hurry to approve applications for obtaining a broker-dealer license from cryptocurrency companies. Currently, the organization is considering about 40 such applications, while some companies have been waiting for 14 months to complete.

In April, Harbor raised $ 28 million in funding from a number of venture capital investors, including Andreessen Horowitz and Pantera Capital. In November of the same year, the company launched a platform for distributing security tokens, starting with the sale of shares in The Hub residential complex in South Carolina.

Bitfinex to Pay Tether First $100M Of $700M Debt

In late April, the NY Prosecutor General’s Office charged Bitfinex with the fact that, having suffered a loss of $ 850M, it took money from affilated Tether
03 July 2019   916

Bitfinex Cryptocurrency Exchange announced the beginning of the repayment of debt to its affiliated company Tether. As part of the process, Bitfinex transferred the first $ 100 million to Tether’s account.

In late April, the New York Prosecutor General’s Office charged Bitfinex with the fact that, having suffered a loss of $ 850 million, it concealed this fact, partially using the funds of its affiliate issuer of stablecoin Tether to cover the damage.

Later it turned out that these funds were frozen in the bank accounts of the Panamanian processing service Crypto Capital. Nevertheless, the exchange assured users that it is actively cooperating with the relevant departments to restore access to money.

In May, as part of the ongoing proceedings, it was confirmed that Bitfinex borrowed $ 700 million from Tether. Now the exchange has begun to return these funds.

Bitfinex made this payment in fiat wired to Tether’s bank account. This amount was not yet due to be paid to Tether under the facility, but Bitfinex has made the prepayment based upon its financial position at the end of the second quarter of 2019.

Also on July 1st, Bitfinex fully prepaid all interest accrued under the loan facility to Tether up to the end of day on June 30, 2019, also in fiat.
 

Bitfinex Team

At the same time, Bitfinex and Tether do not stop trying to stop the proceedings initiated against them, insisting that the authorities in New York do not have the appropriate authority or sufficient evidence against them.

According to CoinDesk, by July 8, the prosecutor's office may protest the position of the defendants. If this happens, Bitfinex and Tether will have time until July 22 to submit a response, after which the parties will have to meet again in court on July 29.