Korean FTC to Order 12 Exchanges to Revise User Contract

Exchanges will have to review their users' agreements and make changes to them
05 April 2018   675

The Fair Trade Commission of the Republic of Korea (FTC) has obliged 12 local crypto exchanges to terminate contracts with customers that users agreed during registration at trading sides. This is reported by Yonhap.

According to representatives of the FTC, the so-called merger agreements, in which the weak party either agrees to all conditions, or refuses to cooperate, may have a negative impact on the safety of users. Such contracts are often concluded with leasing, insurance, mortgages, etc., but they do not provide the necessary protection for clients of crypto-exchange trading platforms.

In particular, existing contracts restrict customers in withdrawing funds from deposits. In addition, methods that use exchanges, forcing users to incur financial losses at the time of the end of cooperation with the exchange.

Thus, the trading platforms will have to revise their user agreements and in make changes in it.

In March, South Korean regulators announced an audit of the activities of banks working with crypto exchanges.

HKEX to Hesitate with Bitmain IPO Application Approval

Watchdog is very careful due to unfavorable situation in the market
17 December 2018   72

The Hong Kong Stock Exchange (HKEX) is in no hurry to approve applications for initial public offering (IPO) from leading Chinese cryptocurrency companies due to an unfavorable situation in the market, CoinDesk reports.

For the year, Canaan Creative, Ebang and Bitmain, the mining equipment manufacturers, submitted applications for IPO.

The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two. The HKEX doesn’t want to be the first exchange in the world to approve this and have one die on them. 

Anonimous Source of Coindesk

IPO applications must be approved by HKEX and the Securities and Futures Commission (SFC). After they are allowed to be considered at the hearings on listing, which, in particular, determines the nominal stock price and the volume of their offer. If the applicant does not appear at the hearing after six months from the date of application, the application expires. Within three months, the initiator of the IPO can recover the application that was withdrawn from consideration.

As previously reported, in November, the Canaan Creative application expired. Ebang has two more weeks so that HKEX does not freeze the request, and Bitmain has three months.

Right now, I don’t think that any of them could make it to the listing hearing. If either one doesn’t approve it, you can’t make it to the listing hearing.

Anonimous Source of Coindesk

HKEX also pays special attention to financial statements and cryptocurrency savings of companies. According to the source CoinDesk, the exchange carefully ensures that the initiators of the IPO regularly disclose information about the losses.

Note, according to Bitcoinist, the losses of the mining company Bitmain in the third quarter of 2018 were estimated at $ 740 million.

Meanwhile, a Twitter account BTCKING555 published information that Bitmain's cryptocurrency savings had decreased to $ 80 million.

However, CoinDesk sources also added that, perhaps, HKEX simply delays approval of applications due to uncertainty.