tl;dr
Hidden Road, a prime brokerage firm backed by Citadel Securities, has ceased providing clients access to the third-largest crypto exchange, Bybit. The decision has led to disputes between the two companies over Bybit's know-your-customer and anti-money laundering requirements. Bybit has initiated a ...
Hidden Road, a prime brokerage firm backed by Citadel Securities, has ceased providing clients access to the third-largest crypto exchange, Bybit. The decision has led to disputes between the two companies over Bybit's know-your-customer and anti-money laundering requirements. Bybit has initiated a comprehensive compliance review of its prime brokerage business. This development comes amidst increased regulatory scrutiny of crypto exchanges following Binance's $4.3 billion settlement with US authorities over anti-money laundering and sanctions law violations. Bybit has refrained from commenting on specific inquiries related to counterparties, emphasizing its commitment to transparency. The situation has caused dissatisfaction among clients, impacting some users who preferred accessing crypto through trusted companies or brokers. Additionally, Bybit's market share has risen amid struggles faced by Binance and increased demand in the current bull market, with other crypto exchanges moving offshore due to stringent regulations in the United States.
Hidden Road informed clients about the decision to prevent access to Bybit a few weeks ago, as per a report by Bloomberg. The exact disagreement between the two companies over Bybit’s know-your-customer and anti-money laundering requirements remains unclear. Bybit has started a “comprehensive compliance review” of its prime brokerage business. Regulators have tightened scrutiny over crypto exchanges after Binance and CZ agreement with the US DOJ over violations of anti-money laundering and sanctions laws. After Binance’s historic $4.3 billion settlement with US authorities last year, the crypto exchange asked prime brokers including Hidden Road and FalconX to run more stringent checks, keeping US investors off the crypto exchange. “Bybit will not comment on specific inquiries related to counterparties at this time. However, the company is committed to transparency and will provide further updates as the review progresses,” a Bybit spokesperson said in a statement. While the issue at discussion only impacted some users, it has caused dissatisfaction among clients as users preferred to access crypto with trusted companies or brokers.
US regulators including the SEC accused Binance of allowing US-based customers to trade on the international exchange through offshore entities, without implementing necessary controls required by US law. Since lawsuits and investigations against Binance, Binance.US, and CZ, other crypto exchanges saw their market share rise. OKX and Bybit saw a massive rise in crypto trading, with an increase in demand in this bull market. Crypto companies and exchanges even moved offshore amid stringent regulation in the United States.
More about PayPal Holdings Inc
PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.
Industry: Trade & Services
Sector: Services-Business Services, NEC
Market Cap: $65.03 billion
PE Ratio: 15.54
Dividend Yield: None
Beta: 4
EPS: 28.0
Price/Book: 0.143
Shares Outstanding: 3.04 billion
Revenue: $30.43 billion
Net Income: $7.578 billion
Debt/Equity: 0.186
Current Ratio: 0.094