Bitcoin (BTC) climbed sharply above the $29,000 a coin barrier as investors continue to shrug off regulatory crackdowns in the U.S. and Canada. However, regulatory crackdowns on industry giants have heightened in recent weeks, raising concerns over whether it will affect demand for risk in the crypto markets. Crypto asset trading platform Beaxy.com is the latest to be targeted by the U.S. Securities and Exchange Commission.
U.S. Crypto Exchanges Crackdown
The SEC is on crypto trading polyform for allegedly failing to register as a national securities exchange broker. It also faces allegations for operating as a clearing agency in the U.S illegally. Artak Hamazaspyan, the platform’s founder, is also facing charges for raising $8 million in unregistered offering. In addition, the founder is also facing claims for allegedly misappropriating at least $900,000 for personal use.
The crackdown on the Beaxy trading platform comes on the heels of the U.S. Commodities Futures Trading Commission lodging a lawsuit against Binance. The exchange and its co-founder Changping Zhao are accused of breaking trading rules by courting clients in the U.S. Coinbase is another exchange under regulatory scrutiny in the U.S. for violations of securities rules.
Canada Cryptocurrency Crackdown
The U.S. is not the only country ramping crackdowns on digital assets and related platforms. In Canada, law enforcement agents could soon be able to freeze and seize cryptocurrencies as part of a new law. Under the ‘Liberals’ 2023 budget plan, authorities can freeze cryptocurrency accounts linked to criminal activities.
The crackdown on cryptocurrencies as part of the budget plan first emerged last year as the government used executive orders to monitor and freeze such assets. The crackdowns came amid reports that some people were using the assets to finance and fuel demonstrations against the government.
While trying to protect itself from backlash, the Canadian government insists the new laws will also help protect Canadians from the risks posed by crypto assets. For instance, financial institutions must disclose their exposure to volatile cryptocurrency markets.
While the regulatory crackdown in the U.S. and Canada was expected to dampen investors’ sentiments on digital assets, that has not been the case. Bitcoin has continued to its rally after an explosive start to the new year. The flagship cryptocurrency is already up by more than 70% for the year outperforming Nasdaq 100 which is up by about 16%.
