CCData has unveiled its latest Exchange Benchmark report, which has become the industry standard for assessing the risk associated with digital asset exchanges since launch.

PayPal successfully secured registration with the U.K.’s Financial Conduct Authority (FCA) as a cryptocurrency service provider, with the registration enabling “PayPal UK Limited” to provide crypto-related products and services to users in the country.

Nasdaq-listed cryptocurrency exchange Coinbase has recently launched its long-awaited cryptocurrency futures trading services for U.S.-based retail investors, allowing them to trade futures contracts equivalent to 1% of a Bitcoin and 10% of an Ether.

Top stories in the Crypto Roundup today:

• CCData’s Latest Exchange Benchmark Showcases Elevated Exchange Standards
• PayPal Gets FCA Approval to Offer Crypto Services in the U.K.
• Coinbase Launches Crypto Futures Trading for Retail Investors in the U.S.
• SafeMoon Founders Accused of Fraud in Federal Lawsuit

CCData’s Latest Exchange Benchmark Showcases Elevated Exchange Standards

Yesterday, CCData unveiled its latest Exchange Benchmark report, the industry standard for assessing the risk associated with digital asset exchanges. Launched in 2019, the report encompasses dedicated methodologies to evaluate all major digital asset trading venues, covering over 150 spot, derivatives, and decentralized exchanges.

Given past concerns surrounding trading volumes and increased regulatory stringency following the collapse of FTX, identifying reliable trading platforms is now more important than ever.

CCData’s latest report highlights the improved standards seen across the industry, with several centralised exchanges improving their grades in the Exchange Benchmark. Seven exchanges achieved AA status, which was previously only held by Bitstamp, reflecting the positive changes and improved operational processes adopted by exchanges, reducing risk for investors.

Despite the improving quality of centralized exchanges, examining 1% market depth for BTC across these platforms shows liquidity has been slowly downtrending since the start of the year.

Security aspects of centralized exchanges also remains a concern, as hackers look to exploit exchanges that employ weak security measures. In 2023, users lost about $117 million in funds due to centralized exchange hacks.

DEXs are also not immune to security breaches, the report found that 44% of them had been hacked before. In the last 12 months, 8 DEXs suffered from attacks and more than $1,000,000 was lost by 17 of the 22 hacked DEXs.

PayPal Gets FCA Approval to Offer Crypto Services in the U.K.

PayPal successfully secured registration with the U.K.’s Financial Conduct Authority (FCA) as a cryptocurrency service provider, with the registration enabling “PayPal UK Limited” to provide crypto-related products and services to users in the country.

Before offering cryptocurrency-related products and services in the UK, businesses need to get approval from the FCA and follow anti-money laundering rules. PayPal’s registration comes months after it temporarily halted cryptocurrency purchases for British customers over “new regulatory requirements.”

The FCA’s cryptocurrency registration regime was introduced in 2020, with the launch of the Fifth Money Laundering Directive (AMLD5), which meant that firms looking to operate in the U.K. must notify the FCA and receive approval.

PayPal’s inclusion in the register means it can also validate its crypto-related promotional materials while adhering to the latest marketing standards. These new standards block unregistered firms from inviting U.K. citizens to invest in crypto, while any marketing material must be approved by the FCA.

Coinbase Launches Crypto Futures Trading for Retail Investors in the U.S.

Nasdaq-listed cryptocurrency exchange Coinbase has recently launched its long-awaited cryptocurrency futures trading services for U.S.-based retail investors, allowing them to trade futures contracts equivalent to 1% of a Bitcoin and 10% of an Ether.

In August, Coinbase received approval to offer Bitcoin and Ethereum futures to retail traders, and is now the first U.S.-regulated business offering the product. Cryptocurrency futures account for an estimated 75% of the market’s trades, and allow traders to go long and short to manage their risk appropriately.

This new feature aligns with Coinbase's strategy amid growing optimism in the crypto market that is being partly driven by hopes a spot Bitcoin exchange-traded fund (ETF) will be approved in the U.S.

There's also a notable surge in institutional interest in crypto options, which recently reached a significant $20 billion.

SafeMoon Founders Accused of Fraud in Federal Lawsuit

Federal prosecutors have accused the creators of the SafeMoon token, which once saw a 19,000% rise amid a crypto trading frenzy, of using millions of dollars of investors’ funds to buy lavish properties and cars.

In a lawsuit, U.S. Department of Justice and Securities and Exchange Commission alleged the creators of the token defrauded investors and misappropriated millions of dollars’ worth of the cryptocurrency.

SafeMoon soared in the 2021 crypto bull run after launching through a giveaway of 100 billion tokens that each traded for $0.00000001. The founders were arrested this week in different states, with one remaining at large.

State of the Crypto by Top Tier Exchange Volume

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