The regulator also alleges that the exchange’s founder, Artak Hamazaspyan, used $900,000 for personal use, including gambling. In addition, Beaxy has a smaller number of supported cryptocurrencies than leading exchanges such as Binance and Huobi. However, the team are planning to roll out a number of additional features that will help to establish the exchange as a viable alternative to current industry leaders.
Users can also earn a portion of trading fees by locking up PLS tokens and onboarding friends onto the platform via the referral program. Beaxy is a new cryptocurrency exchange that aims to get ahead of its competition by making improvements across the board, and equipping crypto traders with a completely modernized approach to buying and selling digital assets. Beaxy will offer the first all-in-one exchange with fiat trading pairs and a wide range of cryptocurrencies, making trading much easier for both newcomers and experienced traders Last but not least, users can benefit from the Loyalty Rewards and Referral program provided by Beaxy.
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Once you download Hummingbot https://traderoom.info/beaxy-cryptocurrency-exchange-review/ and create an account, you’ll have to connect your Beaxy exchange account through the API and then set the strategies and parameters you want to use to begin your automated trading. The trading fees for Beaxy are also relatively low, with a maker fee of 0.1425% and a taker fee of 0.2375%. Last week saw Ripple XRP social mentions skyrocket, along with its price – up 21% in the preceding seven days.
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- The exchange was previously registered in Saint Kitts and Nevis, but it is now owned by Windy Inc. (a Delaware corporation) and Beaxy’s headquarters today are in Chicago, Illinois.
- Most traders in the crypto world today carry out their trades via desktop (around 70% or so).
- “Beaxy’s ambition to build a top of the line cryptocurrency exchange made them an obvious partner.
- To make this vision come true, the trading platform has to deliver on its initial promise.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said that exchanges, brokers, and clearing agencies all had different registration requirements adding that We allege that Beaxy and its affiliates performed the functions of an exchange, broker, clearing agency, and dealer without registering with the Commission and complying with clear, time-tested rules governing those activities. Securities and Exchange Commission(SEC) pressed charges against the company along with its founder for failing to register the exchange and running an unlicensed broker, and clearing agency.
Its native coin (BXY) and related loyalty program, which offered up to 12% APY, were its most notable features. The Securities and Exchange Commission charged cryptocurrency platform Beaxy and its executives for allegedly failing to register as an exchange, broker and clearing agency — the latest crypto-related move by the U.S. securities regulator. In summary, we think the Beaxy exchange and trading platform would serve most crypto traders well, but it is far from the best.
This left previous users of the platform searching for a viable alternative. “When a crypto intermediary combines all of these functions under one roof—as we allege that Beaxy did—investors are at serious risk.” Executives Nicholas Murphy and Randolph Bay Abbott were also caught up in charges via a company they managed called Windy, which maintained Beaxy. Windy, through the Beaxy Platform, violated securities laws because it didn’t register as an exchange, a clearing agency or a broker, the SEC alleges.
In response to the lawsuit, the SECsaid Windy, Murphy, Abbot and Peterson have agreed to shut down thecryptocurrency trading platform, refund all customers and destroy “any and allBXY in Windy’s possession.” However, the SEC in a pressstatement released on Wednesday said it charged Artak Hamazaspyan, the crypto exchange’s Founder, andhis company, Beaxy Digital Limited, for raising $8 million in anunregistered offering of the Beaxy token (BXY). The securities regulatorfurther alleged that Hamazaspyan “misappropriated at least $900,000 forpersonal use, including gambling.” Cryptocurrency exchange, Beaxy,has shut down its operations afterover three years oflaunching into the market.
- The Beaxy platform also includes services such as a trading bot API integration, a tinder-style swiping trading app, and free trading signals.
- The regulator claims that after raising $8 million through the unregistered securities, founder Hamazaspyan was pushed to resign in October 2019, and Nicholas Murphy and Randolph Bay Abbott took over.
- Current regulatory guidance requires crypto providers to register as money service businesses (MSBs) with FinCEN and meet individual state registration requirements.
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The trading platform also attracted the attention of investors and raised $3 million with an initial coin offering last year. The exchange also revealed that it has a total of $8 million in its funding chest. Beaxy today announced the launch of its much-anticipated cryptocurrency exchange platform. Beaxy Exchange offers it’s traders the best loyalty reward programs that allow them to earn up to 12% APR, get rebates of 30% on trading fees, and trade or own more of their favorite cryptocurrencies. Securities and Exchange Commission (SEC) charged the company and its founder Artak Hamazaspyan with operating an unregistered exchange and brokerage, the agency said in a Wednesday statement.
Fortunately, alternative exchanges like Kraken provide better benefits for crypto traders. Beaxy was an innovative cryptocurrency exchange that offered lucrative rewards and strong trading features. Several safe crypto exchanges offer secure trading, rewarding programs, and advanced tools for every level of trader. More than 500 digital assets can be bought, sold, and traded on the platform.
However, there are naturally people out there that want to do it from their smart phone as well. Below are a few of the advantages the exchange itself promotes on its website. Among these, security, performance, low trading fees and 24/7 support are the ones we deem most important. Naturally, referral programs and options to customize the trading experience are also positive.
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According to the SEC complaint, Hamazaspyan embezzled $900,000 of the funds for personal use, which included gambling. In a press release on Wednesday (March 29, 2023), the SEC stated that Beaxy functioned as an exchange, a broker, and a clearing agency without registering all three services. This platform is not only available from your desktop, you can also access it via your mobile. Most traders in the crypto world today carry out their trades via desktop (around 70% or so).
Conclusion: Beaxy Review
Beaxy noted that the exchange cooperated with the SEC for more than two years but said the uncertain regulatory landscape made it difficult for the platform to keep functioning. Trading has been halted, and users are advised to withdraw their assets within 30 days. On the date of last updating this review the 24-hour trading volume was as low as USD 1,612 vis-a-vis USD 19,676 on 18 September 2021, according to Coinmarketcap.com. Otherwise, it will be difficult for Beaxy to attract new trading users to its platform.
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Its unique Trender service, however, could make it a good stepping stone for new traders, so it’s a platform still worth considering if you’re just getting started in your trading journey. This is not to say either service is terrible, but they certainly aren’t good compared to other bot trading platforms or cryptocurrency exchange VIP/reward systems. The Beaxy trading interface is more than satisfactory, with low trading fees and considerably more order types than most other crypto exchanges, but it is severely lacking in markets. Beaxy is a Chicago-based cryptocurrency exchange platform where users can easily buy, sell, store, and trade a wide range of crypto assets and fiat currencies. As Beaxy is still building its reputation and developing its user base, it offers an attractive fee structure, and the BXY token allows users to reduce their fees by up to 50%.
It claimed to have “provided information, data, and interviews to assist regulators in whatever manner we could.” Following the lawsuit, Beaxy has announced that it’s winding up its operations. In a blog post, the exchange revealed it would suspend all services immediately “due to the uncertain regulatory environment surrounding our business.” Beaxy reached a settlement with the SEC that saw them agree to pay fines totaling $165,200, cease operations, and shut down their platform.
Some Twitter users supported the SEC’s move after evaluating the exchange’s various features. The regulator claims that after raising $8 million through the unregistered securities, founder Hamazaspyan was pushed to resign in October 2019, and Nicholas Murphy and Randolph Bay Abbott took over. Through their firm Windy, Inc., they operated Beaxy until its shutdown this week. While the charges by the SEC portrayed the exchange as an entity that knowingly and consistently violated securities and financial laws, Beaxy claimed that it has been working with the regulator since its launch.
The SEC also charged several market-makers that operated on the Beaxy platform as unregistered dealers. The founder of Beaxy Exchange was charged with raising $8 million in an unregistered offering of the Beaxy token (BXY) and misappropriation of those funds. Why Traders are Flocking to Beaxy Exchange Beaxy Exchange is a next-generation trading platform that bridges the gaps between cryptocurrency and legacy finance. Beaxy lists dozens of assets, has a global fiat on and off-ramp, unparalleled security, and low trading fees. Beaxy offers a feature-rich platform that was built from the ground up with traders in mind.
Figures from LunarCrush showed that when market and social performance are combined, XRP emerged as the number one ranking digital asset. Keep in mind, in total the exchange has just $39,011 in volume (~4.72 BTC). A week later, it started to become clear that the exploit likely left Beaxy insolvent. As investigative crypto-journalist John Galt writes in his piece Beaxy — Incompetent. BeInCrypto reported in August of a major exploit on Beaxy which resulted in an artificial 40% crash on the XRP/BTC trading pair.