ByBit Launches $100M Support Fund For Institutional Traders

Crypto derivatives exchange Bybit has launched a new support fund to help institutional traders access liquidity in the wake of the FTX collapse an event that triggered a fresh wave of panic selling across the digital asset space.

The support fund, valued at $100 million, is available to market makers and high-frequency trading institutions struggling with financial or operational difficulties following the collapse of FTX earlier this month, Bybit disclosed on Nov. 24. The funds will be distributed to eligible applicants at a 0% interest rate.

To be eligible, institutional traders must be active on Bybit or other exchanges. The maximum amount distributed per applicant is $10 million and the funds must be used for spot and Tether Once the second-largest cryptocurrency exchange in the world, FTX filed for Chapter 11 bankruptcy on Nov. 11 after a bank run exposed the firm for being insolvent. A scandal ensued after it became apparent that CEO Sam Bankman-Fried was comingling funds between FTX and sister firm Alameda Research, which resulted in an $8 billion hole in FTX’s balance sheet. As Cointelegraph reported, FTX’s 50 largest creditors are owed more than $3 billion.

Several companies exposed to FTX have reported financial and liquidity constraints due to its collapse. Bitcoin lender BlockFi is considering bankruptcy, while the Digital Currency Group-backed Genesis Global Trading recently halted new loan originations.

Uzbekistan issues first crypto licenses to two local ‘crypto stores’
Starting from January 2023, only licensed cryptocurrency firms will be allowed to provide cryptocurrency trading services to Uzbek citizens.

As Uzbekistan prepares to adopt a new cryptocurrency framework in 2023, the Uzbek regulators have started issuing regulatory approvals to local crypto service providers.

The National Agency for Perspective Projects (NAPP), Uzbekistan’s major cryptocurrency market watchdog, has issued the nation’s first crypto licenses, according to an official announcement released on Nov. 17.

The licenses officially authorize the offering of cryptocurrency-related services by two “cryptocurrency stores,” including Crypto Trade NET LLC and Crypto Market LLC.

According to the information from the NAPP’s electronic license register, both Crypto Trade NET and Crypto Market are based in Tashkent. The data also refers to Kamolitdin Nuritdinov as Crypto Market’s single founder and shareholder. Behzod Achilov is also the single founder and shareholder of Crypto Trade NET.

None of the platforms appear to have an operating website at the time of writing.

According to the announcement, the NAPP has licensed the two companies based on the presidential decree issued in April 2022, which establishes rules for crypto assets circulation in Uzbekistan.

“Crypto shops are designed to provide easier access for citizens to buy or sell crypto assets,” the statement said, adding:

“The agency urges citizens to be as vigilant as possible and not to use the services of electronic platforms that have not received a license to operate on the territory of the Republic of Uzbekistan in the prescribed manner.”
The news comes shortly after the government of Uzbekistan blocked a number of major global crypto exchanges due to the absence of a proper license to offer crypto trading services.

The block affected crypto giants like Binance and Huobi, while users were reportedly still able to access their websites with the help of VPN services. After announcing the measures in August 2022, the NAPP has since apparently deleted that statement.

The latest licenses come amid Uzbekistan actively preparing to adopt a new crypto regulatory framework in a few months. Starting from Jan. 1, 2023, the government of Uzbekistan will allow the provision of crypto services to Uzbek citizens only by licensed cryptocurrency firms.

Source: cointelegraph.com