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<h1>Crypto Industry Developments: A Weekly Recap</h1>
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<p>Here's a summary of the most significant events in the crypto space over the past week.</p>
<div class="wp-block-text-wrappers-keypoints article_keypoints">
<ul class="wp-block-list">
<li>UK's FCA flags Bitfinex as an unauthorized firm.</li>
<li>PayPal secures UK license for cryptocurrency services.</li>
<li>BitGo gains regulatory approval in Germany for digital asset custody.</li>
<li>Russia sees the issuance of a digital asset linked to a diamond.</li>
</ul>
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<h2 class="wp-block-heading"><strong>Financial Conduct Authority (FCA) Flags Bitfinex</strong></h2>
<p>The UK's Financial Conduct Authority (FCA) <a href="https://www.fca.org.uk/news/warnings/bitfinex-bitfinexcom">has cautioned</a> the public against Bitfinex, adding them to a list of companies not permitted to promote financial services within the UK without explicit authorization.</p>
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<p><em>"For the last four months, our team has been actively communicating with the FCA. We have taken steps to satisfy their stipulations, including informing all our UK users of the imposed restrictions,”</em> — according to <a href="https://blog.bitfinex.com/announcements/fca-statement-2/">a company statement</a>.</p>
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<p>Specifically, Bitfinex has restricted UK-based users from accessing certain website features.</p>
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<p><em>"These restrictions affect sections like Bitfinex partner pages, <a href="https://forklog.com/en/news/what-is-staking-and-how-to-make-money-from-it"><em>staking</em></a> options, credit/debit card functionalities, Lending Pro, <a href="https://forklog.com/en/news/bitfinex-launches-peer-to-peer-lending-platform"><em>Bitfinex Borrow</em></a><em>, user guides for buying crypto, and details on the mobile app,”</em> —</em> the exchange stated.</p>
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<h2 class="wp-block-heading"><strong>PayPal Receives Green Light for Crypto Services in the UK</strong></h2>
<p>PayPal UK Limited received authorization from regulators as both an e-money institution and a consumer credit provider. Furthermore, they are now registered as a business that handles the sale of crypto assets. As <a href="https://www.fnlondon.com/articles/paypal-crypto-uk-fca-approval-amid-tightening-regulations-20231101">reported</a> by a company representative, this allows the migration of UK resident accounts from PayPal Europe to this newly authorized British entity.</p>
<p>PayPal is the fourth organization granted a license this year, following Interactive Brokers, <a href="https://forklog.com/en/news/bitstamp-joins-uk-regulators-register">Bitstamp</a>, and <a href="https://forklog.com/en/news/komainu-wins-uk-licence-to-operate-as-crypto-custodian">Komainu</a>.</p>
<h2 class="wp-block-heading"><strong>HashKey Debuts Retail-Focused Crypto App</strong></h2>
<p>Hong Kong-based HashKey Exchange <a href="https://www.theblock.co/post/260140/hong-kong-crypto-exchange-hashkey-launches-app-targets-retail-users">has unveiled</a> a mobile application tailored for retail investors, planning to introduce a native <a href="https://forklog.com/en/news/governance-tokens-vs-utility-tokens-whats-the-difference"><em>utility token</em></a> in 2024.</p>
<p>The app will also cater to professional investors, in alignment with local regulations set by the Securities and Futures Commission of Hong Kong (<span data-descr="Securities and Futures Commission of Hong Kong" class="old_tooltip">SFC</span>).</p>
<p>The company states that it has been actively engaging with regulators since July, supplying supplementary information during multiple review cycles.</p>
<p>HashKey <a href="https://forklog.com/en/news/hashkey-launches-bitcoin-and-ethereum-trading-in-hong-kong-for-retail-investors"><em>initiated Bitcoin and Ethereum trading</em></a> for retail users on August 28th.</p>
<h2 class="wp-block-heading"><strong>BitGo Secures BaFin License for Cryptocurrency Custody</strong></h2>
<p>Germany’s Federal Financial Supervisory Authority (BaFin) <a href="https://www.coindesk.com/policy/2023/11/01/bitgo-granted-german-crypto-custody-license-by-bafin/">has authorized</a> BitGo to operate as a custodian for digital assets within the country.</p>
<p>The company has been operating under regulatory oversight since 2019.</p>
<p>BitGo obtained a trust license from the <span data-descr="New York State Department of Financial Services" class="old_tooltip">NYDFS</span> <a href="https://forklog.com/en/news/bitgo-the-custodian-obtains-a-new-york-trust-license">in 2021</a>.</p>
<p>In August, BitGo concluded a funding round of $100 million, bringing its valuation to $1.75 billion.</p>
<h2 class="wp-block-heading"><strong>Digital Financial Asset Backed by Diamond Issued in Russia</strong></h2>
<p>«Expobank» has introduced Digital Financial Assets (DFA), with their value tied to the market price of a diamond, according to sources at both the bank and Masterchain, the blockchain platform used for the issuance, as reported by <em>Vedomosti</em>.</p>
<p>A total of 5,000 DFAs were created, each representing 1/5,000 of the diamond’s value (approximately 10 million rubles), with each DFA priced at 1,975 rubles. These assets are exclusively available for purchase by qualified investors.</p>
<h2 class="wp-block-heading"><strong>Exchange Updates</strong></h2>
<p>OKX exchange <a href="https://www.okx.com/ru/learn/okx-proof-of-reserves-ranked-highest-quality-among-major-exchanges">has released</a> its 12th monthly proof-of-reserves report, indicating reserves of $12.5 billion in Bitcoin, Ethereum, and Tether’s USDT <a href="https://forklog.com/en/news/what-is-tether-usdt"><em>USDT</em></a>.</p>
<p>The exchange has increased its crypto reserves by $1.3 billion over the past month.</p>
<p>The report encompasses 22 digital assets, including USD Coin (USDC), Dogecoin (DOGE), XRP from Ripple, and Solana (SOL), with the exchange affirming that customer funds are backed by over 100%.</p>
<p>The exchange uses snapshotting and a Merkle tree system to verify balances and protect against unauthorized access.</p>
<p>Bitget <a href="https://www.bitgetapp.com/ru/proof-of-reserves">also released</a> a monthly reserve report, demonstrating an asset backing ratio of 199%. Data from <a href="https://coinmarketcap.com/exchanges/bitget/">CoinMarketCap</a> on November 3rd shows that Bitget’s total reserves exceed $1.54 billion.</p>
<p>Platform representatives also highlighted the creation of a $300 million fund to provide additional user protection, covering potential losses due to account compromises, asset loss, or other unexpected events.</p>
<p>Bybit has announced the listing of Memecoin (MEME) and TokenFi (TOKEN). Participation in related promotions requires completion of a <span data-descr="Know Your Customer" class="old_tooltip">KYC</span> process and fulfillment of certain criteria.</p>
<p>More from ForkLog:</p>
<ul class="wp-block-list">
<li>Coinbase <a href="https://forklog.com/en/news/coinbase-launches-crypto-futures-trading-for-u-s.-residents">has launched crypto futures trading for US residents.</a></li>
<li>The SEC has opened an investigation into PayPal's stablecoin.</li>
<li>MicroStrategy has increased its bitcoin holdings to 158,400 BTC.</li>
<li>Reports indicate Binance will discontinue its Advcash fiat gateway.</li>
<li>Tether reported reserves of $72.6 billion in US Treasuries.</li>
<li>Reports suggest Jump Trading will act as market maker for BlackRock's ETF.</li>
</ul>
<h2 class="wp-block-heading"><strong>Weekend Reading Recommendations</strong></h2>
<p>ForkLog explores the potential implications of spot Bitcoin <a href="https://forklog.com/en/news/what-is-a-cryptocurrency-etf">ETF</a> approval, examining its influence on Bitcoin's price and the wider reaction from the collective investment sector.</p>
<p>In News+, we cover the jury verdict in the case against FTX founder Sam Bankman-Fried and its reception within the industry.</p>
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