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5 Important Market Lessons Crypto Companies Can Take For Themselves

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5 Important Market Lessons Crypto Companies Can Take For Themselves

Here are the five most important lessons crypto companies can take for themselves

Marketing in cryptocurrency is as crucial as in any other industry. Cryptocurrency marketing is critical for businesses to grow and prosper. Blockchain has evolved from being merely a fintech-focused company to one that aids everything from supply chain management to content publishing. Currently, there are now thousands of crypto companies popping everywhere. Launching a basic marketing project for a business is different, but when it comes to a crypto marketing project, the leaders have to consider the competition and several other factors. In this article, we talk about the top 5 important market lessons/strategies for crypto companies.

2022 was an important year for crypto space. We will all remember the bankruptcies of major global companies: Luna, Celsius Network, FTX, BlockFi and others that left investors with massive losses. The bear market has dramatically affected the crypto economy and investors’ portfolios.

Just like in 2013 and 2017, the market moves in cycles. First, we had the crypto summer, where everybody was hyped about their profits and gains. Then came the crypto autumn, and investors started to see red in their portfolios. But investors’ portfolios started bleeding when the crypto winter got underway, and even some big reliable companies went underwater.

  • Leveraging Social Media: Social media is one of the most important marketing tools in the modern era. Certainly, it is most crucial for crypto marketing as well. Marketing teams use these platforms to connect with the global crypto community and pull the spotlight onto their projects. Apart from the traditional social media channels like Twitter, Facebook, Instagram, and Telegram, businesses can also employ BTT and Steemit for more exposure.
  • Press Releases: A good cryptocurrency press release takes extra effort on the team’s part, but it is always advisable to use popular news and PR services to amplify the news of any upcoming tokens or projects. There are several online press release websites, including some dedicated to crypto PR which allows publishing news about crypto coins.
  • Paid Advertising: Paid advertising is like pay-per-click advertisements that might draw a lot of attention from the public outside the crypto community as well. Search engines are the most popular choice for this kind of advertising. It takes little research and identifying appropriate keywords to associate with the projects. Facebook, Reddit, and Google are well-known for such services.
  • Using Airdrops: Airdrops used to be immensely popular earlier. They enable the free distribution of tokens to those who register for it. A wide distribution of tokens ensures that they have reached a wider range of audiences. Airdrops are pure cryptocurrency promotion stunts and are also an easy way to gain followers and users. It also helps in bringing liquidity to the token supply.
  • Email Marketing: Email marketing and databases offer much power because it helps companies reach their target audiences personally and increase more sales. It is a form of direct marketing that involves sending targeted emails about a recent project launch or crypto facility, or token launch to specific people, who are existing consumers or potential customers. Airdrops and other updates about the coins can also be conveyed through email marketing.

Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.

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Antoni Trenchev

Nexo Agrees To Pay $45 Million To SEC And State Regulators For Unregistered Offering Of Earn Interest Product

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Nexo Agrees To Pay $45 Million To SEC And State Regulators For Unregistered Offering Of Earn Interest Product

The cryptocurrency lender, Nexo, has agreed to pay $45 million to the U.S. Securities and Exchange Commission (SEC) and several state regulators after charges were levied against the firm for failing to register the company’s Earn Interest Product (EIP). Nexo detailed that the settlements are on a “no admit, no deny” basis and that the arrangement “closes all multi-year-long inquiries into Nexo.”

Nexo Pays $22.5 Million to SEC, $22.5 Million to Several State Regulators for EIP Offering

On Jan. 19, 2023, Nexo announced that it has agreed to settle with the U.S. Securities and Exchange Commission (SEC), the North American Securities Administrators Association (NASAA) and several state regulators, including the Office of the New York Attorney General, over an unregistered offering.

According to the SEC, around June 2020, Nexo started to offer the company’s Earn Interest Product (EIP), an interest-earning product that allows investors to earn interest on deposited crypto assets. The U.S. regulator said, “the EIP is a security and that the offer and sale of the EIP did not qualify for an exemption from SEC registration.”

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Nexo’s co-founder, Kosta Kantchev, responded to the settlement in a statement sent to Bitcoin.com News. “We are confident that a clearer regulatory landscape will emerge soon, and companies like Nexo will be able to offer value-creating products in the United States in a compliant manner, and the U.S. will further solidify its position as the world’s engine of innovation,” Kantchev said. SEC chairman Gary Gensler described the settlement in a different manner.

“We charged Nexo with failing to register its retail crypto lending product before offering it to the public, bypassing essential disclosure requirements designed to protect investors,” Gensler said. “Compliance with our time-tested public policies isn’t a choice. Where crypto companies do not comply, we will continue to follow the facts and the law to hold them accountable. In this case, among other actions, Nexo is ceasing its unregistered lending product as to all U.S. investors.”

Nexo co-founder Antoni Trenchev thanked the company’s legal team from Schulte Roth and Zabel LLP and said the Office of the New York Attorney General helped Nexo secure this “most favorable” outcome. “We are content with this unified resolution which unequivocally puts an end to all speculations around Nexo’s relations to the United States. We can now focus on what we do best – build seamless financial solutions for our worldwide audience,” Trenchev detailed in a statement on Thursday.

Nexo’s settlement with U.S. regulators follows the recent investigation into Nexo’s dealings initiated by Bulgarian law enforcement officials. The crypto lender, however, vehemently denies the allegations stemming from Bulgaria’s attorney general.

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Antoni Trenchev, Bulgaria’s attorney general, Bulgarian law enforcement, Compliance, crypto assets, crypto companies, cryptocurrency lender, Earn Interest Product, EIP, Gary Gensler, interest-earning product, investor protection, Kosta Kantchev, legal team, Nexo, Nexo SEC, NYAG, Office of the New York Attorney General, public disclosure, Regulatory Compliance, regulatory landscape, Schulte Roth and Zabel LLP, SEC, Settlement, state regulators, unified resolution, unregistered offering

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What do you think about the outcome of the Nexo settlement and its impact on the regulatory landscape for crypto companies in the United States? Share your thoughts about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: David Tran Photo / Shutterstock.com

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bank Of France Governor Calls For Mandatory Licensing For Crypto Companies

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Bank Of France Governor Calls For Mandatory Licensing For Crypto Companies

France has to adopt a licensing regime for crypto service providers, the head of the country’s central bank has suggested. According to the executive, the need to tighten regulatory oversight stems from the “disorder” in the industry throughout the past year.

Licensing Should Replace Registration for Crypto Firms in France, Governor Galhau Says

Banque de France Governor Francois Villeroy de Galhau has urged for subjecting crypto businesses to stricter regulatory requirements. Licensing must be introduced instead of the current registration in response to the recent volatility in the sector, he insisted.

De Galhau also thinks that Paris should not hesitate but act even before the upcoming EU regulations take effect and make it obligatory for Digital Asset Service Providers (DASPs) to obtain licenses from the French government, Bloomberg reported.

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Around 60 platforms working with cryptocurrencies have so far registered with the Autorité des Marchés Financiers (AMF), France’s financial markets authority, including global players such as Binance, the world’s largest crypto exchange.

Licenses are still optional and there are no licensees yet among the digital asset service providers registered in France. Speaking to representatives of the financial sector on said Thursday, Villeroy de Galhau stated:

All the disorder in 2022 feeds a simple belief: it is desirable for France to move to an obligatory licensing of DASP as soon as possible, rather than just registration.

Digital asset service providers which want to be granted a license are required by the AMF to comply with certain standards in terms of organization, available financial resources and business conduct, the report notes.

The governor’s proposal comes after last summer key EU institutions and member states reached an agreement on the new Markets in Crypto Assets (MiCA) legislation and achieved consensus on a set of new anti-money laundering rules for the industry.

The regulatory package is expected to enter into force in 2023 but businesses will have another 12 to 18 months to comply with it. Brussels also wants to oblige platforms processing crypto transactions for EU residents to report to tax authorities in the Union.

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Bank of France, Banque de France, Crypto, crypto companies, crypto providers, Cryptocurrencies, Cryptocurrency, France, french, Governor, licensees, licenses, licensing, registration, Regulations, requirements, rules

Do you think France will introduce a licensing regime for crypto companies before MiCA enters into force? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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$50 million fine

Coinbase Agrees To $100 Million Settlement With New York Financial Regulator For Anti-Money Laundering Violations

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Coinbase Agrees To $100 Million Settlement With New York Financial Regulator For Anti-Money Laundering Violations

Coinbase has agreed to pay a $100 million settlement with the New York Department of Financial Services (NYDFS), according to a consent order signed by the NYDFS superintendent Adrienne Harris on Jan. 4, 2023. New York’s financial regulator said compliance problems were detected and the exchange’s anti-money laundering controls were inadequate from 2020 through 2021.

New York Regulator Fines Coinbase $100 Million for Anti-Money Laundering Compliance Issues

The crypto exchange and custodial firm Coinbase (Nasdaq: COIN) has agreed to a $100 million settlement with New York’s top financial regulator NYDFS for failing to enact proper anti-money laundering controls in 2020 and 2021. Coinbase has agreed to pay a $50 million fine and another $50 million will go towards applying necessary anti-money laundering (AML) background checks.

“Coinbase lacked sufficient personnel, resources, and tools needed to keep up with these alerts, and backlogs rapidly grew to unmanageable levels,” the consent order signed by superintendent Adrienne Harris details. “By the end of 2021, Coinbase had a backlog of unreviewed transaction monitoring alerts grew to more than 100,000 (many of which were months old), and the backlog of customers requiring enhanced due diligence exceeded 14,000.”

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The compliance investigation started in 2020 and the alleged lack of background check controls started in 2018. Coinbase agreed at the time to hire an independent examiner to make sure AML and know-your-customer (KYC) guidelines were followed. However, compliance problems persisted and the New York regulator decided to take action in 2021. “We have been very outspoken about illicit financing concerns in the space. It is why our framework holds crypto companies to the same standard as for banks,” superintendent Harris said.

Meanwhile, Coinbase’s stock COIN jumped on the news rather than decline, as shares increased by 6.74% on Wednesday. Coinbase also responded to the settlement on its blog and it noted that it has “committed to $50 million in compliance program investments over the next two years.” The exchange’s blog post message about the NYDFS settlement continued:

We view this resolution as a critical step in our commitment to continuous improvement, our engagement with key regulators, and our push for greater compliance in the crypto space – for ourselves and others.

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$50 million fine, 100 million, 2018, 2020, 2021, Adrienne Harris, AML, AML background checks, anti-money laundering, anti-money-laundering controls, banks, COIN, Coinbase, Compliance, compliance problems, consent order, crypto companies, crypto exchange, custodial firm, enhanced due diligence, financial regulator, illicit financing, inadequate, independent examiner, Investigation, Know-Your-Customer, KYC guidelines, Nasdaq: COIN, New York regulator, NYDFS, Settlement, Stock, transaction monitoring

What do you think about Coinbase settling with the New York financial regulator for lack of compliance controls? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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