Brian Armstrong, CEO of Coinbase, the third-largest crypto exchange in the world, published the exchange’s token listing process on Saturday. In an X post, Armstrong noted that the move aims to bolster transparency of Coinbase’s listing process. He wrote:

“…listings are free and merit-based. Every asset is evaluated against the same standards.”

How tokens are listed on Coinbase

According to the blog post titled ‘A Guide to the Digital Asset Listing Process at Coinbase,’ there are five key steps:

The first step involves submitting an application. Project developers have to fill an online questionnaire that asks for key information, from whitepaper and tokenomics to team background and source code.

Based on the submission, Coinbase assesses business factors, including market demand, community traction, and the technical requirements of integrating it with the exchange.

The application then goes through a thorough review process by the legal, compliance, and technical security team of Coinbase. From the legal perspective, Coinbase mainly analyses whether a token will potentially be considered a security.

The exchange also investigates the token’s on-chain activity and token distribution to ward off consumer safety risks and financial crime.

Additionally, the exchange also runs a security check for technical vulnerabilities by reviewing the contract code, design, and operational risks. In case of new blockchains, Coinbase evaluates aspects like technical design, consensus mechanism, network resilience, and governance model.

The exchange keeps the token issuers apprised of the review process via emails or phone calls. Once the token is approved by the Core review teams, it starts trading on Coinbase once the exchange completes technical integration.

The blog post notes:

“Our [listing] process is thorough because our standards are designed to protect customers, support healthy markets, and give projects the strongest possible foundation for long-term success.”

Token listing timeline and rollout

In general, Coinbase takes about a week to conduct due-diligence of a token. Once the token is approved, the exchange takes around two weeks for the technical integration to enable trading.

The post noted that in general, the exchange takes less than 30 days from review to list a token. However, the timeline can be significantly shorter or longer, based on factors such as the token’s complexity, whether its network is supported, the responsiveness of the project team, and the time it takes to complete the technical requirements for trading and custody.

Furthermore, listing priority and timeline also depends on Coinbase’s assessment of the token’s demand, traction among holders, community sentiment, and track-record of the team.

Coinbase also ensures that after a token is approved for listing, it is rolled out in a phased manner. First, Coinbase allows users to only deposit tokens to build liquidity.

Then, limit orders are collected for at least 10 minutes to determine an indicative opening price for the token. The auction concludes either with a matching trade or with an opening quote in case of no match.

This is followed by trading state, where the token can start with limit only orders or full trading.

Common hurdles and reasons for token listing delay

There are three major issues that contribute towards the delay of a token’s listing.

Firstly, the regulatory risk profile of a project increases if its public statements do not clearly state the token’s purpose, governance rights, and real-world usage. Projects that claim their token is ‘going to the moon’ without evidence to back the claim, for instance, face challenges with listing their token on Coinbase.

Secondly, from the blockchain security perspective, Coinbase evaluates the degree of centralization and single points of control to assess risk.

Lastly, projects that submit incomplete applications face delays in the review process. Failure to inform Coinbase of any major changes in the project during the review can also cause delays.

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The Securities and Exchange Commission (SEC) delayed decisions on nine crypto exchange-traded fund (ETF) applications on Aug. 18.

The delays extended review periods for products related to digital assets, spanning Bitcoin, XRP, Litecoin, and Dogecoin. The reason is likely the agency’s work to establish a comprehensive digital asset framework.

The postponements affect Truth’s spot Bitcoin and Ethereum ETF, CoinShares’ spot Litecoin ETF, and multiple XRP ETF applications from 21Shares, CoinShares, Bitwise, Canary, and Grayscale. 

The SEC also delayed 21Shares’ staking proposal for its spot Ethereum ETF and Grayscale’s spot Dogecoin ETF application.

Except for Truth’s filing, the delayed products all have final deadlines for October.

Framework strategy is a priority

Bloomberg ETF analysts Eric Balchunas and James Seyffart suggested in July that the delays reflect the SEC’s strategy to establish approval criteria before greenlighting individual applications. 

Seyffart stated that this “might be the SEC’s way of stalling these things from becoming ETFs before they develop a digital assets ETF framework.”

He added that the framework would create “some sort of generic listing standard for what digital assets are allowed in an ETF wrapper and what criteria they’ll use.” 

The approach mentioned aims to replace the current case-by-case review process, which requires each crypto ETF to secure a Commission order before listing.

The SEC has been reportedly collaborating with US exchanges since July on generic listing standards for token-based ETFs that would eliminate individual rule-change requests.

Generic approach

The proposed system would allow ETF sponsors to bypass the customary Form 19b-4 process when underlying tokens meet predetermined criteria.

Under the proposed framework, sponsors would submit registration statements on Form S-1, observe standard 75-day review periods, and list products once waiting periods conclude. 

Market capitalization, on-exchange trading volume, and daily liquidity rank among the metrics under discussion.

Seyffart called the generic standard approach “very good news for the crypto ETF space,” arguing it would offer “clear rules of the road.” 

Balchunas described the concept as “what everyone wants, what makes sense, and what we think will happen.”

As a result, the first altcoin-related ETF approvals might likely start only in October.

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The Shiba Inu community is in its most defining moments as it kicks off its first election that will decide an interim president and set the course for the $7 billion token ecosystem’s future. With the fifth “Shib Year” now underway, some community members see the election as a significant step toward decentralization, with debates over leadership, transparency, and accountability heating up across the community. 

What’s Happening Inside the Shiba Inu Community

In an August 4 post titled ELECTIONS, Shiba Inu’s lead developer, Shytoshi Kusama, announced that the community will choose a new lead visionary and councils for each DAO, calling it “the true birth of a network state.” The election announcement has brought long-standing frustrations to the surface, with some community members accusing Kusama of poor leadership, lack of transparency, and keeping too much control in the hands of a few. 

Related Reading

Woof Swap, a vocal voice in the Shiba Inu ecosystem, has been especially blunt, calling for leadership with “actual ability, not just visibility.” They wrote, “We don’t need an incompetent president,” and stressed that leaders must have the skills, strategy, and resources to guide the project forward.

Other long-time supporters, like Shiba Germany, have raised concerns about broken promises, such as the unfulfilled goal of activating 100 validators and onboarding a billion users. There is also unease about projects like SHY and POE, seen as distractions from Shiba Inu’s core goals, arguing that the election will only work if it leads to leaders aligned with Ryoshi’s original vision of transparency, decentralization, and shared responsibility.

How The Shiba Inu Major Electoral Process Will Work

The Shiba Inu elections will unfold in three main phases. First, open nominations will allow any member of the community to apply. The top ten nominees will move on to a debate stage, with live or recorded sessions hosted across platforms. A second vote will narrow the field to three finalists, who will then face a final vote one week later. The winner will serve as interim president until the position is formally approved, no later than four months after the start of “Shibizenship.”

Related Reading

Voting will follow a “1 token = 1 vote” system with any SHIB ecosystem token – SHIB, BONE, TREAT, or LEASH. Kusama argues that the voting system is fair by giving more influence to those with the most invested in the ecosystem’s success, as they have the most at stake. But the Shiba Inu Foundation will still hold veto power, a point that has fueled claims the process is more “controlled democracy” than complete decentralization.

The interim president will coordinate the transfer of power, carry out the vision laid out in the “Shib White Paper,” establish the first congress of four DAO councils, and manage the community’s billion token economy. 

Logistical details, including the exact dates for nominations, debates, and voting, will be announced soon. With millions of holders worldwide and billions in value on the line, the outcome of these elections will shape Shiba Inu’s direction for years to come.

Featured image from Unsplash, chart from TradingView.com

Alex Mashinsky, the former CEO of Celsius, has agreed to surrender all rights to assets tied to the collapsed crypto lender.

According to newly filed court documents, Mashinsky and entities associated with him, including AM Ventures Holdings Inc., Koala1 LLC, and Koala3 LLC, will be excluded from any future distributions under the Celsius bankruptcy plan.

The filing stated:

“All Claims asserted by, or scheduled by the Debtors on behalf of, (1) Mr. Mashinsky, (2) AMV, (3) Koala1, and (4) Koala3 are withdrawn, disallowed, and shall receive no distribution under the Plan.”

The document also stated that the funds freed from the forfeiture should be redistributed to affected customers and creditors.

This development marks another chapter in Celsius’s ongoing bankruptcy proceedings, which began in mid-2022 following the platform’s abrupt suspension of withdrawals.

So far, Celsius has returned roughly $2.53 billion to users. Approximately 70% of creditors have received some form of repayment, but the process has been lengthy and complex.

Celsius bankruptcy

Celsius halted user withdrawals in June 2022, locking up nearly $4.7 billion in customer funds, amid the market instability driven by LUNA’s collapse in the prior month.

The company was forced to file for Chapter 11 bankruptcy in July 2022, triggering investigations into its financial practices and the conduct of its leadership.

Mashinsky was arrested in 2023 over several fraud-related charges and later pleaded guilty as part of his legal proceedings. Prosecutors claimed that he misled investors about the company’s financial health while offloading personal holdings of Celsius’s native token. They added that his actions gave users false confidence even as the platform was nearing collapse.

Last month, Mashinsky was sentenced to 12 years in prison, avoiding the 20-year term prosecutors had pursued. His defense argued that a longer sentence would amount to life imprisonment for the 59-year-old.

His downfall joins a growing list of disgraced crypto leaders, including FTX’s Sam Bankman-Fried and Terra’s Do Kwon, who were once industry icons whose collapses have reshaped public and regulatory perceptions of digital assets.

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June 17th Why Bitfinex’s KYC process sets the gold standard for the crypto industry

Do you lend you money to a stranger who emailed you from Blue?

that’s right.

But that’s the reality of the internet in 2025. Every day you deal with people you have never met from every corner of the world. Many are legal. Some people know exactly how to hide behind layers of fake information.

In fact, as Bitrace Crypto Crime Report 2025 points out, crypto-related losses are already at the top $505 million this year63% are tied to phishing, lag pull and social engineering for hacking and the rest. Many of these crimes share one thing in common. They exploit the fact that they know or do not exist on the customer (KYC) process on a platform where compliance is not a priority.

Bitfinex not only follows global compliance standards, Sets the gold standard. The KYC process is designed to protect users, prevent fraud and ensure long-term access to a mature financial system.

At Bitfinex, KYC is the backbone of trust. All strangers are verified here. Thousands have gone through our verification process just like you. Everything to protect you!

Bitfinex verifies all strangers

KYC is not about deficits. It’s about responsibility. Without it, criminals could slip through the cracks using Throway Accounts as LaunchPads for money laundering and fraud.

While some platforms boast “instant access” or “no KYC required,” the underlying reality is that users are at high risk and conversions for revenue are often high. When combined with high-stakes trading competitions, generous bonuses, and a fast tracking KYC process that prioritizes speed over thoroughness, the heavy hype (often not ignored) list is all part of the drive for large-scale acquisitions.

According to a 2020 survey by blockchain analytics firm Cyphertrace, in 2019, roughly 56% of crypto exchanges still had KYC. That same year, the criminal did the laundry Estimated $3.38 billion Bitcoin and other cryptocurrencies

Many exchanges often prioritize fast user acquisition and retail volume at every cost, at the expense of safety. Bitfinex is always choosing the route of longevity, transparency and compliance.

Does everyone trust a bank that has allowed millions of people to move without checking who they are? We don’t do that either.

Whether it’s a bank, intermediary, or crypto exchange, all trusted financial platforms require identity verification. This is the standard for the best financial practices. Bitfinex has set the same financial standards for crypto exchanges.

This is how strong KYC looks like

The Bitfinex process is clear and structured, but intentionally thorough.

• Basics and verification
  Upload your ID, check your address and phone number, and take a quick selfie.
  This gives you access to crypto deposits, withdrawals, and spot transactions.
• Interim verification
  Add a second ID, proof of address and fill in a short financial format.
  Perfect for when you want a higher limit or unlock a margin transaction.
• Complete verification
  Include a bank statement and some additional details.
  This is necessary if you want to deposit or withdraw Fiat.

This is bank grade onboardingbillions are built for users who travel daily and operate in a market where security is not an option.

Like trusted financial institutions, they don’t offer sophisticated tools or global liquidity to anyone without checking who is behind the screen.

A platform worthy of professional traders

Celebrating her as she is registered with the British Virgin Islands (BVI). Original Bitcoin exchange As our heritage, Bitfinex has been serving professional traders and institutions since 2012. That legacy is not built on hype. It is built on trust. It happened because security, regulations and infrastructure were taken seriously long before it became industry standards.

Today, I’m pretty much holding Bitfinex 403,000 BTCit’s worth it $47 billionI’ll make it The second largest bitcoin reserve In a central exchange. This is a signal that the largest holders of the space continue to choose Bitfinex to move, manage and protect large capital.

On-chain data confirms Bitfinex’s appeal to whales containing a $400 million ETH transfer From two dormant wallets for 2024. These are long-term actors who choose infrastructure built for serious capital.

The KYC process is intentionally strict to ensure that not only meets global regulatory standards, but also ensures that all customers on the platform are protected. The KYC process is refined, audited and stress-tested to meet where the industry is, as well as where it is headed.

And that’s why Bitfinex continues to attract The most serious participants in the spacepeople who think and act intentionally in the long term.

Trust is gained and not fast tracking

The thorough KYC process is a feature and a high bar that we proudly set up. And the foundations of wealth buildings begin with asset security, which is its roots. In Crypto, things built to last, like life, are never easy and are most valuable.

At the end of the day, the platform that takes your identity seriously is Take your assets seriously too.

]]> https://earlybirdsinvest.com/why-bitfinexs-kyc-process-sets-the-gold-standard-for-the-crypto-industry/feed/ 0 42655 https://earlybirdsinvest.com/bafin-bans-ethenas-usde-token-in-germany-over-approval-process-flaws/ https://earlybirdsinvest.com/bafin-bans-ethenas-usde-token-in-germany-over-approval-process-flaws/#respond Sat, 22 Mar 2025 09:47:35 +0000 https://earlybirdsinvest.com/bafin-bans-ethenas-usde-token-in-germany-over-approval-process-flaws/

BaFin, Germany’s financial regulator, banned all public sales of Ethena GmbH’s USDe token this week, citing flaws in the approval process and violations of the European Union’s Markets in Crypto-Assets Regulation (MiCAR).

The regulator outlined several immediate actions against Ethena GmbH to enforce the ban.

According to BaFin, the synthetic dollar token had been offered as an unregistered security in Germany, prompting the authority to restrict its operations without delay.

BaFin Orders Asset Freeze and Website Shutdown for USDe Token

In its announcement, BaFin instructed Ethena GmbH to freeze the reserve assets backing the USDe token and halt all new customer registrations.

The company must also shut down its website, and a special representative has been appointed to oversee compliance with these directives.

“The BaFin also has reasonable grounds to suspect that Ethena GmbH in Germany sells securities in the form of sUSDe tokens from Ethena OpCo. Ltd. without the required prospectus,” the regulator said.

“The USDe and sUSDe tokens are interconnected in such a way that investors can receive a sUSDe token in exchange for a USDe token,” it added.

Despite the prohibition on primary sales and issuance, secondary market trading of USDe remains unaffected by the ban.

BaFin identified “serious deficiencies” in Ethena GmbH’s approval process, including noncompliance with MiCAR’s capital and asset reserve requirements.

Ethena GmbH had been operating under a transitional provision that allows issuers of asset-referenced tokens to continue business while awaiting regulatory approval.

The company applied for authorization on July 29, 2024, a day before the deadline, and has been issuing USDe in Germany since June 28, 2024.

Currently, approximately 5.4 billion USDe tokens are in circulation, with a substantial portion issued outside Germany before MiCAR took effect.

To safeguard customer interests, BaFin has ordered the company’s asset reserves to block and restrict the authority of its managing directors over those funds.

Holders of USDe tokens cannot redeem them directly with Ethena GmbH, though trading on secondary markets continues as normal.

BaFin’s statement also raised concerns about the company issuing sUSDe tokens, suggesting they could constitute unregistered securities.

The tokens are linked to USDe, allowing investors to exchange them while receiving additional returns.

The regulator is now considering further enforcement actions, which could include a complete ban on the public offering of these securities.

BaFin is overseeing the authorization process in collaboration with the European Central Bank (ECB), the European Banking Authority (EBA), and the European Securities and Markets Authority (ESMA).

Further details will be provided upon completion of the licensing process.

Ethena Defends USDe Token Amid BaFin Ban

Following BaFin’s ban on USDe in Germany, Ethena Labs reassured users that redemptions remain unaffected through its British Virgin Islands-based entity, Ethena BVI Limited.

The company, addressing the situation on X, stated that while its German subsidiary’s MiCAR application was denied, USDe remains fully backed.

“We are disappointed by this decision but will continue evaluating alternative regulatory frameworks,” Ethena wrote.

The firm also dismissed claims that its assets were frozen, clarifying that all funds remain accessible.

It plans to update its terms in the coming week to reflect the regulatory developments.

Ethena’s regulatory challenges come as institutional interest grows.

Recent investments include a $20 million backing from MEXC and a 500,000 ENA token purchase by World Liberty Financial.

BaFin Tightens Oversight on Synthetic Assets Across Europe

BaFin’s decision reflects the regulator’s cautious approach towards crypto assets operating within Germany’s jurisdiction.

Its ban on Ethena’s USDe token highlights the tightening regulatory grip on stablecoins and synthetic dollar tokens in Germany and across Europe.

With MiCAR enforcement ramping up, stablecoin and synthetic asset issuers will face increased scrutiny over compliance with capital, reserve, and disclosure requirements.

The outcome of BaFin’s assessment of Ethena GmbH could set a precedent for how synthetic dollar tokens are regulated under MiCAR across the EU.

Frequently Asked Questions (FAQs)

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