Blackmoon Crypto Shuts Down Citing Little Hopes for Gram Release

The Blackmoon Crypto platform, which touts itself as the go-to marketplace for Telegram's forthcoming tokens, is shutting down its business amid tightening regulations and Grams legal battle with the SEC, CEO Oleg Seydak told CoinDesk.

Following on a strict new regulatory regime that is dawning upon European firms handling cryptocurrency, namely AMLD5, Cayman Islands-registered exchange Blackmoon will cease trading and from April 24 will start to convert its native into USDC stablecoins.

"After in-depth analysis we concluded that running a crypto exchange in compliance with all modern [European Union] Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term including the Fifth Anti-Money Laundering Directive and licensing requirements (that are constantly changing unpredictably and unfavorably) is not competitive to unregulated alternatives that are available in the market at the moment," Seydak told CoinDesk in an email.

A wave of new regulations is introducing stricter requirements for companies operating in the cryptocurrency industry, in particular measures stemming from EU's Fifth Anti-Money Laundering Directive (AMLD5). Even before the new rules go int effect in January, smaller crypto firms were facing increasingly daunting challenges, with many forced to cease operations.

According to Blackmoon CEO, its support staff will be on hand to provide technical assistance to customers during this period, while the BMC/USDC conversion rate will depend on "the amount of requests and outstanding reserves."

Gram launch hits a snag

Before its demise, Blackmoon Crypto has been operating as a Fintech Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based company that raised $30 million during its ICO in 2017. The company presents what it calls a one-stop solution for asset managers to create and manage legally compliant tokenized funds.

The holders of the Blackmoon Crypto tokens (BMC tokens) were able to register as "continuous contributors" to the platform and receive a share of all the funds that operate on the platform.

The business, however, wasn't flourishing as the platform attracted less than 4,000 users. Blackmoon tried to benefit from is its association with Telegram as its Oleg Seydak, a prominent figure in the Russian venture scene is also the CEO of the Swiss custodian Gram Vault.

Riding on the coattails of the popularity of Telegram's token sale, Blackmoon sweetened its platform as the only marketplace for yet-to-be-launched Grams directly from legitimate investors as soon as the token goes live by the end of April 2020.

Nevertheless, the ambitious plans to sell real grams has suffered a new blow over the last few weeks after a federal judge ruled in favor of the SEC, denying the request by Telegram to allow the messaging giant to distribute its GRAM tokens, at least, to non-US investors.