Core Insights - Kraken, a US-based cryptocurrency exchange, reported a record revenue of $648 million for Q3 2025, marking a 47% increase from Q2 2025's $303.5 million, with broad-based growth across nearly all products [2][4] - The adjusted EBITDA for the quarter was $178.6 million, reflecting a 124% increase quarter-over-quarter, with margins rising by 9 points to 27.6% [2][3] - Total platform transaction volume reached $561.9 billion, a 23% increase from the previous quarter, while assets on the platform grew to $59.3 billion, a 34% increase [3] Business Expansion - 2025 has been a significant year for Kraken, characterized by rapid expansion and service enhancements contributing to revenue growth [4] - The acquisition of Small Exchange for $100 million, announced on Oct. 16, is expected to facilitate the launch of a US-native derivatives venue and product suite [4] - The launch of xStocks in June, in partnership with Backed, allows Kraken to offer 60 tokenized representations of US stocks to clients outside the US [5]

Core Viewpoint - The U.K.'s Financial Conduct Authority (FCA) is suing cryptocurrency exchange HTX for unlawfully promoting digital asset services in the country [1][2]. Group 1: Legal Action - The FCA has initiated legal proceedings against HTX, previously known as Huobi, in the High Court, London [1]. - The FCA had previously issued warnings since 2023 regarding HTX's unauthorized promotion of financial services in the U.K. [2]. Group 2: Regulatory Commitment - An FCA spokesperson emphasized the authority's commitment to consumer protection and maintaining the integrity of U.K. financial markets [3]. - The FCA noted that while some crypto firms have complied with financial promotions rules, it will take action against those breaching regulations [3].

Core Insights - Kraken's revenue more than doubled in Q3, reaching $648 million, a 114% increase year-over-year [1] - Adjusted earnings before taxes reached $178.6 million, up 124% quarter-over-quarter, with total volume rising 23% to $561.9 billion [2] - Kraken plans to go public in the U.S., joining other crypto firms in seeking public market access [3] Financial Performance - Revenue for Q3 was $648 million, reflecting a 114% increase from the previous year [1] - Adjusted earnings before taxes were $178.6 million, compared to a slightly negative figure a year earlier [2] - Total trading volume increased by 23% to $561.9 billion in the same period [2] IPO Plans - Kraken is preparing for an initial public offering, having recently raised $500 million, valuing the company at $15 billion [2] - The potential IPO would position Kraken alongside other crypto firms like Bullish and Gemini in the public markets [3] - Competitor Coinbase is expected to report a nearly 50% increase in adjusted revenue for Q3 [3]

Core Insights - Kraken, a cryptocurrency exchange, reported a significant year-over-year revenue increase of over 100% as it prepares for a public listing in the U.S. next year [1] Financial Performance - Revenue reached $648 million in Q3, representing a 114% increase compared to the same period last year [1] - Adjusted pre-tax earnings for Q3 were $178.6 million, a notable improvement from a slight loss in the previous year [1] - Total trading volume on the platform grew by 106% to $561.9 billion [1] - The number of funded accounts increased by 46% to 5.2 million [1] - The total assets under custody rose by 89% to $59.3 billion [1] Strategic Developments - As the IPO approaches, Kraken has been active in expanding its business, including recent acquisitions to enhance its presence in the U.S. derivatives market [1] - The exchange has also started supporting a variety of CME futures contracts, ranging from stock indices to energy and metals [1]

Core Points - Canada's anti-money laundering regulator, FINTRAC, imposed a record fine of C$176.9 million ($126.14 million) on Xeltox Enterprises Limited for failing to report suspicious transactions [1][2] - The violations were linked to serious offenses, including trafficking in child sexual abuse material, fraud, ransomware payments, and sanctions evasion [3] - Xeltox, which operates as Cryptomus and was previously known as Certa Payments Limited, is based in British Columbia and failed to report a transaction involving over C$10,000 in virtual currency [2][3] Regulatory Context - The Canadian government is intensifying efforts to combat financial crime, recently announcing a new agency focused on fraud and money laundering [4] - An upcoming audit by the Financial Action Task Force will assess Canada's financial crime measures [4] - Prior to this, FINTRAC had imposed a C$19.6 million ($14.09 million) penalty on Peken Global Limited, operator of KuCoin, marking another significant enforcement action [4][5]

Core Insights - The October 10 event highlighted the importance of operational resilience in crypto exchanges, with many platforms failing to protect traders during extreme volatility [6][16][25] - Phemex's infrastructure decisions allowed it to maintain normal operations while competitors experienced significant failures [7][20][26] Industry Analysis - Over $19 billion in positions were liquidated on October 10, affecting more than 1.6 million traders, primarily due to over-leveraged positions and platform failures [6][2] - The event exposed the inadequacies of many exchanges, which prioritized marketing and low fees over robust infrastructure [16][25] Company Performance - Phemex maintained 99.9% uptime during the volatility, allowing traders to manage their positions effectively [9][7] - The company invested heavily in infrastructure, including real-time risk controls and redundant systems, to ensure reliability during crises [8][20] Recommendations for Traders - Traders should set partial stop-losses at multiple levels to create layers of protection [12] - Understanding the difference between isolated and cross-margin can help limit risk during extreme market events [13] - Choosing a reliable platform is crucial, as operational performance during volatility is more important than marketing features [14][15] Call to Action for Industry Leaders - The industry must prioritize transparency and accountability, with exchanges publishing uptime statistics and stress test results [17][18] - A shift in focus from trading fees to operational resilience is necessary for the long-term health of the crypto market [16][25] Future Outlook - The next crisis could be worse if exchanges do not improve their infrastructure, but volatility also creates opportunities for recovery [21][24] - Companies that invest in reliable infrastructure will be better positioned to thrive in the evolving crypto landscape [25][26]

LBank at 10: Czhang Lin. Photo by BeInCrypto As LBank celebrates its 10th anniversary, the global crypto exchange powerhouse is doubling down on its vision for Web3 innovation with the launch of a $1 billion Talent Program. Known as the "100x Gems Hub," LBank has built a reputation for spotting high-potential early-stage projects and fostering a global ecosystem, consistently staying ahead of industry trends. In this exclusive interview conducted by BeinCrypto, Czhang Lin, LBank Partner and Head of LBank ...

The crypto exchange just made its eighth acquisition of 2025. ...

Core Insights - Liquidity integrations are essential for the success and performance of OTC crypto exchanges, enabling seamless order execution and stable pricing [2][26] - High liquidity is crucial for efficient trading, leading to instant trade execution, tighter bid-ask spreads, reduced volatility, and improved market confidence [4][11] Understanding Liquidity - Liquidity measures the ease of buying or selling assets without significant price changes, with high liquidity translating to better trading conditions [3] - Insufficient liquidity can lead to delays, poor price discovery, and user frustration [3] Importance of Liquidity in OTC Crypto Exchange Development - In OTC trading, liquidity is essential for executing large-volume transactions privately [7] - Integrating multiple liquidity sources ensures reliability and consistency, attracting institutional clients [8] Enhancements from Liquidity Integrations - Instant order execution is achieved through API aggregation, smart order routing, and cross-exchange connectivity [10] - Balanced price discovery is facilitated by aggregating price data from multiple sources, reducing arbitrage gaps [13] - Increased trading volume results from a liquid market attracting more traders, creating a self-sustaining cycle [14] - Enhanced platform credibility is established through consistent liquidity, which signals professionalism [15] - Market stability during volatility is improved, reducing drastic price swings and building user trust [16] Strategic Ways to Integrate Liquidity - Partnering with reliable liquidity providers ensures steady access to trading pairs [17] - Utilizing hybrid liquidity models combines centralized and decentralized sources for flexibility [18] - Implementing smart order routing enhances execution efficiency [19] - Enabling market-making mechanisms keeps the order book active [20] - Leveraging APIs for real-time updates improves trade accuracy [21] Emerging Innovations in Liquidity Integration - Innovations such as cross-chain liquidity bridges and AI-powered aggregation are shaping the future of crypto exchanges [22][27] Best Practices for Sustainable Liquidity Growth - Maintaining multi-provider partnerships and offering incentives for liquidity providers are key practices [28] - Regular audits and regulatory compliance are essential for ensuring fairness and security [28]

Core Insights - Hyperliquid, a decentralized exchange with around 11 employees and no external investors, has rapidly emerged as a major player in the cryptocurrency market, achieving a daily trading volume exceeding $13 billion and an annualized revenue of over $1 billion [1][2] - The platform gained attention during a recent market downturn, processing over $10 billion in forced liquidation trades, raising concerns about potential insider trading due to coincidental large short positions taken just before significant market movements [1][6] Company Overview - Founded by Jeff Yan, a Harvard graduate with a strong technical background, Hyperliquid operates without a board of directors or external investors, allowing for focused decision-making and innovation [3][4] - The platform has rejected traditional venture capital funding, instead opting to self-fund through the issuance of its HYPE token, which has seen its price surge from $3.90 to $38, resulting in a market capitalization of approximately $10 billion [4][6] Trading Features - Hyperliquid's appeal lies in its provision of anonymity and high leverage, primarily through perpetual contracts, which are not available on compliant platforms in the U.S. [6] - The platform's structure allows it to operate without user identity verification, attracting traders seeking privacy [6] Market Impact - The recent market volatility highlighted the risks associated with high leverage, as the cryptocurrency sector experienced its largest liquidation event, totaling at least $19 billion, with Hyperliquid accounting for over $10 billion of that amount [6] - The lack of regulation and limited recourse for users in the event of forced liquidations raises concerns about the platform's operational risks [6] Future Aspirations - Jeff Yan envisions Hyperliquid evolving into a comprehensive trading platform that accommodates various financial products beyond cryptocurrencies, aiming to become a "universal exchange" [7] - Recent developments include the introduction of perpetual contracts for traditional financial instruments, indicating a shift towards integrating traditional finance with cryptocurrency trading [7]