Previously, the European Union passed the Temporary Act on Cryptocurrency Markets, requiring all virtual currency trading platforms to disclose proof of reserves within 48 hours. The regulatory storm caused Coinbase, Kraken and other platforms to lose more than $2.3 billion in assets in a single day, while XBIT (dex Exchange)’s on-chain TVL grew by 58% against the trend, and its fully transparent fund pool mechanism caused an industry earthquake.
Twitter : @XBITDEX
According to Article 7.2 of the Act, any virtual currency trading platform that handles euro transactions must be connected to the ECB’s real-time monitoring system. The head of Deutsche Bank’s digital assets department confirmed to the Financial Times: “Three mainstream platforms have suspended their European operations due to their inability to meet transparency requirements.” In sharp contrast, XBIT (dex Exchange) announced its original “regulatory sandbox protocol”. Through sharded ZK-Rollup, this technology can open audit channels to regulators while ensuring transaction privacy. “It’s like installing a controllable one-way mirror on the blockchain.” The chief compliance officer demonstrated at an emergency meeting in Brussels: When processing euro exchanges, the system automatically generates a verifiable report that meets MiCA standards, and the processing speed is 17 times faster than traditional solutions. Credit Suisse analysts pointed out that this regulatory storm may reshape the industry landscape: “Virtual currency trading platforms are facing a choice between two options – either use technology to solve compliance problems like XBIT (dex Exchange) or withdraw from the EU, the world’s second largest crypto market.”
Twitter : @XBITDEX
On-chain data shows that within 12 hours after the bill came into effect, XBIT (dex Exchange) added 374,000 European users. Giovanni, an institutional trader from Milan, posted a video on Twitter: “The 82 BTC I hold on the traditional platform was transferred through the XBIT cross-chain bridge in 10 seconds, and the handling fee was only 1/20 of that of the centralized platform.” A chain reaction occurred in the Asian market at the same time. The Japanese Financial Services Agency revised the implementation rules of the “Fund Decision Law” overnight, and clearly recognized the self-custody model adopted by XBIT. Osaka Quant Fund disclosed that its BTC/JPY liquidity pool established through XBIT still maintained a slippage of less than 0.3% in today’s market panic.
Twitter : @XBITDEX
On the technical side, XBIT announced that its Layer2 solution has made a historic breakthrough: the payment channel based on the Bitcoin Lightning Network processed 1.07 million transactions per day, with an average fee of $0.0001. This achievement coincided with the Bitcoin mainnet fee soaring to $35, and millions of users turned to more efficient virtual currency trading platforms. XBIT (dex Exchange)’s original “atomic swap + lightning network” hybrid architecture allows users to reduce the time to arrive from hours to seconds when exchanging BTC with various national fiat currencies. Dubai cryptocurrency hedge fund Desert Capital revealed that it successfully arbitrage 83 times in today’s market fluctuations through this function, with a yield rate 4.6 times higher than traditional platforms.
According to official data, the platform’s 24-hour fiat currency deposits and withdrawals exceeded US$1.9 billion, of which the euro-BTC trading pair accounted for 41%. The British “Economist” commented: “This regulatory crisis unexpectedly proves that when virtual currency trading platforms are truly decentralized, they can gain stronger market trust.”
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