WikiBit Exchange Exit Risk Ranking #26: Biconomy — The “Compliant Exchange” on Canada’s Blacklist, as the “High-Risk Exchange Club” Continues to Expand!
Introduction: A “Self-Proclaimed” Compliant Exchange In the first 25 editions, we investigated a series of exchanges ranging from HashKey to CoinEx. For the 26th edition, we are taking a closer look at one of the most confusing cases in terms of identity — Biconomy.com. First, lets clear up one thing: there are two “Biconomy” projects in the crypto industry. One is Biconomy.io, a Web3 cross-chain infrastructure protocol. It has a publicly identified team, legitimate financing, investment from Coinbase Ventures, and backing from Polygons COO. It has nothing to do with exchange operations. The other is Biconomy.com, which describes itself as a “global cryptocurrency exchange,” was established in 2019, and operates through the biconomy.com domain. The subject of todays investigation is the latter. On paper, its profile sounds impressive: “registered with the Securities Commission Malaysia,” “US MSB + Canadian FINTRAC MSB registrations,” “serving more than 1 million traders worldwide,” “independent third-party custody,” and “support for Malaysian Ringgit (MYR) deposits and withdrawals.” Sounds like the typical setup of a “regulated Southeast Asian crypto exchange,” right？ But there is another side to the story. On April 5, 2024, the Alberta Securities Commission (ASC) in Canada officially placed it on its investor alert list, citing the provision of financial services by an “unregistered/unlicensed
