Bitvavo has secured a Markets in Crypto Assets (MiCA) license from the Dutch Authority for the Financial Markets (AFM), enabling the cryptocurrency exchange to operate across the 30 nations within the European Economic Area. This license follows the implementation of the MiCA regulatory framework in December of the previous year, which aims to harmonize crypto regulations across the European…

Bitvavo has secured a Markets in Crypto Assets (MiCA) license from the Dutch Authority for the Financial Markets (AFM), positioning the exchange to operate across the 30 nations within the European Economic Area. This achievement follows the implementation of the MiCA regulatory framework in December, which aims to harmonize crypto regulations across the European Union’s 27 member states, as well…

Bitvavo expected to receive at least 80% of DCG's debt

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Crypto exchange Bitvavo is expecting Digital Currency Group (DCG) to repay at least 80% of its debt to the exchange, according to a Reuters report.

DCG owes €280 million to Bitvavo — which equates to over $300 million — as stated in the Reuters article. Bitvavo said:

“The result submitted to the court amounts to an expected recovery rate of between 80-100% which will be repaid in cash, digital assets, cash and convertible preferred equity notes in DCG.”

The exchange expects the agreement to be finalized in the coming weeks as soon as the details are worked out.

On Jan. 10, the exchange rejected DCG’s proposal to pay 70% of its debt to Bitvavo. Bitvavo argued that the DCG had sufficient funds to make full payment.

DCG settles with Genesis and Gemini

Bitvavo’s above statement followed an in-principle agreement between DCG, its lender Genesis, and crypto exchange Gemini.

Genesis will either sell the company or turn over its equity to creditors to cover its debt, according to the agreement.

Meanwhile, Gemini will contribute $100 million to help provide liquidity to Gemini Earn users.

DCG sold Grayscale shares at $8 per share on Feb. 7, raising around $22 million.

Background

The sides have been in a quarrel since November 2022. Genesis took a heavy impact from the Terra-Luna crash in May 2022 and ended up halting withdrawals on Nov. 16. Two months later; the lender laid off 30% of its staff, which raised concerns regarding the company’s insolvency.

Genesis was one of the partners of Gemini’s Earn Program, which started having liquidity troubles in late December after Genesis halted withdrawals. Gemini founders Cameron and Tyler Winklevoss claimed that DCG founder Barry Silbert owes Genesis $1.675 billion, and a part of his debt belonged to Gemini Earn users.

Posted In: Bankruptcy, Exchanges

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Bitvavo rejects DCG’s 70% repayment proposal

Crypto exchange Bitvavo rejected Digital Currency Group’s (DCG) proposal to repay 70% of its debt because the embattled firm has sufficient funds to make full repayment, according to a Jan. 10 statement. Bitvavo maintained that it was confident that a solution could be found to satisfy all the concerned parties. According to the Netherlands-based company, the debt repayment would not be affected…

Bitvavo rejects DCG's 70% repayment proposal

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Crypto exchange Bitvavo rejected Digital Currency Group’s (DCG) proposal to repay 70% of its debt because the embattled firm has sufficient funds to make full repayment, according to a Jan. 10 statement.

Bitvavo maintained that it was confident that a solution could be found to satisfy all the concerned parties.

According to the Netherlands-based company, the debt repayment would not be affected by the reported investigations into DCG nor the possible bankruptcy of crypto lender Genesis. However, the process could impact the repayment timelines.

Bitvavo did not respond to CryptoSlate’s request for comment as of press time.

Bitvavo has over $300 million (€280 million) locked with DCG. The exchange said it uses DCG’s services to offer off-chain staking services to its clients.

Meanwhile, Bitvavo clients are not impacted by the fallout. According to the exchange, its clients can withdraw their digital assets anytime because it has assumed the risk on their behalf.

DCG is currently facing heightened scrutiny because of its financial situation. Gemini co-founder Cameron Winklevoss has called for the removal of its CEO Barry Silbert.

Journalist at CryptoSlate

Oluwapelumi is a believer in the transformative power Bitcoin and the blockchain industry holds.

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