‘A Framework’: UK Issues Cryptocurrency Guidance

The regulatory framework for Bitcoin and other digital assets continues to … as much regulatory pushback as Facebook’s proposed virtual currency.

The regulatory framework for Bitcoin and other digital assets continues to evolve globally, albeit slowly.

The U.K. financial services regulator, the Financial Conduct Authority, finalized its guidance on crypto assets in July, clarifying which tokens fall under its jurisdiction.

The recent announcement from the FCA classifies cryptocurrencies such as Bitcoin and Ethereum as “exchange tokens.” They are not regulated, although anti-money-laundering rules still apply.

The FCA has proposed banning the sale of crypto-derivatives to retail consumers and is proposing rules to address the sale of derivatives and crypto exchange-traded notes.

Three Expert Takes

Aries Wang, CEO and co-founder of Bibox, a digital asset exchange, said in a statement: “The FCA is by no means driving regulatory change but as an influential force in the European market, we foresee the typology and guidance being rolled out as an industry standard. The paper critiques a supposed inherent intention to remove token holder rights in the case of what the FCA categorizes as ‘exchange tokens,’ the umbrella term for cryptocurrencies, crypto coins and payment tokens.”

Charles Phan, the founding engineer of Interdax, a cryptocurrency exchange, said: “Given how the FCA has listened to the industry about which tokens to regulate, actively seeking industry feedback, it is unfortunate they have taken a blanket approach regarding crypto derivatives.”

Crypto derivatives are a “field ripe with innovations benefiting the retail investor,” and it would be unfortunate for U.K. firms to be excluded due to events experienced in the regulated financial world, he said.

“While the guidance seems sensible and aligned with the approach taken in several other countries, their proposed ban of derivatives built on top of the ‘exchange tokens’ seems excessive, ill-suited and could simply push innovation overseas,” he said.

“These products will continue to thrive in the coming years to potentially become the most valuable niche of the crypto ecosystem, replicating what happened in the traditional markets. If the FCA is too stringent on in-demand crypto assets, it risks further isolating itself from a rapidly growing and highly fruitful market.”

Iain Wilson, advisor to NEM Ventures, the venture capital and investments arm of the NEM blockchain ecosystem, said in a statement: “Repositioning the token taxonomy to distinguish security tokens from e-money tokens is positive; regulation for securities should be structured differently from payments,” he said.

“The overall guidance provides a framework for distinguishing between regulated and unregulated tokens, as well as detailing the firm and individual activities that fall within the scope of FCA authorization. Whilst some survey respondents continue to look for global regulatory harmonization, we feel that this is unlikely in the foreseeable future.”

Facebook, Walmart Jump On Digital Asset Bandwagon

In the U.S., Facebook, Inc. (NASDAQ: FB) and Walmart Inc (NYSE: WMT) have both made an extremely bold move into the cryptocurrency space with the planned launch of digital coins.

This has drawn interest from regulatory authorities in the U.S.

In July, Facebook faced scrutiny in a Senate hearing over its plans for the Libra cryptocurrency.

Walmart Coin

In contrast, the reaction to the Walmart Coin has been more agreeable.

Bloomberg reports that Cowen analyst Jaret Seiberg has said that Walmart’s proposed digital coin should not face as much regulatory pushback as Facebook’s proposed virtual currency.

Libra and Walmart’s crypto proposal differ in scale, the analyst said: Facebook has global intentions that do not appear to be shared by Walmart.

CoinCorner CEO Danny Scott said Walmart has filed a patent for a U.S. dollar-pegged stablecoin.

“While the publicity is obviously good news for the crypto industry, we believe it is a waste of time and resources for these companies — something that will eventually show as time passes. There are already a number of decent stablecoins out there, all doing exactly the same job,” he said.

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2019-2029 | Cryptocurrency Exchanges Market Leading Manufacturers | Binance, Coinbase …

Global Cryptocurrency Exchanges Market research report analyses current as well as future aspects of global market according to product type, …

Global Cryptocurrency Exchanges Market research report analyses current as well as future aspects of global market according to product type, manufacturers, geographic regions, and applications, from 2019 to 2029. The Cryptocurrency Exchanges market report mainly focus on key regions like Europe, North America, Latin America, The Middle East and Africa and Asia-Pacific. The global Cryptocurrency Exchanges market report has provides forecasted compound annual growth rate (CAGR), which will help a user to make critical decisions for growth and profitability. The report additionally focuses on historical data of past years and forecasts up to 2029 which makes the report as a complete resource for industry executives.

To start with the Cryptocurrency Exchanges report includes the fundamental outline of the market based on manufacturer details along with product classification, product cost and the role of manufacturers in overall market earnings with sales volume and consumption ratio. The region-wise analysis of the Cryptocurrency Exchanges market will help the users to analyze the industry insights of the market which will influence their business decision. Cryptocurrency Exchanges report will exhibit huge growth during the forecast period due to constant development and increasing customer demands in the global market.

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Global Cryptocurrency Exchanges Market Scope and Coverage:

The report motivates the clients by providing a basic overview of the Cryptocurrency Exchanges industry along with the definition of the product, product price and cost structure, classifications, leading competitive players with classifications. Further, the elaborate the manufacturing process of the Cryptocurrency Exchanges products, product requirements, capacity utilization, market profit and supply-demand ratio along with growth estimation. Then Next part of the report introduces the new concept of SWOT (Strengths, Weaknesses, Opportunities, and Threats) reasoning that paves the way For investment feasibility and return analysis of the Cryptocurrency Exchanges industry. It also highlights various assets and circumstances of the Cryptocurrency Exchanges industry. Various technical professionals and retailing experts are appreciated for conducting fruitful inspections and evaluation.

The Major Key Players Influence the Global Cryptocurrency Exchanges Market are LocalBitcoins, BTCC, Binance, Coinbase, Poloniex, Kraken, Kucoin, Bitfinex and Bittrex

Product Types: Cloud Based and Web Based

End-user Applications: SMEs and Large Enterprises

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Crypto Wallet Abra Update: Mobile App to Restrict Services For US Users Due to Regulatory Issues

After August 29th, New York residents will only be able to hold Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) on Abra. New York …

Abra, an all-in-one cryptocurrency wallet and exchange, announced on Thursday it is restricting services to U.S. users due to regulatory issues in the country. Explaining why the platform made the changes, the Abra team stated:

“[Due to the regulatory situations], specifically, for Abra users in the United States is that we have to make some system modifications around our smart contract based synthetic assets. As a part of this effort we are migrating any synthetic assets to a native hosted wallet solution. On Abra, these are defined as anything other than Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).”

Abra’s team also noted that for most U.S. users, the migration will be “seamless” and will allow them to continue managing and transacting with most of their assets from the Abra app without interruption. However, during the migration, some assets may be unavailable to use (exchange, send, and withdraw) for a few minutes while the migration takes place. The migration will impact some segments of U.S. users more directly, such as the following:

  • U.S. users will no longer be eligible to hold QTUM, BTG, EOS, OMG, SNT after August 29th. U.S. users holding positions in these crypto assets will have to exchange or withdraw their investments from Abra by 11:59 PM EST on August 29th. After that date, any remaining balances in those assets will be converted to Bitcoin in the app.
  • After August 29th,New York residents will only be able to hold Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) on Abra. New York residents will need to transfer or sell any synthetic holdings by 11:59 PM EST on August 29th. After that date, any remaining balances in those assets will be shown as Bitcoin in the app. Additionally, Abra users from New York will no longer be able to use bank ACH, wire or American express card for deposit/withdraw after August 29th.

The team went on to add:

“We are proud to be, along with many others in our industry, pushing the frontiers of financial innovation to drive global financial inclusion. However, operating in the United States has become increasingly complex and challenging. Unfortunately, we believe this to be the best course of action at this time. We hope, and look forward to bringing our full offering back to US users in the near future.”

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Cryptocash distress amidst hostile policies

“Since we began operations in August 2017, we at Koinex have always aimed to do our best to provide blockchain enthusiasts in India with the …
Express News Service

While the world seems to be well on its way to experimenting with cryptocurrencies, India’s regulations concerning the nascent technology is driving the country’s cryptocurrency exchanges to the ground. Just days after social networking giant Facebook announced that it would launch its own cryptocurrency – Libra – India’s largest cryptocurrency exchange Koinex downed its shutters in the country.

The reason? Regulatory uncertainty and disruption, primarily arising from the rather hostile treatment that cryptocurrencies have received from the Indian financial regulators. “Since we began operations in August 2017, we at Koinex have always aimed to do our best to provide blockchain enthusiasts in India with the highest standard of service in the trading of digital assets. However, over the past 14 months it has become extremely difficult to operate a digital assets exchange business in India. After months of uncertainty and disruption, we have regretfully decided to shut down all exchange services and operations from June 27, 2019,” the exchange said in a post on its website. The deadline for withdrawing all digital assets from the exchange is 9 pm on July 15.

Koinex is merely the most recent casualty of India’s regulatory approach to cryptocurrencies. Just weeks after the Reserve Bank of India banned regulated entities like commercial banks and non-banking financial companies from dealing in cryptocurrencies, India’s then largest cryptocurrency exchange – Zebpay – shut down. Reports also say that Unocoin, another major cryptocurrency exchange operating in India, is scaling down its workforce significantly.

Following this virtual RBI ban, the crypto-space in India has been roiled with reports of further regulatory tightening and indications that the Indian regulator was not keen on promoting the technology. For instance, cryptocurrency companies are specifically barred from the RBI’s recently announced ‘Regulatory Sandbox’ which is aimed at fostering financial technology innovation.

Reports on a draft bill — Banning of Cryptocurrency and Regulation of Official Digital Currency Bill, 2019 — also made investors in the country jittery with a possible 10-year jail term proposed in the draft bill for dealing with cryptocurrency.

These developments saw a distinct impact on the traction that cryptocurrency exchanges saw in the India, while also making operations difficult due to the constant regulatory flux. “We took on immense financial burden to continue trading of digital assets and allow law-abiding Indians to participate in the decentralised revolution that has swept across the globe,” said Koinex’s CEO Rahul Raj in a blog. “We have stayed away from disclosing details to the public in the larger interest of mindfully steering the industry towards positive regulations, but unfortunately we’re not too hopeful that things will change for the better in the near future,” he added.

According to Raj, the exchange has been “consistently been facing denials in payment services from payment gateways, bank account closures and blocking of transactions for trading of digital assets”. The company also alleged that even non-crypto transactions like payment of salary, rent and purchase of equipment, our team members, service providers and vendors have had to answer questions from their respective banks due to an association with a digital assets exchange operator.

The final nail in Koinex’s coffin seems to have been reports of a jail term proposed in the draft bill, which Raj said “has created enough FUD in the Indian crypto trading community to result into a sharp decline in trading volumes and instil a clear discomfort for all the law-abiding citizens of this great nation”. While Koinex has now shut shop in India, it, however, has its exchange up and running in Australia, where cryptocurrencies are considered legal tenders and treated as property.

Regulators see red on Crypto

India’s regulators have, over the past few months, come out with a series of policies that have made operating cryptocurrency-related businesses extremely difficult in the Indian market. Last year, for instance, the Reserve Bank of India (RBI) banned all regulated financial entities including banks and NBFCs from dealing in cryptocurrencies

The virtual ban, according to cryptocurrency exchanges, have crippled their and their customers’ ability to transact freely in the country. The RBI has also specifically excluded cryptocurrency firms from its regulatory sandbox scheme

A draft bill on banning cryptocurrenices has proposed a 10-year jail term for dealing in the virtual currencies, which was one of the triggers for Koinex’s shutting down

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Bitcoin can surge to record HIGHS – but still vulnerable to huge COLLAPSE, experts warn

The cryptocurrency, which celebrated its 10-year anniversary in January, suffered a horrific 2018, completely collapsing in price to $3,000 having hit …

Cryptocurrency experts are confident the latest resurgence could see bitcoin’s price smash through its record high price of $20,000 over the next couple of years – last achieved in December 2017.

Danny Scott, co-founder and chief executive at crypto-exchange CoinCorner, told Express.co.uk: “If history is anything to go by, I have no doubt in bitcoin surpassing the previous $20,000 high in the near future.

“When exactly that will happen is hard to predict, but I would hope to see this within 2019.”

Marie Tatibouet, chief marketing officer at Gate.io, believes bitcoin could surge past $20,000 without actually slowing down.

She said: “Bitcoin typically increases hundreds of percentage points in a couple of weeks, sometimes even quicker.

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