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Coinbase to move e-money license for EU from London to Dublin due to Brexit

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It has been recently announced by Coinbase that as a result of Brexit, they will be moving the provision of E-Money services from the UK branch to the Irish branch. This is a positive win for the Irish crypto industry, as they have been hiring quite steadily over the last couple of months with a variety of roles including customer support, accounting and finance, and security. The full text of the announcement is below Changes to your account after Brexit Following our email last year, we wanted to let you know about changes to your account after the UK leaves Source: https://bitcoinsinireland.com/coinbase-to-move-e-money-license-for-eu-from-london-to-dublin-due-to-brexit/

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ASIC CFD Restrictions, PayPal Crypto, CFTC, USGFX ZA Move: Editor’s Pick

ICYMI: The biggest news stories of the week

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In a busy week for news, let’s take a look back at the news stories that dominated the worlds of forex, fintech and crypto, in our best of the week segment.

ASIC Officially Adopts Curbs on Selling CFDs to Retail Investors

By far the biggest news story of the week was The Australian Securities and Investments Commission (ASIC) officially announcing restrictions on selling contracts for difference (CFDs) to retail clients.

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Amongst a swathe of restrictions, regulated firms have now been forced to limit the leverage they can offer on currency pairs to a maximum of 30:1.

The rules also mandate negative account protection, ensuring that customers cannot lose more than their trading stake, avoiding a repeat of the debacle following the 2015 Swiss Franc collapse. Finally, the rules forbid bonuses and other incentives, whether monetary or non-monetary, that may have encouraged overtrading in recent years

Read more on the ASIC CFD Curbs here

CFTC Issues Advisory Mandating New Rules for Crypto Deposits

This week, the CFTC issued an advisory expanding the notifications and reporting requirements for virtual currencies held by futures commission merchants (FCMs).

The new rules build upon the CFTC’s existing customer protection regime, as amended by Dodd-Frank, under which FCMs are required to segregate from their proprietary assets all money, securities and other assets deposited by customers. Additionally, it is intended to enhance these protections and to specifically address systemic risks posed by the nature of virtual assets that surrounded the recent hacks of crypto exchanges.

Read more on the CFTC new rules here.

PayPal to Launch Crypto Services in the ‘Coming Weeks’

As Finance Magnates reported this week, the PayPal crypto saga continues. The company officially confirmed that it will allow cryptocurrency purchasing, selling, and holding on its platform.

Although no launch date was given, PayPal stated will allow its users to pay using digital currencies to all 26 million merchants on its network by early 2021.

Read more on the PayPal crypto confirmation here.

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USGFX, Stripped of Aussie License, Sets Up Shop in South Africa

FX broker Union Standard International Group Pty Ltd (USGFX) has been awarded a license by South African regulator the Financial Sector Conduct Authority (FSCA) to offer financial trading services in the country.

In August, the board of USGFX announced that the headquarters of the brokerage will be moved from Australia to London.

The cancellation of the USGFX AFS licence follows on from the broker being ordered to enter into liquidation by the Federal Court of Australia in August.

Read more on the USGFX South Africa Move here.

OKEx, BitMEX, & More: Are BTC Hodlers Losing Trust in Crypto Exchanges?

In a Finance Magnates analysis, we looked at the reasons why the amount of BTC that was being kept on cryptocurrency exchanges was at its lowest point in months.

We delved into two recent incidents regarding two large cryptocurrency exchanges that may have served as an extra incentive for traders to get their coins out of exchange accounts as quickly as possible, though, in both cases, hackers were not involved. Instead, the trouble came from the law enforcement side of things: specifically, last week’s arrest of OKEx founder Star Xu, as well as the indictment of the four co-founders of BitMEX that took place earlier this month.

Read more on the BTC decline and on losing trust in crypto exchanges here.

Tax Fraud? J5 Probes ‘100s of Accounts’ at Peter Schiff’s Euro Pacific Bank

As Finance Magnates reported this week, ‘Hundreds of accounts’ at the Puerto-Rico based Euro Pacific Bank, founded by renowned millionaire broker and Bitcoin sceptic, Peter Schiff, have been placed under international investigation in relation to allegations of tax evasion.

However, the allegations of tax-related criminal activity may not be the bank’s only issue. It was reported that “the bank’s security was also a problem,” and that “at one point, Russians tried to extort the bank for a ransom of 1000 bitcoins, worth millions of dollars.”

Read more on the J5 Probe at Peter Schiff’s Euro Pacific Bank here.

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Binance Bitcoin Futures Markets Clock Highest 24h Volumes as Institutions Go Long

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With bitcoin’s latest rally beyond the $13,000 mark, it seems like the next bull market is here. It can be seen from BTC markets that have been on fire for the last 7 days, including derivatives. The latest data shows that bitcoin futures markets on Binance have clocked the highest 24h BTC futures volumes amongst all platforms. This comes amid the exchange registering $760 million in open interest.

Binance Experiences Explosive Bitcoin Futures Market Action

Bitcoin rallied beyond $13,000, galvanizing every BTC related market along the way, including the futures market on Binance.

As per the latest data from crypto market analytics firm Skew, the exchange logged the highest 24h bitcoin futures volume amongst all BTC derivative trading platforms.

skew_exchange_24h_btc_futures_volumes_bn
Binance Clocks Highest 24h Bitcoin Futures Volume, Source: Skew

This is coming after the Malta-based cryptocurrency exchange registered heavy futures trading traffic as open interest (OI) jumped 30 percent to $150 million in just 2 days from October 19 to October 21. Binance’s current OI figure stands at $760 million.

Skew’s data also shows that Binance hosted the highest aggregated daily bitcoin futures volumes on October 21. The cumulative figure was $32 billion that day, out of which Binance’s share was $8.3 billion. But at $3.3 billion, Binance still has the highest aggregated futures volumes.

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BTC Futures Market Metrics On Other Platforms Are Booming As Well

With bitcoin’s recent week-long upside correction, traders using other platforms are mainly interested in BTC futures. Skew’s observations from October 20 show that there has been a 54 percent appreciation in 24h Futures and Swap Volumes on Huobi.

Compared to bitcoin, only ether (ETH) has experienced a 30 percent surge in volumes. And that’s not all. Bitcoin futures open interest on institutional platform CME rose to $784 million today. This has added nearly 1500 contracts to the already bubbling CME BTC futures roster, scheduled for expiry by the end of this month.

But how are these futures traders on CME actually betting on bitcoin?

Institutions Are Going Long While Hedge Funds Are Busy Shorting

Skew did a deep inspection of the above spike of bitcoin futures open interest on the CME, and the firm concluded that bets are mainly coming from institutions and hedge funds. The former is more optimistic about bitcoin price rallying further in the near term, as opposed to hedge funds who have record short bets on BTC. The same is visible from the Commitment of Trader (COT) numbers displayed in the chart below:

Amidst all the above-market activity, the aggregated open interest for bitcoin futures for all platforms sharply rose to $5 billion and has since remained the same.

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Source: https://cryptopotato.com/binance-bitcoin-futures-markets-clock-highest-24h-volumes-as-institutions-go-long/

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Bitcoin Price Could Triple Even After a Modest Switch From Gold, JP Morgan Says

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Despite having a complicated past, it seems that JP Morgan’s love for Bitcoin is growing every day thanks to its potential as an investment and store of value.

In a recent report, the American bank shared with its investors an analysis of Bitcoin’s current situation and possible future scenarios regarding prices and fundamental value. The bank explained that under the current conditions, Bitcoin has a good chance of increasing its price.

JP Morgan Believes Bitcoin Could be an Alternative to Gold

JP Morgan believes that investors could switch from gold to bitcoin as a way to diversify their portfolio and having another uncorrelated storage of value. This is especially important for those who don’t want to depend exclusively on gold when it comes to diversify their risk exposure:

“Even a modest crowding out of gold as an ‘alternative’ currency over the longer term would imply doubling or tripling of the bitcoin price.

The report also adds that adoption is key to increasing Bitcoin’s perceived utility, and therefore, its price. They explain that it is necessary to observe a more significant number of “economic agents” accepting cryptocurrencies as a means of payment in order to talk about a historical price appreciation scenario.

This is not far from reality. In fact, bitcoin is increasing acceptance by large economic agents (which seems to prove JP Morgan’s thesis). The recent rise in prices from $10,500 to the current $13,110 began after the payment processor Square announced a $50 million investment in Bitcoin.

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PayPal’s announcement to support the purchase and sale of cryptocurrency -BTC, ETH, BCH, and LTC for now- also further catalyzed the crypto markets’ bullish sentiment.

A Generational Thing

JP Morgan also assures that Bitcoin’s acceptance within the global financial culture goes through a cultural or generational context. As boomers leave the market and millennials take a more prominent position, Bitcoin and other digital tokens become more relevant in the investment world.

“The potential long-term upside for bitcoin is considerable as it competes more intensely with gold as an ‘alternative’ currency we believe, given that Millenials would become over time a more important component of investors’ universe.”

However, this assertion must be taken with a pinch of salt since studies reveal that Gen Z -the Millenials’ offspring- are not as enthusiastic about the use of crypto, opting for alternatives involving the digitalization of fiat money.

Jp Morgan believes Bitcoin could be largely adopted, but GenZers think otherwise
Gen Zers are not really into Bitcoin. Image: Business Insider

JP Morgan’s statements show the bank’s ability to adapt to new market trends, which is also characteristic of PayPal. Just two years ago, the bank’s CEO said Bitcoin was “worse than tulip bulbs” while PayPal’s CEO referred to Bitcoin in the same way:

“Bitcoin is the greatest scam in history. It’s a colossal pump-and-dump scheme, the likes of which the world has never seen.

Bitcoin is having a good time, with many models anticipating potential upward behavior over the next few months. The most controversial and discussed one, the stock-to-flow model, predicts that Bitcoin could reach $1 million by around 2026.

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Source: https://cryptopotato.com/bitcoin-could-double-triple-price-gold-market-jp-morgan/

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