The Financial Conduct Authority’s (FCA) recent decision to ban the sale of derivatives and exchange traded notes (ETNs) linked to cryptoassets to retail customers is a huge setback for the UK in maintaining its dominant position as a global fintech hub. The FCA’s decision has left many in the cryptoasset sector questioning the regulator’s willingness to collaborate with them and listen to the views of key market participants.
These are the views of Global Digital Finance (GDF), an industry membership body that promotes the adoption of best practices for cryptoassets and digital finance technologies through the development of conduct standards in a shared engagement forum with market participants, policymakers and regulators. Over 100 global organisations are members of GDF and over 350 industry professionals from around the world have worked on developing the GDF codes of conduct, the only global standard in this emerging sector.
The trade body also questions the FCA’s decision to ban these products when no similar steps have been taken in Europe, the U.S. or Asia.
It is also critical of the regulator for ignoring its own research findings and the overwhelming majority of responses to its consultation on the cryptoasset investment sector. A survey conducted by the FCA, published this year noted that ‘the majority of cryptoasset owners are generally knowledgeable about the product, are aware of the lack of regulatory protection afforded and understand the risk of price volatility’.
Lavan Thasarathakumar, head of regulatory affairs at Global Digital Finance, says: “The 2,681 participants in the FCA’s own survey offer firm evidence that its policy statement to ban the sale of certain cryptocurrency related products is perhaps misguided and leaves one wondering why the FCA disregarded its own evidence-based foundation.”
In addition to this, a 2019 FCA Consultation seeking industry input on the suitability of offering crypto derivatives to retail clients revealed that an overwhelming 97 percent of the consultation respondents disagreed with the FCA’s proposal to ban these products.
Jeffrey Bandman, board member at Global Digital Finance and former director at the U.S. CFTC, says: “Other regulators, notably the U.S. CFTC, has been safely overseeing regulated crypto derivatives markets for nearly three years with products that offer a reliable basis for valuation. These markets are accessible to retail as well as professional investors. Given the strong ties and coordination among global agencies, it is surprising a forward-looking regulator such as the FCA did not find itself able to adapt these safeguards to the U.K. market.”
GDF also points out that recently Germany’s regulator BaFin approved a bitcoin exchange traded fund (ETF),. BTCetc Bitcoin ETP (Ticker: BTCE) is an exchange traded cryptocurrency (ETC) that tracks the price of bitcoin. It is 100 percent physically backed by bitcoin, and for every unit of BTCE, there is bitcoin stored in regulated, institutional-grade custody. BTCE was the first cryptocurrency ETP admitted to Xetra to be cleared centrally.
Lawrence Wintermeyer, executive co-chair of Global Digital Finance, says: “In stark contrast to other global regulatory trends with cryptoassets, the FCA’s ban puts the U.K. out on its own in terms of taking a prohibitive stance. This is an unfortunate move following the U.K Government’s snub to fintech companies by initially excluding them from its Coronavirus Business Interruption Loans Scheme (CBILS administration scheme). This surprising exclusion damaged the Government’s credibility as a champion of fintech following more than a decade of promoting fintech competition as an antidote to the concentration risk of incumbent U.K. banks following the Financial Crisis. The FCA’s decision to ban the sale of certain investment products linked to cryptocurrencies is yet another setback for the UK in trying to strengthen its position as a leading market for fintech and the digital asset markets.
“Some may wish to argue the moot point that the FCA’s ban is good for retail customers, good for the financial services market, and good for the U.K. We would most certainly disagree with this. What is unarguable is that digital is global, and that digital finance is global. The effectiveness of jurisdictional bans of this nature is questionable in a world where customers can find the products and services they choose on the internet, wherever these products and services come from, and this choice often drives customers offshore.”
The GDF board, executive, and global membership put themselves at the disposal of the FCA to engage in rational and frank discussions to stop this ban, allow U.K customers the right to make their own informed decisions, and help to restore the innovative and collaborative spirit for which this world class regulator is known for.
Author: About alastair walker
Bitcoin Atom (BCA) Trading Up 12.7% This Week
Bitcoin Atom (CURRENCY:BCA) traded up 8% against the dollar during the 1-day period ending at 17:00 PM ET on October 21st. One Bitcoin Atom coin can currently be purchased for $0.12 or 0.00000898 BTC on cryptocurrency exchanges including Stocks.Exchange, CryptoBridge and Exrates. Bitcoin Atom has a market capitalization of $2.13 million and approximately $93.00 worth of Bitcoin Atom was traded on exchanges in the last 24 hours. During the last week, Bitcoin Atom has traded 12.7% higher against the dollar.
Here’s how related cryptocurrencies have performed during the last 24 hours:
Bitcoin Atom Profile
Bitcoin Atom (CRYPTO:BCA) is a PoW/PoS coin that uses the SHA256 hashing algorithm. It launched on December 4th, 2017. Bitcoin Atom’s total supply is 21,000,000 coins and its circulating supply is 18,418,931 coins. The official website for Bitcoin Atom is bitcoinatom.io. The Reddit community for Bitcoin Atom is /r/bitcoin and the currency’s Github account can be viewed here. Bitcoin Atom’s official Twitter account is @atombitcoin and its Facebook page is accessible here. The official message board for Bitcoin Atom is medium.com/@bitcoinatom.
Buying and Selling Bitcoin Atom
Bitcoin Atom can be bought or sold on the following cryptocurrency exchanges: Exrates, CryptoBridge and Stocks.Exchange. It is usually not currently possible to buy alternative cryptocurrencies such as Bitcoin Atom directly using US dollars. Investors seeking to trade Bitcoin Atom should first buy Ethereum or Bitcoin using an exchange that deals in US dollars such as Coinbase, GDAX or Changelly. Investors can then use their newly-acquired Ethereum or Bitcoin to buy Bitcoin Atom using one of the exchanges listed above.
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Author: Kay Greene
Swiss parliament approves raft of digital asset regulations
Switzerland continues to lead the way in blockchain regulation, approving a raft of new laws which amend existing statutes to bring them in line with advancements in blockchain and digital asset technology. The laws are expected to come into force in early 2021.
The amendments apply to several statutes, and have been drafted with concern for the potential damage wrought by under-regulation in this area, balanced by the need for a commercially sensible regime which does not stifle industry growth. Throughout the consultation and drafting process, the Swiss Federal Council has made clear that the objective is to create the best possible framework so that Switzerland can continue to grow as a leading, innovative and sustainable blockchain and fintech destination.
Bitcoin Association’s Regional Manager for Europe, Patrick Prinz, said the changes had been a long time coming and sent a strong signal to the market.
“Regulators always take time to learn and understand the environment before acting,” explained Prinz.
“Globally, we are now entering a phase of execution, where regulators are beginning to directly engage by implementing new laws and legal frameworks, as well as removing those players who are intentionally disregarding the core rules of the cross-border investment game.”
The three largest amendments concern tokenization of rights, digital asset exchanges, and bankruptcy law.
The amendments introduce a new category of tokenized rights called ‘uncertificated register securities’ (Registerwertrechte/URS), analogous to security tokens. URSs share the same key features as traditional securities, but are able to be transferred digitally. Under the amendments, these assets must be registered on a distributed ledger technology (DLT)-based register and can only be transferred or claimed through that register.
They set out requirements for the DLT-based register, which include adequate security standards protecting the register against unauthorized changes. While the amendments do not go far into detail as to what qualifies as adequate, it does provide a list of well-known examples of adequate systems, including proof-of-work and proof-of-stake. The entity offering the URS must also disclose the details of the URS and the register being used. The amendment also stipulates the liability of the offeror if they do not meet their disclosure obligations.
Regarding exchanges, the amendments apply to the Swiss Financial Market Infrastructure Act. Specifically, it sets out the requirements for exchanges that are offering DLT-based securities (as distinct from payment assets, such as Bitcoin SV). It largely uses the existing wording regarding traditional trading venues. Most importantly, it allows the Swiss Federal Council and Swiss Financial Market Supervisory Authority to stipulate licensing requirements for these exchanges. Keeping in line with the attitude toward commercial practicality in the amendments, they are also given the discretion to make specific requirements for smaller exchanges which pose lower risks to the financial system and their customers.
Prinz expected the changes to create a more equitable environment for exchanges to operate in—a move he said would only be a positive for the industry.
“These moves by the Swiss regulator will have the effect of levelling the playing field for DLT exchanges and traditional exchange operators alike, as well as strengthening the requirements for service providers to retail customers to implement and obey both AML and transaction monitoring rules,” he explained.
“To date, I am still not clear why some digital asset service providers felt that they could operate in the dark, with existing rules and regulations not applying to them.”
The last big area to be impacted by the amendments is bankruptcy law. Legislators foresee digital assets playing more of a role in insolvency proceedings as adoption continues to increase. From next year, digital assets which rest with a third-party custodian are protected in case the custodian begins bankruptcy proceedings. Custodians must keep the digital assets available to the rightful owner at all times, and must be able to allocate the assets it is controlling to individual clients or an identifiable community of clients.
There are other, smaller amendments which are also important. Issuers of payment tokens and decentralized trading platforms are also now explicitly subject to Switzerland’s anti-money laundering requirements, meaning they will now have to take the same steps to prevent money laundering as traditional financial institutions. Offerors of URSs who exclusively serve institutional or professional requirements are no longer required to be affiliated with an ombudsman’s office, as was the case before. Those acting as custodians are also now required to obtain a FinTech license in situations where digital assets are accepted as deposits.
The amendments are far reaching, and Switzerland’s efforts to modernize existing legislation to accommodate digital assets means many already-understood rules and regulations can be applied to digital assets. At the same time, the Swiss Parliament has tried to avoid stifling the growth of the digital asset industry in the country by making practical allowances within the rules, especially for smaller entities who might have value to add to the ecosystem but would be unduly burdened by rules which are more appropriate for larger companies.
It’s important to note that the amendments still leave discretion to the likes of the Swiss Financial Market Supervisory Authority regarding issues such as licensing requirements, so there will be further developments in Switzerland once the amendments come into force next year.
“The values and mantra that underpin the moves by the Swiss regulator today are right in-line with Bitcoin SV: foster a regulation-friendly ecosystem that facilitates innovation in the digital currency space and blockchain industry, while respecting the rule of law,” said Prinz.
“Today, the regulator has made it clear that running a business comes with liabilities—something which must be glaringly obvious to even the most ignorant players in the market now.”
See also: CoinGeek Live panel on Digital Currency & Global Compliance: Tools & Tips for Exchanges, Wallets & Other Service Providers.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.
Author: News Bureau
Thema: Wave Plans Further Listing on External Exchanges
Cryptocurrency applications are on the rise since the mass adoption of digital assets and the rising popularity of blockchain technology. The high growth in digital asset applications is fueled by hopes that cryptocurrencies would become the true alternative for fiat currencies and that blockchain-powered tokens would create cryptocurrency ecosystems and reshape the financial industry. One application that has captured the imagination of the wider crypto community is WavePlatform.io. This platform was launched in 2020 and so far, has been growing at a rapid pace.
WavePlatform, a digital asset all-in-one platform solution, recently announced its plans to start negations with cryptocurrency exchanges on which WAVE coin is intended to be listed on. The company’s goal is to be listed on three high turnover digital asset exchanges, which will be a crucial step for the development of the WAVE technology and the wider distribution of WAVE coin. In addition, as a true blockchain ecosystem network, WavePlatform enables all members of the ecosystems the ability to choose which cryptocurrency exchange they would like the Wave coin to be trading on. According to Wave, all users on the Wave ecosystem community will be informed on the decision on which exchange Wave will be listed at the end of the year.
This is a huge step for the company and users who purchase the token may be rewarded at a later date. The fact that the WAVE token will be listed on notable crypto exchanges, where it will have a floated market price and be exchangeable into other digital assets and fiat currencies may push the WAVE project forward. On top of that, the anticipated external exchange listings will add liquidity to the WAVE token, eventually allowing investors and traders to speculate on the coin’s price movements.
At the time of writing, the Wave token, which has a maximum supply of 175,000,000, trades at a price of 0.12$ and a market cap of 5,750,967.03$. The circulating supply of the Wave token currently stands at 50,008,408.93 Waves.
The WavePlatform Platform & Ecosystem
Wave is a fully transparent decentralized open blockchain platform that aims to offer an all-in-one cryptocurrency platform. Simply put, users of WavePlatform will find themselves being able to not only store their cryptocurrencies using the Wave desktop or hardware wallet but also manage their digital assets and exchange Bitcoin (BTC) to Wave coin and vice versa through the Wave crypto exchange. Like many other blockchain projects, WAVE has started its journey as an ERC-20 token, based on the Ethereum blockchain technology. However, as the company has recently completed the mainnet launch, the switch from a token to a coin was completed and all WAVE transactions will now be recorded on its own blockchain network. Further, it is quite impressive that Wave has differentiated itself from other platforms by allowing users to transfer the WAVE token between users in seconds.
As blockchain becomes a vital role in new applications, Wave has also developed a comprehensive blockchain ecosystem. The Wave ecosystem includes a wide variety of use cases with a strong vision to create a revolutionary digital payment network.
The Wave application was founded in March 2020 with the goal of simplifying digital asset management and building an innovative all-in-one blockchain-driven solution. So far, the Wave’s team has added the Wave coin into circulation through its internal exchange, it has completed the mainnet release, and launched a desktop and hardware digital asset wallet.
Looking ahead, the WavePlatform group has a lot in the pipeline for users and global investors. Following the listings on top digital asset exchanges, Wave plans to fully change its marketing plan and then launch the Wave Marketplace in the second quarter of 2021. The anticipated WAVE Marketplace will be a shopping portal where users of the WAVE platform have the opportunity to sell or buy goods using the WAVE token. This will be a major step to create value as well as daily usage for those who hold Wave coins.
Finally, the decentralized exchange called WADEX is expected to be launched in the third quarter of 2021 with at least 10 large coins. More cryptocurrency pairs will be listed on the exchange at a later date.
For more information about WavePlatform.io
WavePlatform website, visit https://business.club/home.
WavePlatform on Github: https://github.com/waveplatformio/
WavePlatform on Medium: https://medium.com/@waveplatformio