The UK FCA Derivatives Ban has the Crypto Community Talking 0 16

The UK FCA Derivatives Ban has the Crypto Community Talking

It was decided by the Financial Conduct Authority (FCA) in the UK that exchange-traded notes and crypto futures will be banned in the country starting 2021. Following the announcement, the Financial Conduct Authority (FCA) from the United Kingdom has acted upon it just two days ago.

On Wednesday (January 6, 2021), the banning of the exchange-traded notes and cryptocurrency futures has been put in place by the FCA.

Initially, the announcement was made by the Financial Conduct Authority (FCA) regarding the ban back in October 2020. After the announcement and careful consideration, it was announced that the ban will be imposed in 2021.

At the time of consideration, the Financial Conduct Authority (FCA) argued that the cryptocurrency derivatives will not prove beneficial to the retail investors. It argued that by investing in exchange-traded notes and cryptocurrency futures, the retail investors would be at the risk of incurring losses.

After the implementation of the ruling, the entire cryptocurrency industry in the United Kingdom is extremely concerned. Some of the major crypto-entities from the UK cryptocurrency community have also expressed their displeasure around the recent developments.

Following the ban, the chair of CryptoUK (a self-regulatory trade group), Ian Taylor has released a statement. The statement released by Ian Taylor is rather neutral as it talks about the elements of gains vs the elements of losses of consumers.

Ian Taylor stated that with the ban, the Financial Conduct Authority (FCA) has shown that it is worried about the protection of the consumers. On one hand, the derivatives enable the investors to take leverage of the services and increase their profits/gains. On the other hand, it poses the same amount of risks for the investors as there are always chances of them incurring a loss.

When it comes to retail investors, the Financial Conduct Authority (FCA) is very much concerned and considerate. Although the ratio between profit and loss for the retail investors are partial, still the regulators are not ready to take any risks.

However, Taylor did state that the retail crypto derivatives investors’ characterization decided by the Financial Conduct Authority (FCA) is ingenious. The chair of CryptoUK stated that instead of putting a ban on derivatives, the regulators could have introduced stricter limits on leverage. To support his argument, he quoted the restrictions that have been imposed on the CFDs by the regulators.

Now that the ban has been imposed on cryptocurrency derivatives, the investors will be unable to store cryptocurrency derivatives into individual savings accounts (ISA). The same thing will be imposed on self-invested personal pensions (SIPPs).

The recent ban has given birth to another alarming situation, which is that the investors will now be shifting to platforms that are unregulated and pose even higher risks on investors’ investments.

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Bitcoin Will Drop Down to $20k a Piece, Says the Guggenheim CIO 0 7

It was just two weeks ago when Bitcoin (BTC) prices were hitting their all-time high of $41k per Bitcoin (BTC). Then suddenly the prices of Bitcoin (BTC) starting dropping significantly. In a matter of 48-hours, the price of Bitcoin (BTC) came down by $11k only to bounce back to $35k in the next couple of hours.

However, since the set-back, Bitcoin (BTC) has been having a hard time keeping up. Although there were many analysts who predicted Bitcoin’s price drop was due, yet they stated that it will grow in price again. Right after the plunge, Bitcoin (BTC) did manage to make a comeback but it was not a long-lived success.

In a matter of days, Bitcoin (BTC) again came all the way down to $33k per Bitcoin (BTC) and then again bounced back. Just a few days back Bitcoin (BTC) managed to go all the way up to $38k per Bitcoin (BTC). However, it is again sitting at $33k apiece, which goes onto show exactly how volatile Bitcoin (BTC) has become.

Bitcoin (BTC) has again become extremely volatile in the past two weeks. As it keeps showing the volatile nature, many investors have started growing uncertain about its stability. There are many investors who have already sold their Bitcoin (BTC) with fears of facing another plunge since 2017.

Based on the above case, one of the senior executives at Guggenheim Partners has made his prediction around Bitcoin (BTC) price. According to the executive, Bitcoin (BTC) is currently destined to go all the way down to $20k per BTC. No matter how many times it fluctuates and it manages to go up, Bitcoin (BTC) will eventually drop down to $20k per BTC.

According to the Guggenheim executive, Scott Minerd, Bitcoin (BTC) will not be able to hit an all-time high for the rest of the year 2021. Minerd shared his views around the price of Bitcoin (BTC) in an episode of the “Closing Bell” show airing on CNBC.

Minerd predicted that after hitting an all-time high of $41k per BTC, it is highly unlikely for Bitcoin (BTC) to again hit an all-time high in the running year.

Although Minerd has made this prediction around Bitcoin (BTC) price looking at the current situation, it does not mean that he has started criticizing Bitcoin (BTC).

According to him, Bitcoin (BTC) is still one of the most reliable investment assets and will continue to grow with respect to the adoption rate. Despite his recent comment about Bitcoin (BTC) taking a plunge down to $20k per Bitcoin (BTC), he still maintains his stance on another prediction.

Minerd has predicted that one day, Bitcoin (BTC) will manage to hit the $400k per BTC mark.

Dubai Regulatory Authority to Introduce Cryptocurrency Regulations 0 8

It was almost 11 years ago when the cryptocurrency industry was introduced to the entire world with the launch of Bitcoin (BTC). At that time, the industry was strongly opposed by the regulatory authorities as well as financial institutions.

The need for the cryptocurrency industry was felt when the traditional finance institutions had started taking too much control of people’s personal information. It was the financial institutions that had started dictating people and putting too much pressure on people.

That was the time when there was a need for an alternative to the traditional financial system to be established. A system that granted people the authority to control how much of the personal information they wanted to share with the providers. The cryptocurrency industry was developed on a decentralized platform that did not appreciate the interference of third parties. Whether it was a sale, purchase, or trade, there were no intermediaries involved on this platform.

However, the financial institutions as well as many countries started opposing the idea and were not ready to adopt the platform. As time went by, the cryptocurrency industry has grown enormous and has reached a cryptocurrency community of 200 million active users.

Just recently, the cryptocurrency industry hit a market capitalization of $1 trillion. This has brought the cryptocurrency industry into the spotlight and countries from around the world have started adopting the industry.

One of the recent countries that are looking forward to welcoming cryptocurrency on its soil is Dubai. According to the recent reports, the major regulatory authorities from Dubai are currently in the process of composing the regulatory guidelines in the country.

The Dubai regulatory agencies involved in the process include the Dubai International Financial Centre and the Financial Services Authority. These regulatory authorities are currently involved in enhancing the regulatory structure as well as the regulations in the country.

The Dubai Financial Services Authority has revealed that it is planning to ready and launch the regulatory framework for diverse digital assets for the years 2021 and 2022. The announcement was made by the DFSA on the working of the digital assets regulatory framework on January 18, 2021.

Once the new regulatory infrastructure is released and implemented, it will turn out to be very essential for the cryptocurrency industry in Dubai. It will allow the cryptocurrency firms in the country to provide their services on a larger scale. They will be able to offer investors more trading assets and will also be able to target businesses and enterprises in the country.

Most importantly, the firms will have full support from the Dubai regulatory authorities in the expansion of new services being introduced in the Bitcoin (BTC) verse.

The DFSA has announced that it will be publishing two consultation papers that will be public for commenting and feedback.

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