Securities dealer charged while crypto futures to be delivered by Bakkt
Apologies once again due to news delay. Steemit's HF20 upgrading still in progress.
Image source: pixabay - geralt
Cryptocurrency is moving forward. We are expecting coin prices to stabilize by the end of 2018. This effort could not be made possible without regulations stepping in to prevent fraud, black market activity, hacks and other illegal activities. On the other hand, banking bans have hindered the progress of the crypto industry.
The US Securities and Exchange Commission (SEC) has taken action to charge Bitcoin-funded securities dealer and its Austria-based CEO for violating security-based swaps funded with Bitcoin. Source: SEC - Press Release.
According to the SEC’s complaint, 1pool Ltd. a.k.a 1Broker, registered in the Republic of the Marshall Islands, and its CEO Patrick Brunner solicited investors from the United States and around the world to buy and sell security-based swaps. Investors could open an account simply with an email address and user name.
"The SEC protects U.S. investors across a variety of platforms, regardless of the type of currency used in their transactions,” said Shamoil T. Shipchandler, Director of the SEC’s Fort Worth Regional Office. “International companies that transact with U.S. investors cannot circumvent compliance with the federal securities laws by using cryptocurrency.”
Source: SEC - Press Release
SEC is also seeking sanctions against the individuals behind the allegedly fraudulent Initial Coin Offering (ICO) known as PlexCoin as well as issued a cease and desist order and a $200,000 fine to Crypto Asset Management (CAM) and its founder Timothy Enneking. Source: cointelegraph - Ana Alexandre.
Image source: pixabay - rawpixel
One of India's largest cryptocurrency exchanges, Zebpay, will be shutting down business due to the central bank's banking ban on the crypto industry. With 3 million users using its iOS and Android apps and support for 20 cryptocurrencies and 22 trading pairs, Zebpay will have to abide to the policy introduced by the Reserve Bank of India (RBI) to stop offering cryptocurrency services in India. Source: CCN - Samburaj Das.
"The curb on bank accounts has crippled our, and our customer’s, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business." Zebpay responded.
Source: CCN - Samburaj Das
All crypto orders will be cancelled and users will only be able to retain their tokens in their own wallets. Fiat withdrawals are currently impossible due to the banking freeze. This is definitely one of the worst regulatory nightmares.
Image source: pixabay - rawpixel
Fortunately, it was not all bad news as Intercontinental Exchange (ICE) has revealed plans to offer Bakkt’s first physically sorted Bitcoin futures contract. Bitcoin futures will be traded in USD, Euros and British GBP, inviting institutional investors to enter the cryptocurrency market indirectly. Source: blockonomi - Jimmy Aki.
“Our first contracts will be physically delivered Bitcoin futures contract versus fiat currencies, including USD, GBP, and EUR. For example, buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account.” ICE tweeted.
Source: blockonomi - Jimmy Aki
Bakkt CEO Kelly Loeffler plans to promote 'efficient price discovery':
“A critical element to price discovery is physical delivery. Our new daily Bitcoin contract will not be traded on margin, use leverage, or serve to create a paper claim on a real asset. This supports market integrity and differentiates our effort from existing futures and crypto exchanges which allow for margin, leverage and cash settlement.”
Ushering in Bakkt's Bitcoin futures contract and their platform is a promise for better security against fraud that also brings increased stability to the crypto industry.
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Thanks @tsyler for the crypto news updates evolving around the world. I as well agree with you that bringing in regulations in the crypto industry will indeed usher in more stability in the crypto economy and eventually increase its adoption and price value.
However to some extent some regulations can tend to be unfair and abit of a bias about crypto by the governments and banks because of their fears to lose out on the gains they extract from directly controling people's money. Take forinstance the news india where Zebpay exchange is being led to shut down operations. Such is a set back in the crypto world.
Have you heard about Digitex? A transaction free trading exchange with its native digital token "DGTX" This new bitcoin futures exchange is live in action at Malta Blockchain Summit that is November 1st-2nd.
https://steemit.com/digitex/@yohan2on/lfynqsk-digitex-to-present-a-keynote-and-demo-futures-exchange-at-malta-blockchain-summit
Great piece of work @tysler
Im very much interested with future of regulations and I would love to hear your view on future of STO and ICO. Would STO be a ICO killer in your opinion?
Yours
Piotr
IPO-->ICO-->STO
STO is almost equivalent to a traditional IPO. Are we moving backwards or forward? ;D
tysler market is full of ups and down. some factors stabilizes it. bitcoin is now a day stable in its price. can you say something about other cryptocurrency's other than bitcoin like dogecoin, ripple,girdcoin? which currency has brightest future in the next 5 years?
Based on market capitalization, Bitcoin's stability almost represents all other altcoins. We have seen developments in Ethereum and Ripple. Cryptocurrencies overall have a bright future, but it will undergo a selection process and the best coin wins. It is too early to tell right now.
In spanish. he aqui que todos estan hablando de dinero. toda esta plataforma esta dedicada a la moetizacion de comentarios y de ideas. estamos llegando a un nivel de la sociedad en la que la capitalizacion penetra muy dentro de nuestros circulos sociales. ya lo vimos antes con las civilizaciones antiguas extintas, pero, ahora mismo nosotros estamos aquí, esto podria suponer una ecoevolucion en escalas que aborda un nivel tras otro.
that's not true. Just because it is less visible that multi-corporations, such as Facebook, are siphoning all the monetization in social media does not mean capitalization ceases to exist. Social media was never 'free' to begin with.
I am looking forward to reading more about the 1Broker shutdown as it could have a number of implications for exchanges in general. I imagine that many of the larger exchanges are closely following this as the US consumer base has been growing and compliance is not clear in many of the assets listed on exchanges. This continues to demonstrate the importance of not leaving assets on exchanges and also the need for improved decentralized exchange options.
cool, I will find out more about this issue. Thank you for bringing it up
how much it would compromise the decentralize system if regulation is apply?
will regulation truly ease volatility? I meant we still have market manipulation in exchanges controlled by central authorities. its often less frequent but on a much larger scale.
yes.. a subjective question. You are right about the scale of the market. Once again, we are back to putting our trust on central authorities rather than a decentralised system. Talk about a decentralised system that needs to be regulated. :(
Apologies accepted, the post is informative.
Meanwhile i think you should know about the first Zero commissions future exchange that's underway know as Digitex Futures exchange, I hope you check it out. Cheers
Cool, Dititex's token is similar to Ethereum's gas. Zero commissions but they require a minimum no. of vests in the form of their token. Basically forcing me to use their token. Is that good or bad? Lol
no one knows what will happen what will happen then, it could backfire.