The U.K. Financial Conduct Authority’s decision to ban individual investors from speculating on bitcoin and other cryptocurrencies is likely to have a minimal impact, partly because the market is so small, according to analysts and industry executives who track the trading business. Some U.K.-based brokerages that had offered the crypto derivative products to retail traders could see a drop-off in revenue, though big cryptocurrency exchanges including Kraken say the impact is likely to be minimal. While U.K. individuals can still trade the actual cryptocurrencies, there may be some traders who will seek to skirt the rules by trading on offshore exchanges. […]
Derivatives
25 posts
This week the U.K.’s Financial Conduct Authority (FCA), which regulates the country’s financial services, issued a ban on the sale of crypto derivatives and ETNs to retail investors. While this may not seem particularly material to crypto asset markets overall – U.K. retail investors weren’t that much into crypto derivatives anyway, and the market hardly reacted at all – it is worth paying attention to for the alarming message contained within. This message loudly says: “We don’t like crypto assets.” In case you think I’m exaggerating, the policy statement opens with the sentence: “There is growing evidence that cryptoassets are causing […]
The Financial Conduct Authority (FCA) has published final rules banning the sale of derivatives and exchange traded notes (ETNs) that reference certain types of crypto assets to retail consumers. The U.K. financial regulator said it considers these products to be ill-suited for retail consumers due to the harm they pose, asserting they cannot be reliably valued by retail consumers because of the: Specifically, the ban will affect “the sale, marketing and distribution” to retail investors of any derivatives contract or ETNs that linked to “unregulated transferable cryptoassets” issued by entities in or outside the UK. The FCA classifies unregulated transferable cryptoassets […]
The firms will leverage privacy enhancing zero-knowledge proof technology to enable institutional trading firms to cross margin and bilaterally trade derivatives from a single pool of collateral. Source link
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. Source link
CryptoCompare’s latest report shows crypto derivative volumes were up 54% in August – likely a result of the rally in bitcoin’s price. Source link
Already live on SBI’s forex trading platform, the contracts for difference (CFDs) are available in bitcoin, ether and XRP flavors. Source link
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. Source link
Ethereum’s biggest-ever upgrade is supposed to make the blockchain network faster and more efficient. But the new “staking” system could lock up so many of the network’s native ether tokens that investors who want to trade them may have to rely on derivatives markets. The blockchain, the world’s second-biggest, currently uses a validating mechanism similar to larger Bitcoin’s known as “proof-of-work,” where new data blocks and transactions are confirmed via power-hungry computers solving complex cryptographic puzzles. Under Ethereum’s multi-year upgrade now underway, the network would shift to a “proof-of-stake” model, where investors validate transactions by staking ether on the blockchain in […]
Newly launched derivatives platform EQUOS.io is set to become the United States’ first publicly-traded crypto exchange later this year through a “backdoor listing” on the Nasdaq. SPACs are shell companies that use funds from their initial public offerings (IPOs) to acquire target companies, bringing them public through the “backdoor.” Around since the 1990s, they’ve experienced something of a renaissance in recent years, with the total amount raised hitting a record $13.6 billion in 2019 – more than four times the $3.2 billion in 2016. Diginex CEO Richard Byworth told CoinDesk that SPACs were faster and cheaper than traditional listings. In addition, […]
Bitcoin, crypto derivatives and DeFi continue to be hot in late July. Just one week ago, bitcoin’s price hit an intraday high of $9,568 in a low-volume environment. This week’s action, fueled by increased exchange volumes, has traders excited at the thought a long-term bull market may be back. As much as $446 million in trades were done on Coinbase Monday. “The market has clearly jumped to a bullish stance,” said Vishal Shah, and options trader and founder of derivatives exchange Alpha5. “Volatility is higher and we’re now looking at the previous resistance of $10,550 as our new support region.” Some […]
Traders want a bitcoin price breakout but they aren’t sure when that will happen. Bitcoin (BTC) trading around $9,174 as of 20:00 UTC (4 p.m. ET). Gaining 0.64% over the previous 24 hours. Bitcoin’s 24-hour range: $9,054-9,184 BTC above 10-day and 50-day moving average, a bullish signal for market technicians. Bitcoin trading on Coinbase since July 16.Source: TradingView Read More: Exchanges See Drop in Volumes as Bitcoin Volatility Approaches 2020 Low Traders are optimistic that bitcoin’s weak market, with low volumes and low volatility, can quickly change. Price movement outside of the low $9,000s territory is key, said Rupert Douglas, head […]
The Brazilian Securities and Exchange Commission (CVM) on Monday ordered cryptocurrency exchange Binance to immediately cease offering derivatives trading services in the country. Disclosure The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. Source link
A London-based subsidiary of cryptocurrency exchange Kraken has been given consent to operate its derivatives platform by the U.K.’s financial regulator. Disclosure The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. Source link
Derivatives market and crypto exchange FTX is moving into the storm created by Compound’s new governance token, COMP. Traders will soon be able to place their bets on which way decentralized finance (DeFi) will go, CoinDesk has learned. Later Thursday, FTX and FTX US will both list COMP as well as cUSDT, the Compound version of tether. On the global site, FTX will also open its suite of crypto derivatives, allowing users to take leveraged bets on the token’s prices looking down the road. “For basically all of DeFi, MakerDAO has been the king of DeFi, and it has had the […]
Hong Kong-based cryptocurrency platform Crypto.com has revamped its digital exchange. The new upgrades are expected to increase the performance and throughput of the exchange tenfold, the company announced Thursday. Changes include improvements to speed, scalability and security. The Crypto.com exchange launched in beta at the end of last year. The exchange is one of many services offered on the platform alongside currency accounts, debit cards and a mobile app. Company co-founder and CEO Kris Marszalek told CoinDesk the firm is planning to end the trial phase by the end of the year, and the infrastructure upgrades are expected to pave the […]
Malta-based cryptocurrency exchange OKEx rolled out option contracts on Ethereum’s ether (ETH) token on Thursday, ending the Panama-based Deribit’s virtual monopoly in the space. “OKEx ETH Options Contracts will be settled in ETH. Each contract’s face value of ETH/USD options is 1 ETH,” Jay Hao, CEO of OKEx, told CoinDesk. Options are derivative contracts, which give the buyer the right, but not obligation to buy or sell the underlying asset at a predetermined price on or before a specific date. While a call option represents a right to buy, a put option gives the holder the right to sell. The mark […]
Receiving regulator approval to operate in Gibraltar is anything but easy, crypto derivatives exchange ZUBR told CoinDesk. ZUBR, which began trading in March, said Wednesday it had received in-principle approval from the Gibraltar Financial Services Commission (GFSC) as a Distributed Ledger Technology (DLT) provider. The approval is on the condition the exchange addresses some of the regulator’s feedback by the time it gets its license. But just getting to this point has proven difficult. “From day one we realized hundred percent … that we would have to sacrifice a lot to get into the regulated space,” co-founder Oleg Ravnushkin said. Even […]
Well, it happened. Block 630,000 was processed on the Bitcoin blockchain (while we were on the air with our Crypto Long & Short show on Monday, how cool is that!), and the bitcoin subsidy paid to miners was cut from 12.5 bitcoins to 6.25. It felt momentous, as we all witnessed a pre-programmed economic system immutably do its thing. (Allen Farrington’s essay beautifully describes what it meant to those of us watching.) Many of you are probably breathing a sigh of relief now that you don’t have to hear about the halving again for a few years. Understandable – it has dominated […]
The top bitcoin derivatives product is now available on decentralized finance (DeFi). Andreessen Horowitz-backed dYdX released its Bitcoin Perpetual Contract from private alpha on Wednesday, bringing the most liquid digital asset derivative to Ethereum’s burgeoning DeFi market for non-U.S. investors. Unlike similar futures products, perpetual contracts don’t expire at a set time. “For the first time, users can trade the most popular financial product in crypto – BTC perpetual contracts – on a decentralized exchange,” dYdX founder Antonio Juliano said in a private message. dYdX’s newest derivative will offer 10x leverage and no expiry, with margin and settlement conducted in USD […]
Checking CoinDesk’s Bitcoin Price Index, you’d be forgiven for not seeing evidence that one of the largest events in the cryptocurrency industry’s history had taken place fewer than 48 hours ago. Wizened crypto greybeards (a status that really only takes about four years of experience in fast-moving digital-asset markets) were less surprised by the lack of price action in response to bitcoin’s third halving: The prior two halvings were similarly dull. You’re reading First Mover, CoinDesk’s daily markets newsletter. Assembled by the CoinDesk Markets Team, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in […]
A new derivative from Bitfinex allows investors to take a position on bitcoin’s overall share of the cryptocurrency market. The Seychelles-based crypto exchange said Wednesday the BTCDOM contract would allow investors to bet on bitcoin’s dominance rate – a metric for determining the market’s bitcoin value versus the value of other cryptocurrencies. The first of its kind, BTCDOM is a perpetual swap – a future without expiry date – that relies on a proprietary Bitcoin Dominance Index, comprised of seven of bitcoin’s most liquid trading pairs, including those with large-cap coins, such as ether, EOS, litecoin and XRP. Bitfinex says the […]
With less than a week to go before the expected May 12 halving event, bitcoin’s price is swinging upward. The crypto derivatives market is helping to hedge the uncertainty on which way the bitcoin market will go when miners have less revenue after the halving. In early trading at 00:00 UTC, the world’s oldest cryptocurrency was around $8,957 before jumping as high as $9,399 at 13:00 UTC (9 a.m. EDT) on spot exchanges including Coinbase. It was changing hands at a price above its 10-day and 50-day technical indicator moving averages, signaling bullish sentiment Wednesday. At press time bitcoin (BTC) was […]
Cryptocurrency exchanges based outside the U.S. are pushing to fill what they see as a competitive gap in the world’s biggest economy – offering more leverage to traders who have limited alternatives due to a strict domestic regulatory environment. Antigua and Barbuda-based cryptocurrency exchange FTX plans to launch its newly established U.S. unit this month. Margin trading, in which users can buy and sell assets using borrowed money, could become a key feature of the U.S. operations, FTX CEO Sam Bankman-Fried told CoinDesk. You’re reading First Mover, CoinDesk’s daily markets newsletter. Assembled by the CoinDesk Markets Team, First Mover starts your day with the […]