BTC exchanges in Hong Kong are having quite the trouble complying with the new regulations from the Securities Futures Commission that demands compulsory insurance coverage against crypto theft. Let’s find out more about the insurance policies in the coming altcoin news below.
The Securities and Futures Commissions is another one of the regulatory bodies that joined in the prescription of a detailed governance framework for the virtual currency market. However, the nature of the industry brought up to the many factors which lead the platforms facing significant difficulties while trying to abide by the laws. The financial regulator of Hong Kong wants the local bitcoin exchanges to provide full coverage for the customers’ funds. The new law is a part of the regulations which are expected to come since the regulators are aiming to regulate the entire Hong Kong Crypto scene.
The SFC published a document offering a general overview of the insurance framework for the BTC exchanges which needs to be followed. An excerpt from the reports reads:
‘’The SFC generally expects that the insurance policy would provide full coverage for virtual assets held by a platform operator in hot storage and a substantial coverage for those held in cold storage (for instance, 95 percent).’’
As previously reported in the DC Forecasts latest cryptocurrency news, the Hong Kong regulators choose a different governing option from the other countries including China and Mainland. They did not ban cryptocurrency trading or ICOs but the SFC prefers to make a more robust framework which will allow the crypto commerce to thrive.
For the BTC exchanges, however, getting insurance coverage is a major issue. Insurers are not willing to create policies that will provide coverage for an industry like virtual currencies since they are not common. One of the biggest issues comes with the ongoing cyber attacks which harm the BTC exchanges the most. These attacks cost about $2billion in 2018 and some of the major exchanges were contributing with more than 50 percent of the total amount. The Insurance companies will provide only coverage for crypto exchanges and will charge a premium because of the high risks related to the digital assets. The Insurance giant Aon’s Murray Wood noted:
‘’The number of insurers and reinsurers that are willing to underwrite cryptocurrency cybersecurity risk is extremely narrow. The amount of available coverage capacity today is under US$1 billion per transaction.’’
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“Breaking down to support zone. On 1HR chart showing top of support zone now acting as resistance. Not a great sign for bulls and want to see price break back up in neutral territory Continue to watch this area for a break $10,189 will lead back down to 4-digit BTC.’’Earlier this week, before bitcoin pulled back from the $10,300, another crypto asset trader noted that the gap in CME’s bitcoin futures contract could be settled at $8,500 indicating that if the bitcoin falls below, there could be a possibility that it will go down even lower than expected. Since the middle of July, Bitcoin showed some incredible movements, one of which led to a 9% rally in a matter of minutes which also led to a liquidation of the most short contracts on the trading platforms. DonAlt, the popular crypto trader and tech analyst noted that the next support for bitcoin can be found at $9,800 saying that a 4-digit drop is likely at the current cincture of the market:
“If I had to pick two places to close shorts///long it would be the two green areas below. S1: $9800; S2: $8200. Anything else is in no shape or form significant enough to me to buy in a (short-term) bear trend.’’As noted in the latest cryptocurrency news, the technical indicators show a week hand for bulls but the fundamental factors are boosting the sentiment around the market.
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“I think all these other cryptos are bridges to where we have a Bitcoin environment,” he said.Appearing in the unique trademark Bitcoin tie, Tim Draper believes that US regulators were too heavy-handed dealing with innovations like Bitcoin, blockchain and related fields - which is what he told CNBC. He did not say anything about other altcoins which might have been featured in our altcoin news section. When it comes to Libra, he said that there was no need to demand regulatory assurances before the product had even launched.
“We’re putting regulation before the innovation — Facebook’s just announced Libra; they haven’t even been able to ship it yet, and the regulators are all over them,” he continued.Currently, many best cryptocurrency news sites explore the link between Libra and Bitcoin. At press time, Bitcoin looks stable and is trading more predictably after a turbulent week which saw a lot of price swings as the Congress debated a cryptocurrency policy. Tim Draper believes that there is lack of Bitcoin support against government. He is in a lot of interviews recently, talking about being a Bitcoin bull, his investments in the crypto space as well as his outlook on the future of the crypto space.
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