SEC Chairman Jay Clayton stated prior to the Bakkt launch that he is worried about the crypto custody and price manipulation and that there is still work to be done. Let’s find out more about it in the latest cryptocurrency news below.
While he was speaking to the CNBC’s Exchange yesterday, the SEC Chairman Jay Clayton was asked whether the industry has come closer to satisfying the concerns he has and those of the regulatory body. He also replied that he is positive but he still believes that there is work to be done for the futures markets. The first concern is regarding the custody of the crypto assets. According to Clayton, the regulators should be satisfied that the trading products offer products to the institutional investors but also have the means to safely store the assets for the clients. The second concern is that the crypto assets trade on largely unregulated exchanges but there still needs some more assurance to be added because the prices are not a subject to manipulation. He added that the progress was being made but those questions are lacking some clear answers before the SEC can start approving crypto-related products.
Bakkt has already answered the first question with the launch of the Bakkt Warehous which was announced just a day ago. According to the press release by the New York State Department of Financial Services, the regulated product provides the customers with a qualified custodian of bitcoin. The Intercontinental exchange subsidiary added that they will also create a fully regulated Bitcoin futures contracts platform on September 23rd so this is a part of the solution for one of the major concerns for the US regulators.
The crypto price manipulation is also a huge problem and as with any asset, the supply and demand are the ones dictating the price movements so bitcoin is no different. In the past few weeks, there have been huge premiums on prices in countries such as China where the demand increased dramatically because of the tensions which are weakening the local currency. To avoid this, the institutional products will have to derive the prices from a regulated exchange within the country so in a case of a new ETF, this will probably use Gemini or Coinbase as per the reports in the altcoin news reports.
OKEx Korea Delisted Monero, Dash, And Other Privacy-Cryptos Over FATF Demands
“Support for trading of 5 different cryptocurrencies, XMR, DASH, ZEC, ZEN, SBTC, will be terminated.”As the news site reported, the sweeping changes to crypto transaction rules currently demand businesses to identify the two parties which are sending funds to each other - if a transaction exceeds the limit of $1,000.
"According to the statement corresponding to FATF R.16, OKEx Korea has restricted its implementation as the ' travel rule' recommends that exchanges be able to collect relevant information such as the name and address of the sender and recipient of the virtual asset. privacy-oriented cryptocurrency, aka that ' the dark Coin "has decided to take the deal end-of-support measures of the corresponding event," the blog post showing that OKEx delisted the five altcoins shows.This comes in period when more than 200 countries are forced to theoretically implement the rules by June 2020. Still, the altcoin news show that there are concerns that doing so is physically impossible for a lot of decentralized blockchains. Now that OKEx Korea delisted the five cryptocurrencies, all of them make it possible to identify the sender and recipient of a transaction by design. An OKEx representative was also featured on many best cryptocurrency news sites a while ago, telling that the coins will only be delisted on OKEx Korea (OKEx.com.kr) but will remain listed on the global OKEx platform. The value of these coins, as the coming altcoin news show, has remained unchanged.
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First Crypto Banks In Switzerland Are Seen As A “Game Changer”
“This is the first time such licenses have been granted worldwide, so Switzerland is playing a pioneering role. We now have a responsibility as an enabling platform to help banks and other financial players make the step into the digital asset world.”Other members of the bank and officials agreed that crypto will apparently "come out of the shadows once these assets are done in a 100% compliant manner" This, according to the official who runs the group's Singapore operation, is a "game changer." What is very interesting is the fact that Swizerland has been one of the leading players in the global adoption of tokenized digital assets and DLT technology. The country is in the process of updating its financial legislation to incorporate the new technology. To remind you with a piece from our altcoin news, Switzerland is also the home to Facebook's Libra cryptocurrency foundation - which was set up in Geneva. Other established players such as the Swiss stock exchange and state owned telecom giant Swisscom are also involved, as well as a number of startups. The benefits of tokenizing all types of financial assets in a purely digital format and then trading them on DLT ledgers are believed to be manifold - and instantaneous settlement might help big time in the future. Even though there are some critical voices about the adoption, the fact that Swizerland houses the first crypto banks is definitely a positive sign for the entire industry.
China Plans Crackdown On Crypto Mining In Inner Mongolia
“The virtual currency ‘mining’ industry belongs to the pseudo-financial innovation unrelated to the real economy, and should not be supported," the report summed up, indicating that China plans crackdown.China's regulatory approach towards crypto mining has been somewhat inconsistent, sources reported. This left it unclear what exactly what the recent notice will mean for miners operating in the province of Inner Mongolia. In a tweet with a reaction to the ChainNews' report, a partner at Primitive Ventures and popular crypto commentator (featured on many best cryptocurrency news sites) named Dovey Wan wrote:
“I doubt this will have any impact.”What's also interesting is that as of the end of May, China was responsible for 70% of the global BTC mining. At the time, reports showed that China plans crackdown and that regulators were investigating illegal mining operations in Sichuan - a province which is responsible for 70% of the Bitcoin (BTC) mining thanks to the electricity generation of the Dadu River Basin. In April this year, reports in the altcoin news also showed that the National Development and Reform Commission in the country was considering a ban on crypto mining throughout the country. This tentative ban led to speculation that mining would be forced to leave the country or go underground - which was clearly a troubling proposition for the Chinese regulators. China currently houses the majority of the world's hash power and so far, no ban like this has entered into law. Meanwhile, the recent Bitcoin and coming altcoin news show an increase on the markets.
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