19/09/2018: Biggest Stories in the Cryptosphere
1. MPs Calling For UK Crypto Regulation
MPs have been calling for the government to implement UK regulation on the crypto-asset market. The sentiment is prompted by concerns over investor protection and illicit activities such as money laundering. They believe that the right regulatory approach could turn the country into a global crypto hub. The Commons Treasury select committee feels that a lack of regulations increases the level of risks, including lack of compensation, losses due to high volatility, and hacks of crypto exchanges. A report investigating digital currencies and the distributed ledger technology on which they work has also been created. In the document, MPs affirmed that the Financial Conduct Authority (FCA) should act fast in terms of regulating the market. It was suggested to adopt already existing rules, rather than design a new regulatory framework, as it would allow to save a considerable amount of time. MPs also request stronger clients checks for crypto exchanges through the introduction of EU anti-money laundering. The news was welcomed by CryptoUK, “the first self-regulatory trade association for the UK cryptocurrency industry”. BlockEx is a proud member of this association.
2. CME’s Tim McCourt Says That Bitcoin Futures Are Not Behind Crypto Market’s Decline
Managing Director and Global Head of Equity Products Tim McCourt has stated that Bitcoin futures are not the reason why the crypto market has significantly declined this year. He went on to say that the CME’s product is too small to affect the whole market on such a scale. McCourt made the statement during the Consensus Singapore 2018 when talking on a panel. It was also revealed that the Bitcoin future market has been growing, especially thanks to the Asian markets. 52.50% of Bitcoin futures traded outside of US are from there. The sentiment was echoed by DRW founder Don Wilson who said that Asia’s trading volumes are growing to the point where they are reaching those of the US. The Managing Director concluded saying that the company just produced a product for market participants who want to trade crypto derivatives in a regulated environment.
3. Banks and Traders Work on Blockchain-backed Commodities Platform
Global banks and trading companies have been working on the development of a blockchain-backed platform for the financing of “trading of commodities from oil to wheat”. Several pilot schemes across commodities were carried out and the testing phase lasted a couple of years. The launch of the platform, which will be operated by the Swiss venture komgo SA, has been announced today. It should go live by the end of this year. The venture will be the first that outside companies will be able to join. Blockchain technology will enable the replacement of paperwork with digital letters of credit. Transparency and transaction speed will also increase. Finally, the first commodity to benefit from this project will be energy, through a collaboration with energy trading platform Vakt.
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Sources:
- https://www.ft.com/content/dbea3cac-bb3c-11e8-8274-55b72926558f
- http://www.cryptocurrenciesuk.info/
- https://www.blockex.com/
- https://www.coindesk.com/dont-blame-bitcoin-futures-for-bear-market-cme-exec-says/
- https://uk.reuters.com/article/uk-blockchain-commodities/banks-traders-launch-first-commodities-blockchain-platform-idUKKCN1LZ1GX