CBX Weekly Newsletter // 7 Oct 2020
- UK regulator bans sale of crypto derivatives to retail users
- AWX now Listed on CBX!
- John McAfee Arrested in Spain on US Criminal Charges
UK regulator bans sale of crypto derivatives to retail users
The U.K.’s Financial Conduct Authority (FCA) has today officially banned the sale of cryptocurrency derivatives and exchange-traded notes to retail users, more than a year after first proposing such a ban.
The ban will come into effect on January 6, 2021.
The FCA said these products are “ill-suited” for retail consumers due to various reasons, including “extreme volatility” of cryptocurrencies. There is no legitimate investment need for retail consumers to invest in these products, said the regulator. Hacks, inadequate understanding, and cryptocurrencies’ “no reliable basis for valuation” are some other listed reasons for the ban.
“This ban reflects how seriously we view the potential harm to retail consumers in these products,” said Sheldon Mills, interim executive director of strategy and competition at the FCA. “Consumer protection is paramount here.”
The ban will come into effect on January 6, 2021. The FCA estimates that retail consumers will save around £53 million (~$68 million) from the ban on these products.
The FCA’s action will not only impact crypto derivative exchanges, but also crypto brokers, investment platforms, and financial advisers.
“If your firm carries out marketing, distribution or selling activities in, or from, the UK of the relevant products to retail clients, you are required to cease these activities by 6 January 2021,” said the FCA in a separate policy statement. “Retail consumers with existing holdings can remain invested following the prohibition, until they choose to disinvest. There is no time limit on this, and we do not require or expect firms to close out retail consumers’ positions unless consumers ask for this.”
AWX now Listed on CBX!
After the successful listing of AWG. We are delighted to announce that AWX is live on CBX!
Trade here -> https://www.cbx.one/trade/AWX-USDT
AurusCOIN (AWX) is a revenue sharing token limited to a total supply of 30,000,000. As people around the world trade AWG, 70% of all the generated fees are proportionally distributed across all AWX holders (paid in AWG). The remaining 30% of the generated fees are allocated towards the ecosystems’ operational costs (15% to gold providers, 15% to vault partners).
Official Website
Block Explorer
https://etherscan.io/token/0x54e46cc89588318e3964ca2c1be94db9d5ca3dfb
White Paper / Documentation
https://aurus.io/Aurus_Whitepaper_V3.1.pdf
John McAfee Arrested in Spain on US Criminal Charges
John McAfee, the 74-year-old software magnate-turned-crypto-bull, has been arrested in Spain on allegations of tax evasion, according to the U.S. Department of Justice. His extradition to the U.S. is pending.
On Monday DOJ prosecutors unsealed a criminal indictment against McAfee, who faces charges of tax evasion and willful failure to file tax returns that could land him behind bars for over five years, if convicted.
The announcement comes the same day the U.S. Securities and Exchange Commission (SEC) sued McAfee for allegedly pumping initial coin offerings (ICOs) without disclosing he was being paid to do so.
McAfee allegedly received BTC and ETH worth more than $11.6 million for promoting seven ICOs in 2017 and 2018.
He also allegedly received $11.5 million in the promoted tokens. The SEC does not name the projects in the suit.
The SEC outlined the securities violations in a 55-page complaint filed Monday in the U.S. District Court for the Southern District of New York.
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