Weekly Updates: Latest Crypto News (May 7— May 13)
National cryptocurrency in Barcelona, stricter Japanese regulation rules and ETH futures. Read TEOZ Weekly Updates for more information.
Stay tuned!
- Wall Street waits for Bitcoin
The New York Times has published an extensive article on the cryptocurrencies and movements of the giant NYSE exchange toward them. There is information that the parent company NYSE — Intercontinental Exchange is developing a swap contract for bitcoin. At the same time, real delivery of the cryptocurrency is planned, which turns the process into commodity trade with delivery. This, in turn, adds legitimacy to bitcoin, since the whole process will pass under the supervision of the Commodity Futures Trading Commission. If everything goes according to plans, the delivery futures will bring new players who were not interested in speculation on settlement futures, but who did not want to contact cryptocurrencies outside the regulated field. As soon as we see concrete actions on this project, we can expect a substantial increase in the capitalization of the entire cryptocurrency market.
Source: https://www.nytimes.com/2018/05/07/technology/bitcoin-new-york-stock-exchange.html
2. Facebook plans to create its own cryptocurrency
At the moment, this news is more like rumors, but rumors do not come from scratch. The possibility of introducing cryptocurrency is studied by Facebook’s VP David Marcus. In the past, Marcus served as a PayPal President. Also, Marcus is on the board of directors of the largest cryptocurrency holding Coinbase. Most likely, through rumors, the reaction of society and regulators to such news is being worked out. It should also be remembered that Facebook is a public company, whose shares are traded on classic exchanges. If Facebook will create its own cryptocurrency, the process will occur only in the legal field and with the permission of American regulators. And first, it is necessary to carefully study the legal framework for such processes. Thus, the process of creating a cryptocurrency in Facebook can drag on for years. It’s no wonder if an unknown startup overtakes the clumsy giant. We have already seen such failures of the giants. For example, no one thought that Nokia would lose its leadership position in the mobile phone market. But now this is a new reality. And if Facebook wants to remain in the lead, then it should act as quickly as possible, otherwise, a young and flexible competitor will pass it on a curve.
3) The UK platform will launch Ethereum futures
Crypto facilities service will launch futures for ETH. Futures for BTC and Ripple are already traded on the platform. Investors open long and short positions, which allows risky bear and bull speculation. The exchange positions itself as adjustable. The website contains data on the regulator:
“Crypto Facilities Ltd is authorized and regulated by the Financial Conduct Authority (FRN 757895) and registered in England with registered number 9172128 and registered office at 25 Copthall Avenue, London EC2R 7BP, United Kingdom”.
CEO and founder of the company Timo Schlefer gave a capacious comment on the news:
“We are excited to be launching ETH futures. The ethereum network is the pre-eminent blockchain for smart contracts, and we believe this new trading instrument will attract more investors and bring greater liquidity to the marketplace.”
We expect that liquidity on ETH will only increase with the emergence of new players, which in the long run will lead to stabilization of the exchange rate.
Source: https://www.coindesk.com/ethereum-futures-go-live-uk-trading-platform/
News on market regulation:
- Japan applies stricter regulation rules
In connection with a major hacking at the Coincheck exchange in January this year, the Japanese regulator is going to tighten the rules. Requirements will affect the existing stock exchanges and new players.
The following items are expected to be tightened:
- High standards in the field of security. It is prohibited to store assets on online services, cold wallets are needed. Users will be required to connect two-factor authentication;
- Standard of customer identification;
- The assets of the exchange and the assets of customers must be strictly separated;
- Probably, all anonymous cryptocurrencies will be completely excluded;
- Transparency of all persons involved in the exchange. Mechanisms are being developed to reduce insider trading.
New rules bring cryptocurrency exchanges closer to classical ones. All centralized exchanges should expect this process.
2. Barcelona issued its own cryptocurrency
The capital of Spanish Catalonia released REC (Recurso Económico Ciudadano — Civic Economic Facility), the rate of which is pegged to the euro. Owners can use it for purchases and calculations only at some points. Now the process is like an experiment, as it affects a limited number of participants and occurs in a small area. Nevertheless, this is already a small step towards creating national cryptocurrencies within Europe. If successful, similar experiments can also be carried out in the “dwarf states” of Europe. Moreover, they have long been rivals for the best cryptocurrency jurisdiction. We expect that the rivalry will continue with a new force, and eventually lead to the win of all parties participating in the competition.
Source: https://cryptodaily.co.uk/2018/05/recurso-economico-ciudadano-aka-rec-barcelonas-new-cryptocurrency/
The TOP-10 cryptocurrencies this week
All the cryptocurrencies have retained their positions and all of them are falling. Ethereum has the strongest position, its fall did not exceed 8%. The outsider of the week is Cardano, which lost -18.31% of its price. The cryptosystem community is waiting for the Consensys conference, which in past years has had a significant impact on the prices of cryptocurrency.
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