Gemini Has Now Opened Doors to Crypto Investors in the UK
The Winklevoss twins-led Gemini cryptocurrency has officially launched operations for its entire range of services in the UK.
New-York based cryptocurrency exchange Gemini has officially launched in the UK. This comes after the UK’s Financial Conduct Authority (FCA) granted it an Electronic Money Institution (EMI) license.
The Winklevoss-led bitcoin and crypto trading platform is also one of the first businesses to receive FCA’s approval as a part of it’s Fifth Money Laundering Directive (5MLD) crypto-asset registration process.
The British government is pondering of imposing a second nationwide lockdown. The folks at Gemini saw this as a great opportunity to announce their launch in the UK, to ‘milk’ the ongoing and upcoming surge in bitcoin and crypto trading activities in the country.
As per the official blog article, Gemini announced the rollout of its full suite of services for UK users. The New-York based bitcoin exchange has also added support for the state-backed fiat currency GBP. This Gemini said is to ‘provide a more local experience’ to its British users.
As reported by CryptoPotato last month, Gemini became one of the first cryptocurrency trading platforms to receive the UK Financial Conduct Authority’s Electronic Money Institution (EMI) license. This approval gives it the official permission to offer bitcoin and crypto trading services to both individuals and institutions.
Gemini said that the launch in the UK after the receipt of the above license is an effort to work ‘proactively with regulators and asking for permission, rather than forgiveness’. The exchange added:
As a licensed and compliant platform, we abide by the high regulatory standards established to safeguard your money, securely store your crypto, protect your privacy, and keep bad actors off our platform. Ultimately, this fosters a better and safer experience for you and the larger crypto ecosystem as a whole.
Gemini CEO, Tyler Winklevoss quoted the exchange’s latest development as a significant milestone in the quest for global expansion. He added that operating the British market holds immense importance for Gemini:
The UK is a global center of financial innovation with a stringent and progressive regulatory regime. We’re proud to help usher the crypto revolution into this historic market and become a part of its rich tradition. We look forward to welcoming consumers and institutional customers to our platform.”
Author: Published 23 hours ago
- 3 reasons why traders turned bullish after Bitcoin price surged to $10.7K
- Crypto Exchange OKCoin’s Listings Underline Earlier Commitment To DeFi
- Revealing crypto exchange’s physical location was not harmful, court rules
- Cryptocurrency: Tips on Trading Picks
- Bill Proposes National Crypto Regulatory Framework – CoinDesk
3 reasons why traders turned bullish after Bitcoin price surged to $10.7K
Today the price of Bitcoin (BTC) abruptly rose by 6% from $10,136 to as high as $10,743.
After this powerful 24-hour rally, analysts are now turning cautiously bullish for various reasons but will Bitcoin price be able to tackle the $11K mark any time soon?
Cryptocurrency daily market performance snapshot. Source: Coin360
Currently, the factors that appear to be lifting investor sentiment are negative funding rates, BTC whale activity, and the U.S. dollar’s recent weakness.
BTC/USD daily chart. Source: TradingView.com
At the moment, Bitcoin’s funding rate across various futures exchanges is either neutral or negative, despite the price hovering above $10,000.
Bitcoin futures exchanges utilize funding to ensure there is balance in the market and it disincentivizes the majority of the market to prevent the market from swaying to one side for a prolonged period.
If long contracts, or traders betting on a Bitcoin price increase represent the overwhelming majority, they will need to pay short contract holders. The opposite applies if short contract holders dominate the market.
When the funding rate turns negative, it means the majority of the market is shorting BTC. Typically, when funding rates remain below zero, it causes a short squeeze and a surge in BTC price. It can also be an indication that the short bet is overcrowded, raising the likelihood of an upsurge.
A popular pseudonymous trader known as “DonAlt” tweeted that it is “weird” to see sentiment bearish with negative funding rates. He said:
“It’s very, very weird seeing sentiment be this bearish, with neutral or negative funding above $10K. Don’t think I can remember a time where that has happened before.”
The trader also noted that he sees an absorption of selling pressure at $10,000. He added:
“Now I’m seeing absorption at $10K, it looks like the only people selling are people on derivatives and I’ve closed my shorts to see how the next week is going to play out.”
The overcrowded Bitcoin market with short contracts coincides with some top whales possibly moving their holdings off exchange.
According to Whalemap, a group of on-chain analysts who track crypto whale activity, top buyers moved their BTC on Sept. 23.
A map of unspent HODLer Bitcoin. Source: Whalemap
The analysts said top buyers moving their funds have typically been a bullish catalyst for BTC. They explained:
“Top buyers were moving their coins yesterday. From my personal experience looking at this metric, next day after top buyers move, we go up.”
As the number of COVID-19 cases surges in the U.S., lawmakers are locked in a stalemate over the future of a much needed stimulus package and this is leading strategists to speculate on a weakening U.S. dollar.
Before the initial rally, Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said $10,700 to $10,800 is likely for Bitcoin.
The trader emphasized that if the dollar slows down, the $11,200 to $11,400 range could be a reasonable target. He wrote:
“Nice, we’re holding here. Looks ready to test the $10,700-10,800 areas and maybe even $11,200-11,400 if the dollar slows down for a bit.”
Author: by admin
Crypto Exchange OKCoin’s Listings Underline Earlier Commitment To DeFi
POLAND – 2020/03/13: In this photo illustration an Ethereum cryptocurrency logo is seen. (Photo by … [+] Filip Radwanski/SOPA Images/LightRocket via Getty Images)
Crypto exchange OKCoin has been on a tear over the past week, listing multiple new DeFi assets despite turbulence in traditional and crypto markets. The volatile crypto subsector known as DeFi has seen torrid growth this year, with one measure of assets in the protocol products known as total value locked (TVL) having increased from $675 million in January to over $9.5 billion today. That growth has left analysts, investors, traders, and the exchanges that service them at times breathless — and struggling to keep up.
In that pursuit, OKCoin announced on September 14th that they were exploring listing up to 18 DeFi assets, with the first three listings of COMP (Compound), DOT (Polkadot), and YFI (yearn.finance) announced two days later. Further listings were announced this past Monday, with the main headline being OKCoin following some of their peer exchanges in a quick listing of UNI, the native token of the flagship automated market maker (AMM) exchange Uniswap. However, the announcement also included both cUSDT and cUSDC, two of the most important cTokens on the Compound platform that drives a significant portion of the current DeFi market.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
The creation of UNI and overnight airdrop on September 17th has taken the industry by storm, with Coinbase Pro listing UNI within hours of the announcement and Binance.US not long after. While OKCoin has been quick to react along with their peers, it is the decision to list the cTokens which is perhaps more indicative of the continuation of their overall DeFi strategy. As tokens specific to the Compound protocol, the listing by OKCoin can bring the ability to access the utility available to savvy users in the DeFi markets to a much wider audience who may not be as comfortable or proficient engaging with DeFi protocols yet.
The proliferation of the DeFi ecosystem with decentralized exchanges like Balancer and Uniswap and lending protocols such as Compound and Aave that connect users directly has forced centralized exchanges to re-examine their value propositions and areas of focus. As far back as 2018 Coinbase purchased decentralized exchange Paradex as part of its exploration of the market and technology. Last April, Binance became one of the first cryptocurrency exchanges to launch its own DEX using its own blockchain. Centralized exchanges have also listed numerous DeFi assets for trading this year, offering a way for users to onboard to the decentralized ecosystem directly from fiat. But there is no question that a tension exists between the regulated, centralized nature of centralized exchanges and the at times wild west nature of DeFi, with the ultimate aim of many in DeFi to completely bypass any need for centralized infrastructure by connecting users directly.
Although a centralized (CeFi) exchange, OKCoin has been actively exploring, participating, and servicing the DeFi system all year. In July, they announced a public price feed oracle with signed price data. The oracle, which is designed to Compound’s Open Price Feed specification, is a major step in centralized players using their resources to support critical infrastructure allowing DeFi to peacefully coexist and grow over time. Almost every DeFi application relies to some degree on oracle data in determining prices for products on their platforms, making the integrity of these feeds perhaps the single biggest potential fail point for DeFi as a whole.
When formulating their strategy going forward, CEO Hong Fang is focused on the entire ecosystem and where OKCoin can provide liquid markets. Of the types of projects she is focused on and why she is interested in DeFi specifically, she says “When we think about Bitcoin, it’s not just the underlying protocol, the quote on quote blockchain technology. Blockchain technology in itself, it doesn’t stand for anything. It’s the technology plus the economic incentive mechanism that you build into it.”
As of now though, there is still a bifurcation in the market. While it may seem hypocritical for a centralized exchange to be so focused on a supposedly decentralized system, they aren’t opposites so much as complements. There will always be a need for fiat onramps in crypto, and the regulated centralized exchanges have done an excellent job at making onboarding and custody for the average user much easier. While the vision for DeFi is an entirely new financial system, any semblance of achieving more interoperability and exposure can be positive for the space. Underlines Fang:
“If there are high quality projects that we really like we want to make it easy for people to access it. Because right now there is utility being offered by DeFi but there’s an extremely high threshold for people to really understand and to use it. To see DeFi continue to grow I think it’s necessary to enable more convenient access to the ecosystem, introduce more people to this concept and help people understand how to access it and use it.
One way for us to enable that as an exchange is to provide liquidity, provide a listing and a venue for people to trade and discover price. But there are obviously other ways for us to participate and we’ll continue to explore that, and we have other things going on internally that we are exploring.”
While they aren’t the only exchange spending time on DeFi right now, Fang’s continued commitment to the space and appreciation for it based on underlying crypto principles is refreshing. Along with their multiple developer grants both to individuals and in support of secure private payments like BTCPay server, Fang sees DeFi as another brick in the long road that underlies bitcoin, and crypto.
“[DeFi is] a continuation of the experiment that Bitcoin has started years ago, and the gist of it is really permissionless. And that way we can hopefully recreate the whole financial ecosystem in an end-to-end tech stack instead of building on top of the legacy financial system as we have seen with all the traditional fintech companies. Like Bitcoin has been trying to do with the monetary layer, DeFi is trying to create the financial system on top of the monetary layer.”
Although she admits that no one has a crystal ball as to which projects will ultimately succeed or fail (and many will fail), her willingness to participate in the ecosystem on behalf of OKCoin ensures that the sector has another perhaps unexpected ally in the form of a centralized exchange. While it’s certainly in OKCoin’s interest to list tokens that can generate trading revenues, the holistic approach taken by providing developer grants, oracle development, and a willingness to widen access to specific but important parts of the ecosystem tell a tale of a continued commitment to the principles of DeFi and crypto as a whole.
Disclaimer: Rory is an active trader and investor holding positions in several cryptocurrencies as well as equities and other private investments at any point.
Author: Rory Murray
Revealing crypto exchange’s physical location was not harmful, court rules
A federal judge has ruled that an employee who revealed the location of a major crypto exchange did not violate its trade secrets.
According to court records filed Sept. 22, U.S. District Judge Maxine M. Chesney has dismissed a lawsuit filed by Payward Inc. — the owner of Kraken — against former employee Nathan Peter Runyon for misappropriating “trade secrets” by publicly disclosing the exchange’s physical address in San Francisco and accessing one of the company’s protected computers.
The Judge ruled that Payward was not alleging Runyon used the address to gain an economic advantage, nor did the complaint include facts that accessing the computer caused “damage or loss, in any amount, to Payward.”
Runyon published the address in a November 2019 lawsuit he filed against the exchange in connection with alleged breach of contract and sanctions violations. He accused Kraken of unethical and illegal business tactics, defrauding employees over their stock options, sanctions violations, discrimination against him as a disabled military veteran and faking company officer addresses.
Payward filed the suit against Runyon in March, stating that keeping its address secret protects it from physical threats including workers being kidnapped. The exchange also claimed that by publishing its address, Runyon had breached the terms of his original contract fr when he was employed as a financial analyst from March 2018 to August 2019.
Judge Chesney stated that Payward will have the right to file an amended complaint against Runyon before Oct. 9.
Author: by admin
Cryptocurrency: Tips on Trading Picks
Read this article to learn more about cryptocurrencies and trading as we’ll share our top tips.
The cryptocurrency market is decentralized, meaning it is not backed by a central authority like a government or a central bank. It first appeared in 2009 after the introduction of Bitcoin, and it runs across a network of computers as cryptocurrencies are stored on the blockchain and exist only as a digital record. Today, there are multiple cryptocurrency markets as the industry continues to grow and more individuals are opting for crypto payments because they are faster and more secure than traditional methods of payment.
Bitcoin is not the only cryptocurrency on the market anymore. Many others have appeared since 2009, including Ethereum, XRP, Litecoin, Tether, Monero, etc. With over 5,000 cryptocurrencies, making the right choice is quite a challenge.
The choice can be even more difficult if you haven’t had a chance to deal with cryptocurrencies and trading before. So, by reading this article you will learn everything about cryptocurrencies and trading as we’ll share our top tips.
Ultimately, it all comes down to how much you’re willing to risk to set sail in the unpredictable waters of cryptocurrency. With a continually growing number of cryptocurrencies on the market, Bitcoin remains stable and predictable. Bitcoin’s all-time high was $20,000 and since then it has stayed below that number. If you want to avoid risks, it’s better to stick with a verified option like Bitcoin.
Don’t get us wrong, there are other currencies worthy of investment, like Ethereum, Litecoin, and Ripple. These currencies have proven to be stable and trustworthy over time.
However, there are more risky investments than there are safe ones. With that in mind, it’s not a bad idea to diversify your investments. What do we mean by that? Invest in more stable cryptocurrencies to strengthen your investment portfolio. It’s an excellent way to start out in the crypto world as most of these currencies keep their price fluctuations to a minimum.
If you’re part of a digital currency company, you should be on the lookout for Initial Coin Offerings (ICOs) as they represent the best and quickest way to come up with working capital. Similarly, with ICOs the company will be the first to roll out the new cryptocurrency. If you’ve ever been involved in the stock market, you’ll find this process similar as it involves “betting” that a company that can deliver something and getting returns on your initial investment.
With ICOs, you will have to rely on your intuition and understanding of the offering as there are no historical charts, reviews, or background information about the currency. Also, keep an eye on the team behind the offering and how the cryptocurrency stands out from the crowd. Since you’re starting out with a brand new cryptocurrency, investing in a great ICO could help you maximize your investments. ICOs are great opportunities if you regularly keep track of the trends in the industry.
Missing out on ICOs is possible as the market is quite competitive, but not all hope is lost if that happens to you. You’ll get a chance to purchase the cryptocurrencies on cryptocurrency exchanges.
Our advice is to stick with less-known exchange platforms as the possibility of finding a better investment is higher there. Renowned exchange platforms tend to limit the currencies they trade. Do more research before you opt for crypto exchange platforms.
We are not discouraging you from listening to a company’s representatives, but we are saying that it’s not enough. You should do proper independent research so you can have a clearer picture of what you’re dealing with.
An important tip before you start trading any cryptocurrency is to look at their historical charts. Don’t get stuck at the price chart, but also pay attention to the market cap and circulation. When checking the cryptocurrency’s full history, look for stability. Ultimately, stability in this volatile market is of the essence. Any cryptocurrency you choose to invest in should ideally showcase continuous growth as well.
Don’t forget to find out more about the company offering the digital currency as you could gather plenty of information about their plans and potential problems. Opt for companies that are able to back their ideas and use innovative technology to advance in this competitive industry.
There are also some things that you should avoid when doing full background checks. If you come across currencies that have suffered significant drops in their market cap, large corrections, and big peaks, it’s best to give them a pass. Those are indications of a dying demand.
Once you make a decision about which cryptocurrency to invest in and trade, keep a watchful eye, and monitor your portfolio daily. Read crypto news and follow up on crypto investments. Independent research should still remain your number-one priority before investing.
Other cryptocurrencies might not have the same rapid growth path as Bitcoin, but picking the right cryptocurrency to invest in can result in lucrative returns.
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Bill Proposes National Crypto Regulatory Framework – CoinDesk
A new bill could bring cryptocurrency exchanges under a single federal framework.
The Digital Commodity Exchange Act of 2020, introduced Thursday by Rep. Michael Conaway (R-Texas), seeks to create a federal definition of “digital commodity exchanges,” putting them in their own legal category and charging the Commodity Futures Trading Commission (CFTC) with oversight.
The bill outlines a new framework for digital currencies, treating them similarly to commodities under the Commodities Exchange Act, which governs that asset class. Under the framework, crypto exchanges would enjoy a federal jurisdiction, allowing them to operate in the entire U.S. rather than applying for 49 different state money transmission licenses. The DCEA also allows for certain types of initial coin offerings.
If passed, the act would streamline a number of disparate cryptocurrency regulations in the U.S., creating legal clarity for token issuers and lowering the barrier to entry for exchanges hoping to operate in a compliant manner.
“The proposed legislation builds on the existing commodity market practices required of Futures Commission Merchants (FCMs) to protect customer assets. DCEs would be required to segregate customer assets and hold them in separately regulated entities which are licensed to custody digital assets,” a summary of the bill said.
Conaway is the ranking member on the House Committee on Agriculture, which oversees commodity exchanges in the U.S. The committee’s Senate counterpart, the Senate Committee on Agriculture, Nutrition and Forestry, oversees the CFTC.
The DCEA wouldn’t create prescriptive rules on how exchanges can comply with the new law. Rather, it would describe the requirements and let the exchanges themselves figure out the best way to meet those requirements.
The idea of regulating cryptocurrencies under a single, nationwide regime has attracted renewed interest this summer. The Conference of State Bank Supervisors announced earlier this month that it was consolidating its supervision exams for certain crypto exchanges, and there may be plans in the works to streamline the application process for startups to avoid needing more than 50 state and territory licenses in order to operate nationally.
The Office of the Comptroller of the Currency, a federal banking regulator, wants to bypass the state-by-state regime entirely, instead creating a national payment charter that would let exchanges operate across state lines.
The DCEA follows the latter path, but shifts crypto assets into a familiar framework and grants the CFTC primary supervisory authority over the space.
If enacted, the bill would preempt the state money transmitter licensing regime entirely.
“What we’re proposing is first, a simplification of the multi-state money transmitter license regime but, second, a more appropriate regime which addresses all the aspects of the business of operating a trading venue,” Conaway said through a spokesperson.
The DCEA would essentially mimic existing regulations around futures commission merchants, creating similar rules around customer fund protection, cybersecurity, capital requirements, public reporting requirements, governance standards, conflict of information reporting and other issues.
“This should also help to better define the line between SEC and CFTC jurisdiction: pre-sale agreements will continue to be regulated by the SEC, but there will be less need for continued SEC wariness once the tokens are delivered and the network is live because the CFTC will be picking up the regulatory slack and supervising sales to the public upon network launch,” said Peter Van Valkenburgh, director of research at industry think tank Coin Center.
State regulators might not have the same authority over order books or matching engines the way federal markets regulators do. In other words, a national regulator like the CFTC might have an easier time finding or stopping wash trading and similarly deceptive practices.
Companies could voluntarily register but would not be required to shift from the state-level regime if they didn’t want to.
“If a company has gone through the work of getting individual state money transmitter licenses and it likes the regime it is operating under, we’re not going to require that it give those up and come into a federal regime,” the aide said. “But, if it does come into a federal regime, with regulations which cover more aspects of its business, it will have the opportunity to innovate and serve customers with more complex products.”
Perhaps the more daring aspect of the DCEA is a carve-out for token creation and sales. At present, initial coin offerings fall under the Securities and Exchange Commission’s (SEC) remit. The federal securities regulator has treated almost all such token sales as securities sales, either bringing enforcement actions against unregistered offerings or allowing registered sales.
Under the DCEA, companies would be able to raise funds by selling tokens to investors, and remain subject to the SEC during this period. However, if the companies then deliver a token which meets the definition of a digital commodity under the new bill, “transactions involving that asset would be subject to the regulatory regime provided in the DCEA,” the document said.
The bill also provides for token presales. This restricts the initial trading or secondary market sales of the tokens to either individuals who could have participated in the original securities sales or under specific conditions.
This changes if and when a regulated exchange believes the token cannot be easily manipulated and lists it for public trading.
The summary likened the process to the one existing designated contract markets follow when listing new derivatives contracts, but noted it will depend on the specific purpose of a digital commodity.
The bill is unlikely to pass before the upcoming election, but with its introduction, the general public can begin providing feedback or suggestions on how to improve it for a future Congressional term.
“The introduction of this bill in this Congress is an important step in a process that is likely to play out more fully when the new Congress convenes in January,” Van Valkenburgh said. “At that point we expect to see the bill re-introduced which would then allow for the process including possibly hearings and then committee consideration.”