UK FCA Warns Investors against Crypto Brokerage Markets Pilot
The UK Financial Conduct Authority (FCA) released a brief statement on Monday, warning investors against unauthorized firms that are soliciting investments from Britons.
The FCA warned investors of using extreme caution while dealing with companies offering crypto services. It also flagged a broker called Markets Pilot for offering unauthored crypto-related services to Britons. The company posed to be an authorized firm, and a brand of Click World Ltd, Cnr Old, and Church Street. The company is also targeting investors in the UK providing them offshore investment services.
The regulator has asked all investors approached by Markets Pilot to contact them. Any person who has transferred money to the company was asked to report to Action Fraud. The regulator also emphasized that dealing with any unauthorized firm means that the investors will lose their protection from the UK lifeboat scheme. They will also not be able to make use of the Financial Ombudsman Service.
A new set of rules banning derivatives trade for retail investors will be effective on January 6, 2021. It will be affected options and futures, exchange-traded notes (ETNs) related to cryptocurrencies, and CFDs to retail customers. According to the FCA, investors will save over $69 million in losses due to the ban. However, it will not force them to liquidate any existing trades.
The regulator suggests that these products are not well suited to retail customers. The government is planning to bring crypto-asset promotion under the oversight of the FCA instead of creating a new framework. To protect the investors, the authorities said that regulated firms dealing in cryptocurrencies will also have to get FCA authorization before they are able to provide such services to customers.
From January 2021, the FCA will have more control over crypto promotions in the country which will help it in removing misleading ads targeting retail customers as well.
Facebook-Backed Cryptocurrency Project Libra Rebrands With a New Name: Meet Diem
You may have forgotten about Facebook’s cryptocurrency project Libra, but it’s back—with a new name. The Libra Association has rebranded itself as Diem, the Latin word for “day,” in an effort to gain approval from financial regulators across the globe.
“We are excited to introduce Diem—a new name that signals the project’s growing maturity and independence,” Diem Association CEO Stuart Levey, a former US Treasury Department under secretary, said in a statement.
The rebranding occurs as Diem is preparing to launch next month as a single coin, “backed one-for-one by the dollar,” according to The Financial Times, citing unnamed sources. However, the launch is dependent on approval from Swiss financial regulators.
Facebook originally launched the cryptocurrency project last year to give internet users an easier way to send money without needing to register through a bank. However, regulators—including US lawmakers—have been resistant to the plans, arguing it would give too much financial power to a tech giant known for repeatedly mishandling users’ private data.
In October 2019, the project faced another setback when the biggest partners on the project—including PayPal, eBay, Stripe, Mastercard and Visa—pulled out of the Libra Association. Since then, PayPal has decided to support buying and selling select competing cryptocurrencies, such as Bitcoin and Ethereum, over the company’s app and Venmo.
Levey reiterated that Diem is focused on meeting “regulatory expectations,” while ensuring consumers and businesses can send and receive money instantly at low costs. Levey also emphasized the Diem Association has a top team of financial executives in place that’s helped make the virtual currency ready for launch.
“The Association has committed that it will proceed only upon receiving regulatory approval,” today’s statement added.
Interestingly, the Diem Association’s website also avoids mentioning Facebook. The group insists it’s an independent organization based in Switzerland. However, one of its board of directors is David Marcus, the head of Novi Financial, a Facebook subsidiary focused on building a digital wallet for the upcoming Diem cryptocurrency.
Although government regulators have been resisting the project, the market for virtual currencies has been bullish in recent months. The value of Bitcoin has soared back to its 2017 height at over $19,000 per coin. So it’s possible 2021 could be a good year for Facebook’s Diem effort to finally take flight.
Basics Of Trading Cryptocurrency
The text below is an advertorial article that was not written by Cryptonews.com journalists.
Trading is a common economic concept that involves the exchange of goods and services between trading parties. However, trading in cryptocurrency is a bit different from trading in any other asset. Primarily, a cryptocurrency refers to a digital asset that’s secured by cryptography, making it nearly impossible to counterfeit or double-spend. Moreover, due to this digital asset’s volatile nature, cryptocurrency has been a popular asset for trading.
Thus, if you want to become a successful crypto trader, keep reading this article to learn about the basics of trading cryptocurrency.
Before getting started with the trading, the first thing you should do is select a good crypto exchange. It’s a business that allows you to make cryptocurrency trades for other assets, such as traditional fiat currencies or other digital currencies.
Typically, choosing the right crypto exchange is one of the important things a new trader should do. When you use the wrong platform, it may lead to trading problems, lost money, and wasted efforts. Because of this, it’s important to find the appropriate one for your needs. For example, you should consider in the selection process whether you simply want to invest on a long-term basis or trade in and out of positions regularly. That way, you’ll get the perfect platform to get started with your crypto trading journey.
Of course, you need to decide which cryptocurrency you may want to trade in. Unfortunately, selecting a digital currency for the trading may not be easy since there are plenty of cryptocurrencies to choose from. But, if you’re new to this trading market, you may consider trading in one of the well-known cryptocurrencies with high market cap, such as Bitcoin, Ethereum, and XRP.
Trading cryptocurrency isn’t just about exchanging a certain digital currency for another valuable asset. It’s also about generating more money as a result of your trading efforts. However, just like other forms of trading, dealing with cryptocurrency can be challenging.
Thus, if you want to ensure a successful trading experience with higher returns on your investment, you should have a solid trading strategy in place. And, as you consider your strategy, the following are a few things to keep in mind:
Indeed, there are still many things to learn about cryptocurrencies and trading them. While they’re considered a popular asset in financial market, trading digital currencies should be done with utmost caution to avoid significant losses.
Therefore, if you’re new to crypto trading, keep the tips mentioned above to ensure a successful trading experience from beginning to end.
Author: By Sponsored