Cryptocurrencies turn red as Japan’s FSA considers a leverage cap on cryptocurrency margin trading
Oct 25, 2018
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- According to four different studies conducted by institutional authorities, between 3% and 5% of Canadians own Bitcoin (BTC). One study cited by the Bank of Canada finds that Bitcoin awareness in Canada has steadily risen from 64% in 2016 to 85% in 2017. The studies also find that survey participants’ reason for owning BTC changed from transactional purposes in 2016 to investment purposes in 2017. Francis Pouliot, CEO of Bylls, cited these four studies, saying adoption of BTC and cryptocurrencies is “real”.
- In reporting its quarterly financial results on Wednesday, semiconductor manufacturer Advanced Micro Drives (AMD) detailed that its, “blockchain-related graphics processing unit (GPU) sales in the third quarter were negligible.” Lisa Su, CEO of AMD, has previously stated that blockchain technology is, “a bit of a distraction, in the short term,” however, she later admitted the importance of blockchain technology, saying, “the idea you can do all these peer-to-peer transactions, a decentralized network, is a good technology.” AMD’s stock price fell 9% to close at USD$22.79/share in yesterday’s trading.
- Japan’s Financial Services Agency (FSA) is considering a cap on the amount of leverage investors can borrow for margin trading cryptocurrencies, according to a Nikkei report this Thursday morning. Currently, there are no restrictions on margin trading amounts in domestic Japanese markets with some exchanges offering traders an ability to leverage 25x their deposit. The FSA is reportedly considering a margin trading leverage cap of between 2x and 4x deposits. Currently, 16 licensed cryptocurrency exchanges in Japan offer margin-trading services while Japan’s self-regulating cryptocurrency body enforced a margin trading leverage cap of 4x deposits starting this July.
- Large US cryptocurrency exchange, Coinbase, was granted a motion to dismiss a lawsuit involving alleged insider trading of Bitcoin Cash (BCH) during its launch on Coinbase last year. In court, US District Judge, Vince Chhabria, of the Northern District Court of California found that Jeffrey Berk, the plaintiff in the case, had, “not sufficiently articulated the legal bases for his claims.” Berk accused Coinbase up ‘pumping’ the price of BCH higher immediately following it coming online on the Coinbase Exchange. Following the motion to dismiss, Berk and his legal representatives will have 21 days to file an amended complaint.
- Oracle Corporation, the software development giant, announced on Wednesday that it has released a suite of blockchain-based software-as-a-service applications on its Oracle Blockchain Cloud Services platform. According to the announcement, the blockchain-based software-as-a-service applications are designed to improve traceability and transparency in supply chains. Oracle released four different applications as a part of this announcement, including Intelligent Track and Trace, Lot Lineage and Provenance, Intelligent Cold Chain, and Warranty and Usage Tracking.
- Sony Computer Science Labs, the research arm of Japanese technology giant, Sony, announced in a press release Tuesday that it created a contactless cryptocurrency hardware wallet. Still unnamed, the new device leverages IC smart card technology in order to communicate with various cryptocurrency networks. The new device’s biggest advantage, according to developers from Sony Computer Science Lab, is that it dispenses the need to connect the cryptocurrency wallet through a UBS connection. In its press release, Sony explained, “This IC card-type cryptocurrency hardware wallet technology not only manages the private keys used for cryptocurrency transactions, but also manages private keys used for other purposes, such as those for permitting the use of personal information using blockchain technology.”
- Tech news outlet, The Block, is reporting that the Intercontinental Exchange’s (ICE) Bakkt cryptocurrency platform could receive approval from US regulators to launch physically-delivered Bitcoin (BTC) futures trading. The Block cites an anonymous source, “with direct knowledge of the situation,” who also said that Bakkt could launch Bitcoin futures trading as soon as the first week of next month. The anonymous source also alleged that DV Trading, a Chicago trading firm, will trade Bakkt’s Bitcoin futures product.
- The pitch decks used by Bitmain Technologies in soliciting investors for its upcoming initial public offerings reportedly contained false information, claiming the company had secured financial backing from Digital Sky Technologies Global and GIC Private Limited, according to CoinDesk. CoinDesk obtained three versions of the pitch decks, however, they were not able to verify their authenticity because Bitmain did not respond to CoinDesk’s multiple inquiries regarding the pitch decks. One version of the pitch deck claims that Bitmain had, “recently completed a USD$400 million Series B round of financing from Sequoia Capital, Digital Sky Technologies Global, and GIC Private Limited, with a pre-investment valuation of USD$12 billion.”
- The Spanish Ministry of Finance has enacted a draft law to close a legal loophole that allowed holders of Bitcoin (BTC) and other cryptocurrencies in Spain to circumvent asset declaration laws. The draft law was approved by the Council of Ministers early on Thursday and will require all Spaniards with off-shore currency holdings to declare their holdings in an annual declaration, whether those holdings are fiat are cryptocurrency. The newly enacted draft law is expected to raise tax revenues by 850 million euros.
*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio