Month: April 2021

Binance Stock Trading Draws Attention of UK financial Regulators

Binance Stock Trading Draws Attention of UK financial Regulators

The U.K. Financial Conduct Authority (FCA) and other European regulators are concerned about whether Binance’s new stock trading feature complies with security laws.

Binance Under Scrutiny for Listing Stock Tokens
Leading crypto exchange Binance launched stock trading on Apr. 12. While cryptocurrency enthusiasts celebrated the launch of the new trading feature, regulators were not as content.

A recent report from the Financial Times reveals that the U.K.’s Financial Conduct Authority is working with the trading platform to determine whether its stock tokens comply with security rules.

The financial watchdog is reportedly examining the “governing transparency and corporate disclosures” that may apply to these stock tokens and the methods by which they can be marketed.

It also emphasized that only Binance is responsible for verifying whether these financial products represent securities.

The FCA told the Financial Times that it is “working with [Binance] to understand the product, the regulations that may apply to it and how it is marketed.” It also stated that “firms and senior management teams are responsible for determining whether their products and services fall within the remit of the FCA.”

Digital Asset AG Says It Is Compliant
Binance maintains that stock token trading was made possible thanks to a partnership with CM-Equity AG and Digital Assets AG. Both groups are regulated entities that trade items that that do not require a prospectus—something that would be required if the tokens were considered securities under EU law.

Along the same lines, Brandon Williams, Digital Asset AG’s corporate development lead, told Crypto Briefing that it always begins its efforts by interacting with regulators.

“As expected, various regulators’ interests will be piqued, as with any monumental or ‘new’ activity.” Williams explained. “The incumbent institutions of traditional finance will always prefer the status quo, but we choose innovation and efficiency.”

Williams added that stock tokens do not give the same voting rights that equity shareholders get, which means that these financial products can be compared to synthetic stocks.

“We believed our method of tokenization would have more staying power and more easily find acceptance within the various crypto communities as well as TradFi. At the end of the day, synthetics are just another derivative product,” Williams concluded.

Bitcoin Drops Below $50,000 Amid Tax rise and Momentum Concerns

Bitcoin Drops Below $50,000 Amid President Joe Biden Tax rise and Momentum Concerns

Bitcoin declined for the seventh time in eight days, extending losses after President Joe Biden was said to propose almost doubling the capital-gains tax for the wealthy.

The slide pushed Bitcoin down as much as 6.1% to about $48,432 in Friday trading as it continued to lose momentum. JPMorgan Chase & Co. and Tallbacken Capital Advisors LLC had recently warned there was potential for further downside after the largest cryptocurrency fell back from its record high of $64,870 on April 14 and took out key technical levels.

“Bitcoin has slipped below the 50-day moving average support that it held sacrosanct through this rally,” said Pankaj Balani, CEO of Delta Exchange. “It looks like there is more downside here.”

Tax concerns may be weighing, too — as they did on American stocks Thursday. U.S. investors in the digital asset, which has advanced more than 70% this year despite its recent pullback, already face a capital gains tax if they sell the cryptocurrency after holding it for more than a year. But the coin’s been one of the best-performing assets in recent years — anyone who bought a year ago is sitting on a nearly 550% gain. For investors who bought in April 2019, it’s roughly 800%.

“One of the biggest things you have to worry about is that the things with the biggest gains are going to be most susceptible to selling,” said Matt Maley, chief market strategist for Miller Tabak + Co. “It doesn’t mean people will dump wholesale, dump 100% of their positions, but you have some people who have huge money in this and, therefore, a big jump in the capital gains tax, they’ll be leaving a lot of money on the table.”

The IRS has stepped up enforcement of tax collection on crypto sales. The agency — which began asking crypto users to disclose transactions on their 2019 individual tax returns — asks taxpayers whether they “received, sold, sent, exchanged or otherwise acquired any financial interest in any digital currency.”

Still, investors may need to buckle up for more volatility in the near-term.

“People have been talking about the capital gains tax and U.S. stock-market selloff being the catalyst of this,” said Todd Morakis, co-founder of digital-finance product and service provider JST Capital. “If it is true we’ve moved too much — but once Bitcoin gets a head of steam it is tough to stop unless you are at a technical area.

Natwest Bank to Refuse Service to Businesses That Accept Crypto

Banking Giant Natwest to Refuse Service to Businesses That Accept Cryptocurrencies

The major retail and commercial financial institution National Westminster Bank (Natwest) has categorized cryptocurrencies as “high risk” and refuses to serve business customers who accept digital assets for payments. A Natwest board member, Morten Friis, explains the bank has no appetite for dealing with these types of customers as Natwest is taking a “cautious approach” toward this technology.

Natwest Will Refuse to Do Business With Companies That Accept Cryptocurrencies
Reports show that the popular UK-based financial incumbent and wealth manager Natwest is refusing to serve business customers who accept cryptocurrencies. The same bank established in 1968 from a merger between Westminster Bank and National Provincial that suffered from intense scrutiny after being involved in the stock market crash of 1987.

The report written by theguardian.com’s banking correspondent Kalyeena Makortoff explains that Morten Friis, a Natwest board member and head of the bank’s risk committee is taking an adverse approach toward crypto-assets. Friis notes that the bank has no cravings for dealing with crypto customers and digital assets are “high risk” from Natwest’s perspective.

“We have no appetite for dealing with customers, whether taking them on as new clients or having an ongoing relationship with people, whose main business is backed by an exchange for cryptocurrencies, or otherwise transacting in cryptocurrencies as their main activity,” the bank’s risk manager stressed during a shareholders meeting on April 21.

Friis further asserted:

We think of cryptocurrencies as high risk and we’re taking, for that reason, a cautious approach to this. It’s an area where regulation is very much in evolution and we’ll obviously respond to that as things change.

A Few Banks Are Taking a Stand-off Approach Toward Crypto-Assets
Natwest’s current opinion echoes the same warning the UK’s Financial Conduct Authority (FCA) issued in March. The FCA warned that “younger investors are taking on big financial risks.” Moreover, the financial incumbent HSBC has been taking a stand-off approach toward crypto assets as well. Essentially, HSBC has chosen to bar investors from buying into stocks from firms that hold bitcoin. Reports this week also indicate that HSBC is even taking issues with Coinbase shares (COIN).

The bank Natwest has not been without controversy, even beyond the market rout on ‘Black Monday’ back in 1987. Ten years later in 1997, the corporate and investment banking arm Natwest Markets disclosed that the banking group had lost £50 million. Further research proved the loss was upwards of £90.5 million and because of these further investigations, faith in Natwest declined rapidly. However, the Bank of England (BoE) stepped in and curbed the resignation of top Natwest officials.

In 2016, Bitcoin.com News reported that Natwest was one of the first UK high street banks to introduce the charging of negative interest rates against its customers. Reports at that time noted that only business customers would feel the new policy, but the announcement shook markets and caused faith to drop as well.

Many crypto-asset supporters would say that Natwest is a shining example of why bitcoin and the myriad of digital assets exist. From the controversies in 1987, 1997, 2016, even today, the bank has witnessed a declining trust from the public. More recently, the Financial Conduct Authority (FCA) invoked criminal proceedings against Natwest for allegedly failing to comply with money laundering rules.

 

Bitcoin price rolls on the runway ready for takeoff to $70,000

Bitcoin price rolls on the runway ready for takeoff to $70,000

Bitcoin spurred action across the cryptocurrency market on making a confirmed break above $60,000. Moreover, lifting above the recent all-time high near $62,000 proved to investors that the bull run had returned. Buyers rushed into the market on Tuesday, adding weight to the bullish outlook. At the time of writing, Bitcoin dodders slightly under $64,000 amid the renewed bullish outlook.

Bitcoin bulls back in the cockpit
The flagship cryptocurrency is trading within the confines of an ascending parallel channel, as illustrated on the four-hour chart. Breaking above the middle boundary paved the way for gains eyeing a spike to highs above $65,000 and toward $70,000.

It is worth mentioning that the Moving Average (MACD) indicator puts the bullish narrative into perspective. The recent MACD line (blue) strike above the signal line added credence to the bullish outlook. As long as the technical picture remains intact, the bellwether cryptocurrency may hold the uptrend to new historical highs.

BTC/USD four-hour chart

The 50 Simple Moving Average (SMA) on the four-hour chart has sustained the position above the 200 SMA since the golden cross at the beginning of April. In other words, this technical picture confirms the buyers are firmly in control.

As the bulls reach new all-time highs, a break above the upper channel’s edge would trigger more buy orders as the fear of missing out (FOMO) grips investors. Speculation for a rise to $70,000 will likely increase, steadying Bitcoin’s journey.

Bitcoin intraday levels
Spot rate: $63,730

Trend: Bullish

Volatility: Growing

Support: $63,000, $62,000 and $60,000

Resistance: Ascending channel’s upper edge

The post Bitcoin price rolls on the runway ready for takeoff to $70,000 as market cap nears $2 trillion appeared first on Coingape.


Source – Coin Market Cap 

 

Binance exchange to list Coinbase stock token later on today

Binance exchange to list Coinbase stock token later on today

Crypto exchange Binance is set to list rival Coinbase’s stock token today.

The listing will take place at a UTC time after Coinbase goes public on Nasdaq. The specific time isn’t known yet. The listing will allow Binance users to trade Coinbase stock in fractions.

Binance started trading in tokenized stocks earlier this week, beginning with Tesla. At the time, the exchange said it would list more stock tokens based on market demand.

The Tesla stock token has seen a trading volume of $6.7 million within three days of its listing on Binance.

Binance’s stock tokens are priced and settled in BUSD, meaning users can buy and redeem them via the exchange’s stablecoin.

Interested traders are required to pass know-your-customer and other relevant compliance measures. However, residents of the U.S., mainland China, Turkey, and other restricted jurisdictions are barred from buying stock tokens on Binance.

Since Binance follows traditional market hours for tokenized stock trading, the Coinbase stock token will follow Nasdaq hours.

It is not clear who will help Binance settle the Coinbase stock token. The Block has reached out to Binance and will update this story should we hear back.

Source – The Block Crypto 

XRP Surging Towards $2, Bitcoin and Ethereum Extend Rally

XRP Surging Towards USD 2, Bitcoin and Ethereum Extend Rally

Bitcoin price started a strong increase above the USD 62,000 level. BTC even broke the USD 63,500 level and it traded to a new all-time high. It is currently (04:00 UTC) showing positive signs and it could soon continue higher above USD 64,000.

Similarly, most major altcoins are gaining bullish momentum. ETH is accelerating gains and it even broke the USD 2,300 level. XRP is also outperforming and it is now trading above USD 1.80.

Bitcoin price
In the past three sessions, bitcoin price gained bullish momentum above the USD 62,000 level. BTC even broke the USD 63,000 and it traded to a new all-time high above USD 63,800. It seems like the price might continue higher above the USD 64,000 level. The next major resistance is near the USD 64,500 level.
If there is a downside correction, the USD 63,000 level is an immediate support. The next major support is now forming near the USD 62,200 level.

Ethereum price

Ethereum price is gaining pace above the USD 2,250 and USD 2,300 levels. ETH traded to a new all-time high near the USD 2,350 level. The current price action is positive and it seems like the bulls are aiming for more gains towards the USD 2,400 level.
On the downside, USD 2,300 level is a major support. Any more losses may possibly lead the price towards the USD 2,265 level.

BNB, ADA, litecoin, and XRP price
Binance Coin (BNB) is lagging bitcoin, but it is slowly rising above USD 550. BNB is trading above USD 565 and it might continue to rise towards the USD 580 resistance. The next major resistance is now forming near the USD 600 level. The main support is now forming near USD 550.
Cardano (ADA) is up over 10% and it is gaining pace above USD 1.400. ADA is rising and it is trading above USD 1.465. A clear break above the USD 1.50 resistance could open the doors for a strong increase. The next major resistance is near the USD 1.62 level.
Litecoin (LTC) is up 12% and it broke the USD 265 resistance. LTC is now trading above USD 275 and it might attempt an upside break above the USD 280 level. If there is a downside correction, the USD 268 and USD 265 levels might provide support.
XRP price is outperforming bitcoin and it rallied over 25%. The bulls were able to push the price above the USD 1.80 level and it seems like they are aiming for a test of the USD 2.00 level.

Other altcoins market today
Many altcoins gained over 10%, including DOGE, IOST, EOS, BCH, BSV, MATIC, VET, RUNE, TRX, ETC, LINK, XLM, ATOM, LTC, ZEN, QTUM, and HBAR. Out of these, DOGE rallied over 50% and it even broke the USD 0.10 level.

Overall, bitcoin price is gaining pace above the USD 63,000 level. If BTC extends gains above USD 64,000, there are chances of a move towards the USD 65,000 level.

Source – CryptoNews 

Author Robert Kiyosaki Predicts Bitcoin Price Will Be $1.2 Million in 5 Years

Author Robert Kiyosaki Predicts Bitcoin Price Will Be $1.2 Million in 5 Years

Robert Kiyosaki, the best-selling author of “Rich Dad Poor Dad,” has predicted that the price of bitcoin will increase to $1.2 million within five years. Kiyosaki revealed that he bought bitcoin at $9,000, adding that he may buy the cryptocurrency again “today or tomorrow just because I’m more bullish on it.”

Robert Kiyosaki Expects Bitcoin’s Price to Surpass $1 Million in 5 Years
Robert Kiyosaki has shared his prediction of how high he thinks bitcoin’s price would be. The Rich Dad Poor Dad author accurately predicted in December last year that the price of the cryptocurrency would reach $50,000 in 2021.

Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. Over 32 million copies of the book have been sold in over 51 languages across more than 109 countries.

Kiyosaki was asked in an interview with Kitco News last week if it is too late to buy bitcoin at the current price of between $50,000 and $60,000. Noting that “There is always the entry point,” the famous author proceeded to share: “I bought bitcoin at $9,000 and I thought I was being fleeced but the reason I bought it at $9,000 was because Covid shut down the world economy,” he said, adding that “I wish I bought it at 10 cents like a lot of people did.”

He continued, “But now I look like a genius,” given the price of bitcoin is currently around $60,000. He additionally pointed out that money printing by the government, excessive stimulus, and the devaluation of the U.S. dollar are what give bitcoin and gold their appeal. The Rich Dad Poor Dad author elaborated:

I think it’s going to $1.2 million in five more years.

Regarding his bullish BTC price prediction, he was further asked whether he thinks the government would intervene in one form or another. Several notable people believe that the government could take serious measures against cryptocurrency, including outlawing bitcoin, including Bridgewater Associates founder Ray Dalio, The Big Short’s Michael Burry, and Ron Paul.

“I think they [the government] will try,” Kiyosaki replied. “But, the problem is too big,” he exclaimed. “Our pensions are going bust. Baby boomers have no money. They shut down the economy. They’re gonna print … another $1.9 trillion. So, it has never worked. It’s Gresham’s law. Bad money drives out good money. So, when a guy like me gets my hand on bitcoin, I’ll never spend it.” He noted that as a real estate guy, like former President Donald Trump, when he needs money, he would borrow it and spend the “fake money.”

While affirming that he still advocates for bitcoin, Kiyosaki admitted: “I prefer gold and silver because bitcoin is still untested.” Nonetheless, he proceeded to explain: “But I have the wherewithal to withstand the hit if it goes down. But gold and silver are God’s money. I know because I’ve traveled the world looking for this stuff.” Clarifying that he is “not really religious,” the famous author reiterated: “I’m very much in favor of gold and silver because it’s God’s money. God put it here.”

Kiyosaki also revealed that he may buy bitcoin “again today or tomorrow just because I’m more bullish on it.” However, he opined: “I’m not bullish on gold over bitcoin. I’m just bearish on Biden and his communist gang. That’s what I don’t like. I don’t trust the academic elite that’s called Bernanke and Yellen and now we have Powell. These guys are communists. They’ll print money. They’re central bankers.”