U.S. SEC Suspends BTC & ETH — ETNs Trading
The U.S. Securities and Exchange Commission (SEC) temporarily suspended trading of bitcoin and ethereum ETN’s by XBT Provider. The constraints will last until September 21 and limit Bitcoin Tracker One and Ether Tracker One stock exchange-traded notes (ETN). The message of the American regulator mentions "confusion" among the market participants regarding the nature of these instruments.
WHY IS IT IMPORTANT?
- According to SEC, some broker-dealers who applied for the opening of trading by cryptocurrency ETNs called them cryptocurrency ETFs. And the issuer himself calls the products "non-equity linked certificates." Under the securities law, the
- Commission can protect investors by suspending the trade of any security for no more than 10 working days. It is assumed that during this period, market participants will understand the situation.
China Keeps Trading Crypto Despite Ban?
As a first step to avoid existing bans, traders are converting their Yuan to “Tether”, which is a stable coin backed by U.S. Dollar. They then trade their tether directly to others after completing KYC (Know-Your-Customer) procedures on exchanges individually.
Once Tether has arrived at their wallets, they use a VPN (Virtual Private Network) to convert it into different cryptocurrencies. The same method is applied to exit from the market.
WHY IS IT IMPORTANT?
- It is technologically possible to block or ban VPN. However, it is a substantially difficult process.
- Local regulators are working on a way to encourage third-party payment operators to reject transactions related to cryptocurrency trading.
Vitalik Buterin: Thousand Fold Crypto Growth is Over
Ethereum founder Vitalik Buterin believes that crypto assets market will not see more periods of such explosive growth as was usual in the past. According to him, there are no prerequisites for this anymore.
Buterin thinks that the reason behind the market recovery in 2017 and previous years when prices of digital assets showed a thousandfold increase, had been marketing and attempts to widely disseminate information about new technologies.
WHY IS IT IMPORTANT?
- Now, said Buterin, the community has moved to a new stage — instead of generating news to attract new investors, real scenarios of technology use are spreading.
- Ethereum creator has also added that the marketing strategy of the past years is already at an impasse. The new task for the community, in his opinion, is to develop an ecosystem at the expense of those who can utilize blockchain products in the real economy.
Report: Citigroup Rushing For Bitcoin-ETF Alternative
Citigroup, an American banking conglomerate, plans to release a new tool for crypto investments dubbed "Digital Asset Receipt" (DAR), or receipts for crypto assets. The new tool will allow owners to trade digital currencies without owning them directly.
DAR will operate as an improved version of American depositary receipts (ADR), through which investors can trade sets of securities not represented in the US market. The digital assets themselves will be stored by a separate custodian.
WHY IS IT IMPORTANT?
- If the instrument is approved, institutional investors will have a new opportunity to enter the cryptocurrency market. However, the position of the regulator is very difficult to predict, given the recent actions of the U.S. Securities and Exchange Commission. Applications to open a Bitcoin-ETF so far have received red light only, and last weekend the agency has suspended ETN trade from XBT Provider.
UAE Approves ICO Regulations
The United Arab Emirates’ Securities and Commodity Authority (SCA) has prepared and approved a set of laws regarding ICOs. The Minister of Economy and Chairman of SCA Sultan bin Saeed Al Mansouri has said that as the result of work and study of international best practices, the watchdog is planning to recognize Initial Coin Offerings (ICOs) as securities.
WHY IS IT IMPORTANT?
- In October 2017 UAE’s Financial Services Regulatory Authority (FSRA) presented its guide on ICOs. Back then, the financial watchdog said that virtual currencies were not legal tender. Instead, they should be seen as "commodities" in the same vein as precious metals or natural resources such as oil and gas, and therefore, they are to remain unregulated.
- Under the new laws, ICOs that run in the country will be defined as securities.
At 16:00 (GMT+1) total cryptocurrency market capitalization stands at $195,9 billion
Bitcoin (Bitcoin) $6342 (-1,24%)
Ethereum (ETH/USD) $196 (-4,04%)
XRP (XRP/USD) $0,26 (-6,08%)
Bitcoin Cash (Bitcoin.Cash) $476 (-2,66%)
EOS (EOS/USD) $5,07 (-0,76%)
Tether (+0,01%) showed the best growth in the top-10
Waves (+15,42%) showed the best growth in the top-100
Market Dynamics
The trading volume of cryptocurrencies for 24 hours reached $10,7 (-2,28 billion per day)
Mining Profitability
BTC $2,2 for 10 TH/s
ETH $0,15 for 10 MH/s
BCH $0,22 for 1 TH/s
LTC $3,30 for 1 GH/s
DASH $0,11 for 1 GH/s
Ongoing ICOs:
Expected ICOs:
- 13 September PavoCoin
- 18 September eMusic
- 1 October Open Packaging Network
- 1 October Tiberius
- 2 October CryptoCasher
Click here for the full list of ongoing ICOs.
En.Insider.pro is now on Telegram! Follow up the most important news from the crypto world by subscribing to our channel.