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The cryptocurrency trading market is about to receive an influx of more big banks, hedge funds and other financial institutions within the next few months to a year. A new survey shows that while most are keeping quiet in public about their crypto plans, many are preparing to enter the field.
Big Players Prepare to Charge
Toronto-headquartered multinational information firm Thomson Reuters Corporation (NYSE: TRI), published a survey on Tuesday revealing that 20% of financial institutions are studying the possibility of entering the cryptocurrency trading space within the next 12 months period. Furthermore, 70% of those considering starting trading cryptocurrencies are planning to do so in the next three to six months, according to the survey.
The company says that the survey covered more than 400 of its clients across Thomson Reuters platforms including large asset managers, hedge funds and trading desks at the biggest banks. Over 300,000 financial professionals working in asset management, hedge funds and other institutions get access to cryptocurrency data (including price quotes for BTC, BCH and ETH) via the Thomson Reuters Eikon platform.
“Historically, the banking sector has been notoriously dismissive of the crypto movement. Cryptocurrency has variously been called a bubble, an asset for criminals, and worthless. But today’s survey demonstrates that while financial institutions are saying one thing, they’re doing quite another,” commented Kevin Murcko, CEO of cryptocurrency exchange Coinmetro. “We’re witnessing a gradual institutionalization of the market, and this is sure to drive mainstream adoption. The move to accommodate digital currencies is also a symbolic one; it’s a sign of growing maturity in the market, and represents just how far cryptocurrency has come since its days of relative obscurity,” he added.
Goldman Setting the Stage
The most talked about major bank as widely considered to be in the process of entering the field is Goldman Sachs, although its CEO has denied in the past the rumors they are setting up a bitcoin trading desk. On Monday it was revealed that the company has recently hired Justin Schmidt, a former quantitative trader, to be the first head of digital asset markets in the company’s securities division.
“In response to client interest in various digital products, we are exploring how best to serve them in the space,” Goldman Sachs spokeswoman Tiffany Galvin-Cohen confirmed in a statement. “At this point, we have not reached a conclusion on the scope of our digital asset offering,” she added.
The bank should be more than aware of the huge demand hedge funds and other big investors have for cryptocurrency trading services. Circle, which is backed by Goldman Sachs, has recently doubled minimum ticket size on OTC bitcoin trades to $ 500,000 with an average of $ 1 million. And Chief executive Jeremy Allaire has told Business Insider that some transactions are now larger than $ 100 million and “That watermark will continue to rise.”
Do you think it’s inevitable that all major banks will enter the bitcoin trading ecosystem? Share your thoughts in the comments section below.
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The man accused of massacring 17 at Marjory Stoneman Douglas High School may have a small fortune coming to him from his late mother’s estate. But Nikolas Cruz says he doesn’t want it. “He would like that money donated to an organization that the victims’ families believe would be able…
Ant Financial, carved out of Mr. Ma’s e-commerce giant Alibaba seven years ago, is preparing to raise $ 9 billion in a private funding round, up from a previous target of $ 5 billion.
WSJ.com: What’s News Asia
The Financial Services Authority of Japan has imposed penalties on three cryptocurrency exchanges following inspections of trading platforms in the country. Two of them have been ordered to suspend operations. Officials are not satisfied with the measures implemented to prevent money laundering and systemic risks.
FSHO, Eternal Link Suspended, Lastroots Told to Improve
The sanctioned crypto platforms – FSHO, Eternal Link, and Lastroots – have received orders to improve their business practices. These were issued by Japan’s financial regulator as part of the ongoing inspections of cryptocurrency exchanges. According to the Financial Services Authority (FSA), the penalties have been imposed because of unsatisfactory procedures to prevent money laundering and minimize systems risk.
The Japanese financial regulator has ordered two of the trading platforms to suspend their operations for two months. Eternal Link should halt activities from Friday, April 6, and FSHO was told to do the same on April 8, Reuters reports. Lastroots has received an order to improve its practices. Japan’s Minister of Finance is expected to present the full results of the investigations carried out by the FSA.
In March, FSA suspended two exchanges – the Nagoya-based Bit Station and again FSHO, which was ordered to terminate services until April 7. The agency said its operator was not performing thorough checks on large-scale transactions and had not implemented necessary measures “to run the exchange in a decent and assured way”. According to Japanese press, Bit Station was penalized because its senior officials were implicated in embezzlement of clients’ crypto deposits. Similar charges have led to the arrests of four high-ranking representatives of two cryptocurrency exchanges in South Korea.
In early February, FSA said it was inspecting all crypto trading platforms in the country, including 16 that were not registered at the time of the announcement. The financial authority published a list of 32 crypto exchanges, half of which had already obtained licenses to provide cryptocurrency exchange services.
Aftermath of a Huge Hack
Japan’s financial regulator undertook the revisions in the wake of the attack on Coincheck in January. Hackers stole ¥58 billion worth of NEM (~$ 550 million USD) from the Japanese exchange. Authorities are still investigating the heist, one of the biggest in crypto history. Cybersecurity experts have warned that half of the stolen NEM coins might have been laundered already on the darknet.
Cryptocurrency theft has become a major security issue in Japan, part of the growing cybercrime trend. Last year alone, $ 6.3 million worth of cryptocurrency was stolen, and that’s before the Coincheck hack.
Japanese authorities have decided to set up a center dedicated to combatting cybercrime, including crypto theft. 500 analysts and investigators from different branches of the country’s law enforcement agencies have joined the unit. At least 149 crypto-related attacks took place in 2017, Japan’s National Police Agency recently revealed.
Earlier this week, news came out that Tokyo-based Monex Group was considering buying Coincheck. On Friday, the deal with the online financial brokerage was confirmed. The team behind the hacked exchange has accepted the acquisition bid worth ¥3.6 billion Japanese yen (~$ 33.6 million USD).
Do you expect more cryptocurrency exchanges to be suspended by Japanese authorities? Share your thoughts on the measures taken by the FSA in the comments section below.
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Mick Mulvaney, President Trump’s appointee to oversee the Consumer Financial Protection Bureau, has given big pay raises to the deputies he has hired to help him run the agency, according to salary records.
Mulvaney has hired at least eight political appointees since he took over the bureau in…
During March 16th through till March 20th of this year, The Student Loan Report teamed with Pollfish to survey 1,000 current university students with related loan debt, asking one question: Have you ever used student loan money to invest in cryptocurrencies like Bitcoin? The results surprised even the pollster.
University Students Buy Crypto with Financial Aid
Founder of the Student Loan Report, Drew Cloud, explained, “Younger Americans are certainly the most enthusiastic about cryptocurrency; they are the most active investors and want to get involved in the space in any way possible. However, I truly thought the percentage would be lower. As a college student, your budget is thin and that extra money could be used on rent, groceries, or books,” he told the Boston Globe.
The survey “found that 21.2 percent of current college students with student loan debt have used financial aid money to fund a cryptocurrency investment,” the study found. Over four days students with debt were asked one question about buying cryptocurrency with loan money, and over one-fifth responded in the affirmative.
The Student Loan Report asserted, “Student loan borrowers would be able to pull off such a maneuver because they are given their remaining student loan funds to be used on ‘living expenses.’ Sometimes, student debtors borrow more than they end up needing for that semester of classes. Once the borrower’s college or university’s financial aid office uses the necessary financial aid to pay for courses, they send a refund check to the borrower.”
College borrowers’ spending of the money isn’t tracked officially, allowing whatever is leftover to be spent in the manner preferred by the debtor. Another contributing factor is student loan debt payments usually do not occur until after graduation, and typically six months after.
Savvy or Stupid?
“Cryptocurrency was the hottest investment of 2017,” Mr. Cloud detailed, “especially for young Americans, so it is easy to understand why many college borrowers would think it was a savvy way to spend their refund checks. Some might have even figured that they would be able to quickly pay off their student debt because not long ago every single virtual currency was experiencing seemingly unstoppable growth.”
Noticeably missing from the survey are data regarding how much the average university student spent of their financial aid on cryptocurrency. It also would’ve been interesting to find out which cryptocurrency students favored.
“Could they have used spent, or even saved, this money more prudently?,” Mr. Cloud mused. “Absolutely. A perfect example would be stowing that money away in a high-yield savings account that they could later use to chip away at their student debt. But there is always the chance that there is another period of explosive growth for virtual currency, and these borrowers will be laughing all the way to the bank. Or, they could just as easily lose all of that financial aid money that they just invested in Bitcoin.”
What do think about using loans to buy crypto? Let us know in the comments!
Images via Pixabay, Student Loan Report, Pollfish.
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Innovative start-up crypto company on its way to success
To be recognized as a thought leader requires a certain level of respect and charisma in your respective field. Being a thought leader can make a significant and positive difference to your business. Most successful individuals or firms in their respective fields grow in their business because of their ability to naturally lead or draw in more sponsors and members. A thought leader who is able to cut through the ‘noise’ and offer something worth listening to, is a leader who is designed to succeed.
A thought leader of this type
trade.io is a next-generation financial institute, a blockchain-based trading platform aimed at democratizing the market, redistributing wealth back to investors and companies, and ultimately striving to be the go-to trading firm for quality expertise in cryptocurrency, and, above all, a top-five asset based on market capitalization.
The big leak
Techbullion have leaked information on the upcoming platform being developed by the trade.io team.
In their review, they concluded that while there are a number of crypto trading websites available on the internet for users, many are in fact centralized by nature, designed to maximize profits for the owners and have little care beyond making a living. The closed system and reluctance of the platform operators to allow for maximum options lead to users having limited options and instruments of trading.
They state that trade.io’s exchange solution however ensures that user satisfaction is kept above all things. This is keeping true to the spirit of peer to peer technologies. For instance, the exchange will:
1) Have a fully customizable interface and will offer key features such as social networking, charts, technical and fundamental analysis and more
2) Once regulated trade.io will be one of the few exchanges that will not only offer crypto to crypto but also crypto to fiat and securitized tokens, thereby creating one of the industry’s only “one stop shops” for digital trading.
3) 24/7 customer support offering support in a range of languages, and which pledges to respond to customer queries within one business day or less.
Techbullion went into further detail on the liquidity pool being offered by the company – a membership and lending program which rewards qualified clients for their participation in the trade.io exchange. This is the most anticipated offering of the company and promises to give as much as 50% the company yields from the exchange platform back to the clients. Users will park a portion of their assets in their platform e-wallets into a shared P2P liquidity pool. The assets bound for the pool are used by the company as liquidity and stability in the exchange environment. As a reward for participation in the pool, contributors will receive a distribution calculated on a daily basis. Up to half of the exchange platform yield is then distributed among the pool investors (according to the percentage of their investment in the pool).
Interest for the liquidity pool are earned in the following ways:
Spreads: All trades have a difference in asking price and selling price. This is called the spread. 50% of the earnings made by the platform through spreads will go into the liquidity pool.
Commission: When spreads are very tight, the little room for profit margins in spreads means that the broker cannot earn profitably while making deals. This leads to a commission based incentive. Again, half of all the commissions that platform makes will go into the pool.
Aggregation: The platform combines all unmatched orders into one single large order before execution so that unprocessed transactions can be executed and a good spread and commissions are earned on it.
Risk Positions: Risk management is done using propriety algorithms and leveraging on the micro and macro level, maximizing profit potential for the liquidity pool.
Loan Interest: Users can earn by loaning their wallet assets to others and earn interest on it. Same as all above, half of the profit earned goes into the liquidity pool.
Creating a demographic decentralized platform, trade.io has created one of the most interesting trading and earning system that allows its users to earn a handsome profit.
The team behind the trade.io name
The team is made up of talented and experienced members who all stem from a long background in financial, technology and advisory services. They all strive to enhance their mode of thinking with their ability to source, work with, and profit from their target markets. A large part of why trade.io is likely to succeed is because the team are able to determine what works in the finance community and not repeat mistakes.
The team draw upon their experience from investment banking on Wall Street as well as retail and institutional forex brokerage services and even blockchain development. This varied yet high level expertise across a range of financial sectors join hands to craft the ultimate exchange platform that can be used by both retail and institutional clients.
Such a solid financial background puts them ahead of the competition, at the forefront of the industry and will propel them on their way to being the next-generation’s financial institution.
Proof of the pudding
Until the exchange is officially launched, when results can really be analyzed, it is fair to note that participants and observers will go by both reputation and trust in the company’s ability to profit long-term. The core investors behind the project brought in their long-standing relationships with clients and investors, which is one of the reasons why trade.io continues to draw such interest.
trade.io is a fine example of leaders who recognize trends before they happen and apply that insight to achieve actual business results. The secret to holding such status will come down to the ability to inspire and influence and it seems that trade.io is doing a nice job of it so far. The fact that the company raised over $ 31 million in their ICO is a testament to the credibility the company has gained over a long period of time, given the fact that a large portion of the team have hugely successful careers.
In any doubt? Take John Patrick Mullin for example. He is a 25-year-old, American living in Hong Kong and while he isn’t busy supporting and advising the trade.io name, he continues to build his impressive career. He previously worked at Guotai Junan Securities where he spent the majority of his career, focusing on fintech, blockchain & artificial intelligence. His admirable reputation can be highlighted in the fact that he is frequently invited to speak at high-level crypto conferences internationally as a guest speaker. In addition, the CEO, Jim Preissler, also comes from over 20 years of international business experience with a deep private equity and investment banking background in Wall street, having helped launched numerous ICOs as well as oversee important financial mergers and acquisitions.
Speaking about his company, Jim Preissler explains that trade.io,“is not just about distributed technology…it’s about distributed wealth. Blockchain technology allows us to achieve the vision of distributed wealth through our peer-to-peer shared liquidity pool.”
One of the biggest questions on the minds of potential participants, is what sets trade.io apart from others. In response to this common question, Jim Preissler states that the company will share 50/50 from their seed contribution with all of their participants.
“The time has come where people take back control of capital markets and reject the status quo,” he said.
“We are doing multiple stage rollout to get to a full multi-asset platform. First is crypto/crypto. At some point we will add fiat to the mix. Then FX trading will be added. Finally, other asset classes such as global equities, etc. The platform is built ultimately to allow this full functionality, but we need to roll it out in segments.”
He continued “We plan to be a fully licensed exchange across multiple jurisdictions. Our intention is to actually work with the regulators to forge policies and regulations critical to crypto trading, as well as to protect clients and their wealth. This is something that no other exchange has attempted to do so far.”
Indeed, it’s clear that the leaders at trade.io understand the importance of listening to their community. Without their followers and customers, a company is nothing but a name.
“Listening to the community and building a product that isn’t what we think it should be, but what the community wants. If we can do just that we will win. On that front we are building sentiment analysis tracking and feedback systems that will allow us to keep a pulse on the community to gain insight, but also to make sure we are exceeding expectations.
“It’s a very busy and exciting time at trade.io right now. We have a lot to look forward to. On the marketing front I think our success with the ICO is a testament to our acumen in that area. We also learned a lot and will continue to improve our communications and PR.”
The launch of this exciting exchange takes place this spring. Taking into consideration the team’s spirit and solid experience and expertise, it is safe to say that they’re on the right road to a truly successful launch and journey ahead. For further information on the exchange visit https://trade.io
This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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New survey among financial professionals in Britain shows that more than half of those who have invested in cryptocurrencies, plan to buy more coins this year. Despite recent market volatility, only 8 percent of the interviewed intend to sell their cryptos. The majority of the investors expect crypto valuations to rise over the next 12 months.
Optimism, Despite Volatility
British financial services professionals and retail investors are mostly optimistic about the near future of cryptocurrencies and are looking to increase their exposure. 54 percent of them expect their prices to rise over a 12-month period. Only 32 percent anticipate a decrease, according to a new survey, released by Citigate Dewe Rogerson.
The study also found that 56 percent of those interviewed intend to acquire more digital money. Another 31 percent plan to retain or sell some of their crypto holdings, and only 8 percent will get rid of all their coins. 146 people in the UK have participated in the online survey, conducted by the Consumer Intelligence unit of the communications company. 104 of them still owned cryptocurrencies, when they were questioned at the end of February.
The authors of the “Investor Perception: Cryptocurrencies” report say that 32% of the experts anticipate a dramatic increase in the prices of cryptos by 2021. Another 18 percent predict a slight rise. At the same time, those who believe valuations will fall are just 28 percent.
“Many cryptocurrencies have seen a huge increase in valuations, but also exceptional levels of volatility”, said Phil Anderson, Executive Director at Citigate Dewe Rogerson. “Cryptocurrency millionaires have been created, but many other investors have lost money. Despite the significant levels of volatility and price fluctuations, our research reveals many financial professionals remain optimistic about the future for cryptocurrencies”, he added.
Anderson also noted that at the beginning of the year, the market capitalization for cryptocurrencies was around $ 800 billion. “Over half of the financial professionals (59 percent) expect it to be over $ 1 trillion by 2021, while 15 percent anticipate it to be more than $ 2 trillion”, he said, quoted by Verdict. Only 19 percent of the respondents think the market will shrink and that the market cap will be below $ 800 billion.
Cryptos to Attract Billions
Expectations for new regulations remain high among financial professionals, with 62 percent anticipating a substantial increase of regulatory pressures within the next two years. Despite that, 22 percent of the experts think the use of digital currencies for payments and money transfers will increase dramatically. Another 48% have more moderate expectations, but also predict a rise within the next five years. Phil Anderson says:
Whatever the future holds for the cryptocurrency market, one thing is certain – it will continue to attract billions of dollars, dominate the headlines and fuel heated debate about what is likely to happen.
The majority of the participants in the survey believe big companies will benefit the most. More than two thirds of the respondents say larger firms will increase their crypto holdings in the next three years. 68 percent think corporations will be tempted to use cryptocurrencies with smart contracts and other blockchain applications.
About 54 percent expect more companies to be using cryptos for fundraising. 44 percent of the financial experts anticipate a serious increase in the use of blockchain technologies, while 33% think their introduction will be more moderate.
What are your expectations for the near future of cryptocurrencies? Share your thoughts in the comments section below.
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Coinbase appears poised to increase its global market share for licensed cryptocurrency exchanges. It recently hired a mergers and acquisitions veteran who handled more than 40 deals for Linkedin, signaling its intent to start gobbling up competitors in the industry. Now it’s also established a new legal beachhead in the UK from which it can further penetrate the European bitcoin market.
FCA E-Money License
San Francisco-based cryptocurrency exchange Coinbase has announced it has been granted an e-money license by the UK’s Financial Conduct Authority (FCA), allowing the company to issue “e-money” and provide payment services. This means Coinbase will have to match operations by traditional operators like the segregation of client funds, where all customer fiat balances must be separated from company funds and kept in separate bank accounts. Furthermore, the FCA license allows financial services companies to trade freely in any other European Union member state with minimal additional authorization under what is known as the EU passporting system.
“For our customers, this will ultimately help us deliver a better experience through new partnerships and an easier to use product. We are committed to making sure customer funds are always secure and this update means that our e-money operations have safeguards and operational standards at par with other regulated financial institutions,” commented Coinbase UK CEO Zeeshan Feroz. “Our e-money license will extend beyond the UK to 23 countries within the EU. We believe that this is an important step towards our commitment to making cryptocurrency accessible to everyone.”
Coinbase also announced it will add support for the Faster Payments Scheme (FPS), offering local clients a familiar, seamless and faster payment experience which is supported by all major UK banks. Replacing the Single Euro Payments Area (SEPA) will start with a pilot, giving just a selected number of institutional users access to FPF, but will eventually begin rolling out to all UK customers in a few weeks.
Lastly the company is set to significantly up its manpower in the British capital. “Since we began offering our services to European users in 2014, we have seen the crypto space grow significantly. The EU grew twice as fast as any of our other markets in 2017, and the UK continues to be our largest market here. In order to meet this increasing demand we plan to grow our London team 8x by the end of this year,” stated CEO Feroz.
Is Coinbase going to take over the global market for licensed bitcoin exchanges? Share your thoughts in the comments section below!
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Despite stumbling before the financial crisis, Federal Reserve would get new discretion in Senate banking billMarch 13, 2018 | dailybusinessnews
As the financial system teetered on the brink of meltdown in the fall of 2008, then-Federal Reserve Chairman Alan Greenspan — known for years as “the Oracle” — admitted he had been blindsided by the housing crash and breakdown in the credit markets.
“This crisis … has turned out to be much broader…