Ken Moelis is an investment banker who knows a thing or two about finance. In a recent interview, he likened the bitcoin craze to the California Gold Rush of 1848, and says he is also looking for a few crypto business opportunities himself. Ken Moelis: The Gold Rush Is Back, Only Now People Are Seeking…
Bitcoin price is back to around $40,000 but whether or not the bull market is over or not isn’t yet certain. What is certain, according to Paul Tudor Jones, is the cryptocurrency itself. Not the asset or its price, but the underlying ironclad cryptographic code. Here’s why the billionaire investor has allocated as much as […]
Based on the survey by UsefulTulips, Africa’s bitcoin trading volume growth is the highest among all continents of the world. This proves that cryptocurrency adoption is getting higher in all parts of the world. Bitcoin Trading Volume in Africa Has Risen by An Average Of 24% Most African residents’ interest in bitcoin trading has soared …
Meanwhile, gold and Bitcoin have provided a refuge for many. Despite the precious metal vastly underperforming Bitcoin in terms of gains, it remains near record highs.
„When you look at the Fed today and the Fed back then, you wonder: How can you have such wildly different policy views on what constitutes the right levels for employment, the right levels for inflation?” he continued.
„How can you have that with an eight-year timeframe? It’s almost like a split personality, and you wonder why Bitcoin has a $2 trillion market cap and gold’s at $1,865 an ounce. And the reason why is you have this dichotomy in policy that again questions — questions — the institutional credibility of something.”
Ultimately, a 5% Bitcoin allocation is one of the only things he recommends to those seeking portfolio advice.
„I say, 'OK, listen. The only thing I know for certain is I want to have 5% in gold, 5% in Bitcoin, 5% in cash, 5% in commodities at this point in time,'” he added.
Crypto growing to a $1.6 trillion market without adequate regulations is a major worry for the head of Italy’s stock market oversight agency.
Paolo Savona, the chairman of the Commissione Nazionale per le Società e la Borsa (Consob) — Italy’s securities regulator — has raised alarms over crypto’s growing popularity in the absence of firm regulatory standards.
According to Reuters, Savona made this position known while delivering Consob’s annual report on Monday stating that the lack of clear-cut regulations creates an opportunity for criminals to utilize crypto for illegal activities. According to Savona:
“Without proper oversight, there could be a worsening in market transparency, the basis of legality and rational choice for (market) operators.”
Despite several research studies indicating that crypto criminality only accounts for a minute proportion of global cryptocurrency commerce, Savona has joined the chorus of financial regulators pushing the virtual currency crimes agenda.
Speaking during the CNBC Squawk Box program earlier on Monday, Mohamed El-Erian, chief economic adviser at Allianz alluded to the emerging narrative, calling it “a tug of war between adoption and regulation.”
For Savona, criminals using crypto for money laundering and tax evasion are not the only problem. According to the Consob chairman, the proliferation of cryptocurrencies poses an existential threat to the ability of central banks to facilitate the sovereign monetary policies of their respective nations.
Given the extent of Savona’s crypto fears, the securities regulator panned the slow pace of activities concerning cryptocurrency regulations at the European Union level. The Consob chief stated that Italy could be forced to establish its own regulatory framework if the European Union takes too long to develop a region-wide set of laws.
However, not all the happenings on the crypto regulatory front are negative for the industry. Indeed, reports coming out of India suggest that the authorities have moved away from plans for a total ban towards more nuanced regulations. Even in the Netherlands, Dutch finance minister Wopke Hoekstra has spoken in favor of supervision instead of the prohibition of cryptocurrencies.
A further tightening of cryptocurrency regulation in South Korea is underway, with new rules for banks and crypto exchange operators.
New rules announced by South Korea’s Financial Services Commission, or FSC, are expected to affect around 60 unauthorized cryptocurrency exchanges in the country and a new policy for banks will require that they classify any crypto exchange clients as “high risk.”
According to the Korea Times, the new guidelines were announced on Sunday and are intended to ensure that crypto exchanges strengthen their monitoring of transactions and uphold strong user ID requirements. Until now, only the four largest exchanges in South Korea have set up real-name accounts that have been cleared by banks. The FSC is justifying its measures by noting that there is high demand from customers for more protection for their assets held at smaller cryptocurrency exchanges.
Exchanges' ability to operate under the radar will come to a close in September, with the FSC’s deadline for exchanges to submit requests for an operating license by the 24th of that month. After the submission, financial intelligence officials will scrutinize applicant crypto exchanges' trading activities for a review period of three months. A particular focus will reportedly be preventing the use of borrowed or fake accounts to make transactions on exchange platforms.
For their part, banks will have to refuse their services to any exchange client that fails to comply with ID verification measures and to report suspicious activities, e.g. large transfers made to crypto exchange operators from unidentified accounts, to the Korea Financial Intelligence Unit.
The Korea Federation of Banks and several commercial lenders have appealed to the FSC to reduce their liabilities for financial crimes on crypto exchanges, which could increase as the exchange sector is brought under greater regulatory oversight. Some institutions are concerned that their vetting and acceptance of particular crypto exchanges could be cited by investors as the basis of platforms' trustworthiness. An industry official told reporters:
“Banks are essentially forced to take responsibility for issuing real-name accounts. It therefore is reasonable that there should be some immunity for undertaking the dangerous and costly task.”
It’s not only banks that have been vocal about the incoming changes to regulation of the sector. In recent weeks, small and medium-sized exchanges in South Korea expressed their concerns at a meeting with financial regulators, emphasizing the costly bank service fees that make partnerships prohibitively expensive for smaller businesses.
Regulatory uncertainty and the slow embrace of cryptocurrencies continue to be key impediments to the growth of Kenya’s digital currency market, experts say. They also assert that without speedy regulation, which they believe will hasten the adoption of digital currencies, Kenya’s sector will remain open to fraud. Kenya’s Embrace of Crypto Slow, Exchange Reps Point […]