CFTC restricts the acceptance, storage and use of cryptocurrency assets by FCMs Oct 22 2020 By Forexbrokerz.com
( FCMs ).The reason cited behind the changes is that holding onto such assets possesses certain risks – one of them is the vulnerability to hackers, which has recently been exploited in a breach that resulted in losses of $150 million for crypto exchange service KuCoin .Another reason behind the desire for increased regulations of the ways in which crypto can be held is the fact that currently FCMs do so in unregulated or under-regulated institutions.To that end one of the new requirement is for FCMs to store client cryptocurrency assets separate from their other ones in a bank, another FCM or a trust company.There are several other important rules in regards with cryptocurrency deposits – first off, when a client wishes to deposit in Bitcoin, their deposit can then only be used to trade Bitcoin.
A trader cannot deposit Litecoin and use it to trade Bitcoin for example.Secondly, FCMs should be able to process crypto withdrawal requests within a maximum time-frame of one day – between the request for a withdrawal, the FCM contacting and withdrawing the sum from the cryptocurrency custodian and transferring it to the client’s account no more than 24 hours should have passed.Next, an FCM cannot store any of its own cryptocurrency assets with the same custodian it has chosen to hold its clients’ assets.
Finally, the CFTC has demanded that all crypto deposits must be proportionate to a client’s trading volume, which is to be assessed on a quarterly basis.These tightened restrictions come at a time where the world is trying to impose stricter regulation over digital currencies, while countries and companies alike develop their own – for example, the G20 has opposed the launch of Facebook’s own Libra cryptocurrency, while Hong Kong agreed to test China’s digital yuan .
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The world solici…Read more Russia Pushes Legislature That Aims to Restrict Crypto Investments Oct 14 2020 14:38:50
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Kate Winslet will produce and star in a new movie about OneCoin – the notorious Ponzi style crypto scam that defrauded investors of some 5,15 billion USD.‘Fake!’ will be produced for Metro-Goldwyn-Mayer and will be directed by Scott Z.Burns, who also will write the script.
Read more US labels crypto currencies treat to national security Oct 09 2020 17:20:22
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