It’s been another busy week in the foreign exchange (forex) and cryptocurrency space, with a lot of developments taking place. You can stay up to do with our best of the week analysis.
Binance Delists Bitcoin SV
The largest cryptocurrency exchange by volume, Binance, announced this week that it is delisting Bitcoin SV (BCHSV) after the company’s CEO Changpeng Zhao, said that one of the key figures behind the coin – Craig Wright – is “a fraud.”
Wright, the self-proclaimed creator of Bitcoin, has been caught up in another storm in the crypto sphere. As Finance Magnates’ crypto editor Rachel McIntosh analysed, Binance wasn’t the only one to delists BCHSV, with Kraken and Shapeshift making the same decision.
The commotion which has lead to the delisting seems to be surrounding Wright protecting his claim that he is the real Satoshi Nakamoto, as he has threatened key figures in the crypto space, including Ethereum creator Vitalik Buterin and podcaster Peter McCormack, that he will sue them for defamation and libel.
To find out more on this evolving issue, you can read our analysis here.
Is Vanuatu Still an Attractive Offshore Destination?
Vanuatu was becoming an offshore hotspot for brokers, providing them with an easy regulatory environment to secure a licence. However, following regulatory reforms the country is no longer looking like such an attractive destination.
But does Vanuatu still have something to offer brokers? We spoke with Tal Itzhak Ron and Stephanie Attias from Tal Ron, Drihem & Co, to find out the deepest details about the framework and what firms should know if they are considering Vanuatu as their offshore destination. You can read the interview here.
Interview with Ledger CEO on Cold Storage
It’s no secret that there are many shortcomings of bitcoin and the majority of cryptocurrencies. Nonetheless, the ecosystem has managed to come a long way since it was first invented more than 10 years ago.
Recently, Finance Magnates spoke with Eric Larchevêque, CEO of cryptocurrency hardware wallet firm Ledger, about the ways that secure crypto storage is evolving, and about how his company is working to support the cryptocurrency ecosystem.
eToro Launches Cryptocurrency Exchange
This week retail trading firm eToro announced that its new cryptocurrency exchange has gone live – eToroX. Regulated in Gibraltar, the exchange allows users to trade in currency pairs and to buy a number of different cryptocurrencies.
Traders using eToroX will have access to eight stable coins, amongst them the Swiss Franc and US dollar, all of which were created by eToro. Find out more about eToroX here.
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LMAX Digital Secures DLT Provider Licence from Gibraltar Regulator
LMAX Digital, the cryptocurrency subsidiary of LMAX Exchange Group, revealed this week that it has secured a DLT (Distributed Ledger Technologies) Provider Licence from the Gibraltar Financial Services Commission (GFSC).
The announcement comes just over two weeks after the exchange was granted the “in principle” approval. As Finance Magnates reported in March, LMAX Digital completed the final stage of the licence authorisation process, where LMAX Digital needed to satisfy the GFSC with respect to one or more conditions before obtaining a licence.
Is the MENA Region Gold and Glitter?
The Middle East and North Africa region is comprised of many oil-rich nations. Because of this, the foreign exchange (forex) industry in this region is often categorised as “Gold and Glitter” – but not everything that sparkles is gold, so are there really many opportunities in the region?
As Finance Magnates’ Celeste Skinner analysed, the FX industry in the MENA region has “significant” untapped potential. We will be exploring this in more detail on the Gold and Glitter: Understanding Today’s Middle East Markets panel at the upcoming iFX Expo in Cyprus, which will be held in May. On the panel, members will discuss the current opportunities, unique regional factors, and potential in the MENA region.
How is Behavioural Analytics Changing Retail Trading?
Following the European Securities and Markets Authority (ESMA) implementing its product intervention measures, brokers now need to clearly state what percentage of their clients lose money.
Although retail traders have always been bigger losers when it came to investing, the product measures are motivating firms to boost the number of winners they have using their platform.
As David Kimberley from Finance Magnates analysed, technology has helped companies which offer behavioural analytics products launch on the market, but it has been argued just how effective it really is. So, are behavioural analytics changing the retail trading space, and if so, how? You’ll need to read more to find out.
Be Careful of a Japan Flash Crash
Traditionally, the Golden Week holiday causes the Japanese markets to slow down at the end of April until the beginning of May, as participants take time off from the financial markets.
This year, however, things are different, and there are additional risks to the financial markets as the Japanese financial market will be taking a full 10 days off, due to the May 1st Japanese imperial transition. The event will be the longest market closure since the Second World War.
Because of this, financial firms and traders alike should be aware of this situation and make preparations ahead of time. One risk is poor liquidity conditions during the Asian session between 27th of April until the 6th of May.
For further insight as to what you should be looking out for, read our article here.