cryptocurrency trading

Stern Warning on Crypto Trading by the China's Central Bank Prompts Bitcoin Bears

Following a cryptocurrency trading clampdown threat by China’s central bank, People’s Bank of China (PBoC), Bitcoin has seen losses of more than 10%. Its value has dropped below $7,000.

This announcement has made other cryptocurrencies, such as Ethereum, to nosedive losing at least 12% of its value.

Through a translation, the bank stated: “Once [cryptocurrency trading] is discovered, it will be disposed of immediately, and it will be prevented from happening early.”

Bitcoin price has been on a downward trend the whole of this month, but things got worse off following this revelation by the People’s Bank of China.

According to a Forbes report, cryptocurrency has not been completely banned in China, but the nation made a stern warning as banks were cautioned against working with Bitcoin exchanges back in 2017.

The Shanghai-based central bank has also made a caution against conflating the nation’s interest in blockchain with crypto and Bitcoin.

The bank noted: “Recently, in the process of promoting blockchain technology, virtual currency speculation has shown signs of rising. Investors should be careful not to mix blockchain technology with virtual currency.”

The crackdown threat made on Nov. 22 shows the way the worldwide crypto markets are likely to move based on statements made from China. For instance, in October, Bitcoin increased by more than $ 2000 following China’s President Xi Jinping callsfor acceleration in blockchain development. He noted that blockchain application had extended to digital asset trading, digital finance, supply chain management, Internet of Things, and other fields.

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Chinese Police Discover Illegal Bitcoin Mining Activity in Mysterious Graves

Police in China recently discovered illegal Bitcoin mining, which was buried underneath a local cemetery. Power losses within the area caused the initial suspicion. A Chinese oil field company submitted a tip to the local police requesting them to investigate suspicious power losses in the northern city of Daqing, Heilongjiang province. The police officers arrived at the scene and spotted mysterious two grave mounds lying in the field.

Incurred losses finally unraveled

These were not the grave tombs of the dead but were graves hiding illegal Bitcoin mining operations. Daqing police inspected the area and consequently noticed an entrance near one of the graves. After some digging, they confirmed that it was a Bitcoin mining rig, which was illegally stealing electricity in the northern city of Daqing. The culprits were hiding their operations under two mysterious grave mounds in a relatively empty field. These mining rigs have been causing power losses in the Daqing area because they require huge usage of electricity to power them.

While the case is a bit strange, it is not an isolated incident. Early this year in April, police also discovered another Bitcoin miner hiding 54 mining rigs in the same province. Instead of using grave mounds as cover, the miner had the mining rigs installed under a dog kennel.

China allows the building of hydroelectric plants in well-known Bitcoin mining town

Such incidents may have been influenced by the recent increase in the Bitcoin price. Though cryptocurrency trading is illegal in China, Bitcoin mining is not. Thanks to its cheap electricity, the nation has been a haven for mining farms in the past. As cryptocurrency prices started to increase again, people’s willingness to go into crypto mining also rose.

Government officials in China recently allowed the construction of hydroelectric plants in the Ya’an district of Sichuan to go ahead. Sichuan is a popular town commonly known as the capital of Bitcoin mining. Local authorities have made new reforms to provide cheaper and better opportunities for miners.

Such reforms aim to boost the regional economy by providing employment for the locals and creating sustainable technological infrastructures for blockchain development. As a result, numerous firms are using the nation’s cheap electricity, and the country has become a global leader. Sichuan province is reported to be responsible for nearly 10% of the Bitcoin hash rate globally.

Brazil's Fintech Giant Nubank Now Offers Crypto Trading

Sao Paolo-based digital banking giant, Nubank has veered into the cryptocurrency trading ecosystem with initial support for Bitcoin (BTC) and Ethereum (ETH)- the two largest cryptocurrencies by market capitalisation.

Long being associated with digital currencies, Nubank, whose parent company, Nu Holdings Ltd, is listed on the New York Stock Exchange, said its entry into the crypto trading space will help simplify the trading process for investors.

The trading will occur in-app, and existing Nubank customers will not need to open new accounts to access the crypto trading interface.

“There is no doubt that crypto is a growing trend in Latin America, one that we have been following closely and believe will have a transformational impact on the region. Yet the trading experience is still very niche. Customers either lack information to feel confident to enter this new market or just get frustrated by complex experiences,” said David Vélez, CEO and founder at Nubank.

“At Nubank, we aim to empower our customers by putting them in control of their money. Therefore, we built an experience that was simple and intuitive enough to broaden access to new segments while being robust and powerful for the more crypto-savvy.”

The firm said its new product offering is in partnership with Paxos, a digital assets platform that will serve as its custody and brokerage partner. The two companies involved in the trading indicate how Nubank hopes to leave no stone unturned concerning simplicity and security for all of its customers.

Nubank also announced it has purchased Bitcoin with approximately 1% of its balance sheet. The acquisition came at a time when the broader crypto ecosystem was experiencing a massive turmoil, with Bitcoin changing hands at $29,342.10, down 6.26% at the time of writing, per data from CoinMarketCap.

Swiss Retail Bank to Offer Cryptocurrency Services

PostFinance, a retail bank owned by the Swiss government, has announced plans to offer its customers cryptocurrency trading and storage services. The bank has partnered with local cryptocurrency bank Sygnum to provide regulated digital asset banking services. Customers will be able to buy, store, and sell major cryptocurrencies such as Bitcoin and Ether.

The partnership with Sygnum enables PostFinance to offer these services through Sygnum’s institutional business-to-business platform. This platform provides banks with market entry to regulated and compliant digital products, including a range of cryptocurrencies. The B2B network includes more than 15 partner banks and supports revenue-generating services like staking.

PostFinance’s move into the cryptocurrency market comes amid growing interest and adoption of digital assets worldwide. With the rise of blockchain technology and the decentralization of finance, many traditional financial institutions are exploring ways to integrate cryptocurrencies into their offerings. PostFinance’s partnership with Sygnum positions the bank to provide its customers with access to the growing cryptocurrency market.

As a fully government-owned bank, PostFinance is subject to strict regulatory requirements. The partnership with Sygnum ensures that the bank’s cryptocurrency services are fully compliant with local regulations, providing customers with a secure and regulated platform for trading and storing digital assets.

The collaboration with Sygnum also provides PostFinance with access to the expertise and technology of a leading player in the cryptocurrency space. Sygnum is a licensed Swiss bank that offers a range of institutional-grade cryptocurrency services, including custody, trading, and tokenization. With its deep experience in the cryptocurrency market, Sygnum is well-positioned to provide PostFinance with the tools and support needed to offer its customers cutting-edge digital asset services.

In summary, PostFinance’s partnership with Sygnum represents a significant step forward for the bank as it seeks to enter the cryptocurrency market. With the ability to offer customers regulated cryptocurrency trading and storage services, PostFinance is well-positioned to capture a share of the growing digital asset market. By leveraging the expertise and technology of Sygnum, PostFinance can provide its customers with a secure and compliant platform for buying, selling, and storing digital assets, including Bitcoin and Ether.

Greenland Financial Holdings to Apply for Virtual Asset Trading License in Hong Kong

Greenland Financial Holdings, a subsidiary of Greenland Group, is planning to apply for a virtual asset trading license in Hong Kong, according to Shanghai Securities News.

The company’s move into the virtual asset space will further diversify its business portfolio and enhance its global influence, according to Jing Geng, Director and CEO of GreenLand Group and Chairman and President of GreenLand Financial Holdings.

Greenland Financial intends to establish a new company focusing on virtual asset trading, which will submit an application to the Securities and Futures Commission of Hong Kong (SFC). If approved, the company will aim to launch cryptocurrency trading, non-fungible tokens (NFTs), and carbon emission-related products. All plans are subject to the approval of the SFC.

Greenland Financial is committed to propelling the digital upgrade of multiple industries such as digital technology, finance, education, healthcare, and scientific innovation. Its goal is to build an international and diversified comprehensive industrial group that integrates data, technology, finance, and scenarios.

Inside sources from GreenLand Group indicate that based on the digital technology platform and financial holding platform established by GreenLand Digital Technology, a subsidiary of GreenLand Financial, the group has a wealth of offline assets and businesses that can expand into virtual asset operations. The group started planning for the virtual asset business as early as 2019.

Cboe Digital Set to Launch Bitcoin and Ether Futures Trading in January 2024

Cboe Global Markets, Inc. has announced a groundbreaking development in cryptocurrency trading, according to Prnewswire. Beginning January 11, 2024, Cboe Digital will launch margin futures trading for Bitcoin and Ether. This initiative positions Cboe Digital as the first U.S.-regulated crypto native exchange and clearinghouse to offer both spot and leveraged derivatives trading on a single platform, representing a significant advancement in the integration of cryptocurrency into the broader financial market.

The introduction of margin futures trading by Cboe Digital is a strategic move that combines the robustness of traditional financial market infrastructure with the burgeoning field of digital assets. This approach allows traders to engage in futures trading without the need to post full collateral upfront, thus offering greater capital efficiency compared to traditional non-margined futures trading. This margin model not only enhances capital efficiency but also marks an evolutionary step in crypto trading, catering to both institutional and individual investors.

The launch is backed by a coalition of 11 leading firms from both the cryptocurrency and traditional financial sectors, including B2C2, BlockFills, CQG, Cumberland DRW, Jump Trading Group, Marex, StoneX Financial, Talos, tastytrade, Trading Technologies, and Wedbush. These partnerships reflect a strong industry support and a shared vision for advancing secure and transparent trading in digital assets.

John Palmer, President of Cboe Digital, emphasized the milestone this launch represents in building trusted and transparent crypto markets. He highlighted the importance of derivatives in providing liquidity and hedging opportunities in the crypto space. Supporting voices from the industry, including Nicola White of B2C2 and Chris Zuehlke of Cumberland DRW, also stressed the role of Cboe Digital’s initiative in enhancing institutional adoption of cryptocurrencies and maturing the crypto asset class.

Cboe Digital’s expansion into Bitcoin and Ether futures trading complements its existing offerings in the spot crypto market, including Bitcoin, Bitcoin Cash, Ether, Litecoin, and USDC. The platform will provide detailed margin requirements and risk management tools on its website, ensuring a comprehensive and transparent trading experience.

Cboe Global Markets is renowned for delivering market infrastructure and tradable products across multiple asset classes, including equities, derivatives, FX, and digital assets. Cboe Digital operates in compliance with regulatory standards set by the CFTC and is licensed by the New York State Department of Financial Services. Looking ahead, Cboe Digital is exploring expansion into physically delivered products, contingent on regulatory approvals, signaling its commitment to innovation and growth in the digital asset space.

Cboe Digital’s launch of Bitcoin and Ether margin futures is a landmark event that bridges the gap between traditional finance and the evolving world of digital assets. This initiative is set to enhance trading efficiency, liquidity, and accessibility in the cryptocurrency market, marking a new chapter in the integration of digital currencies into the global financial ecosystem.

EDX Markets is Expanding in Singapore

Cryptocurrency trading platform EDX Markets, backed by heavyweights like Citadel Securities and Fidelity Digital Assets, is broadening its horizon with a strategic expansion into Singapore. This move marks a significant step in EDX Markets’ growth trajectory, following a successful second funding round co-led by Pantera Capital and Sequoia Capital. Although the exact funding size remains undisclosed, the investment enthusiasm is evident as shares were purchased at double their initial 2022 value.

EDX Markets’ foray into Singapore is not just a geographic expansion; it’s a strategic diversification of its product offerings. The company plans to introduce spot and perpetual futures trading, catering to a wide array of investors and traders in the dynamic Asian financial hub. Singapore’s robust financial ecosystem and its open-arms approach to fintech innovation make it an ideal location for EDX Markets to diversify its product suite and tap into a rich pool of financial talent.

This expansion is underpinned by the launch of EDX Clearing, a cutting-edge, non-custodial clearing solution for digital asset trading. This feature significantly elevates EDX’s marketplace, offering a competitive edge by enabling a single net settlement process through EDXC. This innovation not only reduces credit risk but also streamlines the trading process, thereby attracting more institutional investors.

The company’s approach to custody is another aspect worth noting. In a market where custodial services are a hot topic, EDX Markets has chosen to partner with Anchorage Digital for custodial services, ensuring that users can trade without the need for pre-funding in fiat or cryptocurrency. This non-custodial model is a strategic move to mitigate the risks associated with fund co-mingling, making the platform more attractive to cautious institutional investors.

EDX Markets’ expansion into Singapore and its innovative product offerings are set against the backdrop of a recovering cryptocurrency market. The platform is poised to offer institutional investors a robust venue for trading major tokens like Bitcoin, Ether, and Litecoin, without the typical custodial concerns.

Binance Enhances Futures Trading with Multi-Assets Mode Launch

Binance, the world’s leading cryptocurrency exchange, has announced an update to its Futures Multi-Assets Mode that will significantly enhance the trading experience for its users. Starting from February 9, 2024, at 08:30 (UTC), all new futures accounts and sub-accounts will automatically have the Multi-Assets Mode enabled. This mode facilitates the trading of USDⓈ-M futures contracts across multiple margin assets more seamlessly, subject to applicable haircuts, thereby broadening the trading capabilities and flexibility for Binance users.

The Multi-Assets Mode supports only the Cross Margin Mode and selected assets as margin. The introduction of this feature is a part of Binance’s ongoing efforts to provide unparalleled trading products and services, including access to over 250+ Futures & Options contracts, a wide range of trading tools, and margin modes, accompanied by 24/7 global expert customer support. It also comes at a time when Binance is extending its offerings, as evidenced by the recent launch of USDC-margined Dogecoin (DOGE) futures, which allows for trading the token across various margin assets under the multi-assets mode, demonstrating Binance’s commitment to expanding investment options and enhancing trading experiences on its platform.

Binance Futures offers a diverse range of trading products, including USDⓈ-M and COIN-M Futures, settled in stablecoins and cryptocurrencies, respectively. Regular users, who trade less than $15 million in a 30-day period or own less than 25 BNB, are subject to a maker fee of 0.02% and a taker fee of 0.05% on USDⓈ-M Futures trades, with a 10% discount available for those using BNB to pay for trades. This fee structure is designed to cater to a broad spectrum of traders, from beginners to more advanced participants looking for competitive pricing and tight bid/ask spreads.

This update aligns with Binance’s strategy to continuously innovate and improve its trading environment, making it more accessible, efficient, and tailored to meet the diverse needs of its global user base. By enabling the Multi-Assets Mode by default for new futures accounts, Binance is taking a significant step towards simplifying the trading process, offering more flexibility, and enhancing the overall user experience on its platform.