There are tons of news that surround cryptocurrency every day. Most of the information is about Bitcoin; however, other crypto assets are mentioned as well. Here, we will present to you, the most important crypto news that occurred this week. Keep reading to find out more information on the subject.
There are a lot of crypto related events that happen daily in the world. This article will cover the most intriguing ones that happened at the start of the new year. First, we are going to talk about the FCA’s new AML regime in the UK. Then we will mention the fact that using multiple crypto exchanges can be very beneficial. Last but not least, we will share a couple of thoughts about how safe Bitcoin really is. As always, more information about crypto can always be found on this website.
The New AML Regime for Crypto in the UK!
The Financial Conduct Authority (FCA) is now the United Kingdom’s sole Anti-Money Laundering (AML) authority for the crypto business. This authority is planing to impose much striker rules in the future. With the FCA thrashing U.K. crypto regulation into shape, the consequences upon start-ups, user privacy and adoption will likely be wide-reaching. In its early stages, decentralized finance (DeFi) has uncovered a bounty of possibilities within the economic sector. From border-less banking to using blockchain technology, DeFi is leading a comprehensive coup d’état against an entrenched financial industry. Nevertheless, inherent benefits aside, cryptocurrencies aren’t without their pitfalls.
At the beginning, decentralized finance (DeFi) offered a lot of opportunities. It all started with borderless banking and blockchain. However, the economic sector is vast and more is required from DeFi. Nevertheless, DeFi is currently the only one fighting against the entrenched financial industry. However, good sides aside, cryptocurrencies do have a lot of bad sides as well. The most important characteristic is anonymity which is a problem when it comes to AML. Personal information is confined to a pseudonymous string of characters, also known as the public address. This address is everything you need to have to make a transaction.
If you look at it from one side, it’s fantastic. You can make a financial transaction without sharing any personal info. However, how about if someone is doing money-laundering through crypto. Those transactions will be untraceable as well. For this reason, the FCA is putting new rules in place. Something called the Travel Rule came into existence. It’s a requirement forcing member nation crypto firms to disclose customer information on transfers over $1,000.
The Benefits of Using Multiple Crypto Exchanges
A cloud-based crypto trading software provider says there are compelling benefits to using multiple exchanges when buying and selling coins — and claims to offer an intuitive interface for uniting accounts in one place. The software provider we are talking about is TradeSanta. According to their executives, using several exchanges gives traders access to a broader selection of trading pairs. They will know exactly what’s going on at the marketplace. Traders can even benefit from arbitrage since one platform can selling Bitcoin at a lower price than another platform.
Additionally, TradeSanta say that they can eliminate the need for maintaining multiple logins. An intuitive API can enable all exchanges to link to a cloud-based software. Basically, traders can have a single place from where they can monitor all their accounts. On top of that, the software will provide information which will help new traders decide which exchange will be the best for them. Once the process of connecting exchanges is complete, TradeSanta says its users have the freedom to set up trading bots within two minutes. All they need to do is select the pair they wish to trade.
The latest figures provided by TradeSanta claim that their automated platform is growing healthily. More than 1 million deals have now been completed through its software, and over 14,500 trading bots are active at the time of writing. At the moment, the software has a community of about 40 000 people. The newest information coming from TradeSanta is that they are preparing support for their software in other languages. For now, this includes Portuguese and Turkish.
How Safe is Bitcoin?
Last but not least, with the new year upon us, we have to talk about the security when it comes to Bitcoin. In the summer of 2019, the 10-year minus 3-month yield curve inverted for the first time in 13 years. During the time of the inversion, Bitcoin’s price hit all-time highs for the year. The previous inversion in 2006 was followed shortly thereafter by the global economic crisis of 2008. Something similar happened after Iranian general Qassem Soleimani was killed by an USA drone strike. Bitcoin’s price spiked upward by 21%, from just below $7,000 to nearly $8,500.
Tune in Next Week!This opened a question of how safe is bitcoin if it reacts like that to possible crises. The J. Paul Sticht Professor of International Business at Duke University, Campbell Harvey had his thoughts on the matter. According to him, Bitcoin will be a safe heaven in case of war or recession. Since it’s a decentralized financial venture, it won’t be affected by regular problems in an economy when recession strikes. Additionally, he explains a vision of the future in which digital tokens could undermine the global hegemony of the US Dollar.
Tune in Next Week!
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