When a financial market becomes big like retail forex and people prefer it over traditional investments, regulators try to protect the traditional financial markets.
They also came up with something similar to forex like forex futures or whatever they call it
-A lot of people have expressed their concerns (suspicions) regarding how things have unfolded recently. The obvious being that the intention was to drive prices down and to put serious pressure on various companies so that larger groups could swoop in and buy low and/or outright buy some of these companies when they are at their lowest and weakest so that they could ultimately have greater control over the market.
It is becoming more and more difficult to ignore such conspiracies, anyway. I almost wonder if the recent move against the SEC/Gensler has prompted these larger groups to act sooner than planned.
Here is what has happened to Binance since the Securities and Exchange Commission lawsuit
Binance US started the year with 8% of the U.S. market share. Trading volume on the exchange has also dipped to yearly lows.
As the Securities and Exchange Commission comes knocking, Binance USâs slice of market share among alternatives in America has faded to almost nothing.
https://decrypt.co/145431/binance-us-market-share-evaporates-as-sec-case-looms
I think, now that we are seeing these massive companies moving to set up BTC ETFs, spot exchanges etc., that we are likely to start seeing a reversal in terms of crypto adoption in this country.
If I recall, out of the 570+ applications with the SEC, Blackrock has only been rejected one time. It should probably go without saying that they do not make moves on something unless they are very, very confident about it.
I am not too confident about what regulation will look like, though. I do not even know if we will continue to have direct access to exchanges like we have had here before. Maybe we will have to trade through a broker. We can hope that the volume and spreads will improve, but I donât know. 24/7 trading? Who knowsâŚ
ETFâs generally have a higher barrier to entry. Have to go thru traditional brokerages with higher fees.
We have to take things as they come, as the American retail investor/trader has no voice in this matter.
I wonder what things will look like with crypto, though? We saw many different exchanges where trading took place directly on the exchange. There was no need for the middleman broker since the liquidity/leverage was provided by the exchange and their partners. In some cases, anyone could apply to be a liquidity provider and could earn interest on their funds.
I wonder if this will be restructured? The fees were set by the exchange, which were usually not very reasonable if you were using leverage, but the spreads were real (and often non-existent, other than what resulted in the precision of the asset).
I will personally prefer to not trade through a broker, if possible.
The Big boys will once again get their way, leaving bread crumbs and higher entry and fees burden on the American retail investor/trader, As Always
-Maybe. But we still have a choice, either way, so I suppose that we have a voice in that regard. I think, if crypto becomes more widely accepted here, then it may become even easier to work with offshore entities.
Sometimes we see offshore entities acting as a sort of proxy/umbrella company, allowing us access to exchanges and brokerages that we would normally not have access to.
Perhaps we could see something similar, but with better conditions. The problem with cryptocurrency trading has always been lack of liquidity/volume. Perhaps this will improve significantly with these larger groups joining the pool.
If trading directly on the exchange is possible, and the conditions are reasonable and the exchange is accessible 24/7, then that could be pretty great not having to trade through a B-book or hybrid broker etcâŚ
However, I suspect, as you do, that the leverage, fees and whatever stupid limits that they choose to put into place will probably suck hard.
Now that crypto will be regulated, we can say crypto has now become part of America, but at what cost? Look at what they did to retail forex trading in America. forcing the small guy to look offshore as you stated. letâs see how things goes
Yes. And then thereâs the issue with CBDC. Some very disturbing revelations in this video:
And here we goâŚ
EDX Markets, a new crypto exchange backed by a consortium of traditional Wall Street firms including Charles Schwab SCHW â0.86% and Citadel Securities, said Tuesday it had begun processing trades.
A new crypto exchange backed by firms including Citadel Securities, Fidelity Digital Assets and Charles Schwab Corp. said itâs gone live, a move that could reshape the digital-asset landscape amid heightened US scrutiny of the sector.
EDX Markets, an institutional-only exchange announced in September 2022, will offer trading in four cryptocurrencies: Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Unlike existing crypto platforms such as Coinbase Global Inc. and Binance Holdings Ltd., it offers a ânon-custodialâ model, meaning that it doesnât hold clientsâ digital assets during trading. Instead, EDX is working with a third-party custodian, according to Chief Executive Officer Jamil Nazarali.
https://www.yahoo.com/finance/news/crypto-exchange-backed-citadel-securities-150238897.html
I guess that answers thatâŚ
Not your keys, not your BitcoinâŚ.
So WTF are they even attempting here? CFD/Synthetic model?
-That would be my guess. This would also make sense for allowing institutional partners, like brokers, to plug in and offer services to clients. But, since these will be based in the US, presumably, then all of the same nonsense that we see with FX will probably carry over.
To have Citadel involved just screams massive manipulation incoming. They are kings of spoofing.
The International Monetary Fund (IMF) is working on a platform for central bank digital currencies (CDBCs) to enable transactions between countries, IMF Managing Director Kristalina Georgieva said on Monday.
âCBDCs should not be fragmented national propositions⌠To have more efficient and fairer transactions we need systems that connect countries: we need interoperability,â Georgieva told a conference attended by African central banks in Rabat, Morocco.
âFor this reason at the IMF, we are working on the concept of a global CBDC platform,â she said.
The IMF wants central banks to agree on a common regulatory framework for digital currencies that will allow global interoperability. Failure to agree on a common platform would create a vacuum that would likely be filled by cryptocurrencies, she said.
A CBDC is a digital currency controlled by the central bank, while cryptocurrencies are nearly always decentralised.
https://www.yahoo.com/finance/news/imf-working-global-central-bank-124500521.html
