After recently reducing max leverage levels, Binance is now shutting down it’s derevitives business in several European countries, including German, Italy and the Netherlands. And they’ve been asked to stop business activity in Malaysia immediately.
The dominoes are falling.
I am in favour of young people suffering from Covid effects on their family living standards to be protected from high risk speculation on the financial markets.
Here on this site only, some dozens of newbies join each day with the social media marketing fantasy hype urging them to make easy money.
And Biden’s infrastructure bill is planning on taxing the ass off the crypto industry.
In the markets there is saying, ‘dont fight the fed’.
But the crypto crowd think it’s safe to fight governments, central banks AND the regulators.
Oh and the green lobby too
The whole point of trading and investing is to put the odds in your favour, not be smitten with a story that may or may not come to pass.
Yes, agree that governments should protect the vulnerable, although it would probably be seen as another ‘Big Brother’ lockdown.
I have worked in the financial industry for decades, and without exception, the masses don’t want regulator interference - but they soon yelp foul when they get scammed out of their wealth.
As an aside, my whole point of trading is to know myself inside out - strengths and weaknesses - and to be in the best shape I can be as a competent trader. That will be my reward.
I believe the author of that worrying section on crypto tax enforcement is Senator Rob Portman, Republican of Ohio. While it is Biden’s bill, it’s comprised of input from both parties.
Some concessions have been made, but the text is still a bit too broad. In some instances, it makes compliance impossible, as the data they, the IRS for example, could seek isn’t even collected by the intermediary.
Read the EFF’s take on this.
Yes I was aware of the ‘hidden’ language in this bill. Nevertheless a decent read for anyone on the forum following the crypto market.
I think its essential that we get quality articles to be informed - not just the Federal Reserve is debasing the dollar so invest in crypto garbage.
I am actually fascinated with this sector from purely a regulatory standpoint.
I believe Gary Gensler also recently made some comments too, which COULD be seen as bullish for the sector in general.
At the end of the day it’s regulatory rule changes that have the ability to create structural changes in any market.
Thanks
Binance seems keen on making some changes in an attempt to get themselves out of the hot water they’ve landed in - they will be their international Know Your Customer legal document requirements. The main change in the KYC documents is the introduction of the Intermediate Verification requirement. Essentially, from here on out, all new users will be required to complete this verification. Otherwise, they will not be able to access crucial products and services, like crypto deposits, as well as crypto trades and withdrawals.
FTX has done some similar things. Their CEO is a proponent, at least publicly, of more regulation, including in the KYC arena.
FTX has made changes to it’s KYC requirements and verification process as well, now tying accounts to an account holder’s mobile telephone number and location.
Some hardcore users will take this as a bad sign for the industry and a move against a core principle about what makes anonymity important for them, in principle and practice.
That’s very likely, but the industry cannot survive on the hardcore users alone - not if it wants to be mainstream, and by the looks of it, it does.
Two months after declaring Binance unfit to operate in the UK, the British financial watchdog, FCA, cleared one of the world’s largest cryptocurrency exchanges stating that Binance has complied with all its regulatory requirements.
So they’re not banned anymore, in the UK at least. There’s no word what is happening in all the other jurisdictions where they got in trouble.