Cryptocurrency didn’t even have time to recover from the previous negative news as the strengthening in regulation comes in force . Currently Bitcoin is below $8,000 , Ethereum is below $500 and the capitalisation of the market is around $290 billion.
The anticipated G20 meeting, generally speaking, had more positive outcomes for cryptocurrencies then negative, however more regulations are looming.
The US confirmed that existing securities laws apply to ICO’s and to crypto-exchanges and regulators will pursue any violations. Both the UK and the European Union are equally concerned about the protection of investors. Japan is not going to stop supervising the activity of the cryptocurrency exchanges, on the other hand they are not going to suspend their activity if violations are detected.
In France, lawmakers began to discuss the legal framework for the ICO to become a centre for raising investors’ funds.
On Friday, Bitcoin and other cryptocurrencies were in a downtrend after Japan issued a warning to the Binance cryptocurrency exchange – for making online transactions with residents of Japan without obtaining the necessary licence. It also claims that Binance allowed Japanese clients to open accounts without providing documents confirming their identity.
Current dips of cryptocurrency can be attributed to the recent Twitter ban of cryptocurrency advertisements. Twitter becomes the third huge social media banning it, following the Facebook and Google bans. The decision to ban advertisements of cryptocurrencies was already mentioned last week, however officially it was only announced on Monday.
Twitter is one of the most important platforms in cryptocurrency, as it usually represents the profile of the owner and cryptocurrency as well. Moreover it is used for discussions, opinions and comment gathering.
According to Capital.com data, all this news coverage raised users interest in cryptocurrency. There has been a raise in the volume of trades. At the same time, a lot more short positions were opened, and the amount of trades was less as such.
It is good to know that there is an opportunity to benefit as an investor, not only from price growth, but from price decline as well. Opening short (sell) positions on CFD (contract for difference) platforms, like Capital.com, is one way to do so. The benefits of trading CFDs on cryptocurrency include segregated accounts, account security and broker services, which are regulated by a financial regulator. It is important to trade with regulated companies that follow regulations and policies to protect their clients.
Capital.com is a fintech startup providing an AI-powered trading platform designed to take trading to the next level. Available on both desktop and smartphone, the trading platform lets users trade CFDs on the world’s top markets including Forex, cryptocurrencies, commodities, indices and more. The company received a $25 million investment from VP Capital and Larnabel Ventures. Capital.com is licensed by CySEC.
Prepared and edited by Andrew Carroll, Journalism MA in DIT.