FCA Focuses on Crypto, KuCoin Launches OTC Platform: The Weekly Show

It’s been another busy week in the cryptocurrency industry, with the Financial Conduct Authority (FCA) delivering both good and bad news for the sector. To delve deeper into some of the top news, we caught up with BloxLive TV in our latest edition of The Weekly Show.

Click on the video to see what we discussed.

FCA grants license to first crypto hedge fund

This week, the cryptocurrency sector had another first - British regulator the FCA granted Prime Factor Capital approval to operate as a full-scope alternative investment fund manager. This is the first time the regulator has approved a crypto-focused hedge fund.

The company will operate under the guidelines of the European Union and will be allowed to hold more than 100 million euros ($116 million) in asset under management (AUM). As per the regulatory rules, the London-based hedge fund also needs to appoint a third-party custodian to hold and safeguard its crypto holdings.

FCA proposes ban on crypto derivatives & ETNs

In the same week that the FCA granted Prime Factor Capital authorization, it also delivered a blow to the retail sector. As Finance Magnates reported, the watchdog announced its intentions to ban the sale of crypto-based derivatives, such as contracts-for-difference (CFDs), futures, options and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded notes (ETNs) to retail customers.

The watchdog believes these investment instruments are “ill-suited” for retail investors who cannot assess the value and risks associated with them. The agency pointed out the following shortcomings of digital assets - no reliable basis for valuation, susceptible to market manipulation and crime, as well as high levels of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term.

KuCoin launches OTC desk for crypto-fiat trading

KuCoin announced this week that it will soon be launching its over-the-counter trading platform for trial transactions. Initially, the platform will allow users to trade the USDT/CNY pair during the trial period, with more tokens and fiat currencies to follow. Users will be able to purchase tokens or coins via the supported fiat currency on KuCoin OTC.

The KuCoin OTC desk facilitates dealing between trade parties directly, instead of relying on the supervision of an exchange. This move shows how the cryptocurrency space is maturing in a similar way to the $5 trillion foreign exchange market.

Falling behind on your cryptocurrency news? You can watch our previous edition of The Weekly Show to keep up to date with the industry's most interesting news.