There has been a lot of updates and breaking news in the foreign exchange (forex) and cryptocurrency sectors this past week. So before we celebrate the coming of summer, let’s take a look at the top and most interesting stories of the past week in our best of the week segment.
CySEC Proposes Three Tiers of Leverage for Retail Clients
One of the top stories of the week, and arguably of the whole 2019 so far, comes from the FX space, with the Cyprus Securities and Exchange Commission (CySEC) revealing its proposed product intervention measures.
Regulators across Europe have adopted the European Securities and Markets Authority’s (ESMA) temporary product intervention measures as a permanent regulation. When doing this, they have largely copied the regulation implemented by ESMA.
However, CySEC has decided to go another way. The regulator is proposing a risk-based approach to leverage. Different clients with different experience levels will be tiered into different segments and able to use different leverage.
For a breakdown of exactly what the Cypriot regulator has proposed, read our article here.
$17k Fee Charged on a $1k Litecoin Transaction
Rumors of money laundering have surfaced after an anonymous Litecoin user paid a $17,500 fee on a Litecoin transaction that was worth under $1000.
The transaction, which took place on the 23rd of May was mined by the China-based mining pool LTC.top in block 1636831.
As Finance Magnates reported, the fee caused the average transaction fee on the Litecoin network to jump from $0.05 to $0.70. Transaction fees haven’t been that high since the end of December 2017.
China Cracks Down on WFOEs of Several Global Brokers
In its latest attempt to crack down on the brokerage industry, China's State Administration of Foreign Exchange (SAFE) is focusing on Wholly Foreign-Owned Enterprises or WFOEs (also called WOFEs or woofies).
As Finance Magnates reported exclusively, in the regulator’s latest bulletin, authorities mention a monetary penalty on Shenzhen Xinke Business Consulting Co. which is a WOEF allegedly close to TF Global Markets.
Saxo Bank Securities Partners with TradingView
Saxo Bank Securities, the Japanese division of retail broker Saxo Bank, announced on Monday that it had formed a partnership with TradingView so that its clients can place trades through TradingView's platform.
Through the collaboration, users will be able to trade currency pairs and contracts-for-difference (CFDs) provided by Saxo Bank Securities, directly from TradingView.
For more information on the partnership, click here.
Analysis: Goodbye Russia, Hello Belarus
After the central bank of Russia clamped down on brokers operating in the FX industry, Belarus has emerged as an attractive alternative. Since the beginning of April, four firms have received a regulatory license in Belarus, taking the total number of brokers regulated in the country to 13.
Finance Magnates understands that other brokers are also mulling applying for a license or are in the process of doing so. An executive at one broker, whose firm has applied for a license, said that the sudden interest in the country is due to events in Russia.
So how easy is it to set up a broker in Belarus, and is it worth it? Finance Magnates’ David Kimberley answers this question and more in this analysis.
Analysis: ESMA Measures Provide Confidence in Spain’s FX Market
Despite lower volatility and client activity, ESMA’s recent regulations have given traders confidence in the Spanish market. That’s according to Javier Molina, an analyst at eToro. This is because the changes in regulation have brought more control for traders and more confidence in the industry.
So what is the FX industry in Spain really like? Who are the key players in this market? You can find the answers to all these questions here.
ICOs Aren’t Dead Yet
The crypto winter brought a lot of suffering with it, especially for initial coin offerings (ICOs). As highlighted by a report from the research arm of cryptocurrency exchange BitMEX, the ICO market was down 97 percent year-over-year. So far this year, a total of just $40 million been raised by ICOs; last May, that figure was over $4.3 billion.
However, Bitcoin and other Cryptocurrencies are on their way back up. Will the new life in the cryptocurrency markets breathe new life into ICO markets? Find out here.
Interview with Saxo UK CEO
This week we sat down with Andrew Edwards, the CEO of Saxo Capital Markets, to talk about the product intervention measures implemented by ESMA and how the broker is growing through acquisition.
Though in public they may express support for ESMA’s regulations, most brokerage executives are anxious about the impact that the leverage-capping rules the regulator introduced last August are going to have on their businesses. However, in our interview, Edwards surprised us by saying that Saxo Bank hadn’t just supported the rules but had actively pushed for them.
You can see what else he said in the interview here.
