March 12, 2019

German Authorities Looking to Regulate ICOs

Germany’s Federal Ministry of Finance and Federal Ministry of Justice and Consumer Protection have published a paper that focuses on electronic securities and the regulation of specific cryptocurrencies to reposition Germany in the fintech industry.

Germany Rebrands

Per the report, the Federal Ministry of Finance and Federal Ministry of Justice and Consumer Protection’s have published a paper which addresses electronic securities and the regulation of initial coin offerings (ICO).

Reference was made to a March 12, 2018, coalition agreement which looked to strengthen the country to become a leading financial technology and digitization hub, while also developing a robust blockchain strategy.

In the area of electronic securities, it was outlined that the current German regulations governing securities should be applicable with restrictions. Likewise, it has been proposed that the issuing of these securities should be technology-neutral and as such, they can be offered using the distributed ledger technology (DLT).

When it comes to the area of regulating the ICOs, it was noted that in the past, cryptocurrencies have been offered without being classified as investments, securities, or other financial instruments under the Securities Trading Act.

Capital Market Laws

The issuance of these cryptoassets will not be subject to the existing regulations of the capital market, and it goes contrary to the issuance of electronic bonds which may still be subject to the law.

Thus, the paper seeks to discuss the best ways to regulate ICOs to promote consumer protection.

That being the case, the Federal Ministry of Finance and the Federal Ministry of Justice and Consumer Protection intend to get a comprehensive understanding of the measures outlined in the paper which will lead to the drafting of a bill.

Earlier in February 2019, the German government consulted with experts in the blockchain community in a bid to understand the potentials of DLT before its strategy presentation in the summer of 2019.

BTCManager on October 22, 2018, also reported that Germany’s legislators are trying to set up a legal framework that will govern blockchain technology and cryptocurrencies.

Like BTCMANAGER? Send us a tip!

Our bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4

Published at Tue, 12 Mar 2019 16:00:19 +0000

You might be interested in …

May 12, 2018

5 Reasons Why Every Crypto Investor needs a Second Residency and Second Passport h/t to @nomadcapitalist #Crypto #BTC #Altcoins #FutureMoney #Blockchain #Musicoin #PiedPiperCoin https://t.co/r5jurGUrNx https://t.co/aL2G2RBX86

Recent Uploads tagged blockchain 5 Reasons Why Every Crypto Investor needs a Second Residency and Second Passport h/t to @nomadcapitalist #Crypto #BTC #Altcoins #FutureMoney #Blockchain #Musicoin #PiedPiperCoin https://t.co/r5jurGUrNx https://t.co/aL2G2RBX86 freevestor posted a photo: 5 Reasons […]

November 15, 2017

Thomas Peterffy on CME Futures: “A Catastrophe in the Cryptocurrency Market… will destabilize the real economy.”

Chairman of Interactive Brokers, Thomas Peterffy, has voiced concerns about the plan to launch a bitcoin Futures contract. According to their CEO, Terry Duffy, the CME Group intends to offer the listing as early as the second week in December. However, Peterffy is worried about the implications of a crypto-based Futures market. For him, the violent swings associated with digital currencies and assets could spell disaster for investors, as well as the economy as a whole.

Interactive Brokers are themselves a CME clearing member and through an open letter dated November 14, 2017, they requested that “the Commission require that any clearing organisation that wishes to clear any cryptocurrency or derivative of a cryptocurrency do so in a separate clearing system isolated from other products.”

For Peterffy, there is “no fundamental basis for valuation” of cryptocurrencies and the volatility common within markets is cause for concern. He highlighted the lack of a “mature, regulated and tested underlying market” and declared that determining the amount of funds necessary to margin such a product is “impossible”. For him, drastic movements in price could affect many more than just a few unlucky traders:

… a catastrophe in the cryptocurrency market that destabilizes a clearing organization will destabilize the real economy.

He continued:

“If the Chicago Mercantile Exchange or any other clearing organization clears a cryptocurrency together with other products, then a large cryptocurrency price move that destabilizes members that clear cryptocurrencies will destabilize the clearing organization itself and its ability to satisfy its fundamental obligation to pay the winners and collect from the losers on the other products in the same clearing pool.”

However, Peterffy and Interactive Brokers did suggest a way to mitigate the risk. They advocate keeping cryptocurrency derivatives entirely separate from other financial products. To protect the members of clearing organisations from the “unique risks in clearing cryptocurrencies” they should remain “isolated”.

Before signing off, Peterffy offered his and his company’s support to help CME investigate and safeguard against such supposed dangers:

We would be happy to discuss this with you or to provide any further information at your convenience.

Image: ShutterStock

The post Thomas Peterffy on CME Futures: “A Catastrophe in the Cryptocurrency Market… will destabilize the real economy.” appeared first on NEWSBTC.

May 9, 2019

CryptoKitty Creators Release New ‘Easy-To-Use’ Ethereum Wallet

CryptoKitty Creators Release New ‘Easy-To-Use’ Ethereum Wallet Dapper Labs, the creator of CryptoKitty, has released a new Ethereum “smart wallet” called Dapper. The goal? To make crypto and cryptocollectables far easier to use. “Dapper is […]