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Regulations Roundup – October 2019

Summer has been and gone and after the back-to-school rush of September, it’s business as usual. And that means regulations are still in the spotlight. So, what should you be aware of during October? As always, we’ve pulled all the finance updates together so you don’t miss anything. Let’s go with the Regulations Roundup – October 2019.

Facebook’s Libra Faces Delays

Facebook’s Libra faces launch delays due to skepticism and regulatory concerns from across the globe. The proposed digital currency was set to become mainstream in June 2020. But this date looks sure to be pushed back with France and Germany pledging to block Libra from operating in Europe.

Perceived as a potential financial threat to the global financial system by governments and central banks of many countries, Libra has been shrouded in controversy to date. Yet, Zuckerberg, backed by the Libra Association set up by tech giant Facebook, seems positive the launch will still go-ahead next year. Indeed, a group of lobbyists have been hired to talk with regulators. The hope is that Libra specialists will be able to convince the United States and European financial regulators that the cryptocurrency will work within the framework of the current legislation and that any risk will be mitigated.

David Marcus, the executive leading the project at Facebook said:

“The goal is still to launch Libra next year. Until then, we’ll need to address all questions adequately, to create a suitable regulatory environment.”

Top tip for brokers: If all goes ahead smoothly, Libra will be backed by a reserve of real-world assets, including bank deposits and short-term government securities, and overseen by the 28-member association. The new currency has the potential to make other cryptos more popular and widespread, but sentiment can change fast, so it’s essential to stay abreast of updates. Follow the official Twitter account which currently has 36.5K followers here.

Bitcoin Needs Tighter Regulations Says SEC Chair

According to the head of the U.S. Securities and Exchange Commission, better regulation is needed around Bitcoin markets before they can be traded on major exchanges. Speaking at CNBC’s Delivering Alpha conference, SEC Chairman Jay Clayton said, investors are “sorely mistaken” if they think the price discovery practices surrounding Bitcoin and other cryptocurrencies is the same as products on top exchanges like the Nasdaq or New York Stock Exchange. The level of investor protection offered by crypto exchanges must apply to crypto markets before they can be added.

Top tip for brokers: Regulator progress surrounding crypto assets is being made. The FCA recently confirmed ESMA regulations regarding CFDs including CFD-like products. This limits leverage and provides protections that guarantee a client cannot lose more than the total funds in their CFD account. Regulations are sure to progress further and this may make it easier for digital currencies like Bitcoin to get exchange approval from the SEC.

Uzbekistan Government Triples Electricity Tax for Crypto Miners

As well as financial regulatory bodies, governments are also responding to the growing crypto market. The government of Uzbekistan recently tripled the electricity tax for crypto miners which equates to an increase of 300%. That said; the country remains crypto and blockchain progressive having introduced a state blockchain development fund called the Digital Trust. The fund’s primary goal is to integrate blockchain into various government projects, including healthcare, education and cultural areas. Crypto trading is also legal and tax free, however, a minimum capital requirement of roughly $710,000 is needed to establish a crypto exchange.

Top tip for brokers: Keep an eye on world news as it will give you a wider idea of how the marketplace is progressing in and outside of Europe.

Top finance events for October 2019

October is a busy month for the finance industry, so here are the highlights.

  • Global Blockchain Summit 3-5 October – Denver USA
  • Japan Blockchain Week 7–14 October – Osaka
  • Financial Innovation Forum 11-12 October- Cyprus
  • World Blockchain Summit 23-34 October – Dubai

The Contentworks Agency team will be attending the Financial Innovation Forum next week. Sign up for the event here or contact us to arrange a meeting with our team.

Contentworks to Attend Decentralized Athens

Other eagerly anticipated events include Decentralized 2019 which will take place at the Divani Caravel hotel in Athens, Greece. Dubbed as Europe’s premier blockchain conference, this event is set to welcome over 1,500 attendees from 50+ countries and we can’t wait to attend.

Returning as media partners for the second year running, we are looking forward to listening to high-profile speakers including Dr. Adam Black who invented the hashcash algorithm used in Bitcoin mining. Our very own Creative Director, Charlotte Day, will also be taking to the stage. Charlotte can offer her connections a 20% Decentralized discount using the code DC19W20.

If you enjoyed this Regulations Roundup – October 2019 update, share it with your friends and colleagues. Contact the Contentworks team for financial services content

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