April 6, 2019, | AtoZ Markets - Bitcoin spiked sharply this week, which caused investors to ask the question if the 2019 Bitcoin bull market is confirmed? Furthermore, new band of cryptocurrency regulations in the U.S saw light, and PayPal expanded its blockchain line. Whilst, binary options are permanently banned in the UK now.
These are the headlines for our news panorama today, welcome to the AtoZ Market weekly brief!
Are we headed to the 2019 Bitcoin bull market?
It sounds that bitcoin has had its heyday during the ongoing year so far, reaching around $5169 today, as per the CoinMarketCap's data. Are we at the brink of the 2019 bitcoin bull market or will the crypto correct?
The price had approached the $5,000 wall at the beginning of the week, due to numerous of April's fools day reports about bitcoin and crypto regulation. BTC surged from $4,130 to over $4800 within an hour period.
The closest the aforementioned jump reminds us of, is the one April, 2018 witnessed, in which bitcoin registered a $1,000 difference, hitting the $8,000 ceiling from $7,000.
AtoZ Markets’ price analysis spotlighted the bitcoin price jump in details.
MFSA approves 14 blockchain businesses
The Maltese Financial Services Authority (MFSA) has recently given its green light to 14 Virtual Financial Asset (VFA) agents start in the market, as announced on its website last Tuesday.
One of the main reasons that stood behind the Maltese legislator’s approval is that later sees VFA agents as an important component of the emerging Malta cryptocurrency and blockchain regulation. Any Malta-based company that wants to sell its tokens to investors should receive legal and financial approval.
The Malta’s Virtual Financial Assets Bill, introduced in June 2018, dictates that any crypto company must cooperate with a VFA agent to ensure compliance with the rules of the cryptocurrency and to avoid violation of any financial services.
No more binary options in the UK and a forex scam in Poland
The UK Financial Conduct Authority (FCA) has just confirmed its permanent ban on all means of selling, marketing or distributing binary options to retail customers. The ban mentioned applies to firms that operate in the United Kingdom.
Concerns about the inherent risks of these products, in addition to the poor conduct of the firms selling them, pushed the British financial watchdog to make such a firm decision.
The above-mentioned two concerns were said to have harmed the UK market, as long as the international one, as per the claims, yielding in significant losses.
The FCA anticipates that the new decision will save retail consumers up to £17 million a year, in addition to reducing the risk of fraud by unauthorised entities that claim to offer these products.
Under the newly-introduced ban on binary options, any company in the UK that claims to be authorised to provide binary options trading plans, is definitely scam.
Poland, on the other hand, witnessed a Forex scam that was said to have hands in Cyprus.
The Polish police announced, April 1st, on their official website, that they arrested 11 people, against the background of a Forex scam case, amid news of ties and collaboration with scammers in Cyprus.
The police carried out a raid on the offices of the brokers last week and confiscated documents, computers and data carriers.
The fraudulent company, as per the police documentation, claimed up to 2 million zloty ($520,000) in scam from investors.
AtoZ Market’s mid-week break was with an educative article on how to open a bitcoin wallet.
New US crypto regulations and Canada freezes Vanbex's assets
The U.S. Securities and Exchange Commission (SEC) issued this week, yet another updated band of guidelines on cryptocurrencies.
The guidelines focus mainly on the classification of digital assets as a type of investment contract, emphasizing that the long-established Howey test should be applied to the crypto and ICO in particular. The document provisions stressed also on educating about how “the efforts of others” in a cryptocurrency project can increase the value of the initial investment.
In the neighboring state, Canada, the police froze the assets of the founders of blockchain services company Vanbex, as a precaution in the 2017 Vanbex ICO investigations that are going on for fraud claims.
The court documents dated March 13 read that the company, led by Kevin Hobbs and Lisa Cheng, could raise $30 million CAD (about $22 million) worth of fiat and cryptocurrencies through the sale of a token named FUEL, promising participants that the token’s value would increase by time, while this did not happen, and those who took part in the ICO ended up scammed.
PayPal expands its blockchain activities
PayPal’s latest move was that it joined a Series A investment in the Cambridge blockchain startup, as announced this week.
Cambridge Blockchain is a startup that works on developing a way that grants individuals a method of owning their online identities, as per resources.
PayPal wants through its new partnership to explore new solutions for helping the users of the Cambridge blockchain prove “who they are”, along with keeping top-personal information behind the curtain, based on the concept of bitcoin, where the latter allows its users to store value without having a bank account.
With the news of PayPal, we have come to an end to our tour for this week.
Keep tuned for more news and headlines to come in your Forex and cryptocurrency news hub; AtoZ Markets.