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Regulatory Series on Cryptocurrencies: Canadian authorities to abandon shorting cryptocurrencies
Canada has always been at the forefront when it comes to the gamut of cryptocurrency.
As per a survey by the Bank of Canada, Canadians’ awareness of Bitcoin rose from 64% to 85%, but ownership doesn’t seem to be commensurate. Even then, Canadian Governmental Authorities recently appeared to have been meticulous in their auditing systems.
Their taxation of cryptocurrencies in the region has been mandatory, subsequently, an entrusted cryptocurrency unit was designated in 2017. While the CRA (Canada Revenue Agency), in conjunction with federal and provincial governmental authorities tracks functions pertaining to crypto-business in Canada and generate tax incentives, external agencies have also been conducive in rendering their expertise in the concerned areas.
For now, the Canadian Securities Administrators and the Investment Industry Regulatory Organization of Canada (IIROC) have collaboratively proposed a framework for cryptocurrency exchanges that hinders shorting as well as margin trading of crypto-assets.
In this perspective, very recently, a consultation paper was designed in the name of ‘Proposed Framework for Crypto-Asset Trading Platforms’ by Canadian Securities Administrators and the IIROC, that sought after opinions on the cryptocurrency regulations.
Wherein, the Canadian regulators outlined their major cause of concerns about potential risks within the gamut of crypto-space.
No doubt DLT is likely to transform financial and other facets of the business world with enormous benefits, on the contrary, they emphasized on heightened risks pertaining to crypto-assets that causes considerable losses.
Upon approval of the proposed framework, a huge setback for cryptocurrency traders, predominantly, short selling and margin trading.
Elimination of the concept of short selling and margin trading as alluring trading instruments on cryptocurrency exchanges would hinder the scope of trading to a larger extent and prohibits only to spot trades.
Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards -181 levels (which is highly bearish), while hourly USD spot index was at -41 (bearish), while articulating (at 10:41 GMT). These indices are also conducive for the above short set-up.
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