July 2 – 8, 2018 | International Regulations, Mining Costs & More Crypto News

3iQ Research Group consolidates the top five cryptoasset stories of interest
to investment advisors and our investors.


Trader: Regulatory Maturity Brings Bullish Momentum to Bitcoin

July 2, 2018 – Ryan Rabaglia, the head trader at Octagon Strategy, notes in a recent interview that the ongoing international efforts to regulate cryptocurrencies may ultimately drive the price of bitcoin higher. Based out of Hong Kong, Octagon Strategy is one of Asia’s largest digital asset brokerages, actively trading cryptocurrencies and operating 24 hours a day, 7 days a week. Rabaglia dismissed the market-perceived regulatory pressure on bitcoin, and reminded investors that the price of bitcoin is still up over 100% year-over-year.

“I sort of look at it as a double-edged sword. The uncertainty that’s driven around this regulation is what gives pressure to this market and drives it further down as people don’t know exactly where it’s going to end up,” said Rabaglia. “At the same time, that same topic is going to be what’s going to drive it higher in the end. Once we actually establish that regulation, the professional and traditional players that are going to be entering the market… are going to get that support from regulators.”

Watch the full interview here.


Switzerland May Grant Banking Access to Crypto Businesses 

July 5, 2018 – Crypto companies based out of Switzerland may have access to traditional banking services as early as this year, says Swiss politician Heinz Tännler. While there have been a few exceptions, most Swiss banks have been refusing banking services to crypto companies, potentially stunting growth within the country’s fintech sector. Tännler expects that Swiss politicians and regulators will remove barriers over the next few months, potentially opening the door to crypto companies based in Switzerland to operate with banks like any other legitimate businesses. Tännler mentions that Switzerland’s central bank, financial supervisor, and federal government are “willing to help” crypto companies obtain banking services, fearing that otherwise these companies could move to more crypto-friendly jurisdictions.

“We hope to clarify relationships by the end of the year at the latest. Time is pressing – other jurisdictions such as Malta and Singapore are very active and making a lot of effort to attract these companies. The lack of access to bank services is a significant competitive disadvantage,” said Tännler.

Read the full article here.


South Korea Now Recognizes Crypto Exchanges as Regulated Banks

July 6, 2018 – The South Korean government will now officially recognize crypto exchanges as regulated financial institutions and banks. Financial authorities have decided to categorize these exchanges in an industry called “Cryptocurrency Exchange and Brokerage”. The classification will allow trading platforms to operate at a higher capacity, but with stricter Know Your Customer (KYC) and Anti-Money Laundering (AML) verification policies. Before the new classification, South Korean crypto exchanges were only considered “communication vendors”, meaning the exchanges could operate with only a $20 license.

Over the next few months, crypto exchanges will need to obtain the approval from South Korean cybersecurity agencies and the Department of Financial Intelligence. Smaller cryptocurrency exchanges, who lack the necessary security measures and may be more at risk of being hacked, will not be able to operate regionally unless they obtain approval from these government agencies.

Read the full article here.


NYSE CIO Gets Hired by Cryptocurrency Exchange

July 6, 2018 – Gemini, a major cryptocurrency exchange based out of New York, has reportedly hired the Chief Information Officer (CIO) of the New York Stock Exchange, Robert Cornish. The hire has been made in efforts to prepare the exchange for larger institutional clients such as hedge funds that are looking to invest in cryptocurrencies. The new position will have Cornish look to expand the current range of products that Gemini offers on its cryptocurrency platform. Despite the underperformance of bitcoin in 2018, the exchange expects the cryptocurrency industry to continue growing at a rapid pace.

“It’s been arguably a slower couple of months in terms of trading, but at Gemini it’s been one of the busiest months of our existence as we scale and build. Certainly, there’s going to be people in the market that lose their interest. That is what it is,” said Cameron Winklevoss, the president of Gemini. “Our belief and thesis have stayed the same … we have conviction, and we keep pointing towards the north star and our goal.”

Read the full article here.


Analyst: Expect Higher Bitcoin Prices From Current Mining Costs

July 5, 2018 – Tom Lee, analyst and co-founder of Fundstrat Global Advisors, thinks that the rising costs associated with bitcoin mining may hinder its supply and ultimately drive prices higher. Bitcoin’s protocol sets a cap on the maximum supply of bitcoin outstanding at just 21 million coins. Approximately 80% of bitcoin has already been created through the mining process, but the rising costs associated with mining may make it more difficult to create the coins. Lee notes that the “fully loaded” cost of mining bitcoin is somewhere around $7,000 USD. Historically, bitcoin had traded at about 2.5 times the cost of mining.

“The reason bitcoin looks really good here is the cost of mining around $7,000 fully loaded. And the difficulty is rising. So by the end of the year, it’s going to be $9,000,” said Lee. Current conditions for Bitcoin mining “imply fair value over $20,000, roughly $22,000. We still think bitcoin can reach $25,000 by the end of the year or something like that.”

Read the full article here.


3iQ Global Cryptoasset Fund: Price as at July 6, 2018

3iQ is the first regulator approved multi-cryptoasset portfolio manager in Canada, providing accredited investors with exposure to bitcoin, ether, and litecoin through its 3iQ Global Cryptoasset Fund.


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2019-08-06T19:55:14-04:00 July 8th, 2018|