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Breaking: SEC Is Reviewing The Nine Bitcoin-Backed ETF Denials

The Bitcoin and crypto-backed ETF saga has continued, with the SEC recently revealing that it would be reconsidering nine proposals that were denied on August 23rd. As reported by Ethereum World News, nine ETF applications from ProShares, Direxion, and GraniteShares were rejected yesterday in a triple-blow to the stomachs of crypto investors, with the SEC citing concerns of manipulation and a lack of “significant size” markets to back up BTC’s spot price.

However, with a recent development pointed out by CoinDesk, the U.S. Securities and Exchange Commission will be “reviewing” the disapproval orders, in a so-called “staying” process.

SEC Commissioner Hester Peirce, crypto’s ‘inside woman’ in legacy systems, announced that yesterday’s orders would be reviewed in accordance with Rule 431 of the Commission’s Rules of Practice.

Simplifying the explanation of the rule, Pierce, who has been dubbed ‘CryptoMom’ by the community, noted that the Commision may often review actions taken by its staff. Elaborating, the SEC Commissioner wrote:

In English: the Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff’s action, as will now happen here.

With this move, Hester Peirce has cemented herself as somewhat of a crypto proponent, as she vehemently spoke out against the SEC’s recent decision to disapprove the Winklevoss Twins-backed ETF for the second time.

Crypto Market Surges On SEC Update

As a result of this new development, the crypto market saw a quick surge to the upside, with Bitcoin quickly seeing a $150 gain, from $6,400 to $6,500 within a matter of minutes.

Altcoins followed Bitcoin, and are currently gains that are near-identical to the market leader. As it stands, Bitcoin has found a place to stand at $6,510 and is up by approximately 3% in the past 24 hours. While this bout of positive price action is welcome, some fear that this will not be enough of a move to bring the crypto market back into a state of “FOMO.”

This is a developing story, so Ethereum World News will be sure to keep you updated.

Photo by Joakim Honkasalo on Unsplash

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Crypto Media Banned From WeChat In Sudden Online Sweep

Blockchain and cryptocurrency media accounts in China have been banned on WeChat, the messenger app owned by Tencent.

As first observed by Lanjiner, a China-based finance news outlet, among those affected are Jinse, which is backed by Node Capital, and Deepchain, a site supported by several token funds.

At press time, on Jinse’s official Wechat account, none of its previous articles are shown. Instead, a text is posted indicating that the account has been banned.

That message explains:

“Due to users’ complaints and after the platform’s examinations, the account is found to violate ‘Temporary Regulations on the Development and Management of Public Information Services for Instant Messaging Tools’ and all contents have been banned. The account has been prohibited for use.”

The same message is also shown on the account pages for Deepchain, Huobi News and CoinDaily.

It’s not clear at this time precisely why the accounts have been affected. However, newly-enacted rules from China’s government may have played a factor.

The Temporary Regulations on the Development and Management of Public Information Services for Instant Messaging Tool is a set of rules announced and enacted by the Cyberspace Administration of China on August 7.

One of the rules in that release lays the groundwork for accounts to be impacted on the grounds that they must “abide by relevant laws and regulations,” stating:

“The users of instant messaging tools serving in public information service activities shall abide by relevant laws and regulations. For instant messaging service users who violate the agreement, the instant messaging service provider shall take measures such as warning, restriction, suspension, and closure until the account is closed, meanwhile saving the relevant records and fulfilling the obligation to report to the relevant authority.”

Back in March, People’s Daily, the state-run media outlet in China, directly criticized blockchain and cryptocurrency media outlets in China and claimed that these media outlets were helping manipulate the cryptocurrency market.

Notably, Jun Du, the founder and CEO of Huobi, was named in the commentary as “a classic example” of the problem in China’s blockchain media ecosystem.

Usually considered as the voice of the Chinese Communist Party (CCP), People’s Daily’s commentary was seen by some as the government’s call for stricter regulations on blockchain media outlets.

Wechat logo image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Breaking: SEC Delays VanEck ETF Decision Until September 30th

The SEC has just revealed that it will be delaying the verdict regarding the Bitcoin ETF backed by three well-established firms, these being the Cboe, VanEck, and SolidX.

This information comes via a two-page document released by the American regulatory body on Tuesday afternoon. In the document, it was noted that instead of the verdict being completed on/around August 16th, it would be pushed back until September 30th, with the SEC pointing out that it was only exercising its rights to do so. Eduardo A. Aleman, an assistant secretary at the SEC, wrote:

The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change. The Commission, pursuant to Section 19(b)(2) of the Act,6 designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.

Upon the release of this announcement, cryptocurrency industry leaders and influencers took to Twitter to convey their thoughts on this unfortunate outcome for the long-awaited crypto-backed ETF.

Jake Chervinsky, an American lawyer with a focus on cryptocurrency/fintech, wrote:

Expected result, earlier than expected execution. New deadline: Sunday, September 30, exactly 45 days from the prior deadline of August 16. I had predicted October 1, thinking the SEC would carry the deadline over to the next Monday.

Chervinsky, who holds an ear close to the ground of this industry, added that he actually expects yet another extension, with the U.S. Securities and Exchange Commision potentially adding an additional 45 days (or so) to the verdict date. While some questioned this sentiment, Chervisnky pointed out that it is within the Commission’s right to “institute proceedings,” allowing the regulatory body to legally setback the decision date until December 29th.

This setback was expected by some industry leaders and analysts, with Brian Kelly, CNBC’s foremost crypto analyst and CEO of the BKCM fund, noting that he sees the first Bitcoin ETF appearing sometime in early 2019, not during 2018.

Bitcoin Drops $250 Following The SEC’s Announcement

While this may have been expected, Bitcoin immediately took a nosedive following the release of the document, with the price of asset falling by over 200 points within a matter of minutes.

At the time of press, Bitcoin is currently at $6,900, down approximately $250 from the daily highs, or 3% in terms of percentage.

This is a breaking news story, so Ethereum World News will be sure to keep you updated as this situation develops further.

Title Image Courtesy of Charles Rondeau

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SEC Delays VanEck-SolidX Bitcoin ETF Decision to September

The U.S. Securities and Exchange Commission (SEC) has delayed a decision on a proposed bitcoin ETF, pushing its final determination ahead by more than a month.

In an order published on August 7, officials at the agency wrote that they were giving themselves more time to deliberate on whether to approve what would be the first exchange-traded product of its kind in the U.S. It’s also perhaps unsurprising, given that in the past, SEC officials have used the agency’s statutory powers to push back decisions on bitcoin ETFs in the past.

As the agency wrote:

“Accordingly, the Commission … designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or
institute proceedings to determine whether to disapprove, the proposed rule change.”

The proposed rule change from CBOE would, if approved, constitute a critical point on a path to listing a bitcoin ETF, in conjunction with money management firm VanEck and crypto startup ETF. The companies submitted their proposal back in June, setting off a busy comment period that saw the crypto community rally in support.

All told, more than 100 comments were submitted through mid-July.

The choice to punt forward a final decision also comes days after SEC commissioners completed a review on a proposed bitcoin ETF from investors Cameron and Tyler Winklevoss, whose multi-year effort was dashed after a majority of the SEC’s commissioners backed up the agency’s original March 2017 decision.

One commissioner, Hester Peirce, dissented that decision, later telling CoinDesk in an interview that the move to block a bitcoin ETF is a disservice to both investors and innovators.

As of press time, the price of bitcoin has not reacted, trading at around $7,060 according to the Bitcoin Price Index (BPI).

The SEC image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Breaking: Winklevoss Bitcoin ETF Gets Rejected Yet Again

It was just announced that the most recent proposal for a Bitcoin ETF from the Winklevoss Twins, the owners and founders of the fittingly named Gemini exchange, was just rejected by the SEC.

Old News Rehashed, Or Something Entirely New?

At first glance, many saw this as another bout of old news that was reposted by mainstream media. Charlie Shrem, a legend in cryptocurrency circles, took to Twitter to write:

This is old news, While I think Cameron and Tyler would have run one of the better ETF’s, The new ETF excitement came from the fact that CBOE filed their own Bitcoin ETF. The SEC would rather grant an ETF to an existing institution over a new one.

However, according to the news broken by CNBC just one hour ago, the SEC has now rejected the permitted revision of the ETF proposal, that was originally rejected in 2017. According to the regulatory body’s new statements, there were issues with fraud and investor protection in the revised proposal, resulting in a denial from the SEC. Additionally, the SEC noted that there were high levels of manipulation in cryptocurrency markets, which are conducted primarily by “unregulated” markets that exist overseas, away from the prying eyes of U.S. regulators.

The vote for the Winklevoss-backed ETF was reportedly three against, and one for the ETF, not most welcome showing cryptocurrency proponents looking in on this decision.

Cryptocurrency Prices Immediately Drop Following The Announcement 

As a result of this announcement, the market immediately took a dive, with Bitcoin seeing a rapid $300 drop to the ~$8,000 price level. Altcoins followed close behind Bitcoin, posting similar percentage losses in comparison with the foremost cryptocurrency.

It is currently unclear how this ruling will affect the upcoming verdict with the CBOE-backed ETF, but many are still hoping for the best, as it was made clear that the verdict regarding the VanEck/CBOE proposal is still in the works.

Many see a Bitcoin ETF as the key to widespread adoption, and as BitMEX’s CEO puts it, $50,000 by the end of the year, so it would be advantageous for an ETF proposal to eventually garner approval from regulatory bodies.

This is a breaking news story, so Ethereum World News will be sure to keep you updated as this situation develops further.

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The Road To Recovery as Bitcoin price Returns – Huobi and OKCoin to Continue for Another Month: Investor Migration

The Bitcoin-to-fiat exchanges ban in China announcement today that will be happening on Sep 30, impacted the market so hard all cryptocurrencies majorly crashed in a couple of hours. Bitcoin did reach lower than even $3,000 hitting $2,962, which counts approx $1k loss in value in a day.

The drama created by the regulatory, initiated a high number of requests to enlist from mainland in a short amount of time. Exchange platform Gatecoin CEO Aurelien Menant, Hong Kong based added that:

“Since last Friday, with the rumors of a possible tightening on the regulation of exchanges in the mainland, we have experienced a surge in the number of Chinese clients registering on our platform.”

There were signs that Hong Kong movement and actions related to ICO token will be more like the US and different to China itself.

As the recent news were spread today, two specific exchanges were given one more extra month to complete services when it comes to Bitcoin-to-fiat trading: Huobi and OkCoin.

bitcoin exchanges forgiven

This could have been the reason for a Bitcoin price bounce back in a matter of minutes with the other virtual currency prices following back. For the moment it is trading at $3549.42 with a positive 1.44% increase in the last 24-hours. Whoever used the chance to buy when the price was below the $3,000 major mark or held for longer term made a smart move.

The trading volume in the last 24-hours could the monthly highest at $4.125 billion with Bitfinex leading at 16.40% of the total exchanging.

As the leader of the pack is recovering, the other top-ten cryptocurrencies are following. Ethereum returned to $241, Litecoin is back on its track which could be aiming the previous stable trading ground at $60 with a trading volume of $1.4 bln.

cryptocurrency price prediction after ban

The early updates received mixed reviews, however, with some social media commentators suggesting it is a way for Chinese regulators to prolong market manipulation.


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“All Chinese Exchanges to be Closed on Sep 30”: Crypto Breaking News

According to the officials and regulators, “All” Bitcoin China based exchanges to be closed on Sep 30 and remain compliant.

The once rumors spread about banning trading Bitcoin-to-fiat slowly did take form of reality as it was announced.

A swift indicator has been showed on the market as Bitcoin price is already aiming below $3,000 with a 21% loss in the last 24-hours.

Major figures in the event such as cryptocurrency CEOs have reacted toward the regulation announcement, on an email commentary adding that on the long term Bitcoins stability will be optimistic as it was until now in contrary to the near term understanding what is happening around the market now.

“The price is always a solid metric of the markets’ greed and fear, and reflects regulatory uncertainty at the moment,” Leverj CEO Bharath Rao commented.

“This also signals that development of non-custodial and decentralized models will accelerate.

“Regulation is neither necessary nor possible for decentralized models, and the future may have gotten just a bit brighter by nudging the crypto community to develop high speed, non-custodial exchanges.”

The latest regulatory warnings produced a second mass exodus to p2p trading platforms such as Localbitcoins this year.

If China exchanges stop functioning a major player in the game will stop from working such as China is but that does not mean forever.

“China is practically building a cottage industry for mining and exchanging bitcoin and other cryptocurrencies, so it is hard to believe that they intend to exit a market with so much potential upside,” Jason English of Blockchain alliance Sweetbridge continued.

“Even the apparent ban on ICOs seemed to be more of a stopgap in order to get some policies in place. If anything, this example shows the volatility of the space and that some market-makers can likely take advantage of an unclear news cycle to create a sell-off and buy back opportunity.”