Bitcoin Markets Policy & Regulation

Swedish regulators warn consumers against crypto as markets tumble

img-ads

Sweden’s financial regulator, Finansinspektionen, or FI, has issued a fresh warning to retail traders about the high risks and low consumer protections associated with crypto-related investments.

In an announcement published on Feb. 22, the regulator wrote that while it had already issued a warning regarding the risks associated with Bitcoin (BTC) trading, it was publishing further advice following its completion of a wider study of the crypto asset sector.

The FI says it has carried out a “thematic review of the market for financial instruments with underlying crypto-assets.” FI Director General Erik Thedeén said: 

“Products based on crypto-assets are unsuitable for most, if not all, retail consumers. The consumer protection available is inadequate, and crypto-assets are difficult, if not impossible, to value on a credible basis.”

Thedeén view is compounded by the fact that consumer protection regulations in Sweden do not comprehensively protect investors from the risks tied to purchases of financial products or instruments that have crypto assets as an underlying asset. 

The FI’s warning coincides with a period of marked volatility in the cryptocurrency spot and derivative markets. Bitcoin (BTC) dropped over 17% in value in the last 24 hours, and $5.64 billion worth of BTC futures positions were liquidated in the same time period.

While the Swedish financial authorities’ skepticism about the health and impact of the cryptocurrency markets is evident, the country’s central bank is pursuing a research and development pilot for a centrally-issued e-krona that could provide a complement to cash.

img-ads

Leave a Comment

Your email address will not be published.

You may also like

Bitcoin Latest Tech

1 billion people will store life savings on their phone in Bitcoin by 2026 — MicroStrategy CEO

Bitcoin (BTC) will be the savings method of choice for one billion people on their phones by 2026, MicroStrategy CEO Michael Saylor predicts.

In an interview with CNBC on Feb. 23, Saylor, whose company owns in excess of 70,000 BTC, continued his public Bitcoin advocacy, calling it “the dominant digital monetary network.”

Saylor: Billions will choose Bitcoin for savings

Saylor was speaking a day after U.S. Treasury Secretary Janet Yellen described Bitcoin as “inefficient,” comments which accompanied a price dip of over 20% from all-time highs of $58,300.

For him, however, he comments were of little consequence compared to the broader Bitcoin use case quickly encroaching into more and more people’s financial lives.

“The story here that’s not being told is that Bitcoin is egalitarian progressive technology,” he told CNBC’s Squawk Box segment.

“We’re going to see a day when 7-8 billion people have a bar of digital gold…

View More Article
Blockchain Business Investment Markets Policy & Regulation Tech

The United Arab Emirates chase crypto and blockchain adoption

For a long time, the United Arab Emirates has been one of the most progressive crypto countries in the world. For example, government-owned licensing firm Kiklabb allows clients to pay for their visa and trade license fees via various digital assets to the Dubai Financial Services Authority, which announced its decision to work on a holistic crypto regulatory framework as part of its 2021 business plan.

In fact, as a result of Dubai’s crypto-friendly policies, Ripple, a firm that has recently been in murky waters with the United States Securities and Exchange Commission, announced its decision to open an office in the region. Furthermore, the UAE and Saudi Arabia are reportedly working on a joint central bank digital currency research initiative that has been dubbed “Project Aber.”

Commenting on why the UAE is fast becoming the destination of choice for some crypto/blockchain startups, Mazdak Rafaty, managing partner…

View More Article
Blockchain Markets Policy & Regulation Tech

Cointelegraph Consulting: Research outlines how DeFi can merge with traditional finance

While public adoption of crypto assets is increasing, global regulations continue to progress and recognize decentralized technologies as a suitable infrastructure for the dematerialization of securities. In Luxembourg, the country that is second in the world in terms of assets under management, the country’s regulator adopted a bill that explicitly recognizes the possibility of using distributed ledger technology for the dematerialization of securities. 

The regulation is moving quickly elsewhere across Europe: Tokenized securities now fall under the same rules and regulations as traditional financial instruments in many other European countries including France, Switzerland, Germany, Italy, the Netherlands, Romania, Spain and the United Kingdom.

Read the e-book to discover how you can be part of this emerging digital asset industry. Download the full report here.

What’s next for the industry? Due to the increase in public adoption and the favorable regulatory environment, demand from the financial industry to access digital…

View More Article
Bitcoin Blockchain

Francis Suarez, Miami’s pro-crypto mayor, to appear on Blockchain & Booze tonight

Francis Xavier Suarez, the mayor of Miami and a firm Bitcoin proponent, will appear for a 30-minute fireside chat on Blockchain & Booze this evening.

The episode, hosted by Adam Levy of blockchain venture studio and fund Draper Goren Holm, and streamed live from Cointelegraph’s Twitter account, will explore Miami’s emerging status as a global crypto hub, as well as Suarez’s civic leadership responsibilities. The chat will be followed by a half-hour-long AMA with guests from across the crypto industry.

Suarez attracted the attention of the crypto industry in January after Miami became the first municipal government to host the Bitcoin White Paper on its website. In February, Suarez announced his intention to transform Miami into the city boasting “the most progressive crypto laws” in the United States, with the Miami council recently exploring allowing its residents to pay taxes and…

View More Article
Bitcoin Blockchain Business Tech

India’s Warren Buffet says Bitcoin hangover will be worse than the party

The billionaire investor known as India’s Warren Buffet, Rakesh Jhunjhunwala, has voiced his support for India’s impending cryptocurrency ban, warning that the hangover from Bitcoin (BTC) mania will be worse than the party itself.

Jhunjhunwala, speaking on CNBC’s Street Signs Asia segment on Feb. 23, said the Bitcoin party was one he’d rather not attend:

“I think it’s speculation of the highest order. I don’t want to join every party in town. I think the hangover is much worse.”

The headache from that hangover was felt to some extent on Tuesday, as almost $400 billion departed the global cryptocurrency market cap. Bitcoin lost close to 20% of its value in hours, while much of the altcoin market suffered losses in excess of 30%.

Whether that means the bullish Bitcoin party is over for now, or if investors will return for a hair of the dog that bit them,…

View More Article
Bitcoin Opinion Policy & Regulation

ECB wants final say on the legal status of private stablecoins in the EU

The European Central Bank has finally sent its formal opinion on crypto regulations to the European Commission.

According to Reuters, the ECB has asked EU lawmakers for veto powers concerning private stablecoin projects like the Facebook-backed Diem. An excerpt from the ECB opinion document reads:

“Where an asset-reference arrangement is tantamount to a payment system or scheme, the assessment of the potential threat to the conduct of monetary policy, and to the smooth operation of payment systems, should fall within the exclusive competence of the ECB.”

As part of the demand for veto powers on stablecoins, the ECB has urged the EU to ensure that its ruling should be binding on all national authorities in the Euro Zone. According to the ECB, stablecoin issuers must comply with the same robust liquidity requirements as banks and other mainstream financial institutions.

For the ECB, some “rigorous liquidity requirements” are necessary to ensure…

View More Article
%d bloggers like this: