UK Treasury to Develop Legal Framework for Private Stablecoins
The UK Treasury has announced the development of a legal framework to regulate stablecoins.
As explained by Chancellor of the Treasury Rishi Sunak, future regulation is consistent with other objectives in the financial services industry. “New technologies such as stablecoins, privately issued digital currencies, can transform the way money is stored and exchanged, making payments cheaper and faster,” he said.
Sunak expressed hope that the UK financial services industry will be able to spearhead a "global dialogue on new technologies such as stablecoins and central bank digital currencies" amid ongoing negotiations for a post-Brexit trade agreement with the European Union.
“We are opening a new chapter in the history of financial services and renewing the UK's position as the world's leading financial center. Our plans will continue to develop an open, attractive and well-regulated market in the UK, ”Sunak added.
Bitcoin Options Trading Volumes Hit New Record In October
The total volume of open contracts in the bitcoin options market amounted to $ 2.4 billion by the end of October, which is 54.7% higher than in September. At the same time, as of October 29, the volume of open contracts reached a record $ 2.6 billion.
Bitcoin options trading volume also reached new heights. In October, $ 5.8 billion of options were traded, which is 46.4% higher than in September, when contracts for $ 3.9 billion were closed.
Note that the volume of open positions depends on the price of bitcoin - the value of each trading contract increases as the price of the asset rises. And the bitcoin rate has shown a noticeable increase in the last month.
Square customers invested $ 1.63 billion in bitcoin in the third quarter
Founded by Twitter CEO Jack Dorsey, payments company Square sold $ 1.63 billion worth of bitcoins in the third quarter, according to its latest financial report.
The gross profit from bitcoin sales was $ 32 million. In the second quarter, the values were equal to $ 875 million and $ 17 million, respectively, and compared to the same period last year increased 11 and 15 times. The amount of bitcoins sold for the entire 2019 was $ 516 million.
“Bitcoin revenues and gross margins have grown thanks to increased cryptocurrency activity and transaction volume per client,” writes Square.
In October, Square announced an investment of $ 50 million or 1% of its assets in Bitcoin, calling the cryptocurrency "a tool for full participation in the economic life of society and the global monetary system, which is consistent with the company's mission."
“In October 2020, we invested $ 50 million in bitcoin,” Square writes in its latest report. - We expect to keep this investment for a long time. Accounting rules for bitcoin require us to recognize any decrease in the market price below the cost as an impairment loss, while no action is taken when the market price rises until the sale is made. ”
The company notes that it has been selling bitcoin through its Cash App for 10 quarters and thus sold more than $ 4 billion worth of cryptocurrency.At the same time, net income from activities in this area amounted to only $ 34.1 million, taking into account the funds spent on the acquisition of bitcoin. Square's total gross profit in the third quarter was $ 794 million.
