BIS Investigates Relationship Between BTC Price And Regulatory News
Researchers at the Bank for International Settlements (BIS) found that cryptocurrency markets are responding positively to news of rule-clearing regulatory changes.
Cryptocurrency prices are more sensitive to regulatory changes than previously thought, according to a working paper released by the Dallas Federal Reserve Institute for Globalization and authored by BIS researchers Raphael Auer and Stijn Claessens.
While news of government bans on cryptocurrencies drove prices down, markets rallied as regulation cleared up. The document says that "at the current stage, the authorities around the world have certain opportunities for effective regulation."
As part of the analysis of the reaction of cryptocurrency markets to news about regulation, the authors of the study suggested that the possibility of depositing and withdrawing fiat currencies and the presence of traditional financial institutions on the market are important for users of cryptoassets:
“Why is news about national regulations having such a significant impact on cryptocurrencies that do not have a formal legal house and are traded internationally? Part of our interpretation is that cryptocurrencies rely on regulated institutions to convert common currencies to cryptocurrencies. "
The authors of the document are Rafael Auer and Stein Claessens, researchers in the Monetary and Economic Development Department of the Bank for International Settlements. Auer is Chief Economist for Innovation and the Digital Economy, while Claessens is Head of Financial Stability Measures.
The Bank for International Settlements recently announced that the COVID-19 coronavirus pandemic will accelerate the widespread adoption of government cryptocurrencies from central banks. In addition, in early March, BIS researchers released a report on new financial solutions, including P2P payments, stock tokens and government cryptocurrencies.
KuCoin announces partnership with Onchain Custodian
The KuCoin cryptocurrency exchange announced a partnership with the Singaporean Onchain Custodian and the Lockton insurance company to store crypto assets.
According to the management of KuCoin and Onchain Custodian, due to numerous hacker attacks and problems with the functioning of exchanges, many investors are beginning to lose confidence in centralized exchanges. KuCoin believes there is a need to provide additional security for user assets. Secure storage and insurance will be able to create a reliable trading environment, ensuring the security of the entire infrastructure of the cryptocurrency market, up to the use of the latest technologies and the trading process.
“Since the exchange opened in 2017, security has always been one of our highest priorities. To protect user funds, we work with leading global companies such as Chainalysis. We are now further improving the protection of traders' assets. The Onchain Custodian Audit System and Lockton Insurance Company will provide an additional layer of protection for user funds, ”said Johnny Lyu, CEO of KuCoin Global.
This month, KuCoin has integrated a solution that allows users to control their private keys, and has also begun developing an OTC cryptocurrency trading platform.
Crypto custodian firm BitGo cuts 12% of employees
Crypto custodian firm BitGo has cut 12% of its employees, writes The Block, citing sources familiar with the situation. The cutbacks affected several divisions, including marketing and sales, they said.
A company spokesperson commented on the latest news: “BitGo's transformation into a leading provider of digital asset-related financial services to the institutional market accelerated with the acquisition of two firms last quarter. As we enter new markets with new products and services, we make changes to strengthen businesses and transform teams. We made the difficult decision to let go of a small number of employees, which is 12% of the total staff. These kinds of decisions are never easy to make. We highly appreciate the contributions and abilities of those who have been laid off. "
This week it became known about the acquisition of the tax administration platform Lumina by BitGo. Earlier BitGo bought the platform for issuing Harbor security tokens. In addition, the company's recent initiatives have been related to the expansion of the landing and staking business.
BitGo intends to become a full-blown primary broker so that clients of its custodian service can trade in a variety of markets, sources said. Sources, however, doubt the unambiguous correctness of such a decision, since because of it the company may have a conflict of interest with its own clients.
BitGo announced last December that it would no longer support the Bitcoin SV cryptocurrency due to compatibility issues.
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