The Crypto Beat - May 26, 2021
Here are all the latest stories related to cryptocurrencies Wednesday May 26, 2021.
Bitcoin
Bitcoin no longer ‘fringe asset’ — stock-market volatility rises after crypto’s ‘extreme’ moves, study says
Like it or not, stock-market traders need to keep an eye on bitcoin prices or risk getting whipsawed when the popular but volatile digital asset makes big moves, according to a study by Singapore bank DBS.
“The upshot is that bitcoin is no longer the fringe asset that it once was, given the higher correlations and increased U.S. equity volatility that trail extreme moves in bitcoin markets,” wrote Chief Economist Taimur Baig and macro strategist Chang Wei Liang, in a research report published Tuesday.
Citing a lack of sufficient daily data, they chose to analyze correlations based on hourly returns, comparing bitcoin with continuously traded futures on the S&P 500
They found that the correlation was positive for every month since November — meaning that bitcoin and stocks tend to move in the same direction. Source: MSN
Poloniex
Canadian Regulator Alleges Poloniex Not Complying With Securities Laws
The Ontario Securities Commission of Canada has said that crypto asset exchange Poloniex failed to discuss regulatory compliance with it, the only such company of 70 requests to refuse or ignore the request. The agency will hold a hearing on the matter on June 18.
The OSC believes that Poloniex is “accountable for disregarding Ontario securities law,” also wishing to “signal that crypto asset trading platforms flouting Ontario securities law will face regulatory action.”
The regulator also said that the services that Poloniex offered amounted to securities and derivatives.
"While Poloniex purports to facilitate the trading of the crypto assets in its investors’ accounts, in practice, Poloniex only provides its investors with instruments or contracts involving crypto assets. These instruments or contracts constitute securities and derivatives.”
Russia
Russian lawmakers weighing partial reversal of digital currency payments ban
Digital currency payments in Russia are illegal, but according to local reports, this might soon change. The reports note that some lawmakers in the country are considering revising some aspects of the payments ban including allowing digital currencies to be used as payment in domestic contracts.
Pavel Krasheninnikov, the chair of the State Duma’s Committee on State Building and Legislation, revealed that there are proposals to amend the law to allow digital currencies as a payment medium in domestic contracts.
Speaking at the St. Petersburg Legal Forum, the lawmaker noted that the current law restricts merchants from accepting digital currency payments. However, in instances when the two parties conducting the payment consent to digital currency payments, then they should be allowed to transact, he claimed. Source: CoinGeek
- Aaron Goldstein, Gambling911.com
