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Crypto Markets News

Cryptocurrencies Market And FinTech Companies Are Increasingly Attracted By Luxembourg

According to Luxembourg’s Finance Minister, Pierre Gramegna, the world’s economies do have room to incorporate cryptocurrencies market, which, in his opinion, can coexist with fiat money. Also, Luxembourg is more and more attractive for cryptocurrencies and FinTech companies.

In an interview published on the Luxembourg government’s website, the official added that he does not believe that cryptocurrencies will ever replace traditional currencies due to the volatility that characterizes them and since many people will prefer to continue using fiat money.

He, therefore, predicted the coexistence of both types of currencies, a fact that would depend, in his opinion, on the cryptocurrencies regulations that would be implemented in the coming years.

In this regard, the minister recalled that in order to control the emerging market, Luxembourg was one of the first European countries to apply the same regulatory regime to cryptocurrencies exchanges as to any other classic payment companies, following the guidelines of the European Banking Authority.

Regarding the tax issue, Gramegna supports the idea of waiting for the initiatives that will be presented for the creation of a general legal and legislative framework for cryptocurrencies, both to be debated during the G20 and the Organization for Cooperation and Development (OECD) and the European Union.

Luxembourg is more and more attractive for cryptocurrencies and FinTech companies

The Minister of Finance has also highlighted the attractiveness Luxembourg has for many companies in the cryptocurrencies market and FinTech companies, which have established themselves in the European small country, that is Luxembourg, due to its strategic position and friendly legal framework.

He explained that everything is due to a process of financial diversification initiated by the government in 2013, in which crypto coins are only one of the key elements for attracting investors.

Blockchain technology and FinTech companies have also been a government priority, which is why initiatives are being taken to promote them, including the launch of the Luxembourg House of Financial Technology, which has attracted many cryptocurrencies market and FinTech investors and entrepreneurs to the country.

In this way, Luxembourg joins the list of European countries that are becoming centers of innovation, due to their policy of opening up to the emerging ecosystem, that is cryptocurrencies market and FinTech companies, as has happened in Malta, where many cryptocurrency exchange houses and blockchain technology startups have also been legally accepted.

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Crypto Markets News

SBI Virtual Currency Platform, In Partnership With Ripple (XRP), Will Launch This Summer

Ripple (XRP) is doing pretty good in cryptocurrencies markets as it gained 8% today. However, it rebounded to $0.90 but is still recording a 2.26% gain in the last 24 hours. However, SBI Virtual Currency platform has just been announced to be launched during summer. The company thinks XRP is the most innovative cryptocurrency at least in terms of the improvements it can bring to the banking and remittance institution cross-border transactions.

SBI Holdings former CEO Yoshitaka Kitao, now the President of Premium Financial Services Co., is convinced that with the institution’s commercial initiative, once the company’s cryptocurrency exchange platform is rolled out during the summer, Ripple (XRP) would rank first in terms of trading.

When we do, it will be number one in the blink of an eye so quickly, so even if a large number of customers come, we can build a system that can handle it. We have to look for security thoroughly.

Yoshitaka Kitao, ex-CEO of SBI Holdings, actually President of Premium Financial Services Co.

 

SBI Virtual Currency platform, in partnership with Ripple (XRP), will be launched this summer

Both Yoshitaka’s actual company and the SBI Holdings are acutely conscious that the overall volume of cryptocurrency transactions has been cut in half from December 2017. They are very hopeful in that they will dominate the Japanese cryptocurrencies markets in a way that is secure for crypto holders.

This would follow the outrageous hacking of Coincheck after which more than $500 million in NEM (XEM) has been stolen, in Nem (XEM), by hackers and which had the Japanese cryptocurrencies regulators seek solutions from the Japanese cryptocurrency exchanges. Thus, the challenge both Premium Financial Services Co. and SBI Holdings are embarking to is huge.

Also noteworthy is that Yoshitaka Kitao was very bullish regarding Ripple (XRP) as SBI Holdings entered into a collaboration with the Ripple group in January 2016. SBI Holdings has been in business since 1999 and has spearheaded Internet-based payments and financial solutions. Not surprisingly, the company has been the first ever to associate with the Ripple company.

SBI is committed to delivering financial services in the equity, banking, securities, insurances and now cryptocurrency exchange services, as the long-awaited SBI Virtual Currency platform has just been released in partnership with Ripple (XRP).

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Crypto Markets

Plus500 Soared Up By 200% In the Last 12 Months Thanks To Cryptocurrencies

Plus500, the renowned investments firm, triples its sales and clients database with the cryptocurrencies boom at the beginning of the year. The effects of the crypto craze continue to be felt on the stock market at the stocks of Plus500 are continuously registering gains. The broker specialising in derivatives contracts has recently become one of the leading securities on the London Stock Exchange.

The shares of Plus500 rose 5.75% today, bringing the accumulated appreciation in the last 12 months to 207%. Its capitalization exceeds the level of 1,6 billion GBP, which equals roughly to $2,17 billion USD.

Despite this rally, investors became more optimistic just after today’s release of Plus500 results for the first quarter of the year.

Cryptocurrency trading was the most beneficial for Plus500

As it has happened with the Plus500 share price, both sales and the registration of new customers tripled compared to the previous year, thanks mainly to the investments craze triggered by cryptocurrencies, especially by Bitcoin (BTC). The crypto craze started at the end of 2017 and continued during the first 4 months of 2018, despite the cryptocurrencies market’s ups and downs.

The company’s revenues increased from $77.5 million to $297.3 million, and new customer acquisition soared from 22,210 a year ago to 72,960 in the first quarter of 2018.

Also, at the end of March, the company had 218,187 active customers, which means three times more than in March 2017.

Plus500’s earnings soared up thanks to the crypto craze

The recorded growth levels have also boosted the group’s earnings to $237.3 million, which are now five times more than the $45.8 million achieved in the first quarter of last year.

The company itself acknowledges that it will be almost impossible to repeat these growth rates in the forthcoming quarters due to the slowdown in the cryptocurrencies investment boom.

The recent investments craze over cryptocurrencies has totally shadowed the threat of a stricter regulatory market regarding the financial products such as CFDs (Contracts for Difference), being a beneficial situation for Plus500 which soared by 200% in the last 12 months. However, the cryptocurrencies market tend to follow the same direction towards regulations, thus, it might be possible that the crypto craze to slow down faster than expected.

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Crypto Markets

Cryptocurrencies Market Might Have A Free Future In Chile, As The Minister Of Economy Expressed Desire To Work With Blockchain Technology

Chile’s Minister of Economy, Development, And Tourism, Jose Ramon Valente, declared that it is necessary to give the cryptocurrencies market a chance because, in his opinion, the country cannot remain outside blockchain technology.

During the presentation of the new executive vice-president of the Production Development Corporation, Valente stated that cryptocurrencies could be considered as “the economy of the future”. For this reason, he says, the Chilean government does not want to be left out of this innovation.

With this idea in his mind, the minister urged the country’s economic actors not to “artificially hinder” the crypto ecosystem, since its success or failure must be related solely to its functioning.

What we are interested in is basically giving them the opportunity, because they are an important innovation that is happening all over the world […] if we give them a chance and they fail, well, they will fail as many good ideas that are left in the way fail.

Jose Ramon Valente, Minister of Economy, Development, And Tourism of Chile

Cryptocurrencies market in Chile will not face regulations, as the country is still accepting original blockchain technology

However, Valente assured that the Ministry “is not for or against cryptocurrencies market”. The concern is that Chile may be closing in on the technological advances occurring in the rest of the world, namely, the blockchain technology.

These statements come after weeks of tension over the legal dispute between Chilean cryptocurrency exchange houses and banks, as these entities refuse to provide commercial services to the exchange platforms.

A few days ago, the Tribunal for the Defense of Free Competition of Chile ordered 9 banks to reopen the accounts of the cryptocurrencies exchange houses.

The position of the Ministry of Economy could calm down the reprisals against Chile’s Bitcoin (BTC) ecosystem. However, there is still a long way to go to resolve the legal situation of the cryptocurrencies market in Chile, as there is no law for the cryptocurrencies regulation of crypto exchange.

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Crypto Markets

Ripple (XRP) And Ethereum (ETH) Could Be Nominated As Securities

Gary Gensler, the former director of the US Merchandise Futures Trading Commission, recently announced at the MIT Blockchain Conference that regulators have a “strong case” against Ethereum (ETH) and Ripple (XRP) cryptocurrencies. A case that aims to clarify the classification of these two digital currencies, because apparently there are those who claim that they are “unregistered financial values”.

Ripple (XRP) and Ethereum (ETH) should be considered values by the way in which they were issued

In the case of XRP, the currency is created by a central organization. ETH, on the other hand, was issued through an ICO (Initial Currency Offer), according to Gensler. These qualities, he says, are framed within the vision of issuing and trading shares of a company.

The representatives of Ripple and Ethereum Foundation have publicly rejected that XRP and ETH cryptocurrencies are financial values. Similarly, the researcher and lawyer Peter Van Valkenburgh believes that Gensler is not taking into account the evolution of these cryptocurrencies.

According to Van Valkenburgh, the Ethereum Foundation of 2014 and the actual company are currently distinguishable because, although the ICO carried out four years ago can adjust to the status of financial value, the way in which the network works at this time it has changed radically.

Ripple company denied having a direct influence on the Ripple (XRP)

However, the connection of the Ripple company with the cryptocurrencies market worries several exchange houses, as the Securities and Exchange Commission (SEC) warned that all cryptocurrency exchange platforms that accept assets rated as securities must be subject to the corresponding legislation.

Currently, the classification of cryptocurrencies as financial values in the United States is shallow. This is why we must take into account that Gensler’s statements take place in a complicated legal landscape and with an imprecise use of terms.

The verdict on the classification of these two cryptocurrencies is still uncertain, however, there are indications that the SEC might be receptive to Gensler’s argument. A possibility that could mean the illegalization of the use of both Ethereum (ETH) and Ripple (XRP) in all the cryptocurrency exchange houses that are not registered with the SEC.

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