- Bitcoin retracement after a huge Thursday but recovery sees it trading near USD 8,800
- The Cayman Islands clarifies laws for crypto
- BTSE claims that increased demand for Bitcoin in April has forced it to increase limits for OTC RFQ by ten times
What a day it was for Bitcoin yesterday! It was surely meant to retrace, as it has done in the past 24 hours, after pushing so fast many people thought USD 10,000 was on its way. It may yet still be of course, but we had first to deal with profit-taking in North America as Bitcoin went to a daily low so far of USD 8,415 (CoinDesk) before quickly recovering to trade at levels closer to USD 8,800 right now.
The Cayman Islands, in the midst of all this, has just announced that it will now clarify its regulations as to cryptocurrency and blockchain, with its legislative assembly now gazetting five new pieces of legislation that will determine how to govern crypto businesses, exchanges in particular.
Under the Virtual Asset Service Provider (VASP) Bill, companies who are providing crypto services such as custodians, exchanges and other decentralized finance (DeFi) providers, would see precise definitions and registration requirements, while also containing other amendments to existing financial legislation for stock exchanges and securities.
One such provision is the sandbox license, which would permit firms working on technologies posing potential risk, for example, money laundering, to register for a one-year license to trial their models.
In the press release, the legislation talks about “a flexible foundation which promotes the use of new technology and innovative enterprise”. It suggests also that this new move comes as a measure to comply with international guidelines on money laundering and anti-terrorism. It reads:
“The proposed framework incorporates relevant anti-money laundering, countering the financing of terrorism and counter proliferation financing (AML/CFT/CPF) recommendations adopted in 2019 by the Financial Action Task Force (FATF).”
It certainly seems to be aimed at taking Cayman Islands out of the shadow of tax haven and offshore haven for criminals, so will also be good news to most crypto companies based there. Known for being a lenient jurisdiction for business registration, the European Union has blacklisted the country as a tax haven, but now that Binance, among others, is rumored to be considering it to be their new home for registration, it will take note it may now need to do just as much as others, considering the global transition to FATF’s travel rule and its establishment of traditional banking requirements for crypto businesses.
Meanwhile, in yet another offshore jurisdiction, a crypto exchange based in the British Virgin Islands, BTSE, claims that increasing demand for Bitcoin in April has forced it to increase the limit for its over-the-counter (OTC) request for quote (RFQ). In fact, the demand has been so strong that the increase has gone 1,000% from USD 100,000 to USD 1 million.
It suddenly feels quite long ago since Black Thursday in March took crypto and almost every other market to their knees, when Bitcoin crashed to USD 3,850. IT has since rallied, touching USD 9,450 yesterday and still more than twice its yearly low today. BTSE CEO Jonathan Leong explained to CoinDesk:
“After being extremely undervalued throughout the greater part of March, bitcoin has made a full recovery in just one and a half months. Approaching the halving, I see the outlook as very bullish.”
Traders usually use RFQ as a tool to overcome price slippage. Essentially, it is a digital message sent in real time to liquidity providers who interface between interested sellers and buyers. A provider provides a quote as a response to RFQs by other buyers and sellers, not dissimilar to the way traders shout out their quotes in a trading pit on stock exchange floors, trying to find willing takers or makers. Leong added:
“We’re hearing directly from our users that bitcoin and other alternative forms of finance are increasingly in demand. Users are demanding this limit increase.”
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The post Trending Bitcoin News and Market Sentiment May 1st, 2020: Cayman Islands Issues New Crypto Legislation, April Demand for Bitcoin Forces Exchange to Increase OTC Limits Ten-Fold appeared first on BitcoinNews.com.
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