CRYPTOCURRENCIES 5 minutes to read

Crypto Update: Deriving Implications

Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  This week the entire crypto market cap rose by 9.5%, bringing the market cap to USD 355 bn. Ethereum and Bitcoin rose by 4.5% and 15% respectively. This rise resumes the advance of the market which started in April this year.


  • FCA suggests a ban on crypto-derivatives
    UK’s financial watchdog proposed a ban on crypto derivatives to retail investors. The regulator cited a lack of knowledge and the general financial loss for retail clients dealing in crypto-derivatives over the observed period. However, trading and marketing of the actual digital assets themselves would still be permitted under the ban. The proposal can be found here. The FCA is looking for comments during the feedback period lasting until October this year.
  • Singapore suggest VAT-free transactions
    The Inland Revenue Authority of Singapore (IRAS) proposed draft regulation to exempt cryptocurrency transactions from the local value-added tax. This type of legislation will help to grease the wheels of the local crypto-economy, making certain activities more profitable, and give clarity to firms operating in Singapore. This is a peek at the future of the crypto economy where regulators begin to adopt clear and favorable legislation to capture a share of the growing crypto-economy.
  • Kraken CEO in favour of Tether
    Jesse Powell, CEO of the crypto-exchange Kraken, spoke to the legitimacy of Tether the controversial stable coin. Tether has long been speculated to print tethers (USDT) into existence with little oversight and no collateral backing. However, Powell goes on to state that the increase in Tether is an accurate albeit small snapshot of the total fiat currency flow to exchanges. He states that changes in tether supply will likely correlate with the actual banking flows to and from exchanges. His statements give another narrative to the controversial stable coin project.
  • Telegram’s token to sell at triple value
    One of the largest ICOs, which has yet to show a production-ready product using it native token GRAM, will have some of its ICO tokens listed by a third party for sale at triple the previous ICO round’s price. If it sells out, it shows that investors are more than happy to purchase tokens that have minimal use case in the real world all in the pursuit of yield. Downstream investors are buying at a price that is difficult to justify, while early investors cash out at a healthy multiple. This is eerily similar to a spate of tech unicorn IPOs this year which have been hard on those who invested at the IPO, yet kind to the early investors in companies with little or no profit.
Source: Coinmarketcap.com
Source: Coinmarketcap.com
Disclaimer

Saxo Capital Markets (Australia) Pty Ltd prepares and distributes information/research produced within the Saxo Bank Group for informational purposes only. In addition to the disclaimer below, if any general advice is provided, such advice does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of trading any financial instrument as trading can result in losses that exceed your initial investment. Please refer to our Analysis Disclaimer, and our Combined Financial Services Guide and Product Disclosure Statement. All legal documentation and disclaimers can be found at https://www.home.saxo/en-au/legal/.

The Saxo Bank Group entities each provide execution-only service. Access and use of Saxo News & Research and any Saxo Bank Group website are subject to (i) the Terms of Use; (ii) the full Disclaimer; and (iii) the Risk Warning in addition (where relevant) to the terms governing the use of the website of a member of the Saxo Bank Group.

Saxo News & Research is provided for informational purposes, does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. No Saxo Bank Group entity shall be liable for any losses that you may sustain as a result of any investment decision made in reliance on information on Saxo News & Research.

To the extent that any content is construed as investment research, such content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication.

Please read our disclaimers:
- Full Disclaimer (https://www.home.saxo/en-au/legal/disclaimer/saxo-disclaimer)
- Analysis Disclaimer (https://www.home.saxo/en-au/legal/analysis-disclaimer/saxo-analysis-disclaimer)
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)