The last full week of July has brought many new developments to the foreign exchange (forex) and cryptocurrency industries. Keep up to date with the most interesting news, such as Facebook’s Libra and how brokers are coping in the European Union (EU) with our latest edition of the best of the week segment.
Open banking will change the financial industry
Since open banking regulations were introduced in January 2018, 133 firms have registered with the Financial Conduct Authority (FCA) to license themselves as account information services providers (ASIPs) or payment initiation service providers (PISPs).
This week Finance Magnates analyzed how and why open banking regulations are going to transform the financial industry. To find out more, read our analysis here.
FX Brokers are struggling to survive
With the second quarter of the year now behind us, retail brokers are about to begin reporting on the outcome of another three months of very low volatility across major FX pairs.
This, mixed with tightening regulations in the EU, China, and Australia, are creating a difficult environment to remain profitable in. To see how this is changing the industry, take a look at our analysis.
Judge Refuses AT&T Lawsuit Dismissal on Crypto Theft
A Los Angeles federal judge ruled this week that a lawsuit in which cryptocurrency investor Michael Terpin accuses telecommunications giant AT&T Mobility of negligence, fraud, and other violations will move forward
As Finance Magnates reported, earlier last year, AT&T found itself on the end of a lawsuit after a customer accused it of allowing hackers to swap his SIM card, in what appears to be an elaborate scheme by fraudsters.
Saxo Bank secures approval to acquire BinckBank
In a joint statement this week, Saxo Bank announced that it had received approvals from Dutch and European regulators to acquire BinckBank, a Netherlands-based online broker, for €424 million.
In the joint statement, the two firms said that the Danish broker had received ECB’s no objection and the approval of the Dutch central bank. Therefore, they advised all shareholders to tender their shares into the offer. Find out what else was said here.
BaFin gives go-ahead to tokenized real estate bond
The next story in our best of the week segment focuses on the German Financial Market Supervisory Authority (BaFin) giving its approval to a blockchain-based bond issuance – the first time that the German regulator has given the green light to such a project.
As Finance Magnates reported, the company’s real estate bond is based on the ethereum blockchain and is backed by a portfolio of properties spread across Germany. The bond has an issued volume of €250 million.
How can regulators learn from FX for Libra regulations?
Libra has been one of the biggest talking points in the cryptocurrency space. The sheer size of the project and its long-reaching implications have drawn both excitement and criticism. Most of the criticism, however, has come from lawmakers, as they try to figure out how to regulate the Libra.
Did COVID-19 Save the Forex Industry?Go to article >>
This week, Finance Magnates analyzed that regulators can use the forex industry as a model on how to regulate Libra, as the European Securities and Markets Authority (ESMA) has some experience in putting a damper on behavioral manipulation in the financial services world.
Monex to Join Facebook’s Libra Association
Monex Group has applied to join Facebook’s Libra project, joining the likes of Visa, Mastercard, Uber, and eBay if the application is approved.
The Tokyo-based financial services firm, which is also the parent company of cryptocurrency exchange Coincheck, announced the decision at its Q2 results meeting.
As Finance Magnates reported, the application will be reviewed by the social media giant by the end of summer, and the Japanese giant will finalize its decision to join the consortium after that.
FIXI traders still waiting to get money back
Clients of now-defunct retail broker FIXI PLC are still waiting for their funds to be returned, eight months after the firm was shut down, Finance Magnates learned this week.
Based in London, the broker was regulated by the FCA but, after being unable to meet financial obligations, was forced into administration last December and the regulator froze the firm’s funds.
Since then, clients have received some money back, but it has taken a lot of time and has been done rather haphazardly. And half a year later, it seems that some clients still haven’t received their cash.
FBI agent exposes Yukom Communications business model
As the case against the former CEO of Yukom Communications, Lee Elbaz, continues in the US, the court published documents with the testimony of an FBI agent who has gathered in-depth knowledge about the industry this week.
In his statement to the court, FBI special agent Greg Fine shared that the company was internally very open about having questionable risks practices. The FBI agent claims that Lee Elbaz was acting knowingly and encouraging its employees to reclassify clients making money as “high risk.”
See what else he said on the fraud here.
Despite bull run, cryptos still have many challenges left
With cryptocurrencies on the rise, many participants have long forgotten the crypto winter, which plagued the industry for months. Now, the future looks much brighter for digital assets. However, there are still many challenges yet to be overcome.
Finance Magnates spoke with Patrick Franz, Managing Director of PFYN Advisory on what are some of the most pressing issues facing the sector and how they can be overcome. Check out the interview.