FCA Bans Crypto CFDs, Central Banks Defy Libra: Editor’s Pick

Keep up to date with some of the top and most interesting stories in the FX and crypto space.

It’s been another busy week in the foreign exchange (forex) and cryptocurrency industries. Central banks might be mobilizing to shut down Facebook’s Libra before it can get off the ground and European authorities give the green light for FIS and Worldpay merger. Keep up to date with the most interesting stories in our best of the week segment.

Abdallah Garib heads new Malaysian-based broker

After a career which has been largely spent in banking, legal and compliance roles in the UK and UAE at banks and forex brokers, Abdallah Garib has taken on a new venture which marks a big step in his career – the Chief Executive Officer (CEO) of FXGate.

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As Finance Magnates reported, FXGate, part of FSG Holdings of which Garib is also the Group CEO, is licensed and regulated in Labuan, Malaysia. The company secured its license back in January of this year and is regulated to provide FX and derivative brokerage and investments to retail, professional and institutional clients.

XM parent applies for US license for Trading.com brand

The second story in our best of the week segment is in the United States, which is about to see its forex market grow. This week, Finance Magnates confirmed that the parent company of XM.com, Trading Point Group has applied for a retail forex license with the National Futures Association (NFA).

In the past, brokers fled the US due to tight regulations. Now, the market is becoming more attractive for retail brokers amid tightening regulations elsewhere. Leveraging its experience and expertise in the market, the parent company of XM.com determined that there is a gap in the US market. 

FCA plans to ban crypto derivatives and ETNs

The Financial Conduct Authority (FCA) published a consultation paper this week, which proposes banning the sale of crypto-based derivatives, such as CFDs, futures and options and exchange-traded notes (ETNs) to retail customers.

According to the regulator, these investment instruments are “ill-suited” for retail investors who cannot access the value and risks associated with them. Find out more about the regulator’s plans here.

First crypto hedge fund receives FCA license

In the same week that the FCA released its consultation to ban the sale of specific crypto assets to retail traders, the watchdog also granted a license to London-based crypto asset management firm, Prime Factor Capital.

As Finance Magnates explained, the license allows the firm to operate as a full-scope alternative investment fund manager. The company will operate under the guidelines of the European Union and will be allowed to hold more than 100 million euros ($116 million) in asset under management (AUM).

Analysis: Cboe might want to reconsider its exit from Bitcoin futures

Back in mid-March Cboe announced that it would be ending its Bitcoin futures offerings after the closure of its last open contract. This decision seemed to be motivated by a lack of interest in the product.

However, as Finance Magnates analyzed this week, Bitcoin is on the rise and appears to be going from strength to strength, bringing renewed interest in crypto trading, as well as crypto futures trading. Is this enough to motivate Cboe to change its mind? Read more here to find out.

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What are Aussie brokers doing with overseas clients?

In recent months, Australian brokers have had to reevaluate the way they deal with overseas clients. To find out how the onboarding process has changed, the Finance Magnates Intelligence Department sent out an email this week to the top 20 Australian brokers looking for a way to open an account as a non-AU resident. The survey was done anonymously.

So what were the results? You’ll have to follow this link to find out.

FIS and Worldpay merger gets the green light

The gigantic merger between Worldpay and Fidelity National Information Services (FIS) has been given the go-ahead by European authorities.

The multi-billion-dollar deal will see Worldpay be taken over by FIS. According to Reuters, anti-trust regulators in the European Union, who had to give their approval to the deal before it could go ahead, have given the green light for FIS to continue with the deal.

Find out what this merger could mean for the payments space here.

EX-Leverate CEO launches tech firm Titan-t

Were you wondering what the former CEO of Leverate, Yasha Polyakov, has been up to? Never fear, Finance Magnates learned on Monday that Polyakov had founded a new technology company called Titan Technology (Titan-t).

Speaking to Finance Magnates, Polyakov said that he had been thinking about starting a business for some time.

“I’d been asking myself, ‘why not go down an independent path?’ for a while and I think now is a good time to do it,” he said.

Want to know more? You can see the full interview here.

Are central banks looking to shut down Libra?

Facebook’s cryptocurrency project, Libra, has definitely made a big splash. Since the social network giant released the whitepaper for its stablecoin lawmakers and government officials commented that Facebook was too big, that Libra came too fast, and that cryptocurrency, in general, is still too risky to operate on such a large scale. 

As Finance Magnates analyzed this week, it looks like central banks might be looking to shut down the Libra project before it gets off the ground. How will they do that? By launching their own cryptocurrencies.

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