It’s been a busy week in the forex and crypto space. But don’t worry if you missed anything, here is a summary of the top and most interesting pieces of news in our best of the week analysis.
Bithumb Reports $180 Million in Losses
Just one week after Bithumb lost around $19 million in crypto assets from hacking, the company reported some more bad news – a net loss of 205.5 billion won (around $180 million) in 2018.
Bithumb appears to be the latest firm to fall prey to the so-called “crypto winter” as a year earlier; the cryptocurrency exchange actually managed to report a net profit of 427.2 billion won (approximately $375 million). You can read more on this here.
AR Could Be Used to Visualise Trading Data
The former deputy Chief Executive Officer at FxPro, Conor O’Driscoll, revealed last month that he would be joining technology provider Devexperts. Making the unexpected, but not completely unheard of, switch from retail broker to technology firm.
To find out why he made the switch and more, Finance Magnates’ David Kimberley spoke to O’Driscoll, where he discussed some interesting predictions for the market.
MetaTrader 4 Still Has a Place in the FX Market
MetaQuotes’ MetaTrader 4 and 5 platforms continue to be the most recognized and well-known trading platforms in the retail trading industry.
Since its launch 15 years ago, market participants have been predicting the demise of MetaTrader 4, but, as Finance Magnates analyzed, brokers aren’t ready to let go anytime soon. You can see the full picture in our latest Quarterly Industry Report.
Brokers Are Breaking Overseas Laws, ASIC Warns
As part of its ongoing reshaping of the retail brokerage in the country, the Australian Securities and Investments Commission (ASIC) warned firms that some of its licensees that offer over-the-counter (OTC) derivatives to retail traders might be breaking the law in China and the European Union.
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As Finance Magnates broke, licensees have been officially put on notice by the Australian regulator, which will review any breaches of overseas laws. Following this, the watchdog will determine whether breaking overseas law is consistent with its aim to provide services ‘efficiently, honestly and fairly.’
Bad FX Data Holding Back Machine Learning Developments
Machine learning is a concept that is taking over the financial industry – but it isn’t without its obstacles, specifically within the FX industry. As Finance Magnates analyzed, while adoption in the financial industry is picking up speed, only 39 percent of firms were using market data to apply machine learning-based models.
This figure is less than the 72 percent in equities, 63 percent in fixed income and 40 percent in derivatives. So what is holding back FX firms? The main reason – bad forex data.
Is the Bitcoin Rally Here to Stay?
After a long crypto winter, the markets took an unexpected turn for the better, with Bitcoin, Litecoin and Bitcoin Cash all increasing in value. On April 2, the price of Bitcoin leaped up from roughly $4110 to $4800; from there, it has continued to climb to its current price of approximately $5260.
But is the Bitcoin rally here to stay, and if so, how high will it go? Finance Magnates’ own Rachel McIntosh analyzed the current situation. Her thoughts – it’s too soon for “to the moon,” but the digital asset is close to breaking some serious milestones. You can find out more about the situation here.
Bitstamp Receives Licence from New York Regulator
Cryptocurrency exchange Bitstamp announced this week that it has been granted a BitLicense by the New York Department of Financial Services (DFS). As Finance Magnates reported, Bitstamp is one of only nineteen companies to receive the BitLicense, including cryptocurrency exchange Coinbase and (more recently) crypto brokerage Tagomi.
According to Bitstamp CEO Nejc Kodrič, the BitLicense is an important step in further establishing Bitstamp’s presence in the US, although it has already had operations there for some time, and has an office in New York.
Ripple vs. SWIFT
Who is Going to Dominate Inter-Bank Money Transfers? Ripple or SWIFT? Finance Magnates’ Arnab Shome asked and answered that question this week. The answer – it may surprise you.
SWIFT, which has long dominated the industry is under threat, as Ripple is one of the few blockchain companies which is choosing to work with traditional banks, to improve their processes. So does this mean SWIFT’s days are numbered? You’ll have to read more to find out.