I thought it would be that. Actual crypto exchanges wouldn't particularly care about ESMA mandates.
CryptoUK, a self-regulatory organization for companies involved with cryptocurrencies, whose members include Coinbase, CEX.IO, CoinFloor and others, has allegedly contacted several Members of Parliament (MPs) with a proposal to implement regulation in the sphere.
The request is for the financial Conduct Authority (FCA) to start overseeing what we have frequently called “entry level” companies – exchanges accepting fiat currencies payments for the purchase of cryprocurrencies. According to the proposal, this should be done under the existing peer-to-peer finance legislation and not the rules applies for financial market intermediaries.
The document begins by reiterating the key principle established by European Securities and Markets Authority (ESMA) – “while cryptocurrencies themselves aren’t seen as financial instruments, derivatives, such as CFDs, based on them are”. This immediately implies all companies in Cyprus which offer these assets (the majority of forex brokers) should be overseen by the local watchdog and follow the appropriate rules. They include a procedure for verifying the price quotes provided, as well as cutting the maximum leverage offered to 1:2.
I don't know what to tell you, to be honest. It was good to catch the rally that Bitcoin did months ago, but now? If you do trade cryptocurrencies, I advise you to be careful.linoklanos wrote: ↑Sat May 19, 2018 1:29 amHi all. What do you think of trading crypto in 2018? I am a bit scared of China’s regulations and high volatility of Bitcoin. Is it a good idea to start trading now or it’s better to invest in stocks? Also, what exchange can you recommend? I've read that cex is pretty simple for newcomers, so should I start there or research more?
What is more, the companies in question give unrealistic promises about large future profits in a short amount of time and have a highly non-transparent business model.