Weekly Recap (6/18/18 – 6/24/18)

Japan’s Business Improvement Orders

Japan’s Financial Services Agency (FSA) is grabbing the bull by the horns, and enforcing new security procedures on six of the country’s major cryptocurrency exchanges. The list of exchanges that FSA is asking to comply are: QUOINE, Bitbank, BTCBOX, BITPoint, Japan Tech Bureau and BitflyerThis increase in security measures follows the breach at the Japan based exchange service Coincheck in January of this year where a hacker accessed the exchange’s NEM wallet and absconded with $530 million worth of bitcoin. FSA’s main goal for the business improvement orders is to protect against money laundering, and prevent terrorist funding.

The aforementioned exchanges are expected to have a written plan turned into FSA by the 23rd of July, in addition to releasing a report on the tenth of every month to update the FSA on their progress in implementing the new procedures. Bitflyer is ahead of the game releasing a 10 point plan shortly after the news broke. Their released statement outlines a game plan for securing their finances. Accompanying the plan Bitflyer stated that they would not be accepting new clients for the moment, and would be reviewing those that are currently enrolled.

French Regulator AMF Warns Illegal Crypto Companies  

Autorite des Marches Financiers

The Autorite des Marches Financiers (AMF) has blacklisted several cryptocurrency websites for operating without authorization in the country. The public regulator has set warnings about atypical investments and unauthorized activities. AMF is an independent public body that focuses on regulating the French market as well as keeping consumers safe and informed. The regulator was form by french legislation in 2003, with the goal of  “safeguarding  investments in financial products, ensuring that investors receive material information and, maintaining orderly financial markets” (the Journal of Regulation, 2018).  

This is not the first time cryptocurrency has come under fire by the AMF. Back in February of this year, AMF insisted that cryptocurrency was subject to the EU’s market, adding several regulations and protocols in order to operate within France. Although the government is working on developing a framework for cryptocurrency compliance, it appears that companies within the country will have to jump through several hoops in order to keep up with the regulations from AMF.

St. Louis Federal Reserve Adds Cryptocurrency Price Indexes

(Federal Reserve Bank of St. Louis, 2018)

In better news for Cryptocurrency the Federal Reserve Bank in St. Louis has just added a Crypto Price Indexes to their Federal Reserve Economic Data (FRED). The data will be provided by the San Francisco based company CoinBase which serves over 20 million users.

The Federal Reserve seems to have conflicting feelings in regards to cryptocurrency. After releasing a statement back in April explaining how the up-and-coming cryptocurrency is similar to a ‘regular currency’, the president of Federal Reserve recently expressed his concerns over the unpredictable effects cryptocurrency will have on the market.

Cryptocurrency is an unmarked territory for today’s financial markets, and no one quite knows the correct procedures to regulating the currency as varying regulations are being made on a regular basis. As big players navigate the uncertain terrain, we expect to see more ups and downs in the market within the next few years.

 

Author: Jordan Darling

Co-author: Ken Truba, Jay Jie


References

[1] Wilmoth, J. (2018, January 26). ‘The Biggest Theft in History’: What We Know So Far About the $530 Million Coincheck Hack. Retrieved from https://www.ccn.com/biggest-theft-history-know-far-530-million-coincheck-hack/

[2] BitFlyer Inc. (2018, June 22). BitFlyer Inc. responds to improvement order from Japanese Financial Services Agency [PDF]. BitFlyer Inc.

[3] Das, S. (2018, June 22). Japan Slaps 6 Crypto Exchanges with Business Improvement Orders. Retrieved from https://www.ccn.com/japan-slaps-6-licensed-cryptocurrency-exchanges-with-business-improvement-orders/

[4] Helms, K. (2018, June 20). France Warns of Several Unauthorized Cryptocurrency Platforms. Retrieved from https://news.bitcoin.com/france-unauthorized-cryptocurrency-platforms/

[5] Kelso, C. (2018, February 22). France Cracks Down on Bitcoin Derivatives. Retrieved from https://news.bitcoin.com/france-cracks-down-on-bitcoin-derivatives/

[6] The Journal of Regulation. (2018, June 20). Autorité des Marchés Financiers – AMF (French Financial Markets Authority). Retrieved from http://thejournalofregulation.com/en/article/autorite-des-marches-financiers-french-financial-m/

[7] The St. Louis Fed. (n.d.). About The St. Louis Fed. Retrieved from https://www.stlouisfed.org/about-us

[8] Terzo, G. (2018, May 15). Cryptocurrencies Pushing US Currency to ‘Non-Uniform’ System: Fed’s Bullard. Retrieved from https://www.ccn.com/feds-bullard-bemoans-disparate-cryptocurrency-market/

[9] Kelso, C. (2018, June 22). US Federal Reserve Launches Cryptocurrency Index. Retrieved from https://news.bitcoin.com/us-federal-reserve-launches-cryptocurrency-index/

[10] Terzo, G. (2018, May 01). US Central Bank Explains how Bitcoin is Like ‘Regular Currency. Retrieved from https://www.ccn.com/bitcoin-and-fiat-currency-arent-that-far-apart-fed-strategist/

[11] Wilmoth, J. (2018, June 21). Federal Reserve Branch Adds Cryptocurrency Price Indexes [Yes, Really]. Retrieved from https://www.ccn.com/federal-reserve-branch-adds-cryptocurrency-price-indexes-yes-really/

[12] Autorite des Marches Financiers [Digital image]. (n.d.). Retrieved June 27, 2018, from https://www.leaprate.com/wp-content/uploads/2017/06/amf-730×438.jpg

[13] Federal Reserve Bank of St. Louis. (2018, June 19). FRED Adds Cryptocurrency Series. Retrieved from https://news.research.stlouisfed.org/2018/06/fred-adds-cryptocurrency-series/

 

 

 

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