Experts from ICOBox’s Blockchain Research Center (IBRC) came up with their estimate based on the recommendations from international regulators to banks interested in trading cryptocurrency assets. Global Banking System’s Capacity for Crypto: Experts Estimate $1.2 Trillion
Over $1.2 trillion – this is the global banking system’s potential crypto assets growth capacity over the next few years.
The Swiss Financial Market Supervisory Authority (FINMA) has recently established the maximum ratio of crypto assets to the total capital of the country’s banks: it should not exceed 4%. Considering that Switzerland is clearly aiming to become one of the world’s crypto industry leaders looked up to by many governments in managing their banking systems, the FINMA’s approach may become a gold standard for other international financial institutions.
“This number, $1.2 trillion, allows us to assess the potential volume of crypto assets in the global banking system in the next 2-5 years. Today’s crypto market, with its current capitalization of $223 billion, will take years to absorb this amount of capital. And if all the banks in the world were suddenly allowed to keep up to 4% in crypto assets in their accounts, this could potentially constitute the “second coming” of bitcoin,” says Anar Babaev, ICOBox’s Co-Founder and Managing Partner.
EtherDelta Runs into Trouble with the SEC
On November 8, the SEC charged EtherDelta founder Zachary Coburn with operating an unlicensed securities exchange. The charges come after the U.S. Securities and Exchange Commission stated that EtherDelta conducted unauthorized transactions of securities over an 18 month period and engaged in over 3.6 million transactions of specific tokens, which the SEC claimed were classified as securities.
EtherDelta is a decentralized exchange (DEX), meaning it enables buying and selling orders directly on the blockchain with no central intermediary by using transactions to serve as the placement of said buy and sell orders.
Coburn was also fined over $380,000 for alleged “unlawful profits.” Speaking on the confusion in cryptocurrency regarding classification, Daria Generalova, Managing Partner at ICOBox, stated, “It is essential that cryptocurrency projects identify and adhere to the correct legislative and regulatory guidelines early in their business development phases, as they can easily be miscategorized. Diligent analysis is needed so project owners, exchange providers, and everyday cryptocurrency users can navigate the industry easily,” said Generalova. “The case of EtherDelta demonstrates the need for increased effort regarding preemptive legal review and classification as to not damage the integrity of the cryptocurrency sector.”
Bitcoin Cash Hardfork: Something to Watch
November 15 marks the date for the Bitcoin Cash network update, which will result in the currency splitting into two forks – Bitcoin ABC and Bitcoin SV. This is the biggest hardfork of the recent months. Although the imminent event is extremely exciting and advantageous for most industry players, it is also capable of revamping the market, which has been hanging in the “red” zone for a while.
Bitcoin Cash is the forth biggest cryptocurrency in terms of capitalization. This is a very large asset, and no market participant worth his salt can overlook the event. As soon as the announcement of the hardfork was out, the BCH’s volatility immediately went up, with its value jumping nearly 40%. For today’s market, in which all leading cryptocurrencies have been on a negative trend for awhile, this is an impressive number.
“This is a brilliant move. It is hugely beneficial to the BCH holders large and small, it plays into the hands of major crypto exchanges, and it has the potential of roping in everyday folk who might be looking to make a profit from one currency splitting into two. This translates into a dramatic increase in market players’ activity, a powerful rise in one of the leading cryptocurrencies’ liquidity, an impressive upswing in its trade, and high price volatility of the new digital assets over the 3-4 weeks after the fork. So overall, this is a very positive and much-needed shakeup for the market which has been stagnating and shifting gears for quite some time,” says Dima Zaitsev, Head of International PR at ICOBox.
Cryptocurrency Market Hits the Rocks
Over the past 24 hours, the crypto market took a deep nosedive, losing $26 billion – a staggering amount by any metric. This was one of the most dramatic daily selloffs in the entire 2018. Bitcoin, which remained exceptionally stable in August-November, suffered a drop of more than 11% over a 12-hour period. This unexpected fall in the BTC rate created a domino effect for other major cryptocurrencies. The market is yet to bounce back.
Daria Generalova, Managing Partner at ICOBox, commented “I believe there are several reasons for the latest market collapse. First, there was a massive cryptocurrency selloff, which was partly related to the news of today’s hardfork of Bitcoin Cash. Second, the crypto market is continuing to react to the situation in securities markets, which are also falling in response to the decline in oil futures. And third, since the start of the week bitcoin hashrate dropped by 20%. This may have to do with the suspension of operations in Chinese provinces Xinjiang and Guizhou for the duration of their tax audit. All of these factors combined might’ve resulted in the recent massacre in the crypto market.
But knowing that pretty much any fall is usually followed by a rise, I have no doubt that eventually we’ll return to a relatively even keel. This is crypto – things are meant to be dynamic. So buckle up and take a ride!”