Cryptocurrency prices rebounded Thursday following political news in the US and India.
The US Securities and Exchange Commission (SEC) released details of a meeting of its Investor Advisory Committee taking place on 2 December. The two planned panels will discuss ways to protect investors and market integrity in the face of new technologies.
The day’s agenda shows that it, “will explore the intersection of digital assets and investor protection, with a specific lens on the regulatory framework covering digital assets, market structure issues, and defining risk in emerging technologies. Additional covered topics include blockchain technologies, crypto-based EFTs, and stablecoins.”
The SEC is working in tandem with the Commodity Futures Trading Commission (CFTC), the Federal Reserve and Treasury Department, and the Office of the Comptroller of the Currency on regulating the currency.
Indian government backing off ban
Also, India’s government appeared to back off a full ban on private digital coins.
Bitcoin was up 2.9%, rising above $59,000, while Ethereum increased 6.2%. Litecoin rose more than 8% at one point but receded two percentage points later in the day.
Meme token Shiba Inu, named after a dog breed, increased more than 8%.
Indian crypto promoters are predicting that a full ban will not be implemented, based on their discussions with government officials.
No ban, says crypto exchange boss
“There is no complete ban, but the direction is to regulate crypto in line with (Financial Action Task Force) guidelines,” Kumar Gaurev, CEO of Indian neo-bank Cashaa, said Wednesday on Twitter.
Gaurev based his claim on a just-concluded phone call with Indian Ministry of Finance officials. The Financial Action Task Force is a global money-laundering watchdog. Neobanks are companies that provide non-traditional, online banking services. Cashaa provides crypto-related offerings.
Tough regulations expected
Avinash Shekhar, co-CEO of Indian cryptocurrency exchange Zebpay, told CNBC that India’s government will likely opt for tough regulations instead of an outright ban.
“We met the finance committee of Parliament around two weeks back,” Shekhar told CNBC. “The message or the feelers which we are getting from the government is that they’re looking for some kind of regulation – strict regulation, but not a complete ban.”
Prime Minister Narendra Modi’s government pointed to its plans for a new cryptocurrency law Wednesday 23 November in a parliamentary bulletin.
Framework for digital currency
A proposed law is called a bill. The bulletin said the bill is designed “to create a facilitative framework for creation of the official digital currency to be issued by the Reserve Bank of India. The bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses.”
Shekhar told CNBC that the government has eased off its stance on a full ban after officials sought feedback from crypto exchange operators and other groups.
Indian Finance Minister Nirmala Sitharaman has called for his government to be cautious on efforts to create a national cryptocurrency.
Ready to get started?
The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.
This news is republished from another source. You can check the original article here