ABN AMRO Bank to Abandon Crypto Custody

According to entity's senior press officer, bank considers crypto as risky asset
20 May 2019   323

Dutch bank ABN AMRO decided to abandon its plans to launch the custodial storage service of cryptocurrencies, The Next Web reported with reference to the statement of the organization’s representative.

In January, the network reported that 500 clients of ABN AMRO gained access to Wallie cryptocurrency wallets on the basis of banking infrastructure on an experimental basis. It was assumed that cryptocurrency assets in customers' wallets would be insured for up to € 6,000. However, the project hasn't reached the stage of real implementation.

We have approached all the people who have shown interest. We have concluded that cryptocurrencies because of their unregulated nature are at the moment too risky assets for our clients to invest in.

Jarco de Swart

Senior Press Officer, ABN AMRO

Last September, ABN AMRO, among other banks and companies, became a co-founder of a platform for trading commodities on the Ethereum protocol. 

CFTC to Approve LedgerX's Deliverable BTC Futures

At the same time, another platforms such as Bakkt, ErisX and Seed CX still awaiting regulatory approval
26 June 2019   65

Cryptocurrency derivatives provider LedgerX LLC has received a license from the Authorized Derivatives Market (DCM) from the US Commodity Futures Trading Commission (CFTC), which will allow it to launch the country's first bitcoin futures.

Deliveries for deliverable futures are made in the underlying asset, not in fiat funds. Thus, LedgerX outstripped the Bakkt, ErisX and Seed CX platforms, which are still awaiting regulatory approval.

At the same time, LedgerX intends to launch the Omni platform for trading options, swaps, and bitcoin futures for retail investors, since at the moment it does not see enough interest from institutional market participants.

However, it should be added that some experts have already expressed fears that the nature of the license received will not allow LedgerX to provide margin tools to customers, and Bakkt should have such functionality.

Recall about the intentions to obtain the appropriate permission and overtake competitors LedgerX said in April.