Britains to Lose $34M Due to Crypto & Forex Fraud

Despite the fact it's big amount, it decreased from $ 48 million during pre-previous period
21 May 2019   302

The Financial Conduct Authority (FCA) of the United Kingdom reported that over the past year, the number of crypto and Forex scams has tripled (from 530 to 1834).

However, despite the growth in the number of fraudulent schemes, the total amount of investor losses for the year decreased from £ 38 million ($ 48 million) to £ 27 million ($ 34 million). The average size of losses per investor also fell from £ 59,600 ($ 75,827) to £ 14,600 ($ 18,575).

According to the financial regulator, in most of the fraudulent schemes (81%) cryptocurrencies are involved. In addition, FCA reported that in order to attract people into their projects, scammers often use social networks, promise quick profit to inexperienced investors, and also use fake celebrity statements.

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   68

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.