Mitsubishi to launch a regulatory framework for BTC trading

Mitsubishi UFJ Financial Group is going to set a hedge mechanism for Bitcoin trading, aimed at reducing risks and market volatility
27 December 2017   646

Mitsubishi UFJ Financial Group, one of the world's largest comprehensive financial groups, comprising a diverse range of leading companies in a wide field of financial businesses, is reportedly working to set up a hedge mechanism for investors is order to let them maintain Bitcoin holdings safely.

The decision was made in the aftermath of the high volatility of cryptocurrency market and the riskiness of Bitcoin trading. The financial units of Mitsubishi are looking for the reduction of costs and elimination of the possibility of downturn in BTC trading. 

Moreover, Mitsubishi is planning to keep the records of Bitcoin transactions in the ledger, which will be used to guarantee the holders of BTC the safety of their funds in case of the exchange failure. However, the crypto assets will not be refunded to traders if BTC price drops. The Mitsubishi Financial Group will work as the central bank works towards fixed-income exchange.

Thus, the hedge mechanism of Mitsubishi will presumably let the Japanese financial industry to capitalize on the volatility of the Bitcoin market and reduce the risks connected with BTC trading.

Previously, we have reported that Mitsubishi UFJ Financial Group and NTT DATA announced the launch of a Proof-of-Concept blockchain technology.

At the moment of press, these are main market parameters of Bitcoin:

  • Average price: $16 653,30
  • Marketcap: $279 199 652 152
  • 24h volume: $12 642 900 000

SEC Suspends Trading in 3 Companies

On Friday The U.S. Securities and Exchange Commission temporarily suspended the trading of three companies as they made the purchase of cryptocurrency and blockchain-related assets
17 February 2018   133

According to the announcement, the trade of  Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. will be suspended between 9:30 a.m. EST Friday and March 2. The notice was dated Feb. 15.

SEC stated that its trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things.

The release also indicates additional reasons for the suspensions. The agency’s orders also say there are questions regarding the nature of the company's business operations. In case of CHIT, the Commission suspended trading in the securities because of its delinquency in filing annual and quarterly reports.

In August 2017, the SEC  issued a warning for investors about the companies that may publicly announce ICO or coin-related events to affect the price of the company’s common stock.

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. 

U.S. Securities and Exchange Commission