Switzerland issues first license to crypto exchange

Switzerland's FINMA for the first time grants licensure to a cryptocurrency exchange
20 October 2017   1583

For the first time, the Financial Market Supervisory Authority (FINMA), a regulatory arm of the Swiss government, has licensed a crypto exchange to operate as a Directly Subordinated Financial Intermediary.

In the official press release, the exchang called "Payment21" describes the licensure as the result of “over one year of substantial effort.” 

We are committed to meeting the legal requirements of the Swiss financial marketplace.  Our handling of compliance issues enriches the digital currency ecosystem, and demonstrates that Swiss regulators embrace competitiveness in financial services, and truly encourage Fintech innovation in the digital era.
 

Bernhard Kaufmann 
Managing Director of the exchange

The man also highlights that "government licensing is crucial when establishing a payments business". Indeed, an official approval in a leading European financial center like Switzerland is a key differentiator in the competitive landscape.

Though this is a first for FINMA, the body has recently made other forays into the crypto space.
 

Bernhard Kaufmann 
Managing Director of the exchange

Payment21 is going tp expand into other cryptocurrency sectors.  For now, it also processes Bitcoin transactions on behalf of ecommerce vendors, enabling them to accept the cryptocurrency as payment for goods and services. 

Bear Market to Hit Mining Hard

BitMEX research division presented an analysis of the impact of market decline on the mining industry
11 December 2018   75

The cryptocurrency market has experienced a marked decline over the past weeks. The BitMEX research division presented an analysis of the impact of these events on the mining industry. Bitcoin hash rate has fallen by 31% since the beginning of November, which is equivalent to the capacity of 1.3 million Bitmain S9 devices. From this, BitMEX concludes that miners as a class are in a difficult situation, however, they may have different conditions, and those who pay more for electricity, are forced to turn off their equipment first, while others may still be quite viable.

The decrease in the price of Bitcoin by 45% since the beginning of November has already caused two recalculations of the complexity of mining to the lower side - by 7.4% and 15.1% on November 16 and December 3, respectively. The first recalculation turned out to be the largest since January 2013, the second - since October 2011.

Bitcoin mining revenue fell from $ 13 million per day in early November to $ 6 million per day in early December. The fall in the size of the miner's encouragement turned out to be even more rapid than the fall in the price of cryptocurrency. This is due to the delay in recalculating the complexity of mining. For the six-day period ending December 3, 21.8% fewer blocks were mined than expected, since the miners left the network before recalculating the difficulty. As a result, in addition to reducing the size of the miners' encouragement in dollar terms, due to lower asset prices, they received 21.8% less bitcoin awards.

One of the popular reasons for the recent decline in the cryptocurrency market is that miners sold bitcoins to cover their costs of hash warsin the Bitcoin Cash network. The monitoring platform Boltzmann recorded an unusually large sale of Bitcoin by the miner on November 12, that is, 3 days before the hard fork of Bitcoin Cash.

BitMEX assumes that the actions of miners over the past weeks could have played a significant role in reducing the market, however, recommends not overestimating their value and reminds that in a bearish trend, prices continue to fall regardless of asset movements and news.