US broker warns about the "threat" of Bitcoin

Thomas Peterffy, the chairman of Interactive Brokers, bought whole Wall Street Journal ad page in order to "warn about Bitcoin"
16 November 2017   514

The chairman of the largest American electronic broker "Interactive Brokers" published on the whole page of the The Wall Street Journal a warning on the the dangers that bitcoin futures could present to traditional capital markets. This is reported by the Business Insider.

Chairman of Interactive Brokers Thomas Peterffy addressed his message to the CFTC Chairman Christopher Giancarlo expressing his concern over the plans of the Chicago Mercantile Exchange (CME Group) for bitcoin futures, which the are planed to launch in December this year.

This letter is to request [the CFTC] require any clearing organization that wishes to clear any cryptocurrency or derivative do so in a separate clearing system isolated from other products. Cryptocurrencies do not have a mature, regulated and tested underlying market. The products and their markets have existed for fewer than 10 years and bear little if any relationship to any economic circumstance or reality in the world.

Thomas Peterffy
Chairman, Interactive Brokers

Also, according to Peterffy, the "unbridled volatility" of bitcoin can be dangerous for other futures contracts on the market, and therefore the clearing of such derivatives should be carried out by the relevant organizations in isolation from other derivative financial instruments. Otherwise, the head of Interactive Brokers believes, bitcoin futures as a result can "destabilize the real economy." 

UK launches an inquiry into cryptocurrencies

The inquiry by UK Treasury Select Committee will examine the risks and possible benefits of crypto for investors
22 February 2018   7

European governments are quite cautious about cryptocurrencies and investments into them. And the regulatory base is as of now a lot more sparse, than one in America and Asia. But UK has announced that the Treasury Select Committee is launching an inquiry into cryptocurrencies and the distributed ledger technology that is the base of all crypto networks.

The inquiry will study the risks and opportunities presented by digital currencies for businesses and individual investors. Also, the government wants to see the possible benefits for itself from integrating cryptocurrencies and blockchain into daily operations.

Nicky Morgan, the Chair of the Treasury Select Committee, told the press that public interest in cryptocurrencies is rising, but the investments are unregulated and unprotected by the laws. High risks involved in this market are worrying. She added, that finding the right balance between regulating digital currencies for protection of individual investors and allowing the freedom of innovation is necessary in this case, so the Committee's goal isn't stomping down on overall usage of digital currencies.

This notion is just a next step in widespread action taken by EU governments to regulate cryptocurrencies. Lawmakers all around the Europe are discussing the possible governmental stance on crypto. For example, France and Germany have announced the joint effort which will present a set of regulation in the field during the next G20 summit.