The year 2020 ends. Bitcoin has been growing for the past 6 months and is striving to update ATH, investors are jubilant, but traders are not quite. In recent years, regulators have taken a very tough tack on crypto derivatives exchanges in general and crypto derivatives in particular.
For example, in October, the UK regulator banned crypto derivatives for retail investors: https://www.fca.org.uk/news/press-releases/fca-bans-sale-crypto-derivatives-retail-consumers
The regulator considered that a retail investor could not have access to derivatives for the following reasons:
This was followed by bans for American clients in derivative exchanges, such as Binance, BitMEX, Deribit, blocking their access.
Also, BitMEX, which was born without KYC, introduced it under pressure from regulators, and cut the time in half compared to the initial announcement. Apparently, the program was to transfer the entire exchange to work with verified users until 2021.
Announcement here: https://blog.bitmex.com/accelerating-the-bitmex-user-verification-programme/
Deribit also accelerated verification and obliged all of its users to go through KYC by the end of the year, although earlier it was possible to trade without verification with minimum limits.
Announcement here: https://twitter.com/DeribitExchange/status/1319003303485820928
Further in November, the news came out that all the exchanges in Hong Kong would tighten the regulation of crypto exchanges: https://www.reuters.com/article/crypto-currencies-hongkong-regulator/hong-kong-will-require-all-cryptocurrency-trading-platforms-to-be-regulated-sfc-idUSL4N2HP0CC?rpc=401&jj
This was followed by the ban on derivatives on the Coinbase exchange: https://blog.coinbase.com/coinbase-pro-disables-margin-trading-42f5862f8a66
That is, in the second half of this year, someone actively took up the regulation of crypto derivatives, either completely banning, under pressure from regulators, or completely abolishing anonymity. The trend is not good. Every year there are fewer and fewer such large derivative exchanges where you can trade without KYC. Now I only remember ByBit, where you can trade anonymously. But this is not forever, and the regulator's paws can reach it soon.
And what next? Either some small exchanges without KYC, where there is no liquidity, or DEXs, but the situation with liquidity is not particularly good there either. In the future, we will most likely come across a complete and total regulation of this direction of crypto trading, and not only the derivatives market, but also the spot one. All exchanges will partner with governments and merge our data, not only personal data, but also data on income and assets.
I would not be surprised if, after the introduction of digital currencies by central banks, the exchanges will start trading only using digital fiat.
In general, what are your thoughts on the further development of crypto trading in general and crypto-derivative trading in particular? Are we waiting for total control and ongoing bans?
For example, in October, the UK regulator banned crypto derivatives for retail investors: https://www.fca.org.uk/news/press-releases/fca-bans-sale-crypto-derivatives-retail-consumers
The regulator considered that a retail investor could not have access to derivatives for the following reasons:
Quote
- inherent nature of the underlying assets, which means they have no reliable basis for valuation
- prevalence of market abuse and financial crime in the secondary market (eg cyber theft)
- extreme volatility in cryptoasset price movements
- inadequate understanding of cryptoassets by retail consumers
- lack of legitimate investment need for retail consumers to invest in these products
- prevalence of market abuse and financial crime in the secondary market (eg cyber theft)
- extreme volatility in cryptoasset price movements
- inadequate understanding of cryptoassets by retail consumers
- lack of legitimate investment need for retail consumers to invest in these products
This was followed by bans for American clients in derivative exchanges, such as Binance, BitMEX, Deribit, blocking their access.
Also, BitMEX, which was born without KYC, introduced it under pressure from regulators, and cut the time in half compared to the initial announcement. Apparently, the program was to transfer the entire exchange to work with verified users until 2021.
Announcement here: https://blog.bitmex.com/accelerating-the-bitmex-user-verification-programme/
Deribit also accelerated verification and obliged all of its users to go through KYC by the end of the year, although earlier it was possible to trade without verification with minimum limits.
Announcement here: https://twitter.com/DeribitExchange/status/1319003303485820928
Further in November, the news came out that all the exchanges in Hong Kong would tighten the regulation of crypto exchanges: https://www.reuters.com/article/crypto-currencies-hongkong-regulator/hong-kong-will-require-all-cryptocurrency-trading-platforms-to-be-regulated-sfc-idUSL4N2HP0CC?rpc=401&jj
This was followed by the ban on derivatives on the Coinbase exchange: https://blog.coinbase.com/coinbase-pro-disables-margin-trading-42f5862f8a66
That is, in the second half of this year, someone actively took up the regulation of crypto derivatives, either completely banning, under pressure from regulators, or completely abolishing anonymity. The trend is not good. Every year there are fewer and fewer such large derivative exchanges where you can trade without KYC. Now I only remember ByBit, where you can trade anonymously. But this is not forever, and the regulator's paws can reach it soon.
And what next? Either some small exchanges without KYC, where there is no liquidity, or DEXs, but the situation with liquidity is not particularly good there either. In the future, we will most likely come across a complete and total regulation of this direction of crypto trading, and not only the derivatives market, but also the spot one. All exchanges will partner with governments and merge our data, not only personal data, but also data on income and assets.
I would not be surprised if, after the introduction of digital currencies by central banks, the exchanges will start trading only using digital fiat.
In general, what are your thoughts on the further development of crypto trading in general and crypto-derivative trading in particular? Are we waiting for total control and ongoing bans?
You can trade on PrimeXBT with no KYC.
VPN's work and KYC means jack shit once you move your crypto around before you hit your offramp.
At the end of the day the alternative is jumping on the traditional finanace bandwagon and have to deal with xx% capital gains after you cashout your profits, if any.
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Check out my latest 4 minute +73% scalp
https://youtu.be/8509W4dJDbY
ITF Scalping
