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Is Goldman Sachs Really Ditching Crypto Trading?

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A new announcement by Goldman Sachs indicates that the bank will give up on crypto trading desks, at least for now. Instead, they wish to focus on new projects, like crypto custody products.

Goldman Sachs drops trading desk

A lot of people were shocked or even enraged when they heard the new announcement by Goldman Sachs. It would seem that trading Bitcoin is a more difficult concept that many have believed. This might be why the bank officially decided to drop its plans for opening a trading desk for cryptos. People familiar with the issue claim that regulatory framework simply isn’t clear enough.

So, the bank did the only thing it could do — it moved the project further down the line and decided to dedicate its efforts to something else. This doesn’t mean that they will never get back to the trading desks. However, now is not the right time to deal with that, apparently.

While it is waiting for the better crypto regulations to arrive, Goldman will focus on something else. One of the new projects seems to include crypto custody products. This indicates that the bank is a cryptocurrency holder and that it will keep a close eye on the prices. The reason for the new project might be the goal of helping the large firms get comfortable with cryptos. Numerous analysts believe that reputable custody offerings are something that institutions need in order to become relaxed around cryptos.

The lack of proper regulatory solutions

For months, Goldman was asking for patience as it studied ways of entering the crypto trading industry. The crypto enthusiasts were patient, until a few weeks ago, when the bank’s executives started saying that there are too many factors out of their control. The bank’s spokesman ended up saying that they are exploring the best ways to serve clients. However, the statement also claims that there is still no conclusion regarding the scope of a digital asset offering.

The company has already started creating thee markets for those clients interested in BTC futures and contracts for difference. These will allow investors to guess Bitcoin’s price without the need to actually own the asset. Over time, Goldman made attempts to downplay the ambition to create a trading desk. They stated that the industry still requires exploring in order to serve the customers in the best way.

The bank first announced its interest in cryptocurrencies back in October 2017. Various reports from that time noted that the bank is studying the crypto industry and that it even has a special group devoted to this.

Then, in December of last year, the bank expressed the desire to put up a trading desk, likely before June 2018. It would be located in the securities division, which is where the company does most of its trading. After that, the next notable development came in April, when Justin Schmidt became the head of digital asset markets for the bank.

Finally, in May, new reports came in, stating that the bank would further explore trading desk, if only the regulations were proper. Apparently, they needed a way to deal with the risk of being a crypto holder. In the confusion, a new rumor emerged, claiming that the bank is about to open its trading desk.

However, in truth, the bank ran into regulatory issues, according to one of the sources. They were desperately trying to find some sign of regulatory change that would protect them and others from crypto trading risks. The biggest concerns were money laundering, the lack of governance, huge volatility, and the lack of legal frameworks that would protect consumers.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of J J via Flickr

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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Bitcoin crash
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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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coins
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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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crypto credit cards
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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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