British ban on Bitcoin derivatives by 2021

The current price for one Bitcoin (BTC) is currently $10,604.25. That’s -1.34% more than 24 hours ago. If you want to buy bitcoin for $100 now, you will get about 0.0094 BTC for this.

The total market cap is $196,285,918,801.50 with a circulation of 18,510,118 BTC.

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Hackers post $1 million worth of Bitcoin on forum as a decoy

A group of hackers from Russia posted 1 million dollars worth of Immediate Bitcoin on a public forum. Intended as a lure to recruit new people for their group.

According to Decrypt, this is hacker group REvil, also known as Sodinokibi. On 28 September they showed on a Russian forum that they have 99 Bitcoin at their disposal. That is more than 1 million dollars, a large sum of money.

They want to show: we have acquired money and are successful in committing digital theft.

Apparently, they have a shortage of personnel, as they recruit hackers to carry out new attacks. Especially ransomware, also known as hostage-taking software. This is software that nestles in PCs and asks a fee to make them work normally again.
Europol calls Bitcoin privacy wallets, CoinJoins and mixers ‚threats‘.

Europol wants to take action against Bitcoin or other crypto currencies that provide financial privacy protection. They see mixing Bitcoin via wallets such as Wasabi as a „serious threat“.

This can be read in the report Internet Organized Crime Threat Assessment (IACTA) 2020. A privacy coin like Monero is also undesirable. The authorities want to know who is doing the transaction.

Europol is standing in front of the European Police Office. It is an investigative organization that clusters various police forces from various European countries. They now issue a report containing a number of strikingly concrete ‚threats‘.

The investigation focuses on, among other things:

wallets that facilitate so-called CoinJoins, such as Wasabi and Samourai.
Centralized mixing services such as MyCryptoMixer and other commercial parties

These are methods to mix bits of Bitcoin (UTXO’s) with other users, in order to get more financial privacy.
Bitcoin derivatives banned from UK individuals by 2021

The Financial Conduct Authority (FCA) prohibits the sale of Bitcoin derivatives to individuals as of 6 January 2021. Exchange traded notes (ETNs) will also be banned.

The watchdog will announce this in a press release on Tuesday.

With a derivative, you can speculate on the future price of an underlying asset such as Bitcoin or other cryptocurrencies. Examples are futures, options and swaps (continuous futures).

Why a ban? According to the FCA, these investment products are too risky for the individual.

Other factors that play a role:

  • the value of the underlying assets is difficult to determine
  • risk of market manipulation and internet fraud
  • highly volatile character of the cryptocurrency
  • Too little knowledge about the assets among private individuals
  • no legitimacy to invest in these products as a private individual

The FCA wants to protect private investors against unexpected losses. Not only the sale, the ban also applies to the marketing and distribution of crypto derivatives.

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