Bitcoin is still hovering between $30,000 and $31,000, and Ethereum has fallen slightly from its monthly high. Meanwhile, Denmark’s financial regulator has declared that unregulated crypto asset trading can create distrust in the financial system.
The Danish Financial Supervisory Authority (DFSA), charged with overseeing financial markets in Denmark, has reportedly ordered one of the country’s largest banks, Saxo Bank, to liquidate its crypto asset portfolio. Saxo Bank, an investment bank founded in 1992, incorporated crypto assets into its portfolio in 2017, allowing BTC, LTC, and ETH trading. The regulator has put an end to this new era of digital asset trading for Saxo Bank.
While the bank is still offering customers access to cryptocurrency exchange traded products, a statement by the DFSA claims that Saxo Bank, besides providing crypto services, allegedly holds a portfolio of crypto assets on its balance sheet as well, which are held as hedges to compensate for market risk. The DFSA argues that crypto trading is not listed in Annex 1 of the Financial Business Act. In addition, they claim Saxo Bank cannot carry out crypto trading as ancillary bank business for reasons of financial stability under current regulations. The regulator believes that unregulated trading in crypto assets could create distrust in the financial system.
The DFSA has therefore instructed Saxo that holding cryptocurrency on the bank’s own account violates the legal framework established for Danish financial institutions. However, the DFSA did not specify a deadline for Saxo to comply with the decision.
In a response, a spokesperson for Saxo said that the bank will take the financial regulator’s decision into consideration and study it carefully to decide how to properly address it. Whether one of the country’s largest banks is actually planning to get rid of crypto assets remains to be seen, but clearly the regulator will disagree with the bank’s decision.
On the technical side, Bitcoin is likely to continue rising in current conditions as long as it is trading above $29,780, which leaves room for a bull market with a chance of hitting $31,260 and $32,300. The most distant target would be $34,300, where large profit taking could lead to a pullback. Should BTC end up under renewed pressure after a breakout below $29,780, bullish traders will focus on defending $28,440. A breakdown below that level would deliver a blow to the asset, opening a direct path to $27,390.
Ethereum bulls remain focused on defending the short-term support at $1,890 and breaking through the resistance at $1,960. Only after that, ETH can be expected to reach $2,050 and $2,127, which will allow the bullish trend to continue and lead to a new push into the $2,250 area. If ETH is pressured once again, the $1,890 level will come into play, a breakout of which will lead to a test of $1,815. The $1,702 area is a key target below that.
The material has been provided by InstaForex Company – www.instaforex.com
Bitcoin is still hovering between $30,000 and $31,000, and Ethereum has fallen slightly from its monthly high. Meanwhile, Denmark’s financial regulator has declared that unregulated crypto asset trading can create distrust in the financial system.
The Danish Financial Supervisory Authority (DFSA), charged with overseeing financial markets in Denmark, has reportedly ordered one of the country’s largest banks, Saxo Bank, to liquidate its crypto asset portfolio. Saxo Bank, an investment bank founded in 1992, incorporated crypto assets into its portfolio in 2017, allowing BTC, LTC, and ETH trading. The regulator has put an end to this new era of digital asset trading for Saxo Bank.
While the bank is still offering customers access to cryptocurrency exchange traded products, a statement by the DFSA claims that Saxo Bank, besides providing crypto services, allegedly holds a portfolio of crypto assets on its balance sheet as well, which are held as hedges to compensate for market risk. The DFSA argues that crypto trading is not listed in Annex 1 of the Financial Business Act. In addition, they claim Saxo Bank cannot carry out crypto trading as ancillary bank business for reasons of financial stability under current regulations. The regulator believes that unregulated trading in crypto assets could create distrust in the financial system.
The DFSA has therefore instructed Saxo that holding cryptocurrency on the bank’s own account violates the legal framework established for Danish financial institutions. However, the DFSA did not specify a deadline for Saxo to comply with the decision.
In a response, a spokesperson for Saxo said that the bank will take the financial regulator’s decision into consideration and study it carefully to decide how to properly address it. Whether one of the country’s largest banks is actually planning to get rid of crypto assets remains to be seen, but clearly the regulator will disagree with the bank’s decision.
On the technical side, Bitcoin is likely to continue rising in current conditions as long as it is trading above $29,780, which leaves room for a bull market with a chance of hitting $31,260 and $32,300. The most distant target would be $34,300, where large profit taking could lead to a pullback. Should BTC end up under renewed pressure after a breakout below $29,780, bullish traders will focus on defending $28,440. A breakdown below that level would deliver a blow to the asset, opening a direct path to $27,390.
Ethereum bulls remain focused on defending the short-term support at $1,890 and breaking through the resistance at $1,960. Only after that, ETH can be expected to reach $2,050 and $2,127, which will allow the bullish trend to continue and lead to a new push into the $2,250 area. If ETH is pressured once again, the $1,890 level will come into play, a breakout of which will lead to a test of $1,815. The $1,702 area is a key target below that.
The material has been provided by InstaForex Company – www.instaforex.com
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