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Mexico Stops Plans of Major Bank To Offer Bitcoin Services

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The CEO of Banco Azteca tweeted that he wanted to offer Bitcoin services in Mexico, but a tweet from the country’s regulators basically killed his dream.

It seems that the Mexican government has no interest in becoming the next Bitcoin Nation, nor does it want its private banks to walk down that road.

Mexico Says No To Crypto

The Secretary of Finance and Public Credit of the Government of Mexico, Arturo Herrera Gutierrez, shared on his Twitter account an official statement from the country’s Central Bank, the Ministry of Finance, and the National Banking and Securities Commission —Mexico’s equivalent to the SEC in the United States—, saying that virtual assets are not considered money according to current law and that banks are not allowed to operate with cryptocurrencies in any way whatsoever.

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“Financial Institutions in the country are not authorized to perform or offer to the public operations with virtual assets such as Bitcoin, Ether (sic), XRP and others in order to maintain a healthy distance between these and the financial system.”

The statement warns that those who attempt to offer any product related to cryptocurrencies will be subject to legal sanctions according to the Penal Code and other norms.

Regulators added that operations with stablecoins are also prohibited even though such assets do not have the volatility typical of traditional cryptocurrencies.

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The announcement puts an almost definite brake on the intentions of several crypto endeavors. However, it seems to respond to the reports that Banco Azteca —the tenth-largest bank in the country according to BNAmericas— was is working on a new service related to cryptocurrencies.

Ricardo Salinas, the CEO of Banco Azteca, is the third wealthiest man in Mexico and is a long-time bitcoiner. He has made several statements about cryptocurrency adoption and its use case as a store of value and claimed to have about 10% of his liquid investment portfolio in Bitcoin.

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The Tweet That Could Have Started It All

In reply to a tweet posted by MicroStrategy CEO Michael Saylor, Ricardo Salinas assured that Bitcoin was far better than gold and later revealed that Banco Azteca was working on offering solutions that would allow its clients to trade cryptocurrencies.

The tweet can be translated as follows: “Bitcoin is a good way to diversify your investment portfolio, and I think any investor should start studying about cryptocurrencies and their future. We are working to bring [crypto] to our clients and continue to promote freedom.”

The news got more than 2700 likes and spread like wildfire among cryptocurrency enthusiasts in the country. However, it seems that it was enough that the rumor reached the authorities’ ears for them to issue a warning that practically kills Salinas’ dreams.

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But the bitcoin-loving billionaire is not giving up so soon. In response to a BTC Times publication claiming that the Central Bank “shut down” his plans to accept Bitcoin, Salinas responded with a cheeky and challenging “We will see.

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Altcoin

Billionaire Mark Cuban Identifies Altcoin With ‘Most Upside’ As Bitcoin Blasts Above $60,000

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As Bitcoin shoots above $60,000, business magnate Mark Cuban says one altcoin stands above the rest in terms of investment potential.

In a new interview with CNBC Make It, the billionaire says that Ethereum (ETH) is the best crypto prospect on the market.

“As an investment, I think Ethereum has the most upside.”

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Cuban, who previously stated that smart contracts on Ethereum’s blockchain have revolutionized the cryptocurrency market, believes that the second-largest crypto by market cap is the digital asset which most resembles legal tender.

“I wish I had bought [Ethereum] sooner. I think it’s the closest thing we have to a true currency.”

Cuban went on to reiterate his position that Bitcoin (BTC) is superior to gold because not only is its supply scarce, but it’s easier to transfer, store, trade, and fractionalize. That sentiment is shared by fellow billionaire CEO Chamath Palihapitiya of Social Capital and Virgin Galactic.

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Cuban’s comments come on the heels of him saying that customers prefer making payments in Dogecoin (DOGE) rather than BTC at his venues because Bitcoin tends to be a highly appreciable asset.

Ethereum is exchanging hands at $3,839 at time of writing, an 11% increase from its seven-day low of $3,431, according to CoinGecko.

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ProShares Set for Bitcoin Futures ETF Launch on Monday After Apparent SEC Approval

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The US Securities and Exchange Commission has reportedly greenlit the country’s first Bitcoin futures exchange-traded fund (ETF).

ProShares, an ETF provider, filed a post-effective amendment prospectus on Friday that states the company plans to launch the BTC Futures ETF on Monday, a sign that the SEC has approved the product.

The fund doesn’t invest directly in Bitcoin, but it provides price exposure to Bitcoin futures contracts, a first in the US.

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Both Bloomberg and CNBC, citing people “familiar with the matter,” reported earlier in the week that the SEC planned to approve BTC futures ETFs from ProShares and the independent investment firm Invesco Ltd.

Invesco’s ETF is also set to provide exposure to a collection of exchange-traded products (ETPs) and private investment trusts that hold Bitcoin, rather than direct investments in BTC itself.

Last month, SEC Chairman Gary Gensler said he was open to ETFs for Bitcoin futures, noting that they are filed under mutual fund guidelines which provide “significant investor protections.”

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Bitcoin is trading at $61,549.38 at time of writing and is up 6.6% in the past day and more than 40% in the past two weeks, according to CoinGecko.

BTC hit its all-time high of $64,804.72 in mid-April.

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Bitcoin May See Real Peak If ETF Is Approved and I May Cash Out Half My ETH: CNBC’s Jim Cramer

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Jim Cramer shares a common view that Bitcoin has the opportunity to reach a short-term peak or even a real peak if Bitcoin ETFs are approved next week.

Host of CNBC’s Mad Money, Jim Cramer, has talked to Andrew Sorkin from CNBC’s Squawk Box show about the prospects of the Bitcoin price if or when four Bitcoin futures ETFs get the SEC’s approval next week.

Cramer also stated that he may cash out half of his Ethereum stash.

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SEC approval for ETF may push Bitcoin up, Cramer says

Answering Sorkin’s question, Cramer stated that a lot of people believe there is a high chance that the senior cryptocurrency, Bitcoin, may hit a short-term or even a real price peak if four BTC-based ETFs are approved by the SEC next week.

He corrected the host and said that the regulatory agency may approve not just one but four Bitcoin futures ETFs next week.

However, he stated that people are running ahead of a possible ETF approval.

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Bitcoin spikes to $59,500 as chance for ETF approval emerges

Earlier today, the flagship digital currency, Bitcoin, soared to a multi-month high of $59,500 on the Bitstamp exchange. It happened after Bloomberg released a report, saying that so far the Securities and Exchange Commission has not objected to approving multiple Bitcoin futures ETFs that were submitted to it earlier this year.

The Bloomberg article stated that the information had been confirmed by multiple sources close to the SEC and to the matter in question.

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The media giant’s ETF analyst, Eric Balchunas, believes that the likelihood of Bitcoin ETFs getting the green light has now risen to more than 90%. Still, he is not ready to “close the case” yet.

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