With the growing interest in bitcoin and other cryptocurrency assets, the US Securities and Exchange Commission issued a warning to investors who own Bitcoin futures: Beware of risks.
They reminded that even though the cryptocurrency is becoming more and more popular, it is "highly speculative" and volatile, not to mention traded in a lightly-regulated market. Therefore, investors should be cautious in their transactions, more carefully weighing the risks Bitcoin investments pose.
The warning came just weeks after Gary Gensler took over as chairman of the SEC. His comments threw off many investors, especially those who expected that ETFs would be approved under his leadership.
Earlier this week, the SEC said it will consider the creation of the first cryptocurrency ETF fund. They will examine whether the Bitcoin futures market is "appropriate" for creating investment ETF funds, and if these funds are able to liquidate their cryptocurrency derivatives if necessary.
On a different note, MoneyGram announced that it formed a partnership with Coinme. Under the agreement, more Bitcoin service will be available starting May, which will help US customers, especially new users, on BTC transactions. This move is expected to add fuel to the bull market that has been observed this year.
But at the time of writing, Bitcoin is at a risky level. A lot will depend on $ 55,400, as a break below it will quickly push the quote towards $ 52,000, and then $ 47,500. Growth will occur only if traders manage to push Bitcoin to $ 60,000. Such will result in a larger jump towards $ 62,300 and $ 64,700.
Another interesting news is the plans of the Hungarian government to reduce income tax in cryptocurrency next year. They believe it would encourage investors to declare income from trading digital tokens. The government said it would cut the rate from 30.5% to 15% starting in 2022. The driver seems to be officials' fears that investors are hiding profits from cryptocurrency trading.
Meanwhile, other countries have taken an aggressive approach. Canada, for instance, is on the path of tightening the turnover of cryptocurrencies and tokens.
