Bitcoin Stocks Explode Amid ETF News

As a result of trading on July 3, shares of Coinbase, MicroStrategy and a number of mining companies showed double-digit growth. Investors could react to the news around applications for the launch of spot bitcoin ETFs.

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On June 30, WSJ sources reported that the SEC returned the documents because they did not contain sufficient information regarding the so-called joint surveillance agreement or the details of this mechanism. The latter has become a key addition to the BlackRock offering.

The following day, Bloomberg reported that Invesco, VanEck, 21Shares, WisdomTree and Fidelity had submitted revised filings to the Commission in response to criticism of the regulator.

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The listed companies included in the proposals a mention that they will be supported by the Coinbase exchange in joint supervision. Against this background, the platform’s shares jumped in price by 12.8%, reaching the values of the end of March ($80.7).

Against the background of the growth of bitcoin quotes to the level of $31,000, shares of mining companies and MicroStrategy were in demand. The latter added 152,333 BTC (~$4.73 billion) as a reserve asset.

Securities supplier of analytical software rose 13.3% to $ 387.9. The last time the company’s capitalization was at such high levels was in April 2022.

Mining companies Riot Blockchain and Marathon Digital Holdings gained 14.6% and 12.9%.

Recall, Circle CEO Jeremy Allaire predicted that the recent wave of applications for the launch of cryptocurrency spot ETFs based on digital gold will lead to regulatory approval.

South African regulator will require licenses from local crypto exchanges

The South African Financial Conduct Authority (FSCA) will require local exchanges to obtain licenses before the end of the year. It is reported by Bloomberg.

The application process began a few weeks ago and will last until November 30th. The FSCA has already received about 20 applications from local cryptocurrency companies.

“The use of cryptocurrency products can cause serious harm to financial market participants. Therefore, it makes sense for us to introduce a regulatory framework,” said FSCA Commissioner Unati Kamlana.
If exchanges continue to operate without proper documentation after the deadline, they face fines or shutdown.

South Africa will be the first country on the continent to require digital asset exchanges to obtain licenses. According to Kamlan, time will show the effectiveness of the measures taken.

ForkLog previously reported that South Africa-based cryptocurrency exchange VALR has closed a $50 million funding round.

In August last year, the Machankura SMS service was launched in South Africa. It allows you to transfer bitcoin without access to the Internet.

The British regulator called the date for the entry into force of the cryptocurrency advertising regime

The UK Financial Conduct Authority (FCA) has issued a warning to crypto industry participants about the need to comply with the regime for promotions, which will come into force on October 8, 2023.

The regulator recalled that violators may face criminal liability, including fines and a prison term of up to two years.

For crypto companies, including those based abroad, the promotion will be legal if its organizer:

  • is an FCA-registered market participant;
  • received approval from a similar firm;
  • filed an application with the FCA Department of Money Laundering and Terrorist Financing;
  • complies with the exceptions provided for by the Financial Services and Markets Act.

Marketing campaigns in general must comply with the regime applicable to promoters of traditional finance services. It provides, among other things, “specific risk warnings” and the presence of safety features for inexperienced investors, such as a 24-hour “cooling off period”.

The FCA expects crypto companies to “clearly and clearly” inform consumers about their offers, as well as the termination of services.

Recall that in May, the UK authorities warned that, as part of the fight against fraud and cybercrime, they would ban cold calls used in the sale of financial products, including digital assets.