Crypto exchange BTCC closes its mining business
Hong Kong-based cryptocurrency exchange BTCC is shutting down its mining business, BTCC Pool Limited, after 4 years in operation, citing “business adjustments.” BTCC Pool said it will shut down all mining servers on Nov. 15th and will cease operations indefinitely by Nov. 30th.
The pool accounted for 1.1% of Bitcoin’s hashing power in June of this year, according to blockchain.info. At press time, its hashing power is not sufficient to register on the site. BTCC Pool said in todays announcement that it believes that crypto assets and the blockchain industry will continue to “develop and improve.”
Bitfury closes $80M private placement deal
Bitfury, a leading full-service blockchain tech company, has closed an $80 million USD private placement, working with global institutional and corporate investors such as Korelya Capital, Mike Novogratzs Galaxy Digital, and Bryan, Garnier & Co. The private placement was led by Korelya Capital, the European growth capital firm backed by Korean digital giant Naver. European tech investment bank Bryan, Garnier & Co. advised the company on the private placement.
CEO and co-founder of Bitfury Valery Vavilov said “This private placement reflects our achievements, and it recognizes our ability to address adjacent market segments in high-performance computing, including in emerging technologies like artificial intelligence (AI).” Mike Novogratz, CEO & Founder of Galaxy Digital said “We are impressed with Bitfurys unparalleled team, as well as the companys vision, technical expertise and global reach, all of which are essential to advancing the underlying bitcoin ecosystem.”
Swiss regulator instructs banks to keep an 800% risk buffer for crypto capital
The Swiss Financial Market Supervisory Authority has instructed banks dealing in cryptoassets to apply a risk weighting of eight times their market value when calculating loss-absorbing capital buffers. FINMA wants financial institutions to treat cryptocurrency as a high risk asset class, with a risk weighting touching the upper end of the scale indicating high volatility.
The regulator wrote “Cryptoassets should be assigned a flat risk weight of 800% to cover market and credit risks, regardless of whether the positions are held in the banking or trading book”. Under the new regulatory provisions, Bitcoin currently trades at around $6,400, & a bank must value it at eight times that amount, or over $50,000 when calculating the risk-weighted worth of its assets. As a result, banks must reserve a larger amount of capital to cover trading losses for cryptoassets compared to other asset classes.
Crypto News 06.11.2018