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The first meeting of the Libra Association was held in Geneva. SEC requires TON tokens recognition as a security. The volume of cryptocurrency futures on CME increased by 61% within a year.
The initial membership of the Libra Association members was formed at the meeting held in Geneva. Now it includes 21 companies from around the world. A Board of Directors was elected here that will make management decisions. According to the Association, it currently has applications for entry from 1,500 companies. According to the initial project, only 100 companies could become shareholders, each of them is obliged to pay an entry fee of $ 10 million.
Following regulatory pressure, five companies refused to participate in the Libra Association. These are Mercado Pago, MasterCard, Visa, eBay and Stripe. Somewhat earlier, PayPal announced its unwillingness to participate in the project launch. In fact, this decision means that none of major US payment operator will support Facebook innovation.
The refusal of some companies to join the Libra Association does not mean that cooperation terminates. Under pressure from lawmakers, they decided not to give the project serious support at the initial stage, but allowed a change in their policies in future. This is the position held by Visa and PayPal. Moreover, Visa openly stated that their further actions will depend on the position of the American authorities. MasterCard representatives chose not to comment on their decision.
Against this background, the opinion of Stefan Ingves, the Head of the Central Bank of Sweden, sounded somewhat interesting. He said that Facebook initiative forced central banks to radically change their position. It is already the case when many stores in Sweden do not accept cash and the usual calculation methods may also become outdated. The emergence of the Libra Association is changing the very principle of international financial relations. Earlier, the Central Bank of Great Britain published requirements for the Facebook project. It called Libra a systemically important payment system, which requires close monitoring of its activities.
On October 11, the main US regulator brought charges against Telegram Group Inc. and its subsidiary, TON Issuer Inc., for the issue of unregistered tokens. Moreover, this took place a year and a half after ICO. SEC demands to stop the Telegram cryptocurrency sale due to insufficient informing of investors. Until this charge is withdrawn, cryptocurrency owners do not have the right to freely manage their tokens.
According to ICO organizers plans, Telegram should launch TON blockchain by October 31 and begin the free sale of Gram cryptocurrency. If it does not fulfill this requirement, it will be obliged to return all funds to investors. Of 2.9 billion tokens issued, about 1 billion belong to American investors.
Some experts are sure that the American authorities are showing a scathing rebuke in order to warn other corporations against launching cryptocurrency projects using the TON project example. Telegram itself has so far refrained from commenting. A hearing is scheduled for October 24, where SEC will try to prove that Gram is a security in fact, and the relevant rules should be applied to it. However, Pavel Durov’s team has another way out of the situation. Even if the court takes FED’s side, Telegram can return the funds invested by the American investors and start the project.
The question is how ready the TON blockchain is to be started. According to unofficial reports, a discussion is currently ongoing within the company regarding the future prospects of Gram tokens. Money return to the American investors will not be a critical blow to the project as in total they invested $ 424.5 million or about 25% of the total. But even as we speak, there is a talk that it is worth postponing the launch for six months or even a year.
Over the past year, bitcoin futures demand has grown by 61%. A message on this matter came from the Chicago Mercantile Exchange. The third quarter here showed an increase to 4,629 contracts, while the figure for the same period of the previous year was only 2,873 contracts. At that, the daily turnover reached the level of 5,534 contracts. This is 10% higher than the average of 2018. At the same time, in monetary terms, it is $ 289 million, which turned out to be 1% less than the previous indicator due to lower bitcoin prices.
According to the CME Group representatives, the reason for growth of demand was the influx of institutional investors. During the reporting period, 454 new accounts were opened for trading cryptocurrency futures.
It is noted that only about half of the purchases were made by American investors. About 26% of applications came from the Asia-Pacific region, and 21% came from Europe and the Middle East. These numbers allow CME to actively develop offers of cryptocurrency financial instruments. They plan to launch cryptocurrency options in early 2020. It is expected that this asset will be especially in demand among Asian miners and traders and will be used to hedge risks.
The Nasdaq Stock Exchange also decided to develop further into digital financial instruments and launched the CIX100 index. It is based on the price of 100 most popular cryptocurrencies, quotes are monitored by neural network. It receives data from nine cryptocurrency exchanges and simultaneously tracks over 200 key parameters.