Značka: regulation

Former Monero maintainer Riccardo 'Fluffypony' Spagni to surrender for South Africa extradition

Riccardo Spagni, the former maintainer of the privacy coin Monero also known as Fluffypony, faces extradition to South Africa months after his arrest by U.S. authorities.In a Thursday court filing for the Middle District of Tennessee, Magistrate Judge Alistair Newbern ordered Spagni to surrender to U.S. Marshals on July 5 for extradition to South Africa. He will reportedly face 378 charges related to allegations of fraud and forgery between 2009 and 2011 at a company called Cape Cookies. U.S. authorities arrested Spagni in Nashville in July 2021 at the request of the South African government, holding him in custody until September. The court filings hint at allowing Spagni to be in the United States for the Independence Day holiday weekend before being taken to Africa early on Tuesday. None of the charges in South Africa are related to Spagni’s time working on Monero (XMR), for which he was the lead maintainer until December 2019. Related: Privacy coins are surging — Will regulatory pressure stall their stellar run?Spagni, who posts on Twitter under the handle Fluffypony, has been involved in the crypto space since 2011. Since his arrest in the United States, he tweeted regarding his desire to return to South Africa to “address this matter” related to the fraud charges:I am very pleased that the U.S. court has released me. I am actively working with my attorneys on a way to return to South Africa as soon as possible so I can address this matter and get it behind me once and for all. That’s what I’ve always wanted to do.— fluffy/pony (@fluffypony) September 21, 2021According to data from Cointelegraph Markets, the price of XMR has fallen roughly 8% in the last 24 hours, reaching $110 at the time of publication. As with many cryptocurrencies in the current bear market, the price of the privacy coin has fallen significantly in the last 30 days — roughly 46% from more than $206 on May 31. 

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US lawmakers say crypto industry has a 'tech bro' problem hurting innovation

According to some United States lawmakers in the House Financial Services Committee, the lack of diversity in the financial technology space could be hurting many companies’ bottom lines.In a Thursday virtual hearing on “Combatting Tech Bro Culture,” U.S. lawmakers and witnesses discussed how women and people of color were underrepresented in leadership positions in the financial technology industry, including crypto firms. Massachusetts Representative Stephen Lynch cited data that only 2% of venture capital funding went to firms in which the founders were women, while only 1% went to those with black founders, and 1.8% for Latinx. According to Lynch and some on the committee, this trend suggested an “old boys club” culture in companies including those involved with cryptocurrencies, in which many of those in leadership positions were white men. They claimed that many firms seemingly less deserving of funding were able to bring in money more easily due in part to relationships between leadership.“While lack of diversity is a trend in almost every industry that venture capitalists invest in, it is particularly troubling in the fintech space,” said Lynch. “The largest fintechs, including digital banks, payment processors, and cryptocurrency providers, actually market their products to women and people of color. Yet when we look at the founders and leadership teams, they clearly do not reflect the communities that they claim to serve.”Representative Stephen Lynch addressing the House Financial Services Committee“Multiple studies found that companies with diverse leadership, specifically with more than one gender and/or one race, are ethically representative, are more innovative and make more money,” said California Representative Maxine Waters. “I assume that venture capital firms are heavily profit driven, but it seems they’re ignoring clear data on how to boost those profits.”Related: Crypto innovators of color restricted by the rules aimed to protect themLynch cited the recent crisis around crypto lending platform Celsius — whose leadership team consists mostly of men — as an example of VC money not necessarily going to where it’s best utilized:“Venture capital firms continue to gamble on poor investments such as cryptocurrency companies like Celsius, which recently froze all customer deposits, while on the other hand women and founders of color with well thought out, substantive business plans remain in the waiting room.”

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CFTC brings $1.7B fraud case involving Bitcoin against South African national

The United States Commodity Futures Trading Commission, or CFTC, has taken enforcement action against a South African national in what the regulatory body called its “largest fraudulent scheme involving Bitcoin.”In a Thursday announcement, the CFTC said it had filed a civil enforcement action in federal court for fraud and registration violations against Cornelius Johannes Steynberg. The South African national allegedly created and operated a global foreign currency commodity pool totaling more than $1.7 billion, only allowing the participants to pay using Bitcoin (BTC). The CFTC alleged that Steynberg used the South Africa-based firm Mirror Trading International Proprietary Limited to solicit BTC from the public using social media and various websites. From May 2018 to March 2021, the regulatory body claimed that he accepted at least 29,421 BTC — valued at more than $1.7 billion at the time, but roughly $564 million at the time of publication — including from individuals in the United States.“The defendants misappropriated, either directly or indirectly, all of the Bitcoin they accepted from the pool participants,” said the CFTC. “The CFTC seeks full restitution to defrauded investors, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against future violations of the Commodity Exchange Act and CFTC Regulations.”ENFORCEMENT NEWS: CFTC Charges South African Pool Operator and CEO with $1.7 Billion Fraud Involving Bitcoin. https://t.co/cvNlksPznw— CFTC (@CFTC) June 30, 2022Related: The CFTC’s action against Gemini is bad news for Bitcoin ETFsThe case against Steynberg is the latest in a series of enforcement actions the CFTC has taken against individuals allegedly using cryptocurrencies for illicit purposes or digital asset firms for violations of the Commodity Exchange Act. In June, the CFTC filed a lawsuit against Gemini, claiming the crypto exchange made false or misleading statements to the regulatory body in 2017. A federal court also ordered the founders of crypto derivatives exchange BitMEX to pay $30 million in penalties as part of the conclusion of a suit filed by the CFTC in October 2020.

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Reserve Bank of India ranks crypto near the bottom of systemic risks despite harsh criticism

In its latest financial stability report published on Thursday, the Reserve Bank of India, or RBI, reiterated its skepticism of digital assets, writing: “We must be mindful of the emerging risks on the horizon. Cryptocurrencies are a clear danger. Anything that derives value based on make-believe, without any underlying, is just speculation under a sophisticated name.”The report alleged that decentralized cryptocurrencies “are designed to bypass the financial system and all its controls,” including Anti-Money Laundering, Combatting Financial Terrorism, and Know Your Customer mechanisms. In a tone similar to the previous report, the RBI says that private currencies often result in instability over time and undermine sovereign control over the money supply. However, despite all the harsh words, cryptocurrencies, perhaps ironically, rank at the nadir of the RBI’s risk agenda. Based on a systemic risk survey, factors such as global growth headwinds, rising commodity prices and geopolitical tensions were regarded as high-impact events that could threaten the integrity of the global financial system.Related: RBI seemingly wants to ban cryptocurrencies, but not for the reasons you might thinkOn the other hand, digital asset risks were at the bottom of the risk-weighted scale, being tied to sovereign rating downgrades and just slightly above political uncertainty and the threat of terrorism. In part, the RBI attributes such risk limitations to the relatively tiny foothold digital assets have on the global scale as well as their lack of integration within traditional finance.Cryptocurrencies currently account for anywhere between 0.4% to 1% of the world’s estimated $469 trillion in total financial assets. RBI has traditionally been one of the most skeptical central banks on crypto adoption, claiming that central bank digital currencies could “kill” private crypto. 

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Reporting ‘limited progress,’ FATF urges countries to introduce legislation for travel rule

The Financial Action Task Force (FATF) reported that 11 out of 98 responding jurisdictions have started enforcing its standards on Combating the Financing of Terrorism, or CFT, and Anti-Money Laundering, or AML.In an update released Thursday on the “Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers,” the FATF reported the “vast majority” of jurisdictions assessed by the organization’s Global Network since June 2021 “still require major or moderate improvement” in AML/CFT compliance in accordance with the travel rule. According to the FATF, countries moving towards implementing these requirements made “limited progress” over the last year, with 29 out of 98 responding jurisdictions reporting passing legislation related to the travel rule, and 11 starting enforcement.“While around a quarter of responding jurisdictions are now in the process of passing the relevant legislation, around one-third (36 out of 98) have not yet started introducing the Travel Rule,” said the FATF. “This gap leaves VAs and VASPs vulnerable to misuse, and demonstrates the urgent need for jurisdictions to accelerate implementation and enforcement.”A new FATF report on virtual assets finds only 29 out of 98 jurisdictions have passed the FATF ‘travel rule’ to ensure crypto firms verify who their customers are. FATF members should lead by example & introduce relevant legislation ASAP. See the report➡️https://t.co/PWbaOMtNfJ pic.twitter.com/hHpALXiIJv— FATF (@FATFNews) June 30, 2022The organization added that companies in the private sector had made progress in introducing solutions to support compliance with the travel rule and “taking early steps to ensure interoperability with other solutions.” However, the FATF hinted at the necessity of implementing these solutions quickly, given the “significant threat of ransomware actors misusing VAs to facilitate payments” and funneling illicit funds through Virtual Asset Service Providers, also known as VASPs.“Countries that have not introduced Travel Rule legislation should do so as soon as possible, and FATF jurisdictions should lead by example by promoting implementation, and by sharing experiences and good practices […] Rapid implementation by jurisdictions will incentivize progress further.”Related: President of Panama shoots down crypto bill citing FATF guidelinesAmong other developments since 2021 included a rise in the growth of decentralized finance, or DeFi, and nonfungible projects, which the FATF labeled as a “challenging area for implementation” of the travel rule. The organization cited a Chainalysis report released in February that “suggests that threats from criminal misuse continue” with illicit transactions in DeFi, and reached similar conclusions for NFTs potentially being used for “money laundering and wash trading.”Under FATF guidelines, VASPs operating within certain jurisdictions need to be licensed or registered. The organization reported in an April update that roughly half of assessed jurisdictions in 120 countries had “adequate laws and regulatory structures in place” to assess risks and verify beneficial owners of companies, urging them to prioritize identifying and reporting information on cryptocurrency transactions.

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EU officials reach agreement on AML authority for supervising crypto firms

The European Council has reached an agreement to form an anti-money laundering body that will have the authority to supervise certain crypto asset service providers, or CASPs.In a Wednesday announcement, the council said it had agreed on a partial position of a proposal to launch a dedicated Anti-Money Laundering Authority, or AMLA. According to the regulatory body, the AML body will have the authority to supervise “high-risk and cross-border financial entities” including crypto firms — “if they are considered risky.”European Parliament member Ondřej Kovařík said EU officials had also reached a “provisional political agreement” on the government body’s Transfer of Funds Regulation. Not all the details of the revision are clear at the time of publication, but Cointelegraph reported that a March draft of the regulation could require crypto service providers to collect personal data related to transfers of any size made to and from unhosted wallets, as well as potentially verify their accuracy.“We are putting an end to the wild west of unregulated crypto, closing major loopholes in the European anti-money laundering rules,” said European Parliament member Ernest Urtasun. “The rules won’t apply to P2P transfers where there is no obliged entity involved […] CASPs will be required to collect information and apply enhanced due diligence measures with respect to all transfers involving unhosted wallets, on a risk basis.”EU institutions have found a provisional political agreement on the Transfer of Funds Regulation. I believe it strikes the right balance in mitigating risks for fighting money laundering in the crypto sector without preventing innovation and overburdening businesses. pic.twitter.com/k0P0I3Ah6K— Ondřej Kovařík (@OKovarikMEP) June 29, 2022Related: European crypto regulatory framework goes to three-way consideration without PoW banFirst proposed in July 2021, the AMLA should be operational in 2024 and “start the work of direct supervision slightly later,” according to the European Commission. The financial watchdog will be one of the first regulatory institutions with the authority to oversee money laundering across large regions of Europe, coordinating with respective countries’ financial intelligence units and working with local regulators.

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US govt delays enforcement of crypto broker reporting requirements: Report

The provision in the U.S. infrastructure bill signed into law in November, which will require financial institutions and crypto brokers to report additional information, could reportedly be delayed.According to a Wednesday report from Bloomberg, the United States Department of the Treasury and Internal Revenue Service may not be willing to enforce crypto brokers collecting information on certain transactions starting in January 2023, citing people familiar with the matter. The potential delay could reportedly affect billions of dollars related to capital gains taxes — the Biden administration’s budget for the government for the 2023 fiscal year previously estimated modifying the crypto tax rules could reduce the deficit by roughly $11 billion.Under the current infrastructure bill, Section 6050I mandates that crypto brokers handling digital asset transactions worth more than $10,000 report them to the Internal Revenue Service with personal information likely including the sender’s name, date of birth and social security number. The requirements, aimed at reducing the size of the tax gap, were scheduled to take effect in January 2023, with companies sending reports to the IRS starting in 2024. “Delaying is smart,” said Jake Chervinsky, head of policy at the Blockchain Association, in response to the news. “We’re getting closer & closer to the effective date of the infrastructure bill’s tax provisions & we’re still waiting for guidance or rulemaking on implementation.”If true, this is good news.We’re getting closer & closer to the effective date of the infrastructure bill’s tax provisions & we’re still waiting for guidance or rulemaking on implementation. We’ve also seen legislative proposals that could make big changes. Delaying is smart. https://t.co/m7bMDiVFFU— Jake Chervinsky (@jchervinsky) June 29, 2022Related: Crypto miners exempt from IRS reporting rules, US Treasury affirmsSince the passage of the $1 trillion infrastructure bill, many industry experts and lawmakers have suggested the crypto broker reporting requirements are overly broad, placing an undue burden on individuals who may not have the necessary information on transactions. In June, crypto and blockchain advocacy group Coin Center filed a lawsuit against the Treasury Department, alleging the tax reporting requirement could “impose a mass surveillance regime on ordinary Americans.”

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That's 'Sir' Crypto Dad: French order knights former CFTC chair Chris Giancarlo

The French government has given former United States Commodity Futures Trading Commission chair Chris Giancarlo, also known as “Crypto Dad,” the equivalent of a knighthood.In a Tuesday tweet from Giancarlo, the former CFTC head said France’s National Order of Merit awarded him a Chevalier — the equivalent of a knighthood — in a ceremony at the French ambassador’s residence in Washington D.C. Those attending included current and former CFTC commissioners Rostin Behnam, Brian Quintenz, Christy Goldsmith Romero, Kristin Johnson, Caroline Pham, as well as Hester Peirce of the Securities and Exchange Commission. Merci for honor of l’Ordre National du Mérite at the Résidence de France before mes amis @CFTCbehnam @BrianQuintenz @HesterPeirce Dawn Stump Dan Berkovitz @CFTCcgr @CFTCjohnson @CFTCpham @CFTC ⁦@the_afx⁩ @WillkieFarr⁩ ⁦@WhartonCypher⁩ pic.twitter.com/rI9MYzaI8a— Chris Giancarlo (@giancarloMKTS) June 28, 2022The order announced Giancarlo’s appointment in May. Phillippe Etienne, France’s ambassador to the United States, said the award was due, in part, to the former CFTC chair’s “understanding of financial markets and the potentials of crypto finance.” “[This award] recognizes the creation of well-regulated crypto trading markets and strengthening of overseas regulatory ties with the help of many fine public servants during my time of government service,” said Giancarlo at the time.Giancarlo worked as the chair of the CFTC for five years before leaving in April 2019. During his time with the government agency, he oversaw the launch of regulated Bitcoin (BTC) futures and was alleged to have had a “do no harm” approach to blockchain regulation, earning him the nickname Crypto Dad.Since leaving the CFTC, Giancarlo has gone on to join blockchain investment firm CoinFund as a strategic adviser, the board of directors for blockchain startup Digital Asset, and briefly, the board of crypto lending firm BlockFi. He currently works as a senior counsel at the law firm Willkie Farr & Gallagher.Related: Emmanuel Macron on crypto: ‘I don’t believe in a self-regulated financial sector’Other individuals who have previously been knighted by their respective governments have joined the crypto space in various ways. Sir Richard Starkey, also known as Beatles member Ringo Starr, launched his own line of nonfungible tokens on June 13. Star Trek star William Shatner, who tokenized a series of trading cards in 2020, was inducted into the Order of Canada in 2019 — though many have said the honor is not equivalent to a knighthood.

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Are custodied crypto funds at risk? Industry veterans explain

With rumors of insolvency flying high among crypto firms such as Celsius and Three Arrows Capital, investors couldn’t help but ask a simple question: What happened to all the funds that were supposedly under “safe custody?” As it turns out, a small fraction of crypto firms began leveraged trading with customers’ deposits to deliver promised high APY returns on supposedly fixed-income instruments. Things worked out well when the market was thought to have endless potential.However, as token prices plunged, such firms simultaneously suffered heavy losses on their positions and an increase in withdrawal requests as investors rushed to protect their capital. The combination of selling pressures led to lower coin prices and the likely obliteration of investors’ initial principal as firms allegedly became insolvent.Not all asset custodians took enormous risks with clients’ deposits during the bull market in an attempt to attract more capital. At the European Blockchain Convention in Barcelona, Cointelegraph news editor Aaron Wood spoke to Bit.com’s business development lead, Leslie Hsu. Bit.com is a centralized crypto exchange launched in March 2020 in Seychelles. Here’s what Hsu had to say:”So at Bit.com, we actually use a third-party custody service. Once all assets are in custody, the exchange won’t use your money or clients’ assets for tasks like margin trading.”However, Hsu explained that due to a concept known as regulatory arbitrage, it would be difficult for administrative bodies to crack down on supposed bad actor custodians that take unreasonable risks with clients’ capital. “Different countries all have different regulations. For example, like in the U.S., they only allow U.S. domiciled entities to trade over there. Right now, there’s no single piece of international legislation covering all potential crypto-related issues.” In some jurisdictions, gambling laws even take precedence over administrative rules when it comes to regulating digital assets.At another panel, Cointelegraph’s managing editor Alex Cohen spoke to Michael Lau, global head of sales at regulated crypto exchange Bullish. For Lau, the issue of trust not only comes in the ability to create services but also in how one executes them, explaining:”From our perspective, we decided we would be regulated one day. So then there’s an element of accountability, right? Someone is actually auditing our inner workings and making sure that we can actually fulfill the promises we are making.”Lau shared that when he first joined the industry in February 2020 after a career in traditional finance, he was surprised at the high level of retail involvement for digital assets. “I remember the New York Stock Exchange is only about 20% retail, and the Chinese Stock Exchanges were around 40% retail, but I really looked at crypto, and it was all retail with very few institutions in it.”But Lau said that he is rather satisfied with the continued demand for regulation in the industry. “There’s a certain level of professionalism and accountability demanded of fund managers. As an investor, I want to know that I’m going to be protected. I want to know that the fund manager follows the rules. I want to make sure that there’s proper segregation of assets. So we’ve noticed a lot more demand for regulation as of late.”

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Central African Republic president launches crypto initiative following Bitcoin adoption

Faustin-Archange Touadéra, president of the Central African Republic, has announced the government will be backing an initiative centered around developing the country’s blockchain infrastructure.In a Monday announcement on Twitter, Touadéra said the CAR government would be launching Sango, a crypto initiative proposed following the country’s adoption of Bitcoin (BTC) as legal tender in April. According to Sango’s website, the government intends to launch the program during a July 3 event in which the president, members of his cabinet and industry experts will discuss the physical and digital infrastructure needed for the CAR to enter the crypto space, as well as the legal framework for the country. The Sango project’s plans include building a “legal crypto hub” aimed at attracting businesses and global crypto-enthusiasts, expanding the adoption of Bitcoin in the country, and creating a virtual “crypto island” — a special economic zone in the metaverse that will seemingly have an equivalent space in the physical world. According to Sando, the CAR plans to have a dedicated legal framework for crypto in place by the end of 2022.“The ambitious strategy to quickly build a successful economy can only rely on new technologies that have taken the world by storm and taken money to another level, with Bitcoin as a watchword,” said Touadéra. With #Bitcoin as #legaltender & inspiration, our country opens a new chapter in its inspiring journey towards a brighter future via #blockchain #tech. Everyone is welcome to witness the Sango Genesis Event that will be broadcast on the 3rd of July, on https://t.co/LIQiKGhcBS. pic.twitter.com/7u6knv5f6w— Faustin-Archange Touadéra (@FA_Touadera) June 27, 2022Related: Crypto users in Africa grew by 2,500% in 2021: ReportTouadéra’s and the CAR’s plans to adopt crypto seem to be emulating those of El Salvador, whose Bitcoin Law declaring the digital currency legal tender went into effect in September 2021. The Latin American nation also announced plans to create its town Bitcoin City funded by $1 billion worth of BTC bonds, placed on hold as of June amid the bear market.

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Bitcoin’s short-term price prospects slightly improved, but most traders are far from optimistic

A mild sense of hope emerged among Bitcoin (BTC) investors after the June 18 drop to $17,600 becomes more distant and an early ascending pattern points toward $21,000 in the short-term.Bitcoin 12-hour USD price at FTX. Source: TradingViewRecent negative remarks from lawmakers continued to curb investor optimism. In an interview with Cointelegraph, Swiss National Bank (SNB) deputy head Thomas Muser said that the decentralized finance (DeFi) ecosystem would cease to exist if current financial regulations are implemented in the crypto industry.An article published in The People’s Daily on June 26 mentioned the Terra (LUNA), now renamed Terra Classic (LUNC), network’s collapse and local blockchain expert Yifan He referring to crypto as a Ponzi scheme. When asked by Cointelegraph to clarify the statement on June 27, Yifan He stated that “all unregulated cryptocurrencies including Bitcoin are Ponzi schemes based on my understanding.”On June 24, Sopnendu Mohanty the chief fintech officer of the Monetary Authority of Singapore (MAS) pledged to be “brutal and unrelentingly hard” on any “bad behavior” from the cryptocurrency industry.Ultimately, Bitcoin investors face mixed sentiment as some think the bottom is in and $20,000 is support. Meanwhile, others fear the impact that a global recession could have on risk assets. For this reason, traders should analyze derivatives markets data to understand if traders are pricing higher odds of a downturn.Bitcoin futures show a balanced force between buyers and sellersRetail traders usually avoid monthly futures because their price differs from regular spot markets at Coinbase, Bitstamp and Kraken. Still, those are professional traders’ preferred instruments as they avoid the funding rate fluctuation of the perpetual contracts.These fixed-month contracts usually trade at a slight premium to spot markets because investors demand more money to withhold the settlement. Consequently, futures should trade at a 5% to 10% annualized premium in healthy markets. One should note that this feature is not exclusive to crypto markets. Bitcoin 3-month futures’ annualized premium. Source: LaevitasWhenever this indicator fades or turns negative, this is an alarming, bearish red flag signaling a situation known as backwardation. The fact that the average premium barely touched the negative area while Bitcoin traded down to $17,600 is remarkable.Despite currently holding an extremely low futures premium (basis rate), the market has kept a balanced demand between leverage buyers and sellers.To exclude externalities specific to the futures instrument, traders must also analyze the Bitcoin options markets. For instance, the 25% delta skew shows when Bitcoin whales and arbitrage desks are overcharging for downside or upside protection.During bearish markets, options investors give higher odds for a price crash, causing the skew indicator to rise above 12%. On the other hand, a market’s generalized FOMO induces a negative 12% skew.Bitcoin 30-day options 25% delta skew: Source: LaevitasAfter peaking at 36% on June 18, the highest-ever record, the indicator receded to the current 15%. Options markets showe an extreme risk-aversion until June 25, when the 25% delta skew finally broke below 18%.The current 25% skew indicator continues to display higher risks of a downside from professional traders but it no longer sits at levels that reflecti extreme risk aversion.Related: Celsius Network hires advisers ahead of potential bankruptcy — ReportThe bottom could be in according to on-chain dataSome metrics suggest that Bitcoin may have bottomed on June 18 after miners sold significant quantities of BTC. According to Cointelegraph, this indicates that capitulation has occurred already and Glassnode, an on-chain analysis firm, demonstrated that the Bitcoin Mayer Multiple fell below 0.5, which is extremely rare and hasn’t happened since 2015.Whales and arbitrage desks might take some time to adjust after key players like Three Arrows Capital face serious contraction and liquidation risks due to a lack of liquidity or excessive leverage. Until there’s enough evidence that the contagion risk has been alleviated, Bitcoin price probably will continue to trade below $22,000.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Here’s how pro traders could use Bitcoin options to buy the $20K BTC dip

Bitcoin hit a 2022 low at $17,580 on June 18 and many traders are hopeful that this was the bottom, but (BTC) has been unable to produce a daily close above $21,000 for the past six days. For this reason, traders are uncomfortable with the current price action and the threat of many CeFi and DeFi companies dealing with the loss of user funds and possible insolvency is weighing on sentiment.The blowback from venture capital Three Arrows Capital (3AC) failing to meet its financial obligations on June 14 and Asia-based lending platform Babel Finance citing liquidity pressure as reason for pausing withdrawals are just two of the most recent examples.This news has caught the eyes of regulators, especially after Celsius, a crypto lending firm, suspended user withdrawals on June 12. On June 16, securities regulators from five states in the United States of America have reportedly opened an investigation into crypto lending platforms.There is no way to know when the sentiment will change and trigger a Bitcoin bull run, but for traders who believe BTC will reach $28,000 by August, there is a low-risk options strategy that yields a decent return with limited risk.The “Iron Condor” provides returns for a specific price rangeSometimes throwing a “hail Mary” pays off by leveraging ten times via futures contracts. However, most traders are looking for ways to maximize gains while limiting losses. For example, the skewed “Iron Condor” maximizes profits near $28,000 by the end of August, but limits losses if the expiry is below $22,000.Bitcoin options Iron Condor skewed strategy returns. Source: Deribit Position BuilderThe call option gives its holder the right to acquire an asset at a fixed price in the future. For this privilege, the buyer pays an upfront fee known as a premium.Meanwhile, the put option provides its holder the privilege to sell an asset at a fixed price in the future, which is a downside protection strategy. On the other hand, selling this instrument (put) offers exposure to the price upside.The Iron Condor consists of selling the call and put options at the same expiry price and date. The above example has been set using the August 26 contracts, but it can be adapted for other timeframes.The target profit area is $23,850 to $35,250To initiate the trade, the investor needs to short 3.4 contracts of the $26,000 call option and 3.5 contracts of the $26,000 put option. Then, the buyer needs to repeat the procedure for the $30,000 options, using the same expiry month.Buying 7.9 contracts of the $23,000 put option to protect from an eventual downside is also required. At another purchase of 3.3 contracts of the $38,000 call option to limit losses above the level.This strategy yields a net gain if Bitcoin trades between $23,850 and $35,250 on August 26. Net profits peak at 0.63 BTC ($13,230 at current prices) between $26,000 and at $30,000, but they remain above 0.28 BTC ($5,880 at current prices) if Bitcoin trades in the $24,750 and $32,700 range. The investment required to open this strategy is the maximum loss, hence 0.28 BTC or $5,880, which will happen if Bitcoin trades below $23,000 or above $38,000 on August 26. The benefit of this trade is that a reasonable target area is covered, while providing a 125% return versus the potential loss.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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