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OANDA Gets a $500,000 CFTC Penalty Over Minimum Capital Lapses

The charges were that OANDA failed to meet the minimum financial requirements for RFEDs and FCMs.

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The US Commodity Futures Trading Commission (CFTC) has hit OANDA Corporation with a $500,000 fine for failing to adhere to certain regulations, including that it failed to meet minimum capital requirements.

CFTC has issued an order filing and simultaneously settling charges against the Canada-based firm, which is one of a handful of FX retail brokers that operate as a CFTC-registered retail foreign exchange dealer (RFED) and futures commission merchant (FCM).

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The charges were that OANDA failed to meet the minimum financial requirements for RFEDs and FCMs and violated the equity withdrawal restriction resulted from making dividend payments on three occasions.

Each of these violations, the order finds, was a result of OANDA’s inadequate internal controls and its failure to supervise matters related to handling its business compliance as a CFTC registrant.

As such, OANDA did not fully recognize this shortfall, as well as the fact that it was actually undercapitalized during the relevant time, in October 2018 and during the period from April 2019 to August 2019.

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CFTC credits OANDA for cooperation

The order further explains that OANDA violated CFTC minimum financial requirements by making three prohibited dividend payments on October 15, 2018, April 26, 2019, and May 28, 2019.

To resolve the CFTC’s complaint, OANDA agreed to pay a fine and, among other things, cease and desist from further violations of its capital requirements.

Under CFTC regulations, a retail forex firm must at all times maintain adjusted net capital (ANC) of $20 million, or more in certain circumstances. Events triggering a shortfall in these requirements typically require filings within very short time periods.

The watchdog said that in settling the matter, it took into account OANDA’s cooperation in the investigation and the corrective actions the company undertook after its deficiencies were discovered. It also found no indication that OANDA customers suffered losses as a result of the firm’s net capital and equity withdrawal lapses.

“Capital requirements are a cornerstone of the regulatory framework governing CFTC-regulated intermediaries and we will continue to monitor firms for compliance with these important rules,” added Division of Swap Dealer and Intermediary Oversight Director Joshua B. Sterling.

OANDA is a multi-regulated broker with offices in Toronto, Europe, and the Asia Pacific region. The ‎company operates an FX trading platform utilized by a mix of retail and institutional investors. ‎It also provides currency information services to individuals, large corporations, and portfolio ‎managers.‎

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Cardano long-term Price Analysis: 29 November

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Disclaimer: The findings of the following article are the sole opinion of the writer and should not be taken as investment advice

Cardano recorded a stark surge in its price, despite its drop of 30% following Bitcoin’s correction on the charts. Altcoins are the ones that suffer the most due to Bitcoin’s volatility and the same has been true in ADA’s case.

However, what’s different is that Cardano’s bounce since the drop – the 30% drop – was almost fully retraced over the next 2 days. This underlined the strong buyback for ADA, one that was backed by a good volume surge on the charts.

At the time of writing, ADA’s outlook seemed 50-50. The cryptocurrency’s price was just above the 61.8%-Fibonacci level and could go either way.

Cardano 4-hour chart

Source: ADAUSD on TradingView

The 4-hour chart had Fib extensions, the moving averages, and indicators to it. While there was no pattern to it, ADA’s chart seemed eager to surge higher. A bounce from the 61.8% level could take ADA higher. However, failure to respect this level could push ADA down to the 50% level, which was at $0.1442.

Rationale

Since the odds seemed equally skewed, considering ADA’s correlation with BTC might help break it. At press time, the 60-day correlation between ADA and BTC had surged from 0.276 to 0.50.

Such a stark surge in correlation meant that ADA will promptly follow where Bitcoin goes. Since Bitcoin did show a bearish outlook, we can expect ADA to head south as well.

Additionally, there was the confluence of moving averages 50, 100, and 200. There hadn’t been a reversion to the mean between the price and these MAs. Hence, this supported the bearish scenario.

The OBV indicator showed a good surge in volume for the second wave, however, it still seemed to be lower than the previous surge. The RSI was testing the overbought zone yet again. A failure at this level would be higher, hence, a short position will make sense.

Levels to look out for

Entry: $0.162438
Stop-loss: $0.173178
Take-profit: $0.144140
Risk-to-Reward: 1.7

Source: https://eng.ambcrypto.com/cardano-long-term-price-analysis-29-november

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Ripple Plans To Cash Out 33% Of Its MoneyGram Stake With A Significant Profit

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  • The San Francisco-based payment protocol has filed a document on Friday with the US Securities and Exchange Commission (SEC). It reads that Ripple Labs has entered into an agreement with MoneyGram, which entitles Ripple to sell up to 4,000,000 shares of common stock.
  • Ripple’s option to sell these shares will expire “upon the earliest of March 31st, 2021, the time at which the maximum amount shall have been sold, or the occurrence of certain other customary events affecting the issuer.” 
  • CryptoPotato reported last year that Ripple and MoneyGram announced a strategic partnership. The initial term of the agreement was for two years. Ripple had agreed to provide a capital commitment amounting to $50 million in exchange for equity through the two-year period.
  • As per the SEC filing, Ripple owns 6.22 million shares of the giant money transfer company (or 8.6% of shares outstanding). However, the blockchain company has a warrant to buy up to another 5.95 million shares, amounting to a total equity position of 12.2 million shares or 17% of MoneyGram’s shares outstanding).
  • With the initial investment in 2019, Ripple purchased the MoneyGram shares at 4.10 per stock, which was a significant premium to the market price. 
  • Nevertheless, MoneyGram’s stocks (MGI) have surged in 2020, closing Friday’s session at $7.42. As such, Ripple can cash out with an 80% profit, despite the initial premium.
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Source: https://cryptopotato.com/ripple-plans-to-cash-out-33-of-its-moneygram-stake-with-a-significant-profit/

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South Korea To Postpone Previously Planned Crypto Income Tax

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Lawmakers in Korea are planning to postpone a recently considered tax on crypto assets profits. Reports say the tax rule delay will be about three months – instead of October 2021, January 2022.

The New Crypto Income Tax Rule To Wait Until January 2022

According to a recent media report, the South Korean congress plans to put off the recently considered cryptocurrency income tax rule. A planning and finance committee of the National Assembly has issued a report, which proposes the necessity of implementing the crypto income tax rule from at least 2022.

A few months ago, in July, a report stated that South Korea’s Minister of Finance and Economy believes that the country should come up with a tax on cryptocurrency trading and investing. Back then, he added that South Korea has been in discussion with other countries about introducing a new digital law.

In July 2020, the country’s Ministry of Economy and Finance amended its tax code, where it included the plan for charging residents a 20% tax on gains from cryptocurrency trading, which are worth more than 2.5 million Korean won (about $2,000).

Lawmakers in the National Assembly are to approve the Government’s plan, which was to carry into effect the cryptocurrency income tax rule from October 2021.

Reason For The Delay – Time Is Tight

As per the media report, the reason for the postponement of the crypto tax law is based on some concerns, raised by local crypto exchanges. They have claimed the lack of time to build their proper tax reporting system and infrastructure, needful for the process to begin.

The so-called “Specific Financial Information Act” would be enforced from March next year, so crypto exchanges have to complete the necessary reporting system by September 2021 for verifying their real names of deposit withdrawal accounts.

As CryptoPotato reported, South Korea announced the planning of the crypto income tax in June this year. The Asian country went through some different views on how and whether it should tax profits from cryptocurrency. Firstly, at the beginning of 2020, the Ministry of Economy and Finance did not consider that digital asset trading gains as taxable income. A month later, another local report said the Ministry believes that the nation could start label cryptocurrency trading profits as “other income.”

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Source: https://cryptopotato.com/south-korea-to-postpone-previously-planned-crypto-income-tax/

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