Bitcoin Price Above $10K Sees ‘Strange’ Premium After $1M BTC Buys & More.

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Bitcoin Price Above $10K Sees ‘Strange’ Premium After $1M BTC Buys.

A frenzied period for major exchanges produces unusual phenomena and huge volumes, while Coinbase bows out.

Bitcoin (BTC) hitting $10,000 has been frantic activity on exchanges — investors are buying the largest cryptocurrency at five figures, not selling.

According to data from monitoring resource Coin Metrics on June 2, one 10-minute period alone saw trading volume hit a giant 3,500 BTC.

“Peculiar” BTC price action sparks volume surge

As markets climbed to highs of $10,340, exchanges saw a sudden surge of interest, with Bitfinex specifically producing what Coin Metrics described as “very strange” behavior.

“#Bitcoin prices on Bitfinex just did something very strange and are now trading at a $40 premium to the rest of the market,” the company tweeted.

“This peculiar price action was accompanied by over 3,500 $BTC volume in the 10 minute candle.”

The volume figure came from readings of six major exchanges: BitfinexBitstamp, ItBitGeminiKraken and Coinbase, the latter suffering an outage due to demand.

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BTC/USD chart showing volume spike. Source: Coin Metrics/ Twitter

Multimillion-dollar Bitcoin buys above $10,000

In response to this, Bitfinex CTO Paolo Ardoino described the premium on his platform as “interesting.”

“We’ve seen some big buys on Finex since the spike,” he wrote.

Ardoino further pointed to a volume spike peculiar to Bitfinex, noting that buy orders were still piling up above $10,000. Those orders included two for over $1.4 million each at $10,145 and $10,170 respectively.

“Especially the second green candle is only on us (some users entered hard in the market…) Spreads super tight,” he added.

As Cointelegraph reported, exchange reserves were lingering at their lowest levels since December 2018 as users appeared to want to hold coins, not trade or sell them.

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Bitcoin exchange reserves 1-year chart. Source: CryptoQuant

According to the latest data from CryptoQuant analyzing exchange holdings, Bitcoin’s push above $10,000 has yet to attract a sizable return to exchange balances.

 

Cryptocurrency Firms Now Recognized as Money Service Businesses in Canada

From today onwards, Canadian firms operating with virtual currencies will be legally recognized as Money Service Businesses.

Cryptocurrency exchanges and payment processors are now legally recognized as Money Service Businesses (MSB) within Canada.

June 1 saw the enactment of amendments to Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act that were passed in June 2019 to address holes in the then-existing framework.

Candian crypto firms must now report all transactions exceeding 10,000 Canadian dollars ($7,403), and register and comply with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Recognition brings relief

On May 29, the CEO of Canadian crypto asset exchange BullBitcoin, Francis Pouliot, tweeted:

“Today is my last day as an unregulated dealer in virtual currency. As of June 1, 2020, Bitcoin exchanges and payment processors are officially regulated as Money Services Businesses in Canada.”

Pouliot had spent over half a decade fighting for legitimate recognition for Canada’s crypto sector, having joined the Bitcoin Foundation Canada as its director of public affairs in 2014.

“I’ve been closely involved with the process, starting in 2014, collaborating particularly with the Ministry of Finance and FINTRAC. Our stance never changed: Bitcoin is money, it should be regulated like other money, no more no less,” he added.

Pouliot notes that the new regulations will predominantly affect cash-based businesses such as Bitcoin ATM operators, adding that “most Bitcoin businesses already had KYC measures in place […] because they were required to do so by their banking or payment processing partners.”

MSB recognition follows five years of negotiations

Pouliot describes the protracted political negotiations that led to last year’s legislative amendment, stating that Canada’s parliament had originally decided to pass the regulations in 2014.

“It took five years to agree/negotiate what specific activities are covered and the technicalities of regulation,” he added.

In response to Pouliot’s tweets, Twitter user “NODEfather” wrote, “I went to prison for selling 9.998 BTC for $9,260.80 USD in 2014, Unlicensed Money Transmission, which used the Banking Secrecy Act 1970 a 50+ year old law applied to #Bitcoin.”

 

Western Union Makes Takeover Offer for MoneyGram

According to Bloomberg, financial giant Western Union has made an offer to purchase cross-border payments company MoneyGram.

Western Union might be purchasing cross-border payments company MoneyGram.

According to a June 1 article on Bloomberg, the payments giant recently made a takeover offer for MoneyGram. If successful, this would combine the two of the biggest money-transfer companies in the United States.

Ups and downs during pandemic

Lockdowns and shelter-in-place orders in response to the coronavirus have closed many businesses across the U.S., including local branches of MoneyGram.

The number of digital transactions have risen as people stay at home, but they accounted for just 18% of its money transfers in the first quarter, according to Bloomberg. Despite partnering with Ripple in 2019 for cross-border payments foreign exchange settlements, MoneyGram reported a “quiet” first quarter for 2020.

MoneyGram has a market cap of approximately $155 million, with Western Union valued at roughly $8.2 billion.

 

 

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