Headlines 

China Is Studying Yuan Devaluation as a Tool in Trade Spat

Chinese leaders are weighing options as trade tensions rise Trump bashed China’s currency policy on the campaign trail Other markets have been far more turbulent as both the U.S. and China proposed tariffs on $50 billion of goods and Trump instructed his administration to consider levies on an additional $100 billion of Chinese products. currency manipulator, make it more difficult for Chinese companies to service their mountain of offshore debt, and undermine recent efforts by the government to move toward a more market-oriented exchange rate system. It would also expose…

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Headlines 

Bitcoin Falls on Fears of Regulatory Trouble for Big Crypto Exchange

Japan’s FSA warns Binance for operating without a license Biggest cryptocurrency fell 4.5% after news first reported told Bloomberg in January that it was working to acquire a license in Japan, but the warning could complicate those efforts. Zhao said on Thursday that the exchange is “engaged in constructive dialogue” with the FSA. While Binance was founded in Hong Kong last year, Zhao has said that his company does not currently have a legal headquarters anywhere in the world.

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Headlines 

U.S. Regulators Subpoena Crypto Exchange Bitfinex, Tether

U.S. regulators are scrutinizing one of the world’s largest cryptocurrency exchanges as questions mount over a digital token linked to its backers. The U.S. Commodity Futures Trading Commission sent subpoenas on Dec. 6 to virtual-currency venue Bitfinex and Tether, a company that issues a widely traded coin and claims it’s pegged to the dollar, according to a person familiar with the matter, who asked not to be identified discussing private information. The firms share the same chief executive officer. Tether’s coins have become a popular substitute for dollars on cryptocurrency exchanges…

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Odds and Ends 

Researchers find that one person likely drove Bitcoin from $150 to $1,000

Researchers Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman have written a fascinating paper on Bitcoin price manipulation. Entitled “Price Manipulation in the Bitcoin Ecosystem” and appearing in the recent issue of the Journal of Monetary Economics the paper describes to what degree the Bitcoin ecosystem is controlled by bad actors. To many it’s been obvious that the Bitcoin markets are, at the very least, being manipulated by one or two big players. “This paper identifies and analyzes the impact of suspicious trading activity on the Mt. Gox Bitcoin…

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Headlines 

World’s Top-Ranked Crypto Exchange Adds 240,000 Users in One Hour

The world’s biggest cryptocurrency exchange keeps getting bigger. Hong Kong-based Binance.com is adding “a couple of million” registered users every week, with 240,000 people signing up in just an hour on Wednesday, Chief Executive Officer Zhao Changpeng said in an interview with Bloomberg Television. Demand is so high that the company is limiting new customers, he said, though Binance may fully reopen in the coming weeks. “We did not expect this kind of growth to be honest,” Zhao said from Tokyo on Thursday. Binance was the world’s most active crypto…

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Headlines 

How China Will Shake Up the Oil Futures Market

China, the world’s biggest oil buyer, is on the verge of opening a domestic market to trade futures contracts. It’s been planning one for years, only to encounter delays. The Shanghai International Energy Exchange, a unit of Shanghai Futures Exchange, will be known by the acronym INE and will allow Chinese buyers to lock in oil prices and pay in local currency. Also, foreign traders will be allowed to invest — a first for China’s commodities markets — because the exchange is registered in Shanghai’s free trade zone. There are…

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Headlines 

Trump Says Investors Should Sue ABC for Market-Moving Report

President Donald Trump called on investors to sue ABC News after a false report about him caused the stock market to briefly plunge Friday. ABC News investigative reporter Brian Ross told viewers Friday morning that former national security adviser Michael Flynn was prepared to testify that Trump, then still a candidate, had told him to contact Russian officials. The implication that the president himself was connected to his campaign’s dealings with Russia sent the Dow Jones Industrial Average down more than 350 points before it recovered. “People who lost money…

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Headlines 

Heres What the World’s Central Banks Really Think About Bitcoin

Eight years since the birth of bitcoin, central banks around the world are increasingly recognizing the potential upsides and downsides of digital currencies. The guardians of the global economy have two sets of issues to address. First is what to do, if anything, about emergence and growth of the private cryptocurrencies that are grabbing more and more attention — with bitcoin now surging toward $10,000. The second question is whether to issue official versions. Following is an overview of how the world’s largest central banks (and some smaller ones) are approaching…

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Headlines 

I Think We Got Away With It: Listen to HSBC Trader Phone Calls

Here’s the challenge for U.S. prosecutors: convince a jury former HSBC currency trader Mark Johnson is guilty of front-running a $3.5 billion client order. Their strongest evidence is HSBC’s audio recordings of the phone calls between Johnson, the bank’s former global head of foreign exchange, and traders in London and New York, which take the jury back to re-live events of six years ago. The jury, which on Thursday started weighing the fraud case against Johnson, listened to numerous calls, including one where he said, “I think we got away with…

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Headlines 

Bitcoin More Than Just a Fad, Morgan Stanley CEO Says

Not every Wall Street bank chief is bearish on bitcoin. Morgan Stanley Chief Executive Officer James Gorman takes a more measured view on the cryptocurrency than crosstown rival Jamie Dimon, the JPMorgan Chase & Co. head who earlier this month called it

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Odds and Ends 

Bitcoin breaks $3,000 to reach new all-time high

Bitcoin has reached a record high valuation of $3,000 per coin to complete a rollercoaster week that begin with the long-awaited split of the cryptocurrency. A number of exchanges, including popular destinationsCoinbase and Kraken, valued a single bitcoin at over $3,000, an all-time high that is up $485 on the valuation one month ago. Earlier this year, Bitcoin surged to surpass $2,000 for the first time in May going on to almost reach $3,000 in June only for the valuation to crash. Over the last twelve hours, bitcoins value has…

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