Crypto Banks Reality and Trade Tariffs Gloom

Published on: 08/30/19 9:32 AM

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Category: Newsletter

The last week of August 2019 was largely sour for the FX Market as previous week negative tariff sentiment replicated volatility across currency pairs and commodities trading. But cryptocurrencies held sway with Switzerland licensing two crypto banks. Forex Broker comparison service FXBrokerFeed brings you the latest news bites and trends in the FX Broker Market, featuring SEBA AG and Sygnum AG Crypto Banks and Tariffs engineered Recession.

Switzerland Licenses 2 Crypto-Banks

The Financial Markets Authority (FINMA) of Switzerland issued licenses to SEBA AG and Sygnum AG to offer crypto banking services but under strict regulatory compliance. The two new crypto banks are expected to trade and borrow against traditional and digital assets, offer custody storage, liquidity, and wealth management. Said Andreas Amschwand, Chairman of the Board of SEBA “The Banking license of Swiss Financial Market Authority FINMA is not only a milestone for SEBA, it sets a new standard for banking in the blockchain and digital asset economy”. A similar statement from Sygnum indicated that the bank will offer institutional-grade digital custody, become a fiat-digital asset gateway, and raise new capital by issuing tokens based on traditional financial assets. The move further enhances Switzerland’s reputation as the unrivalled center for innovative international financial services.

Tariffs War Recessionary Risks

A tariffs war that started in 2018 has since escalated to negatively impact the entire spectrum of the global forex market. Central banks are clutching at straws of reactionary interest rate cuts to provide a modicum of stimulus to hurting economies. Sentiment for the week mainly depicted risk aversion, and mass flights to safe havens. For example, the EUR/USD traded below 1.1100, GPB/USD held at 1.2200 while USD/JPY was in dismal showing below 106.00 on Thursday. Data releases portend a looming global recession without sobriety to resolving the tariffs war made worse by geopolitical trip wires.

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