Home » Money

Goldman Sachs puts crypto trading desk launch plans on hold

08 September, 2018, 14:03 | Author: Melinda Barton
  • Goldman Sachs Puts Plans for a Crypto Trading Desk on Backburner

According to a report by Business Insider, sources familiar with the situation confirmed that the investment bank had run into a "regulatory roadblock" in its bid to launch a crypto trading desk.

Goldman Sachs is now focusing on a new custodial service for Wall Street investors that will bring the cryptocurrency industry closer. As a result, any bank looking to facilitate those trades has to figure out how to safeguard those assets in a way that keeps regulators happy. For example, if someone has 10BTC that they received 10 days ago and then they spend it, 100 bitcoin days have been destroyed.

"When we talked about exploring digital assets that it was going to be exploration that would be evolving over time", he said.

The price of the leading cryptocurrency got knocked down by news that Goldman Sachs is on the verge of scrapping its plans to have a digital currency trading desk. Bitcoin BTC=BTSP fell almost 5 per cent to touch five-day low at $6,985 on the Luxembourg-based Bitstamp exchange. Ripple lost 7.7%, Litecoin went down by 7.1%, and Ethereum sunk by 9%.

Business Insider reported Wednesday that Goldman Sachs sees the regulatory environment as ambiguous and therefore too risky to delve into cryptocurrencies.

Rumors of Goldman setting up a crypto trading desk to make markets in digital currencies, such as bitcoin, have been circulating since December 2017.


In addition to this, there have been a number of Bitcoin ETF applications denied by the US Securities and Exchange Commission. This is despite the optimism they showed earlier in the year when they became the first Wall Street firm to clear Bitcoin futures.

Before BI's report, bitcoin had been trading just over $7,300.

However, Mati Greenspan who is the senior market analyst at eToro stated that "The expectation of adoption by Wall Street has been a major theme for the cryptocurrency market the previous year, so any kind of updates on that can certainly move the prices".

While many banks and institutional investors are dipping their toes into the world of cryptocurrencies, concerns about everything from money-laundering to market manipulation and unclear regulations have prevented widespread adoption.

However, even during the downward trend, bitcoin manages to hold the upper hand over other competing cryptocurrencies in the market that are also suffering the dip of the total market cap.

Recommended:

  • Alibaba's Jack Ma 'to step down and focus on philanthropy'

    Alibaba's Jack Ma 'to step down and focus on philanthropy'

    Ma, who founded the company back in 1999, stepped down as the company's chief executive officer in 2013. Ma told the newspaper that his retirement "is not the end of an era but " the beginning of an era ".
    Here's Apple's new iPhone from every angle

    Here's Apple's new iPhone from every angle

    If Apple does stick with the same pricing, it means the iPhone Xs will start at $799 while the iPhone Xs Max will be around $999. It's said to have a giant 6.5-inch display, so the "Max" moniker is fitting for what will be Apple's largest smartphone.

    McDonalds poster prank goes viral

    With the help of a couple of friends, the mission was complete and now nearly two months later, the poster is STILL UP. The pair even bought a McDonald's uniform from a charity shop for seven dollars to help them execute the prank.
  • Djokovic tops Nishikori for 8th US Open final

    Djokovic tops Nishikori for 8th US Open final

    I didn't take any pleasure in watching Nadal go through the motions in that second set - especially in case he did more damage. Who could ask for anything more? And through it all the tendninits in his knees has periodically slowed him.
    North Korea seeks to denuclearize in Trump's first term, Seoul officials say

    North Korea seeks to denuclearize in Trump's first term, Seoul officials say

    Kim insisted that formally ending the Korean War had nothing to do with USA troops stationed in South Korea , Chung said. Seoul and Pyongyang both want a declaration to formally end the 1950-53 Korean War, which ended in an armistice.
    Ayanna Pressley’s Reaction To Her Historic Victory Is Everything

    Ayanna Pressley’s Reaction To Her Historic Victory Is Everything

    Pressley also represents the latest underdog candidate to have emerged to challenge both establishment Democrats and Republicans. Moments after her rival - 10-term Rep. "The district wanted a lot of change", Capuano said as he conceded.
  • Post Malone writes off $323k Rolls Royce in early morning crash

    Post Malone had been in the NY area on Monday for the MTV Video Music Awards, where he won the song of the year prize. Last month, he was traveling on a Gulfstream jet that blew two tires during takeoff at a small New Jersey airport.
    Elon Musk's Tesla tumbles as two execs announce exit

    Elon Musk's Tesla tumbles as two execs announce exit

    Shortly after, HR head Gabrielle Toledano , who'd taken a leave of absence last month, also said she wouldn't return. Rogan told Musk about a small container he bought in Mexico that he had hoped would hold joints.
    Tesla accounting chief quits over Tesla’s

    Tesla accounting chief quits over Tesla’s "level of public attention"

    In July he shocked investors by announcing on Twitter that he had funding secured to take his auto firm Tesla private. Tesla shares were volatile Friday morning amid a flawless storm of chaotic news for the embattled electric carmaker.
  • Obama speaks out against Trump and attacks 'politics of fear and resentment'

    Obama speaks out against Trump and attacks 'politics of fear and resentment'

    He called for "a restoration of honesty and decency and lawfulness in our government". "What happened to the Republican party?". OK?" "When you hear how great the economy's doing right now, let's just remember when this recovery started", he said.
    Roy Moore sues Sacha Baron Cohen for defamation

    Roy Moore sues Sacha Baron Cohen for defamation

    Senate Judge Roy Moore speaks during a campaign rally in Midland City, Alabama, U.S., December 11, 2017. While Moore signed a release for the interview, the case alleges that release itself was fraudulent.
    India's top court strikes down gay sex ban

    India's top court strikes down gay sex ban

    Arun Kumar stated that things like gay sex or same-sex marriages are still taboo and unacceptable things in the Indian society. Leading up to the Supreme Court hearings, at least 26 other Indians with varied social and economic backgrounds joined them.


Popular

Ex-Trump campaign adviser Papadopoulos sentenced to 14 days
Gordon, former National Security Adviser for the Trump campaign, echoed similar sentiments, while blasting the Mueller probe. He had discussed with those foreigners the possibility of a foreign trip where Donald Trump could meet Vladimir Putin .

Mac Miller Dead at 26 After Apparent Drug Overdose
Others insinuated that Ariana's choice to leave him for Pete Davidson , the Saturday Night Live star, led him to take drugs. Multiple US media sources are this morning confirming the tragic death of hip-hop star Mac Miller at the young age of 26.

Serena Williams defeats Karolina Pliskova, reaches US Open semis
Williams closed out the match in style, winning a service game at love with two aces, an overhead smash and another ace. But as Williams started to find her groove she held and then broke serve to tie it 4-4.

Fan frenzy as Tiger and Rory share PGA Tour lead
Tiger Woods watches his tee shot on the third hole during the first round of the BMW Championship golf tournament at Aronimink GC. This is the first time Woods has shared a PGA Tour lead after any round since capturing the 2013 WGC-Cadillac Championship.

Turkey, Iran and Russian Federation discuss Syria at trilateral summit in Tehran
The United Nations Security Council met to discuss Idlib on Friday at the request of the United States, and U.N. What will happen to USA troops in Syria? "We urge Russian Federation to consider its options carefully".

Stunning Reports Reveal ‘Frantic’ White House Hunt For Anonymous Trump Official
White House officials didn't immediately respond to a request to elaborate on Trump's call for the writer to be turned over to the government.

Democrats Take ‘Civil Disobedience’ Stance in Leaking Kavanaugh Documents
It would be a huge victory before the November elections. 'I understand the penalty comes with potential ousting from the Senate. Richard Blumenthal of CT , "selecting a justice on the Supreme Court who potentially will cast a decisive vote in his own case".

Trump says happy with Kavanaugh's performance at confirmation hearings
He likened it to another controversial, landmark Supreme Court decision, the Miranda ruling about the rights of criminal suspects. But the Democratic frustrations that boiled over on September 4 had been simmering for more than two years.

Amazon Becomes Second Company To Hit $1 Trillion After Apple
Shares in the e-commerce giant rose almost 2 percent to a high of $US2,050.50 in morning trade before slipping back. Amazon has become the second publicly traded company to be worth $US1 trillion, hot on the heels of Apple .

Rafael Nadal defeats Dominic Thiem in US Open quarter-final
Nadal holds a 7 to 3 advantage, though Thiem did beat Nadal earlier this year at the ATP World Tour Masters 1000 in Madrid. Thiem will next play either world number one Rafael Nadal , who beat Nikoloz Basilashvili in another pre-quarterfinal.