Speculative Risk in Relation to Virtual Currency Transactions

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　　BANDSFinancial

　　磐石金融有限公司（ BANDS Financial Limited ）在香港注册成立，是一家持有香港证监会（SFC）2号牌照的期货经纪公司，业务涉及中国以外全球大部分活跃期货及期权市场。

　　Overnight Bitcoin teetered at $39,000 then fell to $30,000 in a straight line more than 50% down on its February high. A statement from the National Internet Finance Association of China, the China Banking Association and the Payments and Clearing Association of China who jointly issued “Public Notice on the Prevention of Speculative Risk in Relation to Virtual Currency Transactions” provided the trigger, The note outlined that Chinese financial institutions and payments organisations are “not permitted to directly or indirectly provide services in relation to cryptocurrencies to customers.” In China, holding Bitcoin is legal; however, Beijing has withdrawn banking services is actually nothing new, and the note is only a restatement of China‘s previous position. Chinese based cryptocurrency exchanges and trading platforms were effectively banned by regulation in September 2017 and by July 2018 173 platforms had closed. However recent sentiment had been damaged by the withdrawal of support by Elon Musk the Bitcoin Pope (not really an evangelist), who, worried about his green credentials had withdrawn his backing for bitcoin a few days earlier. In the depth of yesterday’s fall perhaps $1 trillion was wiped off the valuation of the crypto market, a huge number, and ultimately a number that will only attract further interest.However, lost behind the Bitcoin headlines, and no doubt prompted by the recent sharp rise in China‘s PPI index is a statement released by Xinhua. “Premier Li Keqiang of the State Council hosted an executive meeting of the State Councilon May 19 and agreed to make arrangements to ensure the supply and price stabilization of bulk commodities and maintain the stable operation of the economy.” This policy document outlines Beijing’s emerging approach to rising commodity price inflation. It will reform targeted inbound tariffs, reorganise production, punish hoarding, crackdown on monopolistic practices, toughen market regulation, strengthen industry self-discipline, suppress abnormal trade and malicious speculative bets. etc etc. Suitably chastened, last nights night session of domestic commodity futures duly opened with steep losses, further adding to the sense of panic.This morning markets are opening with poise and sudden moves are limited, Was it all a nightmare？ Perhaps it was.Have a good day

　　Joh