KPMG's cryptoasset report | SEC cracks down on two ICOs | OKEx settles futures contract without warning, causing $24M in trader losses

Bitcoin $4,975                    Ethereum $152.12 
Crypto Mkt Cap $162B              BTC Dominance 52.50%

“We must not allow cybercriminals to hide behind cryptocurrencies.” — Rod Rosenstein, U.S. Deputy Attorney General

The Big Block

KPMG says that it is focused on helping organizations build the infrastructure and capabilities required to scale crypto. The Big Four accounting firm is convinced that for cryptoassets to realize their potential, institutionalization is needed. In a recently issued report, the firm said: “We believe [institutionalization] is a necessary next step for crypto to create trust and scale.”

In the 42-page report, KPMG identifies the key challenges to the adoption of crypto in the global financial services ecosystem and introduces “KPMG’s Cryptoasset Framework” to help address them. The report was created with contribution from Coinbase plus insights and guidance from Fundstrat Global Advisors and Morgan Creek Digital.

KPMG notes that “cryptoassets are now impossible to ignore.” The firm believes that in 2017, crypto started competing against the traditional asset classes from an investment perspective. This development accelerated in 2018 as new financial vehicles entered the crypto space — security token platforms, stablecoins and more. Furthermore, KPMG pointed out that established financial services institutions are launching crypto products and services. However, it acknowledges that crypto is still dwarfed by the traditional asset markets with a size of more than $300 trillion globally.

Read More on The Block (6 Minutes)


Around The Block

The SEC cracks down on two ICOs, creating a template for future enforcement

There was huge news on the ICO/token sale front from the SEC on Friday regarding two initial coin offering (ICO) issuers. Let’s break it down.

What happened? Cease-and-desist orders were entered under the Securities Act of 1933 against two companies that raised money in token sales in late 2017. The SEC says:

(1) each company’s token was a security

(2) each broke U.S. securities laws because they

(a) failed to register with the SEC

(b) did not qualify for an exemption

More


OKEx settled futures contracts early and without warning, causing $24 million in trader losses

OKEx, a Hong Kong-based exchange that is currently the second largest in the world by volume, settled bitcoin cash contracts early without warning on November 14. This unorthodox move caused aggregate losses for short-positions of roughly $24 million. According to Bloomberg, one trader lost $700,000 because his hedging position was closed prematurely. — More


Nomics Research: The problems with using ‘market cap’ in crypto — More

Parent of cryptocurrency exchange giant Huobi creates Community Party committee to work with Chinese government — More

Bitcoin drops to a 13-month low — More

Deloitte: Negative crypto headlines are distracting clients — More

Kraken launches Bitcoin SV trading but warns traders of ‘red flags’ — More

Bitcoin’s hash rate declines by more than 10% — More

ICOs’ arbiter: the Howey Test — More


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