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Young Africans Move to Crypto, Join ‘the Gospel of Bitcoin’ With Early Adoptees

As unemployment troubles African youth, many professionals are now moving to Bitcoin to find earnings in the volatile currency. A small community of young professionals is now teaching others the ‘gospel of bitcoin’, narrating their success stories and encouraging others to adopt cryptos.

Uganda’s gospel of truth

After suffering for years under the dictatorship, the nation’s youth are opening up to digital currencies. Richard M. Bagorogo, one of the lecturers in these meetings said, “What I have earned in one-and-a-half years from bitcoin is more than I earned in 10 years as a teacher. I am living on bitcoin because getting a job in this country is not easy.”

Young Africans Move to Crypto, Join ‘the Gospel of Bitcoin’ With Early Adoptees

Bagorogo is a star of these events which are being held everywhere in the Ugandan capital, Kampala. He meets young professionals and other tech-savvy youth of the country to encourage them and enter the crypto space. A huge number of these adoptees are millennials looking for jobs. Considering the high unemployment rates, earning through bitcoin trades could be a way to earn a primary income.

There are several stories of bitcoin success like him that are now being taught to other young minds, who are educated but jobless. Bagorogo describes his struggles with early adoption of the currency in great detail. He tells the story of how he could not afford education for his children in the school he taught and how bitcoin helped him holiday in Dubai.

“When I tried to bring my cousins on board, they called my father in the village and said, ‘Your son has gone mad,’” said Bagorogo. He says that he is fascinated with the blockchain concept. Now, he is asking other people to adopt more than two dozen top currencies and start trading.

He added, “For me, I was fascinated by the mathematics behind blockchain technology. But the local man is interested in money, not the mathematics, so I normally sit with them and show them how I get and withdraw my money. Once they see how easy it is, they also want bitcoin.”

Governments are not thrilled

While many people are trying to move the masses with small savings to trade or invest in cryptocurrencies, governments in Africa aren’t thrilled with the idea. They have previously shown grave concerns about money laundering and the use of the digital coins for illicit activities, given then anonymity. The central bank of Uganda has warned investors that plunging in cryptos “is taking a risk in the financial space where there is neither investor protection nor regulatory purview.”

The volatility of these currencies could be another financial hazard for the investors. Bitcoin, for example, rose by 1700% in the last quarter of 2017 to reach a valuation of $19,000. However, since then, its value has come down to only $9,000. By far, there is no sign of a similar upsurge even though experts predict the value to quadruple this year.

In Africa, there is a marked difference in the approach of different economies. While Kenya, Nigeria, Uganda, and Namibia are clearly against the use of digital currencies, countries like South Africa and Tunisia are exploring their options and have a generally favorable view.…

Cboe Dodges Sec, Recommends the Launch of Bitcoin Etf

CBOE Global Markets is unhappy with SEC interference in the launch of bitcoin ETF. It has urged the regulator to allow the launch of the ETF, as a regular marketable security. In a recent letter to the Securities and Exchange Commission, CBOE President Chris Concannon addressed the regulator’s concerns, recommending them not to interfere in the development of the new fund.

CBOE’s rebuttal

Per the exchange operator, a bitcoin ETF will be similar to other ETFs in the market. An exchange-traded fund is designed as marketable security that tracks, bonds, a basket of assets, an index or a commodity. They have lower fees than mutual funds, and their liquidity remains higher than common stock.

In response to an SEC letter expressing concerns about liquidity and manipulation risks of the cryptocurrency market, Concannon wrote this letter asking the regular to avoid interfering in the process.

Cboe Dodges Sec, Recommends the Launch of Bitcoin Etf

Dalia Blass, Director of the Division of Investment Management, wrote in the letter, “Until the questions identified above can be addressed satisfactorily, we do not believe that it is appropriate for fund sponsors to initiate registration of funds that intend to invest substantially in cryptocurrency and related products.?

Concannon responded by saying, “As the volumes continue to grow, especially on regulated US markets, the overall spot Bitcoin market looks more and more like a traditional commodity market and CBOE continues to believe that the spot market is sufficiently liquid to support a Bitcoin ETP.?

He also talked about arbitrage opportunities in ETF, writing “CBOE believes that the arbitrage mechanism would function identically to other commodity-related ETPs… thereby keeping the price of the ETP in line with the price of Bitcoin and limiting the risk of manipulation shares of the ETP.?

While the SEC still isn’t convinced about the role of cryptocurrencies in traditional markets and their regulation, Concannon supported the statements made by regulatory experts in a recent congressional hearing. They stated that the current set of regulations are enough to manage some aspects of digital currencies.

He added, “While CBOE shares many of the concerns raised in the Staff Letter, we believe that the vast majority of these concerns can be addressed within the existing framework for commodity-related funds related to valuation, liquidity, custody, arbitrage, and manipulation.?

The SEC has launched dozens of probes into digital currency companies and issued subpoenas to several firms offering ICOs to investors. This week, the SEC has launched a fresh investigation into 100 hedge funds that have holdings in cryptocurrencies. The regulator wants to know whether the investors are aware that their money is being used in crypto markets or not. Financial advisors to private individuals and businesses could also come under the purview of this probe.

CBOE and its rival CME Group Inc. have already launched bitcoin futures contracts, overlooked by the CFTC. The SEC, however, has already denied dozens of proposals to start funds with bitcoin holdings or futures contracts. Four of these proposals were submitted by CBOE, including one for the Winklevoss Bitcoin Trust.…