By Harry B - Crypto Specialist - 20-07-2021
Regulatory authorities have been overly pressurising the well-known stablecoin investment, Tether (USDT). The investigatory bodies are moving their focus to the commercial paper reserve. Regulators have been keeping busy with trying to determine what constitutes the Tether reserves.
Janet Yellen, the US Treasury Secretary, leads the team of regulators with the latest stablecoin assignment. Reportedly, Yellen had been known to talk about the potential risks of investing in stablecoins. The "President's Working Group on Financial Market" is currently investigating whether Tether (USDT) truly has as many commercial papers as it says. Commercial papers are debt securities issued by firms to investors in exchange for short-term funding.
The Working Group, on the other hand, does not accept the promises, comparing it to a mutual fund that can lose all of its investment value in a single day. The total stock of Tether that is currently in circulation is at about $62 billion. As a result, there appears to be reasonable grounds for some to be concerned.
Tether published the makeup of its overall reserves two months ago. The stablecoin contained more securities other than cash or currency equivalents, such as bonds, secured loans, Bitcoin (BTC), and a more significant amount of commercial documents. On another note, current reports show that bullish crypto market investment, Bitcoin, soars above $40k.
However, on July 19, Yellen was heard requesting lawmakers to create rules that will govern the use of stablecoins in the financial sector. After pushing for rules on stablecoins, Yellen received a letter from Senator Elizabeth Warren just over a week later, requesting her to advocate for further regulation of the cryptocurrency trading industry as a whole.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards