Moody's: Regulatory crackdown is good news for Bitcoin futures

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The widespread and international crackdown on crypto-currencies will be a boon for digital currency futures providers, according to Moody’s, the ratings agency.

Moody’s singled out CME Group and Cboe Global Markets, specifically, as futures providers in a prime position to gain from the Bitcoin market.

The ratings agency has a triple A (stable) rating for CME, the American financial market firm, and BAA1 (positive) rating for CBOE (Chicago Board Options Exchange), the world’s leading options exchange.

Credit positive
Fadi Abdel Massih, an analyst at Moody’s Investor Services, said: “Improved oversight of spot cryptocurrency exchanges would be credit positive for CME Group and Cboe Global Markets, which offer futures products associated with these exchanges.

“Because they [CME and Cboe] would be exposed to reputational risks from being indirectly associated with significant fraud or other abnormalities that may occur in the spot exchanges.”

Moody’s comments come on the back of a wave of regulatory measures against crypto-currencies, with China and South Korea (one of the market leaders for Bitcoin), implementing particularly tough measures. China last month outlawed trading in the Bitcoin currency altogether.

In the latest such measure, Hong Kong’s Securities and Futures Commission said that it has taken regulatory steps against crypto-currency exchanges and issuers for failing to adequately comply with its rules.

Author spotlight

Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.

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