Goldman Sachs ‘ditches plans for bitcoin trading desk’
Written by Hannah McGrath
Goldman Sachs is reportedly ditching plans to open a trading desk for cryptocurrencies due to uncertainty over the regulatory framework surrounding cryptocurrencies.
Executives at the US investment bank have concluded that many steps are still yet to be taken by governments and regulatory authorities before a regulated bank would be allowed to trade cryptocurrencies, according to the Business Insider website, citing sources familiar with the matter.
Goldman Sachs had planned to clear bitcoin futures for some clients as the value of the digital currency rocketed to a record high of $16,000 in December.
However, bitcoin and other cryptos have come under scrutiny from regulators wary of the regulatory implications of initial coin offerings (ICOs) and crypto exchanges.
A spokesman for Goldman Sachs declined to confirm the reports but issued the following statement: “In response to client interest in various digital products, we are exploring how best to serve them in the space.
He added: “At this point, we have not reached a conclusion on the scope of our digital asset offering.”
The value of bitcoin feel by around five per cent to below $7,000 following the report.
In June, Sam Wood, deputy governor at The Prudential Regulation Authority wrote to chief executives of banks, insurance companies and investment firms to warn them about their obligations regarding exposure to crypto-assets.
Despite perceptions to the contrary, research published in July revealed that 88 per cent of crypto exchanges want to see industry regulation.