Waking up and cracking down

Author: Amélie Labbé, John Crabb, Karry Lai | Published: 5 Mar 2018

Regulators are getting wise to cryptocurrencies

The market capitalisation of bitcoin, arguably the world's most well-known digital currency, reached over $300 billion at the end of 2017 after years of hovering around the $1billion mark. But in the same way the value of bitcoin has grown significantly, so has financial regulators' interest in addressing the unprecedented growth of, and investment in, this new market.

Cryptocurrencies are still a small segment relative to the global financial market but they are growing very fast.

"Volumes are still small on a relative basis: we are seeing between 7,000 and 8,000 futures contracts a day for some cryptocurrencies, a bit less for bitcoin," says Cboe’s managing director, business development, Michael Mollet, speaking about progress since they launched in December. "But for a new product to trade that kind of volume right out of the gate is great."