• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
Buy Neo Pepe
No Result
View All Result
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
  • 200 FREESPINS
Breaking News: Tether Announces Strategic Partnership To Combat Stablecoin Misuse
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
  • 200 FREESPINS
Bitcoinist.com
No Result
View All Result
Breaking News: Tether Announces Strategic Partnership To Combat Stablecoin Misuse

OKEx Clawback Debacle Helps Case for a Regulated Bitcoin ETF

Ian Tozer
by Ian Tozer
6 years ago
·
Posted in Bitcoin Investment, Bitcoin, News, News teaser, Op-Ed
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

The OKEx debacle shows us that exchanges are dropping the ball when it comes to preventative risk management, helping the case for regulated Bitcoin futures and exchange-traded funds (ETF). 


Ask for forgiveness later, not permission now. This seems the defining mantra for most cryptocurrency exchanges. Hong Kong-based Bitcoin exchange, OKEx, is no exception to the rule.
On August 3rd, the company’s failure to manage a $416 million trade, led to a $9 million clawback. They activated their ‘societal loss risk management mechanism.’ Which means they used users’ trading profits to mitigate the loss.
The problem with OKEx stems from their laissez-faire risk management. According to the OKEx statement, the risk management team contacted the client “immediately.” Yet, exchange risk management needs to be preventative, not reactive. Whilst the trade should be easy to fix, it highlights an issue with the crypto community. Overlooking risk management in the rush to make money.

BRIGHT FUTURE FOR FUTURES

This could play well into the hands of CME and CBOE who launched Bitcoin future contracts markets in late 2017. Futures trading has continued to grow since.
Bitcoin ETF CBOE Announces Increased Bitcoin Futures Margins Amid Market Manipulation Worries
Both of these Chicago based Futures Exchanges are diligent and experienced. Past CME product development staff, are already singing praises. Though Bitcoin futures are still in the early stages, CME or CBOE will likely not make such basic errors.
“From my experience, they would not have missed anything this simple,” columnist Peter Tchir wrote in Forbes.
CBOE’s VanEck/SolidX proposal has already generated serious buzz among investors. In particular, because it’s settled in actual bitcoin. But, now given OKEx’s flop, the spotlight is on CME/CBOE to show their strengths.

THE SEC IS WARMING

The timing of the OKEx clawback is particularly beneficial to CME and CBOE as the SEC is warming to cryptocurrency. In particular, SEC Commissioner, Hester Peirce is pro-Bitcoin ETF and is one of four commissions responsible for the fate of the Bitcoin ETF.
As Bitcoinist reported last week, Peirce published her dissent to the SEC’s most recent rejection. According to Peirce, the SEC went beyond its jurisdiction. She added that the commission has “no reason” not to go ahead with the Bitcoin ETF, stating:
By [looking at the underlying asset Bitcoin], they went beyond what the statute allows us to do. We should have focused on the market where the exchange-traded product would trade as opposed to focusing on the underlying Bitcoin markets.

OPPORTUNITY FOR U.S. FUTURES

News that at least one SEC commissioner is on board with Crypto is encouraging. It means things could be shaping up for CME and CBOE if they live up to their reputation.
On regulation, a former CME employee commented:
I am sure that regulators will be questioning them on the back of the OKEX, as they should, and I am also quite positive the exchanges here will pass with flying colors.
And in a note of optimism, he said:
If anything, this should drive business to the best regulated and largest exchanges.
Clearer regulations and reduced volatility are good. It increases the likelihood of mainstream investment. If there is one thing we can learn from the OKeX debacle, is that it market manipulation is the problem.
Cryptocurrency fundamentals are fine, and it’s not the responsibility of the SEC to scrutinize. The SEC needs to look at the ETF product itself and the market where it will trade, rather analyzing Bitcoin and its markets.
The decision for CBOE’s VanEck/SolidX proposal is scheduled for August 10th, though an extension into 2019 is likely.

Do CME and CBOE stand to gain from increased regulatory scrutiny? 


Image courtesy of Shutterstock

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Ian Tozer

Ian Tozer

Follow

Full Profile

Related Posts

Bitcoin

Bitcoin Is The ‘Manhattan’ Of The Digital Age, Says Scaramucci–Here’s Why

13 hours ago
Bitcoin

Bitcoin Soared—But Mainstream News Was Missing In Action, Study Reveals

1 day ago
Bitcoin

Analyst Predicts Bitcoin Price Breakdown — Here’s The Best Time To Buy

2 days ago
Metaplanet

Metaplanet Moves On Digital Bank Acquisition As It Scales Bitcoin Strategy

3 days ago
Will 600K Bitcoin Be The Tipping Point? Saylor’s Strategy Sparks Institutional Wave

Will 600K Bitcoin Be The Tipping Point? Saylor’s Strategy Sparks Institutional Wave

4 days ago
Bitcoin

Corporate Bitcoin Craze: 54 Companies Dump $500M Into BTC Treasuries

4 days ago
Please login to join discussion

Premium Sponsors

Press Releases

  • Earn $3,300 a day – Start a Dogecoin Miner Using...

    4 hours ago
  • Make $6,870 a day? You can also easily achieve the profit...

    4 hours ago
  • ETHRANSACTION Cloud Mining: Let Dogecoin truly “win...

    9 hours ago
  • How to Invest $100K? Top Secure Crypto Mining Platforms in...

    11 hours ago
  • mining

    AIXA Miner’s Advanced AI Cloud Mining Solutions Help...

    12 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Buy Neo Pepe

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
  • 200 FREESPINS
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.