Almost 200 crypto firms applied to register in the UK over the last year as global interest in bitcoin boomed

Almost 200 crypto firms applied to register in the UK over the last year as global interest in bitcoin boomed

Interest in bitcoin and cryptocurrencies has jumped in the UK Eric Gaillard/Reuters

The UK’s watchdog received 199 applications from crypto firms in the year to January.

Bitcoin took off at the end of 2020 and hit a record high of above $50,000 on Tuesday.

The UK regulator said firms must register with it to deal with money laundering.

Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Almost 200 cryptocurrency companies applied to register with the UK’s financial regulator over the 12 months, as interest in bitcoin and other digital tokens rose around the world, new figures have shown.

The UK’s Financial Conduct Authority said 199 firms - from Bitcoin ATM operators to online exchanges - had applied to register with it in the year to January after the watchdog tightened its supervision of the sector.

Bitcoin has rocketed in recent days after Elon Musk’s Tesla announced it had snapped up $1.5 billion of the digital currency. More recently, Mastercard and BNY Mellon said they would start offering customers the chance to use cryptocurrencies, adding to the legitimacy of digital coins.

The bitcoin price hit a record high of above $50,000 on Tuesday, taking year-to-date gains to around 70%.

A rise in interest in cryptocurrencies from amateur and professional investors has caught the attention of regulators.

In 2020, the UK’s Treasury said crypto firms had to register with the FCA by January 2021 to ensure they comply with money-laundering regulations.

Figures seen by Insider show that the FCA received 199 applications over the year to January, with the new rules coming into force from January 10. Applications came from big financial names such as Fidelity and Revolut, as well as smaller companies based in Oxford and Glasgow.

Jonathan Rowland, chief executive of London-based bitcoin banking app Mode, told Insider the figures were simply a reflection of the “ongoing adoption of bitcoin and the growth in the audience worldwide.”

He said the UK is “very well-positioned” to take advantage of the bitcoin boom, with high demand from consumers and increasing interest from companies.

Britain’s financial regulator has granted temporary approval to 102 of the companies that applied until July, meaning they can keep serving clients. It has so far officially approved 3 separate firms: Gemini, Archax and Ziglu.

The FCA has sounded warnings about bitcoin and cryptocurrencies, reminding potential buyers to be aware of their high volatility. Bitcoin fell below $4,000 in March 2020, and tumbled from above $19,000 in 2017 to below $3,500 just over a year later.

In January, the watchdog told consumers they could “lose all their money” due to the chance that bitcoin could plunge to next to zero.

Bitcoin Keeps Hitting New Highs as Crypto Mania Accelerates

TipRanks

Today, we’re looking at two small-cap biotech firms whose stocks have struck a rut. Each company has hit a recent clinical setback that sent the share price falling, erasing previous gains and sending it back down to low levels. Setbacks of this sort are not uncommon in the biotech industry, and in fact highlight the risk and speculative nature of the industry. So what should investors do, when a stock collapses? Is this a matter of poor fundamentals? And has the stock’s price found its low point yet? That’s where the Wall Street pros come in. Noting that each is set to take back off on an upward trajectory, some 5-star analysts see an attractive entry point for both. Using TipRanks’ database, we found out that these two tickers have earned Moderate or Strong Buy consensus ratings from the analyst community, and boast strong upside potential. Cortexyme, Inc. (CRTX) The first beaten-down name we’re looking at is Cortexyme, a clinical-stage biopharma company focused on degenerative diseases, especially Alzheimer’s. The company’s lead candidate is COR388, also called atuzaginstat. Atuzaginstat is currently under investigation in the GAIN trial, a study of its efficacy against Alzheimer’s disease. The trial is fully enrolled, with 643 patients, and the company was moving toward an open label enrollment (OLE) section of the Phase 2/3 study. During a routine regulatory update, Cortexyme announced that the OLE phase would be halted, although the primary GAIN study will continue, with results due to be released in Q4 2021. The announcement of the partial halt triggered a 35% drop in share price. The partial hold was prompted by adverse events on the liver during the atuzaginstat trial. The hepatic symptoms were reversible and showed no long-term lasting effects. The FDA reviewed these records, and in collaboration with Cortexyme the decision was made to hold the OLE while continuing with GAIN. This decision allows the main thrust of the program to continue, while working out a new protocol for the OLE. The purpose of the OLE is to test long-term efficacy and tolerability of the drug. In a review of Cortexyme after the announcement, HC Wainwright’s 5-star analyst Andrew Fein noted, “Cortexyme’s announcement of a partial clinical hold on the OLE study of atuzaginstat is disappointing, but the reversible nature of the liver toxicity might provide some ray of hope for Cortexyme. We believe that the pivotal trial’s continuation suggests that the drug-induced liver injury might not be severe enough to halt the program.” Turning to the near-term, Fein adds, “Continuation of the GAIN trial is encouraging despite the partial hold on OLE. It suggests that FDA plans to wait for the additional data from the pivotal trial before coming to any conclusion. Management shared that nearly one-third of the GAIN patients have completed the study and way past the 12-week time point, suggesting that they are out of risk.” To this end, Fein rates CRTX a Buy, and his $76 price target indicates confidence in a 147% growth potential. (To watch Fein’s track record, click here) Overall, Cortexyme has a Moderate Buy rating from the analyst consensus, with 6 recent reviews breaking down 4 to 1 to 1, Buy-Hold-Sell. The stock’s $83.60 average price target suggests that Wall Street sees a high potential here, on the order of ~170% upside from the trading price of $30.74. (See CRTX stock analysis on TipRanks) Immunovant (IMVT) Next up is Immunovant, a clinical stage biopharmaceutical research firm, focused on developing treatments for patients with autoimmune disorders, a class of diseases in which the immune system attacks the patient’s own body. The firm’s lead drug candidate, IMVT-1401, is undergoing trials as a treatment for thyroid eye disease, myasthenia gravis, and warm autoimmune hemolytic anemia. The drug described as “a novel, fully human anti-FcRn monoclonal antibody,” delivered by subcutaneous injection. On February 2, Immunovant’s stock plunged 42%, and it has been falling ever since. The precipitating factor was an announcement by the company that IMVT-1401 has had its Phase 2b clinical trial, for thyroid eye disease, halted temporarily, due to patients experiencing dangerous rises in their LDL levels. LDLs are the potentially harmful form of cholesterol, which have been connected to cardiovascular disease. Despite the clinical setback, Stiffel’s 5-star analyst Derek Archila reiterated a Buy rating on IMVT shares, along with a $28 price target. This figure suggests a 52% upside potential from current levels. (To watch Archila’s track record, click here) “Interestingly, increases have only been seen in TED patients, and our review of the literature suggests a few things: (1) it’s likely this is TED specific given the biology- see below for details, but we don’t think similar LDL increases will be seen in other indications outside TED; and (2) other anti-thyroid therapies used in Graves/TED also see similar increases in LDL, which end up being transient. We think IMVT-1401, in away, is replicating this mechanism," the analyst noted. Archila summed up, “While we will need to see additional data from the company to confirm… we don’t think this program is dead.” Overall, the Strong Buy analyst consensus view on IMVT would suggest that Wall Street generally agrees with Archila’s assessment. This rating is derived from 8 recent reviews, which include 7 Buys and only a single Hold. The average price target here stands at $40.38, implying ~121% upside for the next 12 months. (See IMVT stock analysis on TipRanks) To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Bitcoin surges past $51,000 for the first time ever amid crypto fever

Continuing the rally, Bitcoin jumped again on Wednesday to set another all-time high after breaching $50,000 for the first time a day earlier.

The largest cryptocurrency rose almost 6% Wednesday to about $51,431 after a fivefold surge in the past year, according to a composite of prices compiled by Bloomberg.

The latest leg of the rally, which comes even as India prepares to ban private cryptocurrencies, follows sustained interest from major global institutions.

Bitcoin’s rally for some is emblematic of speculative froth in financial markets awash with stimulus. The crypto faithful counter that the digital asset is grabbing more mainstream attention, especially after Tesla Inc.’s recent $1.5 billion purchase. MicroStrategy Inc. said Tuesday it would sell $600 million of convertible bonds and use the proceeds to buy more of the tokens.

MicroStrategy’s step is “a warning sign if there ever was one that things are getting out of hand in the crypto world,” Jeffrey Halley, a senior market analyst at Oanda Asia Pacific Pte, wrote in emailed comments.

Others take a different view, contending that demand from institutional investors and companies is set to expand, driving further gains.

“There are a number of reasons why Bitcoin is soaring, but what stands out most is the trend that MicroStrategy started and Tesla popularised: moving institutional balance sheets into Bitcoin to hedge against inflation," said Nicholas Pelecanos, head of trading at NEM.

Activity in Bitcoin futures suggests traders don’t see a sudden end to the crypto rally, with spreads continuing to widen between the active contract and March futures, according to data compiled by Bloomberg.

Shares of Asian crypto-linked companies are advancing too. Japan’s Monex Group Inc. jumped 11% to hit a 13-year high, while BC Technology Group Ltd. in Hong Kong closed at a record.

JPMorgan Chase & Co. strategists said Bitcoin’s volatility needs to ease to prevent its rally from fizzling. Other commentators see a mania likely to end in a bust akin to the implosion in 2017.

Bitcoin has been barreling through records, scaling another peak above $51,000 on Wednesday. Tesla Inc.’s recent $1.5 billion purchase and MicroStrategy Inc.’s plan to expand its holdings of the token by selling $600 million in convertible bonds added to the buzz around cryptocurrencies. On the flip side, some see a mania likely to end in a bust akin to the implosion in 2017.

Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.

Share Via