Retail CRYPTO BANS Are Here! What It Could Mean For YOU!

Recently the ontario securities and Exchange commission set an annual limit On how much regular canadians living in The province can invest in altcoins Although this annual limit is not a Federal law it is part of a growing Trend to restrict retail investors from Cryptocurrency both in canada and Elsewhere today i’m going to tell you Why so many countries are starting to Make it difficult for retail investors To access cryptocurrency and what Effects this could have on the crypto Market Now i want to start by taking you back In time to the 1920s it’s after the First world war and the economies of Allied countries are booming In the united states the stock market is Roaring to all-time highs and millions Of americans are investing their life Savings into stocks with many of them Borrowing to invest even more Fast forward to 1929 the economy is suddenly not looking So good and the amount of debt that’s Been taken on by speculators has hit Record highs but the stock market keeps Pumping so it’s totally fine Suddenly the stock market begins to dip And everyone who took on excessive Leverage begins to sell fearing that They wouldn’t have enough to pay back All their debts

By october the stock market is in free Fall with a famous four-day flash crash Bringing the dow jones down by a Staggering 30 per cent Over the next two years the stock market Goes on to fall by another 80 percent Bringing the dow jones to a low of 900 Points a far cry from its high of nearly 6 000 points Naturally the people in power blame the Average person for the stock market Implosion and the u.s government Subsequently establishes the securities And exchange commission or sec in 1934 To make sure another stock market crash Of that magnitude never happens again Upon its creation the sec was tasked With three specific things protect Investors facilitate capital formation And maintain fair orderly and efficient Markets you’ll know this if you’ve ever Watched current sec chairman gary Gensler speak more about what that looks Like in the description to that end the Sec set a series of regulations that Made it very difficult for regular Investors to get access to high risk Investments such as real estate Crowdfunding equity crowdfunding aka Investing in stocks before they list Hedge funds and any form of venture Capital aka early company investing As some of you will know only so-called Accredited investors are allowed to

Invest in these high-risk vehicles and As far as i understand this has been the Case in the united states since 1933 When the securities act was passed as Part of the sec’s formation Today almost every country has specific Criteria for what counts as an Accredited investor In the united states you need to either Make more than 200 grand per year have a Net worth of more than one million Dollars excluding your primary residence Or be an executive in a company that’s Selling its equity Fun fact there is actually no test to Become an accredited investor at least Not in the united states Your status as an accredited investor is Determined on a case-by-case basis by The company that’s offering the asset You’re trying to invest in be it a hedge Fund or otherwise Now as all of you will know there’s no Risk without reward hence why this Accredited investor scheme has been Heavily criticized Besides the fact that wealth isn’t the Best measure of knowledge or Intelligence the fact that these Opportunities are only afforded to the Rich means they only get richer Take a second to consider that many Accredited investors have made hundred x Gains on regular stocks because they

Were able to buy before they listed Never mind the multiple thousand x gains That vcs have made on many Cryptocurrencies by buying before they Were readily available Meanwhile retail investors are lucky to Get the estimated average of 10 Per year on stocks which is barely Enough to hedge against official Inflation figures never mind that the Unofficial inflation figures suggest That it’s twice as bad as it’s being Made out to be by politicians and the Mainstream media So now that you know about the history Of retail investors and accredited Investors it’s time to jump back in the Time machine and turn the clock back From today by about two and a half years It’s the beginning of the pandemic and Nobody knows whether it’s the return of The black death or just another flu The scale of the uncertainty is causing Stock markets to tank and the urgency is Forcing elected officials to shut Everything down out of caution To ensure that the economy doesn’t Completely implode central banks drop Interest rates to zero and governments Start sending out stimmy checks Around the world millions of people Suddenly find themselves sitting on more Money than they had expected mainly Because there isn’t really anything they

Can spend their money on besides food And rent assuming their rent payments Aren’t paused which was apparently the Case in many places after binge watching Netflix and completing every video game That’s worth the effort millions of People start to wonder what they can do Next and notice that the stock market is Rapidly recovering and so they download An app like robinhood and start reading About investing on reddit Fast forward to 2021 the number of Robinhood users has more than doubled to Over 20 million the wall street bet Subreddit has ballooned to over 10 Million members and retail investors Make up more than 30 percent of the Quarterly trading volume in the us stock Market a record high Realizing that high risk is the only way To get a high reward millions of newly Created retail investors start shoving Their stimi checks and savings into Cryptocurrencies volatile commodities And tech stocks with extreme leverage As in the 1920s many of them go into Debt to invest even more Then the retail investors realize Something if they coordinate their Collective investments they can create The kind of volatility that’s required For massive returns and so the so-called Retail apes pick a target melvin capital A hedge fund that’s aggressively

Shorting gamestop a video game retailer Now for some context shorting a stock Typically involves borrowing it from a Stock broker and immediately selling it On the open market while promising to Buy back and return the shares at some Future date The assumption is that the stock will be Cheaper at that future date and the Difference becomes profit What retail investors did in january 2021 was collectively buy gamestop stock So that its price went up this forced Melvin capital into a short squeeze Forcing the hedge fund to buy back the Stock at a loss worth billions of Dollars which caused gme to pump even More As it happens melvin capital announced In may this year that it was going out Of business citing the meme stock short Squeeze as the main reason As almost all of you will know gme Wasn’t the only time that this Collective investment strategy was tried There were attempts to pump other stocks Like tesla precious metals like silver And yes cryptocurrencies like dogecoin Those who were able to ride the waves of Volatility became incredibly wealthy and Most of the rest got wrecked Now there is definitely a discussion to Be had about this practice but i reckon It’s one of the only ways that retail

Investors can create the same risk Reward dynamic afforded to accredited Investors What’s crazy is that most of these Campaigns were successful and collective Action by retail investors continues to This day A great example is celsius’s cell token Which has seen multiple short squeezes Since the crypto platform went bankrupt You can find out what happened there and What comes next for celsius users by Clicking the link in the description Now it’s safe to say that the people in Power weren’t happy about the gamestop Saga i mean it basically marked the First time that retail investors were Able to extract billions of dollars from The accredited investors historically It’s happened the other way around This is arguably the real reason why Robin hood went as far as blocking the Purchase of meme stocks to prevent more Collective investment from moving the Market something that came as a huge Surprise to its users and isn’t really In keeping with what the platform calls Itself is it What’s not that surprising is that one Of the most popular members of the wall Street bet subreddit was subsequently Sued for allegedly coordinating the Manipulation of game stock stock causing Quote huge losses for select investors i

Think you can guess who one of those Select investors was Luckily it seems the lawsuit was Dismissed the following month but this Fellow was still hit with a four million Dollar fine for failing to disclose his Gamestop trades to his previous employer A fine which was reportedly paid by his Insurance company The real trouble however came in april 2021 after gary gensler was made Chairman of the sec If you watched our video about gary in The sec you might recall that the first Thing he did was announce that he would Be going after robin hood and other Retail trading platforms Specifically gary said the sec would be Going after the practice of payment for Order flow which i won’t get into here For the sake of time but feel free to Watch my video from last year which Breaks it down into detail for you top Left Anyways a couple of months ago gary Reiterated the sec’s intentions to crack Down on payment for order flow and According to crypto policy analyst jake Chavinsky the sec is likely to take a Lot of enforcement actions near the end Of september as its fiscal year comes to A close given that it has historically Done this in europe meanwhile Politicians are pushing an outright ban

On payment for order flow and it seems There’s only one thing holding them and The sec back public opinion The average retail investor would Probably rather not see their favorite Stock trading platform go down the Toilet this is especially true because It seems that most retail investors are Still heavily invested According to a recent press release by Trading platform etoro only eight Percent of retail investors sold when The crypto and stock markets crashed in May and june 64 Continued to huddle and 28 Bought the dip wild Now while etoro is just one trading Platform i reckon it’s reasonable to Assume that it’s a similar story on Others especially since another analysis By the wall street journal recently Found that retail investors continue to Pour record amounts of money into the Market This is believed to be because retail Investors can see that the markets Quickly recovered after all recent Crashes and many of them are still in The green overall due to the Appreciation of house prices and other Assets they own In other words retail investors haven’t Capitulated

Yet That last word is key because it Suggests that the stock market is headed Lower and all the bearish macro factors Certainly suggest this is the case So Riddle me this what happens when the Stock market crashes by another 20 maybe Even 30 percent while all other assets Where the middle class store their Wealth like houses and cars start to Crash too That’s right you’re going to have lots Of retail investors demanding regulation And retribution If you need any evidence of this order Of events look no further than the Crypto market Since the crypto market crash in may We’ve seen no shortage of lawsuits Alleging that certain cryptocurrencies Are securities that certain exchanges Engaged in market manipulation And other such shenanigans More importantly we’ve seen countries Around the world announce that they’re Going to start clamping down on crypto Or to use their words quote protect Investors which is of course code for Preventing retail investors from Accessing certain coins tokens and Investment vehicles The first country to restrict retail Access to cryptocurrency was actually

The united kingdom in october 2020 when Our fabulous financial conduct authority Or fca Banned the sale of crypto derivatives to Retail consumers this included stuff Like futures options and even etns which Are like etfs For reference derivatives allow retail Investors to take on the same kind of Risks that accredited investors Regularly take but it also adds a lot of Volatility to the crypto market when Over leveraged long or short traders are Liquidated more about that in the Description I digress In 2021 we saw hong kong regulators Propose banning retail investors from The crypto market and a few months later China began its latest crypto crackdown Which likely affected most retail Investors and likely left many wealthy Aka accredited investors Unscathed Following the crypto market crash that Was caused by china’s crackdown we saw Regulators increase their scrutiny of The crypto industry by forcing kyc on Exchanges banning tokens pegged to Stocks restricting derivatives trading And presumably pushing exchanges to Reduce the leverage they offer Following the crypto market crash this Year that was caused by terra’s collapse

We saw regulators return with the same Scrutiny with dutch authorities calling For crypto derivatives to be restricted To accredited investors and australian Banks saying they will not quote endorse Retail speculation In south korea regulators announced they Would be cracking down on crypto Exchanges because of terror’s collapse Terra was from south korea And regulators in thailand demanding That crypto exchanges d-list meme coins Nfts and social tokens More recently singapore announced it Wants to limit retail crypto investment And as i mentioned in the introduction In canada the ontario sec set an annual Limit of 30 000 canadian dollars on Altcoin investments for citizens of the Province which presumably excludes Accredited investors I’ll reiterate that most if not all These restrictions are being encouraged If not outright called for by Disgruntled cryptocurrency investors and I’ll caution that it’s more than likely That we’re going to see the crypto Market go much lower later this year Along with the stock market When this inevitably happens you can bet That there will be even more calls for Crypto regulation and retribution most Of which will inevitably result in Retail investors like you and me having

Even less access to cryptocurrencies and All the different ways you can trade Them What’s even more concerning is that this Will make it that much more difficult For new crypto projects to get off the Ground since they’ll be more exclusive To accredited investors than ever before Not only that but it will be even more Difficult for quality crypto projects to Be created because all of them will have Massive pre-mines with most of the Supply going to vcs and early investors In short cutting retail investors out of The crypto market could do serious Damage to the potential of the entire Industry and this begs the question of Where this push to remove retail Investors is coming from and what you Can do to keep your head in the game for As long as possible If you watched our video about the top 10 crypto partnerships from last year You might recall that new york digital Investment group or nydig and the National cash register or ncr entered a Partnership to make it possible for Commercial banks in the u.s to offer Cryptocurrency investing and trading This partnership happened because Commercial banks could see that billions Of dollars were flowing from their Balance sheets into cryptocurrency Exchanges something they aren’t happy

About because playing with the money You’ve deposited in the bank is how Commercial banks make their money Commercial banks thought that offering Cryptocurrency investing and trading In-house would bring back most if not All the money that had fled from their Balance sheets to coinbase robin hood And others and at first glance this Strategy makes sense Upon closer inspection there’s a problem Though and that’s that commercial banks Can’t offer mid cap and small cap Altcoins for regulatory reasons By now you should know that volatile Altcoins are ultimately what attracts Retail investors to coinbase and Robinhood they aren’t there for btc and Eth Case in point dogecoin trading accounted For a whopping 40 Of robin hood’s cryptocurrency revenue In the third quarter of last year and Almost 70 percent of trading volume on Coinbase was related to altcoins in the Fourth quarter of last year And never mind all the billions flowing Into stable coins So another question for you what happens When your top competitors are offering a Product that you can’t possibly hope to Offer That’s right you throw your toys out the Pram go crying to the regulators and

Rile up disgruntled retail investors by Paying for mainstream media articles About how horrible cryptocurrency is That’s why i don’t think it’s a Coincidence that the sec is targeting Altcoins and cryptocurrency exchanges Offering said altcoins Come to think of it the real reason why The sec went after xrp could have simply Been because it was one of the most Traded cryptocurrencies Now in case you didn’t put two and two Together restricting retail investors From accessing altcoins and forcing Cryptocurrency exchanges to de-list Altcoins is exactly how you drain the Cryptocurrency exchanges dry it’s the Only source of revenue that the Commercial banks can’t compete with As i mentioned a few moments ago it also Has the convenient side effect of Stunting crypto’s growth and adoption And i suspect that the few coins and Tokens which survive the scourge will be Those that accredited investors and wall Street love the most i think you know Which ones i’m talking about As far as i can tell the only defense Against this will be to stick to truly Decentralized finance which will Continue to be accessible through Various bridges and smart contract Cryptocurrency coins assuming the people In power don’t take control of the proof

Of stake blockchains these d5 protocols Live on And don’t even get me started about how The financial action task force or fat f Wants to eventually make it impossible For you to withdraw any crypto by Labeling such activities as high risk If you ask me the real question is Whether regulators will go as far as Restricting retail access to other Investments such as stocks history Suggests that they will do exactly that If the market crash is bad enough and The sec is reportedly planning on Changing the definition of a credited Investor already One thing’s for sure and that’s that the People in power want to make sure that Retail investors can’t collectively pump Stocks to the detriment of accredited Investors ever again Never mind that it could become a form Of protest quite soon since financial Loss is the only language they Understand For what it’s worth we’re unlikely to See a full-on retail trading ban and That’s simply because the world economic Forum wants retail investors to put Their stimis savings and loans into esg Which is really just the united nations Dystopian 2030 sustainable development Goals in disguise You can learn more about the dangers of

Esg using the link in the description And that’s all for today’s video about The incoming restrictions on retail Cryptocurrency trading and investing if You found it as concerning as i did be Sure to share it with your fellow crypto Holders If you want to help others find it here On youtube smash that like button If you want to make sure you don’t miss The next one subscribe to the channel And ping that notification bell If you want more from me you can head on Over to our second channel called coin Bureau eclipse for live streams and Other jolly japes and tune in to the Coin bureau podcast for in-depth crypto Discussions and analyses You can also find me on twitter tiktok And instagram and get your daily dose of Crypto updates on telegram If you want to know what cryptos i hold As part of my portfolio you can find out By subscribing to my weekly newsletter Where i also give you my predictions on Whether the crypto market will pump or Dump And if you want to support the channel Head on over to the coin bureau merch Store and get yourself some stylish Crypto swag that will make the no Coiners scream Links to these resources and more are Down below in the description thank you

All so much for watching and i will see You next time till then stay cool stay Safe and Stay crypto [Music]