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    Two and twenty is long dead. Hedge fund fees fall further below onetime industry standard

    Justin Chin | Bloomberg | Getty Images(Click here to subscribe to the new Delivering Alpha newsletter.)A previously unknown hedge fund known as White Square gripped the headlines last week after the Financial Times reported it to be the first-known casualty among those who shorted GameStop. But betting against GameStop wasn’t the death knell for White Square. In fact, its performance had recently rebounded. As White Square tells it in the letter announcing the firm’s closure: “We experienced first-hand, the shift in trend away from hedge fund investing to cheaper alternatives.” The firm noted that two investors redeemed and rediverted that capital into cheaper passive funds or private equity. White Square isn’t the first, and most certainly won’t be the last, hedge fund that fails to convince investors to pay up for its asset management. But fees are as inextricable to the hedge fund industry as short selling and leverage. The earliest-known hedge fund, developed by A.W. Jones more than 70 years ago, charged investors a 20% fee from realized gains, a novelty at the time. A management fee, amounting to 2% of total assets, was added later, popularizing the 2-and-20 structure. In recent years, average fees have shrunk. According to HFR, in the fourth quarter of 2020, hedge funds charged an average of a 1.4% management fee and 16.4% performance fee. That’s down from the 1.6% management fee and 19% performance fee that was commonplace a decade prior. Zoom In IconArrows pointing outwardsHowever, a recent Ohio State University study looks at what it calls the “effective incentive fee,” which the researchers say is closer to 50%, not the nominal 20%, as is frequently advertised. When factoring variables such as exit decisions and losers in the cross section of funds, the researchers found that limited partners in hedge funds are actually giving far more in fees as a percentage of profit. For example, if capital is redeemed from a fund experiencing losses — but one that previously generated returns and collected incentive fees — the payout to general partners as a percentage of the gross profit would be lower, the study shows. After subtracting management fees, the study concluded that limited partners were only taking home 36 cents for every dollar earned on their invested capital. Christopher Ailman, chief investment officer of the second-largest U.S. public pension fund, CalSTRS, said he believes the fee structure is “broken.” Instead of paying the conventional price for hedge fund access, he’s opting to replicate hedge funds through cheaper, passive strategies. “It’s all about the structure and the net return for us as a long-term institutional investor,” Ailman said. “And if I can get the beta of each of those underlying asset classes at a very low cost, that’s my core foundation.”For all the lamenting over hedge fund fees — a notorious complaint that dates back decades — there are still plenty of investors willing to buy in. Assets under management are near an estimated record of $3.8 trillion, according to HFR.Zoom In IconArrows pointing outwards “Hedge funds aren’t for everyone,” said Bryan Corbett, president and CEO of the Managed Futures Association, the trade group that advocates in Washington and elsewhere for the alternative investment industry. “But clearly there’s a significant portion of allocators that see it as an important part of the mix.” Corbett said that the way most agreements are structured allows for alignment between the allocator and the hedge fund (i.e. incentive fees). MFA launched an “education campaign” last week, touting the “important role hedge funds play” for Americans. It argues that pension funds, colleges and nonprofits invest in hedge funds as a way to grow wealth and protect it. Public perception of hedge funds is about as sour as it’s ever been in the wake of the GameStop short squeeze, where the industry faced myriad individual investors, looking to force significant losses among those who were bearish. “I’m not surprised to see all the young people want to take an ounce of flesh out of the hedge fund industry,” Ailman said. “I don’t think it’s going to get rid of hedge funds. But I do think that, you know, this actually is a really interesting change that we’re seeing.”  Enjoyed this article?For exclusive stock picks, investment ideas and CNBC global livestreamSign up for CNBC ProStart your free trial now More

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    UBS to let two-thirds of employees combine working from home with the office

    In this articleUBSG-CHFABRICE COFFRINI | AFP | Getty ImagesUBS is planning to let up to two-thirds of its employees permanently combine working remotely with being in the office, in stark contrast to some Wall Street banks. A spokesperson for the Swiss investment bank said it was “committed to offering our employees the flexibility for hybrid working (a mix of working from the office and from home) where role, tasks and location allow.” “Hybrid work options will be introduced on a country-by-country basis, with timing dependent on the local pandemic situation,” they said. UBS hopes the flexibility will boost its attractiveness as an employer in the banking sector. It has not yet set a date for employees’ return to the office. Only UBS workers in roles which require them to be in the office, such as those in supervisory positions, or in trading and branch roles, will have less flexibility, the bank said. However, an internal analysis of the 72,000 UBS employees globally showed that around two-thirds are in roles that would allow them to combine working remotely and in the office.  The Swiss bank’s approach stands in contrast to some of the major Wall Street banks. Goldman Sachs, for example, asked its employees in the U.S. and U.K. to come back into the office this month. Goldman Sachs CEO David Solomon has previously called working from home an “aberration.” JPMorgan Chase also told its U.S. workers that it was aiming to get half of employees rotating through the office by July. JPMorgan CEO Jamie Dimon has said he believes that by “sometime in September, October it will look just like it did before.” Morgan Stanley CEO James Gorman has also been outspoken on the matter. “If you can go into a restaurant in New York City, you can come into the office and we want you in the office,” Gorman reportedly said. More

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    Head of the second-largest U.S. public pension fund says active managers rarely added value

    (Click here to subscribe to the new Delivering Alpha newsletter.)The hedge fund model has been under attack for decades, at least since the financial crisis, but assets under management continue to surpass records. Christopher Ailman oversees the nation’s second-largest public pension fund, CalSTRS, with $300 billion under management. Here he is, in conversation with Leslie Picker, on the high price of delivering alpha. The content below has been edited for length and clarity.Leslie Picker: Chris, I want to ask you point blank, in your estimation, do active managers deliver alpha?Christopher Ailman: I have been hiring active managers since the mid-1980s, and at very different funds. Now, they were all government plans so that may be a caveat I have to add. Our active managers in U.S. equities added value, and they did produce alpha, but not after fees. And that’s the critical point. I think alpha is expensive, it’s hard to find, but they price it too high. And so the net even over a year, three years, five years, even a 10-year time period, we seldom saw managers consistently add value net of fees.Picker: So, if hedge funds were to lower their fees, how low would they have to go to entice you to put more money to work in that area?Ailman: Well, I’ve said a long time ago that I think the 2-and-20 model in private equity real estate and in hedge funds is broken. And for a fund like us that’s that size, we’re not paying that classic 2-and-20. So that’s part of the key. And I’m a fan of profit-sharing, I think that an incentive for the manager and sharing in the profits makes sense. The problem is, it’s always one way. They share on the upside, they don’t get hit on the downside. And we haven’t figured out a way to create a good plan for that. Picker: Why is it that the industry hasn’t gotten as much of a pushback on the 2-and-20 model? Why is it that you seem to be having kind of a more contrarian viewpoint on that front? I’m sure people don’t like paying the 2-and-20, but they continue to do so. Ailman: I have to say, No. 1, good marketing, but it’s also the cool place to invest. People love the idea of being in a hedge fund because it sounds mysterious and awesome. Hedge funds did really well in the late 90s because they diversified away from TMT, they did well going into ’07, but the best performers were the smallest funds that could add value. When you’re a huge investor like us, we’re going to swamp their AUM and cause them to really be investing in more strategies than they want. So I think that the assets are going to continue to grow for this area. One, because it’s an interesting place to invest, it sells, it has a good sales pitch. That doesn’t mean it’s going to produce long-term sustainable results. Picker: I want to pivot a little bit and talk to you about what the hedge fund industry has experienced this year. I mean, they were the disruptors of Wall Street three decades ago. And now, they’re really playing defense to a crop of new disruptors from retail traders, who don’t charge 2-and-20. They’re able to take as much risk as they want, because they’re only worried about their own capital, they don’t have to worry about losing CalSTRS’ capital or family offices’ capital. Do you think this will mark changes for the hedge fund industry? Are we going to look back and say this was where the sea change happened?Ailman: The answer is yes, Leslie. I think for a really brief period of time, the hedge fund industry was viewed as cool and those people were awesome. They just got tarnished, and they are despised. I’m not surprised to see all the young people want to take an ounce of flesh out of the hedge fund industry. People in their 20s and under don’t like the establishment. I was in the baby boom, we didn’t like the establishment, now we are the establishment. So I don’t think it’s going to get rid of hedge funds. But I do think that, you know, this actually a really interesting change that we’re seeing. You said it, their transaction cost is zero. They’re able to trade stocks at no cost. They’re able to do it on their phone, anywhere they are. So the efficiency and the efficacy of what they’re doing is so fast. Now, they are speculating and they are just rapid trading, so they’re not investing. But some of the different apps that have been created to force this generation to save, I think that’s huge. In prior generations, people didn’t begin to look to invest until their 40s or 50s. You’ve got an entire generation that is now saving for the first time. And yeah, they’re speculating, they’re investing in cryptocurrencies. Speculation by itself is not good and they’re going to learn some hard lessons, but they’re starting to save and that’s enormous. Now, if they can figure out how to do it for the long term and get compounding of interest, they’re going to really be a bit better off as a generation.Picker: There have been some people who’ve said that the speculative activity out there has been disruptive, and it has impacted confidence in the overall market. So do you think that this type of behavior needs to be regulated? Ailman: I would say no, not at all. The market’s going to self-correct. We saw that in the 1990s with media, telecom and technology stocks. You can go all the way back to the Dutch tulip craze in the [1600s]. You see periods of rampant speculation, exorbitant prices, ridiculous prices, the markets correct and it comes back, people learn a hard lesson. Maybe there needs to be some regulation over these communication networks and this sort of, what was clearly a crowd, herd mentality that seems to go on when you have daily trading that are five times the amount of the float of a stock. Short squeezes have been in the market all the way back to the 1930s and ’20s. So it’s a natural part of the market. This is unusual, it’s disruptive to, I’ll just say, mature people like me who like a stable market, but it’s not bad. It’s getting that young crowd engaged and active, and learning the risk tolerance. — CNBC’s Ritika Shah contributed to this article.Correction: The Dutch tulip craze happened in the 1600s. An earlier version misstated the time period. More

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    Here are 5 ways to spend money that can actually make you happier

    Patrik Giardino | Stone | Getty ImagesIt’s no surprise that Americans are ready to start spending as the Covid pandemic eases.After being cooped up for a year, people are opening their wallets for anything from dining out to shopping for merchandise and vacations.But will your buying spree bring you joy?It depends, said researcher Elizabeth Dunn, PhD, chief science officer for financial technology firm Happy Money and author of “Happy Money: The Science of Happier Spending.”As her book suggests, Dunn conducts research on spending and happiness. Everyone’s needs are different, so she first advises you identify what purchases are making you happy, and which ones are not. It’s also a good time to look back on what you discovered you could live without during the pandemic.”So much of our spending is habitual,” said Dunn, who is also a professor in the Department of Psychology at the University of British Columbia.”I run to the coffee shop and buy a latte because that’s what I did yesterday,” she added. “We can stop and think, is this actually making me happy?”She also cautions about retail therapy — the idea that spending money on something material will help you feel better.It could give you an immediate boost, but it may not be long-lasting, Dunn explained.”Buying a lot of material things just doesn’t seem to deliver much in the way of lasting happiness compared to some of these other purchases that we might make,” she said.Over a third of Americans engage in retail therapy, a new survey from U.S. News & World Report found. Of those who do, about 34% said they do it frequently and almost 51% said they don’t have a budget.If you have the money in your budget and you are looking to find joy when making purchases, here are five ways to do it.Buy experiencesResearch shows that people tend to get more happiness out of buying experiences rather than material things, Dunn said.”Experiences tend to be more tightly connected to our sense of self,” she explained.”People feel that their experiential purchases contribute more to their life stories, are more unique to them.”More from Invest in You:Before you start post-pandemic spending, make these money moves7 ways to save money on travel this summerAs ‘buy now, pay later’ apps become more popular, be cautiousThey are also less likely to exhibit buyer’s remorse because experiences are relatively difficult to compare, whereas material things are easy to compare.Plus, experiences tend to bring people together.”Coming out of the pandemic, but also all the time, because we’re human, when we are able to build and reinforce our connections with other people, that’s a really important source of happiness,” said Dunn.Make it a treatSolStock | Moment | Getty ImagesWe get used to the things we have all the time, but when they’re a treat, they tend to bring more happiness.In one of Dunn’s studies, participants were given chocolate. Those who gave it up for a week enjoyed it more than those who were able to have it every day, she said.Identify things you originally enjoyed but now take for granted.”Just taking a break from them can be a way to both cut down on spending, while also potentially increasing our happiness,” Dunn said.Since the pandemic forced a break from many of our habitual purchases, it’s a good opportunity to bring each one back one at a time, Dunn suggests.Buy timeOne underutilized strategy for increasing happiness is spending money to get more time in your daily life.”People who use their money to buy their way out of the things they hate doing are happier than those who don’t,” Dunn said.That can mean hiring a cleaning person or family helper to run errands.Pay now, consume laterMarko Geber | DigitalVision | Getty ImagesIf you pay in advance for an experience you are doing in the future, you get to capitalize on a pleasurable period of anticipation, Dunn said.”When we invest in our future selves, when we sort of pay upfront for things we’re going to enjoy later, that does seem to be at least ‘correlationally’ linked to better financial outcomes, as well.”Invest in othersWhen Dunn was conducting experiments on how happy people were when you gave them money, she realized the givers also felt good.”What we’ve discovered is that people were actually getting more happiness out of money that they used to benefit others, than money that they used to benefit themselves,” she said.SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.CHECK OUT: I used to owe $40,000 and now I’m on track to retire at 65 with over $1.5 million: Here’s my best advice via Grow with Acorns+CNBCDisclosure: NBCUniversal and Comcast Ventures are investors in Acorns. More

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    How Porsche went from sports cars to SUVs … and EVs

    Porsche is in the minds of many the ultimate sports car brand.Its cars — especially its legendary 911 — blend high performance with quality construction and even a solid reputation for dependability.But the brand that made its name with small nimble two-door sports cars ruffled feathers in the automotive world when it tried its hand at a four-door sport utility vehicle, the Cayenne.Now SUVs make up a huge chunk of Porsche’s sales. Fans say they are among the best-performing SUVs available, and they retain that essential Porsche DNA.The brand is now entering the race toward electrification. Its Taycan is already selling about as well as the 911. But this time the innovator is playing catch-up to others, and also is faced with the question of how it can make an electric vehicle that still stands apart from competitors and retains the spirit of Porsche. The automaker declined a request to be interviewed for this story.  More

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    The Covid delta variant has 'exploded' in the UK — and it could be a blueprint for the U.S.

    Medical staff member Mantra Nguyen installs a new oxygen mask for a patient in the Covid-19 intensive care unit (ICU) at the United Memorial Medical Center in Houston, Texas.Go Nakamura | Getty Images News | Getty Images.Since the start of the coronavirus pandemic, the U.S. has been keeping a close eye on the U.K.From its initial response to Covid-19 (questioned by many), to its much-praised immunization program and world-class research, all have helped inform how the U.S. — which faced its first major Covid outbreak after Britain — has reacted.Indeed, the U.K.’s experience of Covid-19 has often been a harbinger of things to come for other countries., including the U.S. It has proved particularly true when it comes to Covid variants which have hit the U.K. and then gone on to dominate globally.This was first seen with the alpha variant that emerged in southeast England late last year and went on to become dominant across the world. A similar thing then happened with the delta variant that originated in India, but was identified in the U.K. at a relatively early stage.  Both strains have proved to be far more transmissible than the original coronavirus that first emerged in China in late 2019. The World Health Organization now predicts that the delta variant — which has already spread to more than 80 countries — will become the dominant strain of the disease worldwide.Read more: The UK’s Covid vaccine program and delta surge means it’s now a test case for the worldGiven the U.K.’s experience of both strains at an earlier stage than many other countries, it is now being seen as something of a “test case” for what could happen in the U.S.Delta ‘greatest threat’ to U.S.The first thing to note is how quickly the delta variant spread across the U.K.In a relatively short amount of time, the strain supplanted the alpha variant to become dominant in the country (in mid-June delta was responsible for 90% of all infections, a government study showed) — and this happened despite the U.K.’s advanced vaccination rate.Meanwhile, cases attributed to the delta strain now make up around 20% of newly diagnosed cases in the U.S. according to White House chief medical advisor Dr. Anthony Fauci.Fauci warned last week that the delta variant is set to become the dominant Covid strain in the country in a matter of weeks, citing the U.K. as precedent. “It just exploded in the U.K. It went from a minor variant to now more than 90% of the isolates in the U.K.,” Fauci said on NBC’s “TODAY” show.He said the variant has a doubling time of about two weeks. “So you would expect, just the doubling time, you know, in several weeks to a month or so it’s going to be quite dominant, that’s the sobering news,” he added.Read more: Fauci says delta accounts for 20% of new cases and will be dominant Covid variant in U.S. in weeksFauci had already warned that delta appears to be “following the same pattern” as alpha. “Similar to the situation in the U.K., the delta variant is currently the greatest threat in the U.S. to our attempt to eliminate Covid-19,” he said.In the U.K., infections attributed to delta have spread rapidly among young people and anyone older who has not yet been vaccinated. Similarly, in the U.S., there are concerns that delta could rapidly spread in parts of the South where vaccinations have stalled, NBC News reported Sunday.The U.S. is not alone in its concern over the delta variant. In Australia, Sydney was put under a two week lockdown over the weekend amid a growing outbreak of the strain. The Australian government’s Covid response team is set to meet Monday to discuss the spread of the virus and the possibility of more restrictions.Vaccination rushNew outbreaks of infections largely blamed on the delta variant have prompted the U.K.’s government to speed up the last leg of its immunization program for people aged 18 and over.It’s hoped that stepping up vaccinations will help stop the wild spread of the strain. Analysis from Public Health England released June 21 showed that two doses of the Pfizer-BioNTech or the Oxford-AstraZeneca Covid-19 vaccines are highly effective against hospitalization from the delta variant.To date, almost 60% of all U.K. adults have received two doses of the vaccine, while in the U.S., 56% of the population over 18 has been fully vaccinated. The U.K. has not yet authorized Covid shots for adolescents, unlike the U.S. which is giving vaccines to the over-12s.Read more: Delta Covid variant has a new mutation called ‘delta plus’: Here’s what you need to knowPerhaps wary of how infections have spread in the U.K., the U.S. wants to speed up its vaccinations too. It could take more time than the White House would like, however.The Biden administration said last Tuesday that it likely won’t hit its goal of 70% of American adults receiving one vaccine shot or more by the Fourth of July.Read more: Covid boosters in the fall? As calls grow for third shots, here’s what you need to knowWhite House Covid czar Jeff Zients said the administration had met its 70% target for people aged 30 and older and is on track to hit it for those aged 27 and older by July Fourth. Zients said U.S. officials were working with state and local leaders to reach younger people.”We think it’ll take a few extra weeks to get to 70% of all adults with at least one shot with the 18- to 26-year-olds factored in,” he said.-CNBC’s Nate Rattner and Dawn Kopecki contributed reporting to this story. More

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    Stocks making the biggest moves in the premarket: Boeing, Intellia Therapeutics, Perion Network & more

    Take a look at some of the biggest movers in the premarket:Boeing (BA) – Boeing is not likely to receive certification for its 777X long-range aircraft until mid-to-late 2023 at the earliest. That’s according to a letter from a Federal Aviation Administration official to Boeing that was obtained by CNBC, saying there were numerous technical issues that needed to be resolved. Boeing shares fell 1.2% in the premarket.Intellia Therapeutics (NTLA) – Intellia shares surged 55.4% in the premarket after the Massachusetts-based company and partner Regeneron (REGN) announced positive results in a phase 1 study of a gene-editing treatment for a disease called transthyretin amyloidosis. Regeneron shares gained 1.6%. Two other companies involved with the same gene-editing technology also rallied in premarket trading, with CRISPR Therapeutics (CRSP) soaring 13.5% and Editas Medicine (EDIT) jumping 17.1%.Perion Network (PERI) – The advertising technology company’s shares surged 9.9% in the premarket after reporting upbeat second-quarter earnings and increasing its full-year forecast.Johnson & Johnson (JNJ) – Johnson & Johnson will pay $263 million to resolve opioid-related claims in a settlement involving both the state and Nassau and Suffolk Counties. The settlement – in which J&J does not admit or deny guilt – removes the company from an opioid trial set to begin Tuesday.Tesla (TSLA) – Tesla is virtually recalling nearly 300,000 cars to implement a software update related to assisted driving. The owners will not actually have to return the vehicles in order to receive the update.Biogen (BIIB) – House lawmakers announced an inquiry into the process that approved Biogen’s Alzheimer’s treatment as well as its pricing. Biogen told Reuters it would cooperate with any inquiries it received from lawmakers.Nvidia (NVDA) – Nvidia received support for its planned $40 billion takeover of ARM from some of the U.K. chip maker’s major customers, according to a report in the Sunday Times. The public display of support comes from Broadcom (AVGO), Marvell (MRVL) and MediaTek.MetLife (MET) – MetLife received an offer from Netherlands-based insurer NN Group for some of MetLife’s European businesses, though NN did not say which businesses were involved or how much it had offered.MicroStrategy (MSTR) – The business analytics company’s stock gained 3.3% in premarket trading, continuing to trade in sync with bitcoin. MicroStrategy has several billion dollars of the virtual currency on its books.Ocwen Financial (OCN), JOANN (JOAN) – Both stocks will be included in the small-cap Russell 2000 index as of today. Ocwen is a mortgage origination and servicing company, while JOANN is an arts and crafts retailer.NRG Energy (NRG) – The energy provider’s stock was added to the Conviction Buy list at Goldman Sachs, which also increased its price target on the stock to $57 per share from $46. The stock closed at $38.49 per share Friday, and gained 1.8% in premarket trading. More

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    Binance, the world's largest cryptocurrency exchange, gets banned by UK regulator

    In this articleBTC.CM=Changpeng Zhao, CEO of Binance, speaks during a TV interview in Tokyo, Japan, on Thursday, Jan. 11, 2018.Akio Kon | Bloomberg | Getty ImagesLONDON – Cryptocurrency exchange Binance has been banned from operating in the U.K. by the country’s markets regulator, in the latest sign of a growing crackdown on the crypto market around the world.Britain’s Financial Conduct Authority said Saturday that Binance Markets Limited, the U.K. division of Binance, “is not permitted to undertake any regulated activity in the U.K.”From June 30, the company — which already offers Brits crypto trading through its website — must add a notice in a prominent place in its website and apps showing U.K. users the following text:BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE U.K. Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. (No other entity in the Binance Group holds any form of U.K. authorisation, registration or license to conduct regulated activity in the U.K.).Binance, the world’s largest crypto exchange by trading volumes, was set to launch its own digital asset marketplace in Britain. However, it was one of several crypto firms that withdrew applications to register with the FCA due to not meeting anti-money laundering requirements.”Binance Markets Limited withdrew their 5MLD application on 17 May 2021 following intensive engagement from the FCA,” a spokesperson for the FCA told CNBC. “The action taken today on Binance Markets Limited has been in train for some time.”The FCA spokesperson clarified that the scope of the ban was limited. Though Binance Markets Limited is banned from offering regulated services in Britain, non-registered firms can still interact with U.K. consumers. That means Binance could still offer Brits crypto trading through its website.A Binance spokesperson told CNBC: “The FCA U.K. notice has no direct impact on the services provided on Binance.com … Our relationship with our users has not changed.””We take a collaborative approach in working with regulators and we take our compliance obligations very seriously,” the spokesperson added. “We are actively keeping abreast of changing policies, rules and laws in this new space.””The FCA has stated that Binance is not permitted to conduct regulated activities in the U.K.,” Laith Khalaf, financial analyst at AJ Bell, said via email. “Providing access to cryptocurrencies itself is not a regulated activity, but offering derivatives is, which is presumably the activity the FCA is clamping down on.”The FCA isn’t the only regulator clamping down on the crypto industry.Japan’s Financial Services Agency warned last week that Binance was operating in the country without its permission.Meanwhile, China has stepped up efforts to stamp out crypto speculation, ordering digital currency miners to cease operations in a number of regions and urging banks and payment firms not to offer crypto-related services.Increased regulatory scrutiny has weighed on the nascent crypto market. Bitcoin had a solid start to the year, rallying to an all-time high of almost $65,000 in April. But it’s since almost halved in value, trading at $34,783 as of Monday morning.”This isn’t a step change in regulation which is going to knock the crypto craze on the head, but it is part of a growing trend of regulatory intervention in crypto markets,” Khalaf said, referring to the FCA’s restrictions on Binance.”The idea that policy makers are simply going to allow a decentralised shadow payments system to emerge without any regulatory oversight is fantastical, and if the use of cryptoassets becomes more widespread, we can expect beefed-up regulation to follow suit.” More