CME Group Halts Crypto Trading Amid Coronavirus Scare
[CME to stop trading of digital assets, such as cryptocurrencies and Bitcoin futures on its Chicago floor as coronavirus continues to spread. These are precautionary measures needed to drive the crypto space forward amid this pandemic]
As coronavirus continues wreaking havoc across the globe having claimed more than 4,600 lives and infecting at least 124,500 individuals, amicable solutions are necessitated to curb this pandemic. As a precautionary measure, Chicago Mercantile Exchange (CME) Group, the biggest derivatives marketplace worldwide, has decided to stop the trading of assets, such as cryptocurrencies and Bitcoin futures, on its Chicago floor as this will deter the congregation of large gatherings that propel the spread of coronavirus.
CME sets a precedent
CME has crafted a name for itself as a leading derivatives marketplace that enables the trading of futures, options, and cryptocurrencies, as well as the optimization of portfolios and analysis of data.
The decision of halting crypto trading on its Chicago floor makes CME the first notable American exchange to do so as others seek to heed this call, such as the New York Stock Exchange.
Despite halting trading, CME acknowledged that the reopening of the Chicago trading floor would be pegged on medical guidance concerning the pandemic as no case had been reported in this arena.
The fear associated with coronavirus has caused more harm than good to various global markets because of aspects, such as panic selling. As a result, some of them have been tumbling down. For instance, in a span of 24 hours, the industrial average of Dow Jones had depreciated by nearly 1500 points.
Nevertheless, the crypto sector seems to be considerably steady. This is because digital assets, such as Bitcoin, are considered to be safe havens during uncertainties like the coronavirus epidemic.
Precautionary measures in the crypto space
Different crypto players are not oblivious to the concerns raised about the coronavirus outbreak. For instance, various crypto exchanges, such as San Francisco-based Coinbase, have asked employees to undertake their roles from home as a necessary measure to curb the epidemic.
As per now, more than 1,000 people are victims of coronavirus in the United States, and the spread is thriving globally. Nevertheless, the crypto space is playing an instrumental role in dealing with the pandemic thanks to blockchain technology. For example, in China, blockchain-powered applications are being leveraged to propel coronavirus response.
The announcement by CME shows the way working from home is being touted by many companies as this hinders movements and gatherings as this comes in handy in tackling the coronavirus pandemic.