CBDC Week: Another G7 Country Mulls Joining Digital Fiat Race
After the UK admitted it is mulling digital fiat plans this week, the Japanese government has also announced that it is considering the launch of a central bank digital currency (CBDC).
Per Nikkei, the cabinet is set to make a formal decision on whether or not it will include the issuance of a CBDC in its policy framework in the near future – adding that that should it do so, this would make digital yen issuance “official government policy.”
The government could include CBDC plans in its forthcoming budget plan, the Honebuto-no hoshin. The plan is formulated by 11 financial council members, including the central Bank of Japan (BoJ), and is chaired by Prime Minister Shinzo Abe.
Like its East Asian neighbor South Korea, Japan has long been of the opinion that a digital yen would not be necessary. But like Seoul, Tokyo appears to have made a dramatic u-turn – possibly as a result of China’s own digital yuan project, which Chinese media outlets say is already posed to start real-world pilots with two major firms.
Nikkei says that the Japanese government wants to make its move in conjunction with other major economies, and has been participating in CBDC study and research groups with European nations for several months.
The media outlet stated that the government and the BoJ are hoping to hold “full-scale talks with the United States and European countries” on the matter.
In February, the Japanese Ministry of Finance, the regulatory Financial Services Agency and the BoJ held three-party talks on CBDC research.
The Bank of England also admitted that it is mulling a CBDC launch this week, while the South Korean central bank launched a CBDC legal advisory unit, and the Bank of Lithuania opened a 'playground' for testing CBDCs.
Should Tokyo decide to go ahead with a digital yen launch, it would have no shortage of private companies ready to offer their assistance.
Readers may recall that a Japanese blockchain firm is currently piloting a token at a university in the country, as well as co-developing a digital fiat project with the Cambodian central bank.
After the UK admitted it is mulling digital fiat plans this week, the Japanese government has also announced that it is considering the launch of a central bank digital currency (CBDC).
Per Nikkei, the cabinet is set to make a formal decision on whether or not it will include the issuance of a CBDC in its policy framework in the near future – adding that that should it do so, this would make digital yen issuance “official government policy.”
The government could include CBDC plans in its forthcoming budget plan, the Honebuto-no hoshin. The plan is formulated by 11 financial council members, including the central Bank of Japan (BoJ), and is chaired by Prime Minister Shinzo Abe.
Like its East Asian neighbor South Korea, Japan has long been of the opinion that a digital yen would not be necessary. But like Seoul, Tokyo appears to have made a dramatic u-turn – possibly as a result of China’s own digital yuan project, which Chinese media outlets say is already posed to start real-world pilots with two major firms.
Nikkei says that the Japanese government wants to make its move in conjunction with other major economies, and has been participating in CBDC study and research groups with European nations for several months.
The media outlet stated that the government and the BoJ are hoping to hold “full-scale talks with the United States and European countries” on the matter.
In February, the Japanese Ministry of Finance, the regulatory Financial Services Agency and the BoJ held three-party talks on CBDC research.
The Bank of England also admitted that it is mulling a CBDC launch this week, while the South Korean central bank launched a CBDC legal advisory unit, and the Bank of Lithuania opened a 'playground' for testing CBDCs.
Should Tokyo decide to go ahead with a digital yen launch, it would have no shortage of private companies ready to offer their assistance.
Readers may recall that a Japanese blockchain firm is currently piloting a token at a university in the country, as well as co-developing a digital fiat project with the Cambodian central bank.
Bitcoin Pioneer LN Markets Raising Capital, Building 'Liquidation Killer'
LN Markets, the first bitcoin (BTC) derivatives exchange built on top of the Lightning Network (LN), reached USD 6m in total aggregate trading volume and is now raising capital in order to accelerate its growth.
The platform was launched in December 2019 in Beta, while their Alpha version went live in March this year. Since December, the exchange has processed over 22,000 trades.
The company started their fundraising process a few weeks ago, LN Markets co-founder Romain Rouphaël told Cryptonews.com, declining to elaborate any further.
Currently, the platform has around 1,000 daily active users. Trading limits are still small because the platform is still in Alpha. Traders can only trade up to BTC 0.01 (USD 92) at this point in time.
According to Rouphaël, in their product pipeline, there are bitcoin options, a bitcoin volatility index, and a new financial instrument called “liquidation killer.”
The idea behind the liquidation killer is to prevent traders from getting their positions liquidated from sharp price movements as is often the case on existing exchange offerings. To prevent that from happening, a trader can purchase a liquidation killer that prevents liquidation, for example, for a 24-hour period. The option to purchase a liquidation killer will be available for all trades and the payment of the premium will be automatically added when the margin is paid.
Additionally, LN Markets is keen to develop financial products on top of the Lighting Network using the RGB Protocol.
It is a smart contract system built for the Lightning Network that enables the issuance of fungible and non-fungible digital assets as well as digital identities, similar to ERC smart contract standards for the Ethereum (ETH) network.
Using the new LN smart contract technology, the platform plans to add stablecoins to its platform to enable financial products to be quoted in dollars and euros in addition to bitcoin.
A trading API is also on the roadmap to enable traders to plug into LN Markets directly.
LN Markets, the first bitcoin (BTC) derivatives exchange built on top of the Lightning Network (LN), reached USD 6m in total aggregate trading volume and is now raising capital in order to accelerate its growth.
The platform was launched in December 2019 in Beta, while their Alpha version went live in March this year. Since December, the exchange has processed over 22,000 trades.
The company started their fundraising process a few weeks ago, LN Markets co-founder Romain Rouphaël told Cryptonews.com, declining to elaborate any further.
Currently, the platform has around 1,000 daily active users. Trading limits are still small because the platform is still in Alpha. Traders can only trade up to BTC 0.01 (USD 92) at this point in time.
According to Rouphaël, in their product pipeline, there are bitcoin options, a bitcoin volatility index, and a new financial instrument called “liquidation killer.”
The idea behind the liquidation killer is to prevent traders from getting their positions liquidated from sharp price movements as is often the case on existing exchange offerings. To prevent that from happening, a trader can purchase a liquidation killer that prevents liquidation, for example, for a 24-hour period. The option to purchase a liquidation killer will be available for all trades and the payment of the premium will be automatically added when the margin is paid.
Additionally, LN Markets is keen to develop financial products on top of the Lighting Network using the RGB Protocol.
It is a smart contract system built for the Lightning Network that enables the issuance of fungible and non-fungible digital assets as well as digital identities, similar to ERC smart contract standards for the Ethereum (ETH) network.
Using the new LN smart contract technology, the platform plans to add stablecoins to its platform to enable financial products to be quoted in dollars and euros in addition to bitcoin.
A trading API is also on the roadmap to enable traders to plug into LN Markets directly.
Venezuela Tells Citizens in Gov’t Houses to Stop Mining Crypto
The Venezuelan government is set to ban crypto mining in government-provided housing, per an official announcement.
The announcement was made in a video tweeted by state-owned television station VTV Canal 8.
In the video, Ildemaro Villarroel, the Minister of Housing, stated that the central government had issued an edict banning the installation of equipment that is capable of mining bitcoin (BTC) and other cryptocurrencies in homes provided by the state.
The minister said that the move was being made as part of a campaign to promote the sensible and conservative use of electricity.
He stated,
“The installation of cryptocurrency mining machines has now been prohibited as per the amended Great Mission Housing Venezuela housing plan.”
The Great Mission Housing Venezuela housing plan, introduced by the Hugo Chávez administration in 2011, was set up to provide housing for families living in precarious conditions.
Villarroel added that the decision had been taken in conjunction with the Ministry of Electric Energy, and spoke of the “harmful effects” crypto mining has had “on electricity demand and consumption in state-built urban developments.”
Cryptocurrency mining is legal in Venezuela, and the country is among the world’s top 10 electricity consumers for crypto mining, per data compiled by the University of Cambridge.
Earlier this month, the Venezuelan army announced the seizure of a truck loaded with 315 unregistered Antminer 9 crypto mining rigs.
The Venezuelan government is set to ban crypto mining in government-provided housing, per an official announcement.
The announcement was made in a video tweeted by state-owned television station VTV Canal 8.
In the video, Ildemaro Villarroel, the Minister of Housing, stated that the central government had issued an edict banning the installation of equipment that is capable of mining bitcoin (BTC) and other cryptocurrencies in homes provided by the state.
The minister said that the move was being made as part of a campaign to promote the sensible and conservative use of electricity.
He stated,
“The installation of cryptocurrency mining machines has now been prohibited as per the amended Great Mission Housing Venezuela housing plan.”
The Great Mission Housing Venezuela housing plan, introduced by the Hugo Chávez administration in 2011, was set up to provide housing for families living in precarious conditions.
Villarroel added that the decision had been taken in conjunction with the Ministry of Electric Energy, and spoke of the “harmful effects” crypto mining has had “on electricity demand and consumption in state-built urban developments.”
Cryptocurrency mining is legal in Venezuela, and the country is among the world’s top 10 electricity consumers for crypto mining, per data compiled by the University of Cambridge.
Earlier this month, the Venezuelan army announced the seizure of a truck loaded with 315 unregistered Antminer 9 crypto mining rigs.
Crypto Insider Traders Run Free, Hurting Unregulated Market
The crypto industry has an insider trading problem. While no official laws or regulations explicitly prohibit insider trading within crypto, industry observers suspect that it happens more often than you think.
Few crypto exchanges and companies are actually listed on traditional stock exchanges, so ‘insider trading’ in the normal sense doesn’t happen in crypto. Nonetheless, insider trading has its forms within crypto. It could be a group of people, such as founders, team members, who have knowledge not shared by the whole market and use it to buy/sell tokens before the market gets the news. Also, it might be exchanges buying a coin before announcing plans to list it.
These forms of trading have a toxic effect on crypto, undermining confidence in exchanges, startups, and deterring the wider public from investing. That’s why regulation might be necessary to make crypto’s own forms of insider trading illegal.
Suspicions
“It is obvious some people will always have access to information not readily available to others,” said Fawad Razaqzada, an analyst with ThinkMarkets. “For example, when a particular cryptocurrency is about to be listed on an exchange, some people that work in that exchange will obviously know about it. Whether they act on that information is dependent on the person or persons.”
Speaking to Cryptonews.com, Razaqzada added, “I strongly believe a lot of such activity goes on, but can’t prove it.”
He’s not alone. Traders have accused Coinbase of insider trading on various occasions, stretching back to its listing of bitcoin cash (BCH) in 2018 and occurring as recently as May, when Coinbase’s listing of omisego (OMG) caused the token to jump dramatically in price.
This is ridiculous. This morning OMG traded at $3.90 on Coinbase while trading at $2.14 on Binance (82.34% premium…
— Matt Casto (@mcasto_)
Similar accusations have been levelled at other major exchanges, such as Binance (which listed XRP in January, before an XRP pump) and BitMEX (which Nouriel Roubini has directly accused of insider trading).
Coinbase, Binance, BitMex, and other crypto exchanges deny all accusations of insider trading.
However, Prof. Philipp Sandner, the head of the Frankfurt School Blockchain Center, argued that in the area of cryptoassets we primarily encounter price manipulations rather than insider trading.
“This especially holds true for alternative cryptocurrencies with a much lower market capitalization than bitcoin (BTC) or ethereum (ETH). Here, so-called pump-and-dump schemes or sell walls are used to artificially manipulate prices,” he said.
Sandner also thinks insider trading involving security token offerings (STOs) is also possible. However, he’s “not aware of any case so far.”
The crypto industry has an insider trading problem. While no official laws or regulations explicitly prohibit insider trading within crypto, industry observers suspect that it happens more often than you think.
Few crypto exchanges and companies are actually listed on traditional stock exchanges, so ‘insider trading’ in the normal sense doesn’t happen in crypto. Nonetheless, insider trading has its forms within crypto. It could be a group of people, such as founders, team members, who have knowledge not shared by the whole market and use it to buy/sell tokens before the market gets the news. Also, it might be exchanges buying a coin before announcing plans to list it.
These forms of trading have a toxic effect on crypto, undermining confidence in exchanges, startups, and deterring the wider public from investing. That’s why regulation might be necessary to make crypto’s own forms of insider trading illegal.
Suspicions
“It is obvious some people will always have access to information not readily available to others,” said Fawad Razaqzada, an analyst with ThinkMarkets. “For example, when a particular cryptocurrency is about to be listed on an exchange, some people that work in that exchange will obviously know about it. Whether they act on that information is dependent on the person or persons.”
Speaking to Cryptonews.com, Razaqzada added, “I strongly believe a lot of such activity goes on, but can’t prove it.”
He’s not alone. Traders have accused Coinbase of insider trading on various occasions, stretching back to its listing of bitcoin cash (BCH) in 2018 and occurring as recently as May, when Coinbase’s listing of omisego (OMG) caused the token to jump dramatically in price.
This is ridiculous. This morning OMG traded at $3.90 on Coinbase while trading at $2.14 on Binance (82.34% premium…
— Matt Casto (@mcasto_)
Similar accusations have been levelled at other major exchanges, such as Binance (which listed XRP in January, before an XRP pump) and BitMEX (which Nouriel Roubini has directly accused of insider trading).
Coinbase, Binance, BitMex, and other crypto exchanges deny all accusations of insider trading.
However, Prof. Philipp Sandner, the head of the Frankfurt School Blockchain Center, argued that in the area of cryptoassets we primarily encounter price manipulations rather than insider trading.
“This especially holds true for alternative cryptocurrencies with a much lower market capitalization than bitcoin (BTC) or ethereum (ETH). Here, so-called pump-and-dump schemes or sell walls are used to artificially manipulate prices,” he said.
Sandner also thinks insider trading involving security token offerings (STOs) is also possible. However, he’s “not aware of any case so far.”
Is There A World Beyond YouTube for Crypto?
The relationship between the communications giant Google and the cryptoasset industry can be characterized as somewhat antagonistic.
Now, its video-sharing platform, YouTube seems to be on the offensive, de-platforming some crypto-related content creators, leaving them looking for viable alternatives.
No tube for you
As early as 2019, reports began to emerge from content creators within the cryptosphere who claimed that they were receiving warnings from YouTube about the content in their videos. In many cases, videos were removed, forcing the content creators to appeal the decision. In more extreme cases, some content creators found their YouTube channels de-platformed.
Towards the end of 2019, these claims reached a fever pitch as the crypto community noticed a purge of crypto-related material on YouTube. Channels like BTC Sessions, ChrisDunnTV, and Crypto Tips received warnings and had numerous videos deleted.
On December 23, 2019, Chris Dunn questioned YouTube’s choices saying, "YouTube just removed most of my crypto videos citing "harmful or dangerous content" and "sale of regulated goods"... it's been 10 years of making videos, 200k+ subs, and 7M+ views. WTF are you guys doing?!”
Given the widespread nature of the deletions, speculation rose about YouTube’s motives. Considering restrictions on crypto and blockchain ads on Google, some members of the crypto community believed the video-sharing platform was purposefully participating in censorship.
YouTube eventually released a statement, saying that the deletions were accidental and urging content creators to appeal any decisions they feel were made in error. For content creators like Chris Dunn, however, going through the appeal process in order to have the videos reinstated did not always work. Dunn said, “Today, YouTube not only took down the videos that they reinstated yesterday, but they took down at least one other video that they’d never taken down before.”
The relationship between the communications giant Google and the cryptoasset industry can be characterized as somewhat antagonistic.
Now, its video-sharing platform, YouTube seems to be on the offensive, de-platforming some crypto-related content creators, leaving them looking for viable alternatives.
No tube for you
As early as 2019, reports began to emerge from content creators within the cryptosphere who claimed that they were receiving warnings from YouTube about the content in their videos. In many cases, videos were removed, forcing the content creators to appeal the decision. In more extreme cases, some content creators found their YouTube channels de-platformed.
Towards the end of 2019, these claims reached a fever pitch as the crypto community noticed a purge of crypto-related material on YouTube. Channels like BTC Sessions, ChrisDunnTV, and Crypto Tips received warnings and had numerous videos deleted.
On December 23, 2019, Chris Dunn questioned YouTube’s choices saying, "YouTube just removed most of my crypto videos citing "harmful or dangerous content" and "sale of regulated goods"... it's been 10 years of making videos, 200k+ subs, and 7M+ views. WTF are you guys doing?!”
Given the widespread nature of the deletions, speculation rose about YouTube’s motives. Considering restrictions on crypto and blockchain ads on Google, some members of the crypto community believed the video-sharing platform was purposefully participating in censorship.
YouTube eventually released a statement, saying that the deletions were accidental and urging content creators to appeal any decisions they feel were made in error. For content creators like Chris Dunn, however, going through the appeal process in order to have the videos reinstated did not always work. Dunn said, “Today, YouTube not only took down the videos that they reinstated yesterday, but they took down at least one other video that they’d never taken down before.”
A Date for Final Ethereum 2.0 Public Testnet Announced; Attacknets Live
Step by step, or rather one testnet by another, Ethereum 2.0 (ETH 2.0) seems to be on track for launch - as the date for the final public testnet has been announced.
Ethereum Core developer Danny Ryan posted on the testnet’s Discord site that the next multi-client testnet is fast-approaching, now being just two weeks away, on August 4, if everything goes according to the plan.
"After discussions with client teams, the next multi-client testnet (mainnet config including min validator numbers) will have a min genesis time of August 4," Ryan wrote.
He further added that the likely time would be 13:00 or 14:00 UTC, but also that additional information will be made available to the public in the "next couple of days."
Furthermore, "the test educational deposit interface aimed at hobbyists" called Launchpad will also be included in this testnet. Product Manager at Ethereum-focused blockchain company ConsenSys, Jimmy Ragosa, posted back in May that the official Ethereum 2.0 deposit launchpad had been open-sourced, providing a UX (user experience) review.
This is supposedly the last public testnet leading to the long-awaited and much-discussed first phase of ETH 2.0, called Phase 0 or Beacon Chain. As reported previously, this is far from being the only testnet the developers launched so far, as they've been going live with both single-client and multi-client testnets for months now.
Back in April, the Sapphire testnet was launched, allowing users to make small deposits, which was then followed by Topaz in May and Onyx in June. A coder from Prysm, Terence Tsao, shared a few days ago a blog post containing certain issues with and subsequent fixes for Onyx, also saying that the developers are "so close to official multiclient testnet."
Also in April, Prysm and Lighthouse released the multi-client testnet Schlesi, which was followed by Witti and then Altona, launched in early July.
Altona "appears to be stable," Afri Schoedon, release manager at blockchain infrastructure company Parity Technologies, said recently, adding that the official multi-client testnet Medalla would be coming "very soon, which would mark the final step towards an Ethereum 2.0 mainnet launch."
As reported, Schoedon also gave November as the possible Phase 0 launch time, provided that no critical issues are found.
This Monday, Ryan announced that the attacknets are live, calling for anybody willing to try and attack the small, four-node versions of the Lighthouse and Prysm ETH 2.0 clients, with the possible reward of USD 5,000 for each network awaiting successful white hat hackers.
Step by step, or rather one testnet by another, Ethereum 2.0 (ETH 2.0) seems to be on track for launch - as the date for the final public testnet has been announced.
Ethereum Core developer Danny Ryan posted on the testnet’s Discord site that the next multi-client testnet is fast-approaching, now being just two weeks away, on August 4, if everything goes according to the plan.
"After discussions with client teams, the next multi-client testnet (mainnet config including min validator numbers) will have a min genesis time of August 4," Ryan wrote.
He further added that the likely time would be 13:00 or 14:00 UTC, but also that additional information will be made available to the public in the "next couple of days."
Furthermore, "the test educational deposit interface aimed at hobbyists" called Launchpad will also be included in this testnet. Product Manager at Ethereum-focused blockchain company ConsenSys, Jimmy Ragosa, posted back in May that the official Ethereum 2.0 deposit launchpad had been open-sourced, providing a UX (user experience) review.
This is supposedly the last public testnet leading to the long-awaited and much-discussed first phase of ETH 2.0, called Phase 0 or Beacon Chain. As reported previously, this is far from being the only testnet the developers launched so far, as they've been going live with both single-client and multi-client testnets for months now.
Back in April, the Sapphire testnet was launched, allowing users to make small deposits, which was then followed by Topaz in May and Onyx in June. A coder from Prysm, Terence Tsao, shared a few days ago a blog post containing certain issues with and subsequent fixes for Onyx, also saying that the developers are "so close to official multiclient testnet."
Also in April, Prysm and Lighthouse released the multi-client testnet Schlesi, which was followed by Witti and then Altona, launched in early July.
Altona "appears to be stable," Afri Schoedon, release manager at blockchain infrastructure company Parity Technologies, said recently, adding that the official multi-client testnet Medalla would be coming "very soon, which would mark the final step towards an Ethereum 2.0 mainnet launch."
As reported, Schoedon also gave November as the possible Phase 0 launch time, provided that no critical issues are found.
This Monday, Ryan announced that the attacknets are live, calling for anybody willing to try and attack the small, four-node versions of the Lighthouse and Prysm ETH 2.0 clients, with the possible reward of USD 5,000 for each network awaiting successful white hat hackers.
S Korea To Discriminate Crypto Traders Against Stock Traders With A New Tax
The South Korean government has unveiled its crypto tax proposals – with traders who earn over USD 2,100 a year set to pay 20% tax on their earnings.
This limit is considerably lower for stock market traders, who do not need to pay tax on earnings (also 20%) of up to USD 42,000 from investments in KOSDAQ-listed companies. These proposals still need to be confirmed by the parliament.
Per multiple South Korean media outlets, including SBS, as well as Fn News and the Electronic Times, if confirmed by the parliament, the measures are set to come into force in October next year. Anyone earning under USD 2,100 from crypto trading would not need to pay tax on their earnings.
Crypto traders would be asked to submit tax declarations in May every year.
And those who attempt to bypass tax measures by trading on overseas-based exchanges were also issued with a warning. Tax authorities would have the power to issue undeclared traders with additional tax bills (also of 20%) – on top of the 20% payable from the undisclosed trades.
However, media outlets and experts appear to agree that tax evasion will likely be rife when the measures come into force, as there appear to be no provisions included to prevent or police peer-to-peer (P2P) transactions.
Furthermore, the government has stipulated that two different methodologies can be used while making tax declarations – another factor that could lead to “tax loopholes,” concluded Fn News.
Media outlets also added that the fact that declarations need to be made in May may complicate matters. As the price of tokens fluctuates throughout the year, the process of calculating the precise fiat value of tokens at the moment they were traded could be fraught with errors and confusion.
The South Korean government has unveiled its crypto tax proposals – with traders who earn over USD 2,100 a year set to pay 20% tax on their earnings.
This limit is considerably lower for stock market traders, who do not need to pay tax on earnings (also 20%) of up to USD 42,000 from investments in KOSDAQ-listed companies. These proposals still need to be confirmed by the parliament.
Per multiple South Korean media outlets, including SBS, as well as Fn News and the Electronic Times, if confirmed by the parliament, the measures are set to come into force in October next year. Anyone earning under USD 2,100 from crypto trading would not need to pay tax on their earnings.
Crypto traders would be asked to submit tax declarations in May every year.
And those who attempt to bypass tax measures by trading on overseas-based exchanges were also issued with a warning. Tax authorities would have the power to issue undeclared traders with additional tax bills (also of 20%) – on top of the 20% payable from the undisclosed trades.
However, media outlets and experts appear to agree that tax evasion will likely be rife when the measures come into force, as there appear to be no provisions included to prevent or police peer-to-peer (P2P) transactions.
Furthermore, the government has stipulated that two different methodologies can be used while making tax declarations – another factor that could lead to “tax loopholes,” concluded Fn News.
Media outlets also added that the fact that declarations need to be made in May may complicate matters. As the price of tokens fluctuates throughout the year, the process of calculating the precise fiat value of tokens at the moment they were traded could be fraught with errors and confusion.
US Banks Offering Crypto Custody is 'Insanely' Bullish and Risky
While many in the Cryptoverse celebrate a decision by the US Office of the Comptroller of the Currency to allow all federally chartered banks in the US to provide cryptoasset custody services to their customers, it also brings an "existential" risk to Bitcoin (BTC).
The OCC published a letter stating that all national and state banks and federal savings associations can hold their clients' digital assets. It also acknowledged BTC as "the first widely-adopted cryptocurrency."
"The OCC concludes that providing cryptocurrency custody services, including holding unique cryptographic keys associated with cryptocurrency, is a modern form of traditional bank activities related to custody services," their press release said. "Crypto custody services may extend beyond passively holding "keys"."
Acting Comptroller Brian Brooks, who joined OCC this year after leaving his position of an executive at major crypto exchange Coinbase, said:
"This opinion clarifies that banks can continue satisfying their customers' needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency."
The letter recognized the need for banks to leverage new technologies, particularly given the increasing digitization of the financial markets. Furthermore, national banks providing cryptocurrency custody might signal recognition of cryptos by these financial authorities, which could be reassuring to people who place their trust in traditional institutions. After all, the letter described fiat as an instrument that doesn't "have intrinsic value but that individuals and institutions are willing to use for purposes of purchase and investment because they are issued by a government."
"This clarification from the OCC may open the doors for larger financial institutions to be more comfortable providing traditional bank accounts to cryptocurrency companies, as well as actually provide custodial services for customers’ private keys," Hailey Lennon, a legal counselor to crypto and fintech companies, wrote, adding that the OCC acknowledged the difference between custodial services for fiat money versus cryptocurrency.
While many in the Cryptoverse celebrate a decision by the US Office of the Comptroller of the Currency to allow all federally chartered banks in the US to provide cryptoasset custody services to their customers, it also brings an "existential" risk to Bitcoin (BTC).
The OCC published a letter stating that all national and state banks and federal savings associations can hold their clients' digital assets. It also acknowledged BTC as "the first widely-adopted cryptocurrency."
"The OCC concludes that providing cryptocurrency custody services, including holding unique cryptographic keys associated with cryptocurrency, is a modern form of traditional bank activities related to custody services," their press release said. "Crypto custody services may extend beyond passively holding "keys"."
Acting Comptroller Brian Brooks, who joined OCC this year after leaving his position of an executive at major crypto exchange Coinbase, said:
"This opinion clarifies that banks can continue satisfying their customers' needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency."
The letter recognized the need for banks to leverage new technologies, particularly given the increasing digitization of the financial markets. Furthermore, national banks providing cryptocurrency custody might signal recognition of cryptos by these financial authorities, which could be reassuring to people who place their trust in traditional institutions. After all, the letter described fiat as an instrument that doesn't "have intrinsic value but that individuals and institutions are willing to use for purposes of purchase and investment because they are issued by a government."
"This clarification from the OCC may open the doors for larger financial institutions to be more comfortable providing traditional bank accounts to cryptocurrency companies, as well as actually provide custodial services for customers’ private keys," Hailey Lennon, a legal counselor to crypto and fintech companies, wrote, adding that the OCC acknowledged the difference between custodial services for fiat money versus cryptocurrency.
Fiat Will Be a Passing Fad In the History of Money - Deutsche Bank Strategist
Fiat money will be a passing fad in the long-term history of money, while gold, as a hedge against government money, is outperformed by equities in the long run, according to Jim Reid, Research Strategist at German banking giant Deutsche Bank.
In a note to clients on Wednesday, he admitted that even as he's 'a gold bug' due to the bleak future of fiat money "in my long-term work I’ve always found many commodities difficult to recommend on a buy and hold basis as most underperform inflation over the long run."
"Indeed, between 1860 and 1971 (when we moved from a gold-based system to fiat money) the real price of Gold fell by 75% and over 80% for Oil and Silver. Since then, Oil and Silver have only doubled in real terms and are still less than half their 1860 values, but Gold is up 7 times, double its 1860s real level. For context, however, the S&P 500 is up 22 times in real total return terms (including dividends) since 1971 and 40,000 times since 1860," Reid wrote.
He concluded that while gold is definitely a fiat money hedge, on a total return basis equities have tended to do much better in the long run.
Reid did not comment on the role of Bitcoin (BTC) in the long-term history of money when contacted by Cryptonews.com.
However, in December last year, Deutsche Bank Research said that the forces that hold the fiat money system together look fragile and, over the next decade, some of these forces could begin to unravel and demand for alternative currencies, from gold to crypto, could take off.
According to the researchers, it is possible that inflation will become more and more embedded in our system and doubts will rise about the sustainability of fiat money.
Fiat money will be a passing fad in the long-term history of money, while gold, as a hedge against government money, is outperformed by equities in the long run, according to Jim Reid, Research Strategist at German banking giant Deutsche Bank.
In a note to clients on Wednesday, he admitted that even as he's 'a gold bug' due to the bleak future of fiat money "in my long-term work I’ve always found many commodities difficult to recommend on a buy and hold basis as most underperform inflation over the long run."
"Indeed, between 1860 and 1971 (when we moved from a gold-based system to fiat money) the real price of Gold fell by 75% and over 80% for Oil and Silver. Since then, Oil and Silver have only doubled in real terms and are still less than half their 1860 values, but Gold is up 7 times, double its 1860s real level. For context, however, the S&P 500 is up 22 times in real total return terms (including dividends) since 1971 and 40,000 times since 1860," Reid wrote.
He concluded that while gold is definitely a fiat money hedge, on a total return basis equities have tended to do much better in the long run.
Reid did not comment on the role of Bitcoin (BTC) in the long-term history of money when contacted by Cryptonews.com.
However, in December last year, Deutsche Bank Research said that the forces that hold the fiat money system together look fragile and, over the next decade, some of these forces could begin to unravel and demand for alternative currencies, from gold to crypto, could take off.
According to the researchers, it is possible that inflation will become more and more embedded in our system and doubts will rise about the sustainability of fiat money.
Angry South Korean Crypto Traders Threaten to Quit over New 20% Tax
Active crypto traders in South Korea said they are prepared to walk away from the scene forever – slamming “unfair” 20% crypto trading tax law proposals unveiled by the government earlier this week. It is a sign, perhaps, of what traders in other nations will have to deal with in the near future, with draft crypto tax laws now being drawn up by governments all over the planet.
The proposals, which will be bundled with a range of other tax changes, are almost certain to be voted into law in the next parliamentary session, which will convene in autumn. This would allow the law to promulgate in October 2021, and will see anyone earning over around USD 2,100 in crypto trading profits obliged to cough up 20% of their earnings to the taxman.
Speaking to Cryptonews.com, Mira Kim, a South Korea-based blockchain consultant, stated,
“A lot of people really seem to think that it’s not fair, that the bar has been set too high. Stock traders, for example, are allowed to offset their tax payments for up to five years [depending on the size of their trading profits], but it doesn’t look like that will be an option for crypto traders.”
Kim added that many people have told her that going from paying nothing to paying 20% is just too much of a jump, that the government should introduce taxes more gently if it wants to make money from traders instead of just scaring them off.
"I don’t know if it’s just angry talk, but a couple of very active traders have told me that as of the end of this year, they will stop crypto trading for good,” Kim said.
Per Chosun, even legal experts agreed that crypto traders and stock traders were “clearly being treated differently.”
Those hoping to find legal loopholes to help them evade the taxman’s grasp might also find themselves frustrated.
An unnamed lawyer told the media outlet,
"Even [people trying to] bypass [the tax] by using an overseas exchange will eventually have to use a fiat ramp at a domestic exchange. That process will involve clarifying how you acquired the funds."
Eventually, said the lawyer, the tax authorities would be able to pick on the deal, and would come with questions. Furthermore, the taxman has been given the power to hit would-be crypto tax evaders with a second 20% tax bill should they fail to declare their earnings correctly.
Tax authorities might still struggle to identify and tax peer-to-peer (P2P) trading, said lawyers – a fact that could lead to a boom in harder-to-trace crypto deals.
Active crypto traders in South Korea said they are prepared to walk away from the scene forever – slamming “unfair” 20% crypto trading tax law proposals unveiled by the government earlier this week. It is a sign, perhaps, of what traders in other nations will have to deal with in the near future, with draft crypto tax laws now being drawn up by governments all over the planet.
The proposals, which will be bundled with a range of other tax changes, are almost certain to be voted into law in the next parliamentary session, which will convene in autumn. This would allow the law to promulgate in October 2021, and will see anyone earning over around USD 2,100 in crypto trading profits obliged to cough up 20% of their earnings to the taxman.
Speaking to Cryptonews.com, Mira Kim, a South Korea-based blockchain consultant, stated,
“A lot of people really seem to think that it’s not fair, that the bar has been set too high. Stock traders, for example, are allowed to offset their tax payments for up to five years [depending on the size of their trading profits], but it doesn’t look like that will be an option for crypto traders.”
Kim added that many people have told her that going from paying nothing to paying 20% is just too much of a jump, that the government should introduce taxes more gently if it wants to make money from traders instead of just scaring them off.
"I don’t know if it’s just angry talk, but a couple of very active traders have told me that as of the end of this year, they will stop crypto trading for good,” Kim said.
Per Chosun, even legal experts agreed that crypto traders and stock traders were “clearly being treated differently.”
Those hoping to find legal loopholes to help them evade the taxman’s grasp might also find themselves frustrated.
An unnamed lawyer told the media outlet,
"Even [people trying to] bypass [the tax] by using an overseas exchange will eventually have to use a fiat ramp at a domestic exchange. That process will involve clarifying how you acquired the funds."
Eventually, said the lawyer, the tax authorities would be able to pick on the deal, and would come with questions. Furthermore, the taxman has been given the power to hit would-be crypto tax evaders with a second 20% tax bill should they fail to declare their earnings correctly.
Tax authorities might still struggle to identify and tax peer-to-peer (P2P) trading, said lawyers – a fact that could lead to a boom in harder-to-trace crypto deals.
Ant Group Explains What its 100m per Day ‘Digital Assets’ Uploads Are
Alibaba affiliate Ant Group has revealed details about the nature of the 100 million+ “digital assets” it said are uploaded onto its AntChain blockchain network “every day.”
As reported, the Ant Group earlier this week announced that it has launched AntChain, calling it a “new technology brand for the Ant Group’s blockchain-based solutions.”
The company claimed that it “now has the largest productivity blockchain platform in China, with the ability to process and support one billion user accounts and one billion transactions every day.”
Cryptonews.com asked the Ant Group to clarify what these digital assets were, and the Chinese company responded, explaining via email,
“Digital assets are things like transaction records, shipping information, invoices, copyright certificates and so on. They are typically uploaded by companies using AntChain.”
The company added that in the case of shipping-related firms using the platform, multiple “digital assets” can be uploaded to use the platform to enable them to conduct faster and more effective transactions.
The firm stated that shipping companies, logistic sub-contractors as well as last-mile delivery vendors can all upload their records onto the AntChain network, so that each participant can know the status of shipping assignment without having to verify through traditional means, such as making a phone call or sending a fax.
The company also explained that its solution is finding a home in the world of trade and supply chain financing.
In the case of a supplier who “receives a receipt after sending a batch of components to a client factory,” the company noted that “usually the factory won't pay immediately but will pay in a few months’ time.”
Instead, the company stated,
“The supplier can then take the receipt to a bank and ask for a loan. However, traditionally it's very complicated and costly for the bank to verify if the receipt is real or not, but if the supplier, factory and the bank all use AntChain then the moment the factory issues the receipt (which represents a certain amount of account receivable), the bank will know instantaneously that it’s real and can then automatically assign a credit line based on the receipt for the supplier.”
The process of creating digital assets is completed, said Ant Group, when “the supplier can then use the credit line to purchase additional raw materials if another factory places a new order. In this case, every time the upload of a receipt happens, it is considered a digital asset.”
The Ant Group has made no secret of its fast-growing blockchain plans. Earlier this month, media outlets in China reported that its Ant Blockchain subsidiary was planning to build up a talent pool of blockchain specialists from some of the top tech universities in the world to last it “the next 20 years.”
The company is famously the operator of the Alipay e-pay solution, which together with Tencent-run WeChat Pay, has cornered around 15% of the Chinese payments market.
Alibaba affiliate Ant Group has revealed details about the nature of the 100 million+ “digital assets” it said are uploaded onto its AntChain blockchain network “every day.”
As reported, the Ant Group earlier this week announced that it has launched AntChain, calling it a “new technology brand for the Ant Group’s blockchain-based solutions.”
The company claimed that it “now has the largest productivity blockchain platform in China, with the ability to process and support one billion user accounts and one billion transactions every day.”
Cryptonews.com asked the Ant Group to clarify what these digital assets were, and the Chinese company responded, explaining via email,
“Digital assets are things like transaction records, shipping information, invoices, copyright certificates and so on. They are typically uploaded by companies using AntChain.”
The company added that in the case of shipping-related firms using the platform, multiple “digital assets” can be uploaded to use the platform to enable them to conduct faster and more effective transactions.
The firm stated that shipping companies, logistic sub-contractors as well as last-mile delivery vendors can all upload their records onto the AntChain network, so that each participant can know the status of shipping assignment without having to verify through traditional means, such as making a phone call or sending a fax.
The company also explained that its solution is finding a home in the world of trade and supply chain financing.
In the case of a supplier who “receives a receipt after sending a batch of components to a client factory,” the company noted that “usually the factory won't pay immediately but will pay in a few months’ time.”
Instead, the company stated,
“The supplier can then take the receipt to a bank and ask for a loan. However, traditionally it's very complicated and costly for the bank to verify if the receipt is real or not, but if the supplier, factory and the bank all use AntChain then the moment the factory issues the receipt (which represents a certain amount of account receivable), the bank will know instantaneously that it’s real and can then automatically assign a credit line based on the receipt for the supplier.”
The process of creating digital assets is completed, said Ant Group, when “the supplier can then use the credit line to purchase additional raw materials if another factory places a new order. In this case, every time the upload of a receipt happens, it is considered a digital asset.”
The Ant Group has made no secret of its fast-growing blockchain plans. Earlier this month, media outlets in China reported that its Ant Blockchain subsidiary was planning to build up a talent pool of blockchain specialists from some of the top tech universities in the world to last it “the next 20 years.”
The company is famously the operator of the Alipay e-pay solution, which together with Tencent-run WeChat Pay, has cornered around 15% of the Chinese payments market.
Bitcoin Mining Difficulty Set to Drop for the First Time in Two Months
The short string of very high highs in Bitcoin (BTC) mining difficulty is to be broken today according to the current estimates, with miners about to see a difficulty drop instead.
Per the current estimations by mining pool BTC.com, the difficulty will decrease by more than 3% to 16.8 T.
This would be the first drop since early June, and the smallest one since late February.
As reported, the months of June and July - or the last three difficulty adjustments in BTC mining difficulty, the measure of how hard it is to compete for mining rewards - have seen two major levels surpassed.
To be precise, one - the 16 T level - was surpassed yet again, but in such a way that it was completely skipped over, with the difficulty jumping from 15.78 T and hitting a new all-time high of 17.35 T two weeks ago.
The mining difficulty of Bitcoin is adjusted every two weeks (every 2016 blocks, to be precise) to maintain the normal 10-minute block time. Rising to more than 12 minutes on July 17, it is currently around 9 minutes, according to BitInfoCharts.com.
Following a drop in mid-July hashrate, or the computational power of the network, was on a rise until yesterday - going up 8.6% in five days. It's less than 2% lower than it was during the previous adjustment.
During the previous adjustment, the situation was somewhat different. Earlier this month, Tim Rainey, Chief Financial Officer of Greenidge Generation, New York-based fully compliant cryptocurrency mine-power plant hybrid, said that the reason behind the then rising hashrate while the market dropped is mainly newer-generation machines coming online from pre-orders, which were placed a few months ago.
At the same time, CEO of BTC.TOP, a Bitcoin mining pool and mining services provider, Jiang Zhuoer, estimated hat no significant percentage of mining machines would be forced to shut down inside China, which accounts for approximately 70% of the total hashrate.
Since then, there have been reports of devastating flooding coming out of the country, as well as the world's largest hydropower station, the Three Gorges Dam, being under major stress. However, industry observers said that this seems not to have had an impact on the miners in the country, though they noted that very little information of their exact state is available.
As long as hashrate remains above c. 110 EH/s with the BTC price of c. USD 9,300, "the best we can do is keep an eye on block times and speculate that Bitcoin mining isn't being impacted significantly," Daniel Frumkin, researcher at Braiins, the company behind Slush Pool and the Stratum V2 protocol for pooled mining, told Cryptonews.com last week.
The short string of very high highs in Bitcoin (BTC) mining difficulty is to be broken today according to the current estimates, with miners about to see a difficulty drop instead.
Per the current estimations by mining pool BTC.com, the difficulty will decrease by more than 3% to 16.8 T.
This would be the first drop since early June, and the smallest one since late February.
As reported, the months of June and July - or the last three difficulty adjustments in BTC mining difficulty, the measure of how hard it is to compete for mining rewards - have seen two major levels surpassed.
To be precise, one - the 16 T level - was surpassed yet again, but in such a way that it was completely skipped over, with the difficulty jumping from 15.78 T and hitting a new all-time high of 17.35 T two weeks ago.
The mining difficulty of Bitcoin is adjusted every two weeks (every 2016 blocks, to be precise) to maintain the normal 10-minute block time. Rising to more than 12 minutes on July 17, it is currently around 9 minutes, according to BitInfoCharts.com.
Following a drop in mid-July hashrate, or the computational power of the network, was on a rise until yesterday - going up 8.6% in five days. It's less than 2% lower than it was during the previous adjustment.
During the previous adjustment, the situation was somewhat different. Earlier this month, Tim Rainey, Chief Financial Officer of Greenidge Generation, New York-based fully compliant cryptocurrency mine-power plant hybrid, said that the reason behind the then rising hashrate while the market dropped is mainly newer-generation machines coming online from pre-orders, which were placed a few months ago.
At the same time, CEO of BTC.TOP, a Bitcoin mining pool and mining services provider, Jiang Zhuoer, estimated hat no significant percentage of mining machines would be forced to shut down inside China, which accounts for approximately 70% of the total hashrate.
Since then, there have been reports of devastating flooding coming out of the country, as well as the world's largest hydropower station, the Three Gorges Dam, being under major stress. However, industry observers said that this seems not to have had an impact on the miners in the country, though they noted that very little information of their exact state is available.
As long as hashrate remains above c. 110 EH/s with the BTC price of c. USD 9,300, "the best we can do is keep an eye on block times and speculate that Bitcoin mining isn't being impacted significantly," Daniel Frumkin, researcher at Braiins, the company behind Slush Pool and the Stratum V2 protocol for pooled mining, told Cryptonews.com last week.
Dovish Fed Remarks Send a Message to Bitcoin Holders Too
With the US Federal Reserve (Fed)’s Federal Open Market Committee (FOMC) signaling continued economic stimulus, crypto holders may be in for another run higher as it seems that the traditional market just got what it wanted - US stocks rose, dollar fell on dovish Fed remarks. (Updated at 18:30 UTC: updates in bold.)
The Fed said that it "is committed to using its full range of tools to support the US economy in this challenging time" and it decided to maintain the target range for the federal funds rate at 0 to 1/4 percent.
"The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals," it said.
Also, the Fed said that in order to support the flow of credit to households and businesses, over coming months it will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace. The central bank expects that this will sustain smooth market functioning and foster "effective transmission of monetary policy to broader financial conditions." In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations.
While the Fed was not expected to announce any major changes to its monetary policy today, the meeting was still seen as important for the traditional financial markets as players were largely expected a further easing of monetary policy to help markets – and in turn the larger economy – through the COVID-19-triggered downturn.
And with the traditional financial markets more or less demanding monetary policy support – which also may include ‘money printing’ – bitcoin (BTC) holders may also have something to look forward to as excess liquidity finds its way to scarce assets such as bitcoin and gold.
It is important for the Fed to sound “very dovish” today, Priya Misra, global head of rates strategy at TD Securities told the Financial Times, adding “the Fed knows that the market is going into this meeting with expectations. They need to feed it with something.”
“Dovish” might mean an easy monetary policy from the central bank, something which in theory should benefit hard assets. Conversely, a hawkish central bank focuses on limiting the supply of currency, which would typically strengthen fiat currencies and weaken hard assets like gold, silver, and bitcoin.
A similar expectation was also voiced by Ethan Harris, head of global economic research at Bank of America, who told Marketwatch that certain new tools may also be on the table for the Fed, and that the most likely action would be to publicly pledge to keep interest rates at zero until inflation reaches or moves above its 2% target.
“I think there is a good chance that it comes at some point, either in the fall if the economy doesn’t pick up, or some point down the road,” Harris was quoted as saying. “Yield-curve control is much easier than trying to fiddle around with quantitive easing], and is the one macro tool that would show a significant step forward,” he added.
Further, it was also expected that Fed Chairman Powell could use the occasion today to put pressure on members of the US Congress to get them to pass a new round of stimulus checks to US residents.
According to the Financial Times, Democrats in the US House of Representatives have already passed a bill that would secure jobless benefits of USD 600 per week to Americans, while Republicans in the Senate are considering a USD 200 per week plan. An agreement between the two sides would lead to checks being sent out, with some of the money possibly finding its way into bitcoin and other cryptoassets.
With the US Federal Reserve (Fed)’s Federal Open Market Committee (FOMC) signaling continued economic stimulus, crypto holders may be in for another run higher as it seems that the traditional market just got what it wanted - US stocks rose, dollar fell on dovish Fed remarks. (Updated at 18:30 UTC: updates in bold.)
The Fed said that it "is committed to using its full range of tools to support the US economy in this challenging time" and it decided to maintain the target range for the federal funds rate at 0 to 1/4 percent.
"The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals," it said.
Also, the Fed said that in order to support the flow of credit to households and businesses, over coming months it will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace. The central bank expects that this will sustain smooth market functioning and foster "effective transmission of monetary policy to broader financial conditions." In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations.
While the Fed was not expected to announce any major changes to its monetary policy today, the meeting was still seen as important for the traditional financial markets as players were largely expected a further easing of monetary policy to help markets – and in turn the larger economy – through the COVID-19-triggered downturn.
And with the traditional financial markets more or less demanding monetary policy support – which also may include ‘money printing’ – bitcoin (BTC) holders may also have something to look forward to as excess liquidity finds its way to scarce assets such as bitcoin and gold.
It is important for the Fed to sound “very dovish” today, Priya Misra, global head of rates strategy at TD Securities told the Financial Times, adding “the Fed knows that the market is going into this meeting with expectations. They need to feed it with something.”
“Dovish” might mean an easy monetary policy from the central bank, something which in theory should benefit hard assets. Conversely, a hawkish central bank focuses on limiting the supply of currency, which would typically strengthen fiat currencies and weaken hard assets like gold, silver, and bitcoin.
A similar expectation was also voiced by Ethan Harris, head of global economic research at Bank of America, who told Marketwatch that certain new tools may also be on the table for the Fed, and that the most likely action would be to publicly pledge to keep interest rates at zero until inflation reaches or moves above its 2% target.
“I think there is a good chance that it comes at some point, either in the fall if the economy doesn’t pick up, or some point down the road,” Harris was quoted as saying. “Yield-curve control is much easier than trying to fiddle around with quantitive easing], and is the one macro tool that would show a significant step forward,” he added.
Further, it was also expected that Fed Chairman Powell could use the occasion today to put pressure on members of the US Congress to get them to pass a new round of stimulus checks to US residents.
According to the Financial Times, Democrats in the US House of Representatives have already passed a bill that would secure jobless benefits of USD 600 per week to Americans, while Republicans in the Senate are considering a USD 200 per week plan. An agreement between the two sides would lead to checks being sent out, with some of the money possibly finding its way into bitcoin and other cryptoassets.
Russian Roulette: Central Bank Calls Crypto Investment ‘Gambling’
The crypto-skeptic Russian Central Bank (CB) has taken another swipe at crypto – equating investment in digital tokens to “playing roulette” or investing in “pyramid schemes.” Meanwhile, some experts have suggested that new Russian “suspicious funds” seizure laws could be applied to crypto holdings.
In a YouTube video released by the CB, the bank’s First Deputy Governor Sergey Shvetsov, stated,
“The CB, as a financial regulator, holds the position that the acquisition of cryptocurrencies does not represent an investment. It is more like a financial pyramid or a game of roulette. Gambling of this sort should not apply to the financial market and citizens buying cryptocurrencies should not be encouraged either by the state or by financial intermediaries.”
He also warned that tokens “are also used to circumvent anti-money laundering regulations.”
He added,
“We certainly do not support citizens’ investments in this criminal sector.”
The comments appear to show that the CB will attempt to hold no prisoners as it faces off against pro-crypto and pro-business advocates in the weeks ahead. An industry insider has told Cryptonews.com that the government is hoping to create a law governing crypto investment in the coming months. Doing so will involve striking a compromise between the CB and the pro-industry forces.
Elsewhere, RBC reported that crypto owners could come under threat from a new legal proposal from the nation’s Ministry of Finance.
The ministry wants to give law enforcement agencies the power to confiscate funds of citizens from affect owners of “capital” who cannot prove the legality of their funds’ acquisition. Seized funds will be transferred to the national pension fund, if the ministry gets its way.
RBC quotes Mikhail Uspensky, a partner at Taxology and a teacher at the Moscow Digital School, as stating that the measures would likely be applicable to bitcoin (BTC) and other cryptoassets. However, he added that attempts to police the nation’s crypto funds thus would be beset with technical difficulties that the authorities would likely struggle to overcome.
The crypto-skeptic Russian Central Bank (CB) has taken another swipe at crypto – equating investment in digital tokens to “playing roulette” or investing in “pyramid schemes.” Meanwhile, some experts have suggested that new Russian “suspicious funds” seizure laws could be applied to crypto holdings.
In a YouTube video released by the CB, the bank’s First Deputy Governor Sergey Shvetsov, stated,
“The CB, as a financial regulator, holds the position that the acquisition of cryptocurrencies does not represent an investment. It is more like a financial pyramid or a game of roulette. Gambling of this sort should not apply to the financial market and citizens buying cryptocurrencies should not be encouraged either by the state or by financial intermediaries.”
He also warned that tokens “are also used to circumvent anti-money laundering regulations.”
He added,
“We certainly do not support citizens’ investments in this criminal sector.”
The comments appear to show that the CB will attempt to hold no prisoners as it faces off against pro-crypto and pro-business advocates in the weeks ahead. An industry insider has told Cryptonews.com that the government is hoping to create a law governing crypto investment in the coming months. Doing so will involve striking a compromise between the CB and the pro-industry forces.
Elsewhere, RBC reported that crypto owners could come under threat from a new legal proposal from the nation’s Ministry of Finance.
The ministry wants to give law enforcement agencies the power to confiscate funds of citizens from affect owners of “capital” who cannot prove the legality of their funds’ acquisition. Seized funds will be transferred to the national pension fund, if the ministry gets its way.
RBC quotes Mikhail Uspensky, a partner at Taxology and a teacher at the Moscow Digital School, as stating that the measures would likely be applicable to bitcoin (BTC) and other cryptoassets. However, he added that attempts to police the nation’s crypto funds thus would be beset with technical difficulties that the authorities would likely struggle to overcome.
MXC Global Joins Hands With MenaPay To Expand Turkish Market Operations
Serving the community as a highly acclaimed digital trading platform, MXC Global has announced its strategic collaboration with MenaPay, a blockchain-powered mobile payment solution. The integration will aid the MXC network to proliferate deeper into the Turkish and Islamic marketspaces with necessary support from the MenaPay community.
Hello, Turkey#MXCExchange MXC has reached strategic cooperation with @menapayio, a compliance payment platform. #MenaPay will provide compliance legal currency channel for MXC, and as a channel agent, assist MXC to focus on developing markets in Turkey and Islamic countries. pic.twitter.com/eSTn8hHG1j
— MXC Exchange (@MXC\Exchange) July 30, 2020
MenaPay shines as the first, fully supported, and blockchain-leveraged non-bank mobile payment application and Super Application, which runs its operations in the MENA region. This geographical space depicts eighteen countries in the Middle East and North Africa, including Turkey, Saudi Arabia, and Egypt. The total population of the region is nearly 441 million and the financial management here is carried in accordance to the Islamic Finance rules and regulations.
Henry Wu stated, VP, MXC Group,
Henry Wu stated
With Turkey fast evolving as the third biggest market for cryptocurrency trading operations, all the big crypto firms are hustling hard to take advantage of this situation. The MXC Global team is striving to expand the Turkish market with crucial collaborations and partnerships with market leaders. On March 17, MXC Global became an active member of the Blockchain Turkey Platform (BCTR). The firm has taken several crucial steps to strengthen the hold in Turkey. The Turkish language has been included in the service page of the company, and the firm is working to create its Turkish community for better access to resources and opportunities in the country.
Çağla Gül Şenkardeş quoted, CEO, MenaPay,
Çağla Gül Şenkardeş quoted
BCTR works as an independent, non-profit organization designed with support from the Turkish Informatics Foundation (TBV). The platform aspires to lay the foundation of a system involving local and international participation from a wide range of sectors like the public sector, universities, science, business, and technology academics. It boasts of a strong customer base, which includes one of Turkey’s biggest bank AKBank and Turkey-based Beilbim, the Electronic Money and Payment Services firm.
The MXC Global network has entered to various important partnerships with leading portals. In January, it partnered with payment processing solution Banxa and launched MX/VND trading pair by teaming up with Bvnex, Vietnam-based compliance solution.
Serving the community as a highly acclaimed digital trading platform, MXC Global has announced its strategic collaboration with MenaPay, a blockchain-powered mobile payment solution. The integration will aid the MXC network to proliferate deeper into the Turkish and Islamic marketspaces with necessary support from the MenaPay community.
Hello, Turkey#MXCExchange MXC has reached strategic cooperation with @menapayio, a compliance payment platform. #MenaPay will provide compliance legal currency channel for MXC, and as a channel agent, assist MXC to focus on developing markets in Turkey and Islamic countries. pic.twitter.com/eSTn8hHG1j
— MXC Exchange (@MXC\Exchange) July 30, 2020
MenaPay shines as the first, fully supported, and blockchain-leveraged non-bank mobile payment application and Super Application, which runs its operations in the MENA region. This geographical space depicts eighteen countries in the Middle East and North Africa, including Turkey, Saudi Arabia, and Egypt. The total population of the region is nearly 441 million and the financial management here is carried in accordance to the Islamic Finance rules and regulations.
Henry Wu stated, VP, MXC Group,
Henry Wu stated
With Turkey fast evolving as the third biggest market for cryptocurrency trading operations, all the big crypto firms are hustling hard to take advantage of this situation. The MXC Global team is striving to expand the Turkish market with crucial collaborations and partnerships with market leaders. On March 17, MXC Global became an active member of the Blockchain Turkey Platform (BCTR). The firm has taken several crucial steps to strengthen the hold in Turkey. The Turkish language has been included in the service page of the company, and the firm is working to create its Turkish community for better access to resources and opportunities in the country.
Çağla Gül Şenkardeş quoted, CEO, MenaPay,
Çağla Gül Şenkardeş quoted
BCTR works as an independent, non-profit organization designed with support from the Turkish Informatics Foundation (TBV). The platform aspires to lay the foundation of a system involving local and international participation from a wide range of sectors like the public sector, universities, science, business, and technology academics. It boasts of a strong customer base, which includes one of Turkey’s biggest bank AKBank and Turkey-based Beilbim, the Electronic Money and Payment Services firm.
The MXC Global network has entered to various important partnerships with leading portals. In January, it partnered with payment processing solution Banxa and launched MX/VND trading pair by teaming up with Bvnex, Vietnam-based compliance solution.
Bitcoin to Gold Correlation Rises, Physical Metal Buyers Pay Premium
After seeing a decline for more than 3 months, the correlation between bitcoin (BTC) and gold is once again on the rise, with the sharpest increase seen in late July as gold, silver, and bitcoin have all soared higher in price. At the same time, investors are forced to pay premium over the spot prices for access to physical bullion.
According to data from Coin Metrics, the correlation between bitcoin, often referred to as digital gold, and the yellow metal is now back in positive territory, hovering around levels not seen since late April this year, after dipping into negative territory in June.
The news of an increasing correlation between the traditional safe-haven metals and bitcoin also comes as the US Mint, which produces investment-grade gold & silver coins as well as circulating US coinage, last week announced that they have had to reduce the number of employees working per shift due to the COVID-19 pandemic.
And according to a Bloomberg report from this week, citing an internal document from the Mint, the reduction in on-site staff has also forced the government-owned entity to reduce the number of gold and silver bullion coins it supplies to distributors.
The document, which was reportedly presented to authorized purchasers of US Mint bullion coins, said that the Mint’s West Point production facility is no longer able to produce gold and silver coins at the same time, meaning it must choose one metal over another, the report said.
The news of a reduction in the supply of physical gold and silver from the US Mint comes at a time when the physical precious metals market is seeing high demand from investors, who are already forced to pay premiums over the spot prices for access to physical bullion.
Judging from prices on APMEX, one of the largest online bullion dealers in the US, buyers of the US Mint’s American Eagle gold coin must now fork out a minimum of USD 2,115 per ounce, approximately 7.5% over the current spot price. Meanwhile, American Silver Eagles retails for USD 34.8 per ounce for the largest quantities, a whopping 47% above spot.
After seeing a decline for more than 3 months, the correlation between bitcoin (BTC) and gold is once again on the rise, with the sharpest increase seen in late July as gold, silver, and bitcoin have all soared higher in price. At the same time, investors are forced to pay premium over the spot prices for access to physical bullion.
According to data from Coin Metrics, the correlation between bitcoin, often referred to as digital gold, and the yellow metal is now back in positive territory, hovering around levels not seen since late April this year, after dipping into negative territory in June.
The news of an increasing correlation between the traditional safe-haven metals and bitcoin also comes as the US Mint, which produces investment-grade gold & silver coins as well as circulating US coinage, last week announced that they have had to reduce the number of employees working per shift due to the COVID-19 pandemic.
And according to a Bloomberg report from this week, citing an internal document from the Mint, the reduction in on-site staff has also forced the government-owned entity to reduce the number of gold and silver bullion coins it supplies to distributors.
The document, which was reportedly presented to authorized purchasers of US Mint bullion coins, said that the Mint’s West Point production facility is no longer able to produce gold and silver coins at the same time, meaning it must choose one metal over another, the report said.
The news of a reduction in the supply of physical gold and silver from the US Mint comes at a time when the physical precious metals market is seeing high demand from investors, who are already forced to pay premiums over the spot prices for access to physical bullion.
Judging from prices on APMEX, one of the largest online bullion dealers in the US, buyers of the US Mint’s American Eagle gold coin must now fork out a minimum of USD 2,115 per ounce, approximately 7.5% over the current spot price. Meanwhile, American Silver Eagles retails for USD 34.8 per ounce for the largest quantities, a whopping 47% above spot.
10Ks, 11Ks, Launching, Soaring and 20 Crypto Jokes
This week, the Cryptoverse saw BTC finally going over USD 10,000, and hitting USD 11,000 along the way, while BTC mining difficulty dropped. Also, XRP soared, LEND jumped, Solana rallied as FTX used its blockchain a basis for a new ecosystem project, Maker became the first DeFi protocol to reach USD 1 billion in total value locked, and there was talk again of litecoin leading bitcoin. Ethereum started training ETH 2.0 validators, and Augur launched its second iteration. And then we learned Ledger suffered a data breach.
In other crypto news: Philippines central bank may decide on CBDC issuance soon, the Fed sent a message to BTC holders too, four major South Korean banks will contribute to a blockchain-powered DeFi solution for foreign currency exchange rates, and SBI Holdings unveiled a digital tokens issuance platform on the Corda blockchain. Meanwhile, controversial Zeus Capital was hard at work trying to short LINK, while Chinese police arrested 27 suspects in the PlusToken scam. BTC.TOP’s B.TOP started offering "joint mining", and following major losses, Tetras Capital reportedly closed its doors.
Let’s laugh at some jokes now.
This week, the Cryptoverse saw BTC finally going over USD 10,000, and hitting USD 11,000 along the way, while BTC mining difficulty dropped. Also, XRP soared, LEND jumped, Solana rallied as FTX used its blockchain a basis for a new ecosystem project, Maker became the first DeFi protocol to reach USD 1 billion in total value locked, and there was talk again of litecoin leading bitcoin. Ethereum started training ETH 2.0 validators, and Augur launched its second iteration. And then we learned Ledger suffered a data breach.
In other crypto news: Philippines central bank may decide on CBDC issuance soon, the Fed sent a message to BTC holders too, four major South Korean banks will contribute to a blockchain-powered DeFi solution for foreign currency exchange rates, and SBI Holdings unveiled a digital tokens issuance platform on the Corda blockchain. Meanwhile, controversial Zeus Capital was hard at work trying to short LINK, while Chinese police arrested 27 suspects in the PlusToken scam. BTC.TOP’s B.TOP started offering "joint mining", and following major losses, Tetras Capital reportedly closed its doors.
Let’s laugh at some jokes now.
We love our clients, and by extension, we love our clients’ friends.😇
❓Who We Are❓
Breezecoin is a new blockchain company targeting the real estate market. We are currently listed on Bithumb Global, ProBit, CoinTiger, Sistemkoin, CoinMarketCap, CoinGecko Markets.
Coin holders benefit from monthly interest payments.
We are offering a new benefit for those who refer a friend to us:
💥 In the Affiliate program, you can earn without any INVESTMENT TERMS!
📨 All you need is to share your affiliate referral link with your friends!
📌Affiliate Packages Monthly Alternative Return Table
💰5000 - 5%
💰2500 - 4,5%
💰1000 - 4%
💰500 - 3,5%
💰250 - 3%
💰100 - 2%
💰50 - 1%
💥Special Promotion Offer!💥
Referrence Bonus 10% + 10%
👉Register to our backoffice by clicking on the link below until 8th of August, and earn extra 10%; in total - 20% bonus per refer!
👉e.g. If you will make only 2 sales per week, you will earn 1000 USD sacrificing just a little amount of your spare time.
Join our Affiliate Program group and get details
❓Who We Are❓
Breezecoin is a new blockchain company targeting the real estate market. We are currently listed on Bithumb Global, ProBit, CoinTiger, Sistemkoin, CoinMarketCap, CoinGecko Markets.
Coin holders benefit from monthly interest payments.
We are offering a new benefit for those who refer a friend to us:
💥 In the Affiliate program, you can earn without any INVESTMENT TERMS!
📨 All you need is to share your affiliate referral link with your friends!
📌Affiliate Packages Monthly Alternative Return Table
💰5000 - 5%
💰2500 - 4,5%
💰1000 - 4%
💰500 - 3,5%
💰250 - 3%
💰100 - 2%
💰50 - 1%
💥Special Promotion Offer!💥
Referrence Bonus 10% + 10%
👉Register to our backoffice by clicking on the link below until 8th of August, and earn extra 10%; in total - 20% bonus per refer!
👉e.g. If you will make only 2 sales per week, you will earn 1000 USD sacrificing just a little amount of your spare time.
Join our Affiliate Program group and get details
New Asian Crypto Behemoth Blessed But Merger Delayed
Japanese regulators have given their approval to a proposed merger between chat app giant Line and the Softbank-backed Yahoo Japan.
Per multiple media outlets, including Fn News, the Japan Fair Trade Commission, the government body responsible for regulating economic competition in the country, granted permission for the deal to go ahead.
However, the world may have to wait a little longer before the new tech giant makes its debut on the scene. Digital Today reported that although the operators had hoped to complete the merger at the end of September this year, it now looks like the firms will complete the deal on February 28 as a result of coronavirus pandemic-related delays.
Both firms have numerous crypto connections – and the deal could potentially create a new Asian crypto behemoth.
Line was founded by Naver, South Korea’s biggest search engine operator. It has since spun off into a separate company, headquartered in Japan – where it claims to have upwards of 81 million monthly active users, in addition to a large user base in Southeast Asia. However, Naver still retains a major interest in Line, with many South Korean media outlets referring to it as a “Naver subsidiary.”
Line operates a number of crypto exchanges, including the licensed Bitmax trading platform in Japan, which links directly to the Line chat app. It also operates the Bitbox exchange via a Singapore-based subsidiary.
Naver is also a major investor in blockchain-related business and blockchain gaming.
Yahoo Japan, meanwhile, is a 40% shareholder in the Taotao crypto exchange, which it has linked to the accounts of Yahoo Japan’s 50 million or so active account holders.
Yahoo Japan, which is 48% owned by Softbank, also operates PayPay, an e-pay platform that uses Ripple’s MoneyTap solution.
Also, it has been a momentous day for Line, which also today won regulatory permission to list its native link (LN) token on Bitmax. LN pairings will be added to Bitmax on August 6.
Japanese regulators have given their approval to a proposed merger between chat app giant Line and the Softbank-backed Yahoo Japan.
Per multiple media outlets, including Fn News, the Japan Fair Trade Commission, the government body responsible for regulating economic competition in the country, granted permission for the deal to go ahead.
However, the world may have to wait a little longer before the new tech giant makes its debut on the scene. Digital Today reported that although the operators had hoped to complete the merger at the end of September this year, it now looks like the firms will complete the deal on February 28 as a result of coronavirus pandemic-related delays.
Both firms have numerous crypto connections – and the deal could potentially create a new Asian crypto behemoth.
Line was founded by Naver, South Korea’s biggest search engine operator. It has since spun off into a separate company, headquartered in Japan – where it claims to have upwards of 81 million monthly active users, in addition to a large user base in Southeast Asia. However, Naver still retains a major interest in Line, with many South Korean media outlets referring to it as a “Naver subsidiary.”
Line operates a number of crypto exchanges, including the licensed Bitmax trading platform in Japan, which links directly to the Line chat app. It also operates the Bitbox exchange via a Singapore-based subsidiary.
Naver is also a major investor in blockchain-related business and blockchain gaming.
Yahoo Japan, meanwhile, is a 40% shareholder in the Taotao crypto exchange, which it has linked to the accounts of Yahoo Japan’s 50 million or so active account holders.
Yahoo Japan, which is 48% owned by Softbank, also operates PayPay, an e-pay platform that uses Ripple’s MoneyTap solution.
Also, it has been a momentous day for Line, which also today won regulatory permission to list its native link (LN) token on Bitmax. LN pairings will be added to Bitmax on August 6.
Bitfinex Steps up Hunt For Its Hackers, Promises USD 400m In Rewards
Major crypto exchange Bitfinex has offered a multi-million dollar reward to anyone who can lead it to the hackers responsible for the the theft of nearly bitcoin (BTC) 120,000 in August 2016 - even to the hackers themselves.
Today's value of the bitcoin stolen from Bitfinex four years ago is around USD 1.34bn.
"The aggregate rewards available under this programme could be worth up to approximately USD 400 million at the current BTC price if all bitcoins are fully recovered," the company said, adding that the hackers themselves will also be rewarded for returning the stolen property.
"We will reward anyone with information that can put us in direct contact with those responsible for the 2016 security breach at Bitfinex. ... The hackers will receive a share of the returned property," Paolo Ardoino, Chief Technology Officer at Bitfinex said.
The company added that "the bitcoins stolen minus recoveries in 2019 are worth USD 1.344 billion today, with 30 per cent of that amount equal to USD 403,288,427."
The reward will be given once the identity of the hackers is confirmed. These informants will get 5% of the total property recovered or "equivalent funds or assets at current market values." The hackers themselves can get their reward if they return the stolen bitcoin, and their share will be 25%.
"Any payments made to those connecting Bitfinex will work to ensure this can be done securely, thereby protecting the identities of all parties, and Bitfinex reserves the right to impose conditions on any transfers in order to verify claims and ensure a secure process," they added.
On August 2, 2016, hackers made 2,072 unauthorized transactions, representing BTC 119,755 in aggregate. As part of Bitfinex’s recovery plan, they provided BFX tokens to all affected users, with each token representing USD 1 of losses. The investigation into the breach by law enforcement is ongoing.
Major crypto exchange Bitfinex has offered a multi-million dollar reward to anyone who can lead it to the hackers responsible for the the theft of nearly bitcoin (BTC) 120,000 in August 2016 - even to the hackers themselves.
Today's value of the bitcoin stolen from Bitfinex four years ago is around USD 1.34bn.
"The aggregate rewards available under this programme could be worth up to approximately USD 400 million at the current BTC price if all bitcoins are fully recovered," the company said, adding that the hackers themselves will also be rewarded for returning the stolen property.
"We will reward anyone with information that can put us in direct contact with those responsible for the 2016 security breach at Bitfinex. ... The hackers will receive a share of the returned property," Paolo Ardoino, Chief Technology Officer at Bitfinex said.
The company added that "the bitcoins stolen minus recoveries in 2019 are worth USD 1.344 billion today, with 30 per cent of that amount equal to USD 403,288,427."
The reward will be given once the identity of the hackers is confirmed. These informants will get 5% of the total property recovered or "equivalent funds or assets at current market values." The hackers themselves can get their reward if they return the stolen bitcoin, and their share will be 25%.
"Any payments made to those connecting Bitfinex will work to ensure this can be done securely, thereby protecting the identities of all parties, and Bitfinex reserves the right to impose conditions on any transfers in order to verify claims and ensure a secure process," they added.
On August 2, 2016, hackers made 2,072 unauthorized transactions, representing BTC 119,755 in aggregate. As part of Bitfinex’s recovery plan, they provided BFX tokens to all affected users, with each token representing USD 1 of losses. The investigation into the breach by law enforcement is ongoing.
Grayscale to Bring Crypto Ads to US Homes Amid Economic Crisis
Grayscale, a major crypto asset management firm owned by Digital Currency Group (DCG) , is launching a national ad campaign in the US. It comes at the time of great socio-economic and geo-political uncertainties - which might be turning people's head towards financial and monetary alternatives.
2019 had a Grayscale 'drop gold' campaign, but 2020 is getting an ad campaign to promote crypto.
"Are you ready," asked in a tweet today Barry Silbert, founder and CEO of DCG and Grayscale, moving on to announce that a national ad campaign will be starting next week in the USA. Per Silbert, a TV ad will be shown on CNBC, MSNBC, FOX, and FOX Business. "We're going to brrring crypto to the masses," he added.
What this ad looks like, and what results it will produce, is yet to be seen. What is certain is that an ad promoting cryptoassets is arriving to people's homes, on major television networks, when the world is going through a major health crisis, caused by the COVID-19 pandemic, which subsequently triggered an economic downturn - both on global and local levels, forcing people to look for a safe haven for their assets.
Marcus Swanepoel, co-founder and CEO of crypto exchange Luno, is one of many industry insiders who said that this crisis is actually good for bitcoin (BTC).
Julian Sawyer, Gemini's Managing Director for Europe, told Cryptonews.com that recession, a more favourable regulatory view, a better understanding of the technology, and traditional investors turning to crypto are all beneficial for crypto, as people will save more and look to take control over their own finances.
Furthermore, it is the active involvement of the Cryptoverse itself that will help bitcoin skyrocket in these unstable times, Zac Prince, Co-founder of major US-based crypto lending startup BlockFi, told Cryptonews.com earlier this year.
Grayscale, a major crypto asset management firm owned by Digital Currency Group (DCG) , is launching a national ad campaign in the US. It comes at the time of great socio-economic and geo-political uncertainties - which might be turning people's head towards financial and monetary alternatives.
2019 had a Grayscale 'drop gold' campaign, but 2020 is getting an ad campaign to promote crypto.
"Are you ready," asked in a tweet today Barry Silbert, founder and CEO of DCG and Grayscale, moving on to announce that a national ad campaign will be starting next week in the USA. Per Silbert, a TV ad will be shown on CNBC, MSNBC, FOX, and FOX Business. "We're going to brrring crypto to the masses," he added.
What this ad looks like, and what results it will produce, is yet to be seen. What is certain is that an ad promoting cryptoassets is arriving to people's homes, on major television networks, when the world is going through a major health crisis, caused by the COVID-19 pandemic, which subsequently triggered an economic downturn - both on global and local levels, forcing people to look for a safe haven for their assets.
Marcus Swanepoel, co-founder and CEO of crypto exchange Luno, is one of many industry insiders who said that this crisis is actually good for bitcoin (BTC).
Julian Sawyer, Gemini's Managing Director for Europe, told Cryptonews.com that recession, a more favourable regulatory view, a better understanding of the technology, and traditional investors turning to crypto are all beneficial for crypto, as people will save more and look to take control over their own finances.
Furthermore, it is the active involvement of the Cryptoverse itself that will help bitcoin skyrocket in these unstable times, Zac Prince, Co-founder of major US-based crypto lending startup BlockFi, told Cryptonews.com earlier this year.
