Tag: Regulation

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CME Launches Ethereum Futures

CME Ethereum Futures

CME Group, the world’s leading and most diverse derivatives marketplace, today launched Ethereum futures, further expanding its crypto derivatives offerings in this emerging asset class.

“As institutional demand for transparent, exchange-listed crypto derivatives continues to increase, we are pleased to launch our new Ether futures contract,” said Tim McCourt, CME Group Global Head of Equity Index and Alternative Investment Products. “The addition of Ether, along with our liquid Bitcoin futures and options, will create new opportunities for a broad array of clients, whether they are looking to hedge ether positions in the spot market or gain exposure to this cryptocurrency on a regulated derivatives marketplace.”

“Just like in other capital markets, derivatives have become the avenue of choice for institutions to access cryptocurrencies,” said Sui Chung, CEO of CF Benchmarks. “Our status as a U.K. FCA regulated benchmark provider, whose compliance is regularly audited by Deloitte, gives institutions further confidence to enter the cryptocurrency space via the CME Ether futures contact based on our CME CF Ether-Dollar Reference Rate. For the first time, investors can gain exposure to the second-largest cryptocurrency by market cap via a U.S.-regulated futures contract. Just as Bitcoin futures paved the way for institutions to enter the crypto market in 2017, so CME Ether futures will allow CME Group clients to gain even greater exposure to the asset class.”

“CME Group has been an integral participant in the continued institutionalization of this asset class, and the launch of Ether futures is yet another milestone,” said Michael Moro, CEO of Genesis Global Trading Inc. “Genesis is excited to continue to work closely with CME in this effort.” 

“The launch of CME Ether futures is an exciting addition to the digital assets ecosystem as it evidences the ongoing maturation of the asset class as a whole,” said Michael Sonnenshein, CEO of Grayscale Investments. “At Grayscale Investments, we’ve seen enormous growth in investor interest for Ethereum and we’re excited to see the growing list of financial product offerings expanding access to digital currencies.”

CME Ether futures are cash-settled, based on the CME CF Ether-Dollar Reference Rate, which serves as a once-a-day reference rate of the U.S. dollar price of Ether. Ether futures are listed on and subject to the rules of CME.

As the world’s leading and most diverse derivatives marketplace, CME Group enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

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Bitcoin News Blockchain News Cryptocurrency News Ethereum News

LiteLink Intends To Acquire A Stake In Leading Canandian Crypto Exchange

LiteLink Technologies

LiteLink Technologies Inc. (OTC: LLNKF), a company focused in emerging technologies across growth sectors including: cryptocurrencies, blockchain, AI and cloud technologies, has announced that it has signed a Letter of Intent to complete an equity investment in CatalX Exchange Inc. (“CatalX”), Canada’s premier cryptocurrency exchange with over 40+ Altcoins available for purchase on CatalX.io.

CatalX is a Canadian-based FINTRAC registered and compliant digital asset exchange platform that specializes in cryptocurrency trading, blockchain and cybersecurity technology. CatalX has developed a scalable and modularized platform with a trading engine that can scale to millions of users in real time and cutting-edge cyber security system CyberSmoat®, which is patent pending.

Features of the CatalX platform include:

  1. Fully featured exchange order book
  2. $0 deposit fees and immediate funding (post-KYC)
  3. 0.15% trading fees
  4. Tightest buy and sell spreads in Canada under 0.1%
  5. Lowest rates to buy BTC in Canada

The proposed equity investment will be satisfied through the issuance of 37,500,000 common shares of LiteLink to CatalX and a cash payment to CatalX of C$500,000, and would result in LiteLink having ownership and control over 19% of the outstanding share capital of CatalX. In conjunction with closing of the investment, LiteLink will also pay a finder’s fee to an arm’s length party of 1,875,000 common shares of LiteLink. All securities issued in connection with the investment in CatalX will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities law.

“We are very excited to make this investment into CatalX, Canada’s leading cryptocurrency exchange, and gaining a stake in the expanding cryptocurrency market,” said LiteLink CEO Peter Green. “CatalX has had an outstanding year and continues to grow. In January 2021 alone, the company experienced 80% growth in new registrations quarter-over-quarter and has already clocked in $1.05 million in deposits in the first 21 days of January.

“In the last five days, CatalX has seen $525,000 in deposits, signaling big things to come moving forward as more and more businesses and investors turn their attention towards the crypto market.”

“CatalX has also experienced significant growth in its trading volumes, with average monthly volume hitting $1.37 million in December 2020. In the first 3.5 weeks of January, the trading volume was sitting at $2.85 million and is projected to reach $5 million for January, a 590% increase from its October/November average of $725,000. In the last five days alone, the trading volume was $1.36 million. In short, this company is growing very quickly.

“It isn’t surprising when you look at the growth of the overall market. Bitcoin just closed out one of the biggest years in its history and is expected to continue rallying in 2021 thanks to a surge of new developments coming into the crypto space this year, including the launch of Facebook’s bitcoin-inspired cryptocurrency and the US cryptocurrency regulations.

“Despite recent price volatility, Bitcoin is still up over 290% in the last year and is expected to stay elevated thanks to growing adoption of crypto among payment giants like PayPal and Square and rising interest among institutional investors.

“At the same time, the world’s second-largest cryptocurrency Ethereum has skyrocketed 300% over the last 12 months amid a flurry of interest in decentralized finance (DeFi)—using crypto technology to recreate traditional financial instruments such as loans and insurance with many DeFi projects built on top of the Ethereum network.

“Cryptocurrency is clearly here to stay, so we are very excited about building a strong relationship with Canada’s leading cryptocurrency exchange.”

The Company is at arms-length from CatalX.  Completion of the investment in CatalX is subject to a number of conditions, including, but not limited to, completion of due diligence, negotiation of definitive documentation and the receipt of any required regulatory approvals. The proposed investment is not expected to constitute a fundamental change for the Company, nor is it expected to result in a change of control of the Company, within the meaning of applicable securities laws and the policies of the Canadian Securities Exchange.

LiteLink would also like to announce that it has engaged North Equities to provide and manage a comprehensive six-month digital media marketing campaign for the Company for a total cost of $100,000. The Company has also engaged Djordje Kovic for a digital media and marketing campaign for four months for a total cost of $45,000.

LiteLink Technologies Inc. is a company focused on emerging technologies across growth sectors including: crypto, blockchain, AI and cloud technologies. Led by senior leaders and industry experts, LiteLink invests in and provides subject matter experts within portfolio companies to accelerate success and maximize value for shareholders.

CatalX.io is a Canadian-based is a digital asset exchange platform that specializes in cryptocurrency trading, blockchain and cybersecurity technology. As a fully regulated Cryptocurrency exchange with FINTRAC, CatalX has the highest standards in security and compliance and is partnered with world-trusted names in Blockchain technologies, risk management and financial solutions including Bittrex, Prime Trust, Trulioo and Stably to provide their users with a trusted, secure platform.

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Blockchain News Cryptocurrency News

Major European Cryptocurrency Payments Processor Expands To U.S.

Mercuryo

Mercuryo.io, via a partnership with Zero Hash, begins providing access to its cryptocurrency payment services for businesses and individuals in the United States.

Mercuryo offers seamless fiat-to-crypto payment gateway solutions to corporate and consumer clients. Since its launch, Mercuryo has been serving over 600,000 users and 180 crypto projects and prominent enterprises, becoming a leading digital asset payment gateway provider in Europe.

Mercuryo features two flagship solutions: a digital asset wallet and a widget service. While the wallet provides access to seamless crypto-to-fiat and fiat-to-crypto transactions, businesses can integrate the widget directly into their apps or websites. With just a few clicks customers can purchase digital assets in their local currencies via Visa and Mastercard cards. The widget also supports Apple Pay and Google Pay services, so clients can buy cryptocurrency this way too.

“We are excited about entering the US market. We are observing an interest from this region – 41% of payments on our platform are made in US dollars. Our vision is to build a financial infrastructure that provides customers worldwide with easy and fast access to cryptocurrencies,” says Petr Kozyakov, Mercuryo’s CBDO and co-founder.

Mercuryo’s partner firm is a registered Money Service Business under the oversight of FinCEN and a licensed Money Transmitter in over 40 US states, allowing the company to offer regulated payments solutions for all its customers across the country.

“We are pleased that Mercuryo is leveraging the Zero Hash compliance and technology infrastructure to service US customers. We empower innovators such as Mercuryo who are building Finance 2.0 by providing a turnkey and totally customizable solution for transactions in a regulated ecosystem,” Edward Woodford, Zero Hash’s CEO, stated.

To kickstart the expansion, Mercuryo closed a €2.5m seed funding led by the international venture capital fund Target Global.

The company’s ecosystem has achieved significant growth last year. Its turnover went up 50 times, reaching $75.5M in Q4 2020. The number of employees has also doubled.

Founded in 2018, Mercuryo.io is a global cross-border payments network that allows businesses to send and receive transactions for products and services using cryptocurrencies. The firm operates a leading digital asset payment gateway in Europe and has partnerships with over 150 market makers.

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Blockchain News Cryptocurrency News

Global Crypto Conference Available By Livestream January 27 – 29

Global Crypto Asset Conference

Co-hosted by Delio, the Global Crypto Assets & Finance Conference 2021, where virtual asset companies from around the world gather to forecast the global virtual asset market in 2021, will be held online for 3 days from the 27th to the 29th.

The ‘Global Crypto Assets & Finance Conference 2021’ is a conference specializing in virtual asset finance in which global virtual asset finance companies such as Korea, the United States, China, Singapore, and the EU participate in the global virtual asset market. It is a place to share key information on the virtual asset financial ecosystem, as well as to discuss the future financial development direction of the virtual asset market to investors.

This conference is expected to hold a general discussion on virtual asset finance such as derivatives trading, Defi, custody, OTC, wallet, mining, traditional finance, investment, law and institution, and is divided into three sessions with in-depth.

The conference begins with congratulatory remarks from the Chairman Kwan-seok Yoon and Rep. Byung-Wook Kim, who initiated and passed the special money law, from the National Policy Committee.

At the session 1 presentation on the first day, Glenn Woo, CEO of APAC at Ledger, Ben Zhou, CEO of Bybit, Daehoon Han, Analyst at SK Securities, Kevin Huang, founder of Cabin VC, and Justin Kang, head of Delio Strategic Marketing, diagnose the trends and implications of the virtual asset industry under the theme of ‘The Current Status and Prospect of the Crypto Asset Financial Market in 2021’.

In the session 2, the topic is ‘Successful Crypto Asset Investment Plan’, starting with Annabelle Huang Vice President of Amber Group, Vice President of Chain-up Jade Chen, Hexlant CEO Jinwoo Ro, Huobi University Dr. Yu Jianing, former head of Huawei’s chief blockchain scientist Ken Huang, Hyun-woo Lee CEO of Xangle, and Seung-hwan Lee of Coinness, will present on the second day.

In the last session, the topic is “Institutions and Regulations Related to Virtual Real Estate”, Deputy Director Lee Hae-Boong of the Financial Supervisory Service will give a presentation on “Recent Regulations Related to Virtual assets.

Next, Samuel Yim from Kim&Chang talks ‘License requirements for virtual asset service providers in 2021’ and Eric Chan, attorney of ShookLin&Bok law firm talks ‘Regulation of cryptocurrency currency in Singapore’, In-Wook Kwon of IW Tax Office said ‘Tax of Investors and Virtual Asset Businesses’, Louise Shen, CEO of Wenergy,’Characteristics and Differences in the Markets of China, Korea and Indonesia’, Liyan Consulting Founder Gu Yan Xi announces ‘merging of the bank and the securities industry’.

This conference is hosted by Delio and the Korea Crypto Finance Association (KCFA) and will be conducted online in consideration of the Corona 19 prevention. Anyone who is interested in the cryptocurrency market, such as virtual asset investors, the general public, institutions, companies, financial investors can watch it through the official Delio YouTube channel without prior registration.

Justin Kang, Head of Strategic Marketing at Delio, said, “In 2021, the domestic virtual asset market is entering into full-scale institutionalization through the implementation of the Special Money Act. “This conference will share the current status of the virtual asset market and key financial issues with domestic and oversea virtual asset finance companies. It will be a meaningful place to present the message.”

In 2020, the Korea Virtual Real Estate Finance Association (KCFA) held a parliamentary seminar for the ‘enactment of a law specializing in virtual assets’ in cooperation with Democratic Party Rep. Kim Byeong-wook in to discuss the necessity of enacting a law specializing in virtual assets for the development of the blockchain industry. He has represented the voice of the industry.

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Blockchain News Cryptocurrency News

Results Of Vaycaychella Cryptocurrency Survery

Cryptocurrencies

World Series of Golf, Inc. (OTC Pink: WSGF), parent company of Vaycaychella, today reported a very robust survey support of 95% in favor of the company’s cryptocurrency strategy in conjunction with the company’s overall fintech short-term rental property acquisition alternative finance business. 

In conjunction with the company’s newly developed cryptocurrency plans, management recently conducted a cryptocurrency survey. Today the company reported the survey results.

95% of respondents supported the company’s cryptocurrency strategy and 84% expressed interest in the purchase of real estate with cryptocurrency. Another 12% expressed interest in owning an interest in Vaycaychella through cryptocurrency. The full results are included below.

Vaycaychella is subsidiary operation of WSGF acquired last year that now represents the company’s primary business focus. A corporate name change is underway.

Vaycaychella has built a peer-to-peer (P2P) technology solution designed to connect short-term rental property buyers with alternative investors. The P2P application (app) is part of a fintech ecosystem solution suite for short-term rental property owners that includes a Visa Card solution and plans for a cryptocurrency component.

Over the past three years Vaycaychella has built a portfolio of short-term vacation property investments that would not qualify for conventional mortgages. Now the company is scaling its business model with the introduction of its P2P technology.

WSGF plans to beta launch its Vaycaychella P2P app to beta users in February 2021 with a production launch anticipated in June. 

Recently, the company announced plans to add a cryptocurrency strategy to its Vaycaychella P2P business model

Survey Results:

Cryptocurrency Experience

own one or more cryptourrencies                            55%
 ready to invest in cryptocurrency                            23%
 need to learn more before I am ready                      22%

Cryptocurrency Confidence

 believe cryptocurrency will replace cash and stocks            10%
 believe cryptocurrency will be an alternative to both          78%
 believe cryptocurrency is just a passing trend                      3%
 I don’t know                                                                      9%

Vaycaychella Cryptocurrency 

 support a Vaycaychella cryptocurrency strategy                     95%
 think Vaycaychella should stay out of cryptocurrency             5%

Vaycaychella Cryptocurrency Priority 

 capability to purchase properties with cryptocurrency               44%
 capacity to buy fractional ownership in one or more properties   40%
 cryptocurrency backed by ownership in Vaycaychella                   12%
 Vaycaychella should not have a cryptocurrency offering now        3%
 Other                                                                                              1%

Cryptocurrency Regulation

 understand cryptocurrency regulations                                 39%
 find cryptocurrency regulations confusing                            22%
 do not understand cryptocurrency regulations                      22%
 didn’t know there where cryptocurrency regulations             12%
 not interested in cryptocurrency regulations                          5%      

Vaycaychella
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Blockchain News Cryptocurrency News

FinCen Extends Comment Period For Proposed New Crypto Wallet Rules

Cryptocurrency Wallets

The Financial Crimes Enforcement Network (FinCEN) said Thursday it will reopen its proposed rulemaking period for an extra fifteen days for its crypto wallet reporting requirements, and another forty five days for a necessity on recordkeeping and counterparty reporting requirements.

First submitted Dec. 18, 2020, the proposals will require crypto exchanges to store name and address info for customers transferring more than $3,000 in cryptocurrency each day to private crypto wallets, and file currency transaction reports (CTRs) for customers transacting in more than $10,000 each day.

Critics of the rule said it will be technically out of the question for a few projects to comply because smart contracts and author decentralized tools don’t have name or perhaps address info to provide.

Maybe most important, the extension means Treasury Secretary Steven Mnuchin, who’s believed to be spearheading this effort, is going to be out of office by the time the comments period closes, perhaps allowing for FinCEN to better incorporate crypto industry feedback.

In the public notice, FinCEN wrote that the proposed CTR requirements “are essentially equivalent to the existing CTR reporting requirements that apply to transactions in currency,” and called the proposal “vital” to closing loopholes that terrorists or perhaps other malicious actors might use. This’s the part which is going to see a 15 day extension for comments.

FinCEN was less effusive about the recordkeeping and counterparty details, only writing, “FinCEN is actually providing a longer period in light of the relatively greater complexity of those elements of the proposed different issues and rule identified in comments received during the first comment period.”

This was the part that raised the most controversy from the blockchain industry , receiving more than 7,000 comments, with the vast majority of responders criticizing the pace or the rule by which it was being pushed through.

In a statement, the Chamber of Digital Commerce said if the proposed rule was implemented as is, “a series of unintended consequences that raise serious privacy concerns will have resulted from this rushed rulemaking process.”

The extension does not mean the rule won’t be implemented; it is still entirely possible that FinCEN is going to choose to run with the rule after the last version is actually published.

The clock for the comment period restarted when the document was posted in the Federal Register, the nation’s logbook, which was done yesterday, Friday, January 15.

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Bitcoin News Cryptocurrency News Ethereum News Litecoin News

Gemini Unveils Plans For Credit Card With Crypto Rewards

Gemini Crypto Credit Card

Gemini, a crypto exchange and custodian, today announced that it will launch the Gemini Credit Card, a credit card with cryptocurrency rewards. This effort has been accelerated by the acquisition of Blockrize, a fintech startup that has been building a credit card with cryptocurrency rewards. In preparation for launch later this year, Gemini has opened the Gemini Credit Card waitlist — providing Gemini customers, and those already on the Blockrize waitlist, with early access.

By combining Gemini’s simple, reliable, and safe platform with Blockrize’s rewards program, card holders will be able to seamlessly earn up to 3 percent back in bitcoin, or other cryptos, on every purchase they make with the Gemini Credit Card.

“The Gemini Credit Card will make it easier for any consumer to invest in bitcoin and other cryptos without changing their existing behavior, ” said Tyler Winklevoss, CEO of Gemini. “Rather than deciding how and when to buy crypto, customers can do so when making their everyday purchases. We’re excited to welcome the Blockrize team to Gemini and work together to continue to mainstream crypto.”

Those who join the waitlist, and the more than 10,000 people already on the Blockrize waitlist, will get early access. The Gemini Credit Card will work like a traditional credit card. It will be available to U.S. residents in every state and will be widely accepted wherever major cards are accepted. Rewards will be automatically deposited into a cardholder’s Gemini account.

For Gemini users or others interested in signing up to the waitlist, please visit: https://gemini.com/credit-card/waitlist. To sign up for a Gemini account visit: https://exchange.gemini.com/register.

This is Gemini’s second acquisition, following its acquisition of Nifty Gateway in November of 2019. Gemini continues to look for companies that align with its values and mission to empower the individual through crypto.

About Gemini

Gemini Trust Company, LLC (Gemini) is a cryptocurrency exchange and custodian that allows customers to buy, sell, and store more than 30 cryptocurrencies like bitcoin, bitcoin cash, ether, litecoin, and Zcash. Gemini is a New York trust company that is subject to the capital reserve requirements, cybersecurity requirements, and banking compliance standards set forth by the New York State Department of Financial Services and the New York Banking Law. Gemini was founded in 2014 by twin brothers Cameron and Tyler Winklevoss to empower the individual through crypto.

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Blockchain News

Future FinTech To Acquire 60% of Blocknance

Future Fintech Group

Future FinTech Group Inc. (NASDAQ: FTFT) a leading blockchain e-commerce company and a service provider for financial technology, today announced it has signed a term sheet with Blocknance Financial International SRL (“Blocknance”), a company incorporated in the Dominican Republic and the selling shareholders of Blocknance on December 30, 2020. Pursuant to the Term Sheet, the Company plans to acquire 60% of the total issued and outstanding shares of Blocknance.

Blocknance provides services for transactions between Bitcoin and other cryptocurrencies and fiat currencies, such as Dominican Peso, US dollar, Euro and Russian Ruble for customers through Bitcoin ATM machines and physical offices. All ATMs and physical offices are currently located in Santo Domingo, Punta Cana, La Romana, and Santiago de los Caballeros in the Dominican Republic.

Blocknance is headquartered in the Dominican Republic. Its subsidiary Cryptocana SRL works with financial consulting companies to help clients buy, rent and sell residential, commercial, local and international real estate using cryptocurrencies; another subsidiary Blockchain Finance International Inc. is registered in Wyoming, US and officially registered as a Money Service Business (MSB) which is regulated and administered by the Financial Crimes Enforcement Network (FinCEN). According to the framework agreement, the current total valuation of Blocknance is $1.6 million. Future FinTech or its wholly-owned subsidiary plans to acquire 60% of Blocknance through cash and shares with a purchase price of US $960,000. Future FinTech reserves the right to purchase additional shares from the seller.

Emmy Jude Fortune, the General Manager of Blocknance, stated, “Blocknance is one of the most advanced, semi-decentralized cryptocurrency exchange platforms on the market today. It provides a safe way to exchange Bitcoin and cryptocurrency with fiat currencies for individuals who want to use them to buy and sell goods or services and is the largest Bitcoin transaction service provider in the Caribbean. With the help of our new ATMs, more and more people use cryptocurrency for transactions. Our Punta Cana and Santiago office provides services to more than 10,000 tourists every year, because most tourists do not have local bank accounts. Our physical offices or ATMs provide convenient two-way exchange services of Bitcoin and other cryptocurrency to fiat currencies for tourists. Blocknance plans to increase the number of Bitcoin ATMs and expand them to Europe, Asia and other regions pursuant to local regulatory requirements in 2021. FTFT has a great management team in financial services and blockchain technology. The union with FTFT can rapidly expand our operations, continuously improve customer experience and satisfaction, increase service scenarios, and meet the needs of more and diversified customers. “

Shanchun Huang, Chief Executive Officer of Future FinTech said, “Blockchain technology and its application is an important strategic segment and business component of FTFT. Building a complete blockchain financial service system is an important development plan of FTFT. We have been looking for valuable blockchain technology companies to dock with our existing resources. When Bitcoin holders could convert Bitcoin into cash at ATM as Blocknance does in Dominican Republic, cryptocurrency will be gradually accepted by more and more people. We believe that the investment in Blocknance can further expand our business, bring additional income to the Company, and we hope to eventually create a channel that can connect Bitcoin and other cryptocurrencies with the services of mainstream financial institutions under applicable laws and regulations. “

About Future FinTech Group Inc.

Future FinTech Group Inc. is a leading blockchain e-commerce company and a service provider for financial technology incorporated in Florida. The Company’s operations include a blockchain-based online shopping mall platform, Chain Cloud Mall (“CCM”), a cross-border e-commerce platform (NONOGIRL), an incubator for blockchain based application projects. The Company is also engaged in the development of blockchain based e-Commerce technology as well as financial technology.

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Blockchain News Cryptocurrency News

The US Treasury OCC Issues New Guidance Allowing US Banks To Use Public Blockchains And Stablecoins As A Payment Method

U.S. Treasury OCC

One Major Step Closer To Mass Adoption

Right in accordance with our forecast that 2021 will be a tremendous year for cryptocurrency building into the next 4-year cycle high due in December, the U.S. Treasury of the Office of the Comptroller of the Currency (OCC) has just announced that national banks and federal savings associations can treat public blockchains as infrastructure similar to SWIFT, ACH and FedWire. In addition, stablecoins like USDC can be used as electronic stored value as well as a payment method.

The significance of this is simply astounding.  

This places blockchain and cryptocurrencies on a path towards all major financial and economic activity being executed on-chain. It is extremely encouraging to see such forward thinking support from the largest regulator of national banks in the United States.

The new guidance from the OCC provides assurance for banking institutions:

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today published a letter clarifying national banks’ and federal savings associations’ authority to participate in independent node verification networks (INVN) and use stablecoins to conduct payment activities and other bank-permissible functions.

“While governments in other countries have built real-time payments systems, the United States has relied on our innovation sector to deliver real-time payments technologies. Some of those technologies are built and managed by bank consortia and some are based on independent node verification networks such as blockchains,” said Acting Comptroller of the Currency Brian P. Brooks. “The President’s Working Group on Financial Markets recently articulated a strong framework for ushering in an era of stablecoin-based financial infrastructure, identifying important risks while allowing those risks to be managed in a technology-agnostic way. Our letter removes any legal uncertainty about the authority of banks to connect to blockchains as validator nodes and thereby transact stablecoin payments on behalf of customers who are increasingly demanding the speed, efficiency, interoperability, and low cost associated with these products.”

The agency letter concludes a national bank or federal savings association may validate, store, and record payments transactions by serving as a node on an INVN. Likewise, a bank may use INVNs and related stablecoins to carry out other permissible payment activities. In deploying these technologies, a bank must comply with applicable law and safe, sound, and fair banking practices.
You can read the full statement here.

After years of patience, 2021 could very well be the year of celebration in the world of crypto.

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Cryptocurrency News Ethereum News Litecoin News

Bittrex Announces Delisting 3 Privacy Coins

Cryptocurrency exchange Bittrex announced impending delistings of three privacy cryptocurrencies as of Jan. 15.

As privacy coins, the three fit into a category that is increasingly under threat from government regulators worldwide.

A not-so-Happy New Year for privacy enthusiasts?

On Jan. 1, the Bittrex cryptocurrency exchange posted a notice on their website that effective Jan. 15, Monero, Dash, and ZCash would be removed from their trading platform. These three are privacy tokens, which anonymize transactions.

The notice states:

You must perform any trades with these tokens no later than Friday, January 15, 2021, 23:00 UTC.

After the markets are removed, Bittrex generally seeks to provide users up to 30 days to withdraw any delisted tokens, but in certain instances the withdrawal period may be shortened. Users should withdraw any tokens before the posted withdrawal deadline.

Privacy tokens, as the name suggests, are relatively difficult for investigators to track. Their use is rising, and some tokens have been in regulators’ sights for a while.

Back in November, Bittrex announced the delisting of 23 tokens for a variety of performance or regulatory issues. The exchange also singled out Grin at that time as a possible target for future delisting. Readers should note that Bittrex also pointed to MEME and VRC for possible delisting.

Bounty program

 In Sep. 2020,  the Internal Revenue Service of the US government offered  up to $625,000 to the team(s) that could crack Monero’s or the Lightning Network’s encryption. The announcement carried a sense of urgency, considering that tight time frames were included in the rules. In particular, Monero seems to be a thorn in the regulators’ side. The request for proposals specified that a Lightning Network on Bitcoin monitoring tool already existed. However, tools for Lightning on Litecoin and on Ethereum were needed. 

Europe is seriously determined to thwart privacy.

In October, EUROPOL, the EU’s united policing body, released the Internet Organized Crime Threat Assessment (IOCTA) for 2020. Privacy coins ranked among the top threats. Mixing services and anonymization are evolving, the report noted. Moreover, crypto-enabled crime adapts quickly to the changing landscape.

Communications encryption 

Governments focused their attention on more than privacy coins in 2020. They turned to encrypted communication as well, and saw a threat. The European Union emphasized this in early November. The EU Council of Ministers issued a proposal regarding a resolution forbidding end-to-end encryption of communications. This proposal affected What’s App and Signal in particular. 

While the proposal was non-binding, it shows where the EU is heading in terms of privacy. The rest of the world is following close behind.

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Cryptocurrency News Ethereum News

Japanese Tech Giant Gets U.S. Approval For JPY Stablecoin

GMO Internet Inc., the Tokyo-based Internet conglomerate, has won approval from the New York Department of Financial Services to establish a limited purpose trust company, GMO-Z.com Trust Company, Inc. (“GMO Trust”) and issue the world’s first regulated JPY-pegged stablecoin (Ticker: GYEN).

To win approval for the trust, the company had to meet stringent requirements for its cybersecurity programs, as well as meet federal standards for anti-money laundering and economic sanctions. The approval allows the company to launch both JPY-pegged stablecoin (Ticker: GYEN) and USD-pegged stablecoin (Ticker: ZUSD). Both GYEN and ZUSD can be purchased and redeemed directly from GMO Trust. In addition, GMO Trust has partnered strategically with digital asset exchanges that operate globally to enhance the accessibility and liquidity of the tokens.

There are currently other regulated stablecoins, but none are pegged to JPY. Therefore, GMO Trust will take the lead in launching the first regulated JPY-pegged stablecoin along with the US dollar-pegged stablecoin in the U.S., and to be available globally, in January, 2021. These digital assets can be leveraged by institutional firms and retail users for trading, institutional hedging, arbitrage, settlements, and payments. For more information on GMO Trust, please visit https://stablecoin.z.com/

The stablecoins will:

  • Be 100% fiat-backed and always redeemable 1:1.
  • Be available on exchanges globally among the most liquid digital assets.
  • Be powered by Ethereum‘s leading blockchain-based technology.

A monthly attestation report will be disclosed by certified public accountants to verify the availability of assets to support the value of the stablecoins. GMO Trust will issue and redeem GYEN and ZUSD directly to reduce fees while improving security and transparency.

GMO Internet Group has been a global market leader in the Internet infrastructure, Internet finance and digital asset space since its inception in 1991.

It operates the world’s largest online FX trading platform, claiming the top global spot in trading volume within the FX space for seven consecutive years. It also operates a Japanese Financial Services Agency (FSA) regulated Internet bank. In 2017, it launched a digital currency exchange regulated by the FSA and a large Bitcoin mining operation. In 2018, it began research and development for the launch of GYEN.

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Cryptocurrency News

U.S. Treasury Releases Regulatory Statement On Stablecoins

The United States President’s Working Group on Financial Markets, operating as part of the U.S. Treasury Dept. issued a “Statement on Key Regulatory and Supervisory Issues Relevant to Certain Stablecoins.” The President’s Working Group on Financial Markets is responsible for enhancing the “integrity, efficiency, orderliness, and competitiveness” of US financial markets.

According to the working group, the new regulations specifically target stablecoins:

“These requirements address a range of policy objectives, including safety and soundness, countering illicit finance, end-user protection, and market integrity. In particular, stablecoin arrangements with greater potential scale, complexity, and interconnectedness should consider.”

Why is the Group Considering the Regulation?

The document states that the group views stablecoins as a potential regulatory risk. The document states:

“Depending on its design and other factors, a stablecoin may constitute a security, commodity, or derivative subject to the U.S. federal securities, commodity, and/or derivatives laws. If so, the federal securities laws,3 and/or the Commodity Exchange Act (“CEA”),4 would govern the stablecoin itself, transactions in, and/or participants involved in the stablecoin arrangement. Whether a stablecoin is a security, commodity, or derivative will depend on the relevant facts and circumstances.”

All stablecoins won’t be considered securities or derivatives, but they may be depending on their makeup.

This statement is significant given the members that make up the President’s Working Group of Financial Markets. They include the Secretary of the Treasury, the Chairperson of the Board of Governors of the Federal Reserve, the Chairperson of the Commodity Futures Trading Commission, and the Chairperson of the Securities Exchange Commission (SEC).

One notable member is SEC Chairperson Jay Clayton, who, as head of the watchdog, was involved in the recent charges brought against Ripple. On Wednesday, the SEC filed a suit against Ripple and two of its top executives for conducting an unregistered sale of securities.

The SEC states that they perceive XRP, the native currency of the Ripple network, to be a security and not a currency like bitcoin or ethereum.

This classification means that Ripple, it’s co-founder, and current CEO are responsible for the sale of unregistered securities and will be held accountable.

As the cryptocurrency market continues to mature, regulatory bodies will likely scrutinize cryptocurrencies with additional oversight.

What is a Stablecoin?

Summary: Stablecoins are a new class of digital currency. Although the concept of stablecoins was considered years ago, only recently has it received widespread attention. Stablecoins refer to a collection of currencies that derive their value solely from an external reference point. Stablecoins can best be classified on the basis of their underlying working mechanisms, namely, Fiat-collateralised, algorithmic, and cryptohash-based stablecoins. The Fiat-Collateralised variety are the most widely recognised stablecoins as they trade against financial instruments like credit and deposit bills. The algorithmic variety of stablecoins, on the other hand, trade against a basket of global currencies (the basket of which they are traded) and are not linked to any particular financial instrument.

One of the advantages associated with stablecoins is their use as an asset. By understanding which option provides the best fit for your circumstances, you will be able to effectively hedge against any potential financial setbacks. When looking at buying, selling, or trading a stablecoin, it is important to consider the factors surrounding the particular coin. Another factor that is crucial is to determine whether one wants to purchase, sell, or trade non-collateralized stablecoins – these are coins that are not backed by any collateral such as certificates of deposit or bank notes. Finally, it is important to consider whether one wants to invest in algorithmically-derived stablecoins (which trade on algorithms instead of actual commodities) or non-algorithmic stablecoins (which trade based on supply and demand fundamentals).

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Cryptocurrency News Ripple News

SEC Lawsuit Filed Against The XRP Firm

The Securities and Exchange Commission (SEC) has charged Ripple — the company closely associated with XRP — along with its executives Brad Garlinghouse and Christian Larsen for selling as well as the ongoing sale of over $1.3 billion worth of XRP to the public.

In the filing, the SEC charged since 2013 up to the present time, the defendants have sold over 14.6 billion XRP in return for cash or other consideration to fund Ripple’s operations. 

The SEC said Ripple never filed a registration document, and, therefore, it never provided investors with information all companies that sought investment from the public regularly supplied.

The SEC lawsuit alleges that Ripple broke securities laws by selling XRP directly to consumers across exchanges. According to the complaint filed by The Alliance for Financial Innovation (AFI), Ripple acted in bad faith by not requiring users to sign a disclaimer when offering the discounted currency. Additionally, according to the complaint, Ripple instructed investors to disregard the “Ripple Statement” which is issued by the SEC when promoting the discounted currency. In addition, the complaint claims that Ripple promoted the statement on its website and in emails to customers without disclosing that the advertising was deceptive and in violation of Securities and Exchange Commission (SEC) guidelines. As a result, for lack of any express requirement that customers sign a disclaimer or other agreement, investors have reportedly been sending money to the XRP office for their own private investments. As a result, due to the lack of a disclaimer, the SEC found that Ripple broke securities laws by advertising the discounted currency and not requiring users to purchase a product as a security in advance of making a purchase.

The SEC on Wednesday formally sued Ripple, alleging that its co-founder Christian Larsen and CEO Bradley Garlinghouse “created an information vacuum” that allowed them to sell XRP into a market that only had information they chose to share.

According to the SEC’s lawsuit, the duo ignored legal advice that the cryptocurrency could be considered an investment contract and therefore was a security.

“From a financial perspective, the strategy worked,” raising at least $1.38 billion “over a years-long unregistered offering of securities,” the SEC said. “Ripple used this money to fund its operations without disclosing how it was doing so, or the full extent of its payments to others to assist in its efforts to develop a ‘use’ for XRP and maintain XRP secondary trading markets.”

Larsen and Garlinghouse both fervently have denied the SEC’s allegations, publicly arguing that XRP is a currency and should not have to be registered with the SEC as an investment contract. The company has also questioned the lawsuit’s timing – SEC Chairman Jay Clayton is soon to step down – and said the U.S. government and other regulators had previously given XRP currency status.

CEO of Ripple
Categories
Bitcoin News Cryptocurrency News

Bitcoin Fund Update

One of the latest attempts to raise money for a start up venture in the digital currency space is the creation of the Bitcoin Fund, which will allow start up companies in the space to raise money without having to rely on venture capitalists. According to the documentation, the proposed fund would be classified as a private equity fund. However, Skybridge declined to reveal the total number of planned investments, but the required minimum from an individual investor would be $50,000. The offering would be under the SEC’s Reg D exclusion, which means that only those wishing to invest directly with the SEC can participate. Although participation in a venture capital fund has become increasingly difficult for new businesses, it is still possible to raise funds using the Reg D exception.

The proposal states that investors will receive the proceeds from the sale of a discounted percentage of the market price of one of many potential assets that are included in the proposed fund. While there is no guarantee that the selected sector will be a profitable one, it is expected that the management fee will be proportional to the profitability of the chosen investment. It is also not clear from the proposal how the investor would be compensated for the market to gain from the selling of the portion of the company’s stock included in the fund. This information should be clearly defined in the documentation accompanying the proposal, and if not, should be clarified in the shareholders’ agreement or operating agreement of the company.

The creation of the bitcoin fund is part of the wider effort by several large financial institutions to diversify their investment portfolio. In the past, hedge funds have generally focused on exchanging floating exchange rates between currencies, or on particular economic areas. The creation of the fund will allow more investors to participate in the exchange trading while maintaining their traditional hedge fund roles. This may open up new investment opportunities for investors in cryptocurrencies.