Japanese Giant Rakuten Enters Crypto Trading Business

Japanese Giant Rakuten Enters Crypto Trading Business

                             Japanese Giant Rakuten Enters Crypto Trading Business 101

In another victory for the crypto side of Japan, Rakuten Wallet, a cryptocurrency exchange and a subsidiary of Japanese e-commerce platform Rakuten, announced today the launch of a spot trading service for crypto assets. The Rakuten Wallet app is available for Android users, while the iOS version to be released in an unspecified future, the company said. Currently, bitcoin (BTC), ethereum (ETH), and bitcoin Cash (BCH) can be traded. Opening and managing an account, purchasing or selling cryptos, as well as depositing JPY or cryptocurrency are all free, while withdrawals of JPY and crypto come with fees.

In regards to safety, Rakuten Wallet stated that:

  • it separates money deposited by customers from the company's funds in a Rakuten Trust Co., Ltd. trust account
  • crypto assets owned by Rakuten Wallet and customers are physically separated and managed
    cryptographic assets owned by customers are managed with cold wallets and private keys are managed through a multisignature scheme
  • two-step authentication is required when logging in and withdrawing money or assets.

Rakuten was awarded a cryptocurrency exchange operating permit from the regulatory Financial Services Agency (FSA) in March 2019. Also as reported, Rakuten is gearing up for a flurry of cryptocurrency-related activities – expanding on the scope of a forthcoming token launch and lobbying Tokyo for legislative reform. Rakuten is one of Japan’s biggest companies, and has been dubbed “Japan’s Amazon.” In addition to its e-commerce business interests, it also operates a mobile network and financial services. The company also owns chat app Viber, and plans to launch a Rakuten Coin.

Article Produced By
Sead Fadilpaši?

Sead is a staff journalist at Cryptonews.com who covers cryptocurrency and blockchain news daily, writes analysis pieces, tests blockchain and cryptocurrency products. He's based in Sarajevo, Bosnia and Herzegovina. Prior to joining Cryptonews.com he was a freelance, also was a journalist for Al Jazeera web. He spends his free time in music studios, recording songs for movies and cinema. Loves to break gadgets so he could fix them, enjoys exploring new music and loves tasty and equally unhealthy food.

https://cryptonews.com/news/japanese-giant-rakuten-enters-crypto-trading-business-4474.htm

Why Are S Korean Crypto Projects Going Cool on Domestic Exchanges?

Why Are S Korean Crypto Projects Going Cool on Domestic Exchanges?

                                

South Korean cryptocurrency projects are abandoning domestic exchanges

in favor of overseas platforms, per a new report. Fn News states that some of the country's newest crypto projects are looking to list in “hotter” markets, such as Singapore and the United States. The bear market of 2018 took a near-fatal toll on many of South Korea’s exchanges, with crypto fever soon turning into a massive slowdown that – despite a recovery in 2019 – has failed to reignite the domestic industry. The industry comprises some 200 exchanges. The report makes note of three factors it says are driving the change:

Low trading volumes in South Korea

Per Fn News’ calculations, only five of the global top 100 exchanges (by trade volumes) are now based in South Korea. “It is no exaggeration to say that outside the market leaders, 97% of domestic exchanges are in danger of closure due to low trading volumes,” author Kim So-ra writes. The news outlet quotes a crypto project CEO as stating, “We were discussing a possible listing with the Prixbit exchange on August 7. Then, two days later, we read in the news that it was closing down!”

Regulatory difficulties

Banking remains a very thorny problem for South Korean exchanges. The country’s “big four” exchanges – market leaders Upbit, Korbit, Bithumb and Coinone – have agreements with major commercial banks that allow them to adhere to government guidelines that require users to verify their accounts with real names and social security numbers. They have also agreed to abide by guidelines that require corporate and customer accounts to be handled separately.

And there are signs that the “big four” are now set to ramp up their restrictions on customer activities yet further, possibly moving as a response to government pressure. Smaller exchanges, however, would prefer to use their corporate accounts to conduct the entirety of their banking activities. This has led to accusations that “blind spots” can appear in crypto banking operations – a factor that leads many banks to reject trade with smaller cryptocurrency exchanges.

Overseas exchanges are looking for South Korean customers

Many platforms are now actively wooing South Korean projects and investors, adding Korean won markets. The report makes mention of exchanges like BW, which already lists South Korean projects Ziktalk, Storychain, PayExpress and Sigma Chain, and plans to open won trading “later this month.” The Singapore-based company began offering transaction fee-free deals to South Korean customers last week to celebrate Korean Liberation Day (August 15).

Watch the latest reports by Block TV.Much-talked about projects like MediBloc, Bezant and Temco are also listing outside South Korea.The Singapore-based Bitholic exchange – soon to rebranded as Bithumb Singapore – also has a “number of domestic blockchain project portfolios” among its listings, notes Kim.A number of South Korean-owned exchanges are actively pursuing overseas expansion – with all four “big four” exchanges opening branches in either the United States or other Asian cities in recent months.
Article Produced By
Tim Alper

Tim Alper is a British, South Korea-based journalist, a regular contributor to Cryptonews.com, who covers cryptocurrency and blockchain related news daily, writes in depth analysis pieces about the latest trends in the cryptocurrency and blockchain space. Tim has over 12 years of media experience. He has written for the BBC, the Guardian, the Jewish Chronicle, Chosun Ilbo and many other media outlets, covered cryptocurrency and blockchain related news. He has also collaborated on media projects with the likes of Samsung, Sony, LG, Hyundai, Korean Air, TÜV SÜD and Shell.

 

 

If Steemit and Medium Had a Baby: Publish0x Rewards Both Authors and Readers in Crypto

If Steemit and Medium Had a Baby: Publish0x Rewards Both Authors and Readers in Crypto

Publish0x, a crypto-agnostic blogging platform, has launched

with the intention to change the publishing industry by rewarding not just authors but also readers with crypto.

No ICO: Publish0x is Crypto-Agnostic

Publish0x didn’t conduct an ICO or raise funds, and it doesn’t have its own token. It is crypto-agnostic, and aims to integrate multiple tokens which can be used to send tips. The business model is to offer different projects the chance to sponsor the site and give out larger tips to all users.Although still in beta, there are over 1,000 users, tipping hundreds of times daily, and several coins have signed up to blog from the platform including Selfkey ($KEY), SpectreCoin ($XSPEC), Syscoin ($SYS), OneRoot ($RNT), Loopring ($LRC), Bounty0x ($BNTY), Banano ($BAN), Qubitica ($QBIT) and others.

Earn Crypto While Supporting the Project You Love

The biggest supporters form some of the best projects in the crypto space have already understood the powerful benefits Publish0x is offering. Hydrogen Project ($HYDRO) and Basic Attention Token ($BAT) supporters have written articles that raised awareness about their favorite projects, and have earned crypto while doing it!

Earn Crypto for Reading: How it Works

When you scroll to the bottom of any article on Publish0x, you will see a “tipper.” The reader chooses what percentage of the tip to keep to himself, and what percentage to give to the author. The minimum percentage of the tip that goes to the author is 20%. All of the tips are completely free to both author and reader. Unlike blockchain-based blogging platforms like Steemit and Minds, Publish0x is crypto-agnostic and doesn’t have its own token. Rather, it pays out in any number of ERC-20 compliant tokens that can be traded on different exchanges.

Article Produced By
Investinblockchain
Editorial Staff

https://www.investinblockchain.com/publish0x-rewards-both-authors-readers/

Crypto Derivatives amp The Looming Shadow of Institutional Investment

Crypto Derivatives & The Looming Shadow of Institutional Investment

                               

Narratives come and go quickly in the crypto space,

with some progressing towards tangible products and developments while others fall by the waist side. The impending entrance of institutions into crypto has been speculated on for more than a year, with few definitive signs that major institutions have fully taken the plunge yet. Despite indications such as Grayscale’s record $2.8 billion assets under management (AUM) for Q2, Bakkt futures in testing, and Fidelity expected to roll out their crypto platform in the coming months; the general consensus is — once institutions really dive into crypto, it will be obvious.

Institutional speculations also come amidst an uncertain global economic backdrop, with tensions flaring in the US-Chinese trade war sparking an all-time low for the Chinese Yuan, governments around the world on the verge of expanding quantitative easing, and negative bond yields emerging in Europe all indicative of a tenuous situation. Add in the 6-year high of gold prices, and it is clear money is flowing into the traditional safe-haven asset for a well-known reason. Despite the ongoings of the conventional financial world, cryptocurrencies are unfolding in a unique environment. However, although considered to be independent of legacy finance, the correlation fueling the rising narrative that Bitcoin is a safe-haven asset like gold is a mixed bag right now.

Coin Metrics’ “State of the Network” newsletter has recently provided some useful information into the potential link between Bitcoin and global finance, and the connection is worth watching as crypto markets mature and uncertainty lingers in conventional ones. As investors wait for an “alt season” that seems like it won’t arrive anytime soon, Bitcoin and some of the other leading altcoins (e.g., Ethereum) are showing positive market signs. Their recent rise has been coupled with an increasingly competitive field for crypto derivatives products. All of the above sets a fascinating background for a budding trend in cryptocurrency markets, and its potential impact on institutional entrance into the markets.

The Dominance of BitMEX and Pitfalls of US Regulation

What’s interesting about the recent rise of crypto derivatives products, primarily in Asia, is that they are rapidly gaining traction among retail investors, prop shops, and (maybe) institutions dipping their toes into the pool. It’s hard to tell when BitMEX, the current flag-bearer for the crypto derivatives scene, refreshingly does not force KYC/AML on its users — fostering a unique pseudonymous exchange experience. However, BitMEX’s popularity, it’s massive insurance fund, high leverage, and lack of compliance has unfortunately attracted the attention of the CFTC, who is reportedly probing the exchange for servicing US customers.

In doing so, the CFTC has shed a spotlight on the microcosm that BitMEX’s represents for the emergence of crypto derivates products — the pitfalls and fallout of uncertain US regulations. It’s no secret that US regulators have tarried behind Asia, and many other countries, concerning definitive cryptocurrency regulations. As a result, some major exchanges that geo-block US customers include BitMEX, Deribit, Bitfinex, and Binance. In order, those are two of the most popular crypto derivatives platform in the world, and two of the leading spot exchanges (i.e., Bitfinex & Binance), who happen to be rolling out margin and derivatives products of their own.

American users cite easy ways to circumvent geo-blocking, but holding digital cryptocurrencies on a foreign exchange whose policy is not to serve US customers is a precarious position. Besides the CFTC probing BitMEX, the NYAG is also engaged in a lawsuit with Bitfinex over serving New York customers, which Bitfinex denies, and is moving forward with their high-leverage Bitcoin swap analogs anyways. BitMEX, despite the pitfalls with its trading engine, is a vital exchange in the Bitcoin markets and has been for quite some time. Just recently, the exchange exceeded $1 trillion in annual volume. But success comes with the scrutiny of regulators, even if they are based in the US.

The inclination of US agencies to pursue foreign exchanges is more than enough to deter low-barrier entry, high leverage swap products from emerging in the US, even if ErisX, Bakkt, and LedgerX are rolling out compliant, physically-delivered Bitcoin futures. As a result, it’s no surprise that a hotbed of crypto exchange innovation has occurred across the Pacific from the US. From Huobi Global to OKEx to Deribit, the Asian field of competition is seeking to steal some market share from BitMEX, who saw record outflows of BTC in July following the announcement of CFTC probe.

A New Wave of Competition

With Bitfinex and Binance derivatives and margin products on the horizon, the current field of crypto derivatives platform is about to get tighter. A few major exchanges have dominated the derivatives landscape so far, but it appears that established exchanges cannot avoid the lure of appealing to more investors with more crypto products, particularly with the impending entrance of institutions.

According to FTX’s global volume monitor, the top 5 crypto derivatives exchanges by volume are:

  1. BitMEX
  2. OKEx
  3. Huobi Global
  4. bitFlyer
  5. Deribit

All of the platforms are based outside the US, and BitMEX, OKEx, bitFlyer, and Huobi Global have operations in Asia, even if they are incorporated in obscure locales, like Seychelles for BitMEX. For their part, Deribit is run from Amsterdam in the Netherlands. Huobi is the US-arm of Huobi Global based in San Francisco, but does not offer derivatives products to US customers and is only a spot exchange. BitFlyer also has a similar option for US customers.

FTX is another emerging derivatives exchange themselves, born from quant trading firm Alameda Research, which is a resident on BitMEX’s leaderboard and currently manages over $100 million in digital assets. FTX, incorporated in Antigua and Barbuda, has burst onto the scene following the launch of their exchange platform with a refined liquidation engine, and interesting product offerings like a “shitcoin index” basket of low cap altcoins. FTX currently sits at 7th in derivatives volume, behind the Chicago Mercantile Exchange (CME) in the US, which is sixth and has cash-settled futures — not physically-delivered. Overall, you can find similar, albeit slightly varied, takes on BitMEX’s famous perpetual swap on crypto derivatives exchanges, among other options and futures as well. Leverage offered is high, often up to 100x, and some exchanges grant USDT as collateral alongside BTC and even swaps/futures for altcoin pairs.

As far as compliance goes, it’s no secret that BitMEX is popular for its pseudonymous approach to user identities. In an industry that runs contrary to centralized data repositories and its many pitfalls (i.e., Binance’s KYC extortion quandary), the nature of BitMEX likely contributes to its gravity among many traders. Additionally, many traders are attracted to the high leverage of BitMEX, Deribit, OKEX, and FTX, which offer up to 100X leverage on Bitcoin futures/swaps. However, that high of leverage also brings enormous risk, and is not recommended for retail traders. Huobi Global and bitFlyer also offer leverage, but in smaller sizes than their high-leverage counterparts. For example, Huobi Global DM (their derivatives market) offers up to 20X on BTC futures, and bitFlyer offers 15X.

Conclusion

We are still only very early into the crypto derivatives market, as overall volumes of roughly $14 billion (at the time of writing) across all crypto derivatives exchanges pales in comparison to conventional derivatives markets. Add in the shadowy history pervading crypto exchanges, stemming from countless hacks, and institutions are right to hesitate on diving into crypto derivatives.

However, as the market matures, look for more derivatives products, and exchanges offering them, to emerge. Should institutions take significant interest in Bitcoin derivatives once they are live and rolling with the likes of Bakkt, ErisX, and LedgerX, expect the actualization of the institutional entrance into crypto markets — fulfilling the long-awaited narrative. The onset and proliferation of crypto derivatives offerings appear here to stay, and is set amongst an uncertain economic background, struggling altcoin prices, and a potentially pivotal moment in Bitcoin’s history as a store of value. And Asia is looking to take the lead.

Article Produced By
Brian Curran

Blockchain writer, web developer, and content creator. An avid supporter of the decentralized Internet and the future development of cryptocurrency platforms.

https://blockonomi.com/crypto-derivatives-institutional-investment/

Don’t Make These Mistakes When You Invest In Cryptocurrencies

Don’t Make These Mistakes When You Invest In Cryptocurrencies

                                 

It is not easy to make investments these days

since there are countless options available. Everything becomes even more complicated when we factor in cryptocurrencies since they are highly volatile. Also, there are countless crypto assets that are just scams. Due to this, it is vital that you avoid the mistakes that most people make when they invest in cryptocurrencies. Here are those that have to be remembered at all costs.

Lack Of Knowledge

When you are a beginner, it is normal to feel really eager and to want to trade as fast as possible. However, if you rush, it is really easy to lose money. Our Team Of Professional Traders Execute Open Market Operations On A Daily Basis And Make Profits From Volatility.In order to make smart cryptocurrency investments, you need to at least know the basics. This includes the terms that are used in blockchain and the fundamentals of investing. Never put your money into anything if you do not feel prepared and you do not actually understand what happens.

Lack Of Action

Every single day there are countless investors that miss out on wonderful opportunities because of the fact that they actually lack confidence. Remember that even the experienced investors miss out on some cryptocurrencies or tools that would offer great profits. In most cases, the lack of action appears because of being afraid of making mistakes. Due to this, many say that the very first step to take is to actually take action. Actions result in experience, which ultimately leads to much better decision making.

Ignoring Fees

This is a really common mistake when it comes to cryptocurrency investments. Most people do not realize that when they trade crypto coins they have to pay fees. Also, the fund manager that works for you might also require a fee. The fees add up really fast and it is so simple to end up losing a large part of your profit due to fees. It is even possible to end up losing money even if your actual investment was profitable. Always conduct a really thorough research before the trade since you want to be aware of all fees involved.

Investing With The Wrong Broker

A great way for beginners to get involved in cryptocurrency investments is to work with someone that is really experienced. For instance, you can work with the crypto hedge fund experts at ciper.tech. In this case, you end up paying a fee but you do get a higher chance of actually making good investments since someone with a lot of knowledge will help you. The problem is that not all people that promise you things in crypto environment are actually experts. You can easily end up trusting the wrong broker. Be sure that you learn all that you can about the one that you want to give your money to in order to give yourself a much higher possibility of success.

Chasing The Cheap Coins

Last but not least, many beginners make the mistake of chasing the really cheap coins. They think that they can end up drastically increasing in value so they end up making a lot of money. However, most cryptocurrencies that are really cheap right now will never gain value. Most of them will actually disappear.

Article Produced By
Lorena Boanda

https://theccpress.com/dont-make-these-mistakes-when-you-invest-in-cryptocurrencies/

WalCoin? Walmart Files Patent for Its Own Cryptocurrency

Wal*Coin? Walmart Files Patent for Its Own Cryptocurrency

Facebook has certainly garnered its fair share of headlines in the cryptocurrency ecosystem over the last few months. The ongoing development of the Libra, along with the strong reaction from the U.S. Congress, has sparked many an online discussion. Now it appears another giant is entering the crypto marketplace as Walmart has filed its own patent for what appears to be a stablecoin.

Another 800-Pound Gorilla

On August 1st, Walmart filed a patent (number 20190236564) called “System and Method for Digital Currency via Blockchain.” This patent is for a

method for:

…generating one digital currency unit by tying the one digital currency unit to a regular currency; storing information of the one digital currency unit into a block of a blockchain; buying or paying the one digital currency unit…

There are some interesting features of this new cryptocurrency to be found within the patent filing. One such item is that the crypto can be spent or redeemed for cash at Walmart or with participating partners. The retail giant is also aiming to keep fees associated with the crypto low or even at zero, and the patent filing even suggests users’ crypto accounts could be interest-bearing. The Walmart crypto could be tied to the U.S. dollar, or it may even be tied to other cryptocurrencies. The filing also notes that this crypto would benefit those who lack access to traditional financial systems, such as credit and debit cards, as the crypto account may act as pre-approved biometric credit.

Some Possible Benefits

Walmart creating its own cryptocurrency does offer the retail giant some advantages. First, the crypto can be used for products and services, such as hiring a repair technician for a couple of hours. This ties service providers to Walmart, who will likely gain an honorarium for its effort. A major benefit for Walmart would be savings on credit and debit card transactions. People are increasingly using plastic to buy items instead of cash, but each purchase costs the retailer a percentage charged by the card’s bank.

Most retailers don’t take American Express as that company can charge up to 3% while Visa and MasterCard normally charge 2%. While not large when looking at a single transaction, Walmart did $500 billion in revenue in 2018. If every person who used a credit or debit card switched to the new crypto, Walmart would save up to $10 billion per year in charges. Of course, it remains to be seen if the new crypto will see the light of day. Congress has not taken a shine to Facebook’s Libra, so chances are Walmart’s new crypto will be met with the same lack of enthusiasm. However, Walmart does have huge financial and political clout behind their brand.

Article Produced By
Jeff Francis

https://bitcoinerx.com/cryptocurrency/walmart-files-patent-for-its-own-cryptocurrency/

Russian Agency Proposes to Create a Major Zone for Crypto Trades With China

Russian Agency Proposes to Create a Major Zone for Crypto Trades With China

                                  

Russia is considering creating a financial centre

that would allow the promotion of new forms of international trade with China… and cryptocurrencies are the protagonists.Bolshoy Ussuriysky is Shared by China and RussiaAccording to information from the local media outlet TASS, The Agency of the Far East for Attracting Investments and Supporting Exports (IPA) shared a proposal to create a “special administrative region” on Bolshoy Ussuriysky Island (an island with a territory shared by Russia and China). Since the special zone is located on the border between the two countries, it is possible to foresee an increase in activity between both nations. Leonid Petukhoc, head of the IPA explained that this financial center would seek to promote various types of trading and operations

with financial instruments:

“We want to make a big financial center there. Figuratively speaking, cryptocurrency, crypto-stock exchange, forest trade stock exchange – in a good way, domestic offshore. What they did in Kaliningrad,” 

Russia, China, United States…
How Crypto May Change the Political Game

The proposal came after the St. Petersburg International Economic Forum concluded on June 8. In this important event, cryptocurrencies were an important part of the debate, even though the official position is still against its acceptance. Currently there are two administrative districts with similar characteristics to the one proposed by IPA, however, none is focused on the promotion of cryptocurrency trading. In this, the island would be a pioneer in both Russia and China.

So far there is no official position of either country on this proposal however, given the political sanctions and the current trade war promoted by the president of the United States, Donald Trump, it is possible that both nations are considering alternatives to dynamize their economy, and the adoption of cryptocurrencies could be a perfect instrument to achieve this goal.

For Russia, the idea of using crypto is not new. Although the country has had an elusive stance on the matter, on numerous occasions rumors of a possible “Crypto Ruble” have come to light.Also, recently, a Venezuelan diplomat announced that both countries are in talks to replace the use of dollars by rubles and Petros (a Venezuelan cryptocurrency) in their commercial operations.Similarly, after having a strong anti-crypto stance, an important chinese official declared that Bitcoins possession is legal in China, as is p2p otc trading.

North Korea Stealing Cryptocurrency Funding 2 Billion Weapons Programs

North Korea Stealing Cryptocurrency, Funding $2 Billion Weapons Programs

                                  

North Korea is generating billions of dollars in support of the illegal weapons programs

and ballistic missile launches according to a confidential report from the United Nations. Experts providing the report suggest North Korea is using cyberspace, launching sophisticated attacks as a way to generate more funds. Though the report is troublesome, it’s not completely surprising. Cryptocurrency offers criminals an opportunity to skirt government regulations across the globe, steering clear of all the red tape that governs central banks. The .U.N.’s report goes on to say that many of the cyber criminals operating on behalf of the Democratic People’s Republic of Korea are doing so under the guidance of the Reconnaissance General Bureau, the country’s top military intelligence agency. At the present moment, illegal activities and 17 different countries are under investigation. Authorities at the .U.N. believe as many as 35 attacks on financial institutions, cryptocurrency exchanges and mining pools involve individuals representing DPRK.

The Tension Is Rising

North Korea has a long history of violating the human rights of its citizens and drawing the ire of the international community because of it. President Kim Jong-Un is still threatening the United States of America, continuing to put his country’s military capabilities on display with four separate missile tests already launching this summer. The country’s acts of aggression are in direct response to the fact that the .U.S. is currently going through joint military exercises with South Korea. All of this is happening despite the fact that .U.S. President Donald Trump is meeting consistently with Jong-Un. The two have already met three times to discuss halting North Korea’s weapons program. In June, Trump became the first .U.S. President to ever step on North Korean soil, setting foot in the nation’s demilitarized zone.

Still, the .U.N.’s report on North Korea’s multi-billion dollar money laundering tactics was published before the country’s most recent missile launches. It’s now quite clear that Jung-Un is intent on putting more pressure on the United States and United Nations. He is demanding more flexibility in negotiations and threatening a more intense military response as the alternative. The .U.N. Security Council is already banning exports to North Korea as a way to choke out the funding of weapons programs. Trading of coal, iron, lead, textiles, seafood and crude oil are all either banned or severely restricted. In response, the North Korean government continues to transfer weapons-related materials and other luxury goods using ships.

What Does It All Mean For Bitcoin?

As the stakes continue to climb higher and more and more politicians and world leaders are recognizing Bitcoin as an unstoppable force, cryptocurrency hacks will continue to fund black market activities and ill-intent dictators. The question is, what will political unrest do to the price of Bitcoin both now and in the future? On one hand, Bitcoin is currently trending up as alt coins lose steam. The price is flirting with the $12,000 mark. Some investors believe it’s going to be a safety net throughout this crisis. Even .U.S. Senators are going bullish. On the other hand, since Bitcoin is funding weapons programs. Perhaps the general public decides violence and a slowing market is reason enough to pull money out of Bitcoin. Time will tell. For now, the world waits on edge as tensions between the .U.S. and North Korea are heating up.

Article Produced By
Jack Choros

https://cryptoradar.org/north-korea-stealing-cryptocurrency-funding-2-billion-weapons-programs/

Leading US Crypto Exchange Heads to Bermuda Amidst Regulatory Uncertainty

Leading US Crypto Exchange Heads to Bermuda Amidst Regulatory Uncertainty

                             

Poloniex plans to shift the majority of its crypto trading operations offshore,

according to parent company Circle. The move comes amidst regulatory uncertainty and pressure in the US, which lacks a clear legal framework or guidance for cryptocurrency-related businesses or crypto investors. Circle CEO Jeremy Allaire says that 70% of Poloniex users are not based in the US, prompting the move to another jurisdiction. Allaire says Poloniex has already secured its Digital Assets Business Act license to operate in Bermuda, reports Coindesk.

Says Allaire,

“The lack of regulatory frameworks significantly limits what can be offered to individuals and businesses in the US.”

In May, the Delaware-based exchange stopped offering nine coins for its customers in the US due to regulatory uncertainty: Ardor (ARDR), Bytecoin (BCN), Decred (DCR), GameCredits (GAME), Gas (GAS), Lisk (LSK), Nxt (NXT), Omni Layer (OMNI) and Augur (REP). The CEO also confirmed that the company’s recent downsizing, eliminating roughly 30 employees, was partly due to the lack of clarity from US lawmakers. The company’s current focus is global and getting beyond the US bottleneck. “It took a long time working with the Bermuda government and the Bermuda Monetary Authority.” “The project to establish a new international operations hub for our market, exchange and wallet services, was a major project.”

The move will also allow Poloniex to explore being able to offer financial services, adding that users could expect to see more “yield-generating crypto accounts.” Poloniex ranks in the top 100 crypto exchanges in the world with a 24-hour trading volume of roughly $16 million, according to data compiled by CoinMarketCap. It is also listed among Messari’s Real 10 Volume index reflecting legitimate trading volumes from leading industry players. In the wake of last week’s two congressional hearings on Facebook’s upcoming digital asset Libra, crypto insiders are assessing the highly critical response from US lawmakers who are determined to halt the project in its tracks. The hearings sparked an intense debate about Bitcoin, cryptocurrencies and new corporate digital assets that are all vying for a place in the digital economy.

Politicians have not yet figured out a way to deal with emerging blockchain technology and the many products and services currently in development to bring more financial inclusion for people all around the world. The threat of digital assets lowering costs, rivaling existing infrastructure and challenging the traditional banking and monetary systems has prompted many prominent politicians, including Maxine Waters and Brad Sherman, to demand a moratorium on Libra.

Article Produced By
The Daily Hodl Staff

https://dailyhodl.com/2019/07/22/leading-us-crypto-exchange-heads-to-bermuda-amidst-regulatory-uncertainty/

 

Cash and Gold Facing Extinction As New Investors Go Digital Says Crypto King’ Barry Silbert

Cash and Gold Facing Extinction As New Investors Go Digital, Says ‘Crypto King’ Barry Silbert

                                 

In a new podcast episode of Inside the ICE House

produced by Intercontinental Exchange, host Josh King interviews the ‘Crypto King’ Barry Silbert. The CEO of Digital Currency Group explains why he believes tomorrow’s game changers are gearing up to dump gold for Bitcoin and other digital assets. Silbert’s Grayscale Bitcoin Trust, which allows everyday investors access to BTC, gained 192% in the second quarter of 2019, outperforming every other fund in the first half of the year. As an early Bitcoin investor, Silbert has a long-range view on the emerging technology, having watched the digital asset rise and fall through multiple boom-and-bust cycles. Now, by gauging the rapidly flourishing interest among institutional investors, he believes gold’s status is steadily eroding.

Bottom line: It’s bulky, clunky and not smartphone-friendly – not a great match for Millennials who shop on Amazon, hail rides on Uber, search data on Google, make friends on Facebook, meet up on Tinder, stream shows on Hulu, listen to music on Spotify and track their heart rates on a Fitbit. Silbert is certain the allure of gold will come to an end, right along with physical dollars.

“It’s clear that money is going digital, and it’s clear that in the future, physical cash is going to go away. And it’s also clear based on history that fiat currency tends to not exist into perpetuity. The average life of a fiat currency over the past 500 hundred is 27 years. So what that means is, on average, in 27 years, a government will destroy their currency or devalue their currency, typically through debasement or through war.”

Silbert says he doesn’t see Bitcoin replacing the US dollar anytime soon but he says a changing tide in places like Venezuela, Argentina and other countries with struggling economies have allowed cryptocurrencies to gain a foothold. “It’s clear that something other than the local fiat currency would have real demand and real appeal.” As for people in countries like the US, Silbert says there are five phases of Bitcoin acceptance.

1. Phase one – Dismissive – “That’s silly.” “It’s a Ponzi scheme.” “It’s rat poison.”

2. Phase two – Skeptical – “It’s not going to work.”

3. Phase three – Intellectually curious – “Why is Elon Musk excited about this? Why is Jack Dorsey excited about this?”

4. Phase four – A believer – Write the check and invest.

5. Phase five – An evangelist – Spreading the news about Bitcoin and why, if successful, it will be amazing for society.

Says Silbert,

“I think what many gold investors don’t seem to appreciate is that the next generation of investors, the next generation of asset allocators, do not view gold the same way that our parents or grandparents did.” “Over the next couple decades there’s an estimated $68 trillion of wealth that’s going to be handed down. That’s just in the US. That $68 trillion is going to be handed down from Baby boomers to Gen X and Gen Y and Millennials. I’m absolutely convinced that whatever of that $68 trillion is currently in gold, it’s not going to stay in gold. I’m not saying it’s going to Bitcoin but I know it’s not going to stay in gold. So if gold stops performing the way gold investors think it should in periods of high inflation or macro-economic dislocation, I think it’s game over. I think the next generation of investors are going to put their money elsewhere.”

The Federal Reserve Bank of New York, located in Manhattan, is the world’s largest depository of monetary gold, storing 497,000 gold bars that are situated 50 feet below sea level and weigh about 6,190 tons or roughly 12.4 million pounds. The gold belongs to various clients including the US government, foreign governments, central banks and other financial institutions. As reserves continue to decline over the years, the traditional asset class is facing competition from Bitcoin whose supporters claim that it’s a far superior way to store wealth. Among its advantages over gold – Bitcoin (BTC) is portable and traceable, and you don’t need armored trucks to move it around the globe.

Article Produced By
The Daily Hodl Staff

https://dailyhodl.com/2019/07/15/cash-and-gold-facing-extinction-as-new-investors-go-digital-says-crypto-king-barry-silbert/