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Grayscale To Move Billions In Bitcoin, Ripple’s XRP, Ethereum, And Litecoin To Coinbase In One Of The Largest Ever Crypto Transfers

Bitcoin and cryptocurrency asset manager Grayscale Investments is today planning to move billions of dollars worth of holdings to U.S. crypto wallet provider and trading platform Coinbase in what could be one of the largest single day transfers of bitcoin and crypto assets ever.

Grayscale, which claims to be the world’s largest bitcoin and digital currency asset manager, is today announcing Coinbase Custody will serve as custodian of the underlying assets for its products, and is expected to transfer nearly $3 billion of assets in fewer than 12 hours to Coinbase.

Coinbase Custody, which is operated as a standalone, independently-capitalized business to Coinbase, will now will oversee Grayscale’s cryptocurrency holdings, including bitcoin, bitcoin cash, ethereum, litecoin, and Ripple’s XRP, among other major tokens, as well as Grayscale’s publicly quoted cryptocurrency trusts and its Grayscale Digital Large Cap Fund, which provides exposure to bitcoin and crypto through a market cap-weighted portfolio.

“Grayscale and Coinbase have led the way in providing safe, secure, trustworthy, and regulated access to digital assets. Grayscale is an established, trusted, and valuable partner to its clients and its service providers should be the same,” said Sam McIngvale, Coinbase Custody chief executive.

“As a NY State-chartered trust company, Coinbase Custody is held to the same fiduciary standards as national banks. We also offer some of the broadest and deepest insurance coverage in the crypto industry.”

The move comes as bitcoin and cryptocurrency investors nervously look for signs of how global regulators will react to Facebook’s plans to launch its own cryptocurrency sometime next year, dubbed libra.

Expectations that some of Silicon Valley’s biggest companies, including iPhone-maker Apple and micro-blogging platform Twitter, are increasingly looking to bitcoin and cryptocurrencies as a potential source of revenue has been largely responsible for the rise in the bitcoin price so far this year.

Earlier this month, the New York-based Grayscale reported assets under management of $2.7 billion, an all-time high for the company and up three-fold on the previous quarter.

Last month, Coinbase, the largest U.S. cryptocurrency exchange and wallet service, boasted it has signed up 30 million users since launching in 2012, with eight million new users added over the last 12 months.

Meanwhile, Grayscale last week found that more than a third (36%) of U.S. investors would consider buying bitcoin, representing a potential market of more than 21 million investors.

“Since its introduction in 2009, bitcoin has steadily grown in popularity and today has expanded its reach to a broad mainstream audience,” Grayscale reported.

“Investors are constantly looking for new ways to diversify their portfolios as traditional assets and markets have begun to move more closely in sync with one another.”

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I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Source: Grayscale To Move Billions In Bitcoin, Ripple’s XRP, Ethereum, And Litecoin To Coinbase In One Of The Largest Ever Crypto Transfers

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Bank of England: Cryptoassets Still ‘Too Volatile,’ Not a Good Store of Value By Omar Faridi

David Ramsden, the Deputy Governor of Markets and Banking at the Bank of England (BoE), has argued that cryptocurrencies are “too volatile” to be considered a reliable store-of-value (SoV).

In a brief interview with CNBC on April 30th, 2019, Ramsden said that BoE’s officials have been keeping track of the “emerging developments and then thinking about what they mean” or how they’re relevant to our current economic system.

The Deputy Governor noted that “just over a year ago, the financial policy committee looked at cryptoassets in some detail” – as “supported by” and within the context of the latest developments in FinTech and modern banking services. He confirmed that England’s central bank still believes blockchain-based digital assets are highly volatile, based on their recent price movements.

Cryptoassets Not An Effective SoV Or MoE

Cryptoassets are also not a reliable medium-of-exchange (MoE) because the “cost of transactions” remains quite high, Ramsden claims. Because of these issues, the BoE’s management thinks cryptocurrencies don’t satisfy the basic “principles of being a currency.”

Ramsden also pointed out that “this is why” the BoE considers them to be cryptoassets, and not cryptocurrencies. Ramsden further noted that cryptoassets “did not pose a risk” to the overall stability of the much larger traditional financial system. This, as the current market capitalization of the crypto market, which presently stands at over $174 billion, is relatively small compared to the multi-trillion dollar global financial market.

BoE Continues To Monitor Crypto Markets

Despite not being able to negatively affect the traditional financial system, Ramsden said that the BoE continues to monitor cryptoassets. He revealed that the UK’s Treasury Department, the Financial Conduct Authority (FCA), and the Cryptoassets Task Force carefully examined the crypto industry.

According to the regulators, cryptoassets that “fall within” the current regulatory framework must comply with the European nation’s existing financial policies. However, Ramsden said that UK’s financial regulators “also had to be very mindful of [digital] assets and exchanges that [may be operating] in or outside” the UK’s regulatory guidelines.

“Very Positive” About DLT

Ramsden added that the BoE and other regulatory bodies in the UK “remained very vigilant about cryptoassets.” He continued to note that the BoE is “very positive” about the distributed ledger technology (DLT) that “underlies” cryptoassets. He also noted that part of his role “in embracing FinTech across the BoE” involves looking closely at the potential benefits of blockchain tech.

He also mentioned:

We are looking at the potential of DLT … for example, in the payments space, we’re making sure that our real-time gross settlement system can interface and be interoperable with blockchain/DLT technology.

Source: CryptoGlobe

SEC’s Senior Advisor for Digital Assets Valerie Szczepanik: Stablecoins May Be Securities

Senior advisor for digital assets at the United States Securities and Exchanges Commission (SEC) Valerie Szczepanik reportedly noted that stablecoins could experience issues under current securities laws. Blockchain-related news website Decrypt reported her comments on March 16.

Szczepanik, also known as the Crypto Czar, was appointed to the new position of associate director of the Division of Corporation Finance and senior advisor for Digital Assets and Innovation for Division Director Bill Hinman in June of 2018.

When Szczepanik reportedly made the statement concerning securities at Austin’s SXSW conference on March 15, she also broke stablecoins into three categories.

One kind of stablecoins are the ones tied to real assets such as gold or real estate, and another type are the ones tied to fiat currency held in reserves, in Szczepanik’s classification. The third and last category uses market financial mechanisms to keep the price stable. Explaining the last kind, Szczepanik said:

“I’ve seen stablecoins that purport to control price through some kind of pricing mechanism, whether it’s tied to the issuance, creation or redemption of another type of digital asset tied to it, or whether it is controlled through supply and demand in some way to keep the price within a certain band.”

Szczepanik reportedly said that since a central party controls the price fluctuations over time, that last kind of stablecoins “might be getting into the land of securities.” According to her, if buyers are promised that somebody else will be holding or guaranteeing a profit or controlling the price, the token could be a security.

Ultimately, she explained, whether the asset is labeled as a stablecoin or anything else, the SEC will always subject projects to the same level of scrutiny. She noted:

“Not to sound cliche, but we’d much rather people come to us and ask for [permission], or come talk to us before they do something, rather than doing something and then coming in and asking for forgiveness.”

As Cointelegraph reported in December last year, the United States-based stablecoin project Basis has officially stated that it will close operations and refund investors after they confirmed that they couldn’t avoid a security classification for their secondary token.

More recently, SEC’s chairman Jay Clayton seemed to confirm that Ethereum (ETH) and cryptocurrencies like it are not securities under U.S. law.

Source: SEC’s Senior Advisor for Digital Assets Valerie Szczepanik: Stablecoins May Be Securities

Mark Zuckerberg: “Encryption is decentralizing” | Crypto Insider

 

On March 6, Mark Zuckerberg published a 3000+ word essay “A Privacy-Focused Vision for Social Networking”. In the essay, he outlines the problems faced by Facebook, the Internet and the society, as well as his vision of the future.Lately, the rumors have been swarming about Facebook adding blockchain technology and even introducing its own cryptocurrency. In relation to this series of events, it remains to be seen if Mr. Zuckerberg provides any validation for the rumors mentioned in his address.

Source: Mark Zuckerberg: “Encryption is decentralizing” | Crypto Insider

 

 

Komodo to Soon Release Atomic Swap-Enabled Trading App, CTO Reveals

Cryptocurrency exchanges have been under fire so far this year, as hackers have kept on targeting them and other events hurt the confidence users have in certain platforms. Atomic swap technology is set to revolutionize the way we trade cryptocurrencies and more. As CryptoGlobe covered, a Chainalysis report has found that 60% of cryptocurrency exchange hacks were the work of two major players, dubbed “Alpha” and “Beta.” Alpha was described as a “giant, tightly controlled organization partly driven by non-monetary goals” that appeared eager to “create havoc as to maximize profits.”

Source: Komodo to Soon Release Atomic Swap-Enabled Trading App, CTO Reveals

Cryptocurrency is ‘Honestly Useless’: Harvard Cryptographer

Cryptocurrency is useless to anyone other than nefarious groups or individuals trying to move money without being noticed by the government. This is apparently the cutting-edge opinion of Harvard University cryptographer and technology researcher Bruce Schneier.Citing a series of regularly discredited and debunked talking points, Schneier believes that the aims of Bitcoin according to its original whitepaper have been defeated by the reality of its deployment………………….

Source: Cryptocurrency is ‘Honestly Useless’: Harvard Cryptographer

Firm that helps people buy luxury goods with crypto records $250M transactions

A company that offers the service of converting crypto to fiat in the form of luxury goods is reported to record a staggering amount of transactions. Elizabeth White, the founder and CEO of The White Company that offers the service admitted in an interview that her company records $250 million worth of transactions during the ongoing bear market. She said that the fear of “a crypto doom” has led many crypto owners, most of which are millionaires even billionaires to turn to her company’s one-of-a-kind services, as reported by BTC Wires…………..

Source: Firm that helps people buy luxury goods with crypto records $250M transactions

Japanese Regulators Grant Coincheck Cryptocurrency Exchange Full License | BTCMANAGER

According to a PDF document released on January 11, 2019, the Japanese Financial Services Agency (FSA) has fully licensed the Coincheck cryptocurrency exchange after the firm reportedly met all its standards. Coincheck, reportedly known as the most popular virtual currency exchange in Japan before its hack in January 2018, has registered with the Kanto Financial Bureau as a virtual currency exchange after its approval by the Japanese Financial Service Agency (FSA).Since falling victim to a deadly heist that saw $530 million worth of NEM (XEM) altcoins vanish from its coffers, plus the subsequent takeover by Monex Group, the platform has been slowly but steadily rebuilding its system………

Source: Japanese Regulators Grant Coincheck Cryptocurrency Exchange Full License | BTCMANAGER

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