Regulation and monetary policy
New EU AML Compliance Laws Could Disrupt the Crypto Industry
On Jan. 10, the European Union’s 5th Anti-Money Laundering Directive (5AMLD), was officially signed into law. The legislation will give sweeping powers to compliance organizations and law authorities. However, aside from tracking dirty money to offshore paradises, the law brings about a series of restrictive demands on crypto companies in a way never seen before.
South Korea Considers Imposing a 20% Income Tax on Cryptocurrencies
South Korea’s Ministry of Economy and Finance is considering imposing a 20% tax on income from cryptocurrency transactions.
Davos: Giancarlo’s Digital Dollar Project Will Focus on Benefits of a US CBDC
The former chairman of the United States Commodity Futures Trading Commission (CFTC) has some new remarks regarding his Digital Dollar initiative, speaking in Davos. On Jan. 22, Ex-CFTC chairman J. Christopher Giancarlo confirmed that the Digital Dollar project will consider the advantages of a United States’ central bank digital currency (CBDC), according to written remarks for a Davos event hosted by industry media outlet The Block.
India Central Bank Says It Hasn’t Banned Crypto
The Reserve Bank of India (RBI) said regulated entities cannot offer crypto assets in the country, but that does not equate to an overall digital asset ban.
World Economic Forum Debuts Framework for Central Bank Digital Currency
The World Economic Forum (WEF) — together with some of the world's major central banks — has created a central bank digital currency (CBDC) policymaker toolkit.
Deloitte Approves Gemini Crypto Exchange in High-Level Security Evaluation
U.S.-based crypto exchange and custodian Gemini has finished a SOC 2 Type 2 evaluation, proving the operation’s security.
Competitors
Tether Claims to Be Okay With Merger of Class-Action Lawsuits Against It
Currently facing multiple lawsuits, cryptocurrency stablecoin issuer Tether (USDT) received a request from prosecutors asking for consolidation, combining three lawsuits into one, which Tether has not denied.
A look into the growth of USDC
https://www.theblockcrypto.com/genesis/53623/a-look-into-the-growth-of-usdc
Quick Take
Launched in 2018, USDC has experienced early success
The stablecoin currently makes up 5% of total fiat-backed stablecoin trading volume on exchanges and roughly 3% on decentralized exchanges
Excluding USDT, USDC makes up 70% of total fiat-backed stablecoin trading volume
Paxos Standard Token Trading 0.3% Lower Over Last Week (PAX)
Paxos Standard Token (CURRENCY:PAX) traded 0.2% higher against the US dollar during the 24-hour period ending at 7:00 AM E.T. on January 24th. In the last week, Paxos Standard Token has traded down 0.3% against the US dollar.
Paxos Launches Automatic Conversions Between Bank Deposits and Stablecoins
https://finance.yahoo.com/news/paxos-launches-automatic-conversions-between-160125436.html
Paxos announced Tuesday a new feature allowing customers to automatically wire transfer funds from their bank accounts into either Paxos Standard or Binance USD stablecoins. Conversely, any PAX or BUSD sent to the designated address will be automatically wired back to the individual’s bank account in USD.
Analytics and opinions
How Real World Use Cases Will Drive Crypto Growth in 2020
In reflecting on the history of cryptocurrencies over their lifetime, there’s one pattern that immediately jumps out. Each successive wave of interest in the cryptocurrency space has been galvanized by new developments in the ecosystem. In particular, two significant catalysts were the rise of crypto exchanges and the initial coin offerings craze.
Circle’s Jeremy Allaire: Asset Tokenization Will Go Mainstream in Two Years
Jeremy Allaire, CEO of crypto payments firm Circle, projected that in the next two or three years the securitization of assets through tokenization will become much more realistic.
Japanese Ex-Central Banker: Libra Spurred Us to Take CBDCs Seriously
The former head of payments and settlements at the Bank of Japan (BOJ) says Facebook’s Libra galvanized central banks globally to look seriously into digital currency issuance.
OKEx at Davos: Blockchain Best Placed to Meet the Needs of the Unbanked
Major cryptocurrency exchange OKEx is at the 50th World Economic Forum Annual Meeting in Davos this week, promoting blockchain technology as a new motor for the global financial system.
BIS: No Evidence of Mass Transition From CBDC Research to Pilots and Experiments
A new survey from the Bank of International Settlements (BIS) revealed that only 10% of central banks are likely to issue a central bank digital currency (CBDC) for the general public in the short term.
Facebook and Calibra’s David Marcus: The Problem of Global Unbanked Is “Unacceptable”
At the World Economic Forum panel discussing digital currencies, the conversation topics included Central Bank Digital Currencies (CBDCs). Calibra’s David Marcus highlighted that regardless of the nature of digital currency, these discussions are key to innovate cross-border payments and solve the issue of the unbanked.
MIT Research Group Calls Crypto a Testing Ground for a Central Bank Digital Asset
MIT’s crypto and distributed ledger tech research group, the Digital Currency Initiative, recently explained that a central bank digital currency (CBDC) will eventually use some of the concepts and technology currently at play in the experimental crypto space.
The Prospect of Building a New International Monetary System Is Getting Real
When world leaders gather in Davos next week, they’ll confront an essential question: Can they seize the opportunity generated by years of innovative blockchain development to reshape the global economic order in a way that creates wealth and value for people around the world?
Can the 2020 Stablecoins Finally Bring Competition to Tether?
https://themerkle.com/can-the-2020-stablecoins-finally-bring-competition-to-tether/
The question is whether they can be more successful than those stablecoins launching in 2019.
With the likes of USD Coin taking another stab, Binance’s own BUSD, and Saga’s SGD, the opportunities are virtually limitless.
4 Reasons Why 2020 Will Be The Year Of The Stablecoin
https://www.globalbankingandfinance.com/4-reasons-why-2020-will-be-the-year-of-the-stablecoin/
As we embark on a new decade for blockchain, it is worth reflecting on how far we’ve come. The biggest movements of 2019 revolved around institutional involvement in the space with industry giants such as Facebook and JP Morgan dipping their toes in the water, Decentralized Finance (DeFi) booming, monumental growth in fintech more generally and, of course, a wave of potential Central Bank Digital Currencies (CBDCs) growing in prospect.
New projects, partnerships, and investments
Swiss-Regulated Digital Asset Bank Plans $95M Capital Raise
Seba, a young Swiss-based digital asset bank holding regulatory licensing, looks to attempt a secondary capital raise to garner over $95 million in additional funds.
WisdomTree Grows a Stablecoin Today to Nurture a Crypto ETF Tomorrow
The news that WisdomTree, a major asset manager with $63.8 billion in assets under its belt, plans to launch a regulated stablecoin — pending approval from the United States Securities and Exchange Commission — could be a significant development.
Turkish City Developing Crypto and Blockchain Solutions for Public Services
Konya, the city of the world-famous poet Rumi, might not come to mind when talking about technology, especially blockchain and cryptocurrencies. As one of the major cultural centers of Turkey, Konya is known for its rich history, gorgeous mosques, and historical sites.
Six Major Central Banks to Collaborate on Digital Currency Research
https://cointelegraph.com/news/six-major-central-banks-to-collaborate-on-digital-currency-research
The central banks of Canada, the United Kingdom, Japan, European Union, Sweden and Switzerland created a group with the Bank for International Settlements (BIS) to jointly research central bank digital currencies (CBDC).
Venezuelan Team Working on Bitcoin Mesh Network Based on Offline Radios
A Venezuelan team is developing Locha, a decentralized mesh network that doesn’t rely on the internet to transact with Bitcoin (BTC). The system, based on radio waves, was born in response to frequent electricity and internet outages in Venezuela.
Huobi Debuts Crypto Brokerage as Its Institutional Arm Grows 400% Since Q3 2019
Major cryptocurrency exchange Huobi is launching its first licensed digital asset brokerage, Huobi Brokerage.
Singapore Gov’t, Mastercard and Mitsubishi Form Alliance to Digitize Trade
The Singapore government, along with an array of the world’s major financial and manufacturing companies, has formed an alliance to promote the adoption of digital technologies in trade and commerce.
Hong Kong and Thailand Pilot DLT-Based Project for Cross-Border Payments
Hong Kong and Thailand’s central banks have stepped closer to implementing a joint central bank digital currency (CBDC) for cross-border payments.
Celsius to Begin Offering Compounding Interest on Crypto Deposits
Cryptocurrency lending and borrowing platform Celsius announced that it would be implementing compounding interest on cryptocurrencies deposited in its wallet, starting Feb. 1. The announcement came with a number of other updates in a Twitter AMA (ask me anything) with founder Alex Mashinsky on Jan. 22.
Tether Launches Gold-Backed Stablecoin and Begins Trading on Bitfinex
Tether is now supporting a gold-backed stablecoin, Tether Gold (XAU₮), according to a Jan. 23 press release. One token represents ownership of one troy fine ounce of physical gold, currently worth approximately $1,550.