STABLECOIN DIGEST 27.12.2019
Regulation and monetary policy
Crypto Custodians Grapple With Germany’s New Rules
https://www.coindesk.com/crypto-custodians-grapple-with-germanys-new-rules
Under a law going into effect Jan. 1 requiring digital asset custodians to be licensed, each company that currently custodies crypto and targets German clients must announce to Germany’s Financial Supervisory Authority (BaFin) its intention to get a license before April 1 and submit an application before Nov. 1.
Crypto Firms Can Now Apply for a License in France
https://www.coindesk.com/crypto-firms-can-now-apply-for-a-license-in-france
France’s top financial regulator has published new rules regarding the licensing of digital asset service providers (DASPs) as well as guidelines for firms applying for the non-mandatory license and informing the regulator about internal cybersecurity practices.
8 Congress Reps Send Letter to IRS Urging Further Crypto Tax Clarity
Eight members of the United States (U.S.) Congress sent a letter to the Internal Revenue Service (IRS) urging the agency to provide additional clarity on cryptocurrency tax laws.
Cyprus SEC Flags 3 Trading Platforms That Look Suspiciously Similar
Cyprus’ Securities and Exchange Commission (CySEC) recently issued a warning against almost 200 unregistered investment platforms, three of which look strikingly similar and falsely advertise ties to licensed and regulated firm BDSwiss.
Crypto Legislation 2020: Analysis Of 21 Cryptocurrency And Blockchain Bills In Congress
As of the end of 2019, Congress has introduced 21 bills addressing cryptocurrency and blockchain policy that could be considered in 2020 by the second year of the 116th Congress. Indeed, U.S. legislators have been busy examining the landscape of how this new technology has been and could be impacting businesses, consumers, and society at large. Although Congress introduced a total of 22 bills that involve cryptocurrencies or blockchain technology, there are three main public policy areas that will likely be the continued focus of the 116th Congress into 2020.
Draft “Cryptocurrency Act of 2020” Circulated in US House of Representatives
“The Crypto-Currency Act of 2020” proposes definitions of “crypto-commodity” (fungible, blockchain-based); “crypto-currency” (“representations of United States currency or synthetic derivatives resting on a blockchain,” including stablecoins); “crypto-security” (“all debt, equity, and derivative instruments that rest on a blockchain or decentralized cryptographic ledger”).
Competitors
Gemini Partners with State Street on Reporting Pilot
https://www.securities.io/gemini-partners-with-state-street-on-reporting-pilot/
This month saw some exciting developments in the crypto sphere as the State Street Corporation announced it chose the Gemini custody as a strategic partner in its new crypto pilot program. The joint-venture is part of a broader goal to launch a reporting pilot for cryptocurrency holdings. If successful, the project will enable investors to view reporting on both traditional and crypto investments simultaneously.
Paxos Remarks on a Great 2019, Reveals Future Goals
https://chainbulletin.com/paxos-remarks-on-a-great-2019-reveals-future-goals/
The Paxos Trust Company is planning to expand its offerings in the coming year, and create "white-label" stablecoins for firms looking to digitize their assets.
Analytics and opinions
Central Bank of China Official Says Digital Yuan Will Be Different From Bitcoin
Chinese news outlet South China Morning Post reported on Dec. 22 that the head of the digital currency research institute at the PBoC said that China’s digital currency would be a digital form of the yuan with no room to speculate on its value, and without the backing of a basket of currencies.
Russia’s Central Bank Is Now Testing Real Asset-Pegged Stablecoins
The Bank of Russia, the country’s central bank, has reportedly started testing stablecoins pegged to real assets in a regulatory sandbox.
Elvira Nabiullina, Russia’s central bank head, said that the bank doesn’t assume that those stablecoins will function as a means of payment or become a substitute for money, Russian news service Interfax reported on Dec. 25.
BOC Governor Mentions Stablecoins And Digitalization In His 2020 Vision
Bank of Canada’s Governor Stephen Poloz talked about his future vision and issues for 2020. At his year-end speech, held on December 12, Governor Poloz discussed economic issues and structural forces acting on Canada’s global economy. His talk focused on Canada’s inflation, population growth, monetary policy and other fiscal concerns. He also touched on the impact of digitalization and the future of money. In this context, Governor Poloz points out that emerging payment technology, which includes Bitcoin and stablecoin applications, is a continuing area of study.
Fed Governor Comments On Stablecoins Future
While this talk had other panelists, who spoke on a range of policy subjects, Ms. Brainard's thoughts were about digital developments in monetary policy and central banking. In particular, consumer fraud and cybersecurity risks for using cryptocurrency were a primary concern. However, the reality of distributed ledger technology and stablecoin innovations highlight the need for regulatory cooperation in different national jurisdictions.
A crypto year in review from KR1
https://www.information-age.com/crypto-year-review-kr1-123486720/
Managing director and co-founder of crypto investment company KR1, Keld van Schreven, provides his review of crypto developments in 2019
The Main Property of Cash is Anonymity, How about Stablecoins?
https://www.coinspeaker.com/cash-anonymity-stablecoins/
What will happen to the centralized stablecoins in terms of payment anonymity? At the moment only one thing is clear: the banks will likely force masses to use their stablecoins with anonymity or without it.
New projects, partnerships, and investments
Poloniex Allows Up to $10,000 Daily Withdrawals for KYC-Less Accounts
Cryptocurrency exchange Poloniex announced a new account tier — dubbed Level 1 — allowing for up to $10,000 in daily withdrawals without requiring full Know Your Client (KYC) onboarding.
Chinese Internet Giant Tencent Plans to Create Digital Currency Research Group
Tencent, the operator of Chinese social media app WeChat, is planning to create a digital currency research group for the further advancement of blockchain technology research projects.
Startup Brings Crypto Payment Option to Over 730 Locations Worldwide
GoCrypto, a merchant-oriented upgrade of Eligma’s crypto payments solution Elipay, is targeting expansion into more countries around the world. The plans follow recent contribution into the project, in which Eligma secured 4 million euros (roughly $4.4 million) from Bitcoin.com and Swiss-based Pangea Blockchain Fund.
China’s Shenzhen Stock Exchange Launches Index of 50 Blockchain Firms
The stock exchange of China’s technology capital Shenzhen, the Shenzhen Stock Exchange (SSE), launched an index tracking the performance of 50 blockchain firms.
According to an announcement on Dec. 24, the index will be based on the stocks of 50 companies listed on the SSE that participate in the blockchain industry.
OKEx Launches Bitcoin Options Trades for Select Clients Ahead of January Launch
Malta-based cryptocurrency exchange OKEx has launched Bitcoin (BTC) options trading for a select group of traders ahead of a public launch in January 2020.
Bahamas Central Bank Will Pilot Digital Currency Starting December 27
The Central Bank of the Bahamas (CBOB) is planning to introduce a digital version of the Bahamian dollar in the Exuma district. According to an official press release, the CBOB will launch its digital currency (CBDC) pilot on Dec. 27, which will extend in the first half of 2020 to Abaco, a group of islands and barrier cays in the northern Bahamas.
European Central Bank Announces New DLT Proof-Of-Concept Called EUROchain
On December 17th, the European Central Bank published a new proof-of-concept project called EUROchain. The report published on the ECB's website states, “That proof of concept boasts several novel features developed by the ESCB’s EUROchain research network (with the support of Accenture and R3) using distributed ledger technology (DLT).” Based on the R3’s Corda platform, the project is a study on how privacy can be balanced with compliance procedures, like anti-money laundering rules, while DLT helps drive down the cost of transactions.
Venture Capitalists Have Invested Over $200M in Stablecoins
https://news.bitcoin.com/venture-capitalists-have-invested-over-200m-in-stablecoins/
Does the world need more stablecoins? Yes according to VCs, who have thrown hundreds of millions of dollars at projects developing stable or low volatility digital assets. The $45 million committed in 2019 takes the past two years of VC investment to over $200M.
South Korea Forms Task Force for Central Bank Digital Currency Research
South Korea's central bank, the Bank of Korea (BOK), plans to organize a task force dedicated to central bank digital currency (CBDC) research in the new year.
In its “Monetary Policy for 2020” brief, published on Dec. 27, BOK said it would continue to build on its existing research into distributed ledger technology, crypto assets, and CBDCs and to play an active role in overseeing and enhancing the security of payment and settlement systems.