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Crypto Browser Brave Hits 20 Million Monthly Users

Crypto Browser Brave Hits 20 Million Monthly Users

Crypto Browser Brave Hits 20 Million Monthly Users

By Robert Stevens

Brave’s monthly active user count has increased by 230% in the past year.

Crypto-friendly privacy browser Brave today announced that it has passed 20 million monthly active users and 7 million daily active users. That’s a 2.3x increase from this time last year when it reported 8.7 million monthly active users and 3 million daily active users. 

Brave is a Chromium-based browser with crypto baked in. Instead of lining Google’s pockets, Brave pays you in BAT, its ERC-20 based cryptocurrency token, when you watch web advertisements.

Brave pitches itself as a subversion of “surveillance capitalism,” which refers to the sale of personal data to third-party brokers. Instead of being a slave to Google, you’re a kind of freedom-fighting mercenary. Decrypt gave it a glowing review; we called it a “no-brainer” for current Chrome users. 

Brave, though, has disappointed its users several times on the long road to monetization. It redirected those searching for crypto exchanges to affiliate links and, at one point, set up donation funds for influencers without telling them

Politics and corporate spats aside, Brave’s idea is clearly catching on, and the company is beating its own high score almost every month. It claims that the average click-through rate for a Brave Ads campaign is 9%, far above the industry average of 2%, and that users have watched over 2 billion ads each month.

But Brave is still small and does not register on any major charts of global browser market shares. Chrome, by contrast, has 66.12% of the browser share per Statcounter.

Article produced by Robert Stevens

https://decrypt.co/46986/crypto-browser-brave-hits-20-million-monthly-users

 

ecosystem for entrepreneurs

 

Heiko Closhen, Entrepreneur

NOWPayments Review An Easy to Integrate Crypto Payment Gateway

NOWPayments Review – An Easy to Integrate Crypto Payment Gateway


NOWPayments is a custody-free cryptocurrency payment processor that simplifies the process of accepting and making crypto payments from all across the world.

In this Altcoin Explorer, we deep dive into NOWPayments, a cryptocurrency payment gateway that allows merchants to seamlessly accept and make payments in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and fiat-pegged stablecoins.

NOWPayments.io Review: How to Integrate?

NOWPayments describes itself as the easiest way to accept cryptocurrency payments, and it is hard to argue otherwise. Established by leading cryptocurrency exchange service ChangeNOW in 2019, NOWPayments has quickly cemented itself as the go-to cryptocurrency payment gateway with rich user experience.

Integration via API

With a sleek and intuitive user-interface, NOWPayments provides a simple, hassle-free, and secure API that can be integrated into any platform to enable crypto payments and receipts. The process of integrating NOWPayments into a platform is quite simple, as explained below.

Steps to Integrate NOWPayments API

To enjoy the benefits of NOWPayments.io API, users are required to follow the given steps:

1) Sign-up at NOWPayments.io with your email and set up an account after email verification

2) Sign-in to your NOWPayments account and access the Dashboard page

3) Click on the “Add new key” button and save the API key displayed

4) Access the digital wallet to withdraw funds on “Outcome wallet” page

5) You can now use the API to accept and send crypto payments

In addition to the API, NOWPayments can be integrated in several other ways.

Integration via Widget and Buttons

For instance, the NOWPayments widget is an easy way to integrate the crypto gateway service on the platform. Just copy a small source code and paste it to your web page, and you’re good to go.  Once integrated, the widget can be used for a variety of purposes including accepting quick donations in more than 50 cryptocurrencies. Additionally, the donation does not even require the users to leave the page as the widget allows them to pay from right where they are. Similarly, users can also integrate NOWPayments via buttons. Notably, the donation button can be placed anywhere on the website. Whenever a user clicks on the but, they will be redirected to the exact page where they can donate.

Additional Merchant Integration Options

In addition to the aforementioned integration options, NOWPayments offers several platform-specific plug-ins to cater to merchants’ business needs. 

WooCommerce Integration

For instance, the WooCommerce plug-in equips merchants with their stores on WordPress to start accepting cryptocurrency payments with ease. It also takes care of the discrepancy in cryptocurrencies, courtesy of ChangeNOW’s auto-conversion feature. This means that if a merchant only accepts payments in BTC and the customer wants to pay in ETH, then the NOWPayment plug-in’s auto-conversion feature will automatically convert the incoming ETH into BTC and deposit it to the merchant’s wallet.

WHMCS Integration

Similar to the WooCommerce plugin, if a user’s web store is built on the WHMCS marketplace, then they can choose to integrate NOWPayments crypto payments services via the WHMCS plugin. 

Magento 2 Integration

NOWPayments offers the Magento 2 plugin that can be utilized to enable your web store to accept and send crypto payments. To use this plugin, users are required to login to the Magento Admin page and configure the payment method. After entering the correct API Key and IPN secret key, users can start receiving crypto payments on their platform. You can learn more about the Magento 2 plugin here. 

OpenCart Integration

Users that operate their platform on the OpenCart management system can utilize the OpenCart plug-in to permit crypto payments. Interested users can go through the detailed steps for OpenCart plug-in integration here.

Integration via Instant Payments Notifications

NOWPayments provides another simple to use method of integration in the form of Instant Payments Notifications (IPS). IPS feature keeps the sellers in the loop of the current state of the transaction. Whenever there is a change in the status of the transaction, IPS notifies the involved parties to ensure that all are on the same page. 

Myriad Features of NOWPayments

NOWPayments understands the several bottlenecks hindering the mainstream adoption of cryptocurrencies as a viable medium of payments and, therefore, focuses on making the crypto user experience as seamless as possible. To ensure that its users enjoy a smooth crypto experience, NOWPayments provides a swathe of cutting-edge features. 

Automatic Coin Conversion

Cryptocurrencies are volatile. Therefore, to protect users from the wild price swings, NOWPayments leverages ChangeNOW’s auto coin conversion mechanism to provide the option to convert cryptocurrencies into fiat-pegged stablecoins, ensuring that users can transact in crypto without worrying about its price.

Rapid Withdrawals 

It is essential to have quick access to currencies that are volatile to ensure users do not lose out on their transactional gains due to unanticipated price fluctuations. Keeping this in mind, NOWPayments offers instant crypto payment withdrawals to all its users. As soon as a payment arrives, it is instantly transferred to the users’ secure personal wallet where they can access their funds.

Unparalleled Security

Speaking of wallets, NOWPayments gives utmost priority to the safety of its users’ funds. To that effect, NOWPayments has developed itself into a custody-free service. All payments received by a user are instantly converted into crypto and sent to a wallet that only the user has access to. Not even NOWPayments can access these wallets.

24 Hour Payment Window

The cryptocurrency market is round the clock market, and it only makes sense for services that operate in this space to cater to their clients’ needs 24/7. NOWPayments ensures this through its 24-hour payment window that essentially allows users to complete transactions up to 24 hours after creating a payment. Further, keeping in mind the need for rapid settlements for cryptocurrencies, NOWPayments provides instant transaction speeds. NOWPayments ensures the payment and receipt of funds is settled in as less as 5 minutes, faster than anywhere else in the world.

24/7 Support

At the same time, NOWPayments also provides continuous 24/7 customer care support to address any issues that its customers might face unexpectedly. Users can contact NOWPayments support heroes at support@nowpayments.io.

Support for Over 50 Cryptocurrencies and Counting

At the time of writing, NOWPayments supports more than 50 cryptocurrencies and continues to add more cryptocurrencies to its catalog regularly. Some of the most prominent cryptocurrencies supported by NOWPayments include Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and BinanceCoin, among several others. Besides, NOWPayments also supports a wide variety of stablecoins such as USDT, GUSD, BUSD, PAX, and TUSD for users who’d want to enjoy the benefits of cryptocurrencies without the volatility.

NOWPayments Invoice

Recently, NOWPayments introduced the multi-utility Invoice feature that makes the user’s platform look more sophisticated and polished and promotes operational efficiency. The Invoice feature simplifies the payment process in that it doesn’t require the user to share their wallet address or the exact sum to be paid. Rather, with convenience at its core, Invoice allows users to make crypto transactions by only specifying a small sum, a description, and the type of currency. In addition, Invoice helps users to make immediate payments with just a single click, thereby saving time for both the clients and the recipients. Invoice also allows users to keep a record of their past transactions to track the movement of their funds and help with taxation. To learn more about how to integrate Invoice into your platform, click here.

Competitive Transaction Fee

Crypto transaction processing fees can, over time, make a significant dent in user’s pockets, thereby discouraging them from embracing crypto as a viable medium of payment. NOWPayments fixes this. NOWPayments introduces an innovative approach to tackle the transaction fees. If a user’s monthly asset flow in BTC terms crosses a certain threshold, then NOWPayment would offer that user with a smaller fee. What’s more, if a user reaches the target volume toward the end of the month, NOWPayments will pay them a rebate adjusted for the fee difference. In a nutshell, the higher the transaction volume incurred by a user, the smaller the transaction fee that they would have to pay. The following infographic sheds light on the specifics of the fee discount offered by NOWPayments.

Strong Backing from Partners

A primary concern among those looking to enter the cryptocurrency space is that of legitimacy. Indeed, the numerous scams and Ponzi schemes in the industry have slightly marred its public image. This begs the question, is NOWPayments legit?  To answer it, NOWPayments is a highly-reputed and trusted name in the industry which enjoys tremendous goodwill among its users. NOWPayments has numerous impactful partners including Travala.com, and Guarda Wallet, among others, which is a testimony to the platform’s legitimacy. 

Final Thoughts

Concluding, NOWPayments addresses and fixes several of the major obstacles hindering the wider use of cryptocurrencies among businesses. NOWPayments not only ensures the protection of users from the notorious price swings observed in cryptocurrencies but also benefits them by offering a battle-hardened and time-tested crypto integration solution that can be deployed without any hassle. NOWPayments’ minuscule transaction fee, coupled with its plethora of robust features, provides an excellent opportunity for any business interested in readying itself for tomorrow’s cryptocurrency-driven economy.

Article Produced By
Aisshwarya Tiwar

Aisshwarya is a freelance writer and editor who relishes writing about magic Internet money. He has worked as a financial consultant and holds a degree in Business and Economics and a post-graduate diploma in Liberal Studies. In his free time, Aisshwarya likes to make 8-bit music.

https://btcmanager.com/nowpayments-review-easy-integrate-crypto-payment-gateway/

Heiko Closhen, Entrepreneur

Bitcoin Ether and XRP Weekly Market Update October 5 2020

Bitcoin, Ether, and XRP Weekly Market Update October 5, 2020


The total crypto market cap lost $6.7 billion of its value for the last seven days and now stands at $339.8 billion.

The top 10 currencies are mostly in red for the same period with ChainLink (LINK) loosing 12.5 percent while Binance Coin (BNB) added 10.8 percent. By the time of writing bitcoin is trading at $10,673, ether (ETH) is hovering around $351. Ripple (XRP) moved up to $0.248.

BTC/USD

Bitcoin moved above the $10,700 resistance zone on Sunday, September 27, and closed the week with a 1.3 percent loss. The coin was on its way up ever since it touched the $10,100 horizontal support on the daily timeframe on September 23 and successfully surpassed both the 100-day and 26-day EMAs. The BTC/USD pair opened the new trading period on Monday by forming a short red candle to $10,680. Buyers even managed to push the price up to $10,943 during intraday, but the momentum was not strong enough to fuel a run towards the next resistance at $11,000. On Tuesday, September 29 the leading cryptocurrency once again changed direction. It moved up to $10,840 as the monthly close was fast approaching. A close above $10,700 would keep the bullish case intact. The mid-week session on Wednesday saw a break below the above-mentioned line in the early hours of trading. In the evening BTC managed to recover and closed the month at $10,771 thus keeping the uptrend alive. The coin was 7.5 percent down on a monthly basis.

On Thursday, October 1, the BTC/USD pair climbed up to $10,940 during intraday, but then started to drop and eventually closed the day with a loss to $10,619. We even saw bears pushing the price below the support line and then all the way down to $10,430. The Friday session found BTC hitting the next horizontal support, the monthly one near $10,360 in the early hours of trading. It formed a short red candle to $10,575. The weekend of October 3-4 started with a fourth-straight losing session for bitcoin on Saturday as it touched the 100-day EMA at $10,550. On Sunday, it slightly recovered and closed the week at $10,673, re-entering the resistance area.

ETH/USD

The Ethereum Project token ETH was on its way up since it hit the weekly support zone near $315 on September 23. The coin formed its fourth consecutive green candle on the daily chart on Sunday, September 27, and closed the seven-day period at $357, right in the middle of the $360-$350 resistance area. The ether was still 3.6 percent down for the week. On Monday, the ETH/USD pair fell down to $353, but not before reaching $370 during intraday. Bulls were attempting to break above the daily resistance, but it proofed to be a solid one. On Tuesday, September 29 they were once again rejected at $360 as the lack of momentum combined with the flat trading volumes could not trigger a new uptrend movement.

The Wednesday session, which was also the last for September, was a low volatility one and the ETH token remained flat. It registered a 16.8 loss on a monthly basis. The leading altcoin saw some great instability on Thursday, October 1. It was trading in the wide range between $370-$344 before closing with a loss to $252 thus erasing 2.2 percent of its value. The ether continued to slide on Friday, ending the workweek at $345. The bear pressure was increasing and sellers succeeded in dragging the price down to the local horizontal support near $335 at some point during the day. The ETH token started the weekend with a low volatility session on Saturday, during which it remained flat. Then on Sunday it started moving up and ended the seven-day period with a green candle to $352.

XRP/USD

The Ripple company token XRP climbed up to $0.243 on Sunday, September 27, and hit the 26-day EMA after successfully confirming its presence above the 100-day one. It closed the seven-day period 1.2 percent lower. The XRP/USD pair started trading on Monday by moving all the way up to $0.248 during intraday. Bulls, however, were not able to keep up the pace and started to lose moment, closing the session at $0.241 and with a small loss. On Tuesday, September 29, one of the leading altcoins was trading in the $0.238-$0.246 once again forming a green candle on the daily chart. The “ripple” coin was now caught in a local consolidation. The mid-week session on Wednesday found XRP dropping down to $0.237 in the morning before recovering to $0.241 in the second part of the trading day. The coin closed the month of September with a 14.2 percent loss.

On Thursday, October 1, the 26 and 100-day EMAs crossed at $0.241, which served as a resistance point for the XRP/USD pair. It dropped down to $0.238 and erased yet another 1.5 percent of its value. XRP continued to slide on the last day of the workweek ending the session at $0.234, but not before breaking below the $0.23 horizontal support during intraday. The first day of the weekend came with a continuation of the downtrend, this time to $0.23.On Sunday, October 4, however, we saw a big reversal in the current direction as bulls formed a solid green candle to $0.248, which resulted in a 7.8 percent increase.

Altcoin of the Week

Our Altcoin of the week is Arweave (AR). One of the few altcoins to close the week on green territory, this little-known cryptocurrency grew by 24.2 percent for the last seven days and is also 14.8 percent up for the two-week period. Arweave is a new type of decentralized storage, which uses the blockchain technology to preserve customer data in a more effective way. It reached a high of $5.27 on Monday, September 28, and moved up to #69 on the CoinGecko’s Top 100 list with a total market capitalization of approximately $182 million. As of the time of writing, AR is trading at 0.000390 against BTC on Bittrex:

Article Produced By
Georgi Hristov

Georgi Hristov is a crypto and blockchain enthusiast from Sofia, Bulgaria. He holds a bachelor's degree in intellectual property and a master's in international finances. He has been involved in the cryptosphere as a trader, miner, and blogger.

https://btcmanager.com/bitcoin-ether-and-xrp-weekly-market-update-october-5-2020/

Heiko Closhen, Entrepreneur

Crypto ‘Is Now Finally Being Taken Seriously’ By Taxman

Crypto 'Is Now Finally Being Taken Seriously' By Taxman


The major consulting company, PwC said that the increased interest in cryptoassets from tax authorities and other regulators shows that this asset class is now finally being taken seriously.

(Updated at 14:59 UTC: the new last paragraph has been added). "What our research shows is that the guidance issued by many tax authorities is already getting dated. Yes – it is important that people know how to account for tax on the trading of bitcoin and other cryptocurrencies but that is really crypto tax 101," Peter Brewin, Tax Partner, PwC Hong Kong, was quoted as saying in a press release. However, he stressed that in nearly all jurisdictions the crypto industry is still lacking principles-based guidance that is fit for the new decentralized economy.

Today, PwC released its first annual Global Crypto Tax Report that shows that few or none jurisdictions have issued guidance on crypto borrowing and lending, decentralized finance, non-fungible tokens, tokenized assets, and staking income. "The PwC survey reveals that the most common treatment is to view cryptoassets as a type of property. Often this means that spending these for acquiring goods and services leads to a tax charge on disposal. This will continue to act as a major impediment to mass adoption of many crypto assets as a means of payment, unless technology solutions can be found to ease the administrative burden for users," the company said.

It also published the annual PwC Crypto Tax Index which ranks jurisdictions based on how comprehensive their crypto tax guidance is. Liechtenstein tops this year’s rankings. "Having specific crypto tax guidance is an essential building block of the continuous institutionalization of the crypto ecosystem," Henri Arslanian, PwC Global Crypto Leader, concluded. Meanwhile, as recently reported by The Wall Street Journal, the US Internal Revenue Service is making it a lot harder to pretend you don’t have bitcoin or other cryptoassets hidden away somewhere. They plan to alter the standard 1040 form by putting this question on the front page: At any time during 2020, did you sell, receive, send, exchange or otherwise acquire any financial interest in any virtual currency? The taxpayer must check the box "Yes" or "No."

At the same time, there was mixed news for the Japanese crypto industry as the regulatory Financial Services Agency (FCA), the body that polices the nation’s crypto companies, made no mention of the industry in its latest tax reform request submission. The FCA periodically passes tax reform requests on to the Ministry of Finance, which then has the power to recommend to parliament and the cabinet that these become enshrined in law. But per media outlet Coin Post, the FCA has made no mention of crypto tax reform – meaning that campaigners for more lenient crypto tax requirements could face frustration. However, on the plus side, the FCA’s silence on the matter could also indicate that crypto tax hikes are not on the horizon in the foreseeable future.

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.

https://cryptonews.com/news/crypto-is-now-finally-being-taken-seriously-by-taxman-pwc-7875.htm

Heiko Closhen, Entrepreneur

Top 4 Risks DeFi Investors Face

Top 4 Risks DeFi Investors Face


Impressive growth in the DeFi (decentralized finance) market since the start of the year has shown us that there is a high demand for yield-generating protocols, despite the risky nature of these new financial products.

DeFi’s value proposition is easily apparent: borderless access to a host of financial services provides the user with a significant upside while simultaneously increasing their financial sovereignty. Financial inclusion, cost efficiency, composability, and readily available liquidity are among the opportunities created by various DeFi projects. Even if – for now – it’s mostly about yield generation and high risks.

These risks are typically grouped into four major categories:

  • Coding risk
  • Oracle/centralization risk
  • Financial risk
  • Regulatory risk

Coding risk

Coding risks refer to the attack vectors that can be exploited due to the underlying code that supports the protocol or platform. DeFi is simply a suite of software, created by lines of code, that supports a host of financial services. Given the complex nature of DeFi protocols, it is not uncommon for there to be errors in the code that can provide malicious parties with an attack vector through which they can steal funds (and they do). However, outside of the obvious risk of losing funds through a hack, coding risks also pose a significant risk to the greater DeFi ecosystem. Due to the composability in DeFi, if one protocol is unstable, there may very well be a risk for the entire connected ecosystem.

In its most recent report, The 3rd Global Cryptoasset Benchmarking Study, the Cambridge Centre for Alternative Finance explained this risk stating: “Stacking and composability of smart-contracts also pose a risk. Should an underlying smart-contract break then the stack may fall like a house of cards.”

Oracle/centralization risk

Many of the protocols within the DeFi space are dependent or make use of a centralized tool. Due to the very nascent nature of the DeFi sector, the developing teams have systems in place that confer certain power to a centralized party to reduce inefficiencies or reduce attack vectors. Ironically, while these centralized systems provide the developing platform with some advantages, they are also a significant risk for the functioning of the ecosystem. (Learn more: Why DeFi Isn’t Always As Decentralized As You Might Think) Take, for instance, Oracles, which are leveraged by a number of Automated Market Makers (AMMs) and decentralized exchanges (DEXs), typically receive data from a single source. This can pose a risk as it is trivial for a malicious party to take control of the singular source of data and manipulate the market to their profit.

While it is important to note that most developer teams are focused on phasing out the centralized aspects of their ecosystems over time, these tools still pose risks while they are in place. According to the Cryptoasset Benchmarking Study, “Oracles, either hardware or software, funnel real-world data to the smart contract. As several attacks targeted at decentralized protocols have shown, oracles are a possible source of systemic risk and their data feeding role is prone to manipulation.”

Financial risk

DeFi protocols are based on public blockchains. These blockchains typically have a native digital asset. The price performance of the asset of the supporting blockchain is likely to affect the value of the holdings locked in a DeFi protocol. While this may lead to profit, it is also possible that there are losses. Additionally, there is a risk of Impermanent loss (IL). Impermanent loss refers to the phenomenon where tokens held in an AMM are seen to have a different value than they would if they were being held in a wallet. Due to the synergistic events that occur in an AMM to keep the ecosystem functioning, one may find that his holdings are of less value in the AMM than if they had just kept the holdings in a wallet.

The Balancer Protocol defines IL as “the percentage by which a pool is worth less than what one would have if they had instead just held the tokens outside of the pool.” It is important to note that IL is seen to balance itself out the longer a user participates in an AMM. However, it still remains a risk.

Regulatory risk

Just like the greater cryptoasset sector, the DeFi industry is subject to an uncertain regulatory environment. Due to its nascence, the blockchain industry is under intense scrutiny from regulators who are tasked with protecting the greater public. Unfortunately, due to a combination of factors, such as a lack of understanding and the complexities in technology, some regulators and jurisdictions are not in favor of the DeFi space. Fortunately, this issue is likely to be alleviated with time. “As the space grows, the response of regulators to decentralized financial applications is a regulatory risk that needs greater study and understanding,” the researchers the Cambridge Centre for Alternative Finance concluded.

Article Produced By
Alex Lielacher

Alex is a former bond trader who now works in blockchain media. He is a regular contributor to Cryptonews.com, among several blockchain news publications where he shares his insights on cryptocurrency investing and blockchain innovation. He has been following bitcoin since 2011.

https://cryptonews.com/exclusives/top-4-risks-defi-investors-face-7892.htm

Heiko Closhen, Entrepreneur

This data metric suggests the crypto market could soon see another altseason

This data metric suggests the crypto market could soon see another “altseason”


The crypto market has taken a beating throughout the past few days and weeks,

with sellers taking full control over altcoins as Bitcoin oscillates within a relatively wide trading range between $10,200 and $11,200. This has created an air of uncertainty amongst investors, who are now fleeing what are referred to as “beta assets” in order to preserve their capital in case further downside is imminent.

The crypto market has been dealt multiple blows throughout the past week, starting with the $150m KuCoin hack, followed by news surrounding the CFTC’s pursuit of the BitMEX co-founders on charges of violating multiple regulations. Turbulence in the traditional market as a result of President Donald Trump’s Coronavirus diagnosis added to the crypto market’s weakness and may continue creating fear amongst investors. Until Bitcoin is able to stabilize around its current price region or begin pushing higher, there’s a possibility that altcoins will continue seeing intense selling pressure. That being said, one fundamental metric does seem to indicate that upside could be imminent for altcoins, and particularly those residing within the DeFi sector.

DeFi crypto tokens hit hard by market-wide turbulence

The digital assets within the decentralized finance sector have been particularly struck by the recent crypto market downturn. This is partially due to the highly accelerated bubble cycle that these tokens underwent throughout July and August, as many of them saw returns of 100 percent or more throughout the span of just a few months. According to CryptoSlate’s proprietary data, the DeFi coin sector has shed 11 percent of its value throughout the past seven days. Over the past 24-hours alone, this sector has declined by 4 percent. As long as there is turbulence throughout the broader market, these crypto assets will likely continue seeing a pattern of underperformance.

This indicator suggests the DeFi sector may soon kick off another uptrend 

Analytics platform Santiment explained in a recent post that trading volume on decentralized exchanges like Uniswap provides insight into future trends within the DeFi sector. They note that there is an obvious downtrend in volume that, once broken, could be a sign that a leg higher is imminent for this fragment of the

crypto market.

“We believe there is fundamental metric that could possibly confirm the altcoin season quite early… DEX volumes are kind of a proxy of people gambling. More people trading means the crowd gets excited. In the middle of the cycle people will be talking about it everywhere again.”

Article Produced By
Cole Petersen

https://cryptoslate.com/this-data-metric-suggests-the-crypto-market-could-soon-see-another-altseason/

 

Heiko Closhen, Entrepreneur

RG coins Bulgarian crypto Exchange owner charged over auction fraud scheme

RG coins Bulgarian crypto Exchange owner charged over auction fraud scheme

RG coins Bulgarian crypto Exchange owner charged over auction fraud scheme

  • Rossen Iossifov has just recently been convicted of operating a multi-million dollar money-laundering operation in a transactional auction fraud scheme.

  • Following a two week trial, the man behind the scheme was found guilty by a federal jury in Frankfort Kentucky as well as being part of a conspiracy to commit money laundering and even a conspiracy to commit racketeering.

A Bulgarian national and the owner of RG coins cryptocurrency platform, Rossen Iossifov has just recently been convicted of operating a multi-million dollar money-laundering operation in a transactional auction fraud scheme. Following a two week trial, the man behind the scheme was found guilty by a federal jury in Frankfort Kentucky as well as being part of a conspiracy to commit money laundering and even a conspiracy to commit racketeering. However, he will not be facing any sentencing until January next year.

Around 900 people from the United States have been conned in this scheme that saw the company post advertisements on popular auction platforms such as craigslist and eBay for high-value goods such as vehicles that just simply did not exist. The scammers would provide their victims with fraudulent documents and invoices which would feature the logos of reliable and branded companies to make it look like it was a legitimate business opportunity. Once they receive payment, the people working for the scheme would convert the funds into cryptocurrency and transfer the proceeds to offshore money launderers. It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

Article Produced By
Robert Johnson

Robert is a keen investor with a particular interest in cryptocurrencies. He has been involved in the industry for many years, and because of this, has gathered a lot of knowledge surrounding this area. He studied English at university level and has a passion for writing. He loves being able to combine his two mains interests on a daily basis.

https://cryptodaily.co.uk/2020/09/rg-coins-bulgarian-crypto-exchange-owner-charged-over-auction-fraud-scheme

Heiko Closhen, Entrepreneur

2019 China Mining Industry Summit – Recap And Summary

 

Recap And Summary

BEIJING, June 5, 2019 – BitDeer.com’s premier industry event wrapped up successfully in Beijing. 2019 China Mining Industry Summit has brought together the biggest names of the Chinese mining ecosystem. Prominent Chinese blockchain and tech media attended the event and reported on the significant industry announcements. With the leaders of the Chinese blockchain mining group in one conference, they began to discuss the potential of computing power sharing platforms such as Bitdeer.com, and new trends and emerging patterns in the mining industry.

The conference saw the likes of the following crypto mining industry leaders:

  • Celine Lu – Founder & CEO, BitDeer.com
  • Zhuoer Jiang – CEO, BTC.TOP
  • Xiaojun Fan – Head of APAC Sales, Bitmain
  • Zhong Zhuang – CEO, BTC.com
  • Xin Tian – Co-Founder, AntPool
  • Fa Zhu – COO, Poolin.com
  • Jiazhi Jiang – Senior Blockchain Developer
  • Baoqing Liang – CTO, Bitmain Data Center
  • Yao Li – Vice President, Cobo Wallet
  • Qingfei Li – CMO, F2Pool
  • Xiao Su – Chief Representative for China, Bitcoin.com
  • Yang Tong – Partner, Jinse
  • Qiuwei Gao – CMO, RiskHash
  • Feifan Li – Co-Founder, ChainDD
  • Lei Chen – Founder & CEO, BitWhale

As the world’s leading computing power sharing platform, BitDeer.com has achieved great success with 80% repurchase rate contributed by over one million monthly active users in 223 regions since entering the market six months ago. The platform also witnessed a 300% revenue growth within three months. Its market share ranks among the top 3 in the computing power sharing industry, and will continue to be the fastest growing platform.

Empowering Win-Win Relationships

In retrospect, cryptocurrencies had lost 80% of market value from the highs of 2017 to lows of 2018. Coming into 2019, the market is giving positive signals: Hashrates have hit historic highs; and the numbers of active Bitcoin addresses is rebounding rapidly with the number of Bitcoin wallet users beginning to surge.

As an innovative creation in fintech, Bitcoin is becoming increasingly accepted by users and merchants worldwide. In addition, traditional finance and internet giants such as JP Morgan, Goldman Sachs, Microsoft, Google and Facebook are beginning to enter the nascent cryptocurrency industry. Celine Lu, CEO of BitDeer.com, sees this as a must-take opportunity. In her keynote speech “Computing Power Sharing: Ecological Synergy Accelerator”, Lu mentioned since 2018, computing power sharing no longer relied on bubble prices in the bear market. Instead, it focuses on providing the best service to users by leveraging global resources in the areas of technology, operations, and management. At present, the computing power sharing industry is at a new starting point where BitDeer stands in the core of resource aggregation. Teamed with respectable industry business partners, BitDeer.com will bring higher value to its global users and build a well-developed ecosystem to fuel the whole industry.

Lu shared valuable statistics from BitDeer for the first time at the conference. The net profit of BTC mining for BitDeer’s users exceeds RMBï¿¥6 million (USD $0.87 million) per day, with 4 orders placed monthly on average. The platform’s biggest spender who invested a total of RMBï¿¥50 million (USD $7.24 million) is expecting a profit of the same amount. Eight of BitDeer’s partner mining pools have achieved a hash rate of over 3,000P and ten of BitDeer’s partner mining facilities have achieved a total sales revenue of over RMBï¿¥300 million (USD $43.39 million). More than 20 of BitDeer’s global sales partners have received tens of millions in profit sharing. As the competition in the market turns white-hot, building a diversified, healthy and stable business ecosystem is an irresistible trend. “BitDeer has initially established a partnership mechanism,” said Celine, while presenting BitDeer’s latest partnership plans to attendees.

Lu also introduced BitDeer’s computing power partnership models with various industry members:

  • Mining pools can join BitDeer’s global users to obtain computing power, and receive additional services to promote their brands and share user traffic.
  • A lower entry barrier is now available for mining facilities and rigs, who can now start mining with only hundreds of mining machines. BitDeer will sell their computing power on consignment to achieve a better cash flow and thus maximize the value of their assets.
  • For sales partners, BitDeer provides three different collaboration models: traffic, affiliate sales and agent. With BitDeer.com, sales partners are able to share millions of active traffic and profits.
  • Partnering with third parties, BitDeer.com is working on building cryptocurrency payment and “coin to coin” exchange system.

Standing at year one of BitDeer.com, Lu believes an open mind is essential to connect partners from mining facilities, mining pools, sales, technology, traffic and service providers. BitDeer is building a computing power ecosystem community by leveraging its resources and utilizing its competitive advantages. In his speech, Bitmain’s Head of APAC Sales Xiaojun Fan shared his thoughts and experience of working together with BitDeer.com. He was impressed with the computing power possessed by BitDeer and its strategic vision. In addition, the latest firmware for Antminer S9 miners made its debut at the summit. Alongside representatives from eight strategic partners, BitDeer.com’s founder & CEO Celine Lu kicked off the mining ecosystem launching ceremony, signaling a new era for China’s crypto mining industry.

Computing Power Sharing Industry Standard

Since its 2014 birth, the Computing Power Sharing industry has been chaotic. As the leading platform, BitDeer will guide the industry in compliance with business development and environment. To begin the second half of the conference, Celine Lu read out content of the first ever ‘Computing Power Sharing Industry Standard Draft’ issued by BitDeer. She stated that she would love to invite all partners to join a discussion of the Draft and the formation of an effective mechanism to help users and practitioners. The Draft regulated three key indexes: transparent computing-power; open and fair modes; and reasonable fluctuations. It also unified the access standard of mining pools, facilities and rigs.

On the one hand, from the three dimensions of traceable, controllable and hash-rate mining pool, we can determine whether the hash rate is true and transparent, which is very crucial, according to Celine. On the other hand, the model needs to be open and transparent. Users can independently choose the mining pool, switch the mining pool, check the hash rate of their orders in the mining pool. While mining pools can regularly remit to users directly, which can be inquired from the information chain of the payment transaction. In addition, the fluctuating value should be up to the standard. In terms of fluctuating standard-reaching rate for hash rate of POW currency, the fluctuation of hash rate within 3% should account for more than 98%, and the fluctuation of hash rate within 1% should account for more than 85%. Based on the research and calculation of BitDeer, should the hash rare be not within the standard range, users will suffer from the loss of the mining earnings.

Last but not least, the criteria for access to mines are mainly reflected in three dimensions: it is a must to ensure that there is sufficient power to maintain 98% mining machinery and equipment under normal operation and normal network communication at least 98% of the time. There are strict network firewall settings, perfect fire prevention and disaster prevention facilities and the positive response from operation and maintenance personnel. And in terms of the access criteria of mining machine, the fluctuation of its hash rate is not more than or less than 5%. The equipment can operate normally under severe environmental conditions, such as high temperature, low temperature, humidity, dryness and sand. At least two spare mining pools should be set up to actively support the exploration of mining pools. Should there be something wrong with the current connected mining pools, they can be switched quickly. The life cycle of mining pools can be maintained for more than six months.

According to Celine Lu, data in the draft were extracted from key indicators in the operation and maintenance process of BitDeer.com, which has teamed up with four of the major mining pools in the world: ViaBTC, BTC.com, AntPool and F2PooL. The partnered mining pools account for more than half the worldwide the computing power which provides up-to-date accurate data for BitDeer. Not only does it provide valuable reference in standardizing industry data, improving the operation systems, regulating market, and establishing industry benchmarks, but also it proposes a perfect direction guiding the crypto industry to develop in a healthy and orderly way.

New Challenges and Opportunities

It is agreed by all panelists that, in the age of Blockchain 2.0, members of the mining ecosystem are expected to strengthen the capabilities to integrate resources in order to better serve and bring more value to the users. As a pioneer of the industry, BitDeer is believed to have provided a white-glove service to global individual miners, significantly reduced mining costs and thus lowered the barrier to entry. BitDeer.com has enlisted an army of talents and professionals, and leveraged global resources so that constrained parties could be better prepared and contribute to the mining ecosystem in the next bull market.

Miners, the most essential party in the mining ecosystem, are driven by profitability. In order to maximize mining profits and solve the operations management problems faced by mining facilities, Bitmain is soon launching a cloud monitor platform with joint efforts from BitDeer.com. Baoqing Liang, CTO of Bitmain Data Center, believes that the intelligent connectivity of cloud will ensure a stable output of computing power. The new cloud monitor platform will connect mining pools, profits and the management and operations. According to Qiuwei Gao, CMO of RiskHash, mining profitability is directly affected by the price and mining difficulty, and sense of risk control cannot be overemphasized in

the mining process.

“By partnering with BitDeer.com, the platform connecting computing power providers and individual miners, costs beared by mining pools are relatively more stable. Individuals miners are able to increase their risk resistance capabilities as well.”

Cobo Wallet VP Yao Li stated that as one of the top three wallet service providers, Cobo Wallet is looking forward to collaborating with BitDeer.com to connect the underlying payment system and support instant transfers. He believes the partnership will speech up the growth of crypto mining economy. In terms of the influence brought to the mining ecosystem by the halved Bitcoin price, panelists believe mining will continue to be a sound investment strategy. However, individual miners are still faced w th costs to run professional facilities. BitDeer’s computing power sharing model will provide an easier solution. The 2019 China Mining Industry Summit has shed light on the new mining ecosystem led by BitDeer and brought the leading computing power sharing platform’s competitive advantages as well as its potentialities to the crypto mining community.

Article Produced By
The Editorial Staff

https://www.investinblockchain.com/2019-china-mining-industry-summit-recap-and-summary/

Heiko Closhen, Entrepreneur

How To Calculate Taxes on Crypto Best Crypto Tax Software

How To Calculate Taxes on Crypto (Best Crypto Tax Software)

 How To Calculate Taxes on Crypto (Best Crypto Tax Software)

Crypto tax

Cryptocurrencies brought four main groups together: investors, traders, miners, and thieves.

As the cryptosphere gained more traction, revenue authorities came knocking and started talking about the need for crypto traders and investors to pay tax.

  Crypto Tax software compared  
Crypto tax tool Tax loss harvesting Notes
TokenTax Yes TurboTax Integration
Koinly NA Supports all major exchanges
Cryptotrader.tax Yes Supports USA & Australia
Zenledger Yes TurboTax partner
Cointracker (Recommended) Yes US, UK, Canada, Australia
Blox NA  
Beartax NA  
 

Then I realized: Ah, so Benjamin Franklin was right when he said nothing is certain in this world except death and taxes. As a crypto trader & investor, you need to pay taxes on your crypto income. If not, the tax collectors will come out looking for you. The question is, where do you start? Just like you, I had the same headache when I realized I had to start reporting my crypto activities for taxation. As a guide, I created this simple yet resource-packed piece to help you navigate the crypto taxation space.

So what’s inside this guide? 

  • Why should you worry about crypto taxation?.
  • Understand the crypto trading and investment activities that attract taxes and those that don’t. 
  • You will know the nuances of how to report your crypto revenue for taxation (no CPA needed). 
  • Above all, I’ll present you with the right tools and platforms to help you calculate and report your taxes hassle-free. Some tools we’ll explore together include: 
    • TokenTax
    • Zenledger 
    • CoinTracking
    • Bitcoin Taxes
    • Coin Tracker 
    • Koinly

Ready? Let’s get started.

Why should you be worried about taxes in crypto?

Whether you are obliged to pay tax on your crypto activities or not depends on where you find yourself. Crypto taxation is a serious topic when you live in the US, Australia, UK, Japan, and France. These countries have clear-cut regulations on the taxes crypto traders are supposed to pay. The table below shows countries with crypto tax rules, how they classify cryptocurrencies, and the type of tax you’re obliged to pay as a trader. 

Crypto tax regulation

Which of your crypto activities are taxable

Living in any of the countries mentioned above doesn’t mean you will pay tax on every crypto engagement under the sun. These are the cryptocurrency trading and investment activities that require you to pay tax. These activities cut across almost all countries. 

  • When you sell your cryptocurrency for fiat (USD, GBP, AUD, JPY, EUR…)
  • Exchanging your cryptocurrency for another cryptocurrency
  • Using your crypto assets to pay for goods or services
  • When you receive cryptocurrency as earnings (either through mining or as payment for services offered to a third party)

Non-taxable crypto activities. 

Not all cryptocurrency engagements attract taxes. Here are the activities you need to pay taxes on: 

  • When you move your cryptocurrency from one wallet to another or between crypto exchanges. 
  • Donating cryptocurrency to a non-taxable charity organization
  • When you buy crypto with fiat 
  • When you give cryptocurrency as a gift to a friend or family. 

How to determine the amount of tax you owe from your crypto earnings

Calculate tax on crypto earnings.The amount of tax you pay on your crypto engagements depends on the activity you undertake. (This is largely based on the tax regulations by the IRS in the US).

Capital Gains Tax

Buying and holding a crypto asset and then selling it at a future date attracts a capital gains tax. For example, if you buy bitcoin at $10,000 and sell it at a later date for $13,000, you’re required to pay a capital gains tax on the gains realized, which in this case is $3000. The percentage you pay as crypto capital gains tax, however, depends on whether you held your crypto assets for less than a year or over a year. This brings us to the two types of taxes in this category: Short-term and long-term capital gains tax (this part focuses on capital gains tax because crypto activities are currently, largely dominated by buying and selling). Remember, however, that there are other activities that attract tax like making a purchase with crypto or when you get paid in crypto for providing services and more).

For short-term capital gains tax

You’re obliged to pay a short-term capital gains tax when you make gains from the sale of your crypto assets after holding it for less than a year. In the United States, the percentage you pay on short-term capital gains taxes largely depends on whether you’re single, married or head of a household. The table below summarizes tax rates and the different percentages that apply to each group. 

For crypto traders in the US, the IRS has a full list of the tax rate that applies to short-term traders and investors.

For long-term capital gains 

You’re obliged to pay a long-term capital gains tax when you make gains from the sale of your cryptocurrency after holding it for over a year. The table below illustrates the tax rate for a long-term holder.

Essentially, the rates for long-term capital gains tax are lower and favorable to traders and investors compared to short-term capital gains tax rates. Thus, the tax system rewards those who hold their assets for a long time. hodl on for dear life.

Crypto taxation in the UK

If you’re a crypto trader in the UK,  you are obliged to pay capital gains tax or income tax depending on the crypto activities you undertake. Buying and selling crypto attracts a capital gains tax and receiving crypto as payment for services offered or as earnings from mining activities attracts an income tax. 

If you earn between £0 and £12,500 on your crypto activities annually, you’re exempted from paying tax. For traders earning between £12,501 and £50,000, you will pay 20% on your crypto earnings. Her Majesty’s Revenue and Customs’ (HMRC) policy paper, describes in detail the nature of crypto activities and taxes in the UK. 

6 Crypto taxation Tools & Apps

By now, you have an idea about crypto taxation in your country, how to determine the income taxable from your trading and investment, and the tax rates that apply to your activities. 

  • But do you have to go looking for a tax expert or a CPA to determine your tax and report it on your behalf?
  • Can you afford the fees that come with consulting with a third party?

If your answer to these questions is a big NO, then read on. This part of the post will take you through 5 cryptocurrency tax software that you can use to import and manage your trading data from crypto exchanges, calculate and report taxes on your crypto activities, all by yourself. Plus some bonus tools. 

Here are the tools you’ll discover: 

  • TokenTax
  • Koinly
  • Cointracking
  • Zenledger
  • CoinTracker
  • Bitcoin Taxes. 

Let’s see what each software can offer you in terms of calculating and reporting on your tax obligations.

Best Crypto tax reporting and calculation software:

1. TokenTax

TokenTax is one of the most extensive tax calculation and reporting software out there for any crypto trader. The platform has made the entire process hassle-free by integrating with almost every crypto exchange out there. It also works with thousands of cryptocurrencies, so you don’t have to worry about your altcoin not being part of the TokenTax calculation and reporting dashboard.  If you’re a crypto trader bent on minimizing your losses and maximizing your gains, you’ll be amazed by the minimization algorithm provided by TokenTax. This feature will recommend the coins that you should sell in order to minimize the tax you pay your crypto activities and helps you make optimum use of both your portfolio and the tax system. 

Notable features of TokenTax

  • Support for many file types, including Schedule C, 8938, FBAR, and 8949, among others. 
  • TokenTax is globally accessible. No matter your location, you can use it for tax reporting. 
  • It provides support for margin trading from Bitmex, Poloniex, and many other platforms. 
  • As a trader, TokenTax allows you to import data from your wallet or exchange automatically.
  • You can also integrate your tax reports with standard accounting tools such as CCH, Drake Accounting, and TurboTax among others.

2. Koinly

Koinly is another great tool for crypto traders and miners looking to do their taxes. It provides support for traders, investors, and miners in over 100 countries. If you’re looking for a modern portfolio tracker and crypto tax calculator, Koinly is a tool to check out. In calculating taxes, Koinly considers the accounting system of all supported countries.  This makes reporting and tax calculation simple no matter the country you’re. Even if your country is not listed, Koinly is ready to support you when you need help calculating your taxes. The best thing about Koinly is that it can generate country-specific tax forms such as the Form 8949 and Schedule D if you are in the USA or the K4 in Sweden or Capital gains summary if you are in the UK and so on. This means you can simply print out the report and send it to your tax authority instead of having to copy/paste figures onto a form by hand.

When it comes to exchanges, traders have many options to choose from. It also makes integrating with an exchange or wallet simple for any trader using secure read-only API connections. In total, Koinly supports 68 wallets such as Exodus, Trezor, Ledgers etc, over 300 exchanges, and more than 6000 cryptocurrencies. If you can’t find your exchange among the hundreds supported by Koinly you can simply download and import CSV or Excel files instead. Koinly can import such files without having to make manual changes to them. Tracking your trades and calculating taxes on Koinly is really very simple and easy.

Key features of Koinly

  • Modern and user-friendly UI that makes it really simple to use even for beginners.
  • Integrates with more than 300 exchanges and wallets via API or CSV files.
  • It allows you to track trades and transactions in real-time with profit/loss graphs and complete portfolio overview.
  • Supports Average Cost, FIFO, LIFO, and Specific Identification (Multiple Depot) accounting methods
  • Traders can generate tax reports based on the accounting system of their countries. 
  • Traders can export their crypto reports to general tax tools such as Xero and TurboTax. 
  • Generates legal tax documents for traders, including Form 8949 for US customers and K4 for Swedish traders. There’s also Rf1159 for Norwegian traders and many other country-specific documents.

3. CoinTracking

CoinTracking is another great and long-standing tool for all your crypto tax calculation and reporting. It is a crypto portfolio management platform that also provides great tax tools, giving you access to a comprehensive set of data in one dashboard. It tracks your crypto balances and trading milestones to help you make better decisions. 

Notable features of CoinTracking

  • CoinTracking provides support for many exchanges, including legacy support for closed exchanges like Mt. Gox.
  • It gives you access to real-time reports on profits, losses, and asset value. 
  • CoinTracking has support for over 6000 crypto assets, so even your shitcoin that just launched last 2 months might be there. 
  • Allows you to import data from exchanges and wallets with support for JSON, PDF, CSV, Excel, and XML file formats.

Also read: CoinTracking Review: How To Use CoinTracking App (+ Expert Tips)

4. Zenledger

If you’re a professional crypto investor in need of a reliable tax calculator, Zenledger might be a perfect fit. It supports many exchanges, crypto assets, and fiat currencies. Zenledger’s dashboard is simple, making it easy for a non-technical person to navigate the platform and calculate their tax without any trouble.

Features to look out for in Zenledger 

  • Zenledger takes every minute detail into account, so you don’t have to worry about overpaying your taxes. 
  • It comes with great CPA tools to help accountants who are into the crypto taxation ecosystem. 
  • It can automatically generate different tax reports using the data you provided in minutes. 

CoinTracker is another great tool for any crypto trader looking for simple and intuitive crypto tax software. Its user-friendly dashboard makes it easy for you to calculate and report tax even if you’re a beginner. Apart from its tax tools, CoinTracker also has great crypto investment analysis tools to help you make better trading decisions. 

Great features of CoinTracker

  • CoinTracker has partnered with Coinbase and TurboTax to streamline the tax reporting process for you. 
  • The platform has support for margin trading on major crypto exchanges 
  • It allows you to seamlessly connect your wallets to your exchanges, which gives you access to tax calculation and reporting tools and a portfolio management section, all in a single dashboard.

Blox is a comprehensive crypto tool for any trader or investor looking to organize their daily activities. As an all-in-one tool, Blox comes with almost everything you’ll need as a trader, from a tax calculator to a bookkeeping platform. Blox’s crypto management tool allows you to track your portfolio and manage your daily activities. It also has a bookkeeping tool for accounting purposes and helps you classify your transaction and earnings.  Essentially, the platform is built for exchanges, accounting firms that are into crypto, cryptocurrency financial advisors, individual traders, and institutional investors.

Some great features of Blox

  • You have a complete dashboard to track all your transactions and automatically synchronize them with your preferred crypto wallet or exchange.
  • Allows you to generate all the financial reports you’ll need, including accounts and transaction details, asset classification, and mining income, among others.
  • Blox also comes with an API to help developers seamlessly integrate the crypto portfolio management tool with wallets and exchanges.

Additional great crypto tax tools

  • BearTax – Supports referral affiliate calculation for crypto taxation.
  • Koinly

Do you need a CPA after you have calculated your crypto taxes?Crypto taxation is not that complicated. After you’ve compiled your crypto activities, your next step is to list your trades on the resource provided by your country’s revenue authorities (if you’re in the US, that’s the IRS form 8949). After this, you need to transfer your total gains to your 1040 Schedule D form (same procedure for stocks). Luckily, all the crypto tax resources listed in this guide make the entire process simple.

 

How are you calculating Cryptocurrency taxes?

As the cryptocurrencies are becoming mainstream and governments have started classifying Bitcoin and crypto earnings for tax purposes, it is important to become mindful of your crypto earnings.

TThe questions that I have for you:

  • Are you calculating taxes on crypto?
  • How are you doing tax calculations on crypto trading and investing?
  • What crypto tax software are you using?

Also, if you are aware of crypto tax rules for your country, do share that as well in the comment section below.

Article Produced By
Harsh Agrawal

About Harsh Agrawal:

An award-winning blogger with a track record of 10+ years.  He has a background in both finance and technology and holds professional qualifications in Information technology. An international speaker and author who loves blockchain and crypto world.

https://coinsutra.com/

Heiko Closhen, Entrepreneur

US banks can hold reserves backing crypto stablecoins

US banks can hold reserves backing crypto stablecoins

US banks can hold reserves backing crypto stablecoins
In a fundamentally important development for the cryptocurrency industry, the US Office of the Comptroller of the Currency (OCC) said today that national banks and federal savings associations are legally allowed to hold the currency “reserves” that back stablecoins.

Stablecoin reserves can now be held by US banks

For the uninitiated, stablecoins are specialized cryptocurrencies pegged on a 1:1 ratio with a fiat currency — most popularly the US dollar — that offer investors and traders with an easy fiat on-ramp to the crypto market. Examples include Circle, Tether, and even crypto exchange-backed currencies like Binance USD. So far, centralized bodies like custodian BitGo and Tether Foundation were trusted to hold the reserves they claimed: Meaning if there were $1 billion in USDT issued, the Tether Foundation was trusted to actually hold $1 billion in a bank account somewhere. However, this approach created controversies in the broader crypto market, and understandably so. But as per the OCC announcement, such reserves can now be stored with custodian and recognized US banks, a move that garners could garner trust among crypto market participants (although an ironic move considering the anti-bank ethos of cryptocurrencies). “National banks and federal savings associations currently engage in stablecoin-related activities involving billions of dollars each day,” said Acting Comptroller of the Currency Brian P. Brooks.

He added:

“This opinion provides greater regulatory certainty for banks within the federal banking system to provide those client services in a safe and sound manner.”

Stablecoin growth booming

In just the past six months of 2020, demand for digital dollar stablecoins has surged, with stablecoins such as the USDC, issued by US firm Circle, growing from just over 400 million in circulation to over 2.3 billion today, representing nearly 500% growth YTD. Meanwhile, in a statement shared with CryptoSlate, Circle said the USDC has supported over $130B in transactions on public blockchains and is already widely adopted and supported by hundreds of companies in the digital asset and blockchain ecosystem. It added, “With this clarity from the US Treasury Department around the standards for banks to hold reserves on behalf of stablecoin issuers, businesses of all sizes, fintech firms and banks can have more confidence in building on this innovation, while also ensuring that the guardrails and risk management expected from the US banking system can be applied to this new age of internet money.” But were banks really the answer for building trust in the reserves backing stablecoins? Allaire was also the founder, chairman and CEO of Brightcove, an online video platform used by media organizations worldwide.

Article Produced By
Jeremy Allaire

eremy Allaire is the founder, chairman, and CEO of Circle. Circle is a consumer Internet company focused on transforming the world economy with secure, simple, and less costly technology for storing and using money. Circle is backed by $76 million from investors including Goldman Sachs, IDG China, Breyer Capital, Accel, and General Catalyst. Allaire was also the founder, chairman and CEO of Brightcove, an online video platform used by media organizations worldwide. I started Brightcove in 2004, and have grown the company rapidly over the past few years, including a successful IPO of the company in 2012 (NASDAQ: BCOV).

https://cryptoslate.com/us-banks-can-hold-reserves-backing-crypto-stablecoins/

Heiko Closhen, Entrepreneur