G7 Says that Bitcoin Failed but Libra Poses Threat to Financial Stability

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G7 Says that Bitcoin Failed but Libra Poses Threat to Financial Stability
G7 has just recently released a report addressing a long list of concerns it has with global stablecoins like Libra.
G7 Says that Bitcoin Failed but Libra Poses Threat to Financial Stability

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Source: CoinSpeaker

Buy High and Sell Low? Circle Dumps Poloniex As Crypto Market Interest Wanes

Today, Circle, a US-based finance firm, has revealed that it is “spinning out” crypto trading platform Poloniex into its own independent company, in “an effort to create a competitive internationally-focused cryptocurrency exchange.”
Circle first acquired the crypto exchange back in February 2018, around peak interest in the crypto market. Does the company switching gears signal that interest has left the crypto market? Or are there additional implications for the US-based company around the regulation potentially coming to the space?
Poloniex to ‘Spin-Out’ Into Own Independent International Crypto Brand
Back in February 2018, before the bear market and dreaded crypto winter got fully underway, Goldman Sachs-backed finance firm Circle, acquired cryptocurrency exchange Poloniex for $400 million. Even major finance brands were FOMOing into the emerging market.
Circle failed to elevate the status of the crypto platform, and it fell far behind Coinbase, Binance, and other industry leaders, prompting Circle to “spin out” the crypto platform into its own independent firm, called Polo Digital Assets, Ltd.

1/5: We are spinning Poloniex out from Circle into a new company with backing by an investment group that plans to spend more than $100M developing the exchange to offer new features, services and assets to global customers.
— Poloniex Exchange (@Poloniex) October 18, 2019

Circle says that they faced “challenges as a US company growing a competitive international exchange,” but didn’t disclose what those challenges may be, however, the exchange taking a stance similar to Binance by barring US-based investors could be evidence of something more going on behind the scenes.
Backed by an “Asian investment group,” the new Poloniex will close trading to US crypto investors as of November 1st, potentially signaling that pressure from financial regulators in the United States may have prompted Circle to dump Poloniex.
Related Reading | Steven Mnuchin Hints at New Crypto Assets Regulations in the United States 
The United States has recently taken an opposing stance against Bitcoin and cryptocurrencies, and it’s a shockwave that’s been felt across the industry.
Poloniex says the investment group plans to spend more than $100 million to “develop and expand” the platform – and says that the “cryptocurrency revolution has just begun,” and that they are in it for the “long haul.”
Circle Doubling Down on USDC Stablecoin, Sets Sights on Tether
As for Circle, a lack of interest in the crypto market compared to when the firm first picked up Poloniex may be to blame for the exchange’s spin-out.

So Circle bought #Poloniex at the top and is now selling at the bottom.
Welcome to crypto, hope you enjoyed your stay
— Birch (@BitcoinBirch) October 18, 2019

But Circle isn’t exiting the crypto space entirely. The firm plans to “double down” and shift its focus entirely on building a “more open, global and accessible financial system,” through its USDC stablecoin.
Related Reading | New “Trustworthy” Stablecoin Could Be the Tether Killer
Recently, the arms race to become the top stablecoin has heated up after the announcement of Facebook’s Libra. USDC is growing in market share, making it the 24th largest crypto asset by market cap, valued at just under half a billion. However, Tether is currently the dominant stablecoin, and its $4 billion market cap demonstrates why companies would seek a piece of the young market. 
The post Buy High and Sell Low? Circle Dumps Poloniex As Crypto Market Interest Wanes appeared first on NewsBTC.
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G7 Confirms Libra Like Cryptocurrency Needs a Legal Basis

Social media giant Facebook has certainly rattled the regulatory feathers of global regulators with its grand plans for cryptocurrency world domination. Politicians and citizens alike are right to question Libra and those that will be pulling the strings behind it. The G7 group of economic powerhouses agrees that such stablecoins should not be allowed to launch until the profound international risks they pose are addressed.
Legal Basis For Stable Cryptocurrency
Earlier this week the G7, which comprises the US, UK, Canada, Germany, Japan, France and Italy, released a preliminary report addressing a long list of concerns it has with stablecoins like Libra.
The report concluded that Facebook could not provide evidence that it satisfied a long list of concerns including consumer and investor protection, data privacy and protection, financial integrity including AML/KYC compliance, fair competition and anti-trust, tax evasion, and cyber security.
The crypto task force, chaired by European Central Bank board member Benoit Coeure, stated;
“The G7 believes that no global stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks”
Today, Reuters reported that the G7 has confirmed its stance on stablecoins, specifically Libra, adding that;
“Private sector entities that design stablecoin arrangements are expected to address a wide array of legal, regulatory and oversight challenges and risks,”
Libra Association Responds
In a response the consortium, which now numbers 21 members after a week of high profile defections, responded with their commitments.
“The Libra Association is committed to building a system that replicates or exceeds current standards for consumer protection, financial stability, and global cooperation to prevent money laundering and illicit finance while preserving national sovereignty over monetary policy,”
This has been the expected response and the Association has yet to prove any of this which is why the cryptocurrency launch date is likely to be extended several times.
Facebook may tout a system that ‘improves access and lowers the costs of financial services for billions of people’ but it already profits from their personal data, so the concerns over financial disruptions are valid.
The Libra response basically took each of the G7’s challenges and said ‘yes, we will comply’ without showing a shred of evidence as to how that will be achieved. It added;
“Libra, unlike some payment networks, will operate with transparency and in partnership with regulators.”
But the bottom line is that Facebook simply cannot be trusted with finances on a global scale. The list of scandals involving the social media monopoly lengthens every month and most involve privacy violations, data and security breaches, information manipulation, and even election meddling.
Just the week US congressman Warren Davidson hinted at the ‘shitcoin’ like qualities of Libra suggesting it uses a decentralized and truly transparent solution such as Bitcoin instead.
Image From Shutterstock
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Telegram Might Postpone Issuing Its Gram Tokens till 2020

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Telegram Might Postpone Issuing Its Gram Tokens till 2020
According to the current reports, Telegram is seriously considering the temporary abandonment of its plans to issue Gram tokens due to problems with the SEC.
Telegram Might Postpone Issuing Its Gram Tokens till 2020

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Source: CoinSpeaker

Coinbase Plans Europe Expansion after Securing e-Money License in Ireland

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Coinbase Plans Europe Expansion after Securing e-Money License in Ireland
Getting of the Irish e-money license is a major milestone for the crypto trading platform Coinbase and its European expansion.
Coinbase Plans Europe Expansion after Securing e-Money License in Ireland

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Source: CoinSpeaker

TON vs SEC: What Is Telegram’s Next Move?

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TON vs SEC: What Is Telegram’s Next Move?
The SEC is looking to stop Telegram from issuing its GRAM tokens, for violating the Commission’s rules. Telegram is yet to make an official decision, however, how much of a play does the company have?
TON vs SEC: What Is Telegram’s Next Move?

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Breaking: SEC Orders to Halt Telegram’s $1.7 Billion Gram Token Sale

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Breaking: SEC Orders to Halt Telegram’s $1.7 Billion Gram Token Sale
Telegram faces a major roadblock in releasing its Gram tokens on the native TON network as the SEC slaps a restraining order on its token-sale calling its “unlawful”.
Breaking: SEC Orders to Halt Telegram’s $1.7 Billion Gram Token Sale

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Source: CoinSpeaker

CFTC Chairman Confirms That Just Like Bitcoin, Ethereum Is Also a Commodity

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CFTC Chairman Confirms That Just Like Bitcoin, Ethereum Is Also a Commodity
The CFTC chairman confirmed that Ethereum qualifies to be a commodity and all the forked assets like the Ethereum Classic shall be subjected to similar regulatory considerations.
CFTC Chairman Confirms That Just Like Bitcoin, Ethereum Is Also a Commodity

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Source: CoinSpeaker

Bitwise Set to File Another Application for Bitcoin ETF Following SEC Rejection

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Bitwise Set to File Another Application for Bitcoin ETF Following SEC Rejection
The United States Securities and Exchange Commission (SEC), has published an official document describing its ruling on the application for a Bitcoin exchange-traded fund (ETF), filed by Bitwise Asset Management and NYSE Arca.
Bitwise Set to File Another Application for Bitcoin ETF Following SEC Rejection

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Lawsuit Claims Bitfinex and Tether Manipulated the ‘Largest Bubble in Human History’

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Lawsuit Claims Bitfinex and Tether Manipulated the ‘Largest Bubble in Human History’
While the plaintiffs claim that it would be “premature” to calculate damage inflicted by Tether and Bitfinex, they have estimated that the defendant’s liability likely surpasses a whopping $1.4 trillion.
Lawsuit Claims Bitfinex and Tether Manipulated the ‘Largest Bubble in Human History’

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Source: CoinSpeaker

Coinbase CEO: US Should Reconsider Ridiculous Stance on Libra as Project Partners Jump Ship

Facebook’s ambitious crypto project Libra is running out of steam as it gets hounded by regulators and governments around the world. The social media giant was dealt another blow yesterday when major project partner PayPal announced that it was jumping ship, but the Coinbase boss thinks the US should reconsider its negative stance.
Rats Desert Sinking Crypto Ship
One of Calibra’s founding partners has become the first company to officially quit Facebook’s crypto project. The online payments giant announced yesterday that it would ‘forgo further participation’ in the Libra Association, the 28 member consortium that will control the digital currency.
Facebook sought to form the conglomerate to diffuse accusations that it would grow too powerful if it alone controlled the Libra currency. Following weeks of regulatory pressure, consortium members have been reluctant to further endorse the project according to reports.
PayPal’s departure could be the catalyst for others to follow leaving Zuckerberg to bail out the flailing digital ship on his own. The move is particularly painful due to the ties between the two companies. Libra head David Marcus once managed PayPal so the sting will be harsher. A company spokesperson said;
“PayPal has made the decision to forgo further participation in the Libra Association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratise access to financial services for underserved populations,”
Libra is facing protest from Europe as well as the US. As reported by NewsBTC, EU based NGOs have launched a petition against the project over fears of the rising dominance of US tech giants.
Coinbase Boss: Time For The US to Reverse Stance
Coinbase CEO, Brian Armstrong, is of the opinion that the US needs to reverse its harsh stance on crypto to avoid being left behind. He specifically made reference to China’s plans to launch a crypto yuan and said that Libra was just one of many digital currencies.
“Now that China is looking into creating a stablecoin, I wonder if the U.S. will reconsider it’s ridiculous response to Libra.”

Now that China is looking into creating a stablecoin, I wonder if the U.S. will reconsider it's ridiculous response to Libra.
There are many cryptocurrencies, and Libra is just one of them. But the way the U.S. government reacted it's like they almost want to be left behind.
— Brian Armstrong (@brian_armstrong) October 4, 2019

The reaction from US regulators may have been justified when Facebook is concerned, but it appears to have the same abhorrence for any digital asset that is not owned by the central bank.
Armstrong is afraid that the government is prohibiting innovation and putting its own interests first.
“Innovation often looks counter-intuitive and disruptive. Government is prone to being co-opted by special interests/incumbents that will play on fears and try to block innovation here.”
China meanwhile is doing both, fostering the innovation and putting its own interests first by issuing a central bank controlled cryptocurrency.
Facebook only has its own interests (profits) in mind, as does PayPal, so both of those should be heavily regulated. However, the US could prevent itself falling into the digital dark ages by becoming more open to the crypto industry in general.
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U.S. Congressmen Want the Federal Reserve to Consider a Digital Dollar

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U.S. Congressmen Want the Federal Reserve to Consider a Digital Dollar
Two U.S. Congressmen have written to the Federal Reserve, on the possibility of tokenizing the dollar. The Congressmen believe that such a move is inevitable.
U.S. Congressmen Want the Federal Reserve to Consider a Digital Dollar

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Source: CoinSpeaker

Visa, Mastercard and Other Major Libra Backers Want to Pull Out from the Deal

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Visa, Mastercard and Other Major Libra Backers Want to Pull Out from the Deal
Facebook’s Libra is facing many regulatory challenges that have made institutional backers like MasterCard, Stripe, PayPal, and Visa lead several other potential partners in casting their doubts about the project.
Visa, Mastercard and Other Major Libra Backers Want to Pull Out from the Deal

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Source: CoinSpeaker

Facebook Hints at Suing the U.S. Government in Zuckerberg Audio Leak

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Facebook Hints at Suing the U.S. Government in Zuckerberg Audio Leak
Mark Zuckerberg said that if the Democratic Presidential candidate Elizabeth Warren was to come to power, and pursue her agenda of breaking the Big Tech companies, Facebook won’t step back from fighting the U.S. government in the court.
Facebook Hints at Suing the U.S. Government in Zuckerberg Audio Leak

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Kik Founder Vows to Fight On Despite Obstacles Presented by the U.S. SEC

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Kik Founder Vows to Fight On Despite Obstacles Presented by the U.S. SEC
CEO of the once-popular messaging app Kik has indicated that the firm will go to trial against the United States Securities and Exchange Commission of classification of their Cryptocurrency token Kin as a security.
Kik Founder Vows to Fight On Despite Obstacles Presented by the U.S. SEC

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Source: CoinSpeaker