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Bitcoin is currently the undisputed king of the crypto, so much so that its price action can work as a sort of a benchmark for the entirety of CoinMarketCap’s listings. Whenever it goes up or down, altcoins normally follow, that’s hardly surprising by now. What is surprising, though, is that we are still calling it a currency, even though that’s clearly not what it is. Currency is, fundamentally, a medium of exchange, a store of value, and a unit of account. It could work in many ways, from a gold coin that is valuable on its own, which is the…
The Federal Reserve has an extraordinary responsibility to ensure a healthy economy and sound financial system for all Americans. Unfortunately, over the past year my faith in the Fed has been deeply shaken by its political approach to digital assets in my home state, Wyoming, greatly contributing to my concerns over President Biden’s nominees, Jay Powell and Lael Brainard. In 2019 Wyoming began integrating digital assets, including cryptocurrency, into the U.S. banking system. State legislators wrote bills addressing issues from asset custody to money laundering. As a part of this effort, they created a heavily regulated bank—the special purpose depository…
For several months, my stand on cryptocurrencies, assets and exchanges has been that a comprehensive regulatory framework be built around the Central Bank Digital Currency (CBDC). The government has been listening and accepting most of the suggestions. The challenge of framing regulations for an amorphous sector is that it will evolve and emerge in a new form. This means that some of the definitions have to be open-ended and progressive to incorporate future changes in technology or products, while keeping the interests of citizens, investors and even technological growth in mind. CRYPTO TOKENS VERSUS CRYPTOCURRENCY This difference is now being…
Venture capitalists have bet big on crypto start-ups in 2021, investing more than $27 billion globally as of late November, more than the previous 10 years combined, according to PitchBook. Many of the investments were made by the venture capital arms of crypto companies, businesses whose continued growth will depend on the ecosystem expanding. Coinbase Ventures, the investment arm of the Coinbase cryptocurrency exchange, is backing companies building infrastructure such as Solana, a blockchain network; businesses offering crypto financial services, like BlockFi, and decentralized finance projects, known as DeFi projects, in which automated transactions are handled by code; and entities working on…
Demand for digital assets is set to grow as online virtual worlds become more popular but investors face some short-term risks, Animoca Brands’ chairman and co-founder Yat Siu said in a Reuters panel on Wednesday. In blockchain-based virtual world environments, users can buy virtual land and other digital assets such as clothing for avatars in the form of a crypto asset called a non-fungible token (NFT). NFTs have exploded in popularity in 2021, with crypto enthusiasts speculating on rapidly rising prices. Last week an NFT representing a plot of land in a virtual world sold for $2.4 million. Asked whether…
Cryptocurrency company CoinShares International has agreed to buy French fintech Napoleon Crypto SAS for around 13.9 million euros ($15.8 million), as the booming cryptocurrency sector continues to attract investors’ money. CoinShares said on Wednesday that its takeover of Napoleon Crypto SAS formed part of its strategy of expanding its technology and platforms. “As we continue to grow, it is increasingly important for us to keep developing our ability to distribute our research, expertise, and products directly to our clients via the most appropriate channel,” said CoinShares CEO Jean-Marie Mognetti. -Read original story on Reuters
Online trading platform IG Group (IGG.L) said on Wednesday it was planning to sell its short-term options trading platform NADEX and crypto stock exchange Small Exchange for $216 million to Crypto.com’s Forix Dax Markets. The sale of its North American Derivatives Exchange Inc (NADEX) and Small Exchange, in which the group owns a nearly 39% stake, will not impact its annual profit, the company said.
After years spent trying to “bridge generations” by guiding brands and investors to better understand Gen Z, Islands CEO Tiffany Zhong is now trying to do the same for different waves of the internet. “We’re building economic infrastructure for the community economy,” says Zhong, who just turned 25, says. One way to do that: bridge talent, this time, from Web2 internet companies (think the traditional giants like Facebook and Google) over to Web3’s crypto, NFT, and other creator-focused projects. “Our goal is to help get more people into Web3, because clearly it’s so nascent and early.” Zhong’s startup Islands officially…
Cryptocurrency tax compliance has historically been poor, but the government is trying to get better at collection. A controversial section of the Infrastructure Bill, signed into law by President Biden on November 15h, requires “brokers” such as cryptocurrency exchanges to issue Form 1099-Bs to customers for the 2023 tax year. Regulators believe that these 1099-Bs will improve third-party information reporting by exchanges, make it easier for taxpayers to file taxes and ultimately lead to improved compliance. Unfortunately, lawmakers have overlooked several intricacies unique to crypto in drafting this provision. Not considering these crypto-specific situations —Decentralized finance, Transfers & Self-custody —…
Recently, bitcoin suffered a sell-off, which resulted in the digital currency’s price declining more than 20% from the all-time high it set earlier this month. Following this drop, technology reporter Ryan Browne published a CNBC article stating that the cryptocurrency had entered a bear market. “Bear markets are typically defined by a decline of 20% or more from recent highs,” his article stated. Browne wasn’t alone, as Kate Rooney, another technology reporter at CNBC, declared the same day that bitcoin’s 20% drop from its all-time high had “officially” put the cryptocurrency in “bear market territory.” It would seem that these journalists were relying on…