Tuesday, March 12, 2019

Custody battle

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March 12, 2019

CRYPTO CUSTODY: New York Investment firm Shuttle Holdings will soon launch the beta version of a custody solution for digital assets built on IBM’s private cloud and encryption technologies. Brad Chun, Shuttle’s chief investment officer, told CoinDesk that the company won’t be storing cryptocurrencies itself, but rather, provide other firms with the tools they need to self-custody digital assets. Full Story

ETH RELIEF? Jay Clayton, chairman of the U.S. Securities and Exchange Commission (SEC), has seconded a colleague's analysis that suggested the world's second-largest cryptocurrency does not qualify as a security. Last year, SEC Director of Corporation Finance William Hinman said that ethereum did not exhibit the properties of a security in its current state. After a request for clarification on the issue, Clayton responded, saying: "I agree with Director Hinman's explanation of how a digital asset transaction may no longer represent an investment contract if, for example, purchasers would no longer reasonably expect a person or group to carry out the essential managerial or entrepreneurial efforts." Full Story

ROAD TRIP: The U.S. SEC is going on tour in hopes of meeting with crypto entrepreneurs who otherwise might not engage with the regulator. FinHub, the SEC's branch dedicated to interacting with tech startups, said it would be visiting major U.S. cities from March 26, allowing individuals or teams to set up face-to-face meetings with agency staffers to ask questions or provide feedback about issuing tokens or other issues under the regulator's purview. Full story

ADOPTION DRIVERS: The EU Blockchain Observatory and Forum believes the “first wave” of blockchain adoption will be spearheaded by permissioned platforms targeting specific use cases, according to a new report. The organization argues that focusing on specific use cases offers users more flexibility than do public blockchains, particularly if these networks remain interoperable. Full Story

BIG PLANS: The real estate firm in charge of the world’s tallest building, Dubai’s Burj Khalifa, wants to develop its own crypto token. Emaar Group said it plans to develop its “Emaar community token” by the end of 2019, with the ultimate goal of launching an initial coin offering (ICO). The firm will partner with Lykke AG, a Switzerland-based crypto startup, to build the ethereum-based token for use in a referral and loyalty system. Full story

BULL CROSS: Bitcoin's 50-day moving average (MA) is about to cross the 100-day MA for the first time since August 2018. The long-term crossover is the latest to join the list of technical indicators, such as the MACD and money flow index, calling a bullish reversal. BTC, therefore, could rise toward the bearish lower high of $4,236 in the near future. Full Story

BEST OF THE BEST

FORTUNE: Stablecoin issuer Paxos plans to introduce a token backed by gold and stocks later this year, Fortune writes. The New York-based firm’s CEO, Chad Cascarilla, told the news source that Paxos aims to take “any type of asset and put it into a blockchain” to speed up transactions and lower fees. The firm has already trialed tokenizing equities and bonds.“We’re getting pretty close, and I think we’ll see it in 2019,” Cascarilla said.

THE REST

COMPUTERWORLD:
 Delaware is planning to trial a blockchain-based business filing system that uses smart contracts to automatically track stocks and collateral assets in real time, according to Computerworld. If the proof-of-concept proves successful, the system would provide companies with more accurate and up-to-date records and potentially boost business transactions and regulatory compliance.

FORBES: Sweden is currently suffering an Instagram scam that offers purchases of luxury branded items from firms such as Gucci and Apple, and then asks the victim to exchange fiat to cryptocurrency for payment. After the trade is made, the bad actor disappears with the funds and the goods never arrive, according to a Forbes piece. Despite cases being reported to the local police, the scam, which targets young people around 25 years of age, is still persisting.

WHO WON #CRYPTOTWITTER

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