Thursday, January 16, 2020

Giancarlo's gambit

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January 16, 2019

DIGITAL BUCKS: Former CFTC Chairman J Christopher Giancarlo, former LabCFTC Director Daniel Gorfine and investor Charles Giancarlo want to take the dollar digital – and they're not waiting for the Federal Reserve. The three are forming the Digital Dollar Foundation, working with Accenture to design and push for a potential U.S. central bank digital currency. Full story

CASH AND CRYPTO: The new owner of the Chrysler Building is selling a property worth $135 million to a blockchain real-estate company, taking a fifth of the purchase price in ethereum-based tokenized securities. New York-based RFR Holdings agreed to sell its majority stake in a commercial property in Zurich to BrickMark, a Swiss real estate agency. Full story

DIY INSURANCE: Gemini, the crypto exchange founded by Cameron and Tyler Winklevoss, has created its own $200 million insurance company to protect clients against the potential loss of coins from its offline vaults. Full story

PRIVATE PAYMENTS: The for-profit entity working on zcash has published a software kit that will help developers support shielded payments on Android and iOS mobile devices. The capability means addresses, transaction amounts and memos within transactions can be obfuscated. Full story

SALE OFF: Japan-based Liquid exchange has cancelled its sale of Telegram's not-yet-launched gram tokens as the SEC lawsuit holds up the launch of the TON network. Full story



HEADED TO DAVOS? CoinDesk is sending a team of journalists to scrutinize the global elite as it meets for the annual World Economic Forum. It will be Davos, but through a lens of crypto and blockchain. Our daily dispatches will tell you what sessions you should attend, what you missed yesterday (or last night) and prep you for what people are talking about on the Promenade today. The CoinDesk Confidential newsletter will run for five days only, so be sure to sign up now. Subscribe here

RALLY FATIGUE: Bitcoin’s bulls are showing signs of exhaustion, with prices dropping $240 from Wednesday’s two-month high around $8,900. A notable pullback could be seen if prices drop below $8,550, confirming a double top breakdown on the intraday charts. The short-term bullish case will continue if prices hold above a key support of $7,700. Full story

GOING ROGUE? In the latest episode of The Breakdown, Nathaniel Whittemore asks what effect rogue states have on crypto's narrative, as North Korea and Iran focus their attention on sanctions-busting digital assets. Listen in

WHO WON #CRYPTOTWITTER
 

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Crypto Wakes Up. Get Your Consensus Pass While Rates are Low!

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It's the start of a new year and it has been anything but quiet.

An otherwise stagnant crypto market has awoken, resulting in a price run from under $7,200 on New Year's Day to over $8,600, according to CoinDesk’s Bitcoin Price Index. With this excitement, now is the perfect time to start planning your trip to Consensus in New York, May 11-13, 2020.

Nowhere else can developers working on new and exciting digital currency innovation meet with professionals from the largest banks that have, historically, had a monopoly on finance. 

For businesses that want to understand where money is headed, Consensus has what you need. The ideas, the projects and the people in one venue all excited and curious about what's to come. Don’t miss that chance.

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2019 Fast Facts |  2019 Sessions | 2019 Speakers

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Binance to restrict Japanese transactions / Gemini Exchange's insurance company / Russia calls for a digital economy

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Market Watch: Following highs across the board earlier this week, the market has experienced a slight price correction. Bitcoin SV has replaced Bitcoin Cash in fourth place but is currently down over 11 percent in a 24-hour period.

  • Bitcoin: $8,754 (⬇️ 0.21%) // $159 billion market cap.
  • Ethereum: $163 (⬇️ 1.15%) // $17.9 billion market cap.
  • XRP: $0.228 (⬇️ 3.69%) // $9.9 billion market cap.
  • Bitcoin SV: $325 (⬇️ 11.37%) // $5.9 billion market cap.
  • Top 100 Winner: Augur: $15.96 (⬆️ 41.21%) // $175 million market cap.
  • Top 100 Loser: MaidSafeCoin: $0.077 (⬇️ 12.33%) // $34 million market cap.

Prices are as of 11:30 a.m. ET.

     

1. Binance is reportedly planning to restrict transactions to Japanese residents, according to an announcement on the platform. The post states that at present, there are no restrictions on trading, and all services are available; however, limitations are to be implemented gradually. Binance further noted that "as soon as the details of the transaction restrictions are determined, we will contact you shortly." It's not yet known why Binance has decided to take this step. Notably, though, the crypto exchange moved its operations to Malta in 2018 following a warning from Japanese regulators that it lacked a national exchange license. -BINANCE

     

2. The Gemini Exchange, founded by Cameron and Tyler Winklevoss, has launched an insurance company to insure Gemini Custody for up to $200 million. The insurance company is called Nakamoto, Ltd. Following the launch, Gemini's custodial clients will be able to buy more insurance from Nakamoto, Ltd., so that they can secure their assets. It also means that institutional clients can meet regulatory requirements. According to the head of risk at Gemini Yusuf Hussain, the move "is consistent with Gemini's approach of being a security-first, compliance-first, and regulatory friendly exchange and custodian." -COINTELEGRAPH

Gemini Exchange launches insurance company to secure $200 million
     
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3. Throwback Thursday: Coincheck Exchange Hack

Toward the end of January 2018, Tokyo-based crypto exchange Coincheck became the victim of hackers who managed to steal $532.6 million worth of NEM tokens. At the time of the attack, the coins were stored on a hot wallet, which was connected to the internet, therefore making it more vulnerable to hacking. This is compared to a cold wallet, which is stored offline.

Since April 2018, Japan's government recognized Bitcoin as a legal form of payment and required exchange operators to register with the financial regulator, the Financial Services Authority (FSA). Notably, when the hack took place, Coincheck wasn't registered with the FSA but was allowed to continue operating on a provisional basis while its application was being assessed.

Throwback Thursday: Coincheck Exchange Hack
     

4. Russia has been called on to develop its digital economy by the new Prime Minister (PM) of the Russian Federation. Mikhail Mishustin was approved as the new PM by the Russian parliament today and succeeded Dmitry Medvedev, an associate of Russian President Vladimir Putin. According to a domestic report, Mishustin noted that Russia should introduce modern information technologies, which also includes a national digital economy. In a roughly translated text, he said: "without a doubt, the state should be a digital platform that is created for [the] people." -RIA NOVOSTI

     
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5. Officials in Thailand are investigating an alleged cryptocurrency pyramid scheme that involved the loss of around $2.5 million. A human rights lawyer has taken the case to the country's Department of Special Investigation (DSI), which involves roughly twenty victims. According to a report, the alleged pyramid scheme, Khung Nong Cryptocurrency Trading, started operations in 2018, with promising returns that were as high as eight percent per week. -THE BANGKOK POST

     

6. The Liquid Exchange has announced that it canceled the sale of Telegram's Open Network's (TON) Gram token sale. All funds have been returned to Liquid users who took part. The exchange returned funds back to users because the TON network was not launched by Nov. 30, 2019. It had previously been anticipated that the network would launch by 31 October 2019, however, this didn't happen. The launch has been impeded, though, by an investigation by the U.S. Securities and Exchange Commission (SEC), which argues that it was an unregistered sale of securities. -LIQUID

     

7. South Korean crypto exchange Bithumb has filed a complaint with the National Tax Service (NTS) over a tax bill amounting to $69 million. According to the platform, the bill is "groundless," given the fact that cryptocurrency is not a legally recognized currency and lacks the authority to place a bill of any kind. The tax tribunal now has 90 days to decide whether to grant or dismiss the exchange's motion. -THE KOREA TIMES

     

8. Blockchain company Bitfury is partnering up with the United Nations Development Programme (UNDP) on a project designed to reduce its carbon footprint in Kazakhstan. The project intends to help the country reduce its greenhouse gas emissions by 15 percent to meet the 2016 Paris Agreement. In order to reduce Bitfury's carbon emissions, the company will create 20 hectares of forestland to begin with. -THE ASTANA TIMES

     

9. New research shows that the use of the blockchain in the United Arab Emirates (UAE) can save the country over $3 billion. In a whitepaper, titled "Inclusive Deployment of Blockchain: Case Studies and Learning from the United Arab Emirates," researchers found that 80 percent of the more than 100 organizations from government and non-governmental entities highlighted application blockchain solutions as the most important factor early on. -EMIRATES NEWS AGENCY

     

10. The United Nations has warned people to stay away from a crypto conference in North Korea next month, stating that it will likely constitute a sanctions violation. This comes as a confidential report is expected to be submitted to the UN Security Council later this month. The news also comes after independent UN experts informed the council that North Korea made around $2 billion from cyberattacks that stole from banks and crypto exchanges. -REUTERS

     

This newsletter was written and curated by Rebecca Campbell. She has been writing and reporting on various industries for the past 10 years, more specifically tech in the last three. Connect with her on Twitter.

Edited by Sheena Vasani, staff writer at Inside.

     
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