Concepción and other members of Trust Investing had also found their liberty in early September.

The legal authorities released the Director in Cuba of the fund manager with bitcoin (BTC) and cryptocurrencies Trust Investing, Ruslan Concepción. This event took effect four months after being arrested for alleged illicit economic activity.

Apart from Concepción, other company members also got released in the Caribbean country, as shown in a video broadcast on the Trust Investing International YouTube channel earlier this month. Various proofs of this situation, published through the social network Facebook, support the information.

Local media indicated that despite having been detained since the end of last April, Concepción did not receive any prosecution for the accusation of leading illegal economic activities.

 Its release runs in parallel with the recent legalization of BTC for payments on the island, a measure revealed in the Official Gazette at the end of August. This legalization came into force this past September 15.

Likewise, it is unknown what happened to the properties and money that Concepción would have obtained illegally. Some suggest that it is the funds of investors from the Trust Investing platform, referred to as a Ponzi scheme worldwide.

The company describes itself as an Estonian-based digital currency manager present in at least 50 countries or more. According to its website, Trust Investing has a team in charge of checking up the cryptocurrency market that works in line with experienced operators in the financial market.

This platform is well-known in Spanish-speaking countries such as Mexico, Spain, or Panama. It has suffered rejection by research firms because they consider it a fraudulent pyramid scheme.

Tulip Research said in this regard that Trust Investing functions like a Ponzi scheme. It does not have veridic products and pays its investors with their incoming money. It means that without new clients, there is no new money.

On the other hand, a statement appeared in Spain and Panama. This statement openly explains that this company does not receive the support of the authorities to bring any investments in those countries.

Ruslan, from Cuba to Russia

Last April, Ruslan Concepción was arrested while trying to abandon Cuba and take Russia as a destination. And this fact did not go unseen by Trust Investing investors, who described it as an attempt to abandon the country with their funds.

Through social networks, clients of the platform who want to get their funds restored have demonstrated disgust and concern against Concepción after his release. According to the Cuban media outlet called Periódico Cubano, Concepción is a scammer and has been threatened by users in various Facebook groups such as CriptoCuba.

Another user said he had pending withdrawals from the platform since May of this year and expressed that traveling to Las Tunas (the Cuban town where Concepción resides) is easy travel. Later, the local newspaper assured that the statement completely disappeared from the internet.

Although Concepción is the leader behind the company on the island, there are defenders of Trust Investing who had made clear that he is just another investor.

By: Jenson Nuñez

Chinese real estate company Evergrande must meet an accumulated debt of more than USD 300,000 million. The market capitalization of cryptocurrencies in general recently fell from USD 2 trillion.

The overall market capitalization of cryptocurrencies recently dropped to USD 1.87 trillion, reflecting an 11% drop in 24 hours. The total value of that fall was USD 255 billion, which coincided with that of the rest of the markets. That event may have been due to the crisis at Evergrande, one of China’s largest real estate companies.

The total market value dropped below USD 2 trillion for the first time since August 19^th. The price of Bitcoin fell from USD 47,224 to a low of USD 42,728, a 9.52% drop in 24 hours.

Bitcoin is trading at around USD 43,688 after experiencing a small rally. The market capitalization of the pioneering cryptocurrency fell from USD 897 billion to USD 821 billion, an 8.47% fall in 24 hours.

A Debt that Exceeds USD 300 Billion Precipitates the Crisis

Evergrande might not be able to meet million-dollar interest payments on a debt that exceeds USD 300 billion. The real estate sector in China and other Asian countries could collapse due to fear of that firm’s bankruptcy.

The Hang Seng stock index fell by 7% after the company’s share price fell by 10% in the Hong Kong markets. That drop, the biggest since 2016, extended to European and North American markets and even cryptocurrencies.

The local newspaper El País of Beijing reported that markets fear that the Chinese government will not intervene. Evergrande’s liquidity problems could cause a wave of bankruptcies that would affect the financial sector that made loans to them. That real estate company’s debt equates to 2% of China’s Gross Domestic Product (GDP) and the entire South African economy.

The Dow Jones Industrial Average recently closed 164 points down, or 1.8%, while the S&P 500 Index lost 2.2%, and the NASDAQ went down by 2.1%. According to data from Barrons, that has been the hugest drop for those last two indexes since May as the Dow Jones faces its most dramatic pullback since July.

Banks of China Already Knew of the Nearness of the Evergrande Crisis

An analysis that Reuters published recently indicated the possibility of a global economic crisis if Evergrande defaulted. China’s most important banks already knew that Evergrande could not meet payment commitments that were due soon.

Several people proposed using Bitcoin as a store of value to protect themselves against the possibility of such a scenario. However, the first cryptocurrency on the market could not decouple from the stock markets, falling alongside them. The so-called Black Thursday of 2020, the health crisis due to the COVID-19 pandemic, unleashed something similar.

The pioneering cryptocurrency has proved to be an excellent store of value in cases like that of Evergrande. Big renowned companies like MicroStrategy and Tesla have large amounts of Bitcoin in their treasuries. Several analysts have referred to Satoshi Nakamoto’s creation as digital gold better than the precious metal itself.

By Alexander Salazar

On April 30^th, the Central Bank of Turkey banned the trading of Bitcoin and cryptocurrencies. The financial institution has advanced in the development of its digital currency, completing the concept stage.

The president of Turkey, Recep Tayyip Erdogan, recently told several students that his government was in a war against Bitcoin. He made that claim when asked whether the Central Bank of Turkey would review its stance on the cryptocurrency.

On April 30^th, that financial institution banned using Bitcoin and other cryptocurrencies as a means of payment. That prohibition prevents the direct or indirect use of crypto assets in providing payment services and issuing electronic money.

Erdogan stressed that they would not lift the ban or prevent the proliferation of BTC use among the Turkish population. Many citizens see the pioneering cryptocurrency as a store of value as the lira, the legal tender in that nation, is depreciating.

Due to that prohibition, the Turks can only trade crypto assets clandestinely. Many people are aware of the strength of Bitcoin against gold as a store-of-value asset. For that reason, they take their risks to invest in the cryptocurrency despite the limitations in their country.

The Turkish Government Does Want the Lira but Not Bitcoin

Besides banning the use of Bitcoin, the Central Bank of Turkey has expressed interest in launching a digital currency. Information agency Bloomberg reported that the institution had raised that idea in 2019 and has already completed the concept stage.

They would go from there to a testing stage, in which several technology companies such as Aselsan and Havelsan would participate. In addition, the Center for Science and Technology of the Eurasian country will engage in developing that project.

A Turkish CBDC Would Not Allow Anonymous Transactions

Bitcoin and other decentralized cryptocurrencies are different from central bank digital currencies regarding privacy and anonymity. The latter is like an enormous database with which a state entity controls the transactions that people conduct.

The Bahamas, which already has its digital sand dollar, is the most advanced country regarding this type of currency. However, the best-known CBDC is China’s digital yuan, which is in the late stages of its testing phase. The Chinese state cryptocurrency could be fully operational during the Beijing Winter Olympics in February 2022.

Financial privacy and anonymity in transactions may not be possible with the digital currency of the Central Bank of Turkey. It could follow in the footsteps of other CBDCs, for which the government would have access to the history of each citizen’s operations.

Chinese officials say that the purpose of that is to help people get their money back and protect their safety in the event of fraud. Like China and many other governments worldwide, Turkey only views cryptocurrencies as a factor in illicit activities like money laundering and terrorism financing. For that reason, they work to create regulations to control or prohibit their use by citizens.

By Alexander Salazar

A report indicates a steep accumulation slope of the Bitcoin supply in the hands of long-term holders. There is growing interest from institutional investors in the pioneering cryptocurrency.

In the last week, the price of BTC fell to the level of the previous week, when it dropped by 16%. However, the strong correction that started on September 7^th did not prevent the BTC inventories on exchanges from declining.

On September 13^th, there was an outflow of USD 1.2 billion worth of Bitcoin from exchanges, despite the downward trend. A report from Glassnode highlighted the steep growth slope of the Bitcoin supply in the hands of long-term holders (LTH).

The price has recovered from USD 43,118 to USD 47,323, by about 9.75%, this week.

The MicroStrategy Company Maintains a Bitcoin Accumulation Policy

In August 2020, MicroStrategy made its first purchase of Bitcoin to include it in its treasury, which they continue to do. The recent acquisition of 5,050 BTC led it to hold 114,042 BTC, with a paid total of USD 3.16 billion.

The company paid an average price of USD 27,713, an appreciation of that investment by 74%.

The Institutional Investment in Bitcoin Exceeds USD 70,000 Million

MicroStrategy leads publicly traded companies holding around 221,413 BTC, 1.2% of the supply. Private companies that have disclosed their investment in Bitcoin comprise 0.92% of the stock, holding 174,068 BTC.

Bitcoin ETFs and Bitcoin funds like Grayscale constitute the majority sector in cryptocurrency investment, with 4.34% of the supply. A graph by Willy Woo, updated with the latest CryptoStrategy purchase, shows an overview of institutional investment.

Figures from bitcointreasuries.org reveal that institutional investment in Bitcoin is more than USD 70 billion. The total of BTC held in the different investment patterns is 1,481,905 BTC.

Analysis of the Featured Chart of the Week

Many analysts agree on the shock of the BTC supply due to the increasing accumulation by holders who tend to sell little. A higher flow of BTC to long-term holders reduces the availability in the market to meet demand. A graph from Glassnode indicates the evolution of the supply shock alongside the price of BTC.

The upward momentum zones correspond to fluctuations in the price of Bitcoin derivatives favorable to the rise in the spot price. There is currently a noticeable increase in the supply shock, for which the bullish momentum could continue in October.

Bitcoin ETFs Are Still Awaiting the SEC’s Approval

Bitcoin ETFs and similar funds represent the dominant sector in institutional investment in Bitcoin. The approval of those exchange-traded funds following the price of Bitcoin has occurred in Canada before the United States.

The US Securities and Exchange Commission (SEC) postponed the decision to approve a Bitcoin ETF requested by the investment firm VanEck. That regulatory agency accepted the legally established 30-day period and will decide to approve or reject it on November 14^th.

On September 14^th, the president of the SEC, Gary Gensler, appeared before the US Senate Committee on Banking, Housing and Urban Affairs. She noted that Bitcoin and other cryptocurrency exchanges trade securities, so they must register with that commission.

By Alexander Salazar

According to the FSC, platforms that do not comply with the procedures by the established date will have to face the partial and definitive cessation of their operations in South Korea. The measure also reaches international exchanges that work within the country.

The Financial Services Commission (FSC) of South Korea gave an ultimatum to the exchanges that work in the Asian nation.

The financial Services Commission highlighted that these exchanges would have until September 24 to make the corresponding registration and comply with current legal frameworks, so they would not have to stop their operations and face the consequences.

The FSC mentioned the subject in a recently published statement.  It invited the more than 60 exchanges that operate within the country to adopt the regulatory measures established by the body.

To sustain their operations, these companies must register with the Financial Intelligence Unit before September 24, bring the required collections, and partner with local banks to open the respective bank accounts to acquire user funds.

In this sense, the FSC was quite clear; since it indicated that exchanges that do not intend to adhere to the regulations must close their services once the period established to comply with said measures has ended.

Therefore, he invited these companies to notify their clients no later than this September 17, since they could face the suspension of their commercial services:

The FSC clarified that if some or all services get closed, they must notify clients about the estimated closing date and procedures to withdraw their funds at least one week before the closure takes effect.

Reactions Among South Korean Exchanges

According to polls presented by local media, not all exchanges working in South Korea agree with the measures that the FSC has been highlighting.

Out of an estimated total of 66 exchange services, around 40 are doing the proper procedures to comply with the current regulations. There are only 28 exchanges that satisfactorily meet the requirements to guarantee the safety of users.

Among the duly registered exchanges, Upbit, Bithumb, Coinone, and Korbit stand out, the four platforms that bring together more than 90% of the commercial volume handled in the country.

However, the possibility of many commercial platforms deciding not to adjust to the measure could also impact the local market.

A report released by a local media studied losses for investors of more than USD 2,600 million. The report also studies the exit from the circulation of some 42 digital currencies that work through exchanges with small volumes of operations.

In this regard, the professor and director of the Cryptocurrency Research Center for the University of Korea, Kim Hyoung-Joong, clarified that 90% of operations in the country move with cryptocurrencies other than Bitcoin, so there could be struggles for investors who cannot freely trade with their altcoins.

The regulations that the FSC intends to implement are in two blocks. On the one hand, there are those exchanges that can operate the crypto/crypto exchange, and on the other, those that are allowed to buy/sell cryptocurrencies with fiat money.

By: Jenson Nuñez