The reserves that back USDC include US dollars in cash, certificates of deposit, corporate bonds, and securities. The report indicates audited funds of around USD 22,200, less than the amount of USDC in circulation.

As in the case of Tether (USDT) in the past, the US dollar also does not fully back stablecoin USD Coin (USDC). That information appears in the most recent reserve report from Circle, the company the currency. They released it after an audit by a tax firm outside the company.

Tax advisory firm Grant Horton breaks down in the report the reserves that back USDC. They note that there are only about 61% of dollars in cash or equivalents between them. The remainder includes certificates of deposit, securities, debt obligations of companies and financial institutions, and bonds of companies and government agencies.

While US dollars deposited in banks do not fully support USDC, reserves do not fully cover the coins in circulation. The information that the tax firm audited indicates a total fund of around USD 22.2 billion. However, nearly 28 billion USDC is currently circulating.

While the reserve report relates to July, the supply of the stablecoin has increased since then. However, the reserves and the existing USDC on those dates also do not match.

Messari data show that there were already more than 25 billion USDC circulating in July. That is roughly USD 3 billion more than what Circle’s reserves back.

As with USDC, there has been criticism about the Tether Limited (USDT) stablecoin for the way they treat their reserves.

A few days ago, a breakdown of the reserves backing USDT revealed that almost half of them are in commercial paper and certificates of deposit.

Additionally, the auditors noted that Circle owns USD 6.28 billion in cash and bank deposits, representing 10% of the reserves. They also revealed that it has USD 1 billion in reverse repurchase notes, equivalent to 1.6% of the funds. Likewise, they said that USD 15.28 billion in US Treasury bills correspond to 24.3% of their reserves.

USDC and USDT Are Not Stablecoins, According to Paxos

Paxos, a rival to both USDC and USDT, referred to the reserves of those stablecoins in July. The company behind the stablecoin of the same name considers that neither of them is an actual stablecoin.

The Paxos coin issuing company said that stablecoins are not what they claim to be. They stated that those currencies do not accurately reflect the price of the US dollar.

The Chief Compliance Officer of the company Dan Burstein argued that no financial regulator comprehensively monitors USDC and Tether reserves.

Although Paxos has appreciated, the Circle and Tether Limited currencies dominate the market for stablecoins based on the US dollar. USDT has become the reference standard for trading cryptocurrencies for US dollars on exchanges.

According to CoinGecko, there are more than 50 types of stablecoins, having Tether at the top with a 57.7% dominance. It precedes USDC (23.6%), Binance USD (9.8%), DAI (4.7%), TerraUSD (1.7%), TrueUSD (1.4%), and Paxos Standard (0.8%).

By Willmen Blanco

Fernández highlighted that crypto assets could be an excellent solution to combat inflation. However, he admitted that he does not understand how they work and perceives some risks in the system.

The president of Argentina, Alberto Fernández, recently said that the discussion about cryptocurrencies is global and that they are a care matter. However, he did not rule out that it could be a positive development that sets the country on a good path.

The Argentine president admitted that he is unaware of the operation of crypto assets and referred to the insecurity that he believes they entail. However, he also stressed that they allow fighting inflation, an economic evil that has affected the South American nation for decades.

He stated that the discussion about the functioning of cryptocurrencies is not an Argentine debate but a global one. He believes that it is a care matter as he does not exactly understand how that fortune materializes.

In this sense, the Argentine president said that many people in the world share his ignorance. He argued that that situation has not allowed the project or system to finish expanding.

An Option to Take Advantage of Cryptocurrencies

However, Fernández left the door open to take advantage of the economic benefits of cryptocurrencies. In his opinion, they contribute to nullifying the inflationary effect while remaining somewhat like hard currency.

Regarding the insecurity he perceives in the cryptocurrency world, Fernández said it is due to confirmed embezzlements and scams. For that reason, he argued that it is necessary to address that issue with care. Besides, he said he prefers not to delve too deeply to avoid mixing the economic with the technological and the transparent with the opaque.

The official thinks this is an issue to consider, as there are things that no one believed in and are now a reality. For that reason, he recommends not to refuse cryptocurrencies as they can be a good path.

Fernández had already granted those close to him, permission to debate laws that regulate cryptocurrencies in Argentina. The national deputy José Luis Ramón introduced a bill for the collection of salaries in cryptocurrencies. Additionally, he stated that the president gave him the go-ahead to deal with it in Congress.

Fernández Discusses Technology, Information and the State

In addition to cryptocurrencies, Fernández discussed technology as a tool for the State to know more about the population. He expressed that he believes that everything related to banking and the State knowing more is right. He said the issue was not about information but how to use it and put society on the system or online.

The Argentine president added that technology should help everyone know about each other. That would allow the State to know what bad things happen to citizens or whether they did not comply with their obligations.

Although the president of Argentina agrees with cryptocurrencies, he fears that there may be security problems. However, he believes that more knowledge about these assets can help the citizens of his country use them properly.

By Alexander Salazar

The company will split the payment between two government agencies: the CFTC and FinCEN. BitMEX received accusations for offering leveraged and unlicensed products in the United States of America.

A US court decided that the platform for the exchange of derivatives of bitcoin (BTC) and cryptocurrencies, BitMEX, will have to complete the payment of a fine that costs at least 100 million dollars.

The Court for the Southern District of New York issued multiple charges against the exchange, including conducting illegal, unlicensed operations and failing to establish “Know Your Customer” (KYC) and anti-money laundering (AML) protocols.

The money would be split between two government agencies following the case: the Commodity Futures Trading Commission (CFTC) and the Financial Crime Control Network (FinCEN). The latter explained that BitMEX did not report some dark activities. There are also some operations on the darknet for more than 200 million dollars.

With the court’s decision and the payment of the funds, BitMEX can close the legal case as a company. The agreement does not include the co-founders and former directors that also took part in the case. Arthur Hayes, Benjamin Delo, and Samuel Reed will remain being investigated and could get back to prison. All three have pleaded not guilty.

BitMEX got banned from sealing businesses in the United States of America or offering services to American citizens as it does not have the corresponding permits. According to the CFTC, the bitcoin derivatives platform illegally brought leveraged trading between November 2014 and October last year. The case received media coverage in October of the previous year due to the accusation.

BitMEX Set Up Some Changes in its Business with Bitcoin

After its CEO Arthur Hayes parted ways with the company, BitMEX began to apply measures to comply with international regulators. Some changes in their work with bitcoin include KYC protocols, user verification, hiring of personnel to ensure compliance with the rules, and new services to operators.

BitMEX stated that they take their responsibilities very seriously and will continue to actively contribute with regulators worldwide to make sure that they play a positive role in the future of this extraordinary asset class.

Hayes, the current CEO of BitMEX, turned himself into the authorities in April of this year. However, the executive got out on bail after paying $ 10 million. If he found guilty, he and his two former colleagues could spend up to 5 years in prison.

Hayes, along with other executives responsible for the exchange faced charges for disrupting the United States Bank Secrecy Law. According to the law, they did not apply the anti-money laundering procedures that companies need to keep operating within the North American jurisdiction.

Also, in March of this year, the other co-founder of BitMex, Ben Delo, surrendered to the North American authorities and received indictments in New York.

By: Jenson Nuñez