Russian bank Gazprombank will start operations with a select group of clients who already have funds in BTC. The entity must comply with anti-money laundering (AML) and know-your-customer (KYC) measures to operate in the territory.

Gazprombank, which is Russia’s third-largest bank by net assets, will launch its own institutional-level cryptocurrency custody and trading service in Switzerland. The bank’s subsidiary, Gazprombank Switzerland, which received approval from the country’s financial authority, will be in charge of coordinating the initiative.

The Russian bank issued an official statement in which it highlighted that its new product has received approval from the Swiss Financial Market Supervisory Authority (FINMA). In that text, they said that this new service will be aimed mainly at institutional and corporate customers. The bank, which manages USD 2 billion in Switzerland, plans to enter the Bitcoin trading and custody market. Besides, they seek to increase the supply of other cryptocurrencies later on.

Initially, the company will operate with a limited group of customers who already own funds in BTC. Likewise, the service will comply with all the anti-money laundering (AML) and know-your-customer (KYC) regulations that FINMA requires for its proper operation. The authorities also require the bank to have a good security infrastructure to safeguard the assets of its users.

Gazprombank CEO Roman Abdulin made comments along those lines. He said that they expect “digital assets to become increasingly important in the global economy,” particularly for their current and potential customers. The bank has been working on the development of this service since 2018. At that time, they announced that they would conduct the first tests on transactions with cryptocurrencies.

It is important to note that the Russian government has a closed and uncompromising stance on the cryptocurrency market. However, the business group behind Gazprombank has been very interested in participating in that market. For example, energy giant Gazprom, the parent company that represents this bank, has also ventured into the development of a blockchain network for use in the supply of gas.

Russia’s private sector is much more open to new financial technologies than national authorities. However, the restrictions on the cryptocurrency industry that exist in the country are very strict. For that reason, some large companies are betting on Bitcoin outside its borders to take advantage of the opportunity that this market currently offers.

The growing interest in cryptocurrencies has led to the creation of institutions that focus on safeguarding and trading these types of assets. In recent days, financial group Avanti followed Kraken as the second cryptocurrency-focused company to receive a license in the United States. That title gives them the same authority as the country’s banks.

The largest bank in Singapore and Southeast Asia is also planning to launch a platform for trading Bitcoin and other cryptocurrencies. The name of this institution would be DBD Digital Exchange and it would allow the use of various fiat currencies, and cryptocurrencies. They recognize that these financial assets are ready to be the future of the digital economy of the future.

By Alexander Salazar

The Spanish bill will force to report the cryptocurrencies stored on exchanges outside the European country. There is an expectation that the Spanish Parliament will discuss and approve the bill.

Holders of Bitcoin and other cryptocurrencies would have to pay a minimum of around EUR 10,000 if they do not report their holdings abroad to the Spanish tax administration. This provision establishes the draft “Law on prevention and fight against tax fraud”, which the Government of Spain approved.

This future legislation will have some implications for the members of the cryptocurrency ecosystem in the Iberian country. Attorneys Javier Maestre and David Maeztu, jointly with tax economist José Antonio Bravo, clarify some ideas and share the document on Twitter. They do this while the bill is under discussion in Parliament.

Javier Maestre talks about the requirements that those who own cryptocurrencies outside of Spain must meet. He particularly mentions the sanctions on individuals who do not report their holdings in Bitcoin.

The document does not make clear the difference between “data” or “data set”, nor does it explain how they will help to establish the amount of the fines. However, the measure will force those who store their money outside Spain to declare their holdings to the tax administration.

In this sense, the bill proposes that individuals must “report virtual currencies located abroad of which they are the owner, or those of which they are the beneficiary or authorized entity.”

People “will only have to say whether they have cryptocurrencies abroad,” says Maestre. Technology law expert David Maeztu clarifies doubts about the term “located abroad” that appears in the document. In this regard, he explains that these are the cryptocurrencies that they have on exchanges or service providers outside of Spain. However, he clarifies that “they should not declare those that are in cold wallets or similar storage systems.”

Those who safeguard their virtual assets in Spain, including cryptocurrency exchange and custody companies, must also “deliver information to the tax administration.” That will require exchanges to provide data on the balances of the holders that they serve.

Besides, they must provide information about any acquisition, transmission, exchange, transfer, collection, and payment with Bitcoin. This implies indicating the type and number of cryptocurrencies included in the transactions, the price and date of the operations, and the personal data of the operators (name, address, and tax identification number).

Companies that conduct initial coin offerings (ICOs) will also be among those who must comply with those measures. For this reason, projects aimed to launch tokens must report to the State the process of selling the new assets in exchange for other cryptocurrencies or fiat currencies.

The explanatory statement that appears in the bill indicates that the Spanish government seeks to reinforce tax control over “taxable events related to virtual currencies.” They have been considering that objective for two years when a bill on the tax statement of cryptocurrency operations received their approval.

José Antonio says that the government maintains the idea of forcing cryptocurrency exchanges and custodians to report the balances in each virtual currency. Likewise, they seek to identify both those who conduct the operations and those who acquire new cryptocurrencies.

However, the bill establishes that there would be a report if the movements exceeded EUR 3,000. The same would apply to the obligation to declare only if the balance in cryptocurrencies exceeded EUR 50,000.

By Alexander Salazar

The renowned self-help book author was previously invited to an Ethereum conference. This year, Chopra partnered with a blockchain project.

Bitcoin is increasingly attracting people’s attention. Various companies and personalities have expressed their interest in the 11-year-old cryptocurrency created this year. Deepak Chopra, the renowned author of best-selling books on healing and spirituality, recently said that he might consider buying Bitcoin.

The self-help writer has reportedly shown interest in the use of Bitcoin when people have asked him about it. On several occasions, Chopra has talked about the subject and even about the Ethereum community.

“I have not bought any Bitcoin until now, but I have been interested in cryptocurrencies and how to use it,” admitted the Indian doctor.

Two years ago, Deepak Chopra was already related to the world of cryptocurrencies. At the time, he attended a meeting to listen to experts on the Ethereum ecosystem. However, he could perceive some doubts withing the community. Even the founder of Ethereum, Vitalik Buterin, expressed his disagreement about it.

Chopra recently partnered with blockchain project Hedera Hashgraph. Along with them, he created a platform aimed at improving to improve the care for what he considers to be a mental health crisis. In particular, he seeks to combat the high suicide rates.

Even though Hedera has its cryptocurrency (HBAR), the writer has not bought it either. However, it does not mean that he would not eventually do it.

Personalities that Support Bitcoin

Many personalities have turned their attention to Bitcoin, but Chopra is just one of them. The most prominent is Robert Kiyosaki, author of the bestseller Rich Dad, Poor Dad. He thinks that Bitcoin does not just represent a store of value that everyone should turn to. He has also come to consider the imminent death of the US dollar, as well as the need to take refuge in Satoshi Nakamoto’s cryptocurrency.

Concerning music producer and American presidential candidate Kanye West, Bitcoin and its community of users are key to “the true liberation of humanity.”

In May of this year, the author of the Harry Potter saga, J.K. Rowling, showed interest in the operation of Bitcoin. However, she did it by way of derision. As a consequence, she received a wave of messages trying to explain it to her, which she was not able to control. She tried to settle the matter but was unsuccessful.

On October 29^th, 9 public figures appeared in a video congratulating Bitcoin for its anniversary. The white paper of the main cryptocurrency turned 12 years old two days later, on October 31^st.

The video is part of a campaign that the cybersecurity and blockchain firm Halborn launched. It includes movie stars such as David Hasselhoff, from the action drama TV series “Baywatch”, and Charlie Sheen, from the comedy TV series “Two and a Half Men”. Hasselhoff even jokes about being the real creator of Bitcoin, instead of Satoshi Nakamoto.

By Alexander Salazar

The financial group plans to launch a stablecoin, which it will call Avit. Among its plans, the bank wants to open business accounts from 2021.

Financial group Avanti follows Kraken as the second cryptocurrency-focused company to obtain an official banking license to operate in the United States. With the title it received, the firm acquires the same authority that the country’s banks have. That allows it to offer regulated traditional financial services, including the custody of Bitcoin and other digital assets.

The Wyoming State Banking Board unanimously approved the banking charter that allows it to operate as a special purpose depository institution (SPDI), according to a statement of the company.

With the license that the regulator granted them, Avanti received the go-ahead for the company’s business plan. This includes services such as custody of digital assets and API-based online banking. However, Avanti focuses on issuing its Avit token, which consists of a US dollar-pegged stablecoin. This asset would run on Bitcoin’s Liquid sidechain and also on Ethereum.

This financial group will offer the cryptocurrency storage service as a qualified custodian under the Investment Advisory Law. This makes it a full reserve bank, which means that all customer funds will be under the control of the company.

Bitcoin-Friendly Banks Is a Trend on the Move

Avanti is the second SPDI bank to have received approval from the United States. In September, cryptocurrency exchange Kraken also obtained a license from the government. However, both still have to go through a series of formalities before they can offer their services.

On her Twitter account, Caitlin Long, Founder, and CEO of Avanti said that she hopes to open the doors at the beginning of 2021. The company still needs to work with the banking department of Wyoming to obtain the certificate that allows them to operate.

The former head of Morgan Stanley said that “Kraken definitely caught people’s attention. However, now that there is a second approved bank, it is no longer a unique situation. This means that there is a trend in motion”.

“A long history of support for Bitcoin and cryptocurrencies in general by the state of Wyoming was key for us to meet our expectations,” said Long. She adds that this is the only state in the country whose banking regulations on digital assets are mature enough. This makes it possible to guarantee the operations of a banking platform that offers custody services without risk.

In August, Avanti said that its Avit token will be aimed at institutional traders and corporate treasurers. They promise that it will not suffer the late settlement and chargeback problems of traditional payment systems.

The growing interest in Bitcoin and cryptocurrencies in general has become more evident worldwide. The creation and approval of startups such as Kraken and Avanti, which focus on the exchange of crypto assets, is just one example. This allows users to have more options to conduct their transactions.

By Alexander Salazar

MicroStrategy made USD 103.6 million in the last 2 months thanks to Bitcoin. For its business activities in the last 3 years, it earned USD 78 million.

The company specializing in business intelligence MicroStrategy made higher profits in the last two months with Bitcoin (BTC) than in the last three years with its products and services.

MicroStrategy has accumulated 38,250 BTC, which it bought at an average price of USD 11,111.11. Its average purchase value was almost USD 424.9 million. At the time of writing this article, when a BTC is trading at USD 13,820, the amount of Bitcoin that MicroStrategy acquired is equivalent to USD 528.6, with a difference of USD 103.6 million.

However, MicroStrategy’s profit for the last three and a half years has been USD 78 million. Researcher Kevin Rooke reached this conclusion based on the company’s financial reports.

Bitcoin as a Catalyst to Generate Long-Term Value

In his latest financial statement, MicroStrategy CEO Michael Saylor explained that he decided to make Bitcoin the main reserve asset in his treasury as a way of adopting virtual technologies.

He added that buying Bitcoin for USD 425 million during the quarter offers greater return potential for investors than holding such balances in cash. Besides, he said that this action “increased the overall visibility of MicroStrategy in the marketplace.”

The executive hopes that the company’s “proactive management of the balance sheet”, with the consequent improvement in revenues, will serve as a “catalyst to generate substantial long-term value for shareholders.”

In the third quarter of this year, MicroStrategy (MSTR) shares on the NASDAQ reflected Saylor’s intentions as their price rose by as much as 56%. However, MSTR did not keep up with the recent rise in the price of Bitcoin and has fallen by almost 10% since October 23^rd.

MicroStrategy CEO Also Invests in Bitcoin

On his Twitter account, Saylor announced that not only MicroStrategy owns Bitcoin as a reserve asset, but that he owns 17,732 BTC. He said that he made this purchase before his company did, letting them know them of the position in due course.

Saylor invested more than USD 175 million at an average price of USD 9,882. This investment, priced at USD 13,200 per Bitcoin today, has brought him almost USD 59 million in profit.

Even though no one knows for sure when he invested, it seems to have occurred between May and July. In that period, the price of Bitcoin remained lateralized in the range between USD 9,000 and USD 10,000.

No One Should Ignore Bitcoin

In 2013, Michael Saylor said that the days of Bitcoin were numbered. However, he now argues that the cryptocurrency is stronger than gold and even recommends investing in it.

Charles Edwards, Founder of Capriole Investments, wondered about the day when MicroStrategy would call itself an investment company, rather than a technology one.

According to Edwards, events like this “are sending a great message to the world: no one should ignore Bitcoin.” Likewise, he predicted that the FOMO (fear of being left out) will take over corporate giants, who will venture into the world of Bitcoin.

By Alexander Salazar

The average value of the fees per transaction on the Bitcoin network rose to USD 10.19. The number of unconfirmed transactions has been increasing since October 25^th.

The Bitcoin mempool shows an increasing trend of unconfirmed transactions. The temporary memory of the network, which stores transactions pending confirmation, indicates that the network is now 102 MB in size and has more than 77 blocks waiting.

The increase in the number of unconfirmed transactions began on October 25^th, according to data from Blockchain.com. They went from 3,164 pending transactions to 129,492 on October 27^th. This figure decreased, but it resumed growth again the next day and is becoming increasingly high.

At the time of writing this article, more than 152,192 transactions are still awaiting confirmation on the Bitcoin network, according to data from mempool.space.

This has also led to an increase in the amount of the fees that users must pay for sending transactions in Bitcoin. The high number of operations indicates a level of congestion that causes a longer average confirmation time.

This situation is evident in the current statistics of the mempool when it indicates that users have even paid more than 7,000 sat/byte. During this congested period, that represents around USD 150 in fees.

While the fees of the last four blocks average are between 200 to 300 sat/byte (between USD 5 and USD 6), there are still 77 blocks on hold.

Concerning miners’ profits and their relationship to total fees, 30% of the total block reward derives from fees (with the current issuance of 6.5 BTC per block). At the time of writing this article, the most recent data show a total fee of 3.11 BTC (USD 40,505) in the next block to confirm.

According to Buy Bitcoin Worldwide, the estimated fee for a transaction to confirm on October 27^th was about USD 7.6 for SegWit addresses and USD 10.7 for Legacy addresses. The difference between the prices for transactions sent from SegWit and Legacy addresses is due to their apparent weight on the network.

On average, fees reached a high of USD 10.19 on October 27^th, according to bitinfocharts.com. This amount far exceeds the high that occurred on October 22^nd, when average fees were USD 6.36.

These have been the transactions with the highest fees this year and the highest value since late 2017. This year, there have been other significant increases after the Bitcoin halving, which occurred in May. Other highs in fee payments took place previously: May 20^th (USD 6.64), August 6^th (USD 6.47), August 18^th (USD 5.56), and September 4^th ( USD 5.41).

The most recent increase in the number of transactions paying high fees coincides with the growth of the price of BTC. The pioneering cryptocurrency recently managed to break the USD 13,000 barrier.

In the last week, the price of the foremost cryptocurrency in the market has increased significantly, going from USD 11,800 to almost USD 14,000. This increase represents an advance of more than 10%, according to data from Live Coin Watch.

By Alexander Salazar