Bitcoin on Peter Schiff’s Books: Valid Views, or Skeptical Critic?

Audy Castañeda
-
0
<strong>Bitcoin on Peter Schiff’s Books: Valid Views, or Skeptical Critic?</strong>

Schiff mentioned that Bitcoin’s rally could halt the rally enjoyed by other assets outside of the crypto market. Long-term holders showed great confidence in BTC, as Schiff’s favorite lagged behind.

Peter Schiff, a well-known economist and financial commentator, has repeatedly made his stance on Bitcoin [BTC] clear through public statements and numerous tweets.

While his thoughts are seen by some as valid criticisms backed by sound economic reasoning, they are perceived by others as skeptical and dismissive of the cryptocurrency market in general.

In another round of employing his Bitcoin hammer, Schiff pointed out that the recent surge above $30,000 means the king’s coin was late to the party, already enjoyed by other speculative assets. Referring to all crypto assets as “low quality,” Schiff noted the following:

“Now that Bitcoin has finally joined the party, perhaps it’s a sign that the party will be over soon. Rallies usually end when the lesser quality material finally participates.”

Before the latest rally, Schiff also mentioned that Bitcoin lacked long-term demand. He also highlighted that the investors involved with the $594 billion market cap coin were gambling.

Schiff’s Gold Can’t Match BTC, Still…

Never ashamed to call gold the best store of value, the Euro Pacific Asset Management global strategist’s criticism of BTC began as early as 2013.

Despite several incidents that seem to have shown his opinion wrong, Schiff has never backed down from his point of view. In fact, he once called Bitcoin’s “digital gold” reference a hoax that would never materialize into anything relevant.

However, Schiff’s constant criticism has not yielded the results the man would have wanted. On a year-to-date (YTD) basis, the BTC yield was an 84.57% increase. Gold could only boast a rise of 6.26% in the same period, according to data from Long-Term Trends.

However, in this same year, both Bitcoin and Gold have had a strong correlation. This happened around March when various traditional institutions were plagued with challenges. During this period, Schiff bragged that gold should be the safe haven to go to.

During this period, CoinShares head of research James Butterfill explained that both assets seemed like a less risky investment. This was his conclusion when he compared Bitcoin to other assets, such as the S&P 500.

Schiff: Maxis are “Marketing Frauds”

In 2021, Schiff engaged in a heated debate with SkyBridgeCapital CEO and Bitcoin maximalist Anthony Scaramucci. On that occasion, Scaramucci mentioned that Bitcoin’s scarcity and portability would ensure it transcended gold in the long run, stating that “Bitcoin is being adopted quite quickly and the result of this means that the price is going to go much higher.”

On the other hand, Schiff argued that Bitcoin and gold have absolutely nothing in common. He also added that “Part of the marketing fraud is trying to present Bitcoin as gold: gold 2.0, digital gold. It’s just a string of numbers with no sustainable value.”

In short, Peter Schiff’s views on Bitcoin can be characterized primarily as skepticism, or his determination not to pander to his long series of wrong decisions.

While he has often raised concerns about its volatility and price fluctuations, his points about whether it’s a long-term store of wealth may not stop anytime soon.

By Audy Castaneda

Crypto Roundup: Bitcoin in Uptrend, According to Credible Crypto Predictions and Other News of Interest

Audy Castañeda
-
0
<strong>Crypto Roundup: Bitcoin in Uptrend, According to Credible Crypto Predictions and Other News of Interest</strong>

This week has been an exciting one for cryptocurrency investors, with news ranging from central bank use of Blockchain to new NFT projects.

Here are the five top news of the week in the world of cryptocurrencies:

  • Bitcoin in an uptrend, according to predictions from Credible Crypto.
  • US SEC suspends $30 million fine on BlockFi until debts to creditors are paid.
  • The crypto world celebrates the approval of the first leveraged Bitcoin ETF in the United States.
  • France gives CACEIS Bank the green light to offer cryptocurrency custody services.
  • Binance under scrutiny by French authorities for possible money laundering.

Bitcoin in Bullish Trend, According to Credible Crypto

Credible Crypto, a prominent trader, has claimed that Bitcoin is on track to hit new all-time highs. According to their analyses, the Bitcoin price is in an uptrend and could exceed previous price levels in the coming months.

Credible Crypto argued that the next four months should provide the BTC price bullish momentum needed to break above $69,000. This is information that needs to be monitored before making major financial decisions.

US SEC Suspends BlockFi’s $30M Fine Until Debts to Creditors Are Paid

The amount represents the balance of a $50 million settlement with the regulator from February 2022. In fact, the SEC will waive the amount owed by BlockFi to avoid delays in distributing funds to investors.

In February last year, the SEC announced action against the crypto lending company for failing to register its high-yield interest accounts as securities. BlockFi agreed to pay $50 million to the regulator as part of the settlement, and another $50 million to 32 US states.

In November 2021, BlockFi filed for Chapter 11 bankruptcy, after the FTX crisis raised questions about its financial health.

The Crypto World Celebrates the Approval of the First Bitcoin Leveraged ETF in the US

The SEC has approved the issuance of the country’s first leveraged Bitcoin ETF, the x2 Bitcoin Strategy ETF (BITX) from Volatility Shares. This exchange-traded fund will debut on the New York Stock Exchange next week. This means that if Bitcoin goes up 10%, the ETF investor will earn 20%.

Said approval comes at a time when Bitcoin has surpassed $30,000 due to institutional interest.

France Authorizes CACEIS Bank to Offer Cryptocurrency Custody Services

CACEIS Bank, owned by Crédit Agricole and Santander, has registered with the French Authority for Financial Markets (AMF) to offer cryptocurrency custody services. The bank, which services asset managers, joins other traditional financial firms showing interest in the crypto market. France has supported the crypto industry and was the first European country to grant registration to Binance.

CACEIS Bank is the latest to be recognized in Europe’s advanced crypto regulatory framework, as the EU prepares to set new crypto licensing rules in 2024.

Binance Under Scrutiny by French Authorities for Possible Money Laundering

Binance is being investigated for money laundering and illegal client solicitation by the French authorities. Binance CEO Changpeng Zhao downplayed the investigation, stating that “Binance fully cooperated. And it is not the only crypto business inspected. It has also happened to others in Paris as well. Binance France continues to be our flagship in Europe.”

By Audy Castaneda

CBDCs and Stablecoins: Problems with Banks

Audy Castañeda
-
1
<strong>CBDCs and Stablecoins: Problems with Banks</strong>

CCData recently released the June 2023 Stablecoins & CBDCs Report on the status of major fiat stablecoins and central bank digital currencies (CBDCs).

The first fact that emerges in the Stablecoins & CBDCs report is the continued decline in the stablecoin market.

The total market capitalization of stablecoins fell 0.57% in June to $128 billion (as of June 19). This is the lowest stablecoin market cap since September 2021, after fifteen straight months of declines. However, at the same time, the dominance of stablecoins in the overall crypto market capitalization has risen to 11.8%, so the underlying problem is not related to stablecoins.

Nonetheless, the USDT (Tether) market capitalization hit a new all-time high, peaking at $83.5 billion in June. This was not enough to break the fifteen-month series of declines in the overall capitalization of all stablecoins, though, because USDT is among the few to rise. Also, USDT is rising slightly while other stablecoins are falling a lot.

In fact, USDT’s dominance in the stablecoin market increased from 64.3% in May to 64.6% in June. A more indicative piece of information, however, is that relating to trading volumes.

Trading Volumes

CCData reveals that trading volume in stablecoins fell to a yearly low, with a drop on May 10 to $414 billion. This is the lowest monthly trading volume for centralized stablecoins since December 2022.

Meanwhile, centralized exchanges saw trading activity grow in June, which evidently shifted from stablecoin to actual cryptocurrencies, as the dominance of fiat currencies has reached an all-time low in the crypto markets.

Fiat currency trading volumes are much higher than they were in the early days, but as a percentage, fewer and fewer people are using fiat currency to trade cryptocurrencies. The market shares of fiat currency trading pairs in crypto markets decreased to 18.8% in June, as compared to stablecoin trading pairs, also due to a 33.9% drop in trading volumes for fiat currency pairs, which fell to $99.7 billion.

CBDCs, Stablecoins, and Issues with Banks

According to CCData, the decrease in the trading volume of fiat currency pairs in the crypto markets is due in particular to the problems of the crypto exchanges with their banking partners, for which the banks themselves would have favored such drop in trading volume in the first place. Banks are also behind some problems that stablecoins have been facing for a few months.

Banks are not the only problem, and probably not even the main one, although it is curious that their work is hurting fiat currencies and stablecoins in the crypto markets, in favor of the real cryptocurrencies.

Although the report also covers the CDBC, it does not add further details. On CBDCs, it just says that developments around the world continued in June, with Japan and Thailand joining the list of countries that have launched pilot programs for their respective central bank digital currencies.

However, the Bank of Thailand itself has stated that as of today there is still no official plan for the launch of its own CBDC.

In addition, the report reveals that the team that facilitates digital interactions between government services, Symfoni Solutions, has announced the launch of a bridge, an ERC20 token pegged to NOK on Arbitrum, that will connect the Norwegian CBDC, with the Swedish one, as well as with the BROK government platform, which uses Blockchain technology to manage and share information about the shares of unlisted companies.

By Audy Castaneda

How Coinbase Attempts to Save Crypto in Court

Marina Meza
-
0
<strong>How Coinbase Attempts to Save Crypto in Court</strong>

A pair of court battles between the SEC and Coinbase could determine the future of cryptocurrency trading in the United States. Coinbase is playing both offense and defense.

The decisions in these cases could end a standoff between an industry determined to disrupt traditional finance but plagued by malpractice, and regulators, who have so far tried to rein in the cryptocurrency business through ad hoc enforcement, rather than deliberate rule-making.

Notoriously, Coinbase’s relationship with the SEC has soured, as the company has become more impatient and adventurous in its offerings, and the agency has stalled on regulation, while also becoming more skeptical of regulations. cryptocurrencies.

 This became more apparent in July 2022, when Coinbase filed a petition requesting that the SEC begin defining a regulatory framework for cryptocurrencies, including a definition of what would make them securities subject to SEC rules.

Said petition pointed out that other jurisdictions, such as the European Union, Australia, and the United Kingdom, were promoting regulations designed to meet the needs of the cryptocurrency market, with the idea in addition to protecting investors.

No SEC Response

On March 22, the SEC warned Coinbase about the likelihood that it would soon be subject to enforcement action.

In April, Coinbase asked the Third Circuit Court of Appeals to compel the SEC to at least respond to its then-nine-month-old petition, if only to deny it, which would open the door to a lawsuit against Coinbase. agency. “We never looked at the courts, but we always prepared for them,” says Grewal.

On the other hand, while the SEC sued Binance founder and CEO Changpeng Zhao along with his company, Coinbase’s Armstrong was not named as a defendant by the SEC.

Instead, the agency rebuked Coinbase for publicly marketing itself “as a ‘compliant’ player in the crypto-asset space,” while placing its interests in profit “above the interests of investors, and above compliance.” the law.”

On June 8, the Third Circuit gave Coinbase a little satisfaction, ordering the SEC to at least say when it would respond to Coinbase’s rulemaking petition, though the response could still be a denial.

The SEC had argued in May that Coinbase had no right to compel it to act on the petition and that it was still considering the matter, making its silence “entirely reasonable.”

However, after the Third Circuit issued its order, the SEC reluctantly asked for 120 more days for SEC staff to make a recommendation to commissioners on Coinbase’s petition. This week, the Third Circuit gave the SEC until October 11 to inform the court.

What Lies Behind the Regulations

Cryptocurrencies have proven to be a dangerous place for investors, especially small ones, with hacks, counterfeit coin offerings, and outright theft plaguing the sector.

Last year, a record for cryptocurrency hacks was broken, according to Blockchain analytics firm Chainalysis, with $3.8 billion worth of assets stolen.

More than $20 billion worth of cryptocurrencies were received by illicit addresses, the company added. This was 0.24% of all cryptocurrency transactions, twice as many as in 2021.

The SEC’s lawsuit alleges that Coinbase made billions of dollars by “illegally facilitating the buying and selling of crypto-asset securities” by interweaving the “traditional services of an exchange, a broker, and a clearing agency” without registering with the government to provide those functions.

As a result, the lawsuit alleges, the company “deprived investors of important protections.”

By Marina Meza

Binance Gets in Trouble with Another Financial Regulator

Marina Meza
-
0
<strong>Binance Gets in Trouble with Another Financial Regulator</strong>

Binance Banned from Belgium, Effective Immediately

The world’s largest crypto exchange by trading volume, Binance, is in trouble with regulators around the world. In recent developments, the Belgian Financial Services and Markets Authority [FSMA] has ordered Binance to halt its operations in the country immediately.

In a notice released today, the authority noted that Binance breached the nation’s law. Specifically, the FSMA claims that Binance has been providing exchange services between digital and fiat currencies, as well as custodial wallet services, from countries outside of the European Economic Area (EEA), in violation of Belgian laws:

“Despite several requests for information made to Binance, the latter has not been able to demonstrate to the required legal standard that the legal entities that carry out the services of the type mentioned above in Belgium are based in the European Economic Area and are authorized, on the basis of its national law, to provide such services in Belgium.”

Binance Transgression in Belgium

Binance has been offering exchange services between digital and fiat currencies in Belgium without legal authorization, which is illegal under Belgian financial regulations. Despite several opportunities to demonstrate compliance with legal requirements, Binance has reportedly failed to do so.

The FSMA decision banning Binance from all activities in the country takes effect immediately on June 23.

“Binance does not deny that it offers such services in Belgium.” However, the entities providing these services are largely unknown, as 19 of the 27 companies involved are based outside of the EEA:

“These services appear to be provided by Binance Operators not otherwise identified in such contractual terms and conditions.”

Binance Does Not Provide Trading Details

With this, the crypto entity cannot provide any exchange, fiat to crypto, and custody services in the region. Furthermore, FSMA stated that the services provided by Binance traders were “not otherwise identified”. There were 27 Binance entities providing the same services, of which 19 were located outside of the EEA.

The regulator stated that Binance “has failed to demonstrate the required legal standard.” It added that the crypto entity did not prove that its crypto services in Belgium were from an entity based in the EEA. Binance also failed to prove that its operations were “authorized, based on its national law, to provide such services in Belgium.”

The FSMA has also required that Binance immediately initiate steps to return all crypto keys and digital currencies on behalf of Belgian clients or transfer these assets to entities within the EEA authorized to conduct their crypto and custodial activities.

In this regard, the regulator noted that “The Brussels Crown Prosecutor has been informed of acts that may constitute a criminal offense.”

On the other hand, the regulator indicated that non-compliance with its law could subject the company to criminal sanctions. And, the case would fall under its Law Against Money Laundering and the Financing of Terrorism.

Such regulatory action comes at the height of tensions between the crypto exchange and the US regulator – the Securities and Exchange Commission. [SEQ].

The US wing of the exchange scored a minor victory against the regulator when the court ruled that it would not freeze all of its assets in accordance with the SEC’s wishes.

Furthermore, the commission also admitted that it had no evidence that the exchange commingled client assets.

By Marina Meza

US Supreme Court Rules in Favor of Coinbase

Audy Castañeda
-
0
<strong>US Supreme Court Rules in Favor of Coinbase</strong>

California district courts had denied Coinbase’s request for arbitration. The Supreme Court ruling grants Coinbase’s request for arbitration. It is the first time that the Supreme Court has ruled in favor of a cryptographic entity.

The United States Supreme Court has backed Coinbase in its attempt to take customer claims to a private arbitration process instead of litigation in traditional courts.

Indeed, Coinbase argued that its user agreement requires that disputes be resolved through arbitration and that the Federal Arbitration Act, which governs arbitration dispute resolution procedures, requires that action in lower court be stopped when denies a request.

A demand for arbitration, to give a clear idea, is a process for resolving legal disputes outside of traditional courts. In a demand for arbitration, the parties involved in the dispute agree to submit their dispute to an arbitrator or a panel of arbitrators, who act as a private judge.

In this process, the arbitrator listens to the arguments of both parties, reviews the evidence presented, and issues a decision that is binding on both parties.

In both cases, federal judges denied Coinbase’s request to take the claims to arbitration, arguing that user agreements were required.

Supreme Court Recognizes Legitimacy of Cryptocurrencies in the Coinbase Case

A tweet by Reuters on June 23 announced that the “US Supreme Court rules in favor of Coinbase in arbitration dispute.” Thus, the Supreme Court, in a five-to-four declaration, overturned a lower court’s ruling involving Abraham Bielski.

Judge Brett Kavanaugh warned against allowing trial courts to proceed while the issue of arbitration is resolved on appeal. Which could cause the benefits of arbitration to be irretrievably lost.

On the other hand, Judge Ketanji Brown Jackson in the dissenting opinion said the ruling created a new rule that perpetually favors the party seeking arbitration.

“Now, any defendant who devises a non-frivolous argument for arbitration can not only appeal but also pause the case. Which leaves plaintiffs to suffer damages, lose evidence, and exhaust their patience and funding in the meantime.”

Coinbase Push for Arbitration

Coinbase asked the district courts in charge of the cases to dismiss them as, according to the company, users agreed to arbitrate disputes rather than file lawsuits when they created their accounts.

The US Supreme Court ruling marks the first time that courts in the country have ruled in favor of cryptocurrencies. The ruling was written by Justice Brett Kavanaugh and was upheld by four of the court’s five other conservative justices in a 5-4 decision.

In its opinion, the court wrote the following:

 “By creating a Coinbase account, individuals agree to the terms of the Coinbase User Agreement. As relevant here, the User Agreement contains an arbitration provision, which mandates that disputes arising under the agreement be resolved by binding arbitration.”

The two cases against Coinbase will now be referred to California district court arbitration, which is typically less expensive for companies than litigating or resolving disputes in court.

The Supreme Court ruling grants the delays in the proceedings, allowing Coinbase to continue with the appeals, before the class action lawsuits against it proceed.

This is not only good news for Coinbase, but also for the entire cryptocurrency sector, which is under fire from the SEC.

By Audy Castaneda

1...470471472...1,654Page 471 of 1,654