Crypto Guides, Knowledge & Insights

Basel Committee Classifies Bitcoin as High Risk for Banks

The Basel Committee for the worlds leading central banks proposed a maximum capital requirement for crypto exposure because of risk arising from price volatility and money laundering.　　Banking Committee Suggests Prudence for Crypto　　The Basel Committee on Banking Supervision published a report Thursday addressing the risks posed by cryptocurrencies.　　The report proposed “conservative prudential treatment” for crypto assets. The Basel Committees members include the U.S. Federal Reserve, the Bank of England, Deutsche Bundesbank, and the Bank of France, among others.　　The report stated that cryptocurrencies pose “global financial stability concerns and risks to the banking system in the absence of a specified prudential treatment.”　　This is the second draft of the prudence proposal put forward by the committee in the last two years.　　The group classified crypto assets into two categories: one for traditional securities and fiat-backed stablecoins, and another for cryptocurrencies with no asset backing them. The Basel Committee recommended the regular Basil Framework for the first category, which also applies to traditional commodities. The second group was flagged as “high risk,” and the body urged maximum caution, including a suggested capital requirement of 1,250%.　　Banks are required to set aside adequate capital to cover losses from activities such as lending. The capital requirement is different

2021-06-11Deep Dive

Breaking: France and Switzerland Launch Cross-Border CBDC Trials

IN BRIEF　　Swiss National Bank and the Bank of France join hands to start commercial cross-border CBDC trials.　　The cross-border trials would test the efficiency and remittance ease.　　The central banks of France and Switzerland have joined hands to launch the cross-border commercial trials for CBDC. Both central banks have partnered with several commercial banks including UBS Group AG, Credit Suisse Group AG, Accenture Plc, and Natixis SA to test the central bank digital currencies.　　The collaborative effort was launched under the innovation hub at the Bank for International Settlements.　　Benoit Coeure, BIS Innovation Hub head said,　　“The G20 has made enhancing cross-border payments a priority. This experiment contributes to this work by exploring how wholesale CBDC could enhance speed, efficiency, and transparency in cross-border use cases.”　　The commercial trials would test the cross-border remittance functionalities and exchange of a financial instrument against a euro CBDC. The Swiss National Bank and the Bank of France stressed that the ongoing trials shouldnt be seen as an assurance for the issuance of full-fledged CBDC.　　G-20 Nations Gear Up to Counter Chinas Progress　　The current joint trials by the central banks of France and Switzerland are the first major trials by any country apart from China. Earlier Russia announced it would start

2021-06-11Deep Dive

Google reversing crypto ads ban a testament to blockchain market maturity?

Since 2018, tech giant Google has been in an on-and-off relationship with crypto, but can the latest favorable outlook stick？　　The term “unpredictable” has almost become synonymous with the crypto industry at this point, as was on full display recently when technology juggernaut Google decided to un-ban digital asset exchanges from using its advertisement services after a lengthy period of almost three years.　　In this regard, a policy update blog released by the firm stated that come Aug. 3, it will once again allow crypto exchange and wallet operators to advertise “those products and services that are certified by Google.”　　In terms of the requirements that exchanges looking to advertise on the platform need to satisfy, Google requires applicants either to be registered with the Financial Crimes Enforcement Network, of FinCEN, as a money services business (with at least one state as a money transmitter) or with a “federal or state-chartered bank entity.”　　Though on paper, this may not seem to be much, the update can potentially allow prominent digital financial institutions — that seek to enable movement between physical and digital assets — to make use of Googles reach once again, thus enabling their products to gain exposure to an entirely new investor

2021-06-11Deep Dive

DraftKings CEO Jason Robins On Why He Can’t Add Cryptocurrencies

During a live town hall hosted by stock trading app Public Wednesday, DraftKings CEO Jason Robins said he had looked into adding cryptocurrencies as a form of payment on his online sports betting platform but that regulations have so far prevented him from doing so.　　He explained that the payment methods that they can accept on their website is heavily dictated by individual state regulators, as each states has its own rules and regulations regarding online sports betting and payments used on the platform.　　Why Cant DraftKings Support Cryptocurrencies？　　Robins who started the sports betting company in 2012 said that while he would like to have cryptocurrencies as a way to place bets on the website, crypto is not approved as a method of payment in any of the states that DraftKings currently operates in.　　“The payment methods we can accept are determined by the individual state regulators and as of now, crypto is not an approved payment type in any of the states where were live.”　　This is especially important to note as only 10 states in the United States allows sports betting and only four allows online gambling and DraftKings currently operates in 12 states.　　Sports betting has started gaining a lot of support

2021-06-11Deep Dive

IMF Concerned About El Salavador’s Bitcoin Law Due To “Legal And Economic Issues”

Less than a week since El Salvador‘s “Ley Bitcoin” has been approved by its national congress and the international financial organism is reacting. The International Monetary Fund (IMF) has expressed “economic and legal” concerns over the nation’s new pro-BTC legislation.　　The countrys Head of State, Nayib Bukele, will meet with the financial organism today. The government of that country apparently seeks to settle a $1 billion credit program. However, their Bitcoin Law could become a hurdle. Per a Reuters report, an IMF spokesman, Gerry Rice said:　　“Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis. We are following developments closely, and well continue our consultations with the authorities.”　　Rice added that crypto-assets can be a risk at a regulatory level. The IMF will discuss their article IV with El Salvadors national government. According to this article, the financial institution can hold bilateral discussions with its members.　　During these annual meetings, the government provides the IMF with economic and financial data. In addition, the government officials and the institution discuss economic developments and financial policies, such as the Bitcoin Law. Rice said that “policies to strengthen economic governance” will be on the meetings agenda.　　Bitcoin

2021-06-11Deep Dive

US Bank State Street to Set Up a Digital Unit Focused on Cryptocurrencies

After citing surging demand from institutional clients, State Street has decided to release a digital unit focused on cryptocurrency investments.　　Americas second-oldest bank, State Street Corporation, will establish a digital unit to focus on cryptocurrency endeavors. This comes shortly after the banking organization with over $40 billion in Assets Under Management (AUM) said it will enable crypto trading through its platform.　　State Street Sets Up a Digital Unit　　The Finance Times reported State Street‘s latest endeavor in relation to the cryptocurrency industry. According to the coverage, the giant bank has outlined plans to create a new digital division, which will allow the organization’s institutional clients to interact with crypto assets.　　State Street Digital comes after the enhanced appetite from customers, whose demand towards digital assets has increased by 300% in the past few months, said the divisions person in charge – Nadine Chakar.　　“We are at a tipping point now where this is moving fast. We are getting calls from endowments and foundations that are getting donations in crypto and saying, what do we do with this？ We are seeing companies that are thinking of adding crypto to their balance sheets.” – she added.　　The new initiative will be the result of a collaboration between the

2021-06-11Deep Dive

How Uniswap v3 Begun a New Age Of Efficiency For DeFi

The popularity of Uniswap v2 in 2020 was unprecedented for a DeFi protocol. The decentralized exchange seemed to be the epicenter of the new financial revolution. First matching and then outperforming major trading platforms in terms of volume, Uniswap has been forked countless times to try and mimic its success.　　The launch of its third iteration on May 5th introduced a new model which combines the limit order books used by traditional exchange platforms with the automated market maker (AMM) formula. This design has brought capital efficiency with more flexibility when providing liquidity.　　In exchange, liquidity providers (LPs) must have an active role in the protocol. Uniswap v2 model allows a user to provide liquidity for the entire range of a trading pair. The newest iteration has a feature called concentrated liquidity and will limit it to a specific section of the price spectrum.　　Therefore, users must compete to stay profitable. After its rollout, the decentralized exchange saw a bump in its number of users with the migration of around 9,500 LPs to the new iteration. This metric dropped after the hype settled, according to data provided by The Block.　　With Uniswap v3 model, fewer LPs have the capacity to participate in the race

2021-06-11Deep Dive

‘All Banks Go Fintech’: Hong Kong Unveils ‘Fintech 2025’ Strategy

The Hong Kong Monetary Authority (HKMA) plans to guide local banks towards full adoption of fintech technologies, a new strategy reveals. The region‘s central banking institution also stressed that it’s going to “walk the talk” by digitalizing its own supervision of financial institutions.　　Hong Kong Central Bank to Support Fintech Development　　Hong Kong‘s monetary policy regulator has presented its new strategy to stimulate the fintech development of China’s special administrative region. With the strategy, HKMA aims for a comprehensive adoption of new financial technologies in the next four years. The central bank also wants to “promote the provision of fair and efficient financial services for the benefit of Hong Kong citizens and the economy.”　　Speaking at a seminar organized by the Hong Kong Association of Banks, HKMAs chief executive Eddie Yue outlined five focus areas of “Fintech 2025.” The regulator wants to encourage all banks to go fintech, future-proof Hong Kong for CBDCs, create next-gen data infrastructure, expand the fintech-savvy workforce, and nurture the ecosystem with funding and policies.　　One of the key directions in which the monetary authority intends to intensify its efforts is the full digitalization of bank operations. Expanding on the accomplishments of its Smart Banking Era Strategy announced in 2017,

2021-06-10Deep Dive

El Salvador Brings New Global Puzzle - What Is Bitcoin & How To Tax It?

There is a great number of issues debated today following the major news that El Salvador recognized the worlds number one cryptocurrency, bitcoin (BTC), as legal tender. This may bring some important changes when it comes to how bitcoin is treated on the legal stage globally. However, in what manner and to what extent is not exactly clear yet.　　As reported, the Legislative Assembly of El Salvador passed the Bitcoin law today. Also, the 90-day countdown to promulgation has already begun, meaning that, in September, BTC will be recognized as a satisfactory payment for any monetary debt.　　The new law also allows prices to be expressed in BTC and taxes to be paid in it, while exchanges in BTC will not be subject to capital gains tax.　　“It will be interesting to see how tax authorities around the world react to this,” Richard Howlett, a solicitor at Selachii Legal Limited, a London-based law firm, told Cryptonews.com.　　According to him, if El Salvador would declare that their legal tender is BTC only, then it would set an argument that BTC elsewhere is not subject to capital gains tax also.　　“However, I fear that governments worldwide would not want to lose the capital gains tax income and

2021-06-10Deep Dive

Gembiranya HODL Token TFUEL

Meneliti pasaran menuju penghujung minggu, pasaran kripto dilihat seperti sedang memberi isyarat untuk membuat lonjakan harga yang disokong oleh kenaikan yang dibuat oleh nilai Bitcoin　　Namun disaat kripto lain sedang membuat rentak kenaikan semula, TFUEL sudah pun meroket melebihi 100% pada bulan ini.　　Kenaikan harga TFUEL ini disokong kuat oleh pelancaran Mainnet 3.0 di rangkaian yang dijadualkan pada 30 Jun ini dan juga dengan pelancaran ‘one-click delegated staking’　　Hal itu terus memberikan momentum yang positif kepada TFUEL yang telah mencatatkan paras ketinggian sepanjang masa (ATH) terbaru 2021 di paras harga $0.67.　　Dapat dilihat pada carta TFUEL/USDT, menjelang penghujung dagangan Mei, TFUEL sudah pun mula menunjukkan pergerakan yang positif setelah menembusi paras RBS (resistance become support) sekitar harga $0.30-$0.35.　　Menyambung momentum kenaikan pada pembukaan pasaran hari ini, nampaknya harga TFUEL sedang membuat sedikit penurunan dari paras ATH sebelum ini sekitar harga $0.57.　　Sekiranya pergerakan harga berjaya mengekalkan momentum lonjakan, paras ATH terbaru $0.67 bakal ditembusi dan meneruskan langkah pendakian yang lebih tinggi dalam mencapai paras ATH terbaru.　　Kebanyakan pakar penganalisis menjangkakan harga TFUEL berkemungkinan bakal menuju ke paras harga hingga sekitar $0.80-$1.0 untuk membuat ATH terbaru jika terus disokong sentimen yang positif.　　Namun jika pergerakan harga tidak berjaya meneruskan kenaikan, paras RBS $0.57 bakal diuji semula sebelum memberikan isyarat

2021-06-10Deep Dive

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