Stable Gold May Act As A Hedge Against Crypto Volatility Says Top Gold Miner

Stable Gold May Act As A Hedge Against Crypto Volatility Says Top Gold Miner

The age-old safe haven asset is tangible, and crypto holders should consider having some gold, said Newcrest Mining Ltd. CEO Sandeep Biswas.

With the market capitalization of the overall cryptocurrency market reaching $1.5 trillion, one of the world’s leading gold miners recommends investors to buy the traditional safe-haven asset, gold.

“If you’re into cryptos, you want to consider having some gold,” Newcrest Mining Ltd. Chief Executive Officer Sandeep Biswas told Bloomberg following the Melbourne-based company’s earnings reported on Thursday. The precious metal, according to Biswas, “may act as a bit of a hedge against the volatility of cryptos.”

As we have seen since last year, Bitcoin as a digital gold narrative is gaining traction, which actually resulted in the leading cryptocurrency stealing some of the investment inflows from gold ETF products.

Price-wise, the bullion has been on a downtrend ever since, hitting its ATH around $2,075 in August 2020, while Bitcoin hit yet another ATH on Thursday at $49,000. Compared to Bitcoin’s 62.75% gains YTD, the yellow metal is actually down 3.68%.

This certainly heats up the debate whether the digital currency with a limited supply can erode gold’s appeal over time. According to Biswas, the two assets are distinct, and owning the stable gold would benefit crypto holders.

“Gold is a different class of investment,” Biswas said. “It’s a tangible asset: you can see it, you can touch it, you can feel it, you can mold it, you can make it into jewelry, whatever you want.”

While JPMorgan had said gold might suffer because of Bitcoin’s growing acceptance, Goldman Sachs Group believes both the assets can coexist despite the digital asset capturing some demand from the precious metal.

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Author: AnTy

Blockchain Association Strengthens Fight Against FinCEN Rule, Adds Five New Members

Blockchain Association Strengthens Fight Against FinCEN Rule, Adds Five New Members

  • Blockchain Association adds five new members.
  • The Association is at the forefront in the fight against FinCEN’s proposed crypto laws.
  • The members have grown over three times since launch in 2018.

In a tweet earlier on Thursday, the Blockchain Association announced five new firms to its coalition, namely Uniswap, Fireblocks, BlockFi, Blockchain Capital, and CMT Digital. This brings the total number of members to 30, strengthening the Association’s voice, especially in the recent battle opposing the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) crypto laws proposal.

The Association launched in 2018 intending to lobby lawmakers in Washington DC and defend the blockchain community from obscure laws. Starting with 10 members, including Circle, Digital Currency Group, and Polychain Capital, the Association has tripled in member size following the recent additions.

This gradual growth in blockchain firms joining BA provides “a bigger megaphone” and allows the Association to “push back on bad rules before they take effect,” the tweet further reads. Additionally, the association is also pivoting from its main issue,  pushing clarity on securities law, to focus on other pertinent problems in the crypto space.

“At launch, we focused on pushing clarity on securities law,” Blockchain Association post reads. “Today, we shape the debate on self-hosted wallets, stablecoin policy, tax policy, custody, and privacy.”

The Association, however, saw one of its biggest launching partners, Coinbase, the US largest crypto exchange, leave the association in August shortly after Binance U.S. joined the association.

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Author: Lujan Odera

Nexus Mutual Now Covers Binance, Coinbase, Gemini & Kraken Users Against Security Breaches

Nexus Mutual’s Insurance Now Covers Binance, Coinbase, Gemini & Kraken Users Against Security Breaches

Decentralized finance insurance protocol Nexus Mutual has updated the list of cryptocurrency exchanges that are eligible for incidence protection. The company’s services will now include customers of centralized exchanges like Coinbase, Binance, Gemini, and Kraken.

More Custodians Welcome

The update, which was announced on Monday, will allow these exchanges’ customers to purchase protection against certain hacks or asset withdrawal issues.

It’s part of the Custody Cover initiative, and it provides compensation for users who lose over ten percent of their funds in the event of a security breach on any of the supported exchanges. Users can also claim cover if an exchange suspends withdrawals for over 90 days.

Nexus Mutual launched Custody Cover in December 2020 to provide insurance cover for centralized crypto. At the time, the company explained that it was branching out of DeFi to build its insurance marketplace. The company’s long term goal is to use blockchain to provide cover for companies and individuals within and outside the crypto space.

“We’re focused on the longevity of Nexus Mutual and want to become a marketplace that covers diverse risks both in and outside of the crypto space. We want to use the benefits of blockchain to protect all underserved communities and this is our first step in that direction.”

Custody Cover launched with support for six custodians – Celsius, BlockFi, Hodlnaut, Nexo, inLock, and Ledn.

With Custody Cover, Nexus Mutual is looking to solve the issue of overly high insurance coverage prices in the crypto space. While premiums for insurance vary based on the platform, numbers appear to be too high for everyday customers and traders.

A Spotlight on Custody

Nexus Mutual’s branching out into the centralized space is coming amid significant growth in the crypto custody space. In response to increased institutional crypto demand, custody providers have also done their bit to improve security.

Recently, Bank of America-Merrill Lynch conducted a survey showing increased Bitcoin activity from Wall Street players. The survey interviewed fund managers with $534 billion in assets under management. They found that institutions were increasingly trading in Bitcoin. Only the dollar and tech stocks saw more trades.

report from Fidelity Investments also revealed that a third of institutional investors now own crypto assets. This increased enthusiasm from investors means asset custodians need to ramp up their security infrastructure to protect against hacks and other mishaps. In a report, auditing giant KPMG explained that custodians’ top action will be to enable next-generation compliance and security measures.

The company recommends incorporating leading cryptographic techniques like sharding, multi-signature wallets, and multi-party computation. Essentially, cryptocurrency security will require input from both hardware and software solutions.

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Author: Jimmy Aki

Celo Goes Vertical with Crypto Exchange Binance Listing Against BTC & USDT

Celo Goes Vertical with Crypto Exchange Binance Listing Against BTC & USDT

The leading spot cryptocurrency exchange Binance has listed a new token Celo (CELO).

The trading for two pairs CELO/BTC and CELO/USDT will be opened on Jan. 5, at 8:30 AM (UTC).

In response to the news, the digital asset went vertical.

With more than 185% gains following the listing, Celo went on to see $4.18. As of writing, CELO was trading at $2.78 CELO 82.43% Celo / USD CELOUSD $ 2.73
$2.25 82.43%
Volume 190.92 m Change $2.25 Open $2.73 Circulating 124.45 m Market Cap 339.95 m
8 h Celo Goes Vertical with Crypto Exchange Binance Listing Against BTC & USDT
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The cryptocurrency has a market cap of $317 million and traded $68.97 million in ‘real’ volume in the last 24 hours.

The open source platform supports the development of decentralized applications and smart contracts and further aims to address the barrier to digital assets adoption by using email addresses and phone numbers as public keys.

The project has released Celo Wallet, a social-payments system centered around mobile phones.

Besides its native governance token CELO that is used to pay for on-chain transactions, it has also launched the stablecoin Celo Dollars (cUSD).

Celo is now planning to support multiple stable assets starting with cEUR, an addition which it says “is the first step towards an ecosystem on CeloOrg that hosts a family of stabilized value assets.”

“We’re building a more inclusive financial system, where value can be transferred in faster, more secure and at a lower cost manner, and requires fewer intermediaries than traditional bank wires,” said the team recently on the occasion of the inaugural review of the World Economic Forum’s (WEF) crypto working group that listed Celo besides Bitcoin (BTC), Ethereum (ETH), XRP, Tezos (XTZ), Zcash (ZEC), Filecoin (FIL), and Arweave (AR).

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Author: AnTy

SEC vs Ripple Pretrial Conference Set for Feb; Majority of Customers & XRP Volume Not in the US

Ripple says the action against it is “an attack on the entire crypto industry” and the lawsuit has “affected countless innocent XRP retail holders” that have no connection with the company.

The list of crypto service providers announcing no more support for XRP in light of the SEC suing Ripple and its top two executives now include Coinbase, Bittrex, OKCoin, Crypto.Com, Bitstamp, OSL, Beaxy, Swipe, CrossTower, Stex, Ziglu, Eobot, Sarson Funds, Jump Trading, Galaxy, B2C2, Bitwise, 21Shares, Bitcoin Suisse, Wirex, Simplex, and Grayscale.

An Indonesia-based exchange is also informing its customers of the risk of XRP delisting “in connection with the United States Securities and Exchange Commission (SEC) lawsuit against Ripple Labs, Inc which was deemed to have violated the regulations regarding securities.”

In response to market-wide delisting, Ripple published a statement where it says the “majority of our customers aren’t in the U.S. and overall XRP volume is largely traded outside of the U.S.”

While Ripple will continue to operate and support all products and customers in the U.S. there are “clear rules of the road for using XRP in the UK, Japan, Switzerland, and Singapore,” says the San Francisco-based company.

The company further reiterated that the SEC action against Ripple is “an attack on the entire crypto industry here in the United States.”

This lawsuit has “already affected countless innocent XRP retail holders with no connection to Ripple” and muddled the waters for traders, exchanges, and market makers said the fintech company adding that they will defend themselves and get clarity for the US crypto industry.

Meanwhile, the initial pretrial conference of SEC vs Ripple Labs Inc. is set for February 22nd, 2021.

“The point of this conference is to determine if there is a hope of settling and discovery dates,” said Jesse Hynes, an NJ Attorney.

In this process, the parties will basically learn everything they can about the other side’s facts and get to request documents and take depositions (interviews). “Judge Torres generally sets a 120 day period for fact discovery (which may be shortened if there are exigent circumstances),” said Hynes adding from there, another 45 days are allowed for Expert discovery.

It is after the final pretrial submission date, which is 30 days after, that the trial is set. As such, if case this goes to trial, at best the market is looking at September 5, 2021, “but that is unlikely” because “there are always delays and consents to push back dates and extend discovery.”

So, it will be a long battle that could take years to come to a result. Meanwhile, XRP price is suffering, having fallen to levels not seen since 2017, currently trading around $0.20.

In the meantime, XRP enthusiasts have launched a petition “Granting Ripples (XRP) token as a non security by the SEC” on Change.org. So far, the petition has only got 132 signatures.

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Author: AnTy

French Ministry of Finance Targets Strict KYC Rules For Crypto Transactions

France is strengthening its fight against anonymity in crypto transactions, Bruno Le Maire, French Minister of Finance and Economics.

In a full statement sent to the Council of Ministers by Bruno Le Maire, Oliver Dussopt and Sebastien Lecornu propose stringent Know-Your-Customer (KYC) laws to govern crypto transactions. The report further calls for tough measures against anonymous accounts on any virtual asset service provider (VASP).

“We presented to the Council of Ministers this morning an order making it possible to strengthen the fight against the anonymity of crypto-asset transactions,” Le Maire wrote on Twitter on the statement on strict KYC laws on crypto.

The new rules, if implemented, are set to completely change the anonymous crypto transactions in France while forcing VASPs to check their customers’ identities, verifying crypto accounts, and reporting any malicious activities on their platform.

The new KYC requirements, first reported on TheBlock this Tuesday, aimed at curbing terrorism funding through crypto, Simon Polrot, president of French crypto association ADAN confirmed. Following the recent terrorist attacks in France, the police arrested 30 people connected with sending funding to extremists in Turkey and Syria using cryptocurrency.

This led the government to call for stronger rules to regulate anonymity in the crypto space and check user profiles sending money through France. Le Maire has been vocal on the need to “strengthen the control of funding,” given the challenges that “cryptocurrency transactions cause in terrorism financing.”

This seems to be the first wave of heavy regulation set to come across France and Europe to keep crypto-to-fiat and crypto-to-crypto transactions known. The statement states the government is very aware of the “importance of the blockchain systems” in the country’s economy. Yet, a clear policy to fight terrorism must be found, starting with crypto.

Once the Council of ministers passes the decree, it becomes law in France, forcing VASPs to collect two government identification documents for any transaction conducted on their exchange. This sets harsher laws for crypto under the jurisdiction introducing KYC for crypto-to-crypto transactions too.

The deputy governor of the Bank of France, Denis Beau, recently asked for a more global approach to regulating cryptocurrencies. While he targeted Facebook’s Libra token, the main motive behind his talk was a call for banks and regulated financial institutions to start experimenting and developing their own regulated digital assets.

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Author: Lujan Odera

ErisX Launches Cash-Settled Contracts to Help Limit Investors Exposure to Market Volatility

The cryptocurrency derivatives platform ErisX has now introduced cash-settled bounded futures to protect against market volatility and enable short positions in the crypto market.

Chief Executive Officer of ErisX Thomas Chippas said the firm wants to encourage traders interested in trading spot Bitcoin. By adding physically settled futures to the platform, traders will protect the futures clearinghouse and futures exchange.

Unlike physically settled contracts, the nature of cash-settled contracts means they do not need Bitcoin delivery. This enables investors to still profit from Bitcoin, even when they don’t have enough to invest heavily.

Chippas reiterated that the only way investors and traders will be drawn to physically traded futures is when exchanges start offering them on margin. He further revealed that ErisX has reached out to the U.S. Commodities Futures Trading Commission (CFTC) to enable the exchange to provide margined accounts for physically settled futures.

Meanwhile, the launch of cash-settled bounded futures, according to Chippas, will offer both lower and upper bonds on losses and gains, which protects investors from high volatility in the market.

Since 2017, exchanges have been offering cash-settled futures in the U.S. Cboe, and CME rolled out their products the same year, although the former stopped offering Bitcoin futures last year.

Traders can gain more crypto exposure through the platform.

ErisX gained approval from CFTC to offer additional trading services on its platform.

There is a minimum potential risk of trading cash-settled contracts, and it requires less collateral than other contracts.

Bounded Futures also protect holders against volatility in the market, as it enables short positions in the market. Traders can quickly cash out in the market when they discover that the trade is going against them.

The contracts are entered and settled in cash, enabling customers to gain more crypto exposure, even those who may have restricted access in the market.

He added that the bounded funds would offer traders the chance to profit even from a volatile market by allowing cost-efficient strategies. As a result, they manage their risks effectively and still reap good rewards from their investments.

“These contracts are one initiative among many that we have been working on to simplify access to the crypto markets,” Chippas said, pointing out that the goal of the exchange is to make trading simpler for traders.

Offering lesser trading risks

Another interesting feature is the bringing of all options on a single platform for traders. As it stands, ErisX offers traders the right access to crypto markets while maintaining performance and security. It’s currently the only US-based exchange that allows customers to trade regulated and spot futures on a single platform.

The exchange also has a reward or bonus policy where new clients are rewarded with a $50 token for their next transaction after completing signup and making their first transaction.

The exchange says it’s in the company’s goal and interest to continue offering maximum security and protection of traders’ funds even as they take advantage of the market volatility.

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Author: Ali Raza

Binance Files a Defamation Lawsuit Against Forbes to ‘Protect its Hard-Earned Reputation’

The leading spot cryptocurrency exchange Binance has filed a defamation suit against Forbes and its two writers for publishing a story —“Leaked ‘Tai Chi’ Document Reveals Binance’s Elaborate Scheme To Evade Bitcoin Regulators” — last month.

The lawsuit mentions Binance as “a limited company organized under the laws of the Cayman Islands,” which is in contrast with CZ’s comments on the company not having a physical entity rather being decentralized, just like Bitcoin.

Filed in US District Court in the District of New Jersey, the complaint says the article “contains numerous false, misleading and defamatory statements about Binance.”

Forbes staff writer Michael del Castillo, who wrote the article, and Jason Brett, who contributed to it, are named alongside Forbes in the lawsuit.

According to the lawsuit, the false public statements and innuendo by the defendants that the exchange seeks to evade regulators and is engaged in money laundering are “highly damaging to Binance.”

Before filing the lawsuit, Binance asked the Defendants to “remove, retract, and apologize” for the false statements. Still, Forbes’ refusal has led the exchange to take this step to,

“Protect its hard-earned reputation and business, which has been severely damaged by Defendants’ false and defamatory statements and wrongful conduct.”

Binance, whose CEO has previously said they would sue the media publication The Block, has hired Charles Harder as one of the attorneys. Harder represented Hulk Hogan in a privacy invasion against Gawker Media and won the wrestler a $31 million settlement leading Gawker to file for bankruptcy. Bitcoin proponent Andreas Antopolous believes Binance is unlikely to win it as,

“The bar for defamation in the US is, rightly, exceptionally high. There has to be malice and statements of fact, not opinion.”

“In my opinion, this will fail, quickly, and Binance will probably end up paying the court costs too.”

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Author: AnTy

Billionaire ‘Bond King’ Jeffrey Gundlach Calls Bitcoin a Good Hedge Against Inflation Risk

Investors should be protecting against inflation, and Bitcoin and gold are a good hedge against that risk, said Jeffrey Gundlach, the billionaire chief executive officer of DoubleLine investment firm, in a webcast hosted by Rosenberg Research on Monday.

He also said that he is bearish on long-dated bonds during the webinar, like the 30-year Treasury. But in a deflationary environment, he still thinks, “you’re supposed to own some” to hedge against the risk of deflation. And some cash too.

Gundlach doesn’t have any love lost for Bitcoin even still, and he remains a proponent of the yellow metal, the traditional store of value, as he thinks gold is a good holding for the tail risk down the road, which according to him, will go up very substantially over time.

Previously he had said that he has “no interest in this type of maniacal type of trading market,” in reference to crypto.

Although the bond king did say in January this year that bitcoin will reach $15,000 in 2020, “it’s just about time for the dollar to weaken,” last month in an interview with RealVision, he said he doesn’t believe in the leading digital currency, calling it a “lie.”

“I don’t believe in bitcoin. I think that it’s a lie. I think that it’s very tracked, traceable. I don’t think it’s anonymous,” said Gundlach to add later that he was “not at all a bitcoin hater.”

On Monday, besides Gundlach, Chris Zarou, founder and CEO of Visionary Music Group, also publicly announced his support for Bitcoin as he said, “I’m irresponsibly long Bitcoin.”

As Bitcoin’s price enjoys a rally in 2020, recently hitting a 34-months high and currently up 86% YTD as it trades around $13,740, the digital currency is attracting a lot of attention from everywhere; corporates, mainstream media, and potential investors.

Also Read: CEO Michael Saylor Personally HODLs 17,732 BTC ($235M), While MicroStrategy Plans to Buy More

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Author: AnTy

Bitstamp Rolls Out New Crime Insurance Policy to Protect Crypto Held on the Exchange

Bitstamp, one of the leading crypto exchanges based in Europe, has introduced a new insurance policy against online crypto thefts and other crimes for digital assets held online.

The insurance policy comes in the wake of several exchange hacks leading to the theft of millions worth of digital assets. Most of these exchanges fail to ensure the proper refurbishment for the loss incurred by the exchange users. Thus, this insurance policy initiative by the Bitstamp exchange could prove to be a great attraction for customers.

Paragon International Insurance Brokers would offer Bitstamp’s new insurance policy in association with Woodruff-Sawyer. The insurance policy would be applicable for several digital assets like bitcoin and other similar crypto-assets.

The policy would cover several crimes such as online theft, hack, employee theft, loss of assets while under the custody of the exchange, loss in transit, loss caused by computer fraud, and losses related to legal fees and expenses.

Bitstamp revealed that 98% of all the digital assets under its custody are held offline and are protected and covered by the crypto custodian BitGo. Thus, the current insurance policy would focus on assets held online, even though it meant covering both online and offline.

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Author: James W