Coinbase Custody Becomes First Custodian With SOC 1 and SOC 2 Security Evaluations

The crypto custody subsidiary of major US-based crypto exchange Coinbase has managed to obtain 2 new security evaluations.

As per a press release from February 12, Coinbase Custody got a SOC 1 Type 2 and a SOC 2 Type 2 report from Grant Thornton, a major US-based accounting firm. This means Coinbase Custody is now able to prove that it complies with many of the security and reporting regulatory standards.

What Information Do SOC Reports Provide?

The Grant Thornton official website says that SOC reports provide information on how strong and present the financial, information and operational controls are in an organization. SOC 1 gives information related to the financial reporting of any organization and are intended for auditor-auditor communications.

On the other hand, SOC 2 gives more information about availability, security, privacy, processing integrity and confidentiality. The Type 1 SOC 2 and SOC 2 reports describe the controls’ design, whereas Type 2 reports cover the effectiveness of controls for a testing time period of 6 months.

Coinbase Custody Will Renew Reports

Coinbase Custody has stated that it’s going to renew its reports. The news about the evaluations arrives soon after in January, Coinbase has a established an Ireland identity in order to make its cryptocurrency services available to European institutions. There are other crypto services providers that went to obtain SOC certificates. For example, at the end of January, US-based crypto custodian and exchange Gemini was granted the SOC 2 Type 2 evaluation by Deloitte.

What Does Cryptocurrency Custody Mean?

The greatest advantage of crypto assets is that they can be under independent custody. Institutional investors and financial markets need a higher level of security standards in order to achieve self-custody. Rohan Barde Hai, a researcher for Blockchain Zoo, explained in September last year how important custody solutions are for institutional investors. The more the crypto market is maturing, the more traditional institutions decide to join it.

For instance, after the new Anti-Money Laundering laws have been instated, 40 banks in Germany asked regulators to approve their digital asset custody services, which means the adoption of crypto is on the rise.

Read Original/a>
Author: Oana Ularu

“Bitcoin Is A Store of Value to Rival Gold in the Digital Age” – Coinbase

  • “Gold, and bitcoin, are safe havens from fiat currency devaluation,” says US-based crypto exchange Coinbase
  • Gold is a historic store of value because of its scarcity, just as scarce bitcoin with a special property is becoming one too

Bitcoin completed its first decade with a mind-boggling 9 million percent increase in value, becoming the best performing asset of the decade. Also, Bitcoin’s value in gold rose significantly amidst the heightened global economic uncertainty.

Leading crypto exchange Coinbase which is set to cross 1 billion BTC in its storage topping any other exchanges’ holding in its latest blog says,

“Gold, and bitcoin, are safe havens from fiat currency devaluation, which historically tends to be incited by surging government debt.”

Bitcoin Armed and Ready

Recently, Coinbase CEO Brian Armstrong also recommended people to “consider crypto” in response to CBO projecting US national debt to rise to 98% of GDB in the next 10 years.

Though today people still think of crypto as “funny money” and a speculative asset class, this perspective will flip that will have millennials seeing the government’s currency as “funny money” and crypto as the “real money” that people can’t tamper with, said Armstrong.

“Why put your livelihood into something that could be manipulated or devalued without your input,” he said last week.

Now, Coinbase is emphasizing on “Bitcoin is a store of value to rival gold in the digital age,” which is armed with technological advantages, accelerating development and maturing global market.

The peer-to-peer network already has several advantages over the precious metal in terms of scarcity, auditability, privacy, portability, divisibility, and low fees.

Bitcoin is scarce like gold and has a special property too

Unlike gold and bitcoin, fiat money doesn’t have a fixed supply. The US dollar has lost over 96% of value since 1913 when the Federal Reserve took over the US banking system. Fed also has the power to generate more money “to satisfy political goals” but

“printing money has a hidden cost for all citizens, as new supply dilutes the value of existing stock.”

During this time, however, the gold price has risen from about $20 to more than $1,500 today. This is because governments can’t simply produce more. The bullion comprises only 0.00000031% of the Earth’s crust and

“there is an inverse relationship between elemental scarcity and commodity value.”

But Bitcoin not only has this scarcity but has a special property as well — it can be transported over a communications channel.

Not to mention, with the upcoming halving the stock to flow of bitcoin (will double to 50 from current S2F50) is going to be closer to gold’s 62, which is higher than any other metal commodity and the flagship cryptocurrency is “set to soon follow.”

Due to its scarcity, gold is a historic store of value and now Bitcoin with its volatility dampening over the years and adoption rising is also becoming a new-age store of value.

Read Original/a>
Author: AnTy

Kraken Expands Its Reach By Acquiring Australian Crypto Exchange Bit Trade

Kraken, the US-based cryptocurrency exchange just completed its acquisition of Bit Trade, one of the first crypto exchanges in Australia.

A press release sent out by Kraken to news organizations on January 14th indicates that it just recently purchased Bit Trade. Bit Trade happens to be one of the oldest cryptocurrency exchanges in Australia, which was launched in 2013.

At the moment, it’s expected that the official Bit Trade website will still continue trading and operating in the same manner that it has since its inception. A Kraken company representative explained this development to Cointelegraph and went on to note that:

“In the short term, Bit Trade will continue under its current brand and operate business as usual. As part of the acquisition, we are pleased to welcome the Bit Trade team led by Jonathon Miller who will be Managing Director for Kraken in Australia.”

Bit Trade Acquisition by Kraken

By taking over Bit Trade, Kraken is repositioning itself to become the leading cryptocurrency solution in the Australian market. The press release by Kraken went on to state that this is an area of the world that has continued to show a lot of potential for growth and expansion.

Bit Trade’s new owners are looking to cater to both institutional and retail traders, even as they begin hosting trade liquidity that will be pegged on the AUD (Australian dollar). In addition, this new acquisition by Kraken has also helped to add on to Kraken’s OTC (over the counter) trading abilities.

Joining the Two Company Operations

This new development will eventually lead to the merging of the two company’s operations. Kraken went on to explain that harnessing the operation of its various exchanges means that its clients will now be provided with a more enhanced product.

The Bit Trade purchase also means that clients in the Australian market are now in a position to access the sizable OTC products being offered by Kraken. Kraken had in late December announced that it had taken over Circle’s OTC desk.

This came about as the latter chose to move its operations to USDC (stablecoin, USD coin).

Read Original/a>
Author: Daniel W

US-Based Crypto Exchange Kraken Sued by Disgruntled Employee After Being Fired

The US-based crypto exchange Kraken is getting sued by a former employee who says the company fired him because he questioned the business’s practices.

The case was filed on November 26 by Nathan Runyon, a veteran from the military who is also disabled. While Runyon wants damages for being harassed, discriminated and unfairly fired, he claimed Kraken doesn’t conduct business properly, which hasn’t been proved until now. He says he has been fired for asking questions while still working for the company.

Kraken Supposedly Asked Runyon to Pass Inaccurate Audit

Runyon worked for Kraken as a financial analyst. One of his allegations is that the company asked him to pass an audit based on inaccurate information. More than this, he says Kraken has illegally earned from the companies and nations on the Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons List. He has declared that he many times expressed his concerns regarding what’s happening, but no one took his opinions into consideration.

Runyon Asked to Reconcile Customer and Company’s Bank Balances

Working under Kaiser Ng, Runyon claims he was also asked to reconcile customer and operations account balances with the company’s balances from the bank, when he discovered the money in the bank accounts was less than should have been, at the level of millions of dollars. He says Ng was informed about the issue because Runyon thought there was embezzlement or a hack, but this got him removed from handling those accounts.

Kraken Asked to Rent a Room in Runyon’s House

What’s strange about Runyon’s declarations is that he claims Kraken pressured him to rent to the company a room in his home for the address, yet he never received any money for doing this. He thinks his contract was ended on August 1, 2019, because he discovered Kraken employees were being defrauded over stock options by Ng.

The blockchain journalist and author David Gerard has written in a blog post that he talked with Claire Cochran, Runyon’s attorney, about the case. Cochran said the plaintiff’s address figured as of Ng’s in the Kraken listing. Kraken didn’t want to make any comment when it comes to “pending legal matters”.

Read Original/a>
Author: Oana Ularu

South Korea’s Upbit Crypto Exchange Cancels Bittrex Orderbook Partnership

On Friday, SouthKorean crypto exchange announced that it had called off its partnership with the US-based exchange Bittrex. The recent news comes just days after the exchange announced it was restructuring its services. The exchange stated that it was reorganizing its Bitcoin, Ether as well as Tether markets.

According to Cointelegraph, in the last two years, Bittrex has permitted Upbit to offer a wide range of trading alternatives than other exchanges in South Korea. This announcement coincided with the end of the partnership and it seems that Upbit has decided not to renew the agreement. If the exchange fails to renew the Bittrex partnership, it is likely that it will halt support for various tokens.

Due to suspension of the partnership with Bittrex, Upbit says that while BTC, ETH as well as USDT trading peers shall continue to trade on the platform, there will be some changes. This will be on the trading pairs apart from KRW that does not depend on Bittrex.

Meanwhile, Upbit is expected to list Kakao’s Klaytn. The crypto was created by the Korean messaging giant using their blockchain platform Ground X. this is expected to be Upbit’s inaugural addition after calling off the Bittrex’s partnership.

Klaytn revealed in early September that the coin will be listed on Upbit Indonesia as well as Upbit Singapore before the month ends.

The new changes or reorganization comes just days after the exchange was pressured to delist all the privacy tokens by the South Korean government that said it was doing so to comply with FATF. The regulation also affected OKEx as well.

Recently, Upbit was featured as one of the best exchanges in a report released by Blockchain Transparency Institute.

The new developments comes as a blow to Bittrex which has been facing hard times of late. The exchange closed down its New York operations after it failed to obtain an operating licence. However, the exchange has been able to successfully deploy Chainalysis compliance solution and will be able to observe large volumes of crypto activities. This will help flag off high-risk transactions within the platform.

Read Original/a>
Author: Joseph Kibe