Coinbase CEO Brian Armstrong says “every institution is now starting to hold crypto,” emphasizing that “the asset class will be a standard part of every diversified portfolio.” Moreover, the executive noted that institutions will eventually be using crypto in other ways, such as “holding it on their balance sheet, paying their vendors, [and] doing payroll.” […]
Bitcoin News
Farmington Bank Faces Fed Wrath: Alameda-Backed Financial Institution Ordered to Shutdown
In a statement released August 17, 2023, Farmington State Bank, with an investment from Sam Bankman-Fried’s Alameda Research, consented to a cease and desist order from the U.S. Federal Reserve. Alameda invested .5 million into the bank’s coffers in January 2022. Government seizure documents from January 2023 indicate Bankman-Fried reportedly had million stashed in the bank.
Fed Puts Brakes on Alameda-Funded Farmington: Another Bank Bites the Dust
Farmington State Bank (Moonstone Bank) is complying with the U.S. central bank’s cease and desist order signed July 18, 2023. The Federal Reserve Board and Washington State Department of Financial Institutions (WDFI) issued the order against Farmington State Bank of Farmington, Washington, and its holding company, FBH Corporation of Baltimore, Maryland.
The regulators determined Farmington violated commitments to regulators by engaging in digital asset activities, such as stablecoin issuance, without necessary approvals. Farmington allegedly agreed to build infrastructure to facilitate a third-party’s stablecoin issuance in exchange for fees, began implementation and altered its business model without regulatory approval.
The order mandates Farmington cease unauthorized activities, halt dividends, maintain assets and avoid further actions without written consent. The bank also agreed to sell all loans and deposits and terminate operations. Farmington’s August 17 press release confirmed adherence to the Federal Reserve and WDFI order. Alameda Research funded the bank in January 2022.
Following the FTX and Alameda downfall, the bank acknowledged Alameda’s .5 million investment, describing the quantitative trading firm as a “passive investor.” In January 2023, federal prosecutors revealed the seizure of 7 million in assets from Bankman-Fried. While the majority (6 million) consisted of 56 million Robinhood shares, million was purportedly taken from Farmington, also known as Moonstone Bank.
Prosecutors noted at the time that it was believed the confiscated funds were misallocated FTX customer assets. Farmington is among numerous banks forced to wind down operations this year, curiously associated with FTX, Alameda, and Bankman-Fried in various capacities.
What do you think about the Fed shutting down Farmington State Bank? Share your thoughts and opinions about this subject in the comments section below.
Brazil Sees BRICS Bank as Alternative Financial Institution, President Lula Says
The government of Brazil views the development bank established by the BRICS bloc as an alternative to traditional financial institutions, the country’s head of state told African diplomats. President Lula da Silva also vowed that the bank will improve cooperation with its African counterpart.
Brazil Wants the New Development Bank Under BRICS to Strengthen as Financing Instrument
Authorities in Brasilia consider the New Development Bank (NDB), created by the BRICS nations (Brazil, Russia, India, China, and South Africa), as a promising alternative to traditional financial institutions, Brazilian President Luiz Inacio Lula da Silva was quoted as saying by the Tass news agency.
Lula made the statement during a meeting with ambassadors from African countries. “We want the BRICS bank to strengthen as an alternative instrument for financing, and we will reinforce our cooperation with the African Development Bank,” he emphasized.
Current international financial and banking institutions ignore the needs of developing nations and are not suitable for them, because many of those countries are being “strangled by overwhelming debt burdens,” he elaborated on Thursday.
The BRICS countries established the NDB, formerly called the BRICS Development Bank, after signing an agreement in Fortaleza, Brazil, in the summer of 2014, when Dilma Rousseff was President of Brazil. In March 2023, she was elected president of the bank.
The BRICS’ development bank funds infrastructure and sustainable development projects in the bloc’s member states and developing countries. In 2021, the NDB admitted Bangladesh, Egypt, the United Arab Emirates, and Uruguay to the scope of its activities.
Nearly 100 projects for almost billion have been approved by the bank since its launch in areas such as transport, water supply, clean energy, digital and social infrastructure, and urban construction, the report noted.
In April of this year, the Shanghai-headquartered bank announced it has issued its first “green” bonds in U.S. dollars in the amount of .25 billion. The proceeds from the placement will be used to finance or refinance eligible “green” projects in participating nations.
Do you think the role of the NDB will continue to expand in the coming years? Share your thoughts on subject in the comments section below.
Head of Venezuelan Crypto Watchdog Sunacrip Arrested on Alleged Corruption Charges; Institution to Face Restructuring
Joselit Ramirez, head of the Venezuelan cryptocurrency authority Sunacrip, was arrested on March 18, according to reports from local media. Ramirez, who led the institution from its creation in 2018, was arrested for being allegedly involved in corruption schemes, including the embezzlement of billion related to unregistered oil sales.
Sunacrip Boss Joselit Ramirez Arrested
Joselit Ramirez, head of the Venezuelan cryptocurrency authority Sunacrip, was arrested on March 18 on alleged corruption charges. According to reports from the local newspaper Ultimas Noticias, the arrest of Ramirez is part of a national special operation against corruption, that also encompassed the capture of more high-profile individuals, including Cristobal Cornielles, president of the judicial circuit of Caracas, and Pedro Hernandez, a city mayor.
While details of the investigation have not been disclosed, local outlets suggest that the arrest is linked to the disappearance of billion obtained from the sales of Venezuelan oil that did not enter the state accounts.
Sales of Venezuelan oil paid with crypto have been detected before by the U.S. government, which has PDVSA, the state oil company, as a sanctioned entity since January 2019. In October, two oil brokers were charged with brokering illicit oil deals for PDVSA, using cryptocurrencies and shell companies to avoid detection.
Ramirez, who led the institution from its inception back in 2018, also figures as one of the officials of the Venezuelan government charged by the U.S. Department of Justice on narco-terrorism and corruption charges on March 26, 2020. Venezuelan President Nicolas Maduro was also charged at the time.
Restructuring Commission Designated
As a result of the arrest, President Maduro signed an executive order that arranges the restructuring of Sunacrip and the removal of Ramirez. The measure, effective from March 17, will have a duration of six months and will be executed by a restructuring commission, that will examine the current status of the institution and propose changes to the rules and procedures to “contribute with the goals and objectives” of the country.
As part of this executive order, Maduro stated this measure was taken to “protect the Venezuelan people from the negative effects of the multiform aggression that is taking place against the country.” The restructuring commission will be presided over by Anabel Pereira Fernández and three main directors: Hector Obregon, Luis Perez, and Julio Mora. Also, another three substitute directors were also designated.
What do you think about the arrest of Sunacrip’s former head Joselit Ramirez and the upcoming restructuring of the institution? Tell us in the comments section below.
Saylor Sees Bitcoin Regulation as Greenlight For More Institution Inflows
MicroStrategy CEO Michael Saylor isn’t concerned with the prospect of stricter Bitcoin regulations. Instead, he sees impending future regulation, if any, as good for the industry in that it would greenlight more institutional inflows.
Saylors Says Regulation Will be Good For Bitcoin
In a Bloomberg interview, Saylor was asked if he has anxiety about holding Bitcoin, which can be used to evade censors, capital controls, and taxpayers. More so, the implications of this if regulators decide to step up with tougher regulations at some future point.
Saylor responded by saying companies must invest in assets to prosper and provide value to shareholders. He reiterated previous points on choosing the best investment(s) to realize this goal. And against a backdrop of available options, Saylor concluded that Bitcoin is the highest quality investment people and institutions can buy.
“Our choices, if we wish to avoid insolvency, is you buy gold, you buy a portfolio of stocks, perhaps you go and buying a bunch of timberland, or oil contracts or some kind of commodity.
Companies have to become asset rich if they’re going to prosper and maintain shareholder value. So Bitcoin is the highest quality property that they can buy.”
What’s more, to answer the question, Saylor said that AML and KYC regulations are already in place to tackle regulators’ most pressing concerns. While he conceded that further regulatory refinements might come in the future, he sees this as positive in that institutions would have more confidence to invest in Bitcoin. This, he believes, will result in triggering greater inflows.
The regulatory environment is already pretty clear on this, I mean AML KYC regulations have been applied across all of these exchanges.
I think that there’s a little more parity and precision that will be delivered in the coming one to two years. I think that’s going to be the greenlight for institutions to invest 10x, 100x more into Bitcoin. So I think it’ll be good for the industry in general.
Regulators Must Walk a Fine Line
Regulators are tasked with protecting investors. But at the same time, over-regulation of cryptocurrency is likely to stifle a burgeoning market that’s still finding its feet.
Although Saylor isn’t concerned with regulation, Ripple CEO Brad Garlinghouse believes the U.S. Securities and Exchange Commission (SEC), through its lawsuit against Ripple, implied there is more going on behind the scenes.
Garlinghouse said the actions of the SEC are a deliberate attempt to stifle cryptocurrency innovation. Adding this is an issue every crypto project should be mindful of.
“The SEC is doing the opposite of “fostering innovation” here in the US. It’s not just XRP they’re attacking here.“
Even if Saylor is confident that regulators will continue to look somewhat favorably on Bitcoin, in the back of his mind must be the notion that anything can happen and that Garlinghouse may have a point.
2 of Russians Claim to Have Invested in Bitcoin to Date National Polling Institution
n Only 2 of Russians have invested in Bitcoin so far, according to a new poll by VTsIOM, the oldest polling institution in post-Soviet Russian
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Will Tron (TRX) Recover After Feb 28 Hard Fork? Justin Preparing for Institution Grade Investors
- Tron prices are stable
- Justin Sun announces a hard fork schedule for Feb 28
- Market participation level low as prices accumulate above 2.3 cents
Prices are stable, and in preparation for institutional grade investors, Justin Sun has announced a hard fork on Feb 28. Several features will be added, and that may be the launching ground for TRX prices to expand above 3.1 cents as buyers take charge.
Tron Price Analysis
Fundamentals
It’s a race, and as Ethereum prepares for a software upgrade to implement several EIPs, the co-founder of Tron, Justin Sun took to Twitter announcing Tron’s hard fork on Feb 28—a couple of hours after Ethereum upgrades.
A successful 3.5 hard fork will see Tron add four new improvements and a stand out is the “Multi-signature and Account management” feature specifically added for institutional grade investors expected to flow in via BitGo.
Sun in a Twitter post said “the Multi-sig, acct mng and custody are three major requirements from institutions. Recently we have received numerous demands from hedge funds, mainstream investors and financial institution.”
BitGo is based in Palo Alto California and offers custodial services for institutions. They will begin offering support for TRX later this year saying it was important as they are the “only institutional digital asset company with a full product offering, from high-volume wallet platform to regulated custody services.”
Candlestick Arrangements
Two days before the hard fork and Tron (TRX) prices are stable. Like other digital assets, TRX is under pressure. It could collapse if there is a mishap during or after the scheduled hard fork or if BTC prices continue to slide.
All the same, our stand is clear, and TRX is technically bullish as long as sellers fail to drive prices below the double bar bullish reversal pattern of Jan 20-21. What is clear is that TRX prices are consolidating and with caps at 2.3 cents and 3.1 cents, risk-off, aggressive type of traders should buy on every dip in lower time frames with the first target at 4 cents and later 6 cents.
If there is a spring and prices rally above Jan 27, bulls should aim at 6 cents. On the other hand, any drop below 2.1 cents or Jan 14 lows invalidates our short-term bullish outlook. As a result, this will release sellers aiming at 1.8 cents and even Dec 2018 lows.
Technical Indicators
Feb 24 volumes were high—37 million. As prices oscillate inside its high low, bulls should build momentum for a breakout above 3.1 cents. Accompanying this surge should be high volumes exceeding those of Feb 4—42 million. Before then, prices appear to be accumulating above 2.3 cents—the breakout level. This is allowing risk-off traders to fine-tune entries in lower time frames.
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Islamic Financial Institution Partners With Startup to Develop Interbank Blockchain Tools
n Islamic banks will gain their own suite of blockchain products in a bid to improve liquidity management with the Islamic Development Bank Groups new partnershipn
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WORLDCORE PAYMENT INSTITUTION ANNOUNCES ICO
Worldcore announces an Initial Coin Offering (ICO), as part of their wider expansion plans.The company envisions to become a worldwide reference for the financial tomorrow, by integrating its successful payment solution into the blockchain sector of economy. WRC token will become your pass to the new world. Worldcore ICO starts on October 14 of 2017. … Continue reading WORLDCORE PAYMENT INSTITUTION ANNOUNCES ICO
The post WORLDCORE PAYMENT INSTITUTION ANNOUNCES ICO appeared first on NEWSBTC.
WORLDCORE PAYMENT INSTITUTION ANNOUNCES ICO
Worldcore announces an Initial Coin Offering (ICO), as part of their wider expansion plans.The company envisions to become a worldwide reference for the financial tomorrow, by integrating its successful payment solution into the blockchain sector of economy. WRC token will become your pass to the new world. Worldcore ICO starts on October 14 of 2017. … Continue reading WORLDCORE PAYMENT INSTITUTION ANNOUNCES ICO
The post WORLDCORE PAYMENT INSTITUTION ANNOUNCES ICO appeared first on NEWSBTC.