2 Months Ago

San Fran based 1confirmation are looking to raise $60m having raised $27m in December 2017. 

One of the first fund’s investments was Coinbase which made $1.3billion in 2018 and now has a valuation of over $8billion proving not all Digital assets had a bad 2018!

#FrontierInsights
Cryptocurrency
Digital Assets
https://www.newsbtc.com/2019/01/18/crypto-ventu...coin-rout/
China for a number of years has been responsible for over 50% of all patents on Blockchain technology while in 2017 have banned ICOs and Cryptocurrency trading in China.

This led to some exchanges basing themselves in Hong Kong where they have seen a huge increase in trading activity. China has a significant share of now has blockchain-based start-ups, miners, and crypto-mining farms globally.

This interest in blockchain was exemplified by the launch of a “government-backed Xiong’An Global BlockchainInnovation Fund offering $1.6 billion (10 billion yuan) to Chinese blockchain start-ups”. So while from outside of China it appears it seems the country is anti the evidence appears that there is considerable interest in the technology and its disruptive impact which may explain why the Chinese government wishes to keep control as much as possible over its development.


#FrontierInsights
Blockchain
Finance
Digital Assets
https://blokt.com/news/chinas-increasing-stake-in-crypto
Swiss private bank Falcon have are now offering the custody of certain Digital Assets and for clients to swap their holdings with each other.

The ability to for clients, who hold Digital Assets to trade directly with each other without the need to use an exchange is a potential threat for Digital exchanges but is another example of how Blockchain technology is able to disintermediate. Falcon can now allow private and institutions to transfer cryptocurrencies with each other as well as convert into fiat as well as offer.

#FrontierInsights
Banking
Digital Assets
https://www.globenewswire.com/news-release/2019...ncies.html
Cryptocurrency detractors claimed it would be impossible to handle the volume of Visa or MasterCard. 

Lightning Network is disproving them, it is a matter of when not if Digital Assets will significantly challenge fiat currencies! With transactions costing pennies or less and to be able to use your phone, Lightning completely changes the way money is moved. If banks aren’t paying attention yet, they will be when they look at Lightning payments and realise they are likely to be disrupted!

#FrontierInsights
Cryptocurrency
Finance
Digital Assets
https://ethereumworldnews.com/lightning-network...of-600btc/
The recent FCA consultation paper has created a broad consensus that the FCA is being pragmatic about Cryptos and it is encouraging that the FCA and the Treasury are engaged to bring clarity to the market.

This ought to encourage further development of the infrastructure and so enable institutions to further embrace Digital Assets and in time retail investors, provided there are adequate risk controls and standards in place.

#FrontierInsights
Cryptocurrency
Finance
Digital Assets
https://www.the-blockchain.com/2019/01/28/uks-f...direction/

Last Wednesday

In the USA, the Securities Exchange Commission (SEC) has released guidance on the issuing of Digital Assets and the way these assets are treated.

The inference is that if certain Digital Assets comply with its direction, then no action will be taken by the SEC, but each company that has, or intends, to create a Digital Asset will be reviewed on a case by case basis.

The guidance, which is called ‘Framework for Investment Contract Analysis of Digital Assets’ attempts to clarify whether a Digital Asset will be treated by the SEC as a security, and therefore will be subject to federal securities laws. The guidelines explain how the Howey Test may be used in connection to Digital Assets, and in particular to Initial Coin Offerings (ICOs).

The SEC outlines some examples, which create the impression that many ICOs launched previously may have breached SEC regulations, as they did not register with the SEC.

Some ICOs may have sold tokens that could be classified, under existing federal legislation, as an investment contract.

However, Bitcoin is not in the SEC’s spotlight, as it has been created in a decentralised manner. Which may help explain why Bitcoin has performed so well this week.

#FrontierInsights
Information Security
Regulations
Digital Assets
https://cryptonomist.ch/en/2019/04/03/sec-crypt...-guidance/
Stated in a recent article, Hong Kong forbids Security Token Offerings (STOs).

However, if you read the article, it also goes on to say that if you have the correct regulatory licences, you can sell STOs. STOs are now widely accepted as being seen and treated by regulators as a security, in the same way as buying a share in a company, like Apple or BMW, is processed. It is not illegal to sell these shares to raise capital, but the company, i.e. Apple or BMW as well as its corporate broker, need to follow the correct regulations in each jurisdiction around the world.

The reason behind treating STOs as securities are because they typically are backed by real assets such as property, commodities, bonds or indeed shares in private or publicly quoted companies. Due to the need to be regulated, STOs costs to raise capital are higher than Initial Coin Offerings (ICOs). Different regulators globally have taken different stances to ICOs; several of them saying that regulation of ICOs is not the same as those used to regulate the buying and selling of cars and houses. While some countries have banned Digital Assets, others have passed legislation to encourage the issuance of these assets.

PWC’s 4th report on ICO/STO looked at global trends, the amount of money raised and how legislation is evolving. One of the trends which PWC highlighted is “Asset tokenisation, i.e., the conversion of real-world assets to the Blockchain, is a dominant trend in 2019”. As we see greater clarity from regulators, we are more likely to see increased use of Digital Assets by institutions. If this creates more liquidity and the ability to trade 24/7, many assets, restricted to standard trading hours today, could result in Digital Assets being a compelling alternative and potentially may reduce asset price volatility.

#FrontierInsights
Token Offerings
Digital Assets
https://www.pwc.ch/en/publications/2019/ch-2019...1-2019.pdf

2 Months Ago

NASDAQ is the worlds 2nd biggest stock exchange developed a range of surveillance technology to ensure that good market practices are upheld and regulators and traders can have confidence in prices and general trading.

Such monitoring services are now being deployed by at least seven Crypto exchanges and one suspects many regulators will want to question what systems other Crypto exchanges have in place similar to what NASDAQ offers. Such surveillance systems are further signs of Digital Assets maturing and embracing the infrastructure required so that governments, regulators and traditional investors will draw comfort and be more engaged in this new asset class.

#FrontierInsights
Crypto
Regulators
Digital Assets
https://www.financemagnates.com/cryptocurrency/...ance-tech/
There are many projects being implemented using Blockchain technology.

The creation of tokens, a new asset class, allows tokens, backed by equities, bonds, property, FX, commodities, etc. to be offered and traded potentially 24/7 in a digital fashion enabling asset managers to offer new types of funds. To date, the focus has been more about how technology is being used to reduce the onboarding costs of KYC and AML. Firms like Coinfirm and Blockpass can help with individuals, and if you are when dealing with corporates that require real-time ongoing KYC monitoring the Kompany are able to help. Blockchain technology can help to solve the problems of dispute resolution and improve the time it takes to solve discrepancies. The consensus-based nature of the technology means that updates cannot occur to asset records without agreement from all relevant parties.

Digital assets such as Security Tokens will also allow preauthorization checks before a trade is executed and even enable dividends and rental income on property funds to be paid based on the number of MINUTES an investor as held the assets. Both of these are impossible in today’s analog markets!


#FrontierInsights
Asset Management
Blockchain
Digital Assets
https://businessblockchainhq.com/business-block...-industry/

A Month Ago

KT Corporation which is South Korea’s largest telecoms company is set to launch a Cryptocurrency which will be called the K-Token and initially will be rolled out as a pilot project in a city called GIMPO. 

The intention is that K-Token will be used in shops for transaction and will enable the funds to be converted into fiat and transferred to one bank account without incurring fees using QR codes. We are seeing more and more examples of organizations using Digital assets like the K- Token powered by Blockchain technology entering everyday lives.   like this are a long way from the volatile initial Crypos like Bitcoin and as importantly will be much more user-friendly to use, thus addressing two key barriers to more wide-scale adoption of Digital Assets. K-Token is an interesting experiment which if successful could be copied by towns and cities globally who want to build local communities using Digital Assets for commerce.

#FrontierInsights
Crypto
Telecommunications
Digital Assets
https://www.dcforecasts.com/south-korean-teleco...ocurrency/
Global Blockchain Business Council (GBBC), found 19% of the institutions they interviewed claim they will be investing in Digital Assets by 2021. 

Sandra Ro, CEO of the GBBC, said that “by 2027, crypto and Digital Assets would consist of at least 10 percent of the global GDP”. Interestingly 40% of companies surveyed consider the invention of blockchain technology as the most important technological innovation since the invention of the internet. Although it also discovered over 63% of executives believe that a lack of understanding of what blockchain technology can offer is THE feature holding back wider adoption.

#FrontierInsights
Blockchain
Regulatory
Digital Assets
https://uploads-ssl.webflow.com/596d1089592fec0...%20(1).pdf
Mizuho Bank who are part of Mizuho Financial Group with 30,000 employees and $1.8 trillion of assets is following Goldman Sachs and JP Morgan and launching a Stablecoin linked to the Japanese Yes in March 2019.


Mizuho will be launching the J-Coin in conjunction with 60 other Japanese institutions and say there will be no transaction charges between the banks and the J- Coin wallets. It plans to charge merchants/shops much less than the 2% to 5% transaction fees that credit cards currently charge in order to offer a competitive advantage and gain traction.

The Digital Asset market in Japan is well established with e-commerce giant
Rakuten, Japan’s equivalent of Amazon, and Line, a messaging App like WhatsApp, having launched their own Digital Assets already.

#FrontierInsights
Banking
Bitcoin
Digital Assets
https://www.fxstreet.com/cryptocurrencies/news/...1902211402
ICOs are still being used as a method to fund small businesses as demonstrated by Fetch.AI who attracted over 19,860 people register to buy and successfully raised $6million from 2,758 investors in 10 seconds.

Fetch.AI based in Cambridge in UK said they were “aiming to get as many people involved as possible so they limited the maximum number of tokens one could buy to only $3,000”. It is likely we will see a lot more firms using Digital Assets to raise relatively small amounts of capital; from platforms like Binance and Token Market

#FrontierInsights
Artificial Intelligence
ICO
Digital Assets
https://cryptonomist.ch/en/2019/02/15/binance-l...oken-sale/
Julius Baer with $382 Billion under management plans to offer access to digital assets through a partnership with Swiss start-up SEBA Crypto in the latest move into cryptocurrencies by a Swiss private bank.

Julius Baer markets head Peter Gerlach said, “We are convinced that digital assets will become a legitimate sustainable asset class of an investor’s portfolio,”

This announcement is just another sign of traditional banks offering Digital asset services as their clients are asking how they can get involved in this sector, so helping this new asset class to be more widely accepted. It follows the announcement that of the JPMorgan Coin and  Fidelity Investment and Goldman Sachs both offering Crypto custody services to its clients and no doubt we will see more institutions getting involved…

#FrontierInsights
Banking
Cryptocurrency
Digital Assets
https://www.ccn.com/major-swiss-bank-julius-baer-crypto
Signature bank of New York has announced that it is now offering bank accounts for businesses based in Bermuda that deal in Digital Assets.

There are believed to be over 60 companies that initially this will be of great assistance to, as despite the Bermuda government changing it’s law no locally based bank offer accounts in the Crypto sector. However, Signature bank claims that they are signing up companies that are also not involved with Cryptos.

The lack of banking facilities is a major hurdle facing businesses that deal in Digital Assets globally as it is extremely difficult to get a bank account in many jurisdictions around the world.In the UK Clearbank  which is the first bank in over 250 years to be granted clearing bank status, is one of the is one of the few banks to offer bank accounts to firms engaged in Digital Assets but the company needs to be FCA regulated or in the process of applying to the FCA to be accepted by Clearbank.

#FrontierInsights
Banking
Cryptocurrency
Digital Assets
https://coinfomania.com/signature-bank-services...n-bermuda/
Fusang in Malaysia is the first exchange in Asia to get a license to operate a Digital Assets securities exchange.

The Asian securities exchange will promote tokenization as an option for traditional companies holding real assets, while also simplifying trading of digital securities, Crypto, and Fiat currencies on a single platform. This exchange follows on the heels of Fusang group having launched an institutional managers custody service for Crypto assets last year.

Interestingly, we are seeing Asia being more open and embracing Digital Assets compared to Europe and USA as Thailand are expected to be launching a Digital Asset exchange in 2019.


#FrontierInsights
Security Token
Digital Assets
https://bitcoinexchangeguide.com/malaysia-welco...-platform/
San Francisco based Forte has just been given $100 million by Ripple to invest in Blockchain gaming companies.

Gaming is seen as an attractive sector that can use Blockchain and Digital Assets. It is a $140Billion industry and growing fast.

Chinese company Tencent have been active buyers of online gaming companies, so offers an exit to many emerging firms in the gaming sector according to UBS. China looks to be well positioned as it expects its gaming industry to grow to three times its current size by 2030. Tencent distributes some of the most played games in the industry and is the largest video game company in the world based on game sales. In 2018 over $1.3billion was invested into Blockchain projects from Venture capitalists. Considerably more than in 2017.

This trend is continuing according to Tim Bird, corporate partner at lawyers Field Fisher, who claims that “Blockchain is still one of the Top 5 sectors VCs are investing in at the beginning of 2019”.

Meanwhile, we are seeing Initial Coin Offerings (ICOs) and Security Token Offering (STOs) being used to help finance Blockchain powered businesses which, on the whole, are far better structured and thought through propositions compared to those seem a year ago.

#FrontierInsights
Capital Markets
Digital Assets
https://www.growthbusiness.co.uk/top-5-sectors-...9-2556086/
The $800 Billion fund manager company Invesco has launched an Exchange Traded Fund (ETF) on the London Stock exchange that will be investing in 48 different companies that have exposure to Blockchain technology.

The EFT will be investing in business such as microchip manufacturers, financial services companies, and IT firms that are using Blockchain technology. While the EFT will not be investing in actual Cryptocurrencies right now, it will have exposure to organizations that are building the infrastructure that Digital Assets require to gain wider adoption. While Invesco’s EFT will not be investing in Cryptos to trade Digital Assets, it is another sign of the importance that Blockchain is beginning to have on institutional investors.

As fund managers gain a better understanding of Blockchain and its ability to improve efficiency and profitability for companies, we expect to see more money finding its way into Digital Assets as the old barriers preventing asset managers buying into Digital Assets i.e. banking facilities, Professional Indemnity Insurance, independent custody services or regulated exchanges, are now being removed.

The infrastructure for fund managers is broadly in place. This is why we are now seeing more Security Tokens being launched and no doubt we will soon see new funds launched to invest in this NEW asset class.

#FrontierInsights
Blockchain
Cryptocurrency
Digital Assets
https://www.coindesk.com/a-blockchain-etf-is-la...ange-today

4 Weeks Ago

They say ‘there’s nothing new under the sun’... We’ve had gold-backed currencies for thousands of years.

The UK’s Royal Mint itself, a thousand years old, was by far first out of the blocks in the modern, digital, era, until RMG (Royal Mint Gold), until it was ‘paused’ at the last minute. This was followed in May 2017 by a firm in Dubai aiming to sell 12 million coins worth over $550million. However, Paxos, who claim to be the first new trust company in America created since the 2008 financial crisis, raised $65million in May 2017 and now run the fourth largest Stablecoin by market capitalization worth $113m.

Paxos is now using their experience to launch a Stablecoin, later this year, which will be backed by gold deposits held in a vault - allowing traders the ability to trade gold 24/7, currently not possible. Paxos also plans to expand the use of its service to tokenise and asset type, including stocks and bonds “to move assets and settle transactions more quickly and securely and with lower fees”.

In the same way, we have recently seen BitBond in German tokenise bonds and Nivaura and GlobalCap in London.

#FrontierInsights
Bitcoin
Digital Assets
http://fortune.com/2019/03/11/gold-cryptocurren...lockchain/
It was only at the beginning of March we bought your attention to a New York-based company called BlockFi who are offering 6.25% a year if you deposit your Bitcoins or Ether with them.

Before you ask who actually has control of the Cryptos, well it is Gemini Trust, founded by Cameron and Tyler Winklevoss who act as custodians, thus BlockFi does not have access.

While 6.25% looks attractive, you may want to read these thoughts on
Twitter who point out the potential concerns and risks you could be exposing yourself to...


There is an old expression - all that glitters is not gold. Innovation in the sector is welcomed, but Caveat Emptor – Buyer beware.


#FrontierInsights
Bitcoin
Cryptocurrency
Digital Assets
https://www.cryptonewsz.com/blockfi-booms-as-in...eks/12075/
This was the message reported from China this week as they confirmed that they are cracking down on organisations raising capital via Initial Coin Offerings (ICOs) and Security Token Offerings (STOs).

It was only in December 2018 that Beijing’s Municipal Bureau of Finance said “The ICO (initial coin offering) model is getting left behind for a new concept called STO. I want to issue a warning to anyone considering running an STO in Beijing,” Xuewen said. “Don’t do it in Beijing – it is illegal. You can only engage in such activities with the approval from the government.” Government approval, what does this mean?

This is at odds with recent promotion of a
book on Crypto assets on a Chinese state-run TV last month that reportedly has an audience of one billion. The presenters telling viewers that Crypto assets could be one of the best investments they could ever make.

It was only in December 2018 that there were rumours that the People’s Bank of China was looking at ways to create its own cryptocurrency. It apparently thought this type of digital asset could replace Bitcoin and perhaps even the U.S. Dollar.
Given these conflicting messages, we spoke to GlenBit in Edinburgh that owns a Digital Asset platform powered by Japanese technology, as they have close contacts in China. GlenBit looked at various Chinese government websites and national publications and could find no mention of this ICO/STO ban. They did find an article on a well known Chinese website that follows Crypto news, called ‘Bi Hu’, which using Google translated this article https://bihu.com/article/1601678341 which said “After the ICO foam was broken, many countries began to ban ICO… Thus, a new form of new currency, STO, was born that will become the main mode to raise money for Chinese blockchain project”

Time will tell the actual stance the Chinese are taking…


#FrontierInsights
ICO
STO
Digital Assets
https://www.investinblockchain.com/china-says-i...ctivities/

3 Months Ago

Finally, HRMC has issued guidance on the taxation of Digital Assets for individuals and said that they will be issuing similar guidance for corporates very soon.

Basically, Digital Assets are liable to income tax, capital gains tax and even inheritance tax depending on the circumstances so really important that you keep good records of all your Crypto transactions...

#FrontierInsights
Cryptocurrency
Digital Assets
https://www.gov.uk/government/publications/tax-...ndividuals

3 Weeks Ago

America’s CFTC has been looking at regulation and the adoption of Digital Assets.

Significant as the International Settlement Derivatives Association (ISDA) has just published its Common Directive in an attempt to try and initiate an industry standard conventions on how derivatives are traded and processed.

The current system is manual intensive and the industry faces increasing regulatory costs. ISDA is looking for ways to introduce greater automation in the industry.

The derivatives market is said to be worth as much as ten times the world GDP, being valued at over $1.2 Quadrillion and was considered to be responsible for the onset of the 2008 financial crisis. If ISDA is successful with its Common Directive, it could make Smart Contracts much easier implement leading to much greater use of Blockchain technology in the derivatives market.

Regulators should welcome the greater transparency and traceability that this could bring. Paradoxically there are concerns that public Blockchains could enable “bad actors” to manipulate or falsify transactions when this is feasible only in DLP / permissioned chains.

CFTC in the USA, like a number of other regulators elsewhere , is trading a fine line as it offers guidance as to how to embrace Blockchain technology and Digital assets. If they are too draconian countries more receptive to the use of Blockchain technology will have a competitive advantage resulting in a loss of financial services revenue to laggards.

#FrontierInsights
Blockchain
Digital Assets
https://cointelegraph.com/news/cftc-technology-...t-adoption