BPSAA (Blockchain Privacy, Security Adoption Alliance) goes live assembling crypto gurus from multiple projects for the good of cryptomanity. BPSAA aims to bring collaboration through BPSAA verified projects in order to enhance Privacy, Security, Adoption for users in the crypto realm.
Projects in the Alliance:
Pirate Chain (Most Anonymous Crypto) https://bpsaa.vision/pirate-chain
Turtle Network (Interoperable DEX w/fiat) https://bpsaa.vision/turtlenetwork
Ether-1 (Decentralized Storage) https://bpsaa.vision/ether1
Sentinal (Decentralized VPN) https://bpsaa.vision/sentinel
Binance Responds to Allegations That Its U.S. Arm Is a Scheme to Avoid Regulators
In an Oct 29 article in Forbes, reporter Michael Del Castillo shared the details of a leaked slide deck outlining Binance’s operational plans for the United States. The article alleges that it planned to create a corporate structure designed to “intentionally deceive regulators and surreptitiously profit from crypto investors in the United States.” The presentation, […]
The post Binance Responds to Allegations That Its U.S. Arm Is a Scheme to Avoid Regulators appeared first on BeInCrypto.
In an Oct 29 article in Forbes, reporter Michael Del Castillo shared the details of a leaked slide deck outlining Binance’s operational plans for the United States.
The article alleges that it planned to create a corporate structure designed to “intentionally deceive regulators and surreptitiously profit from crypto investors in the United States.”
The presentation, dated from 2018 just before the launch of Binance.US, indicates that crypto’s leading exchange intended to set up a “Tai Chi entity” stateside to draw regulators’ attention while funneling profits to its parent company and not exposing it to enforcement.
As Del Castillo put it,
“while the then-unnamed entity set up operations in the United States to distract regulators with feigned interest in compliance, measures would be put in place to move revenue in the form of licensing fees and more to the parent company, Binance.”
Part of this strategy would reportedly be to teach users how to evade geographic restrictions while “technological workarounds were put in place.” The article made an immediate splash.
Binance’s CZ Responds
For his part, founder Changpeng “CZ,” Zhao quickly responded with a series of Twitter statements. He called the article FUD and said that the accusations in the report are incorrect:
“the document was not produced by a Binance employee (current or ex). Anyone can produce a strategy document, but it does not mean Binance follows them.”
He added, “Binance has always operated within the boundaries of the law, and Binance has very strong collaboration with many notable law enforcement agencies worldwide.”
The issue of whether a company employee produced the deck was further called into question by Del Castillo, who responded to CZ’s Twitter thread.
CZ’s rebuttal was followed by a video statement from Binance.US CEO Catherine Coley early the next day. Coley was unequivocal in her defense of the company:
“the notion that Binance.US would do anything to undermine the ability of anti-money laundering and US sanctions enforcement to detect illicit activity is patently absurd and directly counter to who we are as people.”
She highlighted a few “factual inaccuracies” in the article, including the fact that Binance.US is not a Binance Holdings subsidiary and has made no payments to the larger entity. Coley also noted that Binance.US had sacrificed growth and revenue in order to “do things right.”
News questioning the credibility of the world’s largest cryptocurrency exchange has, perhaps predictably, been unwelcome in crypto circles. Many dismissed the article as sensationalized journalism in search of clicks.
One Twitter user, who describes himself as a supplier of legalSec audits, summarized well:
“this is a good piece of journalism marred by bad spin. What is being described here is not a law evasion strategy but a plan to comply with U.S. laws in a maximally profitable way rather than to just exit the U.S. market completely — if this is ‘evasion,’ so is most legal structuring.”
Huawei’s new smartphone has a built in hardware wallet that supports China’s CBDC
According to reports, the Chinese technology giant, Huawei has launched a smartphone that has a built-in hardware wallet for China’s Central Bank Digital Currency (CBDC).
In a recent press conference, Yu Chengdong, Huawei’s CEO for the consumer business group, said that Mate 40 is the first smartphone that enables a hardware wallet for China’s digital yuan.
According to a Weibo post by Huawei, the Mate 40 will deliver hardware-level security with controllable anonymity for the digital yuan. As a physical DCEP wallet, it is also said to be capable of initiating transactions in offline environments.
It remains unclear at this stage whether users of the Mate 40 will be able to directly convert any bank savings into the physical digital yuan wallet.
However, Yu noted that the CBDC compatible wallet is a step towards the expansion in usage of the digital yuan on mobile devices.
It signed a cloud hosting deal with the People’s Bank of China earlier in the year, and it appears that it has managed to support the integration of a DCEP hardware wallet as well.
Feitian Technologies, Kelan Software, and Netac Technology are all known to have applied for patents in the hardware wallet space. Given the Chinese government’s ban on cryptocurrency, the support for a digital currency wallet was likely intended for DCEP.
At this point, Huawei is the only company that has made any announcement on this front, but more developments can be expected in the near future.
The Huawei Mate 40 was launched earlier today. The phone reportedly sold out within 28 seconds in China during pre-orders, after it was unveiled a week ago.
First Mover: Bitcoin Heads for 24% October Gain as US Election Countdown Begins
Bitcoin was lower around $13,400 though on track to gain 24% in October, an impressive performance since U.S. stocks declined 1.6% on the month and gold slid 0.5%.
“With the U.S. election just days away, we are going to have to be patient when it comes to headwinds lifting BTC to new multi-year highs,” Matt Blom, head of sales and trading for the cryptocurrency-focused financial firm Diginex, wrote in a note to clients.
In traditional markets, European stocks fluctuated and U.S. futures pointed to a lower open. The dollar was steady in foreign exchange markets and 10-year U.S. Treasury yields rose 0.01 percentage point to 0.83%.
“Our short-term risk-appetite indicator is firmly in negative territory,” said Jean-Francois Paren, head of global markets research at Credit Agricole CIB, in a note to clients, according to Bloomberg News.
There’s an undercurrent in the crypto industry where true believers like to paint the future of money as less about, well, money than about truth and exposing the flaws and failings and abuses and wrongs of the traditional financial system and economy.
It’s not just about getting rich. It’s about reimagining the entire system, starting from scratch with state-of-the-art technology and fresh ideas, a complete reset.
It’s also about convincing everyone else that the mission is worthy, perhaps inevitable – on the right side of history.
Such is the backdrop for the latest monthly letter from Dan Morehead, a former Goldman Sachs derivatives trader and hedge-fund manger who now runs the cryptocurrency investment firm Pantera Capital in San Francisco.
The missive includes a clever table intended to demonstrate just how succinct, concise, laconic, crisp, efficient, compact, etc. that Bitcoin founder Satoshi Nakamoto was when he penned the white paper that served as the intellectual, logical, economic and mathematical foundation for the original and still-largest blockchain-cum-cryptocurrency.
Nakamoto needed just 3,192 words for the blueprint, or less than a tenth of the book of Genesis from Hebrew and Christian sacred texts. The number is half as many as it took to pen the U.S. Constitution and about 1% of Adam Smith’s seminal Wealth of Nations.
Blockchain for Dummies, a dumbed-down instructional book on blockchain, needed 20 times as many words to explain the technology as Nakamoto’s white paper.
But aside from pointing out the elegant genius of bitcoin’s (possibly?) pseudonymous founder, the essential crypto viewpoint is one of trying to look at the world in just the right way. According to Morehead, the following chart offers a key reminder that as global economies bounce back from the coronavirus-triggered lockdowns earlier this year, the loss of output remains severe:
The point was to illustrate the lack of context for Thursday’s U.S. government report that the world’s largest economy surged 33% in the third quarter, as the lockdowns eased. To put it in market terms, it was perhaps the biggest dead-cat bounce in world history, measured in dollar terms.
With the economy in shambles, the thinking goes, massive stimulus will be needed from the government and Federal Reserve, eventually debasing the dollar and pushing up prices for bitcoin. (Deribit, the biggest cryptocurrency options exchange, just listed a contract that allows traders to bet on a price rally to $40,000 next year, triple the current price.)
Morehead wrote in the letter that a recent rush into bitcoin by big players like PayPal, MicroStrategy and Paul Tudor Jones might ultimately give more big players cover to follow.
This isn’t about greed, or the future of money. It’s about right and wrong, or rather who’s right, and who’s wrong.
“A movement doesn’t succeed because of its initial leader,” Morehead wrote. “Rather, it’s the first follower and the subsequent followers who make it work. The more who join in, the less risky it is to take part in it. Those who were on the fence before, have fewer excuses as the movement grows.”
For anyone wondering, Pantera’s full monthly newsletter clocked in at about 3,130 words. For what it’s worth.
While the market environment is currently not conducive for bullish price action in bitcoin, the cryptocurrency is unlikely to see a meteoric fall, according to analysts.
“Given the upcoming U.S. elections, and meltdown in the legacy markets, traditional investors will maintain a risk-off mindset,” trader and analyst Nick Cote told CoinDesk in a Telegram chat.
Some observers say the U.S. could face a constitutional crisis if Democratic candidate Joe Biden wins by a thin margin and President Donald Trump tries to cast doubt on the results. The election uncertainty, coupled with coronavirus resurgence in the U.S. and across Europe, has triggered risk aversion in stock markets this week and applied brakes to bitcoin’s price rally.
The anti-risk mood could prevail at least till Nov. 3. As such, Patrick Heusser, senior cryptocurrency trader at Crypto Broker AG, is calling for caution on the part of short-term speculators. “I am expecting an increase in volatility and would be careful with setting stop losses too tight,” Heusser said. “Traders should maintain a low risk profile right now.”
Bitcoin is currently trading in the red near $13,300, representing a 1% drop on the day. Should the risk aversion in traditional markets worsen, the cryptocurrency may revisit support at $12,500-$12,000.
“If prices were unable to hold the bullish throwback [bull market pullback] to $12,200-$12,000, the focus would shift to next major support levels at $11,100 and $10,800,” Cote said.
That said, a price crash looks unlikely, as major central banks are already printing massive amounts of fiat money, and the cryptocurrency is currently backed by a strong bullish narrative of increased institutional participation.
Besides, if there are widespread lockdowns and renewed economic slowdowns, central banks are expected to step in with additional stimulus, fueling inflation fears and boosting demand for bitcoin, according to Cote.
All things considered, dips in bitcoin could be short-lived.
On the higher side, the June 2019 high of $13,880 is the immediate resistance, followed by the next daily resistance block at $15,800-$16,000. There are large offers near $14,000 on cryptocurrency exchange Bitfinex, according to Heusser.
– Omkar Godbole
Bitcoin (BTC): Cryptocurrency’s price rally spurs increase in transactions just as end of China’s rainy season prompts bitcoin miners to pare back, creating congestion and pushing up transaction fees to the highest in 28 months.
Ripple (XRP): Blockchain payments firm put $9.3M into partly-owned remittance giant MoneyGram in 3Q.
The latest on the economy and traditional finance
ECB signals further stimulus ahead to prop up struggling economy (WSJ)
Central banks were net sellers of gold in third quarter for first time in decade as prices neared record (Bloomberg)
Small-cap stocks buoyed by bets on Biden-led stimulus (WSJ)
Swiss bank Credit Suisse targets share buyback up to $1.6B even with loan-loss provisions running at 8 times the 10-year average (WSJ)
Sales of $5M-plus homes in New York’s The Hamptons quadruple in third quarter as rich New Yorkers flee city (WSJ)
Exxon Mobile to slash 15% of global workforce, including 1.9K jobs in U.S., as anemic economy dents oil demand (WSJ)
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