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Privacy at Stake: 96% Of Information Requests to Coinbase Came From US Federal Agencies

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Coinbase has released its recent Transparency Report, and the results are not at all encouraging for privacy advocates and believers in an “anti-establishment” philosophy of cryptocurrencies.

According to the company, out of 1914 requests for information it received, 1848 of them corresponded to subpoenas and interactions made by criminal investigation agencies, and only 66 came from civil or administrative agencies.

Type of Information Requests sent by Law Enforcement Agencies to Coinbase. Image: Coinbase
Type of Information Requests sent by Law Enforcement Agencies to Coinbase. Image: Coinbase

Coinbase Unveils An Unsurprising Report

Such statistics from Coinbase are not strange. The company has consistently expressed its willingness to cooperate with U.S. law enforcement agencies, having contracts and good relations with the U.S. Department of Homeland Security.

This number far exceeds the 710 requests received by Kraken during 2019. This exchange is also based in the United States and discloses data on requests made by authorities. This year, Kraken reported that the authorities developed an increasing interest in crypto, raising the number of information requests by almost 50%.

The team at Coinbase said they have no problem disclosing information to the authorities as long as legal procedures are followed. Still, they also emphasized that customer privacy is also considered. In any case of conflict of interest, they could act in favor of their customers.

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As a financial institution with a duty to detect and prevent prohibited activity on its platform, we respect the legitimate interests of government authorities in pursuing bad actors who abuse others and our platform. Yet, we will not hesitate to push back where appropriate.

However, it is important to consider that both Coinbase and Kraken were ranked among the top cryptocurrency exchanges of 2020 by CryptoCompare. The fact that they are registered in the US, have strong AML/KYC policies, and comply with US law, is a major point when it comes to assessing how safe and trustworthy a crypto exchange platform is.

Another highlight of the report is the most interested agencies in tracking cryptocurrencies across the crime world. According to Coinbase, 30.5% of the requests came from the FBI, Homeland Security followed by 16.5%, several local entities with 16.2%, and finally the DEA with 9.3%.

Running An International Business Comes With a Cost

Agencies with direct competence in the economic area had a minimal relationship with Coinbase. The SEC presented 2.6%, the CFTC 0.6%, and the IRS administrative area a little more than 2.2% (in contrast to the 6% of the area that is dedicated to criminal investigations).

US Law Enforcement Information Request, by Agency. Image: Coinbase
US Law Enforcement Information Request, by Agency. Image: Coinbase

Outside of the United States, Coinbase also collaborates with many governments. America has 1113 of the 1914 applications, while the rest of the countries have very little interest in this world. The U.K. sent 443 requests, and Germany 116, the rest of the countries did not reach the 50 interactions with the exchange.

Countries with information requests registered by Coinbase. Image: Coinbase
Countries with information requests registered by Coinbase. Image: Coinbase

The Coinbase report shows that the United States is increasingly interested in regulating cryptocurrencies to the fullest extent. From trying to force encryption service providers to work on solutions to allow law enforcement agencies to access private citizen data to paying companies to develop methods to track down privacy-focused blockchains, such as Monero or Zcash.

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Source: https://cryptopotato.com/coinbase-releases-transpareny-report-2020/

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Up or down? These Bitcoin price levels hint at the next move from $13K

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Bitcoin (BTC) price has had a tremendous month as the price rallied from $10,500 to $13,800. However, in recent days, momentum is slowing amid rising coronavirus fears. Bitcoin’s price dropped from $13,800 to $12,900 on Oct. 28, making the recent breakout a fakeout.

Alongside a correction on the cryptomarkets, the equity and commodity markets also showed weakness. As the S&P retraced 4% on Wednesday, Silver also corrected 6%. The only asset doing relatively well was the U.S. Dollar Currency Index (DXY). In other words, investors are flying towards the USD for safety once again.

The $13,500-14,000 area confirming resistance for Bitcoin

BTC/USD 2-day chart. Source: TradingView

The 2-day chart shows an apparent resistance at the $13,500-14,000 area as a rejection is seen in this area. The $13,500-14,000 area is the final big hurdle until a potential new all-time high can be hit. Many investors and traders are eying this area as crucial.

The chart also shows a clear support zone ready to be tested in the coming period. This zone is marked between $11,600-12,200. If that area holds for support, new range-bound construction can be established to start a healthy accumulation period.

DXY bouncing upwards, causing BTC price to drop

U.S. Dollar Currency Index 1-day chart. Source: TradingView

As the fear surrounding potential full lockdowns returning across Europe, the flight towards safety is also starting up.

The first wave was there in March 2020, when the flight toward the U.S. Dollar was seen as markets crashed. Through that, the U.S. Dollar Currency Index (DXY) found a bottom and bounced upward from the 92.50 points level. Currently, it’s close to 94 points, through which the recent bounce of the DXY index triggered weakness across the other markets.

Bitcoin retraced heavily in recent days, but even Silver showed a 6% correction in just a day.

U.S. Dollar Currency Index 1-day chart. Source: TradingView

As the data shows, the correlation between Bitcoin and the DXY index became inverse since the March crash. This is also similar to the movements of Gold.

But what can be derived from this data is that the likelihood of further corrections for Bitcoin are increasing amid the legacy markets’ weakness and social unrest surrounding the potential lockdowns.

A correction wouldn’t necessarily be unhealthy for the Bitcoin market at this point as that may lead to further accumulation.

The majority of the investors definitely want to see a straight line towards $200,000, but that’s simply not happening. At best, Bitcoin is at the start of a new cycle, through which the boring sideways part will keep recurring. Once all levels are tested, parabolic movements can occur in price discovery.

Bulls must reclaim $13.3K

BTC/USDT 2-hour chart. Source: TradingView

A familiar concept is a breakout above the previous resistance for liquidity. After this, an immediate drop back into the range occurs. This is called a fakeout and is often seen in the markets to take liquidity.

As the chart shows, a clear resistance zone is established at $13,250-13,400 and should be broken to sustain further upward momentum. If the resistance zone can’t be cleared, the downside becomes more likely.

The levels beneath the current prices are $12,700-12,850 and $11,600-11,800 as higher timeframe zones to watch for potential support.

The latter “hell’s candle” scenario is only expected if the support zone between $12,700-12,850 is lost. However, such a drop would warrant massive selloffs across all crypto markets with altcoins taking the biggest losses from such a correction on Bitcoin.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Source: https://cointelegraph.com/news/up-or-down-these-bitcoin-price-levels-hint-at-the-next-move-from-13k

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Huobi Beefs Up Venture Arm With Former DragonFly Partner Leading DeFi Investments

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“When I left DragonFly earlier this year, Huobi was also ramping up its internationalization efforts and its corporate investment practice,” Pack told CoinDesk in an interview. “I thought Huobi has the potential to be one of the most impactful companies in crypto. When I was approached by my old friends there to help them, I thought it was a no-brainer.”

Pack’s new role at Huobi will largely focus on expanding Huobi’s stakes in DeFi projects in Western countries, after Huobi’s newly launched venture investment arm began pouring money into DeFi projects in Asia. He told CoinDesk he and Huobi are willing to spend up to “tens of millions of dollars” funds to support new DeFi projects.

In his previous role at DragonFly, Pack was an early-stage investor of many significant crypto projects including DeFi protocols MakerDAO and Compound Finance. He left the crypto investment firm in April, citing “a difference in vision on the direction of the firm,” though he stayed on as a part-time venture partner. 

Huobi, along with other centralized crypto exchange giants, is rushing to reposition itself as an integral part of the exploding DeFi sector. Those semi-decentralized, blockchain-based lending and trading platforms have accumulated more than $10 billion in total value locked, most of which has occurred since the start of the second half of 2020.

Unlike Binance, the world’s largest crypto exchange by trading volumes, which has built a public decentralized blockchain to help support DeFi projects, the company behind the Huobi exchange has been focused more on incubating DeFi projects by funding, research and leveraging its established user base.

“Today there are two things: ‘CeFi’ [centralized finance] and ‘DeFi,’ in crypto parlance,” Pack said. “In the next 10 years, I think they will merge … and you will see companies that have wallets – Huobi already has a large wallet – do decentralized exchanges and decentralized versions of everything they offer. And you will see decentralized finance grow and mirror many of the aspects of centralized finance exchanges as well.”

“Huobi is one of the largest entities so it is in a perfect position to help this merging happen,” he added.

While current DeFi projects are still mostly centered around lending protocols and stablecoins, Pack said the particular type of DeFi projects he will initially look at are those that build synthetic assets on blockchains.

“The most interesting thing next that we are going to see are things in particular like synthetic assets, the ability to make a derivative or a synthetic version of anything: a stock, a bond, an entire fixed income space,” Pack said, “and then more products that support security, like insurance products, that makes it more trustworthy to enter into DeFi.”

Pack went quiet after he left Dragonfly Capital earlier this year. According to Pack, Huobi’s strong presence in Asia is also part of the reason why he decided to join.

“The most users and the most business model information and infrastructures are in Asia,” he said. “And yet, by far, the most interesting technology and the new frontier things are happening in the West. And I’ve always tried to be a bridge between those two areas.”

Source: https://www.coindesk.com/dragonfly-pack-huobi-defi-investments

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Ethereum satellite set for launch

Ethereum based blockchain satellite to be launched on November 20. This is a first of its kind in the history of space communication. A record is about to be set as Villanova University College of Engineering has partnered with a non-profit organization, Teachers in Space, to launch a first-ever blockchain-backed inter-satellite communication that would happen […]

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  • Ethereum based blockchain satellite to be launched on November 20.
  • This is a first of its kind in the history of space communication.

A record is about to be set as Villanova University College of Engineering has partnered with a non-profit organization, Teachers in Space, to launch a first-ever blockchain-backed inter-satellite communication that would happen on the low-Earth orbit.

The launch is expected to be carried out using a Firefly Aerospace Alpha vehicle which would be launched into space on November 20. The project is tagged Serenity.

According to the team of engineers on the project, an ethereum based blockchain would be used to carry out transactions between the satellites in space without the need for the interference of the involvement of the ground stations.

The lead engineer of this project, Hasshi Sudler, who is also an adjunct professor at the college of engineering, implied that this project is groundbreaking in the sense that using blockchains in space would allow satellites to carry out transactions without needing for ground stations to get involved in how the transactions occur.

A blockchain-based inter-satellite communication has never been done before; this ethereum backed blockchain satellite would be the first of its kind, and Sudler predicts that this could become a viable sector in the next five years.

Use of Ethereum backed blockchain rising.

The use of ethereum backed blockchain has risen this year. This year, we have seen an increase in the numbers of Decentralized Finance (DeFi) tokens built on ethereum backed decentralized technologies.

Many of these tokens have become quite popular in the market and save from the recent burst in its bubble, which analysts have predicted to be just a blip, it appears to be here to stay.

Other analysts have also predicted more use for Ethereum significantly when its version 2.0 drops anytime soon. ETH is generally regarded as the second most popular crypto asset after bitcoin and has also gained a whole level of acceptance and usage.

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