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New Zealand Police Froze $140 Million in Assets and Crypto From Alleged BTC-e Exchange Money-Launderer Alexander Vinnik

New Zealand police have revealed that they have frozen NZD$140 million ($90 million) from Canton Business Corp and its company owner Alexander Vinnik who were holding funds in a New Zealand company. Vinnik is now in French custody but is also wanted in the US.

Andrew Coster, New Zealand Police Commissioner, stated that they had collaborated closely with the US Internal Revenue Service in this matter. He stated that the funds likely suggested illicit profits from hundreds of victims.

The money is the largest amount ever frozen by New Zealand police in the country’s history.

Dirty Money Crackdown Reaches the Strongholds

The United States has accused Alexander Vinnik of money laundering of millions of dollars through BTC-e, one of the largest cryptocurrency exchanges in the globe. Canton and its owner, Vinnik, previously operated crypto exchange BTC-e. It is reported that BTC-e operated in the US, but had no anti-money laundering policies and controls. This resulted in cyber-criminals and criminals laundering profits generated from various criminal activities, including theft, drug crime, ransomware attacks, corruption, computer hacking, and fraud through BTC-e.

Russia, his native country, also wants Vinnik to put him on trial. Vinnik mentions that he served as a technical consultant to BTC-e crypto exchange and had no connection to or knowledge of any illegal activity.

Upon the request by the US authorities, Vinnik was arrested in Greece in 2017 for alleged involvement in money laundering activities. After a legal tug-of-war for two years, Vinnik was transferred from Greece to France. In January 2020, French authorities filed preliminary charges of extortion and money laundering against Vinnik.

Vinnik denies any wrongdoing, and he went on a hunger strike to protest against his transfer to France. He instead prefers to go to Russia, where he would face lesser charges. His lawyer stated that because of the hunger strike, her client was hospitalized on his arrival in France.

Greek officials had ruled that Vinnik should be transferred first to France, then to the United States, and eventually to Russia.

On June 22, New Zealand stated that they captured NZ$140 million ($90 million) from Alexander Vinnik and his company, Canton Business Corporation, as they were holding the money in a New Zealand firm.

New Zealand prides itself on setting up companies and establishing the ease of doing business in the country. However, the country has been sometimes targeted by foreign-based criminals who use shell companies to launder money.

Coster stated that there is always a risk facing New Zealand companies as they would be used in international money laundering. He said that the latest seizure demonstrates that the country is not and will not be a safe haven for illicit profits generated from international crime in other regions across the world.

New Zealand’s companies register shows that Vinnik owned a firm identified as WME Capital Management from 2008 until 2012. However, the register does not list Vinnik as a shareholder in any firm beyond that particular date.

The New Zealand police have frozen the money. The police mentioned that they intend to apply to the High Court to seek the money to be forfeited and paid to the victims of the crime identified.

Crypto Fraud Alarming Concern

The decentralized and anonymous nature of the cryptocurrencies has become a boom to many users. But the new technology is frequently exploited by hackers at the expense of the common users. CipherTrace, a blockchain forensic company, revealed that the cryptocurrency sector lost more than $4.4 billion in scams and thefts in 2019.

Crypto fraud has risen due to malpractices occurring through crypto exchanges. Cryptocurrencies have become constant targets for scams, including hacking, phishing, digital theft, and fraud. It may remain difficult to stop scams altogether, but a balanced approach involving a suitable security framework and regulations could help contain the pandemic.

Why the World Needs a Blockchain Consensus Operating System

The true potential of blockchain to transform the lives of people around the world has clearly not been realized.

For all the progress that could have been made so far, the reality is that this powerful technology remains the preserve of a small group of technology and finance enthusiasts. What I find so disappointing about this is the fact that it could be improving people’s lives in so many obvious ways right now if it was being properly directed to the needs of the people.

Blockchain technology and smart contracts can enable huge efficiency savings as economies digitalize. They can rid a whole range of industries of fraud and compliance costs while automating any number of services that intermediaries currently charge for as ‘value-added services’.

Crucially, these technologies can improve our day-to-day lives by making them quicker, simpler, and safer when used within a system that reflects the societal structures that people recognise today. It is for all these reasons that the world needs a blockchain consensus operating system.

Existing blockchains aren’t improving people’s lives

You don’t have to look very hard at the world around us to see that existing blockchain technology has failed. Just look at a process like international travel, which so many people have become familiar with over the years as part of their business and leisure activities.

You need to arrive at an airport, check-in, pick up a boarding pass, use it at security, show your passport at border control and repeat this process at any number of checkpoints where airport or airline staff require it. These processes are built on identity checks across multiple systems that make the entire process slow, inefficient, and unenjoyable.

Blockchain technology can be used to confirm the identity of an individual once and allow that identity to be confirmed without data sharing across this entire user journey, enabling a seamless and enjoyable transition for travelers. Furthermore, as the world deals with the COVID 19 pandemic, safe travel could continue because virus-free status could be attached to an identity, thus confirming free passage but without the need to share personal information.

The efficiency savings that blockchain technology enables should span a whole range of human activities as we understand them today. Travel is just one example but there are many more interactions that can be improved, with the list growing even longer if you consider the economy and the way businesses operate within it.

For example, compliance costs in regulated markets have risen to billions of dollars every year. All of the processes involved are just a series of checks and balances that need to be confirmed one way or the other. However, they are highly inefficient and expensive because they are built around paper processes being actioned manually by people. It is truly staggering to think of the amount of money that could be saved if blockchain technology and smart contracts were being used to automate processes in so many situations.

Fortunately, there are seeds of hope for the future as forward-thinking economies start to embrace the potential of blockchain.

Blockchain can enable regulated digital economies

Some countries have embraced blockchain for some time while others are just beginning to.

In the case of Georgia, where I was born, it has had a large cryptocurrency industry for some time but the government has also used blockchain technology to improve services in a number of areas. The most notable example is land registrations. In 2016, Georgia’s National Agency of Public Registry began a large blockchain implementation and by 2018 had registered over 1.5 million land titles on this blockchain-based system.

One of the most standout examples of blockchain-based government so far though is Estonia. It was the first nation-state to deploy blockchain in production systems in 2012 and is now using it across healthcare, property, business, courts and many other government registries. The use of blockchain technology is helping to power 99% of public services in the country that are available as e-services.

Some might argue that Georgia and Estonia are not large economies or major global powers, so their use of blockchain technology is not significant for the global economy. Certainly, there is an argument that the world’s major economies need a new blockchain system and I will return to this shortly. However, to disregard these countries’ use of blockchain doesn’t take into account that other, larger nations are also starting to investigate the technology with increased interest.

Specifically, many of the world’s biggest economies are looking at how to implement Central Bank Digital Currencies (CBDCs) powered by blockchain technology. The Bank of England, Bank of France, Bank of the Netherlands, Bank of South Korea, Bank of Thailand, Bank of Canada and the European Central Bank are all following this path, and this sort of mass movement by major economies is certainly significant.

However, for these leading nations to use the technology for their various CBDC initiatives within regulated digital economies, a new blockchain consensus operating system is required.

The blockchain consensus operating system our world needs

For governments around the world to harness the power of blockchain, they cannot rely on the existing blockchain networks. These networks advocate decentralisation and anonymity above all else, which will never be aligned with the requirements of a sovereign state.

Governments are elected by their citizens to keep them safe and help them prosper. To do this, they must be able to regulate the digital economies that individuals and corporations operate in. They must be able to identify and authorize these entities when they first enter the system, even if the sharing of personal data is controlled by the individuals from that point on.

To do this, you need a regulated blockchain controlled by sovereign states. This is why I designed L3COS as the world’s first blockchain consensus operating system for regulating digital economies.

The triple layer network enables governments to communicate and operate CBDCs from the top layer, via a proof of government consensus mechanism. They can then onboard other entities onto the network to interact in a regulated digital economy, with corporations at the second layer and individuals at the third layer, all interacting in an entirely decentralised manner.

Every interaction is automated via smart contracts, making compliance seamless for businesses and individuals’ day-to-day activities quick and easy. Governments are then able to regulate their economies without burdening the entities that operate within them. As a result, all of society is able to benefit from blockchain technology in a manner that hasn’t been possible before and which demonstrates why a new blockchain consensus operating system is so desperately needed.

About the Author

Zurab Ashvil is a serial tech entrepreneur who spent more than a decade at Softbank between 1995 and 2006, where he won awards from Microsoft, Dell, and EMC. As early as 1998 he was advising on Distributed File Systems design for Windows 2000: the basis of the Cloud.

Disclaimer

The views and opinions expressed in this article are those of the contributor and do not necessarily reflect the view of Blockchain. News. Investors should be well aware of the volatility of cryptocurrencies and conduct their own research before making investment decisions.

SEC Commissioner Hester Peirce Confirmed for Second Term By US Senate, Crypto Mom Will Remain Until 2025

The United States Senate has voted in Commissioner Hester Peirce of the Securities and Exchange Commission for a second term that will see her remain with the regulator until 2025.

The US Senate has confirmed Securities and Exchange Commission (SEC) commissioner Hester Peirce, renewing her position for a second term via a voice vote on Aug 5.

Peirce who has earned the name ‘Crypto-Mom’ for her pragmatic and reasoned approach to dealing with digital innovation projects brought before the SEC was voted in alongside Caroline Crenshaw.

Commissioner Peirce first took office in January 2018 and received a nomination to finish the last two years of her term from US President Donald Trump. Peirce was originally nominated by former President Obama in 2015 to fill a Republican seat, without Trump’s second nomination her term would have ended on June 5.

SEC Commissioner Peirce’s second term will expire in 2025.

Crypto Mom: Voice of Reason in the SEC

Peirce earned the nickname of ‘Crypto Mom’ when she first proposed a safe harbor for digital token projects as the SEC regulating authority had become increasingly prejudiced towards cryptocurrency and blockchain-related project.

According to Commissioner Peirce’s safe harbor proposal, a three-year reprieve from securities law should be granted to developers and projects that can demonstrate they are raising funds and making progress towards an open-source network. These projects will be required to make full disclosures regarding their raised funds to the public.

Peirce highlighted that the benefits would allow developers to fundraise, investors to access more detailed project information and innovations in this emerging technology would stay in the US.

SEC Commissioner Peirce made further headlines in the cryptosphere when she spoke out and highlighted parameters that were set and heavily scrutinized in the SEC’s processing and ultimate rejection of Bitwise’s Bitcoin ETF application. Peirce argued that the standards that Bitcoin ETF’s are subjected to have never been applied to traditional markets offering.

SEC Commissioner Hester Peirce wrote that “the Commission applies a unique, heightened standard under Exchange Act Section 6(b) to rule filings related to digital assets” in a dissenting statement in response to the Bitcoin ETF rejection. Peirce wrote, “This line of disapprovals leads me to conclude that this Commission is unwilling to approve the listing of any product that would provide access to the market for bitcoin and that no filing will meet the ever-shifting standards that this Commission insists on applying to bitcoin-related products—and only to bitcoin-related products.”

During a recent appearance, Peirce was also incredibly critical of the SEC’s handling of Telegram’s TON network, which she believed was a waste of resources and ultimately helped no one.

Peirce Will Likely Continue Advocating for Innovation

Securities and Exchange Commissioner Hester Peirce has shown no signs of pulling out of her advocacy role for digital projects.

Last month on July 7, Peirce spoke at the Unitize Virtual Conference and advocated for a clear regulatory framework for crypto projects to foster innovation in the capital markets. Peirce said, “I wanted to make sure that our regulatory structure was flexible enough to accommodate innovation.”

Alluding to her previous safe harbor proposal Peirce highlighted that the benefits of clear regulation would allow developers to fundraise, investors to access more detailed project information, and innovations in these emerging technologies would stay in the US.

The exodus of tech talent from the US to Asia and Europe has been well documented and Peirce believes that’s “all the more reason for a jurisdiction like the United States to try to develop a workable framework that allows people to come and avail themselves of our market.”

While Peirce wants to see the US Government be more proactive in cutting through the regulatory uncertainty for crypto and blockchain, she also highlighted that innovation rarely comes from the public sector.

Peirce said, “Remember that innovation typically comes from outside the government sector. We need to set up a framework that allows people who spend a lot of time thinking about new ideas to continue to spend time thinking about those ideas and not a lot of time worrying about complying with regulations.”

Kookmin Bank, South Korea’s Largest Bank Will Offer Cryptocurrency Custody

Kookmin Bank, the largest commercial bank in South Korea, will start offering Bitcoin custody services through a new partnership with blockchain venture fund Hashed.

According to a blog post by Hashed’s legal compliance officer Jin Kang on Aug 7, Hashed signed a memorandum of understanding with KB Kookmin Bank, Haechi Labs and Cumberland Korea to advance the emerging market for digital assets in South Korea. The MOU is based around fundamental technologies such as blockchain and will entail managing and storing digital assets, advocating for optimal regulatory developments, and transforming the traditional financial sector.

In January 2020, Kookmin bank filed a trademark application for ‘Kbdac’ with the Korean Intellectual Property Office. Kbdac is a proposed digital custody service.

Per the blog, “KB Kookmin Bank, the largest bank of the four, anticipates that the digital asset industry will not only involve cryptocurrencies but also other traditional assets such as real estate, artwork, and other reified rights that will be issued and traded on blockchain platforms.”

In the short-term at least, the partnership between Kookmin and Hashed will have a predominant focus on cryptocurrency but as cited above, the three entities will eventually offer custody for other tokens, security tokens, non-fungible tokens, and most likely central bank digital currencies.

South Korean Entities Time Perfectly with OCC Announcement

According to Jin Kang, the news of the collaboration between Kookmin Bank and Hashed is perfectly timed with the recent announcement by the United States OCC that US banks may also, offer custody for digital assets.

As reported by Blockchain.News on July 23, the United States Office of the Comptroller of the Currency (OCC) issued a public letter on July 22, clarifying that federal savings associations and national banks have the legal right to take custody of crypto-assets.

The OCC has issued a landmark announcement for the cryptocurrency industry by confirming that all federal saving associations and national banks are allowed to offer cryptocurrency custody services for customers.

With the letter, federal savings associations and national banks have been made aware that they can freely hold cryptocurrency assets for customers, whether it is holding keys or offering other custody or protective services. The letter clarifies the stance by the OCC that bank custody services, which have been known to include holding digital assets can extend to cryptographic keys and other cryptocurrency-related assets.

Chief Counsel and Senior Deputy Comptroller at the Office of The Comptroller of The Currency (OCC) wrote the letter as a response to an unnamed bank, which had sought the opinion.

The letter reaffirms the position of the OCC that national banks can offer permissible banking services to any lawful business they choose, including cryptocurrency businesses, provided that they comply with applicable law and effectively manage the risks.

Warren Buffett Changes Attitude on Gold, Not Bitcoin Reminds Peter Schiff

Warren Buffett has made a shock investment buying a stake in Barrick Gold Corp after previously calling gold a “non-productive asset.” Peter Schiff mocked the Bitcoin community reminding them that Buffet once called the cryptocurrency “rat-poison squared” and will likely never invest in Bitcoin.

Warren Buffett made some significant investment changes in the second quarter. Buffett has added a new stock to his Berkshire Hathaway portfolio by taking a stake in Barrick Gold Corp. Barrack Gold corporation is a leading Canadian mining company that produces gold with 16 operating sites in 13 nations.

Buffett has always been critical of gold, but now things have changed. He currently sees where profit would come from going forward. The price of gold has surged this year up almost 30% as investors have sought safe havens. Buffett’s current move to buy a gold stock has a significant impact as institutional investors would follow. The move not only ergo higher prices of gold but also prices of mining stock.

This clearly shows that Buffett is not positive on the US dollar or the US economy. He sees global central banks have entirely lost control as they are printing trillions and killing fiat money.

Coronavirus Crisis

Buffett has moved to pull out of stocks most affected by the COVID-19 related shutdowns. He did more selling than buying between April and June, Berkshire’s quarterly shareholding filing released on Friday 14th August 2020 made this clear.

Airlines were not the only stocks that Buffett sold during the coronavirus pandemic. Besides selling all his holdings in airline stocks, including Southwest Airlines Company, Delta Air Lines, Inc, American Airlines Group, Inc, and United Airlines Holdings, Buffett also dumped his bank stocks. The Berkshire Hathaway investor completely dumped all his holdings in Goldman Sachs and reduced his holdings in Wells Fargo by 26% and in JPMorgan Chase by 60%.

As the COVID-19 pandemic escalated, Buffett’s Berkshire has just acquired about 20.9 million shares of Barrick Gold Corporation, a position valued at $563.5 million at the end of the quarter. Hours after Buffett bought gold stock, the value of Barrack’s stock hit $29 from $26.99 on Friday 14th August.

The celebrated investor has also exited its holdings in Occidental petroleum corporation during the coronavirus pandemic. He also exited a position in Restaurant Brands International, the owner of fast-food restaurants including Popeyes and Burger King, which struggled as regional restrictions compelled dining rooms to close and customers stayed home more.

All bank stocks are in negative territory during this year, although they have not lost almost as much as energy and airline companies. Buffett may be shying away from banks due to the anticipation that loan defaulters could increase as the economic pain resulting from the pandemic continues, which Wall Street CEOs have recently warned of.

However, it was not all about selling, Berkshire has added to its earlier stake in Store Capital Corporation (real estate investment trust company) and its holdings in Liberty media corporation (US mass media company) and in grocery chain Kroger company.

Rat Poison Squared

Peter Schiff, the American stock broker, gold bull and enduring Bitcoin opponent was only too happy to remind the Bitcoin community that Buffet will likely never invest in the cryptocurrency.

Schiff tweeted:

“Bitcoin pumpers are exploiting Buffett’s decision to buy Barrick Gold. Since Buffet changed his mind about gold, he may change his mind about Bitcoin too. While he called #gold a non-productive asset, he called #Bitcoin rat poison squared. Buffet will never buy Bitcoin!”

He further added:

“Buffett’s decision to buy Barrick Gold and not Bitcoin or GBTC is a further condemnation of Bitcoin. Buffett clearly doesn’t thinks Bitcoin represents a threat to gold or its dominance as a safe-haven asset. Buffet knows #gold is here to stay and #Bitcoin is just a passing fad.”

Despite increasing institutional demand and growing mainstream investment, Schiff is the eternal Bitcoin bear. Meanwhile Bitcoin’s price continues to test the $12,000 resistance gaining close to $9000 since the March crash and gold has surged to nearly $2000.

Image source: Flickr: Shannon Patrick

Hong Kong SFC Agrees in Principle to License Fidelity Backed OSL Crypto Firm

Hong Kong’s Securities and Futures Commission (SFC) has agreed in principle to license the cryptocurrency firm OSL Digital Securities.

Hong Kong’s financial markets regulator, the SFC has agreed in principle to issue a license to OSL Digital Securities. The cryptocurrency firm is part of the Fidelity-backed BC group and was one of the first to apply for a digital asset license from the Hong Kong Securities and Futures Commission.

OSL said in November 2019, that it had applied to opt into the SFC’s regulations as announced by the regulator on Nov. 6.

SFC Opt-In Regulations

The Hong Kong Securities and Futures Commission announced the new opt-in regulations for crypto exchanges last November 2019. Financial regulators worldwide have been debating for a while just how and if they should regulate cryptocurrency or virtual assets firms.

The announcement was made by Ashley Alder, Chief Executive of the Hong Kong SFC in his speech at the Hong Kong FinTech Week 2019. Following his speech, the SFC also published a new regulatory approach to “virtual asset trading platforms,” on its website.

The approach was announced as technology-neutral—Alder said that the Hong Kong regulator had been contending with the growing list of issues, including the application of existing regulations in the “context of increased automation and the adoption of artificial intelligence and machine learning.”

The new standards set by the SFC for opt-in regulation—seek to address regulatory concerns regarding custody, know-your-client (KYC) requirements, anti-money laundering (AML), and counter-financing of terrorism (CFT) and others for trading crypto.

Licenses could be granted to the crypto exchanges that choose to include “security virtual assets or tokens for trading,” where investors will be able to differentiate between regulated platforms from those that are unregulated.

Although the SFC is open to supervising crypto exchanges, it has made clear that “the virtual assets traded on the platforms are not subject to the authorization or prospectus registration provisions that apply to traditional offerings of “securities” or “collective investment schemes.”

OSL Digital Securities are among a slew of other digital asset firms that welcome regulation as they wish to service the mainstream financial markets. So far no other crypto asset firm has been granted approval from the HK SFC.

According to Reuters, BC Group CEO Hugh Madden said that one benefit of being licensed was that regulated institutions would be able to reduce their risk by being able to engage with other regulated entities.

Russian Civil Servants Required to Declare Crypto Holdings Beginning in 2021

Russia’s public officials will be obligated to declare all their private cryptocurrency and digital asset holdings, effective from the start of 2021.

Russian officials must declare crypto holdings according to the requirements announced on Oct. 20 by Igor Krasnow, the Lieutenant-general of Justice from the office of the Prosecutor General of Russia.

The new requirements appear to be the result of a meeting of Krasnov had with fellow prosecutors of the Shanghai Cooperation Organization on the same day. The meeting was attended by the heads of the prosecution services of the SCO member states—India, Kazakhstan, China, Kyrgyzstan, Pakistan, Tajikistan, Uzbekistan, as well as representatives of the SCO Secretariat, the SCO Regional Anti-Terrorist Structure, and the International Association of Prosecutors (IAP).

The topic of the meeting of the SCO was “Modern practice and effective mechanisms for combating and combating corruption.”

In the Russian Prosecutor General’s announcement following the discussions, Krasnov declared:

“Starting next year, civil servants will be required to declare [virtual] currencies on an equal basis with other assets.”

During the meeting, Igor Krasnov highlighted that millions of people in Russia submit information on income and expenses every year. At the same time, prosecutors have revealed a significant number of violations related to concealment or submission of incomplete information about income.

The Prosecutor General’s Office claims to have confiscated more than $440 million worth of undisclosed assets from civil servants in the last three years.

The new declaration requirements on civil servants comes following new laws passed by the State Duma of Russia that will legalize crypto assets in the country—classifying them in the same bucked as physical commodities, also due to begin in 2021.

The DFA bill, named “On Digital Financial Assets,” decrees that on January 1, 2021, transactions with cryptocurrencies involved will be legalized. However, the catch is that crypto enthusiasts will not be able to use Bitcoins (BTC) and altcoins as a form of payment, but rather, they would have to conduct business payments with fiat money.

The new requirements are a reversal of a 2018 decree that explicitly said Russian officials were not obligated to declare crypto holding. The requirements of crypto reporting for civil servants in Russia may soon be enacted by other legislators across sections of Europe and Asia.

Microstrategy CEO Reveals BTC Purchase is Corporate Strategy to Adopt Bitcoin Standard

CEO Michael Saylor revealed in a recent interview that MicroStrategy’s $425 million Bitcoin investment was part of its corporate 100-year outlook and the firm’s strategy to adopt the Bitcoin Standard.

Microstrategy CEO Michael Saylor said the company will hold onto its Bitcoin holdings for the next 100 years—with absolutely no plans to sell.

Since its purchase of 21,454 BTC on Aug 11, Microstrategy’s initial Bitcoin investment has gained close to $30 million in just over two months. The firm also made a $175 million second BTC investment in September.

Speaking to Real Vision CEO Raoul Pal on Oct. 21, Saylor confirmed his BTC strategy had been the result of planning and discussion amongst the business intelligence firm’s board of directors, investors, auditor and executives.

Saylor revealed that Microstrategy began to explore assets that could act as a safe haven or long-term store of wealth after a decision had been reached by the firm to restructure its treasury—in response to the uncertainty created by the COVID-19 economy.

According to the Microstrategy CEO, Bitcoin was the only asset that provided a strong 100-year outlook. Saylor argued that other assets they explored were all vulnerable to taxation and fees or too centrally controlled by governments or corporations.

Saylor said during the interview:

“This is not a speculation, nor a hedge. It is a deliberate corporate strategy to adopt the Bitcoin Standard.”

Saylor was also critical of other cryptocurrencies, claiming that Bitcoin was proven while Ethereum is not yet done with its functional architecture. The Microstrategy CEO said that when comparing BTC with other cryptos, the choice is obvious. He said, “the market screaming to you there is a winner.”

It’s not just cryptos that Bitcoin trumps, according to Saylor BTC also easily bests traditional stores of value like cash and gold. He said:

“Bitcoin, if it’s not a hundred times better than gold, it is a million times better than gold, and there is nothing close to it.”

When comparing Bitcoin to gold, Saylor cited the crypto assets history of increasing in value, its scarcity and limited supply and its functionality in terms of storage and transport of wealth as features gold could not match.

Saylor also adamantly expressed to Pal that contrary to speculation in the crypto market that the business intelligence firm is trying to capitalize on a fast pump and dump, Microstrategy is thinking long-term on Bitcoin. He said:

“I’m buying it for the dude that’s going to work for the dude that’s going to get hired by the guy who takes over my job in 100 years.”

Institutional Bitcoin Pays Off

While Microstrategy is no doubt feeling pretty pleased with their decision to invest in Bitcoin as the crypto made its bull run this week, but they aren’t the only company celebration.

Grayscale Investments is also sure to cause Bitcoin FOMO among institutions still afraid to venture into BTC, as CEO Barry Silbert announced a breathtaking increase of $300 million in AUM after a single day this week—as BTC price surged to new highs for the year.

The Bitcoin price is $12,933.05 at the time of writing.

BOE Governor: Bitcoin and Trending Cryptocurrencies May not be Viable in the Future but Stablecoins Are the Exception

Speaking at the World Economic Forum, the Bank of England governor Andrew Bailey discussed how cryptocurrencies would fit in the current governance system.

He disclosed during a panel on “Resetting Digital Currencies” that while he did not think that Bitcoin and other cryptocurrency assets will last and stand the test of time, stablecoins may have a place in the current financial system.

The governor explained that overall, digital currencies may not be a viable option for payments, as cryptocurrencies were too volatile in nature. In discussing crypto, he said that he did not think there was a lasting cryptocurrency that has yet been formulated, including Bitcoin, and that they may not be the best solution for utility.

Bailey said that while there was huge digital innovation in payments, there were still “huge gaps to be filled in cross-border remittances and cross-border payments,” as the cost of issuing payments were too high.

The Central Bank governor said that there was a whole question behind people needing assurance that “their payments are going to be made in something with stable value, which as the history lesson says ultimately links back to what we call fiat currency.” Enter stablecoins.

Bank of England Governor sees potential in stablecoins and CBDCs

Bailey acknowledged that there was room for digital innovation as a whole, but in the cryptocurrency industry, Bailey was particularly interested in stablecoins, which are backed 1:1 to fiat currencies or other government-issued assets. He suggested that there was budding potential and room for innovation in central bank digital currencies (CBDC) and stablecoins, which should be explored further.

Although the governor disfavored Bitcoin and other crypto assets, stablecoins, on the other hand, were according to him useful for transacting.

Previously, Bailey had said that stablecoins could be used to reduce frictions in payments by increasing efficiency and speed of transactions at a low cost. According to him, stablecoins offered increased convenience as well, as payments could be done digitally and remotely, in a regulated manner.

Earn Additional Yield on Your Crypto20 Investment

Invictus Capital continues in its pursuit to provide its community with unique wealth creation opportunities. The InvictusCapital.com token, or simply ICAP, incentivizes investors to lock-up, or ‘stake’ their Invictus fund tokens to earn an additional return over and above the potential appreciation of the token value itself. ICAP tokens are earned by investors who opt to stake their investments for a fixed period of up to 12 months.

It is important to note the difference between staking Invictus fund tokens and earning ICAP. Each staker accrues ICAP based on their share of the overall staking power of the system. With the USD value of staked tokens as a base, staking power is enhanced by fund-specific and time multipliers. Investors are rewarded for every 30-minute staking period that they fulfill, resulting in new ICAP tokens becoming available for them to claim. In short, the larger and longer the stake, the greater the reward.

The rate of ICAP issuance began at a rate of 10,000 per week, which diminishes by 2.5% each week until a stable issuance rate of just 1,000 per week is reached by October 2022. This was an intentional design choice aimed at incentivizing early adoption: the earlier you start staking, the larger your ICAP stack.

ICAP derives its value from the allocation of a 10% rebate on all fees generated by Invictus Capital funds to buy-and-burn ICAP tokens off the market every week, similar to share buybacks, driving up the market price. Therefore as total AUM increases, so too will the amount used to buy and burn ICAP. Essentially, as more people invest in Invictus funds, the company’s fee revenue will increase, and with the price of ICAP expected to correlate with the size of the Invictus community, so too will the value of your ICAP. This dynamic incentivizes the Invictus community to spread the word about the company’s fund offerings to friends and family, helping drive mutually beneficial AUM growth.

Additionally, the staking of tokens allows Invictus Capital to deploy assets more efficiently. For example, funds’ assets can be committed to yield generation strategies for longer periods which typically provide greater returns.

CRYPTO20 already presents a great investment opportunity, boasting massive potential upside through exposure to the top 20 crypto assets, with significantly less volatility than any individual crypto asset. The long-term trend of the C20 fund’s performance has been strong, generating a return of 162% over the last three months. The ICAP token has so far followed a similar trajectory, with a 150% increase since inception — but with a market cap still under $1 million. It’s important to remember that as more people start staking, and ICAP tokens reach the defined stable issuance, the price has the potential to go parabolic if the trajectory for AUM continues. Therefore, it seems an obvious choice to stake an existing Invictus Capital investments, rewarding you with an even greater return on your original investment.

Considering the price of C20 and the potentially undervalued ICAP tokens, C20 would be an excellent fund for investors to start staking and earning extra returns. At current ICAP prices just over $5.50, C20 staking returns (which are earned in addition to any C20 price appreciation) in dollar terms range from around 4% to 8% annually, depending on the duration of the stake.

Start calculating your additional returns by visiting the community-developed website through the link below.

http://invictusicap.org/

Once the second phase of ICAP is launched, investors will receive even more benefits when holding ICAP, further incentivizing the staking process and supporting ICAP’s price. The second phase is set to function as a governance tool, allowing the community to vote and participate in the company’s decision making. Furthermore, ICAP tokens will provide discounts on trade fees when the Invictus wallet exchange functionality goes live, resulting in reduced friction when shifting capital between Invictus funds. Thus, staking C20 over the long-run and earning additional ICAP is a great way to help mitigate the fund’s occasional downside risk while still being exposed to the massive potential returns that the diversified C20 portfolio has to offer.

Image source: Invictus Capital Media