Coinbase Custody Holds $1.3B in Assets Under Custody, Expects to Hit $2B ‘Soon’

Coinbase Custody revealed that it holds $1.3 billion in assets under custody (AUC) and the firm expects to hit $2 billion AUC soon in a Twitter thread published on June 13.

In a series of tweets, what is evidently the official Coinbase Custody Twitter account reported that last week the company’s CEO, Sam McIngvale, and its chief information security officer, Philip Martin, visited the United Kingdom. The purpose of the visit was reportedly “to discuss the institutional cryptoeconomy with a range of prospects and clients.”

During the meeting, the firm’s representatives argued that, while many believe that there are no institutional-grade offerings in the cryptocurrency space, Coinbase Custody is in fact such an offering. The firm’s representatives stated that the company is insured, regulated and secure custodian. The thread also specifies:

“We have $1.3bn AUC and expect to hit $2bn soon. We have no intention of stopping there. […] Coinbase Custody services over 90 clients. Of those, approximately 40% are outside of the US.”

Lastly, the tweet also claims that — as cryptocurrencies mature as an asset class — financial hubs such as London are becoming centers for crypto innovation.

During an on-stage discussion at Consensus in mid-May, Brian Armstrong, CEO of Coinbase, said that its custody service had already received $1 billion in assets under management.

As Cointelegraph reported in March, the United States Securities and Exchange Commission is soliciting industry input as it potentially reconsiders existing custody rules in specific cases of digital asset trading and settlement.

In April, Hong Kong trading and asset management firm BC Group announced that it is launching an insured custody service for cryptocurrencies.

News source CoinTelegraph.com

Facebook to Unveil ‘Libra Association’ and Launch Testnet Next Week: Report

Social media giant Facebook will unveil the Libra Association, which will operate its bespoke cryptocurrency Libra, on June 18, cryptocurrency news outlet The Block reported on June 14.

Per the report, Facebook and dozens of its partners will unveil the Libra Association — which will be based out of Geneva — as the entity that will oversee the company’s Libra cryptocurrency project. During the event, the company is also expected to launch the testnet of its blockchain.

The Block claims to have seen an unspecified blog post from Facebook, according to which the Libra crypto asset will be hosted on the dedicated Libra Blockchain and backed by the Libra Reserve. The Libra Reserve is reportedly a store of real assets that should supposedly grant the token “stability, low inflation, global acceptance, and fungibility.”

The Block further notes that the software underlying the network will be open-sourced under the Apache 2.0 license. The social media giant allegedly hopes that the system will help people without access to the financial system. Lastly, per the report, the company also declared that it intends to focus on regulatory compliance:

“Collaborating and innovating with the financial sector, including regulators and experts across a variety of industries, is the only way to ensure a sustainable, secure, and trusted framework underpins this new system.”

As Cointelegraph reported earlier this month, multiple sources were already expecting Facebook to launch its cryptocurrency on June 18.

More recently, news broke that Facebook has allegedly sealed backing from over a dozen firms that include Visa, Mastercard, PayPal and Uber for its soon-to-be-unveiled cryptocurrency project. Each firm reportedly contributed $10 million to the project.

News source CoinTelegraph.com

Appetite for Blockchain Tech Builds Among Korean Banks, but Without Crypto

In recent weeks, major South Korean financial institutions have rolled out a number of services incorporating blockchain technology, especially in the areas of Know Your Customer (KYC) procedures and security. Fintech has become a buzzword for local banks trying to keep up with the change of the times.

The banks, however, are not looking into an important part of blockchain, which is digital assets, says one influential Korean advocate of alternative currency. In order to assess the Korean blockchain space, it is important to understand how the trend affects existing players and the cryptocurrency market.

Blockchain as a ledger

Shinhan Bank, the first bank to be established on the peninsula, incorporated blockchain into its lending services on May 27.

The bank’s “blockchain Verification System” allows users to receive evidential documents on private enterprises. Through this system, it has shortened the process from two to three days to almost instant verification.

KB Kookmin Bank, one of the largest banks in the country, signed a memorandum of understanding (MoU) with blockchain firm Atomrigs Lab, as Cointelegraph reported June 11. The partnership is designed to explore digital asset management and protection solutions.

What differentiates Atomrigs Labs from other blockchain developers is that it specializes in the financial sector and is known to have the technology to retrieve private keys in case of loss.

The latest move is part of KB Kookmin’s strategic blueprint to make the promotion of digital transformation a priority. Last year, the bank announced it will focus on technological improvements using the acronym “ABCDE” — standing for artificial intelligence, blockchain, cloud, data and ecosystem.

KB Kookmin has also signed an MoU with LG Corp., and is currently developing a joint product currently being called Magok Pay. The nickname comes from where the LG Science Park is located in Seoul.

The payment system using LG CNS’ technology, the IT subsidiary of the umbrella company, is aimed at allowing users to pay with tokens on their smartphones without cash or a bank card.

In turn, the retail lender will pay the amount and manage the transactions in fiat. It was ranked the world’s 60th-largest bank in 2017 based on Tier 1 Capital.

Since April, NH Savings Bank started offering a peer-to-peer financial certificate service, which aims to prevent the tampering of records of receivable principal and interest. More recently, it has also opened a new training course to some of its workforce to groom them to be well-versed in digital ledger systems.

The bank is an extension of the National Agricultural Cooperative Federation’s financial operations and serves some 20 million customers.  

In an interview with Cointelegraph, Sung-jung Kim, the head of Asia for Cindicator — an analytics provider of traditional and digital assets using collective intelligence and machine learning models based in Seoul, St. Petersburg and New York — said the recent race to blockchain adoption by Korean retail banks can be categorized into either the institutions developing their own private blockchains or searching for hybrid options that are already available in the market. According to Kim:

“The Korean economy is heavily dependent on a few large institutions within the nation and as these institutions continue their pursuit for appropriate blockchain solution, we expect more resources to be deployed to enrich the blockchain landscape, especially towards domestic projects.”

It is worth noting both KB Kookmin and NH Savings bank came under regulatory scrutiny last year from Korea’s Financial Supervisory Service (FSS). In its joint review of the banks, the financial watchdog criticized their management of cryptocurrency transactions in regard to Anti-Money Laundering (AML) regulations.

The FSS is Korea’s integrated banking regulator that examines and supervises private lenders under the oversight of the Financial Services Commission.

Related story: State of Regulation in South Korea: Banks Required to Provide Fair Services to Crypto Exchanges

KEB Hana Bank, another household name, began offering its blockchain-based payment system called Global Royalty Network — or GLN — in Taiwan in April.

Later this year, the bank also plans to issue debit cards that double as ID cards to university students.

Using the digital ledger, the reissuing duration will be shortened to three days from the current three weeks, in case of loss. Korea University students will be the first beneficiaries of this service.

Woori Bank is also working to launch a blockchain-based international wire transfer service. The bank already has a strong presence in India and China and is now working with the Japanese bank consortium SBI Ripple Asia to prepare a pilot.  

Shadow over cryptocurrency continues

Despite these developments, there has been a lack of interest in using the technology for settlement, payment and the use of cryptocurrency.

One of Korea’s biggest crypto influencers, Hyun-sik Choi, better known as Soso to his 40,000 viewers and subscribers, believes more needs to be done:

“Korean banks are jumping into the blockchain field. While this proves there is huge interest in the technology from traditional finance, all the attempts are on the tech side. They are ignoring the cryptocurrency part.”

The longtime crypto advocate explained there are two main reasons.

The government separates cryptocurrency from the blockchain technology and only supports the latter. A smaller but definitely noticeable part is that some companies use the term blockchain more as a marketing tool rather than a real solution.

Cindicator’s Kim is hopeful the technology’s overall adoption by traditional market participants can bring about desired influence to digital money:

“We view this as a positive development for the Korean crypto market. These developments can also be seen in the light of the high interest the Korean population has in crypto assets, probably leading to banks wanting to participate in the potential boom.”

From hoodies to suits

With the spike in blockchain adoption by traditional financial institutions comes the change in the players’ demographic.

On June 11, the Korea blockchain Association announced its nomination of Gap-soo Oh, former deputy governor of the Financial Supervisory Service, as its next chairman. He is scheduled to be sworn in on June 24 during a general meeting.

As Cointelegraph has reported, 70-year-old Oh is now serving as the president of the Global Finance Society, and previously worked as deputy chief of the Standard Chartered Bank Korea, and as an external director at KB Kookmin Bank.

In recent months, more former civil servants and traditional bankers have switched over to digital assets. crypto watchers in the country are welcoming this trend.

Jun-heon Hwang — better known for his blog Coin Student — says the merging of traditional and digital finance worlds is part of a wider trend across the globe:

“Overseas, traditional financial firms have already entered the digital assets market and that includes its workforce. There are enough young CEOs in the space. To systemize blockchain incorporation, onboarding of established bankers and civil servants in this sector is not only inevitable but necessary.”

Following the money — in fiat

The strong inclination to adopt the new technology comes on the back of staunch support from Seoul.

The government of South Korea nearly doubled its projected spending on blockchain development for selected cities around the country for this calendar year from the same period last year.

In 2018, the government allocated less than 4 billion Korean won ($3.4 million) to seven blockchain projects. For this year, the allocation was expanded to a dozen projects for 8.5 billion Korean won ($7.17 million).

Whether the support for the ledger side of blockchain technology will eventually lead to a trickle-down effect on cryptocurrency in the future in South Korea remains to be seen.

For now, all eyes are on how Korean buyers will affect the global market if — or when — the government relaxes its regulations on digital assets. If the East Asian country’s influence on the price of major coins is any indication, domestic buyers are expected move with unforeseen alacrity.

News source CoinTelegraph.com

US Residents Will Lose Access to Many Altcoins on Binance Starting in September

Crypto enthusiasts living in the United States will have no trading options for a many cryptocurrencies when the major crypto exchange Binance becomes unavailable for them in September, according to a report by CryptoPotato on June 14.

The report draws this conclusion based on the following table, which shows which cryptocurrencies will still available for U.S.-based traders after Binance discontinues its U.S. service:

Former Binance options in the U.S. on other crypto exchanges

Former Binance options in the U.S. on other crypto exchanges. Source: Goomba’s Twitter

The foregoing exchanges listed are Coinbase, Bittrex, Poloniex, Kraken, HuobiUS, and eToro.

The report also highlights that, in addition to the cryptocurrencies with no trading outlet in the U.S.—the all-white rows—there are also a number of tokens listed on only one exchange after Binance drops off, including ARK, BTT, IOTA, PIVX, and ZIL.

These “endangered” exchange tokens, as well as the (temporarily) extinct tokens, will likely witness a large drop in volume, according to the report.

However, veteran cryptocurrencies such as XRP, DASH, XLM, ETC, ZRX, and ZEN should survive Binance’s departure with little issue, since they are listed on four or more of the aforementioned exchanges.

As recently reported by Cointelegraph, Binance updated its terms of use on June 14 to exclude trading on the platform in the U.S., which comes shortly after its announcement of a U.S.-exclusive fiat-to-crypto exchange.

Binance CEO Changpeng Zhao (CZ) remarked on the recent changes, implying that the restructuring will be useful in the long run:

“Some short term pains may be necessary for long term gains. And we always work hard to turn every short term pain into a long term gain.”

News source CoinTelegraph.com

BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, XLM, ADA: Price Analysis 14/06

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.

Market data is provided by the HitBTC exchange.

The eagerly awaited cryptocurrency platform Bakkt will begin testing Bitcoin futures on July 22. Its launch is closely watched because it is expected to attract institutional investors who can drive the next leg of the uptrend. The recent recovery in cryptocurrencies has already led to increased interest in Bitcoin futures trading that resulted in record high open positions.

Another project that has generated huge interest is Facebook’s stablecoin dubbed “Libra.” The social media giant has been making some high profile hirings for the project, the latest being Standard Chartered Bank’s head of public affairs Ed Bowles. It has also managed to attract investment from various known firms such as Visa, Mastercard, PayPal and Uber that have invested around $10 million each for the project.

A report by Grayscale shows that Bitcoin was the best performer between May 5 and 31. It rallied 47% while most other asset classes were reeling under the uncertainty of the US–China trade war. The second-best performing asset was the Japanese yen, which was way behind at 2.1%. This shows the uncorrelated nature of Bitcoin and how it can be an important addition to any portfolio.

BTC/USD

Bitcoin (BTC) has been sustaining above the 20-day EMA for the past two days, which is a positive sign. The bulls will now try to carry it to the recent highs of $9,053.12. A breakout of this resistance will propel the cryptocurrency to $10,000. The 20-day EMA has started to turn up once again and the RSI is inching higher into positive territory. This suggests that bulls have an advantage in the short term.

BTC/USD

However, if the BTC/USD pair turns down well before breaking out of $9,053.12, it will be in danger of forming the right shoulder of the developing head and shoulders (H&S) pattern. This bearish setup will complete only if the pair plunges below the neckline. Until then, we will not preempt a fall.

On a breakdown of the neckline, the cryptocurrency can drop to $7,413.46, which is a critical support. The 50-day SMA is also located close to this point, hence, we anticipate a strong defense of this level by the bulls, but if this support cracks, the fall can extend to $5,900.

ETH/USD

Ethereum (ETH) is range bound between $225.39 and $280. As the price is sustaining above the 20-day EMA, the bulls will attempt to push the price towards the top of the range at $280. A breakout of the range will start a new uptrend that can result in a move to $322.06 and above it to $335.

ETH/USD

On the other hand, if the ETH/USD pair turns down from $280, it can again drop to the 20-day EMA. If this level breaks down, the next support is at $225.39. The 50-day SMA is located at this level, hence, this is likely to act as strong support. Still, if the bears sink the price below $225.39, it can slump to $167.20.

The best way to trade a range is to buy near the support and sell close to the resistance. As the price is close to the center, we will not recommend a trade in it. We might suggest long positions if the cryptocurrency bounces off $225.39 or breaks out of the range.

XRP/USD

Ripple (XRP) has been struggling to stay above the 20-day EMA. This is a bearish sign as it suggests that buying dries up at higher levels. The 20-day EMA is flat and the RSI is close to the midpoint, which points to a consolidation in the short term.

XRP/USD

The XRP/USD pair has strong support in the $0.35660–$0.37835 zone. If the pair bounces off this zone, the bulls will again try to push it back above the 20-day EMA. On the other hand, if the support breaks down, the cryptocurrency will become negative and can plunge to the critical support of $0.27795. For now, traders can keep the stop loss on the long position at $0.35.

LTC/USD

Litecoin (LTC) failed to sustain above the overhead resistance of $140.3450 on June 12. We hope traders booked partial profits on their remaining long position closer to $140 as suggested in the previous analysis. The remaining position can be protected with stops just below the 20-day EMA.

LTC/USD

Usually, in a strong uptrend, the pullback lasts for one to three days. The trend in the LTC/USD pair is still bullish as both the moving averages are sloping up and the RSI is in positive territory.

The resistance line of the ascending channel will act as the first support and below it the next strong support is at the 20-day EMA. If the price rebounds from either level, the bulls will again try to scale $140.3450 and extend the rally to $158.91 and above it to $184.7940.

Conversely, if the cryptocurrency fails to bounce off the supports, it will turn negative. A fall below the 20-day EMA can drag it towards the 50-day SMA.

BCH/USD

Bitcoin Cash (BCH) broke out of the 20-day EMA on June 13 but it has not been able to pick up momentum. This shows hesitation by the bulls at higher levels. The 20-day EMA is flat and the RSI is just above 50, which points to range-bound action in the near term.

BCH/USD

Contrary to our assumption, if the BCH/USD pair picks up momentum, it can rally to $450 and above it to $481.99. However, if it fails to stay above the 20-day EMA, it can again correct to $363.71. The 50-day SMA is also located at this level, hence, we anticipate strong buying around this support. We will wait for a reliable buy setup to form before suggesting a trade in it.

EOS/USD

EOS continues to trade between the 20-day EMA and the 50-day SMA. This shows a balance between both the bulls and the bears. The balance will tilt in favor of the bulls if the price breaks out of the overhead resistance at $6.8299. Following the breakout, the price can rise to the resistance line of the ascending channel and above it to $8.6503. Therefore we maintain the buy recommendation given in an earlier analysis.

EOS/USD

If the EOS/USD pair plummets below the 50-day SMA and the support line of the ascending channel, the bears will be at an advantage. The next support to watch on the downside is $4.4930 and below it $3.8723. Currently, the 20-day EMA is marginally sloping down and the RSI is just below 50. This suggests that the consolidation might continue for a few more days.

BNB/USD

Binance Coin (BNB) moved close to our first target of $38.6463356 but could not reach it. Profit booking near the highs quickly dragged it lower. This is a negative sign as it shows nervousness by the bulls at higher levels.

BNB/USD

The first support at the 20-day EMA has failed to provide support. The BNB/USD pair can now plunge to the 50-day SMA. This is an important level to watch as it has not been breached convincingly, barring the fall on March 9. Therefore, traders who are long can retain the stop loss at $28. The pair will pick up momentum if it bounces off the support and ascends the overhead resistance at $38.6463356.

BSV/USD

Bitcoin SV (BSV) rebounded from the 38.2% Fibonacci retracement level of the recent rally on June 13. The bounce carried it above the downtrend line but it has not been able to pick up momentum. This shows a lack of buyers at higher levels.

BSV/USD

If the BSV/USD pair falls below the downtrend line once again, it can correct to $175. A breakdown of this support will signal further selling that can drag the price to $152.015, which is 50% retracement level of the recent rally.

On the contrary, if the pair finds support at the downtrend line, the bulls will try to push it to $240 and above it to the lifetime highs. Both the moving averages are trending up and the RSI is in positive territory. This suggests that bulls have the upper hand. However, we do not find any reliable buy setup with a good risk to reward ratio, hence, we are not proposing a trade in it.

XLM/USD

Stellar (XLM) is struggling to stay above the 20-day EMA. Though the bulls pushed the price above the 20-day EMA on June 12, they could not sustain it. The price dropped back below the 20-day EMA on the next day itself. This shows a lack of buyers at higher levels.

XLM/USD

We spot a descending triangle pattern in the short term that will complete on a breakdown and close (UTC time frame) below the support at $0.11507853. This bearish setup has a target objective of $0.06678607 but we anticipate strong buying at $0.08558676.

Our negative view will be invalidated if the XLM/USD pair breaks out of the descending triangle. A failure of a bearish pattern is a bullish sign, hence, a rally to $0.14861760 is possible. Above this level, the pair will complete an inverse H&S pattern that has a target objective of $0.22466773. We will wait for the price to close (UTC time frame) above $0.14861760 before recommending a long position.

ADA/USD

Cardano (ADA) is facing stiff resistance at $0.10. It again turned back from this level on June 13. This is the fifth occasion that the bulls have failed to ascend the overhead resistance. We expect the bulls to defend the 20-day EMA and attempt a breakout of $0.10 once again. If successful, it will complete a rounding bottom pattern that has a target objective of $0.22466773. Therefore, traders can buy on a close (UTC time frame) above $0.10 and keep a stop loss of $0.0730.

ADA/USD

Contrary to our assumption, if the ADA/USD pair dips below the 20-day EMA, it can correct to the 50-day SMA, which is strong support. If this support gives way, the pair can plummet to $0.057898. Currently, both the moving averages are flat and the RSI is close to the midpoint, which points to range-bound action for the next few days.

Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.

News source CoinTelegraph.com

Cryptocurrency Exchange Bitfinex Announces a LEO Token Burn Initiative

Cryptocurrency exchange Bitfinex announced a LEO burn initiative in a Medium post published on June 14.

Per the announcement, the initiative will see the exchange’s parent company iFinex funnel its gross revenue into purchasing LEO tokens at market prices in what the post refers to as the UNUS SED LEO burn mechanism. This new system will launch alongside the LEO Transparency Dashboard, which will reportedly provide real-time insights into all collected platform fees and LEO token burns. The company explains its reasoning:

“We are doing this to remove the possibility of uncertainty from LEO holders, subsequently allowing our community to track iFinex revenues, as well as LEO token burn quantities, in an open manner.”

At first, the system will only involve revenue from trading fees, but the company promises to expand it to all other revenue streams, including deposit and withdrawal fees, funding fees and other services. The post further notes that the initiative will include entities such as EOSfinex, and that the tokens will be bought “at market rates and on an hourly basis, equal to a minimum of 27% of consolidated revenues of iFinex.”

The burn mechanism is set to stop only when there are no more tokens in circulation. The LEO tokens that are used to pay trading fees on the exchange will also reportedly be burned, and at least 80% of the funds recovered from the Bitfinex hack will also be used to buy and burn them.

As Cointelegraph reported at the time, Bitfinex unveiled its exchange utility token UNUS SED LEO on May 17.

Earlier in May, Bitfinex and the affiliated stablecoin Tether were subject to legal investigation in New York state for misrepresenting their reserves.

News source CoinTelegraph.com

Facebook’s Crypto Project Will Be A Milestone According to RBC

Global investment bank RBC Capital Markets believes that Facebook’s upcoming crypto project will be a major milestone in the firm’s history, CNBC reports June 14.

In a note to investors, RBC Capital analysts Mark Mahaney and Zachary Schwartzman reportedly said that Facebook’s long-rumored stablecoin project “may prove to be one of the most important initiatives in the history of the company.”

A part of the Royal Bank of Canada (RBC), RBC Capital predicted that the social media giant’s cryptocurrency project will “unlock new engagement and revenue streams.”

According to the report, RBC Capital expects the project’s white paper to be released on June 18, joining other sources that expressed similar expectations earlier this month. In the note to investors, the investment bank promised to provide an analysis of the paper as soon as it is released in order to “help investors analyze the underlying cryptoeconomics of the token.”

To date, RBC Capital has predicted that Facebook will use its crypto initiative to facilitate three spheres of its business: applications and gaming, payments, and commerce. Earlier this month, CNBC reported that Facebook will allow its employees to receive part of their salary in its internal cryptocurrency.

Meanwhile, RBC Capital also has an outperform rating on Facebook, with a price target of $250 per share. At press time, Facebook’s share rose around 1.8% to trade at $180.4, up more than 35% over the past year, according to CNBC.

First reported by Bloomberg in late 2018, Facebook’s upcoming stablecoin has been a major issue discussed in crypto community and has seen increased coverage by crypto media outlets so far.

Earlier today, the Financial Times reported that Facebook hired Standard Chartered Bank’s head of public affairs Ed Bowles for its cryptocurrency project. Yesterday, the Wall Street Journal published an article revealing that Facebook’s crypto project was supported by over a dozen companies including Visa, Mastercard, PayPal and Uber.

News source CoinTelegraph.com

Spanish Law Enforcement Arrests 35 Suspects for Bank Fraud, BTC Money Laundering

Spanish law enforcement arrested 35 people for allegedly counterfeiting banking cards and laundering the proceeds through bitcoin (BTC), local media La Verdad reports on June 14.

Per the report, the organization obtained over €600,000 ($674,000) and laundered over €1 million ($1.2 million) using bitcoin. Furthermore, the Command of Alicante reportedly solved a total of 1,020 connected cybercrimes during the operation. The alleged actions of the suspects — who are from Equatorial Guinea, Spain, Nigeria, Cameroon and Morocco — had a total of 219 victims in Spain, with 20 more in Israel, Denmark, Germany, France and Greece.

According to La Verdad, law enforcement noticed the unauthorized use of 104 banking cards in Spain and 12 other countries. The investigations were then spurred by a complaint filed by a car rental company that detected unauthorized use of their banking cards on online services.

The group allegedly operated in three different ways: phishing via email (pretending to be a trustworthy individual and asking for banking credentials), cloning the physical cards, or obtaining credentials from credit card receipts in what is often referred to as credit card bin attack fraud.

The group reportedly paid for hotels, flights, train tickets and rental vehicles with the cards obtained this way, ordering them for its customers for much lower prices. Companies under the group’s control located in Estonia, the United Kingdom and Finland bought bitcoin with the profits.

As Cointelegraph reported at the time, eight people were arrested in Spain for allegedly operating a money laundering scheme involving cryptocurrencies in March.

As Cointelegraph explained in a recently published analysis, law enforcement groups are also taking action against cryptocurrency anonymization services known as cryptocurrency mixers, or tumblers.

News source CoinTelegraph.com

Binance to Stop Serving US Traders Following Announcement of US-Dedicated Platform

Major crypto exchange Binance announced today, June 14, that it has updated its terms of use, which notably includes a restriction of services to United States-based individual and corporate traders. The restriction follows yesterday’s news that the company is launching a separate, fully regulated fiat-to-crypto platform for the U.S. market.

Today’s announcement provides a timeline for the new terms to come into effect, specifying that:

“After 90 days, effective on 2019/09/12 [12th September 2019], users who are not in accordance with Binance’s Terms of Use will continue to have access to their wallets and funds, but will no longer be able to trade or deposit on Binance.com.”

While the use of a virtual private network could ostensibly allow U.S. users to circumvent the new restrictions, withdrawals for non-verified users remain capped at up to 2 bitcoin (BTC) per 24 hours— worth $16,482 to press time. Sums above this threshold would require users to provide evidence that they are complying with the platform’s Terms of Use.

In a tweet published yesterday, Binance CEO Changpeng Zhao (CZ) said of the new exchange’s evolving global structure:

“Some short term pains may be necessary for long term gains. And we always work hard to turn every short term pain into a long term gain.”

Earlier this month, it was reported that the decentralized exchange (DEX) developed by Binance will use geo-blocking to restrict website access to users in 29 countries, including the U.S.

As Cointelegraph has previously reported, CZ revealed in September 2018 that the company intends to launch five to ten fiat-to-crypto exchanges — two per continent — within one year, without specifying the exact locations.

The firm has to date launched fiat-crypto platforms in Uganda, Singapore and Jersey, with support for a limited range of cryptocurrencies.

As reported yesterday, Binance is establishing its U.S. platform in partnership with BAM Trading Services, which is approved by the Financial Crimes Enforcement Network (FinCEN).

In June, Binance revealed that it would be issuing its own stablecoins pegged to different fiat currencies, but with the exception of the U.S. dollar.

In the wider crypto sector, the Huobi Group — operator of the flagship Huobi Global crypto exchangelaunched a U.S.-based strategic partner trading platform last year, initially dubbed HBUS, but later rebranded to Huobi.com.

News source CoinTelegraph.com

WSJ: Facebook Crypto Project Seals $10M Investment Each From Visa, Mastercard, Paypal, Uber

Facebook has allegedly sealed backing from over a dozen firms that include Visa, Mastercard, PayPal and Uber for its soon-to-be-unveiled cryptocurrency project. The news was reported by the Wall Street Journal (WSJ) on June 13.

Source ostensibly familiar with the matter told the WSJ that the firms — extending across the finance, e-commerce, venture capital and telecoms industries — have each invested around $10 million in a consortium that will govern Facebook’s forthcoming digital token, dubbed Libra.  

The WSJ’s sources reiterated details that had previously surfaced in regard to the highly secretive project, notably that the social media giant’s forthcoming crypto will allegedly be a fiat-pegged stablecoin, pegged to a basket of national fiat currencies to avoid price volatility.

Talks with some of the investment partners remain ongoing, the sources claimed, and the eventual list of consortium members could reportedly change. The consortium itself is allegedly to known as the Libra Association, the report adds.

The report claims that several members have expressed concerns that Facebook’s token could be exploited for money laundering or terror financing purposes.

WSJ reports that purportedly neither Facebook, nor individual consortium members, will control the cryptocurrency, although some members could operate nodes on the network that underlies the crypto payments network — again according to sources allegedly familiar with the setup.

In addition to the aforementioned companies, fintech firm Stripe, travel reservations site Booking.com and e-commerce site MercadoLibre have all signed on to the project, according to several of the sources. Consortium members have all ostensibly been asked to co-sign the coin’s white paper, allegedly set to be published on June 18.

As Cointelegraph has reported, rumors of Facebook’s plans to integrate a cryptocurrency for WhatsApp users first surfaced in December 2018, with further alleged details of the clandestine project emerging in February.

Notably, Facebook purportedly plans to rehaul its messaging infrastructure and integrate its three wholly-owned apps — WhatsApp, Messenger and Instagram — under one canopy, bringing its cryptocurrency potential exposure to a combined 2.7 billion users each month.

In May, Facebook reportedly acquired the “Libra” trademark, and there are thought to be around 100 people working on the project, with over 40 listings for the workforce still open.  

Earlier this month, Cointelegraph reported that Facebook employees will allegedly be able to receive part of their salary in the coin.

News source CoinTelegraph.com