Coinbase Admits Being Wrong After Claiming that It Got an Approval from the SEC

coinbase lied about sec

The cryptocurrency giant Coinbase has recently bought the platform Earn.com, and it is not going to stop there. This time the exchange is planning to purchase three smaller companies to expand even further.

The businesses that will soon belong to the exchange are:

  • Digital Wealth LLC;
  • Keystone Capital Corp;
  • Venovate Marketplace Inc.

However, for some reason, the representatives of Coinbase decided that they need the consent of the Securities and Exchange Commission for such an action. They even did an interview with Bloomberg where it was mentioned that the SEC gave Coinbase “the green light”.

In reality it turned out that not only the Commission did not provide any approvals, the approval wasn’t needed at all. The representatives of the company hurried to address the issue:

It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process.

Although, the SEC is strictly watching over the cryptocurrency industry, in this case their services were not necessary. The spokesperson of the SEC stated that the plans for purchasing were discussed with Coinbase informally.

We would like to remind you that Coinbase has recently added new services to its growing list.

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The List of Bitcoin Mainstream Trends Which Will Dominate in 2019

Bitcoin is one of the most famous cryptocurrencies in the world. It is actually the first one, thus, no matter what might be, it has already gone down in history. Even though the cryptocurrency may not be that popular right now, due to various reason, some changes are already inevitable, hence, let us just check on trends which will become a part of everyday life in 2019.

1. Bitcoin ATMs

The number of Bitcoin ATMs is growing rapidly. It is a kiosk which allows a person to buy/sell Bitcoins in cash or by credit card. They actually look like an ordinary terminal, yet, it is connected not to bank account, but to Bitcoin exchange. The number of Bitcoin ATMs in the world accounts for 4292 at the time of writing.

Source: www.statista.com

Such ATMs will definitely encourage people to use cryptocurrency, since now it becomes more understandable for ordinary people. If people get accustomed to use Bitcoin ATMs, then crypto will see a bright future.

2. Central banks and Bitcoin

Some people do not want to get involved in crypto as it lacks regulation, including bank regulation. However, in 2019, one of Bitcoin trends may become partnership between central banks and cryptocurrency.

Several banks have already introduced systems how to work with crypto. Bank of America, for example, has officially patented a system for saving crypto actives for significant corporations. Moreover, this week, one of the biggest American banks, JPMorgan Chase & Co, has announced that it developed its own digital coin – JPM Coin.

Perhaps, such implementations will bring positive effect on the relationships between crypto and financial institutions.

3. Bitcoin in smartphones

Since the beginning of the third millennium, a cell phone has become an integral part of our everyday life. By using a smartphone we can do almost everything that is connected to our work, study, leisure, or hobby. Financial transactions, including crypto operations, are no exception.

On May, 2018, Huawei Technologies Corporation provided users of its smartphones with the opportunity to use Bitcoin wallet BTC.com. At the end of the past year, HTC company released the smartphone Exodus, powered by blockchain. A person can only purchase the phone with digital currencies.

It is too early to say whether these phones will be successful and useful or not, yet still it is very important that world is trying to meet the needs of everyone.

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Bitcoin Price Analysis: The Representatives of JP Morgan and Fundstrat Share Their Opinions About Bitcoin’s Future

Another week has passed, yet Bitcoin still shows quite plain dynamics on the graphics. In fact, its price has not changed significantly since January 10th. Bitcoin price is $3459 at the time of writing.

Source: CoinMarketCap

Since Bitcoin’s price has recently stabilized, many institutional players began changing their attitudes towards cryptocurrency, let us see what the representatives of global companies think.

JPMorgan

The Global Market Strategist at JPMorgan, Nikolaos Panigirtzoglou, reckons that due to Bitcoin’s stagnation many big players will return to the industry. The volatility has “calmed down” and it means that investors can give Bitcoin second chance. He also said:

“The stability that we are seeing right now in the cryptocurrency market is setting the stage for more participation by institutional investors in the future. The cryptocurrency market was a new market. It went through a bubble phase [and] the burst.”

In his interview to CNBC, he stated that the cryptocurrency could not grow, because it was not regulated, but now the situation can differ.

Fundstrat

Wall Street research firm, Fundstrat Global Advisors, is sure that the cryptocurrency may see  new lows soon.

“The price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows,” Robert Sluymer, the spokesman of Fundstrat, said.

In addition, Sluymer stated that the price can vary from $4200 to $3100 or ever lower. If it suddenly hits more than $4000, it would mark a 25% increase over today’s prevailing prices. However, Robert emphasized that the technical fundamentals of Bitcoin remain weak, so the price can have downward tendency to the price mark of $3100 or even lower – $2700. The representatives of Fundstrat have also suggested that 250 small-cap coins are at risk, as they all are vulnerable to market jumps.

There are some reasons why Bitcoin price may fall down:

  1. Lunar New Year. During this period, Asian traders have relatively weak activity which may bring consequences to Bitcoin’s rate. The unofficial holidays will last till February 19.
  2. Uncertainty with the US budget. The Congress and the President of the US cannot reach an agreement, this will have influence on financial markets.
  3. Trade war between US and China.

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Huobi Launches New Fiat-To-Crypto Exchange: Full Analysis Of Forthcoming Platform

Huobi decided to expand its market in the Western Hemisphere, therefore, US-based subsidiary Huobi.com launches a new fiat-to crypto exchange, which will operate in the USA.

Preconditions for launching the exchange

Creating a new platform sounds quite weird especially against the background of drastic downfall of cryptocurrency prices, which led to decrease in exchange volumes. Yet, Huobi, being in top three crypto exchange by 24-hour trading volume, seems not to care about it at all.

The company has recently announced a large-scale rebranding of his US strategic partner HBUS. Later, the company adopted Huobi brand and renamed itself into Huobi.com. Now Huobi.com is opened for American customers, and it also has started a partnership with Prime Trust not long ago. The latter is a Nevada-based trust company that provides services of withdrawal and deposits for the users.

With this partnership and the fact that other crypto exchanges are rolling out support for international fiat currencies, Huobi.com made a decision to grow up  and go beyond crypto-crypto transactions.

What do you need to know about the platform?

Firstly, the company plans to add three major coins to the platform, these are Bitcoin (BTC), Ethereum (ETH) and Tether (USDT), they will be tied to US dollar. The listing of other pairs will depend on customer response.

Secondly, the exchange set minimum deposit and withdrawal limit, which is $100. Though the users are bound to register with Prime Trust in order to deposit USD to the exchange. The custodial account requires the completion of Know-Your-Customer (KYC) identity verification checks.

We want to remind you that Huobi plans to launch its own stablecoin in the first half of 2019. Singapore-based cryptocurrency exchange has already a substitute for stablecoin, namely HUSD; it supports four US-regulated stablecoins: Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC), and Gemini Dollar (GUSD). Unfortunately, the report did not specify which currency the stablecoin will be pegged to.

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SEC is Looking for Partners to Collect Blockchain Data

The U.S. Securities and Exchange Commission (SEC) have published an announcement that they are in search of companies that are involved in analyzing blockchain data.

According to official information, the SEC is looking for both large and small companies. As part of the cooperation, the regulator expects companies to provide data on the “most widely used” blockchain registers based on the volume of transactions in order to “monitor risk and improve compliance” associated with cryptocurrencies.

In addition, the companies will have to provide the Commission with information on how this data is extracted, transformed and verified.

Those who would like to cooperate with the SEC should send an application by e-mail with a brief description of their activities until February 14.

We want to remind you:

Does Blockchain Bring a Threat to the US National Security?

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Iran Allegedly Plans To Adopt State-Backed Cryptocurrency Today

The U.S-imposed sanctions continue bringing trouble not only to China, but also to Iran, so much that the Islamic Republic intends to adopt its own state-backed cryptocurrency today, January 29.

Reportedly, the Iranian government plans to make an announcement regarding to the digital assets at the Electronic Banking and Payment Systems Conference, which takes place in Tehran today. Unfortunately, the financial system was damaged, Iranian financial institutions are not able to conduct transactions and relate with the rest of the world due to the sanctions’ enforcement. From the citizens point of view, the possible variant to avoid a full financial blockage is to adopt crypto.

According to the news outlet Al Jazeera, the cryptocurrency, called Rial, will be rolled out in two phases.

  1. It will be utilized for making payments between Iranian-based commercial banks and other internal organizations in the domestic crypto space.
  2. Public access to the currency to make payments for local goods and services.

We remind you that the sanctions were imposed by the Donald Trump administration due to “malign activities” being carried out by the state. The biggest restriction is inability to use SWIFT system. Citizens are unable to make and receive payments for foreign trade activities and a wide range of other international transactions. That is why government deepened into research for other possible variants of conducting the cross-border transactions.

The Opposition Leader of Venezuela Fancies Bitcoin Over Petro

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Wall Street Supports Blockchain, Not Crypto At Davos

This year, at The World Economic Forum at Davos, one of the most urgent problems, alongside with Brexit and global climate warming, is the role of cryptocurrency in the world. Some important individuals do not support crypto at all, considering the blockchain technology is much more helpful for the world. One of those is PayPal CEO, Dan Schulman. He has given an interview to CNBC recently, where he expressed skepticism towards crypto.

PayPal CEO: “We’re not seeing many retails at all accept any of the cryptocurrencies”

The Wall Street representatives at the Forum also have stuck to this idea – “blockchain, not crypto”. Joseph Young, a leading crypto analyst, compared crypto and blockchain to airplanes and engines, saying “airplanes will go to zero while engines have potential.”

Several blockchain companies do not trust crypto as well. Jeff Schumacher, the founder of BCG Digital Ventures, thinks BTC may fall to zero. He believes that blockchain technologies hold value, but noted that such innovations shouldn’t be applied to currencies.

We remind you

IBM Will Partner Up with a Bunch of Major Companies to Help Healthcare Using Blockchain

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