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The Monthly Drop
 
 
Covering A to Z with Algoz
 
 
 
 

THE BIGGEST WAVES HITTING THE CRYPTO SHORE

SEPTEMBER 2020

 

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HIGHLIGHTS
  • The word, decentralized, loses its meaning more and more everyday. SO. MUCH. REGULATION. 🤯
  • Largest hack in recorded crypto history 👨‍✈️🕵️
  • Crypto bank coming our way 😱
 
 

30 DAYS IN 1

BIGGEST TRADING NEWS & MORE

 

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Regulation Everywhere. The proposal of the supposedly ‘historic’ EU crypto legislation, Markets in Crypto Assets (MiCA), was leaked earlier in September. The 168 page proposal is expected to be implemented in its entirety by 2024 across the EU/EEA. Fine points aside, the larger & favorably the largest motive of MiCA is to standardize and align digital assets & digital finance with existing regulated financial instruments and to make crypto assets a legally identifiable financial asset. Switzerland, being a non-member of the EU & EEA, has successfully passed amendments to 6 active financial laws, which will further allineate with the Blockchain Act. Similar to MiCA in motive, the US introduced two ‘pro-growth policies for the crypto ecosystem & economy’: The Securities Clarity Act (SCA) and the Digital Commodity Exchange Act (DCEA). The SCA will ‘provide clarity about how securities law applies to digital assets’. While the DCEA will ‘create a uniform path to registration for crypto exchanges’.

 

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Astronomic Hack. The largest hack in recorded crypto history took place on Kucoin, displacing over $281 million worth of crypto assets! However, the Kucoin team have acted promptly and with great efficiency, having managed to recover a bit over $200 million.

 

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First U.S. Crypto Bank 🏦. The third largest exchange by trading volume (CoinMarketCap), Kraken, has received a U.S. bank charter under the state of Wyoming, which will allow the exchange to establish the the world’s first custody bank for cryptocurrencies! The bank will be formed as a Special Purpose Depository Institution (SPDI) and will initially be available to U.S. residents (ONLY) through an online and mobile-first banking model. Customers of the bank can expect to receive the following services for their digital assets: custody, deposit accounts, wire transfers, & funding services.

 

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Bitcoin CEO. MicroStrategy’s Michael Saylor has now been given the nickname, Bitcoin CEO, and rightfully so. “We just had the awful realization that we were sitting on top of a $500 million ice cube that’s melting.” In fear that MicroStrategy’s $500 million worth of excess capital would be wrecked and devalued due to severe inflation rates and the weakening dollar, the Bitcoin CEO turned to the “godfather” of asset to make it the reserve asset of the publicly traded company. As reported in last month’s DROP, the firm had acquired $250 million worth of BTC. But it seems like the train is still moving! On September 14th, 16,796 additional BTC was acquired by the firm, making their purchase total to 38,250 BTC. The firm’s reserve asset was acquired at the total value of $425 million.

Saylor’s journey to becoming THE Bitcoin CEO was a slow & pained one. Thanks to the reader’s entertainment heaven and teller’s eventual hell, Twitter, we now know that Saylor was a complete non-believer!

   

 

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Report of the Month 📎. Want to know how many crypto asset accounts were opened since 2016? Where are crypto services providers located? How common is crypto in different regions and how many users are there, in fact? All this and more industry insights can be found in the 3rd edition of Cambridge’s (Center of Alternative Finance, University of Cambridge) Global Cryptoasset Benchmarking Study! We, at Algoz, had the pleasure of sharing our insights with the esteemed institute to bring the most interesting insights and data on our market.   

 

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Jump On-Board. The first-ever and newly launched completely decentralized derivatives exchange (DEX), Serum by FTX, will be backed by veteran trading firm, Jump Trading, and will also be receiving its liquidity and market making services. Active in the crypto space, this will be Jump’s inauguration into the DeFi space, which has been gaining steady but speedy momentum this year.

 

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National e-currency. The new Stabilizer. The fiat-denominated assets are penetrating into global powerful federal systems more and more day by day. U.S. national banks & federal savings associations can now service stablecoins issuers. Despite many limitations to the service provided, stablecoins issuers with a hosted-wallet can now place assets in a reserve account. Although experimental and juvenile in its stage, the U.S. Federal Reserve along with other regional federal banks have been actively researching and assessing the viability of a CBDC for the United States of America. Not too far away from the continent, Bahamas’s CBDC, the Sand Dollar, will be going public before the end of this year! In the coming decade, there is going to be a war-like global competition for the greatest federal e-currency, with the rate at which the concept is being adopted around the world. But at the end of the day, a currency which has credibility, is convertible and is international will rein supreme.

 

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Too Good to Be True. The just lifting of the crypto ban in India, earlier this year, might not see the light of day soon! Just when the ball began rolling and India became recognized as one of the fastest growing user-group in the world, word on the street is that a council of ministers have been discussing a new bill which would effectively boycott crypto trading in the country.

 

THE ALGOZ-CAL

UPCOMING BLOCKCHAIN & CRYPTO EVENTS

 

TOKEN2049 | Hong Kong | OCT 7 - 8, 2020

AIBC SUMMIT | Malta | NOV 18 - 19, 2020

PARIS BLOCKCHAIN WEEK SUMMIT | Paris | DEC 9 - 10, 2020

 

 

The Last Drop

 

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