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| Hey Insider! Happy Friday, and welcome to the Inside Cryptocurrency newsletter! Today’s issue again includes several biggest stories from the crypto market, including JPMorgan’s new blockchain-based euro payments, Crypto.com’s registration in Spain, Nevada regulators’ cease and desist order against the crypto custodian Prime Trust, and more. I hope you enjoy your reading and have a great weekend! Doğa
p/dogayurduneri | |
| 1 | | In a recent interview with the New York Post, the U.S. presidential candidate Robert F. Kennedy Jr. (RFK Jr.) said he would ensure there are policies supporting Bitcoin (BTC) and the freedom to transact when elected. The politician also stated that he would allow only the narrowest controls on the leading cryptocurrency to prevent money laundering. More: - On the other hand, RFK Jr. underlined that he is against central bank digital currencies (CBDC) since he sees them as an instrument of control, oppression, and abuse.
- The U.S. presidential candidate also showed his support for Bitcoin in May during his appearance at the Bitcoin 2023 conference in Miami.
- During the event, RFK Jr. praised Bitcoin as an exercise in democracy and freedom.
- Kennedy Jr. also became the first politician in U.S. history to accept campaign donations in Bitcoin.
- Besides, the crypto-friendly Democratic candidate previously criticized U.S. President Joe Biden's administration for its practices that hobble the crypto industry and drive innovation elsewhere with a strict regulatory approach.
- RFK Jr. is the nephew of the 35th President of the U.S., John F. Kennedy.
Zoom Out: - Over the last several months, many crypto firms, including Binance, Coinbase, Bittrex, Kraken, and Gemini, have come under increased scrutiny by U.S. regulators such as the Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS), and the Commodity Futures Trading Commission (CFTC).
- Similarly to RFK Jr., many U.S. lawmakers, including Florida Gov. Ron DeSantis and Sen. Ted Cruz from Texas, have recently argued that a potential CBDC would promote government surveillance and violate the privacy rights of American citizens.
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| 2 | | 
What the numbers say: A recent investor survey conducted with 5,519 Aussie adults by the Australian Securities Exchange (ASX) has revealed the breakdown of crypto investors in the country. 15% of survey participants reported crypto holdings. The poll results also showed that wealth accumulators aged between 25 and 49 currently make up the majority of the crypto investors in Australia, with a 69% rate. Pre-retirees aged 50 to 64 have become the second prominent group with 15%, while the next generation aged 18 to 24 got a 13% share of the cake. Retirees over 65 have become the investor group with the least crypto investment. Details: The poll also pointed out that wealth accumulators averagely invest $7,200 in cryptocurrencies, accounting for 7% of their total portfolio. In the median amount, wealth accumulators were respectively followed by pre-retirees, next generation, and retirees. Relevance: Over the last months, the Australian crypto market hit the headlines with restrictions from conventional financial companies, contrary to the traditional finance (TradFi) influx to the crypto industry in other parts of the world, including the U.S. and Europe. In May, Australian bank Westpac blocked its clients from making payments to some crypto exchanges to reduce losses from scams. Earlier in June, Australia's largest bank, Commonwealth Bank of Australia (CBA), also banned some payments to certain crypto exchanges as part of its new anti-scam policies. Similarly, Aussie payments provider Cuscal recently started imposing new banking restrictions on crypto exchanges in Australia through its partner Zepto. Brands that should care: The restrictions impacted many crypto exchanges, including Binance, due to their partnerships with these firms as an intermediary institution. Most recently, Binance, the world's largest crypto exchange by trading volume, had to suspend Australian dollar (AUD) deposits and withdrawals through bank transfer, citing that the local partners stopped supporting the exchange. The platform had worked with both Westpac and Zepto in Australia. | | | |
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| 3 | | The U.S. state of Nevada's financial regulator, the Nevada Financial Institutions Division (NFID), has issued a cease-and-desist order against the crypto custodian Prime Trust after reviewing the company's solvency. The agency said the order prevents Prime Trust from accepting funds from existing and new customers. More: - Following the order, Prime Trust had to halt deposits and withdrawals in both crypto and fiat currencies, affecting several partners like Stably and Coinmetro.
- The move came shortly after digital asset trust company BitGo terminated its acquisition deal with Prime Trust.
- The two firms initially reached an agreement after Prime Trust faced financial difficulties due to its exposure to the bankrupt crypto lender Celsius.
- In the order, the NFID stated that the company failed to safeguard customer assets under custody, and it is not in a financial situation that allows it to meet customer withdrawals.
- The regulator also underlined that Prime Trust's financial state is currently at a critically deficient level, saying the firm is now in an unsafe and unsound condition.
- The agency further said the custodian is currently at a substantial deficit or is insolvent.
- Prime Trust has 30 days to request a hearing.
Zoom Out: - On the other hand, Prime Trust's several partners, including the stablecoin issuer TrueUSD (TUSD) and the crypto-focused financial institution HAYVN said they have no exposure to Prime Trust, and their operations continue to function as normal.
- Prime Trust's subsidiary Banq also recently filed for Chapter 11 bankruptcy protection in the U.S. District Court of Nevada.
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| 4 | | JPMorgan Chase & Co., the world's largest bank by market cap, has expanded its blockchain-based JPM Coin system to payments in euros for institutional clients. The system previously allowed only dollar-denominated payments. More: - The first euro payment on JPM Coin was conducted by German tech giant Siemens AG.
- JPM Coin is a blockchain-based application launched in 2019 to offer an alternative payment system on blockchain.
- Since its launch, the platform has processed around $300B of transactions.
- The system now allows corporate clients to move dollars or euros to and from their JPMorgan accounts worldwide.
- The institutional clients can also make payments to the bank's other customers using blockchain through JPM Coin.
- Besides, the system processes payments instantly, differently from transactions on traditional payment rails that typically process payments only during business hours.
Zoom Out: - JPMorgan has launched many high-profile projects so far to bring blockchain technology to traditional finance (TradFi) and become one of the few companies that managed to put some of these projects to commercial use among its rivals.
- Most recently, the banking giant also announced its plans to launch a blockchain-based platform to process interbank dollar transactions in India in partnership with six local banks.
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| 5 | | Singapore-based crypto exchange Crypto.com has obtained a license in Spain, registering as a virtual asset service provider with the Bank of Spain, the country's central bank. The approval will allow Crypto.com to offer a range of crypto-related services and products to Spanish users. More: - For registration, the platform had to undergo a comprehensive review of its compliance with the local anti-money laundering regulations and other financial crimes rules.
- Crypto.com CEO Kris Marszalek said the latest registration demonstrates their commitment to compliance and working with regulators while responsibly improving crypto and blockchain technology.
- The approval came several weeks after the company received a license in Singapore from the city-state's financial market regulator to legally offer its digital asset services.
- In addition to Spain and Singapore, the firm also has regulatory approvals in France, the U.K., Dubai, South Korea, Australia, Italy, Greece, and the Cayman Islands, along with a pre-registration undertaking with the Canadian regulators.
Zoom Out: - The Spanish central bank opened registrations for crypto service providers in 2021.
- Since then, several other crypto exchanges, including Binance and Bitstamp, were also registered with the regulator.
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| 6 | | Crypto and stock trading app Robinhood has acquired credit card startup X1 for $95M in cash. The acquisition deal is expected to be closed by the end of September. More: - X1 offers credit cards based on the customer's income instead of the credit score.
- The startup does not get an annual fee for the cards, charges no late or foreign transaction fees, and rewards users with points.
- The firm's offerings also include free trial and single-use credit cards.
- In a statement, Robinhood said the move is an important step to broaden its product offerings and deepen its relationship with existing customers.
- The new business within Robinhood will be overseen by X1 co-founders Deepak Rao and Siddharth Batra.
- Rao will also serve as general manager of the credit card division in Robinhood.
Zoom Out: - Robinhood already offers debit cards to its customers.
- The deal has become the company's sixth acquisition within the last four years after MarketSnacks, Cove Markets, Binc, Say Technologies, and Ziglu.
- Since its launch in 2020, X1 has raised $62M in funding in total.
NOTE: Inside.com founder and CEO Jason Calacanis is an investor in Robinhood. | | | |
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- Japan's largest bank, Mitsubishi UFJ Financial Group Inc. (MUFG), has begun talks with crypto firms to issue stablecoins through its blockchain platform.
- The largest U.S. crypto exchange Coinbase's CEO, Brian Armstrong, has stated that they want Coinbase to be a super-app one day.
- Crypto exchange Gemini has launched a staking service for Ether (ETH) in the U.K., expanding its Gemini Staking Pro product to the country.
- Brazilian lawmaker Alfredo Gaspar has requested the summoning of Guilherme Haddad Nazar, General Manager of Binance Brazil, to appear before the parliament as part of an ongoing investigation.
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 | Staff Writer | | Doga is a tech and science editor who has been writing news for nearly 10 years. She worked for leading tech platforms and mainstrem media channels as an editor and presenter throughout his career. Then, she carried her know-how to more than one platform. She is a part-time cat lover and binge-watcher, and also fond of science, space, and emerging tech. She always has a story to tell. She is a bit addict to the laughter and -unfortunately- the '90s culture. | | This newsletter was edited by Aaron Crutchfield | |
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