New York Department of Financial Services superintendent Maria Vullo defended regulators’ actions in the crypto space during a panel discussion.
Archives for June 7, 2018
U.S. Securities and Exchange Commission (SEC) chairman Jay Clayton states that the SEC will not be bending the rules anytime soon when it comes to cryptocurrencies and that while bitcoin remains a commodity, all initial coin offering (ICO) tokens — or coins offered through a fundraising process — classify as securities.
“We are not going to do any violence to the traditional definition of a security that has worked for a long time,” he explained to CNBC. “There’s no need to change the definition. A token, a digital asset, where I give you my money and you go off and make a venture, and in return for giving you my money I say ‘you can get a return’[;] that is a security and we can regulate that. We regulate the offering of that security and regulate the trading of that security.”
The fight has been ongoing since April of this year, when the Venture Capital Working Group — an association of lawyers, traders and crypto enthusiasts alike — gathered to meet with the SEC and assist regulators in viewing virtual currencies as “utility tokens” rather than securities.
Utility tokens often garner more practical uses than securities and allow customers direct access to a company’s products or services. While utilities are generally exempt from SEC rules, securities, on the other hand, often represent stakes in a company’s offerings. Users can garner capital or profit by investing in securities, which makes them subject to strict regulatory scrutiny.
One of the biggest questions crypto-investors have had is whether ether — the world’s second-largest cryptocurrency — would fall under this category. In its earliest days, ether was originally offered as a presale (now ICO) token, but it has since become highly decentralized, which could potentially bar it from “security status.”
Clayton says that contrary to popular belief, the SEC is willing to assist ICOs to enter a plane of legitimacy, granted their organizers are willing to comply with the organization’s rules.
“If you have an ICO or a stock, and you want to sell it in a private placement, follow the private placement rules,” he explained. “If you want to do any IPO with a token, come see us.”
Nigel Greene — CEO and founder of the investment firm deVere Group — says Clayton’s stance on ICOs and cryptocurrencies is a positive sign that digital assets are becoming more mainstream.
“The SEC is right to insist that the digital coins, such as bitcoin, which are replacement for sovereign currencies, such as the dollar, sterling, yen and euro, are not securities,” he said. “I believe the SEC is also right that tokens — which [Clayton] did not name — that act as digital assets are securities. This clarification by the SEC removes some of the uncertainty that has been swirling around the crypto sector and serves to strengthen the overall proposition of many major cryptocurrencies. The SEC’s invaluable and far-sighted work in this area once again highlights how many governments, central banks and regulators around the world are all now recognizing the scale and potential of bitcoin and other cryptocurrencies.”
This article originally appeared on Bitcoin Magazine.
A weekly cryptocurrency-focused radio show called “Cryptomania – Bitcoin and Beyond” has just launched, joining a flourishing cottage industry of crypto-centric edutainment (education + entertainment). Cryptomania is a radio show that airs Saturday mornings in the Boston, Massachusetts, and southern New Hampshire area on the local FM channel 104.9. The radio program is the brainchild
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Cryptocurrency adoption has progressively spread to new industries in order to disrupt their markets. The art trading business is the new sector looking to use Bitcoin et al. in order to expand payment options available for investors in works of art. A London art gallery has announced it will auction a portion of Andy Warhol’s work for cryptocurrencies.
Art World Accepting Bitcoin on Andy Warhol Auction
’14 Small Electric Chairs’ (1980), by Andy Warhol, will be the world’s first high-value, blue-chip art auction using Maecenas’ distributed ledger technology. Maecenas, a blockchain platform dedicated to democratizing the access to the fine arts has partnered with Dadiani Fine Art to make Dadiani Syndicate the first fine art gallery in the U.K. to accept payments in cryptocurrency.
The art gallery will put 49% of the Warhol work up for sale on June 20. Valued at $5.6 million (729 Bitcoin), the reserve price is set at $4 million (520 Bitcoin). The auction will be compliant to the laws in the U.K. and all buyers will be subject to full Know-Your-Customer (KYC) and anti-money laundering (AML) checks.
Eleesa Dadiani, the founder of Dadiani Syndicate, aims to render the future of fine art investments to global reach with cryptocurrency being capable of broadening the market as the world opens its arms to the new wealthy people that emerged from the digital currency market.
“Beyond this, Maecenas and Dadiani are launching the world’s largest and first tokenised art fund through the blockchain. This will simplify and expand art investment even further. Our shared vision is being implemented in the most exciting way – now we both look forward to embracing the resulting evolution of art investment.”
The final price for Warhol’s painting at the auction will be determined by a smart contract running on the Ethereum blockchain. The art business could, however, be a trap for many cryptocurrency holders as fraudulent pieces of art on the market are estimated to be as high as 40% and costs could go up to $6 billion a year, according to blockchain identity company Codex Protocol.
The auction of Andy Warhol’s ’14 Small Electric Chairs’ will help transform the art market, Maecenas CEO Marcelo García Casil said. “We’re making history. This Warhol is the first artwork of many more to come.”
In January, four paintings were bought with cryptocurrencies at Art Stage Singapore through a partnership with Aditus Pay, a distributed ledger technology platform that brings the world of luxury to the cryptocurrency world.
Featured image from Shutterstock.
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The cryptocurrency market has started to gain some momentum and stability over the past 48 hours, with three consecutive daily buy candles recorded by bitcoin. Tokens such as OmiseGo and DigixDAO have seen notable increase in volume and price, but it is still unclear whether the market can initiate a new rally. Volume Still Low
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In what might be the most shocking revelation of the year, it turns out that Warren Buffet and Jamie Dimon still don’t like the world’s most popular digital currency, Bitcoin.
The two recorded an interview with CNBC yesterday in which they once again outlined their stance.
Jamie Dimon on Bitcoin: “Just Beware”
The two staunch Bitcoin critics appeared on CNBC’s ‘Squawk Box.’ Naturally, being both united in their dismissal of cryptocurrency, it wasn’t long before the subject was raised.
Despite having plenty to say about Bitcoin on several previous occasions, Dimon told the reporter:
“I don’t want to be a Bitcoin spokesperson.”
Fortunately, there is absolutely no risk of this being the case since the JPMorgan CEO represents exactly what many members of the Bitcoin and wider cryptocurrency community despise – centralised finance. Dimon then added a somewhat cryptic warning to those involved in the space:
Dimon famously enraged fans of digital currency last September when he senselessly referred to Bitcoin as a ‘fraud”. He has also stated that he would fire any of his employees that were found to be trading Bitcoin. It was later discovered that JPMorgan was one of the most active buyers of a Bitcoin tracker fund called Bitcoin XBT. He was subsequently accused of market abuse, as we reported last year.
In January, Dimon said that he regretted saying what he had about Bitcoin because it was all that people wanted to talk to him about. Clearly, he’s ready to hear more about why the public think he’s entirely wrong about Bitcoin as he is once again openly discussing it.
At one point during the interview recorded yesterday, the reporter put the question to her guests, “which of you hates Bitcoin more?” The reply from Warren Buffet was:
“I set a high standard, I don’t know whether Jamie can top me.”
Buffet is certainly more creative than Dimon when it comes to badmouthing Bitcoin. His famous outburst about the digital currency was to state that it was ‘probably rat poison squared.’
In response to this, a Bitcoin mining firm claimed to have installed a billboard across the road from Buffet’s offices. The message it conveyed was:
“Warren: You said you were wrong about Google and Amazon. Maybe you’re wrong about Bitcoin?”
The Berkshire Hathaway CEO also appeared on a CNBC segment last month. He was joined by fellow Bitcoin naysayers Charlie Munger and Bill Gates. During this interview the 87-year-old billionaire stated:
“If people react when you criticise their investment, if they get mad, they’re gambling… If they really like what they own, what difference would it make? If I criticise their wife or something, they don’t get all upset about it [laughs].”
Featured image from Shutterstock.
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Former NBA star Dennis Rodman is in talks with cryptocurrency startup PotCoin to have the latter sponsor a trip to the U.S.-North Korea summit.
Financial services giant Mastercard has won a patent for a blockchain system that allows travelers to submit desired itineraries and merchants to submit bids for each service request. The patent, awarded to Mastercard by the US Patent and Trademark Office (USPTO) on June 7, aims to streamline the global travel industry by connecting travelers to
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Jamie Dimon once called bitcoin a fraud – now he’s saying “just beware.”
The developer behind Dungeon Defenders II will integrate a blockchain with the game’s rewards system.