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Pakistani Province of Khyber Pakhtunkhwa Comes Up With Crypto Policy To Establish “Mining Farms”

By
Adam Barry
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0

Khyber Pakhtunkhwa province in Pakistan has laid out plans to pilot two hydroelectric-powered “mining farms” to leverage the current bullish crypto market, according to a government minister overseeing a new crypto policy.

Pakistani province to pilot “mining farms”

This announcement comes at a time when mainstream adoption of cryptocurrencies is gaining momentum. Bitcoin’s price has reached record levels in recent weeks, with investors such as Elon Musk investing in the coin while Morgan Stanley (NYSE:MS) became the first US bank to start offering BTC funds to its wealthy clients.

It is important to note that crypto mining farms involve large computer data center investments requiring vast power amounts. Recently, the Pakistani government established a federal committee to come up with a new cryptocurrency policy despite neighboring India moving to ban cryptocurrencies completely. However, the cost of establishing the mining project is yet to be determined.

Zia Ullah Bangash, the provincial government advisor on science and technology, stated that people have, so far, begun approaching investment. In Pakistan, crypto mining and trading exist in a grey area but, federal authorities now want to have a clear path towards the legalization of the crypto sector before opening it formally to investors.

Pakistan to regulate crypto

Three years ago, the State Bank of Pakistan indicated that crypto was not legal tender and there was no one authorized to deal with digital currencies in the country. Interestingly, Pakistani is also currently on the world Financial Task Force grey list. As a result, one of the sectors the global money-laundering regulators have asked the country to regulate better is the digital currencies sector.

Despite all this, crypto mining is a thriving sector in Pakistan with apps such as Coinbase and Binance being the most popular downloads. Bangash said that it is only the government, which has been left behind in crypto mining as people across the country are either mining or trading crypto from which they are earning income. This will also help bring governance levels in the industry to curb scams and online frauds.

Ethereum (ETH) And Bitcoin (BTC) Attracts $50 Million Investment From Meitu, A Chinese Tech Company

By
Adam Barry
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0

The Chinese tech company – Meitu invested another $50 million in cryptocurrencies – Ethereum (ETH) And Bitcoin (BTC).

A total investment of $90 million

Meitu invested $17.9 million to purchase 15,000 Ethereum and another $22 million to buy 380 Bitcoin in early March 2021. It also spent $28.4 million to acquire 16,000 Ether tokens and $21.6 million to purchase 386.08 Bitcoins. With the latest move, the total investments of Meitu in cryptocurrencies increased to $90 million.

In a communiqué, Meitu said blockchain tech can disrupt the prevailing technological and financial industries. Its board said cryptocurrencies still have ample room for appreciation.

Investments from top-notch companies

Prominent companies like MicroStrategy Incorporated (NASDAQ:MSTR) and Tesla Inc (NASDAQ:TSLA) invested significant amounts in cryptocurrencies such as Bitcoin. Traditional financial services will also pump in funds into cryptocurrencies.

Tesla invested $1.5 billion in Bitcoin in February 2021. In a submission to the US SEC, Tesla said the company acquired the cryptocurrency to maximize its returns. The company will start accepting payments in Bitcoin for its products in locations where the local laws permit.

Boosts liquidity

Tesla will become the first auto company to accept cryptocurrency. The investments in Bitcoin will also improve liquidity for Tesla.

The company holds cash equivalents and cash on hand of over $19 billion at the end of last year. Recent positive postings of Elon Musk on Twitter encouraged more investments from like-minded people into digital currencies.

Positive postings from Tesla CEO helped bitcoin to gain 20%. After his announcement two days later on Clubhouse, the social media chat site, he is the supporter; Bitcoin reached a new high of $44,200 on February 8, 2021.

Customers outside the US can buy electric vehicles of Tesla using Bitcoin towards the end of 2021. In a tweet on March 24, 2021, Musk said Bitcoin will not be converted into normal currency.

Dara Khosrowshahi, CEO of Uber, is also tempted to invest in Bitcoin following the positive views of Musk. But, he reversed its decision. Dara said the company will accept payments in cryptocurrency.

General Motors will also evaluate options to accept cryptocurrency as a payment for its vehicles soon.

Morgan Stanley To Offer Bitcoin Investment To Wealthy Clients Through BTC Funds

By
Adam Barry
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0

Mainstream bitcoin adoption continues, with Morgan Stanley banks becoming the latest institution to open digital currency doors. The bank is set to be the first financial institution in the US, offering its wealthy clients access to BTC funds.

Morgan Stanley bringing BTC access to clients

According to an internal memo, the investment bank has informed its financial advisors about its plans to launch three funds allowing clients to own BTC. Mike Novogratz-founded crypto-firm Galaxy Digital will run two of the funds, while asset manager FS investment and BTC firm NY-DIG will manage the other fund. Notably, The FS NY-DIG Select Fund and Galaxy Bitcoin Fund LP have at least $25 million in investment, but the Galaxy Institutional BTC Fund LP has a minimum threshold of around $5 million. Morgan Stanley’s announcement comes as the number of institutional investors supporting BTC, which recently hit an all-time high of $61,742, continues to grow.

Interestingly the bank will only service wealth investment customers with at least $2 billion in assets. On the other hand, investment firms should have more than $5 million at the bank to be eligible for this new offering.  Most importantly, in both scenarios, accounts should have been with the bank for over six months.

BTC investment restricted to wealthy clients

Over the past, Banks have been on the sidelines even as major companies such as MasterCard and Tesla showed BTC support. This is likely to change now that Morgan Stanley has become the first of the six major US banks to give clients BTC access. According to people familiar with the matter, the bank made a move following requests from clients who wanted exposure to the token.

However, there is a catch since access will be limited to wealthy customers with “aggressive risk tolerance” besides the minimum asset held requirement of $2 million. Interestingly, customers can start making investments from next month. Besides Morgan Stanley, Goldman Sach reported that it is restarting its crypto trading desk following the boom in BTC at the beginning of this month.

Bank of New York Mellon Corp (NYSE:BK) Injects A Cash Investment In Fireblocks

By
Adam Barry
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0

Bank of New York Mellon is one of the parties that injected their cash in Fireblocks, a platform entrusted by businesses for the storage, movement, and issuance of cryptocurrencies.

Major investors

The parties participating n the $133 million funding round included the investment firm Ribbit Capital,  SVB Capital, growth equity firm Stripes, and hedge fund Coatue Management. The company’s move comes when it has been talking a lot about deepening its business focus to digital assets.

Fireblocks has a long-standing reputation for helping banks and other financial institutes with everything surrounding cryptocurrencies. The bank pointed out Fireblocks’ outstanding reputation, outlining it as part of the reasons it had seen it fit to invest in the leading platform.

Reports show the latest round as having uplifted Fireblocks, boosting its valuation to stand at almost $1 billion. A person familiar with the matter discloses the existing investors, including Swisscom Ventures and Paradigm, Galaxy Digital. According to him, the mentioned parties also participated in the latest round.

Betting on cryptocurrencies

Over the previous month, reports came out outlining the bank’s rush to bet on digital currencies such as bitcoin. The others joining in the quest included several top-tier financial services firms focusing on digital assets rages. The bank takes great pride in its move to create a new unit to serve clients. It is a move that opens up new and greater possibilities. The target is to empower clients to hold, transfer and issue digital assets.

Major financial institutions such as Mastercard and BlackRock seem more receptive to embrace the latest changes. Reports show that the two institutions as backing up some particular digital currencies.

On Wednesday, Morgan Stanley made history by becoming the first major U.S. bank to focus its business on serving clients in need of accessing bitcoin funds. The bank outlined that it was focusing specifically on wealth management.

Fireblocks enjoys a significant presence in North America, Asia, and Europe. Some of its major customers include market makers, exchanges, hedge funds, banks, and neobanks. Sources indicate that the company has so far managed to raise about  $179 million in funds.

The IPO Of Coinbase Is Changed To April From March 2021: Expects A Direct Listing Of Class A Stock Instead Of IPO

By
Adam Barry
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0

The proposed Initial Public Offering (IPO) of Coinbase is now postponed to April from March 2021. Coinbase may even go for a direct listing of its Class A common stock rather than IPO.

The development came soon after Coinbase submitted its draft registration of IPO to the US SEC on December 18, 2020. Its share price now hovers between $200 and $375 in a private transaction.

Coinbase intended to become a public listed company in March 2021. However, it does not reveal the reason for the delay of IPO.

Pays a fine of $6.5 million

The delay in the IPO of Coinbase may be due to unethical wash trading practices. Coinbase is also accused of providing misleading information. The company paid a fine of $6.5 million.

Jared Dillion, a columnist at Bloomberg, said he dislikes Coinbase citing an old business with unknown risks a few days ago.

Registers more than 115 million shares

Despite the ongoing rumors and allegations, Coinbase registered more than 115 million for the trade. Andreessen Horowitz, Union Square Ventures, Co-Founder Fred Ethrasam, and CEO Brian Armstrong are some of the entities and eminent personalities who registered for Coinbase stock trading.

The implied valuation is $68 billion

The implied valuation of Coinbase, the Cryptocurrency Exchange, is $68 billion. It is before its expected direct listing on NASDAQ.

According to the revised S-1 submission on Wednesday, the volume-weighted AVP (average share price) is considered for the latest valuation of Coinbase. A communiqué from Coinbase reveals its private shares trade at $343.58 each in Q1 2021. The price increases the valuation of Coinbase by 13 times.

However, Coinbase is valued at $8 billion in October 2018, as per the data revealed by PitchBook. According to the revised filing, Coinbase has outstanding shares of over 16 million shares in Q1 2021 and shows the latest valuation.

The value of Coinbase in the private market is less indicative of the valuation of its shares. However, NASDAQ will use that as a reference price for Coinbase before direct listing.

Senior Market Strategist for IPO at Renaissance Capital, Matthew Kennedy, said the sale of shares in the secondary market gives a reference price for the public trading. Less weight is put on such private transactions.

Coinbase revenues almost increased twice to $1.1 billion in 2020. Its profit stands at $322 million, according to the first filing of the company in February 2021.

Thailand’s Central Bank Prohibits The Use Of The Thai Baht

By
Adam Barry
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0

The Bank of Thailand is against the continued use of the Thai Baht, sending out a warning to all those considering turning o the privately issued stablecoin. Sources reveal that the coin is pegged on the national currency, but citizens need to exercise restraint.

Citizens warned

The central bank wants citizens to understand that the Thai Baht Digital (THT) doesn’t pull along with protection or any legal assurances. It asserts that any citizen that ignores its directive will be doing so at his/her own risk and detriment.

The Bank of Thailand outlines that the nature of the stablecoin isn’t dependable, considering that users face money laundering or cyber theft risks.

Pruettipong Srimachand, who happens to be the central bank’s assistant governor of the legal group, has spoken out regarding the recent developments. The official asserted that the new change was in effect. Thus, it was against the law for anyone to be involved in stablecoin transactions.

Connection with Terra

The issuing of the stablecoin happens on the Terra platform, widely known for producing some other wide-ranging stablecoins. Good examples include the TerraUSD and the TerraKRW. Reports also indicate the platform as the one behind the e-commerce wallet powered by stablecoins known as the Chai payments app. The wallet has grown a big deal in terms of popularity across Asia.

There are fears about the fragmentation of the Thai currency system. The fears rise from its close link with the Thai Baht.

However, these fears will only become a reality if a competition pops up between it and the central bank-issued currency.

Binance and Polychain played a significant role in the unveiling of Terra in South Korea back in 2018. The contributing parties, according to reports, channeled about $32 million into the deal. Terraform Labs, which happens to be the firm behind the platform, also managed to develop about $25 million.

Thailand’s military-backed government has confirmed that it won’t allow the use of anything other than the country’s central bank-issued digital currency for transactions. The government’s move is quite similar to China’s decision to downplay the use of other means.

Foundry Digital Reveals Plan To Unveil Mining Pool For Institutional Investors

By
Adam Barry
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0

Foundry Digital is ready to start doing business with all the institutional investors who are interested in bitcoin mining. Foundry has operated as Digital Currency Group’s subsidiary over the years, and this time around, it will be making an impact, according to reports. Launching its operations through its USA pool, the firm has always done everything possible to boost its business operations. It was recently that it spoke about the close of its five-month beta phase, after which it ramped up its business operations to include major players in the bitcoin segment.

The major players in the deal

Reports show some of the major players moving into the Foundry pool, a bitcoin mining company situated in North America known as Blockcap. Sources show that the company made a significant contribution to the pool when it added 10,000 brand-new mining rigs. The figure, according to experts, represents about 0.91 exahashes of compute. At the moment, Foundry’s hashrate is estimated to stand at about .67 exahashes per second. Rankings place Foundry in the list of the top 10 mining pools globally, considering that it accounts for about 2.34 % of the hashrate share.

Blockcap’s executive chairman Darin Feinstein has spoken about the company’s mission. He outlined that they sought to undertake their mining operations in a U.S based pool. He also discloses their deep interest in offering all the institutional miners payouts in a way that conforms to the situation in the major pools globally.

Business progression

In January this year, reports disclosed Foundry’s interest in striking collaboration with a cryptocurrency mining company located in Minnesota, known as Compute North. It was a progressive partnership that saw the two businesses tap almost 14,000 Whatsminer M30S mining machines. Foundry Digital made the moved as part of its dedication and commitment to the “turnkey hosted” agreement that sought to support shared mining cooperation.

The Foundry USA Pool has, throughout its business operations, prioritized the advancement of the institutional mining businesses. According to analysts, its seamless integration with Genesis Trading, which happens to be a DCG-owned cryptocurrency prime broker, is a progressive move. The integration seeks to serve users with wide-ranging treasury management services such as bitcoin-collateralized lending and derivative products.

Bakkt Receives Its Bitlicense From New York

By
Adam Barry
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0

New York remains committed to regulating digital currency firms with BitLicense. Back in 2015, Paxos got its BitLicense, and this time around, Bakkt has obtained its license. Bakkt becomes the 29th BitLicensee. The latest development will see Bakkt focus on the provision of crypto trading services.

Major developments within the crypto space

Reports show NYDFS grasping the opportunity to plug the rest of its crypto initiatives. NYDFS focuses on tech sprint to discover new strategies for fetching data from firms to regulators. Sources indicate that all that will be happening on a real-time basis.

New York’s regulation has over the years been known to have a hawkish reputation. Reports show the status of Manhattan has a financial center giving a significant boost to numerous trading activities. Top businesses that want to focus on trading activities have been channeling efforts and resources to enable them to undertake wide-ranging business operations.

PayPal is one of the many firms wide worldwide that have been expressing their deep interest in crypto. It was some time back that rumors showed the firm awaiting New York’s first conditional BitLicense. It was after the long wait that it made its plans public.

Paypal’s entry into the crypto segment

Paypal seems to be embracing cryptocurrency the best way, and that is considering its recent confirmation about the addition of crypto payments to its global platform. The business is optimistic that it will succeed in making a move over the coming few months.

Paypal outlines that the new program will start in the United States before spreading out to the rest of the world. The business had been looking forward to obtaining the conditional Bitlicense and is quite impressed by the regulator’s resolve to allow it to expand its service delivery.

Market observers like crypto’s progress, but it is also notable that Paypal will be facing intense scrutiny in its crypto business endeavors. The conditional Bitlicense’s nature is that the licensees must pair off with firms bearing the full Bitlicenses. Paxos happens to be one such firm in this case scenario. Circumstances might compel Paypal and the others to undergo some heightened reviews.

FalconX Speaks Out On Institutional Adoption

By
Adam Barry
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0

It was back in 2020 that it disclosed that it had obtained $17 million, which is intended to use in several of its growth initiatives. A top company official in one of the interviews said that they had been considering making major expansions to their product offerings and new infrastructure. The firm valued professional investors and wanted to serve them with a more competitive trading environment.

The funds and their use

FalconX is this time around pleased to pronounce that it got $50 million from B Capital Group and Tiger Global. The firm is happy about the latest development, outlining that digital assets are quickly becoming more mainstream.

Many people looked forward to seeing the firm speak out on how it planned to deploy the funds, but it remains tight-lipped about the matter. However, analysts think that to understand future portends; it is important to consider the previous fundraisers. In case these analysts are right, it then implies that the money might be channeled towards business development undertakings.

It is impressive that the firm enjoys Tiger Global and B Capital Group’s backup, but it is also important to outline that the two are not the only ones supporting FalconX. Reports show major players like Avon Ventures, Accel, and Coinbase Ventures are at the front line supporting the firm.

FalconX thrives in the markets

A partner at Tiger Capital, known as Scott Shleifer, considers FalconX one of the top business leaders in the cryptocurrency segment. The official supports his argument by highlighting the immense success the exchange has been witnessing over the past. He exudes confidence that FalconX is on track to achieve significant success in the diverse market.

FalconX has given out a statement revealing details about its net revenue. According to the exchange, the figures have expanded about 46 times over the past year. It explains the change outlining that there has been outstanding institutional demand for cryptocurrency.

Analysts say that 2020 was an outstanding year, citing institutional investors’ arrival in the cryptocurrency segment. They move ahead to disclose that the tern has been growing a huge deal in terms of intensity.

Wisdomtree Becomes Part Of Bitcoin ETFs Seeking Out SEC Approval

By
Adam Barry
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0

WisdomTree has been looking forward to the time when its Bitcoin Trust will start trading on CBOE BZX U.S. Equities exchange, but it might have to wait longer from the look of things. The firm is one of the many waiting for the U.S. Securities and Exchange Commission (SEC) to give its final word. Green light from the body would see the above parties join the CBOE BZX U.S. Equities exchange. The firm in question seeks to start trading under the BTCW ticker, but it will have to await the U.S. financial watchdog’s resolve.

Body’s indifference

The body’s silence over the matter is deafening for all the parties awaiting its greenlight, but they don’t have a choice but keep hopes alive. WisdomTree has been in a quest to unveil a Bitcoin exchange-traded fund (ETF) and anticipates that the U.S. Securities and Exchange Commission (SEC) will give the nod on the matter. A heads-up from the body will see the firm’s shares move into the CBOE BZX U.S. Equities exchange, which is the goal at the moment.

Reports show VanEck and NYDIG as part of those that had reached out to the SEC at the start of this year, and they wanted the body’s approval. Grayscale, which happens to be the biggest crypto asset manager globally, has also been dreaming about unveiling a Bitcoin ETF.

The parties must be patient

One would argue in defense of SEC, outlining its continued interest and support for Bitcoin and other crypto offerings adoption. This assertion is true, but the body still needs to take its time before giving its green light to the parties awaiting its resolve. So far, the U.S. financial watchdog remains tight-lipped on the matter pending before it, despite the great discomfort among the parties in question.

It is surprising how the body remains unmoved despite the strong efforts the parties have made to get its approval. WisdomTree continues to suffer the body’s indifference despite making what most people would regard convincing measures. Reports show WisdomTree as having presented wide-ranging commodities, including energy, Bitcoin, and precious metals.

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