● Bitcoin and Crypto Stock Plunge On Regulatory Scares
● Facebook’s Libra Looks to Launch
● South Korean Banking Giant to Launch Exchange
We kick off this week’s edition of Overbit Insights with a look at some murky regulations surrounding Bitcoin from the United States.
This story came to light on Wednesday, 25 October, when Coinbase CEO Brian Armstrong took to Twitter to air his grievances against the U.S. Treasury Department - more specifically, rumoured policies set to be rushed through by Treasury Secretary Steven Mnunchin.
Though the details on the actual are vague, Armstrong summed things up succinctly in one tweet: “This proposed regulation would, we think, require financial institutions like Coinbase to verify the recipient/owner of the self-hosted wallet, collecting identifying information on that party, before a withdrawal could be sent to that self-hosted wallet.”
This goes well beyond any regulation we’ve seen in the United States, as this would require financial institutions to start monitoring non-exchange wallets; something many users would consider a massive privacy violation. Armstrong did not mince words in his perspective: “If this crypto regulation comes out, it would be a terrible legacy and have long-standing negative impacts for the U.S. In the early days of the internet, some people called for it to be regulated like the phone companies. Thank goodness they didn’t.”
Though these are all rumours, this news certainly hasn’t helped Bitcoin’s standing in the market, as it currently sits about 5% down from its local high at $19,500. Ethereum looks to be in similar shape, down 14% from its high at $623.
Moving on from U.S. regulatory affairs, we pivot to a topic not many have touched on as of late - Facebook’s Libra cryptocurrency. According to recent reports, the Facebook-led cryptocurrency is set to launch as a single coin, backed one-for-one by the dollar, possibly as soon as January of 2021.
The loftier goals of Libra, such as other currencies and a composite-backed currency, will be rolled out at a later date, as soon as Facebook receives approval from the Swiss authorities, more specifically the Swiss Financial Market Supervisory Authority. As we mentioned, this is a project that has not been on many people’s radar as of late. However, Facebook has continuously shown its ability to expand its market share, so we’d be wary of betting against this product, despite how contested its initial announcement is.
Wrapping up this week’s Edition of Overbit Insights we’re going to highlight another example case of how rapidly the cryptocurrency market is expanding. For those in the market, exploring swing trading strategies or making your best bitcoin price prediction in 2020, or still learning how to read a candle chart, the reality is, the Crypto is growing and rapidly.
A prime example of that is South Korea’s Banking Giant, Kookmin, one of the country’s largest commercial banks, is co-creating a “digital asset management company” with several nation’s leading blockchain players.
Kookmin has made an unspecified “strategic investment” in the new digital asset management company (KODA), which will secure the Bitcoin (BTC) holdings of corporate clients such as crypto exchanges, per CNews.
Kookmin will join with blockchain accelerator Hashed and fellow blockchain investor and developer Haechi Labs, both of which have also invested undisclosed amounts in the new venture. We can expect to see KODA will carry out a beta program for corporate customers starting next month.
With all these developments happening, and wherever the market takes you, Overbit.com and its range of products and tools are here to provide top-tier support and access to the world’s capital markets. Thank you again for reading, and we look forward to seeing you next week.