BitDigest - Tuesday October 12, 2021
Bitcoin facing resistance after breaking through $57,000 yesterday as other cryptocurrencies were unable to draw momentum from BTC’s recent gain
White House considering executive actions to oversee digital currencies including the appointment of a Crypto Czar
The Bank of England does not believe cryptocurrencies currently pose a threat to financial markets
Crypto Fear & Greed Index
The Fear & Greed Index for bitcoin and other large cryptocurrencies posted a 78 returning to an ‘extreme greed’ range after gaining 19 points this past week. The index is up for the second straight week and is at a 5-week high, a major change in sentiment since posting a 20 at the end of September.
The Headlines
White House Looking to Coordinate Crypto Efforts
The Biden White House is weighing an executive order on cryptocurrencies as part of an effort to set up a government-wide approach that is looking to coordinate agencies’ work on digital currencies throughout the executive branch. This effort may include the appointment of a White House ‘crypto czar.’
FSOC Adds Crypto Agenda to Next Meeting
The Financial Stability Oversight Council (FSOC), the US regulator responsible for heading off dangers to the financial system, intends to discuss cryptocurrencies, more specifically stablecoins, at its next meeting scheduled for October 18th.
Crypto-Assets Require a "Cautious and Prudent Approach" to Regulation
The Bank of England’s Financial Policy Committee’s October ‘Financial Stability in Focus’ report finds that “crypto-asset markets…currently pose limited risk to UK financial stability.” That the BoE recommends a “cautious and prudent approach” to a regulatory framework “to address the risks [crypto-assets] could pose in the future.”
Opposition Looking to Delay South Korean Crypto Tax
South Korean opposition People Power Party is expected to submit a proposal delaying the ruling party’s approved tax on crypto gains from January 1, 2022 to January 2023.
Reports of UAE Blockchain Fund Are False
Reports that the private office of the Prime Minister of the United Arab Emirates. Sheikh Hamdan bin Ahmed Al Maktoum, was investing $100 million into blockchain ventures is now being refuted and appears to be false.
UK Gambling Commission Issues Consumer Warning Against Sorare
The UK’s Gambling Commission issued a consumer warning explaining that NFT trading card platform Sorare.com is not licensed and therefore “any activity completed on the site by consumers in Great Britain is outside of the gambling regulations that a licensed operator should comply with.”
21 Crypto Companies Have Left China
The South China Morning Post reported that at least 21 companies have now exited the domestic Chinese cryptocurrency market following the recent government crackdown on digital assets.
BSN Expanding to Turkey and Uzbekistan
China’s national Blockchain Service Network is expanding into Turkey and Uzbekistan establishing new portals in Asian nations by the end of the year.
Iran Expects Illegal Crypto Miners to Cause Winter Power Outages
Days after permitting crypto miners to restart operations following the summer mining prohibition, Iran’s state electricity company warned that illegal miners could cause new power shortages in the winter driving “10% of [expected] electricity outages.”
Bakkt Partners with Google Ahead of SPAC Vote
Bakkt announced a partnership with Google allowing users of the Bakkt credit card to use Google Pay for on-line and in-store purchases and naming Google Cloud as a preferred cloud provider for the Intercontinental Exchange (NYSE: ICE) digital app and marketplace.
Shareholders of VPC Impact Acquisition Holdings (NASDAQ: VIH) are expected to vote on a merger with Bakkt this week. Ahead of the vote shares in the VIH SPA are trading at $9.78.
PBTS Establishing Mining in Hong Kong
Chinese Powerbridge Technologies (NASDAQ: PBTS) is launching an ASIC and GPU crypto mining operation in Hong Kong deploying 600 bitcoin miners and 2,000 ether mining units.
Millennium Requiring Employees to Report Crypto Trades
In what is likely to be a copied compliance policy, NY-based hedge fund Millennium Management is requiring employees to disclose any personal crypto trades just like they must disclose traditional trades.
Exchange, Custody and Product News
FTX US Introduces NFT Marketplace
FTX US launched FTX NFTs a marketplace allowing FTX US users to mint non-fungible tokens (NFTs), transfer existing NFTs to the marketplace and provide project creators with full control over the NFT’s life cycle.
Thoughts on the Ecosystem
Cruz Suggests Miners Operate on West Texas Natural Gas
Senator Ted Cruz (R-TX) suggested that bitcoin miners look to flared natural gas production in West Texas as a power source for mining operations. “Part of the beauty [of this proposal is] the instant you’re doing it you’re helping the environment enormously because rather than flaring the natural gas you’re putting it to productive use,” Cruz said.
Governments Are Going to Regulate Cryptocurrencies
JPMorgan Chase CEO Jamie Dimon is still not a fan of bitcoin, calling the leading digital currency “worthless” as he repeated his belief that digital currencies will be regulated: “no matter what anyone thinks about it, government [are] going to regulate it. They are going to regulate it for (anti-money laundering) purposes, for (Bank Secrecy Act) purposes, for tax.”
In order to unsubscribe, click here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Created with Revue by Twitter.
BitDigest is a weekday news update on digital currencies and blockchain technology for friends and partners of Parsons & Whittemore, a single family office based in Rye Brook, New York. Receipt of BitDigest is by approval of the Author. The commentary, analysis, opinions and recommendations in this newsletter represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in this newsletter is obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. Neither the Author nor any of the Author's affiliates make any guarantee or other promise as to any results that may be obtained from reading this newsletter. While past performance may be analyzed in this newsletter, past performance should not be considered indicative of future performance. No reader should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. The Author is not making a solicitation or offer to buy or sell any securities of any kind.