TronWeekly

Crypto World News

You are here: Home / Archives for Cryptocurrencies

Cryptocurrencies

Blockchain Crime Syndicates – Is Crypto a Den of Thieves?

by

Cryptocurrencies have provided significant benefits to individuals and organizations alike. Innovators are finding even better ways to implement these new inventions. A study by Statistica estimates that there were at least 42 million blockchain wallets by September 2019.

However, behind the underlying benefits of digital currencies and the blockchain, is a sinister threat of terrorists and criminal rings. All taking advantage of the technology to drive illicit activities. 

The Massachusetts Institute of Technology (MIT) collaborated with Blockchain analytics firm Elliptic, to identify patterns of illegal bitcoin usage. MIT’s IBM Watson AI Lab implemented machine learning technology to detect criminal activities on the blockchain.

The 2019 dataset study established that 2% of bitcoin transactions that year were illicit. Meanwhile, this dataset was based on approximately 200,000 bitcoin nodes with a sum valuation of $6 billion. Notwithstanding, 77% of the remaining 98% was unclassified -; while 21% of it was lawful.

A 2015 Europol report identified the use of bitcoin in the majority of high profile criminal investigations. In the European Union alone, over 40% of illegal transactions involved a bitcoin transaction. Moreover, Europol director Rob Wainwright stated that 4% of criminal proceeds in the EU were funneled through digital currencies in 2018.

The director noted that Europol was anticipating the figure to increase given the privacy and credibility afforded by cryptocurrencies. He added that at least $5.5 billion were laundered through illegal cryptocurrency transactions.

Although blockchain transactions are not impossible to track down, they make it really difficult for authorities to establish identification information. Verification of transactions on the chain takes place through mining. The blockchain records each piece of the transaction. Unfortunately, all the data has no direct links to any identifiable information such as names and physical addresses. Hence making blockchain transactions anonymous and complex to track down. 

This is not a new situation. Terrorists running funding campaigns and payments through cryptocurrencies dates as far as 2014. Islamic State fighters in Syria were facilitating small purchases and international transactions using digital currencies. Reports have emerged of terrorist groups lobbying for funding in cryptocurrency through Telegram and Whatsapp groups. 

Wainwright told the BBC during an interview, that even if authorities could track down and identify criminals behind illicit transactions. It’s difficult to freeze the funds unlike from a traditional banking scenario. 

It is not only terrorist groups using blockchains to conduct illegal activities. Pornography firms and drug syndicates are using technology to their advantage. A Wales drug dealer was sentenced to eight years of prison in 2018, for running a fentanyl drug store.

The store operated mainly in Bitcoin. While most of these activities take place through bitcoin, authorities have also established the use of privacy coins Monero, Zcash, and Telecoin. These privacy coins take privacy a notch high in the concealment of identification information. Making it even more difficult for authorities to track down the transactions. 

Following PayPal banning Pornhub from its services, the pornography side turned to cryptocurrencies for payment. Last year in October, law enforcement arrested hundreds linked to a South Korean dark web child pornography site that sold explicit videos through cryptocurrencies. 

“Welcome to Video” as was the name of the site relied on bitcoins to sell user access to about 250,000 pornographic videos portraying child pornography operations. 

US and Britain authorities described the site as the largest pornography website in the world. Officials reported they had rescued at least 23 underage victims in Britain, Spain and the US actively using the website. 

 

Are Asset Managers Anticipating Another 3000 Percent Bull Run in 2020?

by

2017 will go down in the books of history as a time when asset managers thronged to witness  3000 percent average returns from cryptocurrency hedge. But could history repeat itself? Let’s find out. 

Financial markets are inclined towards digital assets given recent price surges. Crypto markets are geared towards growth in 2020 and that seems promising. Infact technical indicators suggest bitcoin is heading for a bull run. 

Institutional gold rush hyped back in 2017 following bitcoin’s all-time high. Investors and asset managers scrambled for a piece of fortune; while banks and institutions pioneered blockchain startups. Bitcoin retaliated from the all-time high. Dropping by at least 51%. As a result, institutions backed away and they have kept their distance blaming volatility, reputation and regulation risks. 

The few institutional investors that remained raked slight profits in both 2018 and 2019. A survey by Eurekahedge, for instance, indicates 16 percent cryptocurrency fund returns in 2019. Showing a bit of contrast with traditional hedge funds 10..4 percent. Closely, it seems institutions are once again showing an appetite for digital assets. 

Deutsche Bank published a report at the beginning of the year claiming that cryptocurrencies have “numerous advantages than traditional assets.” The report noted that the situation is likely to attract more people to digital assets. However, I find institutional come back to bitcoin a bit more cunning than strategic. It is more likely that asset managers are showing because of Bitcoin’s stability around the $8,000 and $9,000; than the coin’s promise to grow. 

Meanwhile, Bitcoin price is still moving higher. Bitcoin posted a 31 percent upward correction in January this year. It is unlikely for Bitcoin to attain the 3000 percent bull run and Market analysts know this. Nonetheless, the fact is investors will always pile up once prices increase. Institutions might be wary this time since they’ve been bitten before. But its unlikely the risk of opportunity would make them hesitate from the profit rich cryptocurrency market. 

According to Investopedia, crypto asset management is the next phase of financial investment. Ten years since the inception of Bitcoin, crypto market management has become simple and exciting. Investopedia highlighted the following as key takeaways in the race to crypto asset management:

  • Investors are much willing to diversify their portfolios by adding cryptocurrency. Asset managers believe they can capture the potential advantages of digital assets. 
  • Cryptocurrencies are however difficult to adopt. Ordinary investors and new adopters might lack the skills to handle the technology.
  • This is why technology firms and financial firms are collaborating to create crypto asset management solutions. The solutions will enable firms and individuals to reap the full benefits of cryptocurrencies. 

Meanwhile, bitcoin and cryptocurrencies have become mainstream investments. They present a profitable investment opportunity just like bonds and equity. Traders believe in more days ahead of profitable trading. Although the lack of risk mitigation tools remains to be a huge turnoff, the appeal of crypto-asset funds is simply unavoidable. 

 

Source: FINANCIALTIMES

 

CoinDCX CEO Pens Letter To India’s Finance Minister About Crypto; Reiterates The Fantastic Opportunities

by

India’s tryst with cryptocurrencies has been ongoing for a long time now and the negative stance perpetuated in the country has also become a big issue. This has not stopped cryptocurrency organizations and proponents from clearing the air about the industry.

In a recent letter to the Financial Minister of India, the CEO of the cryptocurrency trading platform CoinDCX spoke about how the digital assets industry can become a major part of the country’s next Union budget. 

Sumit Gupta, the chief executive of CoinDCX urged FM Nirmala Sitharaman to keep an open mind about digital assets and look at it as an opportunity. Gupta added that the goal was to create a dynamic industry that would run parallel to the traditional economy. He reassured the minister that cryptocurrencies were not planning to usurp the position held by fiat currencies but rather complement it. In his words:

“India has been presented with the chance to be a part of a new wave of innovation, which is a tremendous opportunity to bolster the strength of our future economy. Just as the internet fundamentally altered the way we live and work, cryptocurrencies have the potential to change the way we participate in the global financial system.”

The CoinDCX official opined that at a time when other countries were receiving billions of dollars in fintech investments, India was barely scratching the surface. He took the example of Singapore, a burgeoning economy that received $53 billion just in the fintech industry. Looking at the numbers, India only received a mere 0.02 percent of Singapore’s total holdings.

In the letter, Gupta tried to convince Nirmala Sitharaman about the socio-economic advantages of crypto in India. He claimed that the agricultural sector in India can greatly benefit from microfinance portals and smart contract-based supply chains. The implementation of such models is expected to lead to greater traceability and convenience during transfers.

According to Gupta, the implementation of blockchain technology will result in greater collaboration between the public and private sectors. He reiterated that the opportunity presented by crypto should not be passed upon by a growing economy like India. The country is still in the midst of figuring out how to deal with digital assets, with the Supreme Court overseeing the proceedings.

Meanwhile, the Reserve Bank of India has directed all the banks to not deal with cryptocurrencies. The main reasons cited for this ban was that cryptocurrencies could be used for ‘terror financing’ and blatant money laundering. To counter this notion, the CoinDCX CEO suggested measures such as penal frameworks and KYC implementation across the fintech industry. The Finance Minister was told that clear guidelines were imperative for the industry to thrive, guidelines created on proper facts and information.

Nirmala Sitharaman has not responded to the letter yet but crypto proponents were anxious to see what her reply might be. At a time when tensions were high in the country, a public letter from a crypto personality is seen as a step in the right direction for the industry.

 

New Cryptojacking Malware Vivin Mining Hundreds of Thousands of Monero Coins

by

Cisco Talos cybersecurity experts are tracking down a 2-year old malware that has been conducting an active crypto mining campaign of Monero coins. 

Cybersecurity methods of preventing data breaches have evolved tremendously and so have cyber criminal mechanisms. Researchers at Cisco identified the cryptojacking malware as Vivin and indicated it had been active as early as 2017. A 2018 report from the Cyber Threat Alliance (CTA) revealed a 459% increase on the rate of illicit cryptojacking that year. This trend continued to grow for the better part of 2018 with McAfee Labs reporting a 659% increase by the end of Q1. 

Meanwhile, McAfee Labs research found out that increasing cryptocurrency prices fueled the rise of cryptojacking malware. However during a Threatpost podcast,  Cisco Talos cybersecurity researcher Nick Biasini pointed out that hackers did not require huge amounts of money so as to drive these operations. As long as the illegal ventures generate any amount of revenue, as long as money is the guarantee; cyber attacks are here to stay. His suggestion was to drive the point that Monero crypto mining malware was still on the rise, despite the coin’s diminishing price. 

For a malware campaign that has been in existence since November 2017, they must have mined thousands of dollars of Monero coins from unsuspecting host computers. 

Note that cryptojacking involves hijacking user computers and exploiting their computing power to mine digital currencies. The activities usually take place without the owner’s knowledge. Eventually, the malware sends the mined funds to the criminals controlling the software.

Talos discovered that the Vivin malware was rotating multiple amounts of wallet addresses and corrupting payload delivery chains. Activities which took place across different timelines. However, the first actor to infecting computers with Vivin involved installation of pirated software. The software opened up the infected computer to a backdoor as the initial attack vector; upon which the code executed an XMrig mining software installation. 

Nevertheless, the perpetrators of the attack did little to nothing in hiding their activity. A host of poor security decisions like posting similar Monero wallet addresses revealed their track. However, as Talon came to establish – the poor operation decision were a well thought generalization pattern for massive targeting of general user behavior. 

Vivin Cryptojacking Malware Prevention

Vivin attack point of attacks however offers computer users numerous tactics, techniques and procedures (TTP) for mitigating risks. To prevent the threat of cryptojacking malware and especially in this case Vivin attacks, observe the following: 

  1. Avoid pirated software usage on endpoints
  2. Ensure perfect event logging and monitoring
  3. Observe proper system resource monitoring
  4. Block mining pools URLs
  5. Implement detection signatures

Biasini noted that he wasn’t surprised that cryptojacking malware were still currently present. The researcher said that cybersecurity and TTP attack prevention might have mitigated the first phase of cryptojacking. However, there was a second wave of cyber criminal behavior occasioned by sketchy data phishing and brute force. The initial wave, he noted, characterized spam campaigns and infected mail documents. 

During press time, Vivin attacks are active and still mining hundreds of thousands of dollars from unsuspecting computer users. It is therefore essential that people observe good cybersecurity hygiene before they have their computer resources milked dry. 

 

Swiss Banks to Support Cryptocurrencies Including Bitcoin

by

SEBA Bank AG took its start in November 2019 with a versatile banking license and a suite of services such as fiat storage, crypto custody, and a crypto-connected debit card that converts to fiat for shopping daily and crypto trading through the mobile app of the bank.

 As said by Guido Bühler, CEO SEBA BANK AG, the bank accumulated an estimated $103.4 million from angel investors like Guy Schwarzenbach, who founded Black River Asset Management. Schwarzenbach added that the pricing for trades in the SEBA app, permitted by the process of API integrations with exchanges functioning globally, provided the most competitive pricing compared to over-the-counter trades. He further said:

 “What I am really excited about for SEBA… is their upcoming deployment of a margin and lending business, including options and derivatives.”

 SEBA bank was the first bitcoin-backing Swiss bank. However, Falcon, a private bank, in 2017 started offering bitcoin management services. Monetary Systems Lead of World Economic Forum, Matthew Blake called crypto-based and licensed banks as:

 “A rising trend and something institutions can do to hedge.”

 Similarly, a crypto startup of Switzerland, Bitcoin Suisse also registered for a versatile banking license to offer several services from staking to loans.

 Marketing Lead of the startup said that Suisse was not applying for a banking license just to be like every other bank, we were pioneers at heart. He further said that they would, of course, offer cash accounts for their clients in their name. More importantly, they would be capable of start trading crypto securities, stablecoins, and synthetics like mini-futures and products to short the major crypto assets. 

 Among crypto-based banks so far, SEBA Bank provides a unique ability to acquire several kinds of fiat currencies which include US dollars, Hong Kong dollars, and Singapore dollars, and trade cryptocurrencies such as Bitcoin, Ethereum, and Stellar.

 CEO SEBA Bank Bühler stated:

  “You can open an account over the phone in 15 minutes, for an accredited investor, you don’t have to go to Switzerland. There’s always going to be aspects that banks are required for, and the first one is the storage of your private key.” 

 As per Bühler, excluding the United States, the young bank already offers services to individuals having high net worth and institutional investors from all over the world, and a few blockchain startups. 

 To Schwarzenbach, bitcoin banking makes sense for security profits. He would not desire the risk of someone to hurt him to get his bitcoin stash. He added that open source decentralized finance (Defi) platforms eventually and comparatively provide financial infrastructure to both the general and proverbial population.

 

UK’s Tax Authority Bids $130,000 For Software That Traces Bitcoin, Ethereum, and Monero

by

UK’s HM Revenue and Customs (HMRC), UK’s tax, payments, and customs topmost authority are seeking to avail the opportunity of getting the software from vendors that traces the transactions of a few famous cryptocurrencies including Bitcoin. 

Software To Trace Use-Cases of Crypto

Accordingly, HMRC has offered the amount ranging from $100k to $130 to get a software for identification of transactions of a few cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Tether (USDT), Ripple (XRP), and Litecoin (LTC).

Mainly, the purpose of the software is to notice where cryptocurrencies are used for avoiding paying taxes. Preferably, developers who provide tracing potentiality for cryptocurrencies, such as Monero, Zcash, and Dash, would be offered by HMRC.

As per HM Revenue and Customs (HMRC): 

“Crypto Assets, such as Bitcoin and Ethereum, provide a means to transfer value between interacting parties… These services are increasingly used for a range of purposes, from international money transfers, sales of digital services, paying staff and tax evasion and money laundering.”  

According to HMRC that software should have a feature of tracking crypto-asset transactions compared with the usage of free online resources. Moreover, the sole aim of the software is to stop intelligence gaps in crypto usage which provides a vacuum for criminal activities against HMRC. Interested developers can send their application by Jan 27, 2020.

Furthermore, reportedly, last year local cryptocurrency exchanges were made to provide customer lists and transaction data to UK’s authorities, the main purpose of this step, by UK’s authorities, was to get back unpaid taxes from the users of cryptocurrency exchanges

In the same period, in the US about 10,000 letters were sent to crypto users, who have transactions of $20,000 or more in their records from 2013 till 2015, from IRS. The letters warned the users that they will face penalties if they hide their original records. 

Today, cryptocurrency is used by a large number of people in the world for a legitimate purpose, however, there does exist looming concern about the usage of cryptocurrency for an illegitimate purpose. The issue is that, due to the unknown transactions made in blockchain technology, cybercriminals around the globe can influence this obscurity for their unethical interests.

South Korea Is About To Levy a 20% tax on Cryptocurrencies

by

South Korea’s cryptocurrency regulation has seen tremendous developments in the last 2 years. However, Park Yong-jin, a member of the national policy committee from the ruling Democratic Party, brought in the first-ever taxation bill in South Korea.

The Ministry of Economics and Finance recently ordered the department of income tax to start reviewing the cryptocurrency taxation plan as per the report published by one of the local South Korean news channels, Pulse. South Korea’s government is planning to impose a 20% tax on all the income generated from Cryptocurrencies. 

Nevertheless, the income tax department will likely consider all the income generated by Cryptocurrencies as ‘Other Income’ instead of ‘Capital Gains’. Interestingly, this news has brought a healthy amount of consideration in the Korean Expert community.

If implemented, all the Cryptocurrency income will come under the banner of ‘Other Income’. The income tax department will collect a 20% tax on 40% of the total income. The rest 60% comes under the band of tax deduction.

Reportedly, the government is yet to finalize the working procedure. But, it is for sure that income generated with Cryptocurrencies will be labeled as ‘Other Income’. Earlier it was considered as capital gains.

The National Tax Service (NTS), the Korean tax authority, is supposedly waiting for a green signal from the government authorities. Once levied, they will be allowed to start imposing a tax on Cryptocurrency gains on an immediate effect.

Consequently, Bithumb, a South Korean Cryptocurrency Exchange, was asked to pay $69 million as a tax by NTS. This was the first of its case where NTS levied the taxation on Cryptocurrency gains under the label of other income.  More so, Bithumb is planning to take the authorities to court for negating the amount inflict on them by NTS. They are in the mood to nullify the tax. 

Meanwhile, the Korean authorities have started marking gains earned by the immigrants from virtual assets as the source of ‘Other Income’. They have been actively collecting the tax indirectly at the time of any exchange of Cryptocurrency.

It is now a game of curiosity about what the government decides and how NTS will shift its gears. 

Main Challenges Hindering Mass Adoption of Bitcoin

by

It has been roughly eleven years since Satoshi Nakamoto published that whitepaper and inaugurated digital currencies to this world.  He had a radical vision of a decentralized electronic cash system which a decade later is groundbreaking. The cryptocurrency industry is currently worth around $210 billion worldwide; plus there are about a thousand more separate tokens circulating in the market.

Despite this success, the technology is yet to be fully perceived. Cryptocurrencies and analogous phrases are now popular. The awareness of them is at an all-time high. However, uptake and consumption of Nakamoto’s vision have been confined to a narrow subset of society.

Achieving the mass adoption of new technology is a tough and slow process. According to a new report by The Startup, there are challenges that need to be resolved to accelerate this process. The last couple of years have seen Bitcoin in its greatest pace and mass adoption. Thanks to that grand rally back at the end of 2017 when cryptocurrencies were everywhere in the mainstream media.  For Bitcoin to reach its peak, there are a few more things that need to happen.

Higher Transactions per Second (TPS)

Currently, Bitcoin supports only about seven transactions per second. This figure is not even close to the required figure if everybody in the world was using it. Visa supports 24,000 transactions per second.

Ethereum doubles Bitcoin’s TPS at around 15 which is also very slow for daily usage. Ripple is by far the better alternative boasting 1,500 TPS of XRP. However, it is faced by other centralization challenges. The technological progress in Lightning Network might aid Bitcoin’s course in terms of TPS.

Transaction Fee Reduction

The report claims that the mining fees should be reduced to aid in bitcoin’s practical use. At the moment, the fees for validation of a transaction is at around $0.3. This does not, however, depend on the amount transacted. 

The transaction fees catapult during the network’s peak when the transaction volume is high. Back in 2017, the fees reached $30 for a single transaction. This is not practical for mass adoption. It will only result in huge volumes which may even be bigger than the all-time high.

Improvement on Transaction Confirmation Time

Moving forward, the bitcoin network has to improve on the validation of near-instantaneous transactions for it to be considered a viable peer-to-peer currency. According to the report,

 “It is unimaginable for a merchant to make a customer wait 10 minutes before the Bitcoin transaction is fully validated.”

In addition, this time increases dramatically whenever the network is overloaded. The increased time is damaging at times of market volatility. The Lightning Network has been created to enable micropayment channels to ease this challenge but it has a long way to go.

In addition to the Lightning Network layer, more technology is required directly on the Bitcoin Blockchain to lower transaction validation times in the future.

Decentralization of Bitcoin Mining

The major challenge right now is the centralization of Bitcoin mining. China alone accounts for almost two-thirds of the total hash power on the network. This means that the country can exercise some control over bitcoin. 

Moreover, Bitmain which is based in China controls some of the world’s largest mining pools. This adds to the centralization concerns. Mining farms are being set up outside China which is starting to relieve this concern but the hardware providers are still centralized.

Conclusion

Bitcoin has these concerns and many others to tackle; before it can take the place of the current financial system; as a truly decentralized form of payment.

Bitcoin Can Be Used to Pay UBI Bonuses: U.S Presidential Candidate

by

It adds to the value of Bitcoin in moral regard when someone like Andrew Yang, a U.S. Presidential Candidate for Democratic Party says a positive thing about Bitcoin.

In a recent interview to a famous YouTube Channel, Nigahiga, Yang presented the concept of Universal Bitcoin Income. The U.S presidential candidate believes the Universal Basic Income model can develop into the Universal Bitcoin Income model. If that happens, it will eventually make BTC the underlying currency of the corporate world, where these big companies deal with their finances in Bitcoin.

This concept of UBI is very antagonistic because most of the governments don’t want Bitcoin to rule over fiat currencies. Yang has a different opinion on BTC as compared to his opponent, the current U.S. President Donald J. Trump. So, in the upcoming 2020 Presidential campaign, we will see two different mindsets, one against Bitcoin and the other in favor of Bitcoin.

If this idea of Universal Bitcoin Income works and gets implemented on a large scale in future, then it will be a significant achievement for the crypto world — and of course, Yang will be remembered as an iconic figure among the crypto enthusiasts.

Andrew Yang is Optimistic about Bitcoin and Crypto in General

If Yang becomes the President of the United States, we would probably see massive developments in the blockchain and crypto industry. Trump’s opponent has already presented his motto to utilize the technology (Bitcoin) in real-time usage.

Yang is very much positive with the modern technology and believes that instead of getting rid of it, we must find a positive solution to it and utilize it n a positive manner, and fulfill the objective of that technology for what purposes it was invented. He believes blockchain is a great innovation. Talking further on this topic, Yang linked the financial system of corporations with the UBI concept and said that it must be paid in BTC in the future.

In a Democratic debate in Houston, Mr. Yang announced that he would be giving away a dividend of $1K to almost ten families each month. He suggested that these payouts may be given in Bitcoin rather than the USD. Questions are being raised that this freedom dividend campaign maybe against the campaign finance laws.

However, the debate is that Bitcoin’s implementation in real-world is an essential priority for Yang, and this could be a significant breakthrough for the crypto world if Trump loses the next elections.

This is an excellent sign for the crypto community of the United States as at the moment, the President is not a big fan of cryptocurrencies, and different bills are being observed against cryptocurrencies. Yang will have the support of the crypto community of the U.S., and as his incentives are very attracting for crypto users, he will have all the votes in his bank. Let’s see what further plans of Mr. Yang are and how he attracts Americans towards this UBI concept.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

Never miss our daily cryptocurrency news, price analysis, tips, and stories. Join us on Telegram | Twitter or subscribe to our weekly Newsletter.

Binance and Paxos Stablecoins about to Get U.S. Regulatory Approval

by

As stablecoins are getting popular among the crypto world, we keep seeing new stablecoins coming in the market almost every week. In the past few weeks, two new stablecoins have emerged; the first one got launched by Paxo’s gold-backed Ethereum token, PAX Gold (PAXG), and the other one by Binance, BUSD that is backed by the U.S. Dollar.

As technology keeps evolving, different solutions have been presented to counter several problems that were occurring in the crypto sphere. Stablecoins are the solution to the volatility of the market as these digital assets are pegged with fiat currencies or any other asset.

About a week ago, Binance in collaboration with Paxos announced that they are going to launch a stablecoin backed by U.S. Dollar, BUSD. Paxos has already created such other stablecoins including, TrueUSD (TUSD), Gemini Dollar (GUSD), USDCoin (USDC), and also the Paxos Standard (PAX). All these Paxos developed stablecoins have received clearance from the regulatory authorities of NYDFS.

https://twitter.com/blocksumgroup/status/1174165675641835521

Paxos will be the custodian and issuer of BUSD tokens. An auditing process will take place each month and users will need to complete KYC while buying the token from Binance or Paxos. Binance with time has grown into a global network and it is one of the trusted crypto networks in the market. This collaboration is a new step towards bringing stability to the crypto world.

Paxos is an international crypto-asset firm that announced the release of its PAX Gold token, not too long ago. The firm affirms that its latest stablecoin project will be the first among crypto assets to redeem their token against the physical gold. Moreover, the U.S. regulatory, NYDFYS (New York Department of Financial Services) has received a regulatory nod of approval for the stablecoin PAXG.

If PAXG receives approval from the regulatory authority, it will be their first gold-backed crypto that will be available for trading to New York residents.

The Paxos gold tokens, each will be backed by one fine troy ounce of gold from London Good Delivery. The gold will be stocked across hidden cells all over London and if the users would have any concern regarding their assets, they would have the option to have complete control over their assets (gold) that will be linked with their holdings. Moreover, the users will also be allowed to move their tokens like any other ERC-20 based crypto.

These features give an edge to PAXG and make it a lot easier for users to have access to their assets (gold) without any sort of hurdle. As PAXG is being run by the Ethereum blockchain, it can be traded all over the world in nanoseconds.

The U.S. government has raised concerns over several cryptocurrencies and they are almost about to ban Veneuzulean crypto, Petro. If in such an atmosphere PAXG and BUSD receive a green signal from the U.S. regulatory authorities then it will be a good sign for the crypto market and crypto users of the United States.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

Never miss our daily cryptocurrency news, price analysis, tips, and stories. Join us on Telegram | Twitter or subscribe to our weekly Newsletter.