The week’s developments in the crypto currencies world including crypto custodian Copper reveals processing of $500 million in 3 months

Crypto custodian Copper reveals processing of $500 million in 3 months

London-based crypto custodian services provider Copper has announced that it has processed $500 million worth of crypto transactions on its platform since its launch in June. Copper provides “military-grade” custody services to its clients. “Although we expected to see a gradual uptake in execution and settlement volumes across our clients, it’s really heartening to see such a rapid increase in engagement,” Dmitry Tokarev, founder and CEO of Copper, said. Known for its high-end security, Copper offers digital asset custodial services to major investors and institutions. Earlier this year, the company revealed that it revamped the security protocols of its custodial service by adding “military-grade optical air-gapping” to ensure complete security of an offline repository of asset owners’ shared keys during the transaction signing process.

Source: “Crypto custodian Copper reveals processing of $500 million in 3 months”, available at https://www.financemagnates.com/cryptocurrency/news/crypto-custodian-cooper-reveals-processing-of-500-million-in-3-months/

BitPay now lets merchants accept Ethereum’s cryptocurrency

Payment solution BitPay will soon support ethereum. With BitPay, subscribing businesses will be able to accept payments in bitcoin, bitcoin cash and ether, along with a handful of stablecoins. Launched in 2011, BitPay now settles both fiat and crypto payments in over 200 countries. The company stated to CoinDesk that “BitPay regularly evaluates blockchains and cryptocurrencies to support the company’s goals of making it easy to send and receive payments for goods and services globally. We selected ethereum as it has broad support for real-world applications and is widely adopted.” BitPay CEO Stephen Pair said ethereum was the next logical choice due to its current market base. “As one of the largest cryptocurrencies by market cap and one used by thousands of companies, Ethereum is the next logical choice,” he concluded.

Source: “BitPay now lets merchants accept Ethereum’s cryptocurrency”, available at https://www.coindesk.com/payment-service-bitpay-announces-ether-integration

Bitcoin ETFs might finally get SEC approval

Earlier this month, VanEck SolidX Bitcoin Trust was launched. It has outstanding ETF application with regulators, and therefore still isn’t a public ETF that the average investor can buy and sell. Only brokers, hedge funds, and institutions can purchase, and privately trade, shares with one another. Regarding VanEck’s and other Bitcoin ETF applications, SEC Chair Jay Clayton recently remarked that there is still “work left to be done”, noting that Bitcoin itself trades on unregulated exchanges, and could be subject to price manipulation. In addition to VanEck’s application, there are two other ETFs up for SEC approval: Bitwise Bitcoin ETF Trust and Wilshire Phoenix’s United States Bitcoin and Treasury Investment Trust. The SEC has delayed ruling on these ETFs, but now has a final decision date for Bitwise on Oct. 13 and for VanEck on Oct. 18, with a tentative deadline for Wilshire on Sept. 29.

Source: “Bitcoin ETFs Might Finally Get SEC Approval”, available at https://www.barrons.com/articles/bitcoin-etfs-might-finally-get-sec-approval-51568404735

France and Germany agree to block Facebook’s Libra

France and Germany have agreed to block Facebook’s Libra cryptocurrency. In a joint statement, the two countries affirmed that “no private entity can claim monetary power, which is inherent to the sovereignty of nations”. Germany’s Finance Minister Olaf Scholz said a core element of state sovereignty is the issuance of a currency, Bloomberg reported: “We will not allow private companies to do it.” Similarly, France’s Finance Minister Bruno Le Maire said that Facebooks’ new cryptocurrency should not be allowed to operate in Europe while concerns persist about sovereignty and persistent financial risks.

Source: “France and Germany agree to block Facebook’s Libra”, available at https://www.reuters.com/article/us-facebook-cryptocurrency-france-german/france-and-germany-agree-to-block-facebooks-libra-idUSKCN1VY1XU/

Novogratz’s Galaxy Digital plans push into crypto underwriting

Former macro manager, Michael Novogratz, wants to make Galaxy Digital Holdings Ltd. the Goldman Sachs of cryptocurrencies. Galaxy recently received approval from the Financial Industry Regulatory Authority to underwrite registered public offerings and also has plans for security token offerings as well. Galaxy invests in start-ups and coins, and helps companies secure funding for everything from early to later stage rounds. Galaxy managed $390 million of assets as of July 31. Novogratz noted that “regulators have been a little slower than we want them to be, but I think they are heading in the right direction” and he hopes that his firm will enjoy a first-mover advantage due to its focus on crypto from day one.

Source: “Novogratz’s Galaxy Digital Plans Push Into Crypto Underwriting”, available at https://www.coindesk.com/nasdaq-lists-new-decentralized-finance-index-including-makerdao-0x-augur

Claire Cummings

Claire practises financial services law with a focus on regulatory issues, cryptocurrencies and tokens, trading and brokerage documentation and advising both existing and start-up funds and fund managers.

If you would like to discuss any of the points we raise, please contact me or one of our other lawyers.

Phone: 0207 585 1406
Email: claire.cummings@cummingsfisher.com

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