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| February 18, 2018

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Japanese Crypto Associations Merging to Restore Trust Across the Industry

February 16, 2018 |

Japanese Crypto Associations Merging to Restore Trust Across the Industry

Japan’s two cryptocurrency associations have reportedly decided to merge in order to restore trust in the industry and accelerate self-imposed rules. Once approved by the Japanese financial regulator, the new organization will have the power to set penalties for breaches of self-regulation.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Two Crypto Associations Merging

Japan currently has two cryptocurrency industry associations: the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA). The former is headed by Bitflyer CEO, Yuzo Kano, and has a total of 88 members, while the latter has a total of 154 members, according to Minkabu publication.

Japanese Crypto Associations Merging to Restore Trust Across the IndustryThe two organizations have reportedly been in talks to merge after the hack of one of the country’s largest exchanges, Coincheck, where 58 billion yen worth on the cryptocurrency NEM were stolen. They “are hurried to restore trust in the industry,” Forbes Japan reported.

They “will be integrated to establish a new self-regulating organization,” to focus on areas such as safety management system and compensation of customer assets, the news outlet added. In addition, the new entity will also focus on the reliability of crypto exchanges that have already been approved by the Japanese Financial Services Agency (FSA). Currently, there are 16 approved exchanges and 16 under review, including Coincheck.

On Thursday, Nikkei reported:

Two cryptocurrency industry groups in Japan [JBA and JCBA] have agreed to merge in an effort to accelerate the establishment of voluntary regulations and regain public trust in the aftermath of a massive virtual currency heist.

Set to launch on April 1, “The new organization’s chairman will likely be JCBA Chairman Taizen Okuyama, president of Money Partners Group,” the news outlet detailed, adding that Kano is “expected to become the self-regulatory body’s vice chairman.”

Commenting on the news of its merger with the JBA, the JCBA issued a statement on Thursday, stating that no details have been decided at this time.

Accelerating Self-Regulations

Japanese Crypto Associations Merging to Restore Trust Across the IndustryThe new entity will need the approval of the FSA. Under Japan’s revised payment services law which went into effect in April of last year, cryptocurrency operators are allowed to form a self-regulatory organization. They can “set industry rules, conduct investigations on members, and impose punishment,” the Japan Times elaborated.

However, the FSA previously “refused to allow two self-regulatory bodies, urging the industry to create a unified organization by merging the JBA and the JCBA,” Nikkei explained on Thursday, adding that:

Once the new body is approved by the agency, it will gain the power to set penalties for breaches of its self-imposed rules. This should also help address calls by banks and other businesses in the conventional financial industry for virtual currency businesses to establish a robust self-regulatory regime.

Do you think the merger will help the crypto industry gain more of the public’s trust? Let us know in the comments section below.

Images courtesy of Shutterstock.

Need to calculate your bitcoin holdings? Check our tools section.

The post Japanese Crypto Associations Merging to Restore Trust Across the Industry appeared first on Bitcoin News.

Bitcoin News

A ‘poor man’s trust’ may be a poor estate plan

February 11, 2018 |

Dear Liz: I am 85 and my wife is 76. We have a house free of mortgage worth about $ 1 million. We have market investments above $ 4 million and life insurance of $ 1 million. We do not have a trust, just a will. Our financial advisor says that we do not need a trust because we have named both of our…

L.A. Times – Business

Bitgo Snaps Up Kingdom Trust, Paving the Way for Custodial Cryptocurrency Offerings

January 26, 2018 |

Bitgo Snaps Up Kingdom Trust, Paving the Way for Custodial Cryptocurrency Offerings

Bitcoin payment specialists Bitgo have announced the acquisition of Kingdom Trust, an investment firm with custody of over $ 12 billion in assets. The move will enable the South Dakota-based Kingdom Trust Company to offer custodial cryptocurrencies such as bitcoin, ripple, and ethereum to its investors. This will make it easier for traditional investors to enter the lucrative crypto markets without needing to assume responsibility for safeguarding their holdings.

Also read: Dr. Doom (Professor Nouriel Roubini) Calls Stablecoin Tether a Scam

Bitgo Expands Its Kingdom

Bitgo is the web’s best known cryptocurrency payment processor, responsible for over $ 10 billion of transactions a month, much of which comes from major bitcoin exchanges. Its purchase of Kingdom Trust is an interesting one for a number of reasons. Two years ago, it would have been hard to envisage a day when a bitcoin company would be acquiring a firm from the world of traditional finance, not least one with 100,000 customers and $ 12 billion of assets in its care.

Bitgo Snaps Up Kingdom Trust, Paving the Way for Custodial Cryptocurrency Offerings

Announcing the news, Bitgo CEO Mike Belshe said: “Global financial markets have longed for an end-to-end solution offering both the technology to secure digital currencies as well as the legal and compliance controls necessary to integrate into mainstream financial portfolios…Kingdom Trust has served as a 40 Act qualified custodian for almost a decade and has developed the expertise required by institutional investors necessary for compliance with the Act.”

Double Digit Gains for the 1%?

The move, subject to approval, will suit both parties, enabling Bitgo to grow its brand and tap into a previously inaccessible market, and giving Kingdom Trust a means to ease into the burgeoning world of bitcoin, ethereum and all the rest. As an independent qualified custodian, Kingdom Trust enables registered investment advisors (RIAs) to manage the assets of high-net worth individuals – the 1% in other words. These are the sort of people who have neither the time or inclination to open a Coinbase account, but who are happy for RIAs to make astute investments on their behalf, and right now, crypto is where the money’s at.

Kingdom Trust provides custody solutions for “individual investors, investment sponsors, family offices, advisory firms, broker-dealers and various other investment platforms”. In addition to stocks, bonds, and commodities, those monied individuals now have another item to add to their basket in the form of cryptocurrency.

Do you think bitcoin companies buying up traditional finance companies is likely to become a trend? Let us know in the comments section below.

Images courtesy of Shutterstock, and Bitgo.

Need to calculate your bitcoin holdings? Check our tools section.

The post Bitgo Snaps Up Kingdom Trust, Paving the Way for Custodial Cryptocurrency Offerings appeared first on Bitcoin News.

Bitcoin News

Grayscale Will Launch Stock Split for Bitcoin Trust Shares

January 22, 2018 |

Grayscale Will Launch Stock Split for Bitcoin Trust Shares

This week the sponsor of the Bitcoin Investment Trust, Grayscale Investments has announced the launch of a 91-for-1 stock split of the Trust’s issued and outstanding shares. According to Grayscale, the division will take place on January 26 and shareholders will receive 90 shares for each their original shares held.

Also read: Markets Update: Cryptocurrency Prices Rebound But Uncertainty Still Lingers

The Bitcoin Trust Is Creating a 91-1 Stock Split

Grayscale Will Launch Stock Split for Bitcoin Trust SharesGrayscale Investments, Bitcoin Investment Trust (OTCQX: GBTC) is a popular investment fund based on the price of bitcoins held in reserves. Most investment trusts own a fixed amount of the asset and investors purchase shares of the Net Asset Value (NAV). One GBTC share is worth around 1/10th of BTC and users also pay portfolio maintenance fees. Investors like GBTC because it is considered one of the only stock tied to real bitcoins that are offered on a public stock market. Because BTC values have rallied for well over a year GBTC prices have followed suit making the price per share a bit expensive for some. Unlike purchasing bitcoins in fractions, investors have to buy an entire share to get in on GBTC investing. The increased price has made it harder for ordinary retail investors to buy shares so Grayscale has decided to create a stock split.

From $ 1,800 Shares to $ 18 Per GBTC

Grayscale Will Launch Stock Split for Bitcoin Trust SharesBasically, a stock split or divide increased the number of shares allocated to the investment vehicle. For instance right now Grayscale holds 1,916,600 shares of GBTC and one share is worth 0.09242821 BTC. If a user purchases ten shares, then they have the equivalent of 1 BTC and Grayscale holds a total of roughly 170,000 BTC. With the launch of a 91-for-1 stock split every share that’s worth .092 BTC will drop to 0.00101 BTC. After the split, there will be 174,410,600 GBTC shares in circulation. Grayscale believes the move will make GBTC shares more affordable and it will entice retail investors. Currently, one GBTC share is roughly around $ 1,767 USD, and after the split, it will be worth about $ 17.60 respectively.  

“It is the only product (of its kind) available to investors for purchase at net asset value,” explains the Grayscale director Michael Sonnenshein in a recent video interview.

Grayscale Will Launch Stock Split for Bitcoin Trust Shares
The Bitcoin Investment Trust price per share at 2:30 pm EDT on January 21, 2018.

The Possibility of Even More Shares and Automatic Issuance

Grayscale also reveals that the stock split could result in more shares than estimated on January 26.

“After the close of business on the record date, the Trust will announce the total number of shares that will be issued and outstanding immediately after effectiveness of the stock split on January 26, 2018, which will give effect to any such new shares created after the date of this press release and up through the record date,” Grayscale Investments details.

Shareholders are not required to take any action to receive the shares in connection with the stock split and they will not be required to surrender or exchange their shares in the Trust — The transfer agent will automatically issue the new shares in the stock split.

Stock Splits Can Affect a Stocks Overall Value Either Negatively Or In a Positive Way

Stock splits happen all the time in the financial world, but it’s interesting to see the method applied to an investment fund based on actual bitcoins held in storage. There are two scenarios that could happen when more GBTC shares become available as far as the stock’s price. One, the market could get over diluted, and the price drops in value at some point after the split; or, the split shares could make the overall asset holdings increase in value while also creating more accessibility to ‘average Joe’ investors. Grayscale is hoping for the latter outcome.

What do you think about Grayscale splitting GBTC? Let us know your thoughts in the comments below.

Images via Pixabay, Grayscale, and Google Finance. 

Want to etch a document into the bitcoin cash blockchain? Check out our bitcoin cash powered notary service here.

The post Grayscale Will Launch Stock Split for Bitcoin Trust Shares appeared first on Bitcoin News.

Bitcoin News


O.J. Simpson: I’m Not Khloe’s Dad, ‘Trust Me’

January 10, 2018 |

O.J. Simpson seems pretty convinced he’s NOT Khloe Kardashian’s real father — and he’s banking on you buying those two magic words … “Trust me.” Juice finally addressed the conspiracy theory that’s been floating around for decades … that…

Why setting up a living trust may be wise, especially in California

January 7, 2018 |

Dear Liz: Is there a minimum amount of assets required before a revocable living trust is advisable? I am retired but my wife is still working. If we do not include our 401(k) plans, our total liquid assets (my wife’s monthly salary, my monthly Social Security benefit and my pension check) are…

L.A. Times – Business


Trump Trust Attorney’s Wife Busted Having Sex with a Jail Inmate

September 7, 2017 |

Teresa Jo Burchfield, whose husband is an ethics attorney for President Trump’s business, allegedly got caught banging a Virginia jail inmate. 53-year-old Burchfield was arrested Tuesday in a parking lot next to Fauquier County Jail. Deputies say…

Don’t trust the list prices on Amazon, Consumer Watchdog says

March 20, 2017 |

After a barrage of lawsuits directed at the online shopping industry, it appeared Amazon Inc. was starting to phase out list pricing, a controversial practice accused of deceptively inflating how much consumers save through the e-commerce giant.

But a study commissioned by Consumer Watchdog finds…

L.A. Times – Business

Baby Jessica’s Trust Fund Lost in Stock Market Crash

March 10, 2017 |

Two decades after she grabbed America’s attention by falling into a dark pit, “Baby Jessica” watched the stock market do the same thing. In an exclusive interview with People , 30-year-old Jessica McClure Morales says she lost most of her $ 1.2 million trust fund when the market crashed in 2008….