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FOIL Request Denied by NYDFS Puts Ripple’s Subsidiary (XRP II, LL) in a Hot Dispute

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FOIL Request Denied by NYDFS Puts Ripple’s Subsidiary (XRP II, LL) in a Hot Dispute

FOIL Request Denied by NYDFS Puts Ripple’s Subsidiary (XRP II, LL) in a Hot Dispute

Ripple currently enjoys a fair share in the current boom that is happening in the crypto-market. Outside this, the cryptocurrency is expanding its reach in every way including cross-border payments. At the start of the bull market, altcoins (including XRP) failed to gain much traction until Bitcoin broke lots of resistance. It is necessary to know that XRP reached an excellent high when Coinbase enabled the trading of XRP tokens to its New York traders on May 14th when the price of BTC reached $8,000.

Amid the recent resurgence on the price of XRP, a new controversy surfaced which involved Ripple’s subsidiary (XRP II, LL). The Founder of Messari Crypto Ryan Selkis – in a Twitter thread – stated that his FOIL’s request in regards to Ripple’s XRP II affiliate sales and discounts was declined by NYDFS; the CEO hinted that there was something fishy about the move from Ripple and its subsidiary.

As part of the bid to encourage institutional investors, Ripple’s subsidiary XRP II, LL., is a registered money-service business for institutional investors. Selkis FOIL request involved a formal tender that demanded important details from New York State based on New York’s Freedom of Information Law [FOIL].

The first request in the legal tender was in regards to the average sales price that Ripple’s subsidiary offered its customers from 2016 to 2019. However, the second and the third request concentrated on the discount spot the subsidiary provided, and the overall sales of XRPs performed.

Another black tag that even spurred the controversy with XRP II was the fact that it took almost three-and-a-half months for Selkis to receive a reply after filling the FOIL’s request – he filed the appeal on Jan.29th and got a response on May 13th.

Ryan Selkis stated this together with photographs of his filed request:

1/ In January, I filed a FOIL request with the NYDFS regarding Ripple’s XRP II affiliate’s sales and discount policies. Remember, XRP II HAS A BITLICENSE. Today, after 3.5 months, I received a response. They denied the request. Thread.”

Furthermore, the reply given involved a reason why his FOIL request was rejected. The reason was that revealing vital information of such would result in a

substantial competitive injury to the subject enterprise.”

In reply to this, Selkis stated:

disclosing the discounts Ripple and its affiliate were negotiating with its heavily marketed commercial partners was off-limits.”

Selkis didn’t stop here; he went on to accuse NYDFS of depriving the general public the right to know about the discount spot offered by the subsidiary, and also the overall sales of XRP performed that the affiliate received.

Again, the CEO subjected the denial of his FOIL request to

“regulatory capture.”

He further added this:

If a regulated entity can get away with this sort of material obfuscation, imagine what the status quo is today in crypto.”

Nevertheless, it is seen that this issue won’t distort the sentiments of the public, but lots of Twitter users have asked Selkis to get to the root of this matter and expose any illegal move.

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"}” data-sheets-userformat=”{"2":513,"3":{"1":0},"12":0}”>Latest XRP Coin News and Ripple Industry Updates

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EOS Price Prediction Today: Daily (EOS) Value Forecast – May 20

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34-Million-EOS-Officially-Burned

34-Million-EOS-Officially-Burned

  • On the upside, if the price is sustained above the EMAs, the bulls are likely to retest or break the $6.60 and $6.80 resistance levels.
  • However, if the bulls fail to break the resistance levels, the crypto’s price is likely to fall back to the range bound zone.

EOS/USD Medium-term Trend: Ranging

  • Resistance levels: $ 6.80, $7.0, $7.20.
  • Support levels: $6.20, $6, $5.80.

Last week the price of EOS was in a bullish trend. On May 16, the crypto’s price tested a high of $6.80 and was resisted. The market fell and was in a downward correction to the support level at $5.80 price level. On May 19, the crypto’s price was in a bullish move but was resisted at the $6.60 price level. The crypto’s price is above the 12-day EMA and the 26-day EMA which indicates that price is likely to rise.

On the upside, if the price is sustained above the EMAs, the bulls are likely to retest or break the $6.50 and $6.80 resistance levels. However, if the bulls fail to break the resistance levels, the crypto’s price is likely to fall back to the range bound zone. Meanwhile, the market is at the overbought region of the daily stochastic but below the 80% which indicates that price is in a bearish momentum and a sell signal.

EOS/USD Short-term Trend: Ranging

On the 1-hour chart, the price of EOS is in a bearish trend zone. On May 19, the crypto’s price reached a high of $6.52 but was resisted. The crypto’s price fell and was in a downward correction. The bears have broken the 0.236, 0382 and the 0.50 Fib. retracement levels.

The price is in a downtrend zone but the 0.618 retracement level is likely to hold. In other words, the price may fall to the $6.19 price level. Meanwhile, the market has reached the oversold region of the daily stochastic but below the 40% range. This indicates that the price of EOS is in a bearish momentum and sell signal.

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

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Bitcoin Has Soared Above Intrinsic Value During Latest Rally, JPM Strategists Claim

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Strategists from United States banking giant JPMorgan Chase (JPM) have argued that bitcoin (BTC)’s recent rally has ostensibly soared past what they calculate to be its intrinsic value. Their analysis was reported by Bloomberg on May 20.

The strategists — who reportedly include JPMorgan global market strategist Nikolaos Panigirtzoglou —  judge that the top coin has recently been trading in a way that mirrors its late 2017 rally, which preceded a protracted price slump.

To ascertain the coin’s intrinsic value, the strategists reportedly analyzed bitcoin as a commodity and calculated its cost of production based on parameters such as estimated computational power, electricity costs and hardware energy efficiency, Bloomberg notes. They reportedly stated:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

Bitcoin — which has seen a renewed lease of life since April — has traded as high as almost $8,300 within the last week — having traded sideways below $5,000 throughout February and March. In mid-December 2018, the top coin had traded below the $3,300 mark — with its current price point thus representing a roughly 150% gain over its bear market lows.

Bitcoin’s 3-month chart, Feb. 20 — May 20 2019

Bitcoin’s 3-month chart, Feb. 20 — May 20 2019. Source: CoinMarketCap

In an apparent qualification of their analysis, JPMorgan’s strategist are cited by Bloomberg as having noted that:

“Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.”

As reported, JPMorgan CEO Jamie Dimon has long adopted a sceptical stance toward decentralized cryptocurrencies such as bitcoin, even as he steers the megabank toward launching its own blockchain-powered native settlement digital asset, JPM Coin.

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Ethereum-Based Stock Exchange Plans First Company Listing in June

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SprinkleXchange, a stock exchange built on ethereum, is reportedly listing its first company next month.

Sprinkle Group CEO Alexander Wallin told Bloomberg in an interview published Friday, “We have the luxury of being first with this, but we’re aware that it will become a crowded market.”

The Bahrain-based platform, operating within a regulatory sandbox created by the country’s central bank, uses a decentralized clearing and settlement system that uses automation in order to reduce time and cost. Prices will be set using the Dutch auction method, with SprinkleXchange taking a 1 percent fee.

Wallin told the news source that the cost of listing would be similar to on a Swedish stock exchange, but “you get global access and we can show that you also get better liquidity.”

SprinkleXchange is aiming to attract companies with a market capitalization of $20-$200 million. It expects to list 35 companies over the next 12 months and as many as 1,000 over the next few years. As well as listed stocks, the firm will offer trading in cryptocurrencies and also plans to add exchange-traded funds in the future.

A number of traditional stock exchanges are currently moving to integrate blockchain tech in their platforms. Switzerland’s top stock exchange, SIX, for instance, is expected to roll out a blockchain platform to speed up trading later this year. While the Gibraltar Stock Exchange recently started allowing the listing of tokenized securities.

The Australian Securities Exchange is notably rebuilding its ageing CHESS settlement platform using blockchain tech provided by Digital Asset. And other stock exchanges, including in Jamaica, Thailand and Spain, have also announced initiatives around blockchain and crypto assets.

Bahrain image via Shutterstock 

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Terrified Central Bank Attempts to Arrest Myanmar’s Bitcoin Binge

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By CCN: An emerging economy which expects to attract $5.8 billion worth of Foreign Direct Investments is belittling its goals with an anti-technology stance.

Myanmar is the latest developing country that is hinting to shut doors in the face of bitcoin, a decade-old global cryptocurrency which proposes to replace banks with a decentralized network of transaction validators and bookkeepers. Anybody with a decent internet connection can participate in the bitcoin economy, which further makes it an attractive asset for people with limited gateways to participate in global economies.

But, to the Central Bank of Myanmar (CBM), bitcoin is more a liability than an opportunity. The central bank earlier this month announced that it does not recognize bitcoin as money, stating that it would not allow Myanmarese financial institutions to accept or facilitate its transactions. The same ruling applied to cryptocurrencies having properties as that of bitcoin.

Bitcoin Adoption Booming in Myanmar

MMTimes.com reports that Myanmarese investors have been increasing their stakes in bitcoin and similar cryptocurrencies lately. Local advertising for bitcoin exchanges on social media is at its peak, which is prompting more people to board the bitcoin bandwagon. CBM fears that the process might shift a considerable capital from Myanmar’s own markets to an industry that is not theirs, which is why the central bank is discouraging people from investing in or using bitcoin and similar cryptocurrencies.

U Aung Aung, an IT professional working at a multination company in Yangon, told MMTimes that Myanmarese people like him face huge restriction on banking. He admitted purchasing some $20 worth of BTC back in 2017 after finding the cryptocurrency appealing for conducting flawless ‘global e-commerce and aid.”

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There are millions of people like Aung in the world that have entered the bitcoin economy for its underlying technological potential. The frenzy went to its peak during December 2017, when the bitcoin market valuation jumped to as high as $313.89 billion, almost five times the current GDP of Myanmar. A massive downside correction in 2018 brought the bitcoin rates almost 85-percent down. Nevertheless, the market now stands near $144 billion owing to an increase in institutional interest in first-tier countries like the US, Singapore, Japan, and Switzerland.

The Choice Between Doing an India or a Japan

CBM is now left with two options: either it can restrict people from investing in bitcoin like the Reserve Bank of India did, or it can take a proactive approach like Japan or Switzerland to make Myanmar a global hub for bitcoin-related developments.

U Nyein Chan Soe Win, the chief executive of digital commerce platform Get Myanmar, CBM does not have constitutional backing to announce an outright ban on cryptocurrencies. It is likely for the lawmakers to first define bitcoin in legal books before pursuing action against or in favor of the cryptocurrency.

“Before making crypto illegal, its impact on the local currency and compatibility with existing policies should first be analyzed and discussed,” he told MMTimes.com.

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Cryptocurrencies Pose No Threat to Financial Stability: EU Central Bank

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The European Central Bank (ECB) has said that cryptocurrencies are currently not a threat to financial stability in the euro zone.

In its latest paper on the subject, published Friday, the ECB said the combined value of crypto-assets is small relative to the financial system, and “linkages” to the financial sector are still limited. Further, there are banks in the EU do not appear to have “systemically relevant” holdings of crypto-assets.

The ECB also said cryptocurrencies do not perform the functions of money. A “very low” number of merchants currently allow buying of goods and services with bitcoin, and there is no “tangible impact on the real economy” or on monetary policy.

The central bank says:

“The high price volatility of crypto-assets, the absence of central bank backing and the limited acceptance among merchants prevent crypto-assets from being currently used as substitutes for cash and deposits, as well as making it very difficult for crypto-assets to fulfil the characteristics of a monetary asset in the near future.”

Regarding the stablecoin concept, the ECB says that cryptos could become less volatile if they were collateralized by central bank reserves. That could bring new issues to address, however: “Such collateralisation could result in additional demand for central bank reserves, which could have implications for monetary policy and its implementation.”

The ECB is also currently not in favor of issuing a central bank digital currency, but is open to exploration due to the evolving digital economy.

“In principle, a CBDC could be designed as a user-friendly risk-free asset that meets the public’s demand for an economy that is both digitalised and safe,” the central bank says.

Crypto-assets also come outside the scope of current EU payment services regulation, it continues. Further, under the current regulatory regime, crypto-assets “can hardly enter EU financial market infrastructures (FMIs).”

The paper states:

“Crypto-assets cannot be used to conduct money settlements in systemically important FMIs. To the extent that they do not qualify as securities, central securities depositories (CSDs) cannot undertake settlement of crypto-assets. Even if crypto-assets-based products were to be cleared by central counterparties (CCPs), these would need to be authorised and to satisfy existing regulatory requirements, albeit at additional costs and with no clear benefits to EU CCPs.”

However, it concludes that, the risks or potential implications of the technology are “limited and/or manageable on the basis of the existing
regulatory and oversight frameworks.”

The paper largely echoes sentiments already made public by the ECB. Back in September, the institution’s head, Mario Draghi, said that the ECB sees no “concrete need” to issue a digital version of the euro. He also previously said that financial institutions in the EU do not appear to be as enthusiastic about cryptocurrencies as the public.

ECB image via Shutterstock

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