Roundup 19/12/2018 – Bloomberg ‘Informant Confirms’ Tether Backed by USD

Bloomberg Confirms Tether’s Backing by USD

Bloomberg, the news outlet, reported that Tether is indeed backed by the USD. Allegedly, Bloomberg has an informant inside Tether’s company who has access to the accounts of Tether. The information claims that one account of Puerto Rico’s Noble Bank Ltd. that belongs to Tether had $2.2bn while Tether had a supply of 2.195. Supposedly, the account and the supply also matched on other dates. However, this information is highly dubious. If a simple look at one account (!) could confirm the value of Tether. Why did the independent agency that Tether hired to do so earlier this year not do the same?

Switzerland: Regulation Within Existing Legal Framework

Switzerland has decided that the new technologies behind cryptocurrencies and the new market that they have created can be regulated within existing regulation. However, this approach requires amendments to financial law, banking law and civil law. A central issue in the regulation is the decentralized nature of exchanging and dealing with assets/securities.

France: Amendments for Lower Taxes on Crypto Assets Rejected

The main proposal of the amendments foresaw a flat tax for gains on cryptocurrency investment of 30%. The flat tax accounts for traditional investment tools like bonds, shares and resources. Cryptocurrencies are currently taxed at 36.2% which consists of 19% added value tax and 17.2% social security contributions. Other amendments tried to raise the tax exemption rate in France. Currently it lies, ridiculously low at €305 ($347) annually. For comparison tax exemption for investment lies at €100.000 within 10 years in Germany.

Robinhood Misleads Users With ‘Savings Account’

The Crypto Trading App Robinhood has launched a brokerage account. However, it advertised it as a ‘savings and checking’ account. The account offers with 3% interest a much higher interest than usual savings accounts. This brought the Independent Community Bankers of America (ICBA) to the scene. The independent association sees the misleading declaration as a competitive distortion.

In fact, saving accounts are regulated by the Federal Deposit Insurance Corporation (FDIC), Robinhood’s accounts are instead covered by the Securities Investor Protection Corporation (SIPC). This means that the balances of Robinhood’s client are not insured and by using the account they risk to lose their money. 

Atari: License Agreement with Animoca for Blockchain Games

Atari has signed a license agreement with Animoca Brands Limited. The company is formally a subsidiary of Animoca Brands Corporation Limited. Animoca wants to redesign classic Atari games to function with a blockchain. Animoca has proven that combining the blockchain with mobile games can be very profitable as it is also the publisher for the mobile version of the infamous Cryptokitties games.

Evergreens of the brand of Ataria are e.g. Roller Coaster Tycoon, Pacman, Pong and Space Invaders. Animoca has presumably paid Atari a minimum guarantee of $250,000. Furthermore, a revenue share is due if Animoca’s revenues exceed the value of $500,000. The company can pay these liabilities in shares of its company.