Prime Trust to Halt Texas Ops, Reapply ‘Swiftly’ for Licensing

• Prime Trust, a digital-asset custodian, will stop doing business in the U.S. state of Texas effective Jan. 31.
• The company provides custody and other services to key players in the crypto industry such as Swan, Abra and Okcoin.
• Prime Trust withdrew its Texas Money Transmitter License (MTL) application and intends to reapply “swiftly.”

Prime Trust, a digital-asset custodian, has announced that it will cease operations in the U.S. state of Texas at the end of January. The company provides custody and other services to key players in the crypto industry such as Swan, Abra and Okcoin.

In a notice posted on its website, Prime Trust informed affected customers on December 30th that it had withdrawn its Texas Money Transmitter License (MTL) application. Michelle Marin, Senior Vice President of Communications at Prime Trust, stated that the company informed customers not based in Texas on January 23rd in an effort to be transparent. She said, “We continually renew applications, and this is a part of the process. We intend to swiftly reapply and resume business in Texas.”

Public records show that Prime Trust was fined a total of $29,850 by the Banking Commissioner of Texas last year for conducting money transmission activities without a license. When asked for clarification on this, Marin said that the company “chose to accept the Administrative Penalty Agreement to resolve the matter, which was in the best interests of our customers.”

Prime Trust, which is registered in Nevada, provides both custodial and non-custodial services for digital assets and fiat currency to exchanges, broker-dealers, funds and other financial institutions. The company was founded in 2018 and has offices in Las Vegas, NV, San Francisco, CA, and Tokyo, Japan.

Prime Trust’s mission is to make it easier for businesses to accept digital assets and to provide a secure platform to store them. The company also seeks to make it easier for companies to comply with anti-money laundering regulations, know-your-customer requirements, and other compliance measures.

With the withdrawal of its Texas Money Transmitter License application, Prime Trust will not be able to service customers in the state of Texas. However, the company intends to reapply “swiftly” in an effort to resume operations in the state. Customers are encouraged to contact Prime Trust with any questions or concerns.

SEC Rejects Circle’s Plans to Go Public, Valuation Drops to $4.5B

• Crypto payments company Circle announced plans to go public in July 2021 with a valuation of $4.5 billion.
• The U.S. Securities and Exchange Commission (SEC) did not approve of the plans and the deal did not go through.
• Circle CEO Jeremy Allaire announced the news via a tweet in early December.

Crypto payments company Circle had big plans to go public in the summer of 2021, with a valuation of $4.5 billion. However, those plans have been derailed, as the U.S. Securities and Exchange Commission (SEC) did not sign off on the deal.

The news was announced by Circle CEO Jeremy Allaire via a tweet in early December. Allaire said that Circle’s plans to go public didn’t go through because the SEC did not qualify the deal in time. The valuation of the company had doubled by February 2021, and was estimated to be around $9 billion.

Circle is the company behind USDC, the world’s second-largest stablecoin. The company had also announced plans to launch a cryptocurrency exchange called SeedInvest. The exchange would have allowed investors to buy and sell digital assets with USDC.

The SEC’s decision to not approve the plans has come as a surprise to many in the crypto industry. This is because the SEC has previously approved a number of similar deals. The agency has approved several applications for crypto-related businesses to become public companies.

It is not clear why the SEC has chosen to not approve Circle’s plans. The agency has not commented on the decision. It is possible that the SEC has decided that the company is not yet ready to become a public company.

The news of the SEC’s decision has come as a setback for Circle. The company had been looking forward to going public and had made significant investments in the process. It is not clear whether the company will attempt to go public again in the future, or if it will continue to operate as a private company.

The news of Circle’s failed attempt to go public is likely to have a negative impact on the crypto industry as a whole. The SEC’s decision is being seen as a sign that the agency is not yet ready to approve similar deals. This could lead to a slowdown in the adoption of crypto and blockchain technologies by mainstream companies.

It remains to be seen how Circle will respond to the SEC’s decision. For now, the company is focused on continuing to develop and expand its products and services. Despite the setback, the company is still committed to its mission of bringing crypto and blockchain technology to the mainstream.

Secure Stablecoin Djed Set to Launch Next Week

• The Cardano-based decentralized stablecoin djed is expected to launch next week.
• The token is backed by other tokens and requires more than 400% in collateral value to be posted.
• Upon launch, djed is expected to be integrated with over 40 Cardano-based decentralized finance (DeFi) applications.

The highly anticipated Cardano-based decentralized stablecoin djed is expected to launch next week, with developers hoping to provide a more secure and reliable means of value transfer and storage. Developed jointly by Cardano code maintainer IOG and Coti, a layer 1 blockchain, djed is a stablecoin that seeks to provide balance through overcollateralization.

This means that in order to be issued to a user, djed requires more than 400% in collateral value to be posted. This is a much higher level of security than found in other stablecoins, such as terraUSD, which famously fell over 99% in May. Developers hope this overcollateralization will ensure that djed’s value holds stably during periods of market stress.

Djed is expected to be integrated with over 40 Cardano-based decentralized finance (DeFi) applications upon launch. This will enable users to transfer the tokens to merchants and businesses via DjedPay, a payments application designed for use with djed. According to DefiLlama, the Cardano dapp ecosystem currently locks up over $72 million worth of tokens.

IOG and Coti have expressed optimism that djed will become a popular means of value transfer and storage for both traders and merchants. Not only is djed expected to offer higher levels of security, but its integration with Cardano-based DeFi applications means it can also be used to access a wide range of financial services, such as lending and borrowing.

The launch of djed will be closely watched by the cryptocurrency community, as it could signify a shift in the world of stablecoins. If djed is able to provide a secure and reliable means of value transfer, then it could be a major step forward for the cryptocurrency industry.

Australian Crypto Exchange Bailed Out After Creditors Approve Recovery Plan

Bulletpoints:
• Digital Surge, an Australian cryptocurrency exchange, has been bailed out after creditors approved a long-term recovery plan.
• The exchange had held $33 million on FTX, the cryptocurrency exchange that collapsed in November.
• Twenty-five prominent institutions in Australia have come together to start a research program to explore digital asset opportunities.

Digital Surge, an Australian cryptocurrency exchange, has been granted a lifeline after creditors approved a long-term recovery plan. The Brisbane-based exchange had been left in a precarious financial position after holding $33 million on FTX, the cryptocurrency exchange that collapsed in November.

The news of Digital Surge’s financial woes came to light in December when the exchange passed into voluntary administration, a process in which the management hands over control to licensed insolvency practitioners who will try to pay back creditors. Despite the difficult situation, creditors have now approved a long-term recovery plan which will see the exchange pay back its creditors over time.

The long-term recovery plan marks a positive step forward for Digital Surge as it looks to rebuild its business. The company said in a statement that it had “made significant progress” in the past few months and was now “poised to emerge from administration and return to the digital asset market”.

Meanwhile, the Australian cryptocurrency sector is set to receive a boost as twenty-five prominent institutions have come together to start a research program to explore digital asset opportunities. Michael Bacina, partner at law firm Piper Alderman, explains why the country is the prime location to test asset digitization.

The research program will be conducted by the Digital Asset Research Council, which is being spearheaded by prominent Australian law firm, Piper Alderman. It will provide guidance to financial services companies, technology providers and investors on the potential of digital assets and their applications in Australian markets.

The Council will be made up of many of Australia’s most prominent financial services companies and technology providers, including Macquarie, CBA, Westpac, ANZ and more. The Council will be chaired by Piper Alderman Partner, Michael Bacina, and will include a number of industry leaders such as DigitalX’s Leigh Travers and Blockchain Australia’s Nicholas Giurietto.

The formation of the Council and the long-term recovery plan for Digital Surge are both positive developments for the Australian cryptocurrency sector. The Council will provide valuable insights into the potential of digital assets and their applications, while the recovery plan will ensure that Digital Surge’s customers will be able to access their assets in the near future. This will help to restore confidence in the sector and ensure that the industry can continue to grow and develop.

New CTO for Luno as Co-Founder Departs to Pursue Personal Projects

• Timothy Stranex, co-founder and CTO of cryptocurrency exchange Luno, departed from the company in December to pursue personal projects.
• He was replaced as CTO by Simon Ince, who joined Luno just under two years ago as its vice president of engineering.
• Luno has over 10 million customers worldwide, with offices in London, Singapore, Cape Town, Johannesburg, Lagos and Sydney.

Cryptocurrency exchange Luno, who’s parent company is Digital Currency Group, announced that Timothy Stranex, their co-founder and chief technology officer (CTO), had departed from the company in December. Stranex, who had founded the company nearly 10 years prior with Carel van Wyk, Pieter Heyns and current CEO Marcus Swanepoel, left to pursue personal projects.

The company announced that his replacement as CTO was Simon Ince, who had joined Luno just under two years ago as its vice president of engineering. Ince brings with him a great amount of experience in the technology and engineering sector, having previously worked as a software engineer at Microsoft and later as the CTO of a travel meta-search engine.

Luno, which currently has over 10 million customers worldwide, has offices in London, Singapore, Cape Town, Johannesburg, Lagos and Sydney. It is the parent company of CoinDesk and provides services such as buying, selling, and storing cryptocurrency securely.

The company hopes that with Ince’s experience and expertise, their technology will be further advanced and their customers will continue to receive the best service possible. With the ever-evolving cryptocurrency industry, Luno is confident that they are in good hands and will be able to continue to provide their customers with the best experience.

Cryptocurrency Advice: CFP Board, CFA Institute, Finra & SEC Guidance

Bullet Points

• The Certified Financial Planner Board of Standards (CFP Board) and the Chartered Financial Analyst Institute (CFA Institute) have issued guidelines and notices to advisors regarding financial advice about cryptocurrency-related assets.
• The CFP Board issued guidelines in November in a “Notice to CFP Professionals Regarding Financial Advice About Cryptocurrency-Related Assets” to ensure compliance with best practices.
• Finra and the Securities and Exchange Commission have also issued guidance regarding cryptocurrencies and advice.

Cryptocurrencies have become increasingly popular in recent years, as investors see them as a potential opportunity to diversify their portfolios and increase their returns. With this popularity comes the need for financial advisors to understand the nuances of cryptocurrencies and to provide sound advice to their clients. To ensure that advisors are up-to-date on the latest developments in the crypto world and to provide guidance on best practices for investing and advice, the Certified Financial Planner Board of Standards (CFP Board) and the Chartered Financial Analyst Institute (CFA Institute) have both issued notices and guidelines.

The CFP Board issued guidelines in November 2020 in a “Notice to CFP Professionals Regarding Financial Advice About Cryptocurrency-Related Assets”. This notice provides guidance to CFP professionals on providing financial advice about investing in cryptocurrencies, and it outlines the different legal and regulatory requirements for providing such advice. It also covers topics such as disclosure, suitability, and the proper use of blockchain technologies. The CFP Board emphasizes that CFP professionals must comply with all applicable laws and regulations when providing advice regarding cryptocurrency-related assets.

The CFA Institute has also recently launched a new program to provide guidance to its members on cryptocurrency investing and advice. The CFA Society Crypto Council has been established to provide “a single, unified resource” for cryptocurrency-related topics. The Council works to provide a platform for education, research, and advocacy on cryptocurrency-related issues, as well as to facilitate dialogue among CFA Institute members and other stakeholders.

In addition to the CFP Board and the CFA Institute, Finra and the Securities and Exchange Commission (SEC) have also provided guidance regarding cryptocurrencies and advice. Finra recently issued a statement on the sale of digital assets, and the SEC has issued several statements and guidance documents on cryptocurrencies, including its recent guidance on Initial Coin Offerings.

In conclusion, the CFP Board, CFA Institute, Finra, and the SEC have all issued notices and guidance regarding cryptocurrencies and advice. This guidance is meant to provide financial professionals with the information and resources they need to provide sound advice to their clients about cryptocurrency investments. As the cryptocurrency markets become more developed and the regulatory landscape continues to evolve, financial advisors should stay up-to-date on the latest developments in order to ensure that they are providing the best advice to their clients.

Genesis’ $3B Debt Crisis: DCG Looks to Sell $500M in Assets

• Digital Currency Group’s (DCG) Genesis Global Trading is in a dispute with Gemini, their partner on a crypto lending product pitched to smaller investors.
• DCG is reportedly looking to sell some of its venture-capital portfolio, worth around $500 million, to pay off the $3 billion debt owed to creditors by Genesis.
• Lumida CEO and co-founder Ram Ahluwalia has weighed in on the ongoing tensions between DCG and Gemini.

Trouble seems to be brewing for crypto lender Genesis as it reportedly owes its creditors more than $3 billion. To pay off this debt, the Financial Times reported on Thursday that Digital Currency Group (DCG), Genesis’ parent company, is looking at selling some of its venture-capital portfolio, worth around $500 million. The news comes as tensions are escalating between DCG and Gemini, its partner on a crypto lending product pitched to smaller investors.

Gemini, the crypto exchange founded by the Winklevoss twins, escalated the dispute by terminating a key aspect of their relationship. Lumida CEO and co-founder Ram Ahluwalia has weighed in on the ongoing tensions between DCG and Gemini, emphasizing the need for both parties to come to an agreement.

The news of Genesis’ financial troubles is the latest in a string of issues the company has faced in recent times. In late December, Genesis was forced to suspend all new credit and margin loans after a “previously undetected coding error” resulted in the exposure of customer data. It was also reported that the firm had been taking excessive collateral from some of its customers.

The news of DCG looking to sell some of its venture-capital portfolio to pay off Genesis’ debt is likely to have a significant impact on the crypto market. The sale of such a large portfolio of assets could cause a significant drop in the value of cryptocurrencies, as investors will be forced to liquidate their holdings.

It is yet to be seen how the dispute between DCG and Gemini will be resolved. The two companies have been working together on a crypto lending product pitched to smaller investors, and it is unclear whether the product will be able to continue without Gemini’s involvement. Meanwhile, Genesis’ creditors are likely to be eager for a resolution to be reached quickly, in order to recover their funds.

The crypto industry has been under increasing scrutiny in recent months, with governments and regulators around the world introducing a range of new restrictions and regulations. In light of this, the news of Genesis’ debt and the potential sale of DCG’s venture-capital portfolio is likely to add to the already tense atmosphere in the crypto world. Despite this, some experts remain optimistic and believe that the industry will be able to recover from the current crisis.