3iQ Research Group consolidates the top five cryptoasset stories of interest
to investment advisors and our investors.
Bitcoin Takes out $10,000 USD as Prices Accelerate
June 21 – For the first time in nearly 15 months, the price of bitcoin has taken out the $10,000 USD level to the upside. The $10,000 level for bitcoin was a notable breach, as the level was previously a launch pad for prices back in 2017 as cryptoassets hit the mainstream media. The year also marked entrances from several notable financial institutions. Bitcoin’s all-time highs, which were around $19,500 USD depending on the exchange, were set back in late 2017, and appear to be within grasp as prices have recouped over 50% of the losses set in 2018. “The bounce back of bitcoin has been fairly extraordinary,” said George McDonaugh of KR1 Plc, a blockchain and cryptocurrency investment firm. “Money didn’t leave the asset behind, it just sat on the sidelines waiting to get back in.”
Read the full article from Bloomberg here.
FATF: Crypto Exchanges Should Share Client Data Between Each Other
June 21 – The Financial Action Task Force (FATF) has established new guidelines for cryptoasset trading platforms and firms who deal with cryptoassets. The FATF is requesting that “virtual asset service providers” (VASPs), such as cryptoasset trading platforms, should share key customer data such as names, account numbers, and national identification numbers when transferring funds or cryptoassets between each other. An excerpt from the recommendation paper suggest that the VASPs “… obtain and hold required and accurate originator [sender] information and required beneficiary [recipient] information and submit the information to beneficiary institutions … if any. Further, countries should ensure that beneficiary institutions … obtain and hold required (not necessarily accurate) originator information and required and accurate beneficiary information …”. The FATF also notes that individuals are not VASPs if they spend their cryptoassets on goods or services, or if the movements of their cryptoassets are for “a one-off exchange or transfer”. An FATF plenary session was held on June 21 in Orlando, Florida to discuss the new guidelines for VASPs. “We will not allow cryptocurrency to become the equivalent of secret numbered accounts [and] we will allow for proper use, but we will not tolerate the continued use for illicit activities,” said the US Treasury Secretary Steven Mnuchin at the plenary session.
Read the full article from CoinDesk here.
Read the full guidance paper from the FATF here.
Shoppers Drug Mart Exploring Blockchain Technology to Trace Medical Marijuana
June 18 – The popular Canadian drugstore Shoppers Drug Mart is reportedly exploring the use of blockchain technology to help trace the sources of medical marijuana it distributes. Shoppers Drug Mart has partnered with the Canadian firm TruTrace to develop the project which aims ensure the integrity of their supply chain. The pilot is expected to be launched sometime this summer, and will deploy in Shoppers Drug Mart pharmacies by November 2019. “When a patient takes medication, there is an expectation that it is standardized, and they can expect consistent clinical outcomes and result,” said Ken Weisbrod, the Vice-President of Shoppers Drug Mart. “Although that’s not always a guarantee within the medical cannabis industry at the moment, we’re hoping this new program can help change that”.
Read the full article from CTV News here.
Litecoin Foundation to Release a Cryptocurrency Debit Card
June 18 – The Litecoin Foundation, the non-profit organization that oversees the Litecoin network and the cryptocurrency litecoin, has unveiled a new crypto debit card which will allow users to spend their litecoin cryptocurrency like they would with other banking debit or credit cards. The Litecoin Foundation has teamed up with Bibox Exchange and Ternio to develop the debit card, which they dub as the “BlockCard”. Importantly, the debit card will use the client’s cryptocurrency stored on the LoafWallet, which is the official wallet of the Litecoin network. The card will use the Bibox exchange as the custodian for the transactions. “This is an exciting partnership for us as it furthers the Litecoin Foundation’s mission to create more use cases for spending litecoin in everyday life,” said Charlie Lee, the creator of Litecoin and Managing Director of the Litecoin Foundation. “Leveraging Ternio’s BlockCard platform with Bibox’s exchange engine gives Litecoin holders unparalleled access to use their LTC at merchants around the world.”
Read the full article from The Litecoin Foundation here.
Winklevoss Twins Discuss Facebook’s Stablecoin, Want to be “Frenemies”
June 18 – Cameron and Tyler Winklevoss, otherwise known as the Winklevoss twins, recently discussed Facebook’s upcoming stablecoin called the Libra. The Winklevoss twins have been adamant bitcoin supporters over the last several years, founding a major crypto exchange and regulated trust company called Gemini back in 2014. Facebook’s unveiling of their stablecoin Libra has brought a slew of media attention, which could be spurring interest for other digital assets such as bitcoin. Facebook has gathered a notable backing for the stablecoin, which consists of 27 companies including Visa, MasterCard, and PayPal which will help manage the non-profit organization called the Libra Association. The Winklevoss twins famously sued Mark Zuckerberg years ago and won a $65 million USD settlement; however, Facebook reportedly approached the Winklevoss twins and their crypto exchange Gemini to help develop Libra earlier this year. “They’re so much pie to grow [in the cryptocurrency market], I mean, at this point, we need to be frenemies,” said Cameron Winklevoss.
Read the full article from FOX Business here.
3iQ Global Cryptoasset Fund (Class A): Price as at June 24, 2019
3iQ Global Cryptoasset Fund (Class A) Returns as at June 24, 2019
Underlying cryptoasset prices sourced from Bloomberg. The inception date of TIQ101 is April 3, 2018. View charts and more fund data at https://www.theglobeandmail.com/investing/markets/funds/TIQ101.CF/performance/
3iQ Corp. (“3iQ”) is the first Canadian investment fund manager to agree to terms and conditions with the Canadian securities regulatory authorities which permit 3iQ to manage a multi-cryptoasset investment fund available to Canadian accredited investors. 3iQ provides accredited investors with exposure to bitcoin, ether, and litecoin through its 3iQ Global Cryptoasset Fund.
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