3iQ Research Group consolidates the top five cryptoasset stories of interest
to investment advisors and our investors.
Reminder: Stablecorp and QCAD Information Session on Tuesday July 30, 2019 in Toronto, Ontario
We are happy you to invite you to an information session and product launch for Stablecorp’s new product, QCAD, the very first compliant Canadian stablecoin – transparent, audited and backed by Canadian Dollars. Stablecorp (a joint venture between 3iQ and Mavennet) is launching QCAD in Q4 2019. Please join us on July 30, 2019, from 12:00-1:30 pm at 129 Spadina Ave, Toronto, for a presentation, launch and demo of QCAD.
Bank of China Supports Bitcoin Through New Infographic
July 27 – One of China’s largest state-run lenders, the Bank of China (BoC), has recently published an informative infographic about bitcoin. The infographic explains how bitcoin works, why its price is volatile, and how users can benefit from using a decentralized cryptocurrency. The infographic was surprisingly supportive of bitcoin, which contrasts the views indicated by the government of China over the last several years. The government of China had previously taken a tough stance on cryptocurrencies by banning the trade of bitcoin and outlawing initial coin offerings (ICOs). Last year, the BoC had investigated the use of blockchain technology within its trade finance division. The BoC’s bitcoin infographic may be another signal that China’s skepticism of bitcoin is beginning to fade.
Read the full article from Decrypt here.
See the full infographic here.
The IRS Says 10,000 Crypto Users Need to Pay Back Taxes
July 26 – Last Friday, The Internal Revenue Service (IRS) had warned that around 10,000 holders of cryptocurrencies may be on the hook for dodging taxes relating to digital asset investment returns. The IRS has now begun to send letters to taxpayers who may have failed to report their investment returns or who may have not paid taxes on their cryptocurrency transactions. The IRS said that it has obtained the identifications of these taxpayers through “various ongoing IRS compliance efforts”. The identification of these tax evaders may have been provided by supportive cryptoasset trading platforms and exchanges that implement KYC/AML procedures. “Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” said the IRS Commissioner Charles Rettig.
Read the full article from Bloomberg here.
US Treasury Secretary: New Crypto Rules Likely Coming From US Regulators
July 24 – The US Treasury Secretary Steven Mnuchin has announced that US regulators are likely to start issuing new rules on cryptocurrencies to ensure they don’t negatively impact the existing financial system. Despite being relatively quiet over the past several years, the Trump administration has recently escalated the issues surrounding digital currencies following the announcement of Facebook’s Libra last month. Mnuchin noted that financial regulators need to work together, and not in part, to establish the necessary rules for cryptocurrencies. Around a half dozen of US regulators are already overseeing the industry and working on establishing rules. The regulators include the US Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC). “We’re looking at all of the crypto assets,” said Mnuchin. “We’re going to make sure we have a unified approach and my guess is that there are going to be more regulations that come out from all these agencies.”
Read the full article from Bloomberg here.
Grayscale: Bitcoin 2019 Investor Study
July 26 – A new report from Grayscale Investments has shown that investor interest is rapidly growing for bitcoin. The report, called the “Bitcoin: 2019 Investor Study,” investigated variables through investor surveys, asking them about their perceptions on bitcoin as an investable asset class. According to their surveys, around 36% of American investors would buy bitcoin for investment purposes, which translates to over 21 million potential investors. 79% of investors believe that bitcoin has significant potential for growth. 75% of those investors also think that the scarcity of bitcoin adds to its valuation as it resembles a “digital gold”. Interestingly, investors who are interested in bitcoin were also found to consume more financial news than investors who do not like bitcoin as an investment. The report also investigated political affiliations, demographics, and income brackets of those interested or not interested in bitcoin. “Over the last ten years, Bitcoin has emerged from a nascent protocol into an established, legitimate asset with a strong performance record and significant diversification benefits. Already, our survey shows that roughly one third of individual investors are interested in Bitcoin. A broad cross-section of investors — across ages, genders, and a variety of income levels — are intrigued by Bitcoin’s strong return potential and they’re eager to learn more” said the report.
Read the full study from Grayscale Investments here.
Grant Thornton Audits Over $10 Billion in Client Assets
July 26 – In a recent press release, the major auditing firm Grant Thornton stated that it has audited over $10 billion USD in cryptoassets in first three months of 2019. Grant Thornton has also helped audit 40 different types of cryptoassets across 100 million wallet addresses. Grant Thornton uses “proprietary methods” to analyze its client holdings, which includes “proprietary forensic nodes” to analyze more complex cryptoassets such as Ethereum. “Cryptocurrency companies must contend with an auditing challenge that is at once simple and complex,” says Johnny Lee, a national practice leader for Forensic Technology Services at Grant Thornton. “First, can you prove that you own and control the assets you are claiming as yours? And, second, do those assets really exist – and can you prove as much?”
Read the full article from CoinDesk here.
3iQ Bitcoin Trust (Class A) : NAV as at July 26, 2019
Underlying cryptoasset prices sourced from Bloomberg.
3iQ Global Cryptoasset Fund (Class A): NAV as at July 26, 2019
Underlying cryptoasset prices sourced from Bloomberg.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.