General Crypto Currency world

Miket12

Warriors 1st Grader
Apr 20, 2012
10,580

Bitcoin plunges after China declares all cryptocurrency transactions illegal​


The price of bitcoin has plunged sharply after a crackdown by China.

China's central bank on Friday said all financial transactions involving cryptocurrencies were illegal.

That sounded the death knell for the digital trade in China after a crackdown on the volatile currencies.

Bitcoin's price fell by as much as 10 per cent to US$40,983 in just three hours. It has since stabilised – at 9am today it was priced at $43,070.24.

Ethereum plunged by 12 per cent to $2747.34. It has also since recovered slightly.

The total market capitalisation of cryptos dropped from US$2 trillion to US$1.8 trillion or about 10 per cent.

"Virtual currency-related business activities are illegal financial activities," the People's Bank of China said in an online statement Friday.

The central bank said offenders would be "investigated for criminal liability in accordance with the law."

The notice bans all related financial activities involving cryptocurrencies, such as trading crypto, selling tokens, transactions involving virtual currency derivatives and "illegal fundraising".

The central bank said that in recent years trading of bitcoin and other virtual currencies had become "widespread, disrupting economic and financial order, giving rise to money laundering, illegal fundraising, fraud, pyramid schemes and other illegal and criminal activities."

This was "seriously endangering the safety of people's assets," the central bank said.

While crypto creation and trading have been illegal in China since 2019, further crackdowns this year by Beijing warned banks to halt related transactions and closed much of the country's vast network of bitcoin miners.

Friday's statement by the central bank sent the strongest yet signal that China is closed to crypto.

The price of bitcoin has been on a rollercoaster ride this year amid the crackdowns from China. It also plunged when Tesla abruptly suspended the use of bitcoin for vehicle purchases, citing fossil fuel and climate change concerns.

Beijing looking for control​

Bitcoin, the world's largest digital currency, and other cryptos cannot be traced by a country's central bank, making them difficult to regulate.

Analysts say China fears the proliferation of illicit investments and fundraising from cryptocurrency in the world's second-biggest economy, which also has strict rules around the outflow of capital.

The crypto crackdown also opens the gates for China to introduce its own digital currency, already in the pipeline, allowing the central government to monitor transactions.

In June, Chinese officials said more than 1000 people had been arrested for using the profits from crime to buy cryptocurrencies.

Several key Chinese provinces have banned the operation of cryptocurrency mines since the start of this year, with one region accounting for eight per cent of the computing power needed to run the global blockchain — a set of online ledgers to record bitcoin transactions.

Bitcoin values tumbled in May on the back of a warning by Beijing to investors against speculative trading in cryptocurrencies.

"China's ban on all cryptocurrency trading activity will have some short-term impact on currency valuation, but long-term implications are likely to be muted," said Ganesh Viswanath Natraj, Assistant Professor of Finance at Warwick Business School.

"This ban will result in the migration of crypto investment opportunities to other hubs in Asia, such as Singapore's launch of the DBS digital currency exchange earlier this month," he added.

 
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Miket12

Warriors 1st Grader
Apr 20, 2012
10,580
New Zealand’s first managed fund for Crypto is here. If you want to get into crypto, this may be something to look into. If you already have crypto, is this something you would invest into?


 

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Christchurch Born n bred white bait fed.
Contributor
May 19, 2012
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Brisbane Queensland Australia
New Zealand’s first managed fund for Crypto is here. If you want to get into crypto, this may be something to look into. If you already have crypto, is this something you would invest into?


Can anyone please post these as they are behind a pay wall
 

Miket12

Warriors 1st Grader
Apr 20, 2012
10,580
Can anyone please post these as they are behind a pay wall
NZ's first bitcoin-only investment fund launched
For the first time in New Zealand, retail investors will be able to invest in bitcoin without owning the digital tokens themselves.

While some investment funds have previously had portions of bitcoin, the Vault International Bitcoin Fund is the first to have its entire allocation invested in the asset class.

Bitcoins are a line of code that function as a digital asset. Each bitcoin is unique, and relies on peer-to-peer software to maintain its integrity.

The integrity of the coin is maintained by the ‘blockchain’, an interlinked series of networks which constantly verify the validity of the bitcoins.

The appeal of these cryptocurrencies for many is they offer a store of value that is not linked to any centralised bank, or government.

But because of this, bitcoin can be controversial. Last week the Chinese government announced a ban on the trading of all cryptocurrencies.

Janine Grainger, co-founder of Vault Digital Funds said the move from China had little impact on bitcoin, and actually pointed to its stability as an asset class.

“To have a large component of the operations of the bitcoin network to shut down overnight and for that to not have any impact on the reliability, or the speed of the blockchain, was a real testament to the robustness of these decentralised economies,” Grainger said.

Grainger said the fund was created to be used as part of a diversified portfolio.

“We see this as a great way for people to get that exposure without having to do all the more complicated and technical parts of it themselves,” Grainger said.

Vinnie Gardiner, chief executive and co-founder of Vault Digital Funds said investors should be under no illusions as to the risks associated with cryptocurrencies.

“Bitcoin isn’t appropriate for everyone. This is something that people should not be taking lightly,” Gardiner said.

The element of caution is echoed by Anthony Edmonds, managing director of Invest Now, which will be hosting the fund on its platform.

“This is one of those funds where we are going to be on the front foot and tell people, look, ‘this is risky’. Bitcoin is a really volatile asset class, there is really a need for caution when people are investing into it,” Edmonds said.

Grainger said the fund was designed differently to the way many retail investors currently think about bitcoin.

It was not designed for people to attempt to time the market, but was instead recommended for those who had an investment plan of more than a decade, Grainger said.

Financial adviser Darcy Ungaro said that the fund was a way to bridge a gap between the complex nature of bitcoin and investors who wanted exposure to the asset.

“Over the past three years I have been having conversations where people say bitcoin is a scam, or a fad, something to be avoided. But recently I have been helping more and more people allocate a portion of their portfolio towards it,” Ungaro said.

The dangerous thing about bitcoin was the mistakes investors made with their own two hands, Ungaro said.

“The biggest risk is how investors hold it and store it, what if you lose access to your wallet-keys? In a lot of ways accessing bitcoin through a fund like this is actually safer because it takes care of all the custody issues,” Ungaro said.

Alex Sims, associate professor in commercial law at the University of Auckland, and member of Blockchain NZ said the fund was a sign that cryptocurrencies were growing more and more mainstream.

“The genie is out of the bottle. If you have a New Zealand bank account you can buy cryptocurrency. So it is too late to say ‘no you can’t do this’,” Sims said.

Sims, like Ungaro said bitcoin was here to stay, and the biggest risk to investors was losing their wallet.

She likened holding on to bitcoin in a physical wallet to ‘hiding money under your mattress’.

“Bitcoin is high risk, but if you do want exposure then you may as well do it safely. If you are going through a heavily regulated fund that may be a better option for some people,” Sims said.

 

Miket12

Warriors 1st Grader
Apr 20, 2012
10,580

New bitcoin investment fund tagged with highest risk warning​


A new fund which will offer Kiwi investors Bitcoin exposure without having to buy digital currencies directly comes with a risk-rating at the top of the scale and a warning that it is a highly speculative investment.

The Vault International Bitcoin Fund has been issued by Wellington fund manager Implemented Investment Solutions and will be managed by Vault Digital Funds - a new company majority owned by Janine Grainger, the founder of crypto exchange Easy Crypto. Its other shareholder is Vinnie Gardiner who is chief executive of the company.

Investors can buy units in the fund which pools the money with other investors and invests it into listed bitcoin funds and exchange-traded Bitcoin funds.

Gardiner said he wanted to set up a fund that made it easier for people to invest in digital currencies after finding it was not always that easy himself as an investor.

"I've been in it for a while so I have seen the highs and the lows and experienced various things. I had assets in Cryptopia when that got hacked.

"My brother lost his phone with all his digital wallets passwords down a foundation hole just last week, so these are real life examples. What I also see is people are a bit mystified as to what is going on and how do I download a digital wallet and what are the risks of being on an exchange?"

Gardiner said he wanted the new fund to be simple, smart and trustworthy.

"You are buying units in a fund not Bitcoin directly."

The fund is structured as a PIE which means investors' tax rate for income earned from the fund is capped at 28 per cent.

However because the fund will invest in foreign listed funds and ETFs it will be taxed under the fair dividend rate model which means investors pay tax on an annual 5 per cent "deemed" dividend income at their Prescribed Investor Rate.

Gardiner said the fund was a registered managed investment scheme while the underlying funds were listed on regulated exchanges. Bitcoin itself is unregulated.

"People are far more conversant with that style of investing rather than downloading a digital wallet or an exchange - all of which has risk."

Investors will need a minimum of $1000 to invest but it will also be on retail platform Investnow which likely bring the minimum down to a $250 lump sum or $50 regular payment.

Easy Crypto will also launch the fund on its site in the future. The fund comes with a hefty annual fee of 2.5 per cent of funds under management.

Gardiner said the investment would be "highly volatile" given the volatile nature of Bitcoin itself.

"We will be closely tracking the price of Bitcoin. It will be incredibly volatile. People need to go in knowing it is incredibly volatile."


The fund will be able to invest in the Grayscale Bitcoin Trust, CI Galaxy Bitcoin ETF, 3IQ Coinshares Bitcoin ETF and Purpose Bitcoin ETF.

Gardiner said the ETFs were mainly listed on the Toronto stock exchange in Canada.

Gardiner said Grayscale Bitcoin Trust was on the fund's radar as well although he admitted there were issues with Grayscale itself.

Grayscale calls itself the world's largest digital-currency asset manager. According to the Wall Street Journal it launched a fund two months ago that invests in tokens tied to crypto-trading platforms including Uniswap and SushiSwap.

US regulator the Securities and Exchange Commission is investigating the startup behind Uniswap.

Earlier this year Grayscale dissolved a fund created to invest in the cryptocurrency XRP and returned cash to investors after the SEC sued the company behind that digital asset.

Gardiner said there were 11 Bitcoin ETFs before the SEC at the moment.

"It is still a relatively small industry. It is certainly on the radar of regulators and a lot of the large investment firms are seeking to get in."

The Vault fund has around $1million invested in it so far, largely seeded by Grainger and Gardiner.

Gardiner believes it will attract investors who are curious about Bitcoin but haven't taken the plunge yet.

"There is no exact demographic that we are looking at. Part of the reasoning for the minimum is to make sure people go in and deep dive and do their research before come to the fund."

He said investors should get financial advice before taking the leap.

 

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