Coinbase Joins Square-led Crypto Patent Alliance As Founding Board Member

By RTTNews Staff Writer | Published: 12/8/2020 9:27 AM ET

U.S.-based cryptocurrency exchange Coinbase has joined the cryptocurrency patent alliance established by Twitter CEO Jack Dorsey headed financial services company Square, Inc. as a founding board member.

The Cryptocurrency Open Patent Alliance, or COPA, was established in September to enable open access to patents covering foundational technologies in the cryptocurrency sector. This was seen to be necessary for the crypto community to grow, freely innovate, and build new and better products.

Coinbase will join Square to carry COPA's mission forward, educate the community and drive membership, and establish and administer COPA's policies.

COPA seeks to democratize patents for everyone, empowering even small companies with tools and leverage to defend themselves. There is an invitation for all in the crypto community to join the alliance to address patent lockup concerns.

COPA is a non-profit community of like-minded people and companies formed to encourage the adoption and advancement of cryptocurrency technologies and to remove patents as a barrier to growth and innovation.

COPA employs a dual approach by asking its members to pledge never to use their crypto patents against anyone, except for defensive reasons, effectively making these patents freely available for all to use.

A shared patent library will be created by COPA where members pool all of their crypto patents together to form a collective shield of patents, allowing members to use each others' patents to deter and defend against patent aggressors and trolls.

Since establishing COPA, 18 companies have joined it and taken the pledge. Apart from Square and Coinbase, other members include SatoshiLabs, Kraken, Blockstream, Transparent Systems, Protocol Labs, Blockstack, Foundation Devices, ARK.io, Blockchain Commons, Carnes Validadas, Request Network, Horizontal Systems, VerifyChain, Cloudeya Ltd., Mercury Cash, and Bithyve.

As more members join and declare that they will not offensively assert their patents against others, the overall incidence and threat of patent litigation will come down.

Patents are generally used for offensive and misguided purposes and threaten the growth and adoption of emerging technologies such as cryptocurrencies. The "patent lockup" of foundational cryptocurrency technologies by a select few will also stifle innovation and deter mass-adoption.

For comments and feedback contact: editorial@rttnews.com

Markethive Advertisement

Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

Coinbase Pro To Disable Margin Trading Product Today

By RTTNews Staff Writer | Published: 11/25/2020 9:12 AM ET

U.S.-based cryptocurrency exchange Coinbase announced that its platform for professionals, known as Coinbase Pro, will disable its margin trading product on Wednesday, in response to new guidance from the Commodity Futures Trading Commission (CFTC).

Chief Legal Officer Paul Grewal wrote in a Coinbase blog post, "We believe clear, common sense regulations for margin lending products are needed to protect and provide peace of mind to U.S customers."

Grewal added that Coinbase will work closely with regulators to achieve this goal.

Starting 2 pm PT on November 25, customers currently using margin trading will not be able to place new margin trades. All open limit orders will be cancelled at this time for customers using credit.

All existing margin positions that were created before the cut-off time will not be affected and will run through until the expiration of the loan term (25th day from the date of origination) and the positions will be closed out by selling crypto for the value of the loan.

The Coinbase Pro margin trading product will be taken offline in December once all existing margin positions have expired.

The customers buying power will decrease once margin trading is disabled and they might not be able to execute any orders that were already created. The buying power is checked before the order is created.

In March, the CFTC had issued final interpretive guidance on actual delivery for digital assets. It stated that for digital assets bought using margin or leverage, the offeror and counterparty seller such as Coinbase, would not retain any interest in, legal right, or control over the digital asset at the expiration of 28 days from the date of the transaction, which is the deadline for physical delivery.

A customer securing possession and control of the entire quantity of the digital assets has the ability to use the entire quantity freely in commerce no later than 28 days from the date of the transaction and at all times thereafter.

The guidance clarifies the CFTC's views regarding the "actual delivery" exception to Section 2(c)(2)(D) of the Commodity Exchange Act (CEA) in the context of digital assets.

For comments and feedback contact: editorial@rttnews.com

Advertisement

Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

U.S. Law Firm Warns Coinbase Users Of Crypto-related Tax Evasion

By RTTNews Staff Writer | Published: 11/12/2020 9:13 AM ET

The Tax Law Offices of David W. Klasing warned investors of U.S.-based cryptocurrency exchange Coinbase that the U.S. Internal Revenue Service (IRS) is coming after them for failure to report virtual currency holdings. They have knowledge of increased IRS enforcement activity involving Coinbase.

This information is based on first-ever transparency report released by Coinbase in October, which contained some data that shows the IRS, and its Criminal Investigation Unit as being one of the top receivers of information from Coinbase, alongside the FBI and CIA.

The data reveals that the IRS is requesting information from Coinbase for speedily tallying the information with its own taxpayer data. It is looking for discrepancies about investors holdings on Coinbase that have not been reported by them on taxpayers' returns.

The tax law firm urges investors, who have failed to report holding Bitcoin or other virtual currencies on their past returns or filed an incomplete or misleading returns related to cryptocurrency holdings, to act immediately.

The firm warns that it will be too late to amend their returns or take advantage of a voluntary disclosure program once an audit or criminal tax investigation begins. However, amendments can be safely made only where small amounts of tax went unreported.

Many people who hold cryptocurrency still do not realize, or simply ignore, their tax and reporting requirements and can end up facing serious civil and criminal trouble later.

The IRS treats virtual currency as a commodity or property, and not as real currency, for federal tax purposes. Therefore, virtual currencies are also subject to capital gains laws. The current guidance for taxpayers is to file each and every transaction executed using a cryptocurrency.

The IRS has been sending out multiple compliance letters to investors of virtual currencies such as Bitcoin, whose tax return information did not match data reported to the IRS by third parties such as employers and banks.

In August, the IRS revealed in a draft Form 1040 released by the IRS for U.S. individuals to file their income tax return for 2020, where every American tax filer will be asked about their cryptocurrency transactions and investments.

After asking for personal details, the draft form asks, "At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"

This is the latest move by the tax regulator to show its seriousness on taxing cryptocurrency transactions and investments.

For comments and feedback contact: editorial@rttnews.com

Markethive Advertisement

Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

Coinbase hemorrhages employees following controversial culture stance

Coinbase CEO Brian Armstrong publishes further details about his company's changing landscape.

Image courtesy of CoinTelegraph

            OCT 08, 2020

After adjustments to company policies, popular U.S.-based crypto exchange Coinbase has seen backlash from employees who disagreed with the changes.

Coinbase received national attention for a recent change to its policies, which required employees to avoid political and social distractions, and instead focus on its core mission of building "an open financial system for the world". Multiple commentators, including Jack Dorsey of Twitter, found the new direction to be at odds with the cryptocurrency industry's values.

"We subsequently decided to make a generous exit package available to any employee who didn’t feel they could be on board with this direction," Coinbase CEO Brian Armstrong said in a blog post on Oct. 8.

Armstrong's post stated that 60 of the exchange's staffers intend to depart from the company, equivalent to approximately 5% of the firm's workforce. Additional workers have expressed interest in leaving as well, he said

The CEO said that despite concerns over the cultural shift disproportionately affecting the company's "under-represented minority population", people from such groups have not taken the severance package in disproportionate numbers.

In his clarifications to staff, Armstrong noted that employees should not have to pretend that politics don't exist, and that crypto is an inherently political industry. He also said that "Yes, we are ok being political about this one particular area because it relates to our mission."

In explaining how to know what is political, Armstrong declared that "We recognize it’s a blurry line, and ask that employees use good judgement. Our goal is not to look for violations, but rather to support employees in adapting to these clarified expectations."

UPDATE Oct. 8, 18:12 UTC: This article has been updated with additional details.

Markethive Advertisement

Original article posted on the CoinTelegraph.com site, by Benjamin Pirus.

Article re-posted on Markethive by Jeffrey Sloe

Coinbase To Acquire Institutional Crypto Brokerage Tagomi

By RTTNews Staff Writer | Published: 5/27/2020 11:37 AM ET

US-based cryptocurrency exchange Coinbase agreed to acquire New York-based institutional-grade crypto prime brokerage Tagomi as part of its strong institutional focus to cater to the ever increasing number of institutional investors venturing into cryptocurrencies such as Bitcoin.

The proposed acquisition comes at a time when the world’s most recognized hedge fund and macro investors are entering the crypto space and searching for the right infrastructure. This has driven tremendous growth in Coinbase Custody offering and increased volumes on Coinbase trading platforms.

The acquisition will bolster Coinbase’s offerings for advanced traders and the most sophisticated crypto investors.

Coinbase has already been rolling out offerings for these institutional clients, with the addition of advanced features such as margin trading for institutional investors and new tools to help investors segregate their trading strategies.

The crypto exchange said it has also recently expanded Coverage for larger clients by adding Brett Tejpaul as Head of Institutional Coverage to its leadership team.

According to Coinbase, the addition of Tagomi will round out its product suite for the fast-growing institutional trading market. It will enable integrated offerings such as custody, professional trading features, and prime brokerage services on one platform.

This will give the sophisticated institutional investors a seamless, powerful trading experience they have come to expect in equities and FX markets.

Since its launch in late 2018, Peter Thiel-backed Tagomi has become the platform of choice for many advanced traders, hedge funds, and family offices, including well-known names such as Paradigm, Pantera, Bitwise, Multicoin, and many more.

The company has also built out an executive team with a rare blend of traditional financial services and crypto experience, with the team bringing in experience from leading firms such as Goldman Sachs, Citadel, KCG, Tower Research, and USV.

The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close later this year.

For comments and feedback contact: editorial@rttnews.com

Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

Coinbase Becomes Visa Principal Member

By RTTNews Staff Writer | Published: 2/20/2020 9:37 AM ET

US-based cryptocurrency exchange Coinbase has become the first pure-play crypto company to be approved as a Visa principal member. This membership will enable Coinbase to issue Visa debit cards directly without depending on third-party issuers.

This move comes about ten months after Coinbase teamed up with Visa to launch the Coinbase Card, a Visa debit card that lets customers spend their crypto balances direct from their Coinbase account. It is currently available in the U.K. and some other European countries such as Italy, Spain and France.

The cards were initially being issued by a third party, Paysafe Financial Services Limited, which is authorized by the Financial Conduct Authority. Coinbase is the first debit card to link directly with a major cryptocurrency exchange in the UK and EU.

The Coinbase card, which can be used globally, is currently allowed only to be used in countries where the card is supported. It is available to customers in 29 markets who are able to spend 10 cryptocurrencies in millions of merchant locations.

The card can be used as easily as a debit card is used to spend money in their bank account.

The cryptocurrencies in your Coinbase account can be spent using the card for funding holidays abroad to trips on public transport, making their crypto work for them in everyday situations. The Card supports all crypto assets that are available to buy and sell on the Coinbase platform.

Coinbase said more than 50 percent of customers who have a Coinbase Card use it regularly, with its maximum usage in the UK, followed closely by Italy, Spain, and France.

When customers use their Coinbase Card, crypto will be instantly converted to fiat currency, such as GBP, which is then used to complete the purchase.

The company has also launched the Coinbase Card app to help customers chose their particular crypto wallets to fund their Coinbase Card spending.

In mid-March last year, banking startup 2gether had announced a similar launch of a prepaid Visa debit card that allows users to spend cryptocurrencies in any of the 19 eurozone countries.

For comments and feedback contact: editorial@rttnews.com

Markethive Advertisement

Article written by an RTT News Staff Writer, and posted on the RTT News.com website.

Article reposted on Markethive by Jeffrey Sloe

You Can Now Buy Coffee With XRP: Coinbase Card Expands

If you’re up for it, a top cryptocurrency company has expanded its debit card solution to support XRP, allowing consumers to spend the third-largest digital asset in thousands of physical and online stores, like in a coffee shop.

Meet Coinbase Card

Crypto debit cards have long had a spotty reputation in this embryonic industry. Companies that have tried their hand at launching such products have, by and large, failed miserably, falling victim to either trigger-happy regulations or the, say, the oppressive power of the entities residing over traditional payment rails.

Though, earlier this year, Coinbase, a top crypto exchange, revealed the fittingly-named Coinbase Card, a Visa debit card that gives users a chance to spend their cryptocurrencies “as effortlessly as the money in their bank.” At first, the launch was limited: only users in the U.K. could get the card, and they could only spend Bitcoin, Ethereum, Litecoin, and a few other top cryptocurrencies to fund their payments or withdrawals from ATMs. This is changing, however.

Revealed on Twitter, Coinbase Card can now be used with Basic Attention Token, Stellar Lumens, Ripple’s XRP, 0x/ZRX and Augur’s REP. XRP and the other new coins supported join BTC, ETH, BCH, and LTC.

In a separate tweet, this branch of the industry behemoth revealed that it has made its cryptocurrency-enabled debit card available in Bulgaria, Croatia, Denmark, Hungary, Iceland, Liechtenstein, Norway, Poland, Romania, and Sweden.

For more information about how exactly eligible users can spend XRP in stores, here’s a quote from Coinbase U.K. CEO Zeeshan Feroz:

“Customers can use their card in millions of locations around the world, making payments through contactless, Chip and PIN, as well as cash withdrawals from ATMs. When customers use their Coinbase Card, we instantly convert crypto to fiat currency, such as GBP, which is used to complete the purchase.”

It isn’t clear if this will have a tangible effect on the price of XRP. Though, it can be assumed that it may slightly depress prices over time; after all, users selling their XRP to purchase real-life goods will create a supply-demand imbalance, pushing prices lower with time. XRP may need to counteract this new selling pressure by increasing demand via projects announced at an event like Swell.

Markethive Advertisement

Original article posted on the EthereumWorldNews.com site, by Nick Chong.

Article re-posted on Markethive by Jeffrey Sloe

Coinbase Partners With Stellar Foundation to Give Away One Billion XLM

Coinbase has announced a partnership with the Stellar Foundation that will give away 1 billion XLM, worth $100 million, to users willing to take the time to learn about the currency.

Eligible Coinbase customers in the US will receive an email invitation over the next few days to earn up to $10 of XLM by viewing Stellar tutorials and answering quiz questions. By sharing their unique referral link, customers will also be able to earn up to $40 more of XLM by inviting four eligible friends to complete the lessons.

Under Coinbase’s “Coinbase Earn” program, users of the popular U.S.-based exchange will be able to participate in online modules that will simultaneously teach them about Stellar and blockchain–all the while earning XLM for their efforts. Users can earn $10 worth of XLM for watching a series of videos and lectures, and make an additional $40 through a referral system. According to the official update, Coinbase reports that 100% of the XLM being distributed will go to users, constituting one of the largest coin giveaways for the purpose of increased education. The funds will come directly from the Stellar Development Foundation (SDF), which is the non profit organization that helps develop the Stellar protocol.

Coinbase Earn is working with the Stellar Foundation to distribute one billion Stellar Lumens (XLM). 100% of the funds are going directly to Coinbase users to teach them how to use the Stellar protocol.

Coinbase Earn is working with the Stellar Foundation to distribute one billion Stellar Lumens (XLM). 100% of the funds are going directly to Coinbase users to teach them how to use the Stellar protocol. You can read more about the campaign here: http://ow.ly/hS9s50ocAXi

Despite the flack Coinbase received over the XRP listing in February, where some community members–including Weiss Ratings–questioned suspicious market behavior in the hours leading up to XRP being announced, Stellar’s addition to the exchange has gone more smoothly. Coinbase, through the most recent collaboration with the Stellar Foundation, continues its position as being a source of information and education for cryptocurrency, beyond just providing an exchange for market speculation.

Included in the official blog post detailing the giveaway is information about Stellar and the what the XLM currency is attempting to accomplish. The Coinbase blog reports that Stellar is a platform which aims to connect banks, payment systems and people in a way that is more efficient than the current practices.

The post continues,

Today’s global financial infrastructure has a communication problem. There are hundreds of different currencies and payment systems. Each one of these payment systems speaks a different language, so they have a hard time understanding each other. This can make moving money around the world slow and expensive.

Stellar is a protocol designed to solve this problem.

Coinbase highlights the decentralized nature of Stellar, a feature that they have regularly pointed to as criteria for new currencies being listed on their exchange. In particular, Coinbase points out that XLM is attempting to connect people, via money, in the same way that the internet allows the free flow of information.

Since the addition of XLM to Coinbase earlier in the month, the currency has managed to grow above the $0.10 price range. Already the currency is up 4 percent, as of writing, as most of the crypto markets see green.

Title image credit: The Coinbase Blog

Original article written by Michael Lavere and posted on the EthereumWorldNews.com site.

Article posted on Markethive by Jeffrey Sloe