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The9 Opens Account With Coinbase Custody To Support Mining Operations

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In an announcement earlier today, Chinese gaming company The9 Limited opted for Coinbase custody to be the custodian for the former’s digital assets, including Bitcoin. Coinbase Custody is a wholly-owned subsidiary of Coinbase Global Inc and provides an institutional-grade offline cold storage solution.

The9 Announces Coinbase Custody Account For Crypto Storage

According to The9, it will deposit a portion of the mined cryptocurrency to follow through with its risk mitigation and management policies. The company will keep its cryptos distributed with other cold storage wallets to ensure minimum vulnerability. The company is starting with 200 BTC that will be stored in its segregated cold storage account at Coinbase Custody. Further deposits will be made as The9 mines more cryptos.

The9 Moves To Bitcoin Mining, Purchases AvalonMiners

Back in April, The9 announced that it had agreed to purchase 2,000 units of bitcoin mining machines called AvalonMiners, with a total hash rate of 100 PH/S for about $6.72 million in stock. The company had to sign a legally binding Memorandum of Understanding (MOU) with an unrelated Bitcoin mining machine owner to purchase the mining machines by issuing Class A ordinary shares. According to the MOUs, The9 was to issue approximately 8,127,390 Class A ordinary shares (equivalent to 270,913 ADSs) to the sellers based on The9 share price of $24.81 before the MOU, with a lock-up period of 6 months.

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The company had also announced that it completed the signing of the definitive agreements for 12,246 units of Bitcoin mining machines with a total hash rate of approximately 288PH/S.

The9’S Crypto Pivot Continues With Purchase Of Crypto Mining Company

In June, The9 had also agreed to buy and control the Canada-based carbon-neutral crypto mining company, Montcrypto. They pledged C$7.6 million (US$6 million) to assume controlling shares of the company. The money will help fund a 20 MW electricity supply in Calgary, Canada, enough to power more than 6,000 S19j Antminers. With mining firms like The9 continuing to add more hash power, Bitcoin’s hashrate, which signifies the network’s total power consumption and mining output, has reached an all-time high. Companies like Montcrypto will play a role in devising an environment-friendly mining procedure.

The9’s purchase of the mining machines, gaining a controlling stake of a carbon-neutral crypto mining company, and its subsequent custody account with Coinbase Custody indicate that the company is pivoting into crypto mining.

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About The9 Limited

The9 Limited (The9) is an Internet company based in China listed on Nasdaq in 2004. The9 aims to become a diversified high-tech Internet company and has recently announced its move to cryptocurrency mining.

About Coinbase Custody

Launched in 2018, Coinbase Custody offers clients access to the secure, institutional-grade offline storage solution that Coinbase’s exchange business has used since 2012. Coinbase Custody is an independent, NYDFS-regulated entity built on Coinbase’s crypto-first DNA, offering the most sophisticated and reliable custody solution in the world

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Grayscale

Grayscale’s Top Executive Joins Robinhood as New Chief Compliance Officer

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Robinhood hires a new CCO, the chief compliance officer of Grayscale

Robinhood brokerage app has welcomed Benjamin Melnicki as a new Chief Compliance Officer, who is also the holder of the same position at Grayscale Investments. He joined Grayscale in early January this year.

At the moment, Robinhood’s cryptocurrency arm is facing scrutiny from financial regulators. Last year, Robinhood was a target of an investigation connected to anti money laundering and certain cybersecurity problems experiences by its crypto division.

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As reported by U.Today previously, later this year, the brokerage firm plans to roll out cryptocurrency wallets for its users. The trials of wallets will kick off in October and will allow customers to deposit and withdraw cryptocurrencies to addresses beyond Robinhood seamlessly.

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Crypto Exchange

Average Aussie crypto portfolio grew 258% in FY 20-21, survey reveals

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The average portfolio size on Australian cryptocurrency exchange BTC Markets has grown from $577.65 (795.5 Australian dollars) to $2,069.16 (2849.5 AUD) in the financial year 2021, signaling a 258.2% increase in portfolio holdings, according to exchange data compiled by Statista on a recent BTC Markets survey.

Data on the survey shows that the average portfolio size of female and male investors in fiscal 20-21 on BTC Markets was $1,924.30 (2,650 AUD) and $2,214.03 (3,049 AUD), respectively. However, in 2020, the average portfolio size of female Aussie investors exceeded male investors slightly. 

Transaction data on the exchange also showed a pattern of growing investment demand with aging. Considering the data provided by BTC Market on Australia’s average initial investment, investors above 65 years old have invested roughly $3,158.03, the highest ofall demographics.

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Following an incremental reduction across the various age groups, the youngest cryptocurrency traders, ranging from 18 to 24 years, tend to make comparatively small investments, standing at $792.96 on average. While older Australian crypto investors outweigh the new generation in initial investment, the younger crowd shows comparatively more activity in terms of daily trades.

Resonating the findings above, a September report from financial comparison website Finder shows that one in six Australians own cryptocurrencies, amounting to $8 billion in total investment. The report suggests that, like many other users in advanced industrialized countries, Australians were increasingly viewing cryptocurrencies as a new asset class. 

According to Cointelegraph’s report on the matter, Bitcoin (BTC) is the most popular cryptocurrency for the Australian crypto market held by 9% of investors. Other popular investments include Ether (ETH), Dogecoin (DOGE) and Bitcoin Cash (BCH). The report showed that, despite the growth in crypto investments, a significant barrier to entry for Australians is the difficulty in understanding crypto and the risks related to volatility.

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Switzerland to Impose Anti-Money Laundering Rules on Crypto Providers: Report

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FINMA requires all cryptocurrency providers to step up their game and monitor whether criminals use digital assets in illicit transactions.

The Swiss Financial Market Supervisory Authority – FINMA – would reportedly require local digital asset providers to take additional steps in preventing criminals from employing cryptocurrencies. The watchdog would also turn its sight towards bitcoin ATMs as it believes that drug dealers often use these machines.

FINMA Targets Criminals Operating with Crypto

According to a Finews report, Switzerland’s financial regulator – the Swiss Financial Market Supervisory Authority or simply FINMA – would closely supervise local crypto providers as an attempt to clamp down on money-laundering transactions.

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Swiss platforms and brokers dealing with digital assets would have to enhance their monitoring efforts and observe if bad actors employ cryptocurrencies. The Bern-based watchdog believes the initiative is “urgently necessary,” stressing that criminals use the asset class even to fund terrorism acts.

FINMA also turned its attention towards bitcoin automated teller machines. According to the regulator, drug dealers frequently use such ATMs as payment systems. It is worth noting that Switzerland is a relatively small nation, but its 130 Bitcoin automated teller machines place it in the sixth position among the countries with the most stations.

FINMA also passed an anti-money laundering provision according to which it lowered the threshold for unidentified crypto purchases from 5,000 Swiss Francs (CHF) to 1,000 CHF (around $1,080). Or, in other words, all financial providers dealing with digital assets have to collect data on anyone initiating transactions that exceed this amount.

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UBS: Crypto Regulations Could Spell Trouble

One of the leading banks in Switzerland – UBS – recently shared its views on the hot topic of digital asset regulations as it indicated that implementing certain rules might negatively impact the market.

Furthermore, the bank warned its customers that regulatory crackdowns can pop the “bubble-like” crypto markets. The Swiss bank also labeled the asset class as “speculative” alerting that it could be dangerous for professional investors:

“While we can’t rule out future price gains in cryptos, we see this as a speculative market that poses significant risks to professional investors.”

On another note, though, when the cryptocurrency market was booming at the beginning of May, UBS demonstrated a different attitude. Back then, it intended to enable its wealthy customers to receive digital asset exposure later in 2021 through third-party vehicles.

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