Blockchain Press Releases
MyntExchange: Why Securities Need to Be on the Blockchain
From the desk of Myntfund
REYKJAVÍK, Iceland., Aug. 8, 2023 /PRNewswire/ — One of the fundamental benefits of blockchain technology is its ability to record transactions transparently in a tamper-proof ledger.
This level of openness is unprecedented in a financial sector where obscurity, complicated acronyms, and manipulation benefit only the most powerful players. Specifically, blockchain technology can shine a light on unethical tactics like the use of dark pools-private exchanges where large trades happen, hidden from the public eye. In short, these pools allow hedge funds to influence prices undetected by dumping stocks en masse.
But only a few at the top of the securities hierarchy benefit from “taking a dip” into these pools.
In 2016, Barclays and Credit Suisse were fined more than $150 million by the SEC for operating dark pools.
In the words of the famous David Fincher film “The Social Network” about Facebook’s meteoric rise:
“In the grand scheme of things, that’s a speeding ticket.”
In other words, those fines mean nothing to these firms, and the SEC is nothing but a highway patrolman catching them in the act every once in a while.
To level the investing playing field, larger technological changes are necessary.
Blockchain’s transparency permits regulators to monitor markets continually instead of relying on sporadic inspections. While the SEC changed laws recently to inspect hedge funds unannounced, their oversight remains limited. Blockchain provides constant surveillance of all network activity and assets.
This visibility deters foul play and benefits retail investors.
The inefficiencies and obfuscation of legacy financial systems ultimately stem from high costs and outdated processes. For example, the systemic practice of “beautifying” balance sheets uses significant resources to polish company images before listing publicly.
There’s another word for this process:
Fraud.
But hey, we’re not the SEC-what do we know?
Then there’s the substantial administrative overhead of managing securities through decades-old infrastructure.
For example, simply listing a stock on an exchange requires tens of millions of dollars (depending on the number of stocks issued) and over a year of jumping through hoops. The costs and complexities of issuance and trading continue to plague processes long after the initial hurdles.
This bureaucratic bottleneck contradicts the swift pace of modern business.
Let’s face it: despite the many (valid) complaints about cryptocurrencies, blockchain technology could bring securities into the 21st century.
Blockchain technology allows assets like stocks to be issued and traded in a direct peer-to-peer manner, sans middlemen. Intermediaries and gatekeepers have traditionally cream-skimmed value while saddling processes with exorbitant costs.
Not so on-chain.
Blockchain also enables fractional ownership, letting retail investors participate in opportunities otherwise accessible only to the wealthy, such as real estate or investment funds. By opening doors to diverse investors, blockchain also promotes financial inclusion in capital markets.
For issuers and companies, listing securities on the blockchain dramatically cuts down costs compared to traditional routes. Startups in particular can benefit from this affordability and lower their barriers to entry. Ongoing costs are also slashed through process automation and reduced paperwork.
Beyond listing, blockchain tech also reduces the overhead of compliance, tracking ownership, and shareholder communications. These activities typically take tremendous manual effort and expense in legacy frameworks.
Blockchain’s ability to embed rules and automate workflows via smart contracts also smooths operations throughout the security’s lifecycle.
Specialized blockchain exchanges have already emerged to solve some of these endemic industry problems. For example, MyntExchange implements an innovative fee model where transactions incur a small charge in company stock instead of cash.
Moreover, it uses smart contract technology to protect users from so-called “pump and dumps” where company leaders dump all of their stock at the highest point, leaving their investors “holding the bag” of now-worthless company stocks. (Unfortunately, this happens a lot in the crypto world.)
In a blockchain-enabled investing environment like the one we’re describing-with a unique “pay in shares” fee model-holding shares aligns the exchange’s incentives with listed firms, as well as the investors, thus avoiding conflicts of interest.
Don’t forget:
In the traditional, legacy financial system, “conflict of interest” is a synonym for “business as usual.”
Let’s say we change that, eh?
Of course, while blockchain technology improves security through encryption and resilience, risks like hacking remain. Exchanges must utilize impenetrable infrastructure and smart contract code to thwart exploits.
Users also need to manage their private keys responsibly to prevent theft. Ultimately, like all things cybersecurity, blockchain technology is only as secure as its underlying implementation.
For securities in particular, blockchain must be layered with protections against fraud. MyntExchange, for example, achieves this by isolating its ecosystem to render stolen assets worthless. In other words, the exchange also uses its native currency MintPay to enable trading between assets. This liquidity pool acts as a protective moat by only allowing whitelisted tokens.
BROADER POTENTIAL OF BLOCKCHAIN
Beyond trading, blockchain technology opens doors the doors to all kinds of other benefits for retail investors, including:
- Embedded governance
- Secure voting
- Compliance
- Automated regulatory filings
In short, shareholders can participate in transparent decision-making while companies save costs and effort.
Overall, blockchain technology presents a monumental opportunity to fix foundational flaws in the securities industry plaguing both issuers and traders. By enhancing transparency, promoting fair access, reducing costs, and enabling innovation, blockchain can propel securities into the 21st century.
The next generation of securities rests on a foundation of openness, efficiency, and equal opportunity.
To get your asset on-chain, [email protected]
CONTACT:
The following files are available for download:
https://news.cision.com/myntfund-ehf-/i/why-myntexchange-is-born-out-of-necessity,c3204270 – Why MyntExchange is born out of necessity
View original content:https://www.prnewswire.co.uk/news-releases/myntexchange-why-securities-need-to-be-on-the-blockchain-301896289.html
Blockchain
Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them
The financial landscape is rapidly evolving, with the integration of blockchain technology and cryptocurrencies becoming more prominent. Among these, Ethereum ETFs (Exchange-Traded Funds) have emerged as a significant investment vehicle, offering exposure to the Ethereum blockchain’s native cryptocurrency, Ether (ETH), without requiring direct ownership. However, it’s crucial to understand that Ethereum ETFs are distinct from the blockchain itself and serve different purposes in the investment world.
Understanding Ethereum and ETFs
Ethereum: A decentralized platform that enables the creation and execution of smart contracts and decentralized applications (dApps). It operates using its cryptocurrency, Ether (ETH), which fuels the network.
ETF (Exchange-Traded Fund): A type of investment fund that holds a collection of assets and is traded on stock exchanges. ETFs can include various asset classes, such as stocks, commodities, or bonds.
Ethereum ETFs: The Intersection of Traditional Finance and Cryptocurrency
An Ethereum ETF provides a way for investors to gain exposure to the price movements of Ether without directly purchasing the cryptocurrency. This is achieved through an ETF structure, where the fund holds assets linked to the value of Ether, and investors can buy shares of the ETF on traditional stock exchanges.
Key Features of Ethereum ETFs:
- Indirect Exposure: Investors gain exposure to Ether’s price changes without needing to manage or store the cryptocurrency themselves.
- Regulatory Compliance: Unlike the relatively unregulated cryptocurrency market, ETFs operate under the oversight of financial regulators, offering a layer of investor protection.
- Accessibility: Ethereum ETFs are available through traditional brokerage platforms, making them accessible to a broader range of investors.
Why Invest in an Ethereum ETF?
- Diversification: Including an Ethereum ETF in a portfolio can provide exposure to the cryptocurrency market, potentially enhancing diversification beyond traditional assets.
- Convenience and Familiarity: ETFs are a familiar investment product, simplifying the process of investing in cryptocurrencies.
- Professional Management: ETF managers handle the investment decisions, including the buying and selling of assets, which can be advantageous for those less familiar with the cryptocurrency space.
- Regulatory Oversight: ETFs are subject to regulatory scrutiny, potentially offering more safety and transparency compared to direct cryptocurrency investments.
- Potential for Growth: As the cryptocurrency market grows, ETFs linked to assets like Ether may benefit from rising prices.
Key Differences Between Ethereum and Ethereum ETFs
While both are related to the Ethereum blockchain, Ethereum itself and Ethereum ETFs represent different forms of investment:
- Ethereum (ETH):
- Direct ownership of the cryptocurrency.
- Full exposure to Ethereum’s features, including staking and network participation.
- Traded on cryptocurrency exchanges.
- Highly volatile and largely unregulated.
- Ethereum ETF:
- Indirect exposure through shares representing Ether’s value.
- Traded on traditional stock exchanges under regulatory oversight.
- Offers a more stable and familiar investment structure.
- Typically lower volatility compared to direct cryptocurrency ownership.
Future Considerations for Ethereum ETFs
The approval and launch of Ethereum ETFs mark a significant milestone in bringing cryptocurrencies closer to mainstream finance. They offer a convenient and regulated means for investors to gain exposure to the growing digital assets market. However, they also come with limitations, such as not allowing direct participation in the Ethereum ecosystem’s innovations, like dApps and smart contracts.
As the market evolves, we may see more sophisticated financial products that better capture the full potential of the Ethereum ecosystem. For now, Ethereum ETFs provide a balanced option for those interested in cryptocurrency exposure within the framework of traditional finance.
In conclusion, while Ethereum ETFs offer a gateway into the world of digital assets, they should be viewed as complementary to, rather than a replacement for, direct investment in the underlying blockchain technologies. Investors should carefully consider their investment goals, risk tolerance, and the unique attributes of both Ethereum and Ethereum ETFs when making investment decisions.
Source: blockchainmagazine.net
The post Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them appeared first on HIPTHER Alerts.
Nexo, a leading institution in the digital assets industry, has reinforced its commitment to data security by renewing its SOC 2 Type 2 audit and attaining a new SOC 3 Type 2 assessment without any exceptions. This rigorous audit process, conducted by A-LIGN, a respected independent auditor specializing in security compliance, confirms Nexo’s adherence to stringent Trust Service Criteria for Security and Confidentiality.
Key Achievements and Certifications
- SOC 2 and SOC 3 Compliance:
- SOC 2 Type 2: This audit evaluates and reports on the effectiveness of an organization’s controls over data security, particularly focusing on the confidentiality, integrity, and availability of systems and data.
- SOC 3 Type 2: This public-facing report provides a summary of SOC 2 findings, offering assurance to customers and stakeholders about the robustness of Nexo’s data security practices.
- Additional Trust Service Criteria:
- Nexo expanded the scope of these audits to include Confidentiality, showcasing a deep commitment to protecting user data.
- Security Certifications:
- The company also adheres to the CCSS Level 3 Cryptocurrency Security Standard, and holds ISO 27001, ISO 27017, and ISO 27018 certifications, awarded by RINA. These certifications are benchmarks for security management and data privacy.
- CSA STAR Level 1 Certification:
- This certification demonstrates Nexo’s adherence to best practices in cloud security, further solidifying its position as a trusted partner in the digital assets sector.
Impact on Customers and Industry Standards
Nexo’s rigorous approach to data protection and compliance sets a high standard in the digital assets industry. By achieving these certifications, Nexo provides its over 7 million users across more than 200 jurisdictions with confidence in the security of their data. These achievements not only emphasize the company’s dedication to maintaining top-tier security standards but also highlight its proactive stance in fostering trust and transparency in digital asset management.
Nexo’s Broader Mission
As a premier institution for digital assets, Nexo offers a comprehensive suite of services, including advanced trading solutions, liquidity aggregation, and tax-efficient credit lines backed by digital assets. Since its inception, the company has processed over $130 billion, showcasing its significant impact and reliability in the global market.
In summary, Nexo’s successful completion of SOC 2 and SOC 3 audits, along with its comprehensive suite of certifications, underscores its commitment to the highest standards of data security and operational integrity. This dedication positions Nexo as a leader in the digital assets space, offering unparalleled security and peace of mind to its users.
Source: blockchainreporter.net
The post Nexo Reaffirms Commitment to Data Protection with SOC 3 and SOC 2 Compliance appeared first on HIPTHER Alerts.
Republican Senator Roger Marshall has withdrawn his support for the Digital Asset Anti-Money Laundering Act of 2023, a controversial bill he initially co-sponsored with Senator Elizabeth Warren and others. This bill, reintroduced in the Senate on July 27, 2023, aimed to bring the cryptocurrency industry into alignment with existing anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
Key Provisions of the Bill
The legislation proposed stringent regulations on digital asset providers, including unhosted wallet providers, miners, and validators, by classifying them as financial institutions under the Bank Secrecy Act (BSA). It mandated these entities to adhere to BSA compliance requirements, which include extensive reporting and monitoring responsibilities. Additionally, the bill called for the Financial Crimes Enforcement Network (FinCEN) to establish regulations for reporting significant foreign digital asset holdings and to create compliance measures to address risks associated with anonymity-enhancing technologies.
Senator Marshall’s Shift
Marshall’s withdrawal from the bill comes as a surprise, particularly given his earlier criticisms of cryptocurrencies, which he has described as a “threat to national security.” This includes concerns over stablecoins like Tether potentially facilitating illegal activities and circumventing U.S. sanctions. Despite his earlier stance, Marshall’s departure from the legislation suggests a reconsideration of the bill’s implications or an alignment with broader political and industry perspectives on cryptocurrency regulation. His office has not provided a comment on the reasons for his withdrawal.
Political and Industry Reactions
The bill had garnered significant bipartisan support, with 18 co-sponsors, reflecting a broader concern in Congress over regulating the rapidly growing cryptocurrency market. However, it has also faced criticism for potentially imposing impractical compliance burdens that could stifle innovation and push crypto activities offshore. Critics argue that the bill’s stringent requirements could inadvertently drive users toward unregulated platforms, thereby undermining its intent to enhance security and regulatory oversight.
Broader Context
The withdrawal comes at a time when cryptocurrency regulation is a highly contentious issue in U.S. politics. Former President Donald Trump has promised to relax crypto regulations if elected, contrasting with the current administration’s more stringent stance. Under President Joe Biden, the Securities and Exchange Commission (SEC) and other regulatory bodies, led by figures like Gary Gensler, have taken a more rigorous approach to regulating the sector, which has drawn criticism for being overly restrictive.
Senator Marshall’s decision to step back from the Digital Asset Anti-Money Laundering Act reflects the complex and evolving nature of cryptocurrency regulation in the U.S. While the bill seeks to bring greater oversight and security to the crypto industry, it also raises concerns about regulatory overreach and its potential negative impact on innovation and privacy. As the debate continues, the U.S. legislative and regulatory landscape for cryptocurrencies remains in flux, balancing the need for security with the desire to foster technological innovation.
Source: decrypt.co
The post Marshall Becomes First US Senator to Walk from Controversial Crypto Bill He Co-Sponsored appeared first on HIPTHER Alerts.
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