Market Analysis Report (14 Sep 2018)

NCB, One of the Largest Financial Institutions in the Middle East, Joins RippleNet

Yesterday, the real-time gross settlement system, currency exchange and remittance network, Ripple, announced on its website that one of the largest financial institutions in the middle east, the National Commercial Bank (NCB) of the Kingdom Saudi Arabia, had become its latest enterprise customer, and joined RippleNet. Dilip Rao, the Global Head of Infrastructure Innovation at Ripple has stated before: 

“Central banks around the world are leaning into blockchain technology in recognition of how it can transform cross-border payments, resulting in lower barriers to trade and commerce for both corporates and consumers.”

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BitGo Becomes a Qualified Custodian by Obtaining a South Dakota Trust Charter

Yesterday, one of the leaders in the crypto custody space, BitGo, announced that it had become a qualified custodian by obtaining a South Dakota trust charter. BitGo, has registered as a public trust company, called BitGo Trust Company, in the state of South Dakota, regulated by that state’s Division of Banking, thereby effectively creating a “bank” under section 202(a)(2) of the Advisers Act, which means that BitGo Trust Company is a “qualified custodian”. BitGo claims that BitGo Trust Company is “the first qualified custodian purpose-built for storing digital assets.” Mike Belshe, co-founder and CEO of BitGo stated:

“Custody has been the missing piece of cryptocurrency market infrastructure and this gap has kept institutional investors out of the market. Traditional custodians don’t have experience handling cryptocurrency. Exchanges that double as custodians present a conflict of interest and raise regulatory concerns. BitGo Trust Company is a qualified custodian, and therefore the only custody offering that delivers the highest levels of both security and regulatory compliance.”

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Current Legal System Can’t Recognize Bitcoin, India’s Central Bank Tells Supreme Court

Last Wednesday, The Reserve Bank on India (RBI) filed an affidavit in the Supreme Court to clarify its stand on cryptocurrencies like Bitcoin. The central bank reserved its views on the legality of cryptocurrencies in India, telling the apex court that the constitution has not defined any legal system for virtual currencies. Citing the provisions of The Coinage Act and The RBI Act, the affidavit explained that the existing legal frameworks neither recognize Bitcoin as currency. Hence, they are not a valid payment system. RBI in its one of its previous statements has supported cryptocurrency regulations in India. But there will be a need for a concrete definition to begin the regulatory process. Currently, Bitcoin is undefinable due to its multifaceted characteristics.

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