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Everybody Acknowledges Bitcoin is a Commodity, even the Regulators – Ex-NYSE President

By
Paul Ugbede Godwin
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0

Bitcoin is more than just a cryptocurrency. It is a digital asset that has a unique value proposition in the global market. Bitcoin is not subject to the whims of any central authority, nor is it influenced by the political and economic conditions of any country. Bitcoin is governed by a transparent and decentralized network of nodes that validate transactions and secure the network. Bitcoin is also scarce, with a fixed supply of 21 million coins that will ever be created.

These features make Bitcoin a commodity, not a currency. A commodity is a basic good that can be bought and sold, such as gold, oil, or wheat. A commodity has intrinsic value, meaning that it has some utility or benefit to its users. A commodity also has market value, meaning that it is subject to the forces of supply and demand. Bitcoin meets all these criteria, and more.

First, let’s define what a commodity and a security asset are. According to Investopedia, a commodity is “a basic good used in commerce that is interchangeable with other goods of the same type”. Examples of commodities are gold, oil, wheat, coffee, etc. A security asset is “a financial instrument that holds some type of monetary value”. Examples of securities are stocks, bonds, options, futures, etc.

The main difference between a commodity and a security asset is that a commodity has intrinsic value, meaning that it can be used for its own sake or for other purposes, while a security asset derives its value from the performance or promise of an underlying entity, such as a company, a government or a contract.

The classification of Bitcoin as a commodity and not a security asset has important implications for investors, regulators and the future of the cryptocurrency industry. Some of these implications are:

Investors can benefit from the lower regulatory burden and higher liquidity of commodities compared to securities. Investors do not need to comply with complex registration, disclosure or reporting requirements that apply to securities. Investors can also access a wider range of platforms and markets to trade bitcoins across borders and jurisdictions.

Regulators can apply existing frameworks and rules for commodities to Bitcoin, rather than creating new ones that may stifle innovation or create uncertainty. Regulators can focus on enforcing anti-money laundering, consumer protection and tax laws that apply to commodities, rather than imposing additional restrictions or obligations on Bitcoin users or developers.

The future of the cryptocurrency industry can be more diverse and competitive, as Bitcoin can coexist with other types of digital assets that may have different characteristics and use cases. Bitcoin can serve as a base layer for innovation and experimentation, while other digital assets can offer different features or functions that may appeal to different users or markets.

Bitcoin is a commodity and not a security asset because it has intrinsic value, does not represent any claim on an underlying entity, is not issued or controlled by any central authority or intermediary, and is fungible and interchangeable with other bitcoins of the same type. This classification has positive implications for investors, regulators and the future of the cryptocurrency industry.

Bitcoin is not only recognized as a commodity by its users, but also by the regulators. In 2015, the Commodity Futures Trading Commission (CFTC) declared that Bitcoin and other virtual currencies are commodities under the Commodity Exchange Act. This means that Bitcoin is subject to the same rules and regulations as other commodities, such as registration, reporting, and anti-fraud measures. The CFTC also has the authority to oversee the trading of Bitcoin futures and options on regulated exchanges.

This regulatory clarity is a positive development for Bitcoin and its investors. It provides legal certainty and legitimacy for the industry, and it fosters innovation and competition in the market. It also protects consumers and investors from fraud and manipulation, and it enhances the security and stability of the network.

As the former president of the New York Stock Exchange (NYSE), I have witnessed firsthand the evolution and growth of Bitcoin as a commodity. I have seen how Bitcoin has attracted institutional investors, hedge funds, and corporations, who see it as a store of value, a hedge against inflation, and a diversifier of their portfolios. I have also seen how Bitcoin has enabled new business models, such as peer-to-peer lending, remittances, and micropayments, that empower individuals and communities around the world.

Bitcoin is a commodity that has revolutionized the world of finance and technology. It is a commodity that has proven its resilience and adaptability in the face of challenges and opportunities. It is a commodity that has earned its place in the global market. And it is a commodity that everyone should acknowledge and embrace.

SEC to Serve lawsuits on Pulsechain, PulseX and Hex Chain Founder

By
Paul Ugbede Godwin
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0

The US Securities and Exchange Commission (SEC) has announced that it will file a lawsuit against Richard Heart, the founder of Pulsechain, PulseX and Hex Chain, for allegedly violating federal securities laws. The SEC claims that Heart and his associates raised over $1 billion from investors through unregistered and fraudulent token sales of Pulse (PULSE), PulseX (PULSEX) and Hex (HEX).

According to the SEC’s complaint, Heart and his co-defendants marketed Pulsechain as a “fork” of the Ethereum blockchain that would allow users to “sacrifice” their existing crypto assets in exchange for PULSE tokens. The SEC alleges that this was a deceptive scheme to lure investors into buying worthless tokens that had no utility or value. The SEC also accuses Heart of creating a fake market for PULSE by manipulating the supply and demand of the token through a complex system of bonuses, penalties and referrals.

SEC ask Finnish authority to sue Pulsechain, PulseX and Hex Chain founder.

The US Securities and Exchange Commission (SEC) has requested the Finnish Financial Supervisory Authority (FIN-FSA) to take legal action against the founder of Pulsechain, PulseX and Hex Chain, Richard Heart. The SEC alleges that Heart has violated US securities laws by offering unregistered tokens to US investors through his projects.

Pulsechain is a fork of Ethereum that claims to offer faster and cheaper transactions, as well as a deflationary mechanism that burns tokens with every transaction. PulseX is a decentralized exchange (DEX) that runs on Pulsechain and allows users to swap tokens and provide liquidity. Hex Chain is a token that promises high interest rates to holders who stake their tokens for a fixed period of time.

The SEC claims that Heart has raised over $1 billion from US investors through his projects, without registering them as securities or providing adequate disclosures about the risks and rewards involved. The SEC also accuses Heart of manipulating the prices of his tokens by creating artificial scarcity and demand, as well as engaging in insider trading and market abuse.

The SEC has asked the FIN-FSA to sue Heart in Finland, where he is believed to reside, and to freeze his assets and accounts. The SEC also seeks to recover the funds raised from US investors and to impose civil penalties and injunctions on Heart and his associates.

Heart has denied the allegations and said that his projects are legitimate and compliant with the laws of the jurisdictions where they operate. He also said that he has not received any formal notice from the SEC or the FIN-FSA, and that he is ready to defend himself in court if necessary.

The SEC further alleges that Heart launched PulseX, a decentralized exchange (DEX) platform, as a way to generate more demand for PULSE and to enrich himself and his associates. The SEC claims that PulseX was not a functional DEX, but a sham that used fake liquidity and volume to entice investors.

The SEC also alleges that Heart promoted Hex Chain, another token project, as a “certificate of deposit” on the blockchain that promised high returns to investors. The SEC asserts that Hex Chain was nothing more than a Ponzi scheme that paid old investors with new investors’ money.

The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains, civil penalties, and bars against Heart and his co-defendants from participating in any future digital asset offerings or securities transactions. The SEC also warns investors to be wary of any claims or promises made by Heart or his associates regarding Pulsechain, PulseX or Hex Chain.

The SEC’s lawsuit is the latest in a series of actions taken by the regulator against crypto projects that it deems to be violating securities laws. The SEC has previously sued Ripple Labs, Block.one, Telegram Group, Kik Interactive and others for conducting unregistered token sales. The SEC has also issued several guidance documents and statements to clarify its stance on crypto regulation and enforcement.

Future of crypto exchanges remains uncertain, as they have to balance between compliance and competitiveness

Crypto exchanges are facing a dilemma: how to comply with the increasing regulatory demands without losing their competitive edge in a dynamic and risky industry. We will explore some of the challenges and opportunities that crypto exchanges have to deal with in the future, and how they can adapt to the changing landscape of the crypto market.

One of the main challenges that crypto exchanges face is the lack of clarity and consistency in the regulatory framework across different jurisdictions. Crypto exchanges have to comply with various rules and requirements depending on where they operate, such as anti-money laundering (AML), know-your-customer (KYC), consumer protection, taxation, and licensing.

These regulations can be costly and time-consuming to implement and can also limit the scope and reach of the crypto exchanges’ services. For example, some countries may ban or restrict certain types of crypto assets, such as privacy coins or stablecoins, or impose strict limits on the amount and frequency of transactions.

Another challenge that crypto exchanges face is the increasing competition from both traditional and new players in the market. Crypto exchanges have to compete with established financial institutions, such as banks and payment platforms, that are entering the crypto space with their own offerings and advantages, such as trust, reputation, security, and convenience.

Crypto exchanges also have to compete with emerging decentralized platforms, such as decentralized exchanges (DEXs) and decentralized finance (DeFi) protocols, that offer more innovation, flexibility, and autonomy to the users, but also pose more risks and uncertainties.

To overcome these challenges and thrive in the future, crypto exchanges have to find a balance between compliance and competitiveness. They have to comply with the existing and upcoming regulations in a proactive and transparent manner, while also advocating for more clarity and consistency in the regulatory environment. They have to offer more value-added services and features to their customers, such as custody, lending, staking, trading tools, education, and community engagement.

They have to leverage the latest technologies and innovations, such as blockchain, artificial intelligence, cloud computing, and biometrics, to enhance their security, efficiency, scalability, and user experience. They have to collaborate with other stakeholders in the crypto ecosystem, such as regulators, developers, investors, media, and academia, to foster more trust, awareness, adoption, and innovation in the industry.

The future of crypto exchanges is uncertain, but also exciting. Crypto exchanges have to balance between compliance and competitiveness in a fast-changing and volatile market. By doing so, they can not only survive but also thrive in the crypto space.

Alibaba’s Jack Ma Ventures into Food Industry with “Ma’s Kitchen” Amid Agricultural Focus

By
Samuel Nwite
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0

Jack Ma, co-founder of Alibaba Group Holding, has embarked on a new entrepreneurial journey by venturing into the pre-packaged food market, marking a shift towards the agricultural sector following his retirement.

SCMP reports that the enterprise, named “Hangzhou Ma’s Kitchen Food” in English, was officially incorporated in Hangzhou, Ma’s hometown and the heartland of his business empire, as per records from the National Enterprise Credit Information Publicity System.

The company, with a registered capital of 10 million yuan (approximately $1.4 million), is wholly owned by Hangzhou Dajingtou No 22 Arts and Culture, an entity associated with Ma’s investment dealings in China. Notably, Ma holds a 99.9% stake in this venture.

Ma’s Kitchen Food is positioned to engage in the sale of pre-packaged food items, along with the primary processing and retail of edible agricultural products, according to its stated business scope.

Jason Pau, the executive director of international programs at the Jack Ma Foundation, has been listed as the company’s executive director and general manager. Additionally, Xu Shi, a former executive at Ma’s foundation, assumes the role of supervisor for the newly established entity, based on information from corporate registry data provider Tianyancha.

The intent behind Ma’s latest venture is seen as a strategic move into the thriving ready-meals industry, potentially capitalizing on the surge in demand for such products driven by lifestyle changes amid the pandemic. However, clarification from a former assistant to Ma suggested that the references to pre-packaged food do not signify pre-cooked meals.

Industry reports project the domestic ready-meals market to reach approximately 510 billion yuan this year, with anticipated growth potential doubling over the next three years, according to data from iiMedia Research.

Following his departure as Alibaba chairman in 2019, Ma has redirected his focus towards agriculture and education. His recent endeavors have included visits to agricultural facilities worldwide, showcasing his keen interest in this evolving sector.

Ma’s Kitchen Food represents one of several new ventures in agriculture undertaken by the entrepreneur. In July, Ma was linked to a fishery and agricultural startup, 1.8 Metres Marine Technology, with a registered capital of 110 million yuan, emphasizing aquatic products, feeding, and food processing.

Despite stepping down from Alibaba, Ma’s influence over the company remains significant. Recent corporate restructuring efforts have aimed to divide the conglomerate into six independent business units. Yet, the company faced challenges when plans to publicly list Alibaba Cloud were halted, coinciding with Ma’s family trust announcing intentions to sell $870 million in Alibaba shares.

Alibaba responded to speculations about Ma’s confidence in the company and potential layoffs, citing Ma’s intent to utilize the funds to support agricultural technology and philanthropic initiatives. Allegations were refuted by both the company and Ma’s office, although the combined news resulted in a 10% decline in Alibaba’s shares.

In an internal communication, Jane Jiang, Alibaba’s chief people officer, clarified Ma’s plan to support agricultural technology and philanthropy using the funds, emphasizing that Ma has not sold any Alibaba shares as the stock is presently “very much undervalued.”

Nigeria To Partner with International Donors to Raise $200m to Boost SMEs

By
Samuel Nwite
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0

In a strategic collaboration between the Federal Government and international philanthropic organizations, plans have been unveiled to raise $200 million aimed at fostering job creation and bolstering Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.

Senior Special Assistant to the President on MSMEs and Job Creation, Mr. Temitola Adekunle-Johnson, revealed this development in a statement released in Abuja on Sunday, per NAN.

Adekunle-Johnson emphasized that the funds raised would be strategically invested in key programs and projects, targeting various sectors to generate employment opportunities and drive growth within the MSME space.

He further highlighted the establishment of Nigeria’s inaugural Philanthropy Office, an initiative led by the private sector and housed within the Vice President’s office.

“Further to this, the presidency has established the first-ever Nigeria Philanthropy Office– a private sector-led coordinating office domiciled in the office of the Vice President.

“The office will facilitate this high-level philanthropic support and impact investing for Micro, Small, and Medium Enterprises for targeted sectors that have high job creation potential.

“The mandate of the new office aligns with the job creation vision of President Bola Tinubu and the administration’s ongoing work in the MSME space,” he said.

This office aims to coordinate high-level philanthropic support and impact investing specifically tailored to the MSME sector, focusing on sectors with substantial job creation potential.

The newly established office aligns closely with President Bola Tinubu’s vision for job creation and the ongoing efforts of the administration to enhance the MSME landscape.

The primary goal of the office is to collaborate with donors, impact investors, financial institutions, and foundations to facilitate significant interventions capable of employing a considerable number of Nigerians.

Specific sectors earmarked for support include fashion, irrigation solutions, solar panel facilities, agro-processing, mechanized industrial facilities, furniture, sustainable agribusinesses, and renewable energy solutions.

Additionally, plans are in place to establish 12 mega hubs and shared office spaces strategically located across the country to further support and nurture entrepreneurship.

Vice President Kashim Shettima has appointed an implementation committee comprising local and international philanthropic and impact-investing organizations, financial institutions, and key stakeholders such as the Bank of Industry, NEXIM Bank, Wema Bank, Access Bank, and the Nigeria Content Development Monitoring Board.

The Chairperson of the Nigeria Philanthropy Office (NPO) and the implementation committee is Ms. Thelma Ekiyor-Solanke, a seasoned professional with over 23 years of experience in international development, philanthropy, and impact investment sectors. Ekiyor-Solanke brings a wealth of expertise and a diverse background, having served in various influential roles in Nigeria and internationally.

The secretariat for the committee will be coordinated by the Senior Special Assistant to the President on MSMEs and Job Creation, further demonstrating the government’s commitment to fostering sustainable economic growth and job creation in Nigeria.

Cyber Monday: Get 50% Discount On These Tekedia Courses

By
Ndubuisi Ekekwe
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0

Let’s hit more records as we extend the Black Friday to Cyber Monday. Yes, get Tekedia Institute courses at 50% discount. Here are the affected courses:

-Tekedia Startup Masterclass: from idea to revenue

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-Tekedia Industries (Agro, Energy, Digital Tech)

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While Tekedia Mini-MBA is not included in this offer, the registration continues. Begin here for all the #best courses. Let’s go back to school, Good People.

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