The summer of 2019 is over, but August has left us with some great news for the crypto community and for the overall fintech sector. What happened in the crypto world in August 2019?
World’s first crypto bank
The Swiss financial regulator has given funding market and securities trader licenses to 2 blockchain businesses (Sygnum and SEBA), set to become the world’s very first crypto banks.
The businesses are going to have the ability to issue, shop, commerce, and handle digital assets, specifically Bitcoin and Ethereum, and convert fiat currencies like Swiss francs, US dollars, and euros to the 2 cryptocurrencies.
They also aim to give their shareholders custody, broker and tokenization services due to their electronic assets. The two companies, however, have to fulfil particular “secondary standards” required by FINMA to turn into fully-operational Swiss banks. These standards have never been revealed to the general public.
The co-founders of all Sygnum crypto lender have hailed the award of a Swiss banking permit for a game-changer that may open the gates to the integration of cryptocurrencies and other electronic assets to the recognized financial industry.
“This is the first time such licenses have been granted worldwide, so Switzerland is playing a pioneering role,”
-Manuel Krieger, CEO of Sygnum Switzerland
“We now have a responsibility as an enabling platform to help banks and other financial players make the step into the digital asset world.”
“Cryptocurrencies will come out of the shadows if dealing with these assets can be done in a 100% compliant manner upholding all the rules that a strict regulator demands. That is a game-changer,” he added.
New Zealand adopts rules for crypto payroll
Crypto salaries do not really require dedicated legislation or unique permissions by governments to be lawful. Many countries allow a part of a worker’s compensation to be non-monetary assets and/or commodities. And in authorities where electronic coins aren’t referred to as currencies, they’ve been given a commodity standing.
But it will seem like a step ahead when a government service explicitly mentions crypto salary in its official records. And that is exactly what the taxation jurisdiction in New Zealand lately did, deeming it lawful for companies to pay salaries in bitcoin. Businesses will then have the ability to withhold tax on income obligations under the present pay-as-you-earn schemes such as those of frequent fiat salaries, in accordance with the nation’s present taxation laws.
And while crypto-enthusiasts have welcomed the agreement as a person which may promote crypto adoption, doubters have expressed worries its sole objective is to make sure the group of more earnings from the authorities in Wellington.
Of course, this comes under a set of conditions.
To start with, only workers working under official arrangements can be compensated with cryptocurrency. Afterwards, the obligations should be for a fixed sum, not exceeding half the complete pay, together with the value of this crypto asset pegged to one or more fiat currencies. The crypto salary has to be a normal part of the worker’s remuneration and be substituted to government-issued fiat cash such as the New Zealand Dollar.
The IRD also pointed out that wages have to be compensated in a coin which can easily be exchanged for fiat. This condition aims to protect workers from being compensated in an illiquid asset or little altcoin. Bitcoin Cash (BCH), Bitcoin Core(BTC), Bitcoin Gold (BTG), Ethereum (ETH), and Litecoin (LTC) are on the list of the currencies which meet the criteria.
Samsung has added Bitcoin support
Samsung has added bitcoin service to its Blockchain Keystore, which means the newest Samsung Galaxy S10 and Note10 versions are going to have the ability to store Bitcoin private keys.
Control over a pocket’s personal keys is frequently cited as one of the most overlooked and important facets of bitcoin and cryptocurrencies, together with many of their largest crypto exchange hacks and thefts occurring because individuals don’t put away their crypto in personal wallets.
The Samsung Blockchain KeyStore is called “a secure and convenient place for your cryptocurrency,” and can be saved on the telephone’s secure-element, very similar to Apple Purchase and Google Pay, and “never saved to a Samsung or external cloud.”
Meanwhile, technology firms across the world, from societal networking giant Facebook into iPhone-maker Apple, have taken an interest in bitcoin and crypto this season, bringing the bitcoin and crypto marketplace from a year-long bear industry.
As technology businesses combine the classic financial sector in trying to Bitcoin and cryptocurrencies since the future of cash, new consumers are expected to stream in the area, which can lead to a surge in adoption.
Support is limited to Samsung’s Galaxy S10e, S10, S10+, S10 5G, Note10 along with also the Note10+.