Gibraltar to Become the World’s First Crypto Hub

Gibraltar to Become the World’s First Crypto Hub

Valereum, a blockchain company, send a proposal to purchase the Gibraltar Stock Exchange (GSX). The local regulators are reviewing the proposal.

This would mean that the British overseas territory could host the first integrated bourse in the world, where both traditional bonds and major cryptocurrencies like Bitcoin, Ethereum, Stellar and more can be traded.

This is a bold move in a small territory of 33,000 inhabitants, where the financial industry accounts for approximately a third of Gibraltar’s £2.4bn economies.

The enclave could be a global hub for cryptocurrency if everything goes according to plan. However, if the control mechanisms set by the small group of regulators fail, it could cause reputational damage and eventually diplomatic sanctions that could threaten its economic health.

Large states have banned crypto investing, but not Gibraltar

While many countries, including China and the UK, have banned or openly warned against investing in crypto assets, Gibraltar has defied the trend. It has committed to formalizing the regulation of cryptocurrencies to help ensure the territory’s future status as a financial centre.

This comes as Gibraltar is trying to get rid of its reputation as a tax haven. The government has sued a Spanish newspaper to try to restore its global standing.

Albert Isola is Gibraltar’s minister of digital, financial services, and public utilities. He says that although Gibraltar was once a tax haven, it has since reviewed its tax policies. He says that crypto regulation can help spot malicious actors, while supporting investors.

Isola states,

“If you wanted to do naughty things in crypto, you wouldn’t be in Gibraltar, because the firms are licensed and regulated, and they aren’t anywhere else in the world.”

Gibraltar has licensed blockchain and crypto companies before

Gibraltar’s regulator approved 14 blockchain and cryptocurrency firms for its licensing program. This attracted Richard Poulden, the ex-Sirius Minerals chairman, who chose Gibraltar to host Valereum’s crypto-exchange project. He claims that Valereum is trying to harness a crypto sector worth approximately $3.5 trillion (£2.6 trillion), which is roughly equal to the total value of all listed companies on the London Stock Exchange.

Poulden is the chairman and CEO of Valereum. It is based in Gibraltar. The company focuses on technology that can link mainstream currencies like the dollar and the pound with crypto assets.

However, reorganizing an exchange with only three employees will prove difficult. It will also require a change to Gibraltar’s regulations regarding how crypto will be traded on the Gibraltar Stock Exchange (GSX). Poulden claims that his company is relying more on technology, rather than people, to eliminate bad actors.

He said that running anti-money laundering checks for cryptocurrencies is not much different than running them on any currency. Using blockchain, it will be much easier to back cryptocurrency funds than it is to locate fiat funds in banks.

It is expected that other countries will follow Gibraltar

Neil Williams, London-based deputy chief of complex crime at Reeds Solicitors, says: “If it’s a success, you’d certainly think that other jurisdictions would look to follow because it’s an ever-increasing valuable commodity.”

Experts warn that Gibraltar could be subject to sanctions from countries like the US if it gives legal approval to crypto companies that – even accidentally – allow money laundering, black-market criminals, or kleptocrats who want the anonymity of crypto assets.

This comes amid concerns at major global financial regulators like the Bank of England over the rapid growth of crypto-assets and potential consequences for investor protection, market integrity and money laundering, as well as the financing of terrorist groups.

Charlie Steele, a partner in Forensic Risk Alliance and former US justice secretary official, a forensic accounting company and consultancy, says that money laundering, sanctions evasion and terrorist financing could be enabled or facilitated by it: “Regulators worldwide, almost all of them really, are approaching it from a position of deep scepticism … so it’s a little outside that strain of thinking for a country to welcome them in to buy a stock exchange.”

Can crypto regulation backfire for Gibraltar?

One month prior to Valereum’s October bid for the GSX, Gary Gensler, the head US Securities and Exchange Commission declared that crypto as an asset was more similar to the wild west. This raises further concerns about criminal funds entering the mainstream financial system.

Insufficient anti-money laundering controls have led to jurisdictions like Malta being grey-listed by the FATF, the world’s money-laundering watchdog. This could have serious consequences for Malta’s economy and is a warning to other countries and territories that might be tempted not to follow regulations.

Singapore had to reverse its approval of Bitget, a standalone crypto-exchange. It suspended Bitget’s standalone crypto exchange earlier in the month due to its promotion of a digital currency that was involved in a high-profile branding dispute. The exchange had used an unauthorised image from K-pop group BTS to maximize its profits.

Steele warns that if it looks like everyone is running to Gibraltar for real regulators, it will not work out well for them.

If sanctions or anti-money laundering rules are broken or evaded they can do a lot of things, including lead international through the FATF to make it hard on Gibraltar. He adds that you’ll be able to see that the FATF has all sorts of measures that will force its members to limit business with that country.

Gibraltar insists it has been paying close attention while welcoming crypto firms. It has consulted on the sector’s regulation for four years, before introducing it in 2018. This helped it secure its reputation as “Blockchain Rock”. They filter through and license firms to eliminate bad actors, according to Isola.

“I don’t see how Gibraltar can have an increased risk. You can run the exact same business in any other European country without supervision, licensing, or regulation. How can regulation make us more vulnerable?,” Isola claims.

He points out that only 14 applications have been approved by the country’s regulator in the past three years. This is a figure that he says speaks to the strictness of the licensing system. 

The Gibraltar Financial Services Commission did not comment on the Valereum proposal.

FSOC Annual Report Warns About Stablecoins and the DeFi Market

FSOC Annual Report Warns About Stablecoins and the DeFi Market

The Financial Stability Oversight Council (FSOC) still awaits the U.S. Congress’s action on cryptocurrency, and in particular, stablecoins, before it decides if it should take any action.

Although FSOC was unsure whether it would take specific crypto-related actions or not, their annual report highlights the concerns regulators have regarding stablecoins, and the wider cryptocurrency market. 

Two key issues were mentioned in the report: the possibility that some stablecoins may not be fully backed or are unable to maintain a peg against the dollar or another currency.

Regulators are concerned about stablecoins

The reserves of these stablecoins may not be subjected to rigorous audits. In some cases, the collateral’s quality and quantity may not correspond with the issuers’ claims. The report also stated that stablecoins that are maintained by algorithmic mechanisms can be subject to failure due market pressures, operational failures, and other risks.

The meeting, which includes key financial regulators, was devoted to discussing financial stability issues such as climate change and proposed rulemaking. It also discussed LIBOR, digital assets, and other financial regulation issues. 

The FSOC was established in 2010 to monitor the potential risks to the U.S. Financial System following the 2008 crash.

According to a press release Janet Yellen, Chair of Securities and Exchange Commission Gary Gensler, Rostin Behnam, Acting Chair of CFTC, and more than half a dozen regulators were present.

The report highlighted the potential risks and development of decentralized finance (DeFi) and other crypto-related activities like lending and trading. It also highlighted the fact that crypto risk is dependent upon “the structure and consensus mechanism of the assets.”


Despite the historic developments in crypto on Wall Street this year, FSOC was not convinced that the volatile asset class is now a viable “investment tool” for traditional investors. The report stated that speculators seem to be driving the majority of trades.

However, the crypto market has experienced quite a few hacks. According to Chainalysis, cumulative losses from rug pulls and other scams have exceeded $7.7 billion over the past twelve months.

The potential for “fire sales” that could result in one coin being destroyed before spiralling across markets is only fuelled by decentralised finance (DeFi). This contagion is more likely to “spread to other financial institutions” the more “traditional financial institutions” plug into crypto markets.

DeFi users could also suffer losses due to price volatility, operational issues with their platforms, or cybersecurity issues.

The $127 billion stablecoin marketplace carries its own operational settlement and liquidity risk. These risks may be magnified as more users enter the market.

According to the report, this market segment could be under the jurisdiction of the SEC or Commodity Futures Trading Commission, (CFTC), as well as other agencies.

FSOC stated that traders’ confidence in the stablecoin’s value store is crucial. There are many ways to shake that confidence. The mere possibility of an issue could be enough to start a self-perpetuating run.

The stablecoin’s popularity will determine how wide the real-world economy feels this fallout. The dominance of a single-issuer currency has its own set of problems.

FSOC advised federal and state regulators to continue their examination of the crypto market in an effort to understand its systemic risks.

Benefits of stablecoins

However, the report did not discuss the potential benefits that stablecoins or other digital assets could bring.

Stablecoins are currently used predominantly in lending, borrowing, and trading. However, they could one day be used as a payment instrument.

The report stated that if stablecoins were to be well-designed and properly regulated, they could enable faster and more efficient payments than the current channels.

The report stated that the transition to wider use of stablecoins could occur quickly due to network effects, relationships between stablecoins, existing user bases or platforms.

According to the report, stablecoin transfer might increase the efficiency of payment tools.

Wright Won Against Kleiman. But Is Craig Wright the Real Satoshi Nakamoto?

Wright Won Against Kleiman. But Is Craig Wright the Real Satoshi Nakamoto?

Wright doesn’t own half of his alleged Bitcoin stash to Kleiman’s family. But, is Craig Wright the real Satoshi Nakamoto? The question remains. 

Did you know that there is a bronze statue of Satoshi Nakamoto in Budapest, Hungary? The statue features an anonymous face that lets the viewer see his own face reflected. The statue is dressed in a hoodie, that covers the head and has the Bitcoin sign on the chest.

The person who invented the first cryptocurrency is still unknown, and that left plenty of room for speculations. Over the years, many have come to say that they are the real inventors. 

The most recent controversy goes back to Craig Wright, who claims to have invented Bitcoin.

In November 2021, a Florida lawsuit disputed over Wright’s partnership with Dave Kleiman, in the W&K Info Defense Research company. The trial ended and Wright was dismissed. Wright does not owe half of 1.1 Bitcoin to the Kleiman family.  

The jury found Craig Wright not to be part of the company, which satisfied both parties in the end, although Ira Kleiman, the brother of the deceased Dave Kleiman, only obtain $100 million in compensatory damages. 

The Craig Wright and Dave Kleiman Partnership

According to court papers, the first 1.1 million bitcoins were mined by Satoshi. In October 2008, the creator of the cryptocurrency described in his whitepaper “Bitcoin: A Peer-to-Peer Electronic Cash System” the detailed framework for Bitcoin. 

In 2016, Wright claimed that he is Nakamoto, which is only a pseudonym he used at the time. However, many have disputed his claim.

Kleiman’s family claimed that Wright and Kleiman were friends and business partners. However, Wright stole the bitcoin resulting from their relationship. This was the recent lawsuit all about. Since Dave Kleiman died in April 2013, the lawsuit was started by Dave’s brother, Ira. 

Wright was fighting the claims that he and David Kleiman were the ones who created bitcoin, as business partners. Dave’s family argued that half of that original Bitcoin mined by Satoshi (worth $50 billion at the time of the trial) was theirs.

Wright won the battle. A Florida jury found that he didn’t owe any money. His lawyers claimed that the two were close friends and had worked together. However, their partnership had nothing to do with Bitcoin’s creation.

Despite the unfavourable result, the W&K lawyers said that they were “immensely pleased” by the award of $100 million in intellectual property rights to Kleiman’s estate. They also stated that they would give the Kleiman’s “their fair portion of what Dave created.”

While the trial was about the partnership of the two, it was accepted by both parties that Craig Wright is the creator of Bitcoin. But the mystery remains, as Wright must prove that he owns some of the original bitcoins to prove that he is Nakamoto.

Dr David Glance, a University of Western Australia computer scientist and Bitcoin expert, said that such a feat is proof that Wright is the rightful owner: “If you want to prove that you are who you claim to be, you only have to prove that you have the key (to bitcoin)”.

To prove that, Wright would only need to move the Bitcoin to another wallet. But there is another possibility that Wright or Nakamoto (or anyone else) could have lost the key. If Wright had been found to owe half of Kleiman’s money, Wright would have to transfer the bitcoins to Kleiman’s family. This would have proved that he was Nakamoto.

They didn’t find it, so it remains a mystery. 

Since Bitcoin was created, many have forgotten their private keys to the cryptocurrency wallets that were holding the funds. 

Who is Satoshi Nakamoto?

We know for a fact that Nakamoto was online and discussing bitcoin development until 2010.

The whitepaper was published in 2008, and the first block was mined in January 2009. However, he had disappeared since then, except for some minor post in response to the media’s speculation about his identity. Every now and then, someone raises to claim that he is the real Satoshi, but nobody has been able to prove it so far. 

Around the globe, computer experts, and crypto enthusiasts have tried to figure out who Nakamoto was or is. That’s because the person who created bitcoin is extremely wealthy, and the mystery is appealing.

At some point, a triumphant media identified the Japanese-American man Dorian Satoshi Nakamoto, and followed him through Los Angeles. The man was cornered outside his house by reporters and said that he had never heard of bitcoin before being contacted media. He then asked for a free lunch. Satoshi Nakamoto appeared briefly and posted they were not Dorian and disappeared afterwards. 

In 2015, some reporters from Probably found that Craig Steven Wright was Nakamoto. They traced Wright’s online past back to 2008 and discovered several links that suggested Wright was preparing to release cryptocurrency. They also found an email that contained the Nakamoto name, but Wright’s number.

However, Nakamoto appeared again, claiming that he wasn’t Wright.

Others have been mentioned, including Elon Musk, an entrepreneur whose tweets on cryptocurrency show that it can be seen its value rising and falling. But Musk denied that. Acquires Two Exchanges From IG Group for $216 Million Acquires Two Exchanges From IG Group for $216 Million

The rapidly-expanding cryptocurrency exchange, from Singapore, has reached a deal to acquire two trading platforms from IG Group. This would allow it to gain more authority on the highly regulated derivatives markets from the US. 

The $216 million deal with IG Group

On Wednesday, December 1, 2021, agreed to a $216 million deal to acquire IG Group’s stakes in a US futures market and a binary trading platform owned by FTSE 250. bought both North American Derivatives Exchange (Nadex) and Small Exchange from London-based financial services firm IG Group in an attempt to expand its presence in the U.S.

This deal will allow to offer futures and derivatives to US customers.

This is an area that has been difficult for crypto exchanges due to strict regulations regarding the sale of these high-risk investment products to investors. 

Chief executive of, Kris Marszalek, stated that the acquisition will give customers access to a new set of financial tools in addition to their existing offerings. 

North American Derivatives Exchange, (Nadex) is included in the deal. This allows traders to place binary bets on what will happen within a given time frame, such as whether a currency, commodity, or index will rise or fall. This can take as little as five minutes. Options providers often allow customers to increase their chances of winning with borrowed money. This greatly increases the potential winnings and decreases the risk for consumers. 

Customers are informed about their maximum gains and losses prior to the trade being executed by Nadex. IG Group will also be selling its 39% stake in Small Exchange. This futures exchange is geared towards retail traders and was launched last year by Wall Street giants such as Interactive Brokers Group, Phillip Capital, Jump Capital, Citadel and Peak6 Investments.

IG CEO June Felix said: “We’re really excited by this deal, as it delivers a significant return on the previous investments made in Nadex and Small Exchange and enables additional investment across all our businesses.”

Regulatory Issues

According to the groups, the deal is expected to close by the end of the first half of 2022, as it is subject to regulatory approval. 

The exchange stated that both companies would be brought under, but their chief executives will remain. June Felix, chief executive at IG Group, stated that the sales would enable the company to “further hone our focus” on integrating, expanding its options, and future business via Tastytrade (the US brokerage it purchased for $1bn) in January. 

Some crypto groups have found derivatives lucrative but difficult to use because the risky instruments are closely controlled by regulators in many other countries. BitMex, a crypto operator, was ordered by a US federal court to pay a $100m civil fine for providing leveraged crypto trading without authorisations. 

In 2020, the Commodity Futures Trading Commission brought the case against BitMex alleging that BitMex was operating a cryptocurrency derivatives trading site illegally. BitMex stated at the time that they take their “responsibilities extremely seriously” and will continue to engage with regulators all over the globe. is a privately owned company with 3,000 employees worldwide. It has seen a 20-fold increase in revenue over the past five years and has also gotten substantial cash. This was due to the boom in trading digital assets.

The crypto offerings are expanding

In terms of both asset prices and product offerings, the crypto market has seen a boom in the last year. 

As rivals fight for market share, deals in crypto have increased. Coinbase Global Inc. announced a deal for Israeli cryptographic-security company Unbound Security and the team from crypto wallet firm BRD. 

Gemini Trust Co. launched a fundraising campaign valued at $7.1 billion.

In October, Cboe Global Markets Inc. re-entered crypto by buying Eris Digital Holdings LLC.

An Ethereum Investment Is Better Than Bitcoin in the Long Run

An Ethereum Investment Is Better Than Bitcoin in the Long Run

Is an Ethereum investment good for your portfolio? According to the largest bank in the US, Ethereum, the second-most valuable cryptocurrency in the world, is a better option than Bitcoin when it comes to long-term gains.

Is an Ethereum Investment Better Than Bitcoin?

In a recent report, JPMorgan analysts, led by market strategist Nikolaos Panigirtzoglou, stated that Ethereum’s increasing number of uses, including peer-to-peer lending and NFTs, should help it retain its value in an environment of rising interest rates.

On the other hand, Bitcoin could be on the verge of a downfall.

The report states that the rise in bond yields, and eventual normalization of the monetary policy are putting pressure downwards on bitcoin as a digital gold form. This is the same pressure that higher real yields have put downwards on traditional gold.

Panigirtzoglou stated that the rise in bond yields, and eventual normalization of the monetary policy are putting pressure downwards on bitcoin as an alternative to digital gold. He also noted that higher real yields have put downward pressure on gold.

“With Ethereum deriving its value from its applications, ranging from DeFi to gaming to NFTs and stablecoins, it appears less susceptible than bitcoin to higher real yields.”

JPMorgan analysts also suggested that ethereum (ETH) might be a better investment over the long term because of the increasing importance of environmental issues in investing.

Both Ethereum and Bitcoin Consume Too Much Electricity

Both cryptocurrencies use an enormous amount of electricity for their security and validation systems. However, Ethereum plans to transition away from this system (proof-of-work) to one that is far less energy-intensive (proof-of-stake) by the end of 2022.

Analysts stated that investors have shifted their attention from the energy-intensive bitcoin blockchain to the more sustainable Ethereum blockchain due to a greater focus on environmental and social and governance investments.

JPMorgan, however stated that both cryptocurrencies appear to be overvalued as they are too volatile for institutional investors.

In an effort to reduce inflation, central banks all over the globe are cutting their support for countries. This means that interest rates and bond yields will rise.

At the beginning of November 2021, the Bank of England stated that interest rates would have to go up in the “coming months”. Afterwards, the Federal Reserve slashed its $120 million per month bond purchase.

JPMorgan believes that investors might be better off holding ether ETH (the second-largest cryptocurrency in the world), which is based on the Ethereum blockchain. It has more uses than bitcoin, so it should be held with greater interest.

The world of decentralized finance (DeFi) is a growing sector that relies on blockchain technology to perform traditional financial tasks like trading or lending. It is also the core of non-fungible tokens (or NFTs), collectable items that are traded and secured with crypto tech.

Although an Ethereum investment is “safer than Bitcoin”, this is crypto after all, and volatility is part of the game. However, there are ways to indirectly invest in Ethereum without buying ETH. 


Coinbase, the US’s largest cryptocurrency exchange, is well-positioned to take advantage of the rise in Ethereum investments and trading. They also earn a transaction fee for every sale and purchase.

Many of the cryptocurrencies that are traded on the exchange use the Ethereum blockchain. This means that a Coinbase bet is, in essence, a bet against Ethereum. Their futures are closely linked.

You want to see growth potential in any stock, and Coinbase does that. Coinbase saw 1.5 million monthly users in the second quarter of 2020. The number grew to 8.8 million a year later. In the same time period, their net revenue grew from $178 million to $2.03 billion.

Coinbase stock (COIN) is currently trading at $321. If you decide to invest in Coinbase shares, you don’t have to pay the full price per share; some investing apps let you purchase fractional shares.


Robinhood’s stock performance from July’s IPO launch may make you wonder if Robinhood’s meme stock juice is waning. It’s down more than 20% since July’s IPO launch.

Robinhood isn’t just a stock trading platform that doesn’t charge commissions. Since 2018, the discount broker has been facilitating bitcoin (BTC) and ethereum (ETH) trading. It now allows users to purchase and sell litecoin (LTC) as well as bitcoin cash (BCH).

Robinhood’s cryptocurrency offerings have also been a success. The Q2 2021 crypto-generated revenue was $233 million, which is more than 40x the amount it was in the previous year.

HIVE Blockchain

HIVE Blockchain, a cryptocurrency miner, is one of many companies that convert huge amounts of computing power into crypto tokens. HIVE mines Ethereum (ETH), Bitcoin (BTC), and Ethereum Classic (ETC).

Among prominent investors, Elon Musk, Tesla’s CEO, is concerned about the impact cryptocurrency mining has on the environment. HIVE is focusing on green energy to power its mining.

HIVE plans to focus on other cryptocurrencies after Ethereum 2.0 is released, but the company’s business is still heavily dependent on Ethereum. This should allow HIVE to provide decent exposure for Bitcoin’s younger brother in the near and mid-term.

HIVE investors had a fantastic 2021. Since the start of the year, the stock price has more than doubled.

Ethereum Investment

Crypto investing is risky

Cryptocurrency investing is not for everyone and for sure most investors won’t start with a big Ethereum investment. It is a risky investment because of the wild price swings and the many, many queries about its future as a currency.

If you feel the crypto market is not for you and the stock market seems ready to plunge, then it may be time for you to invest in real assets like commodities.

Contemporary art is another option, which has outperformed almost every year since 1995 by nearly doubling the S&P 500.

Modern masterpieces don’t need to cost millions. You can purchase shares in works that are rapidly increasing in value with a new app.

They won’t look as good on your wall but they should look great in your portfolio.