Category Archives: Digital Assets

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Crypto360 Exclusive: Inheritance, Custody – Crypto Deserves Same Protection as Traditional Assets

Crypto360 Exclusive: Inheritance, Custody – Crypto Deserves Same Protection as Traditional Assets

As the blockchain and cryptocurrency industries mature, firms are beginning to use the technologies to create increasingly sophisticated alternatives to mainstream financial services. Beyond cryptocurrency exchanges, startups have created solutions for cryptocurrency loan services and futures trading, with many expected to see a Bitcoin exchange-traded fund in action later this year.

Based in Italy, Crypto360 is one such company offering an innovative finance solution as a digital currency custody provider. The project has two main selling points: 1) it offers a legally compliant platform to administer digital currency inheritance and 2) it provides a custody solution suitable for institutional and retail traders alike.

Ivan Rossi, who works at the company’s front desk, told Bitcoin News:

”We want to give to cryptocurrencies the same protection that traditional assets have on the hereditary front, and we do it in a different way from the competitors without taking possession of the asset.”

Crypto360’s founders claim they were ”not amazed” by other custody solution providers in the market but appreciated that these alternatives confirmed that custody is valid if integrated with the possibility for assets to be handed down in the face of decisive events.

Contractual and conditional custody on the go

The firm provides an ”ad hoc solution” for institutional investors, offering them different contractual conditions from that of other investors. 

A major group of users is expected to be those looking for a way to manage their cryptocurrency for inheritance with full legal compliance. Rossi explained, ”It is compatible with local tax laws because cryptocurrencies are not yet included as goods in the hereditary asset. The Crypto360 service has been conceived as an encrypted custody of private keys and the aspect of succession is an integrative character that makes its sphere of application complete.”

As well as inheritance, clients can assign a designated beneficiary to assume funds in the event of a particular incident that is contractually identified. 

The platform does save a copy of clients passwords but this is protected by a double level of encryption and stored in protected archives. If somehow the account was accessed fraudulently, any request to redeem funds in the account would be met with a request to verify the individual’s identity.

Rossi told Bitcoin News that the security process on Crypto 360 means the usual storage precautions needed to protect your private key does not apply. ”Clients can pin their password up on the wall or store it freely on multiple clouds. He could adopt any duplication and storage solution without countermeasures for the secret protection of the data, all in order to prevent its loss and without the fear that someone can use it,” he explained.

Because Crypto360 securely stores an encrypted copy of clients’ security details, if you lose your password through your own negligence you have not lost access to your account. As the company’s white paper cites, in 2017, as much as 23% of mined Bitcoins had been lost forever due to human error, so this is a way to help prevent client holdings from joining that statistic.

Security is, however, still a huge issue for cryptocurrency traders as compromised exchanges continue to make the headlines. Most recently it was revealed QuadrigaCX was given another 45-day extension for creditor protection, meaning any clients who lost money when the exchange lost control of USD 134 million in cryptocurrency will be unable to begin legal proceedings against the exchange during this time period. The exchange claims it lost control of the funds when its founder, who had sole control of the funds, died suddenly without passing on the private keys.

Rossi stated that Crypto 360 offers a different service to that of cryptocurrency exchanges, also operating with a unique security protocol which means incidents such as that experienced by QuadrigaCX would not happen on their platform. He added, ”It is important for users in the crypto world to understand that it is not safe to hold cryptocurrencies within exchanges. They are at risk of hacking and in the absence of countermeasures aimed at protecting the loss of access to funds, customers will lose their cryptocurrencies.”

How popular will crypto custodial services be?

It is no secret that cryptocurrency prices are not having their best moment. The success of projects such as Crypto360 is dependent on a large enough demand for its services, something directly correlated to the popularity of cryptocurrency and largely market prices also.

As the firm sees it, as the market matures there is a natural selection of projects as there was last year, but it is unlikely that performance similar to that of 2018 are repeated. ”Our vision on the market remains optimistic and we assume that it is a trend that is constantly growing, but in a more natural way that allows it to be consolidated,’ Rossi told Bitcoin News. 

Crypto360 also faces the potential problem of competition as more blockchain firms emerge to offer similar cryptocurrency solutions. Being one of the very first players, however, they are confident they will stay at the top of the game.

”We pride ourselves on being the first to think of a custody solution that keeps the clients’ funds private. It is very likely that the next competitors will be the banks, which as they currently do with the other assets, will keep the cryptocurrencies coming directly into possession,” Rossi affirmed. 

The prediction that 2019 will be the year of the cryptocurrency institutional investor had perhaps the largest consensus of all the year’s forecasts. In Rossi’s view, the time has already arrived: “[Custody soloutions] are a need very felt by the market and there are already large institutions ready to enter this business.”

 

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Russian Lobbyists Push Alternative Crypto Regulation Bill

A lobby group in Russia is actively working to push an alternative cryptocurrency legislation bill, which they say addresses the contradictions set in the government’s drafted ‘On Digital Financial Assets’ bill.

The Russian Union of Industrialists and Entrepreneurs (RSPP) want to give cryptocurrency a special status, entrusting their regulation solely to the country’s central bank. The document they presented separates digital assets into three groups: tokens, which are equivalated to securities, cryptocurrencies, and so-called ‘digital signs’. It also sets out the rights of cryptocurrency exchanges and holders.

Behind RSPP’s bill proposal are some of Russia’s wealthiest business personnel. The group is headed by the president of the mining and metallurgical company “Norilsk Nickel” Vladimir Potanin. Other members include the head of Rostelecom Mikhail Oseevsky and the president of the Skolkovo fund Viktor Vekselberg. They say they have sought expert counsel from members of the government, including the State Duma of the Russian Federation.

Local media outlet Forklog reports that Potanin’s deputy Elina Sidorenko discussed the subject at lengths, saying that all of the composers of the bill are interested in promoting ”safe business.”

She detailed that On Digital Financial Assets, particularly parts one, two and four of the Civil Code of the Russian Federation, as well as On Alternative Methods of Attracting Investments (crowdfunding), as contained in the initial draft proposal, is both crude and at odds with one another.

The lobby group hope their bill will be considered as a solution to these issues: “The project, proposed by the working group of the RUIE, is a legally balanced golden mean between the bills” On the CFA and On Amending the Civil Code of the Russian Federation “…and neutralizes the contradictions in them. It is designed by taking into account the western trends and the current Russian legislation.”

On the matter of cryptocurrencies, she says they hope to give them a special status never seen before in Russian law and that the central bank should issue operational licenses for exchanges. Ownership of cryptocurrencies should be very similar to the ownership of securities, she added.

The document is currently being negotiated within the Russian Union of Industrialists and Entrepreneurs, and in early October it is scheduled to be discussed with state body representatives.

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Video Games and Blockchain Technology Continue to Merge as Leading Developer Unity Enters the Fray

Last year, social media platform Kik raised a whopping USD 98 million for its “kin” token, and now the Kin Foundation is branching out into the video game industry, specifically through leading game engine developer, Unity.

Unity has joined with Kin to develop a gaming-specific software development kit (SDK), the purpose of which is to integrate kin, which is hosted on both Ethereum and Stellar blockchains.

Worlds collide

The famed game engine developer is responsible for games such as the Rick and Morty: Virtual Rick-ality VR game, Cuphead, Hearthstone: Heroes of Warcraft and Kerbal Space programme, and is a company that is very well ahead of the times. Earlier this month, PocketGamer.biz reported that Unity had also partnered with DMarket in a move intended to bring real asset value to in-game inventories.

Theirs not the only video game focused blockchain effort in the world. BitcoinNews recently reported that an Ethereum-based tabletop video game console is making its way onto the market that has potential to share a similar premise, the monetization of video gamers in-game data, such as high-level characters or items.

Another player in the game, ImmVRse, is taking on the cutting edge of video game technology. Virtual Reality (VR) is getting attention from industries all across the globe; construction, property, medicine, advertising and of course, video games are all developing VR systems for whatever needs they have.

Once again, with ImmVRse, the idea is to decentralize VR and monetize the creative content built through on platforms through its native token.

Lidwine Sauer, director of insights and trends at publishing giant Ubisoft’s Strategic Innovation Lab, summarized the ideological pursuit in an interview with gaming news website IGN, saying:

“…finally have real digital collectibles that cannot be replicated by anyone and can be 100 percent owned by you. Thanks to the blockchain, we can now have the equivalent of a digital Picasso, with the advantage that it’s a lot more difficult to steal something on the blockchain than to steal a Picasso.”

Digital ownership
Monetization and peer-to-peer trades appear to be part of the early and decentralization of video game technology, and perhaps for some players, it redistributes some of the incredible amounts of revenue from micro-transactions and digital content made by the industry.

It seems natural for these two technologies to come together, as virtual currencies and digital cash purchases are now a norm for consumers. The gamer audience is dominantly made up of millennials already have a strong connection with blockchain technology and may treat these early efforts to control their digital assets similarly to that of the liberating move away from fiat to crypto.

 

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