Bitcoin

Bitcoin Daily: High-Profile Firms Plan ‘Blockchain Association,’ Cryptos Tumbled 76 Percent Since January

Bitcoin Daily

High-profile digital currency firms are reportedly banding together to create a lobbying organization called the Blockchain Association, The Washington Post reported. The group’s first focus is said to be on U.S. tax law treatment of digital currencies, along with explaining the application of know your customer (KYC) and anti-money laundering (AML) rules to the space.

Circle and Coinbase, among other firms, are reportedly a part of the initial effort. Investors like Polychain Capital, along with cryptocurrency exchanges, are also said to be participating. In addition, the group has reportedly hired former Congressional Aide Kristin Smith.”I’ve been spending a lot of time doing a lot of the basic education work in this space,” Smith said, according the paper. “I’m excited to focus exclusively on these issues.”

In other news, digital currency exchanges are taking new approaches to gain market share and drive activity, Bloomberg reported. Some exchanges are rolling out ways for traders to vote on possible listings through “native coins,” and other exchanges are seeking to have startups bring depositors to their sites to have their coins listed.

By contrast, traditional exchanges usually don’t make issuers bring traffic to their platforms and offer flat rates. Lucas Nuzzi, director of technology research at Digital Asset Research, told Bloomberg in an email, “the market downturn has certainly contributed to an increase in unorthodox strategies by token issuers and exchanges.”

The value of all digital currencies dipped under $200 billion over the last weekend, The Wall Street Journal reported. That level is dramatically lower than a high in January of $832 billion. Lately, ether has plummeted by 53 percent from June 30, while Ripple has fallen 43 percent. Since bitcoin has dropped by only 1.7 percent during that time, the popular cryptocurrency has been down 20 percent from a high in July.

According to Messari Co-founder Dan McArdle, so-called “crypto tourists,” who turned to bitcoin and other digital currencies last year, aren’t so keen on the cryptocurrency anymore. “We’re just in one of those periods where the hype has died down,” McArdle said.

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