Bitcoin Daily: U.S. And Canada Probe Crypto Scams, Vanguard Predicts Likely Bitcoin Crash

Bitcoin Daily

MF Chain has a new cryptocurrency payment solution for merchants, the company said in an announcement. And, by integrating with supported cryptocurrency wallets through an application programming interface (API), the system doesn’t require users to utilize a proprietary wallet.

After merchants determine the amount of a purchase, they enter the total amount, including tax, into the company’s app. The app then converts the total cash due into the appropriate amount of cryptocurrency. When it comes time for consumers to pay, they simply scan a QR code to complete the payment process.

In other news, state securities regulators in the U.S. and Canada have announced that they’re cracking down on crypto scams, Reuters reported. Regulators are looking into initial coin offerings (ICOs) and unregistered securities offerings in an operation dubbed “Operation Crypto-Sweep.”

Through a task force, regulators have opened 70 investigations in the operation, as 35 investigations enforcement actions are pending or have already occurred. In some cases, regulators have issued cease and desist letters to alleged scams.

“The actions we’ve taken to date are just the tip of the iceberg,” North American Securities Administrators Association (NASAA) President Joseph Borg told Reuters. “You’re going to see in this space a lot more collaboration and cooperation going forward.”

And the chief economist at Vanguard thinks a “decent probability” exists that bitcoin will be worth zero in the future, CCN reported. But Joe Davis believes the technology that underpins the cryptocurrency has potential.

“I’m enthusiastic about the blockchain technology that makes bitcoin possible,” Davis said. “In fact, Vanguard is using such technology. As for bitcoin the currency? I see a decent probability that its price goes to zero.”

Furthermore, Davis believes that bitcoin isn’t really money, as it doesn’t serve as an effective store of value. In addition, he said the cryptocurrency’s valuation is based on speculation, and not a country’s economy.

“National currencies derive their prices from the underlying economic activity of the countries that issue them,” Davis said. “Cryptocurrency prices, on the other hand, are generally not based on economic fundamentals. To date, their prices have depended more on speculation about their eventual adoption and use.”


New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.