Silvergate-IPO: Californian bank wants to expand business with customers from crypto space

Banks do not necessarily have to be crypto-hostile. On the contrary, more and more banks are seeing the positive implications of blockchain technology, including for the tokenization of assets. This includes the Californian Silvergate Bank. According to a report on the Xconomy news site, the bank is planning a US$ 50 million IPO. Silvergate intends to use the capital increase to expand its services for customers in the crypto ecosystem.

Crypto currencies and Bitcoin secret have therefore become the cornerstone of our business

Californian bank Silvergate is rapidly transforming itself from a traditional credit institution into a global pioneer in the institutional management of Bitcoin secret crypto assets. Although the official SEC application for the IPO does not provide any details on the exact use of the new capital, Silvergate only talks about investments in “organic growth and basic corporate purposes”. In view of the bank’s explicit crypto affinity, however, an expansion of crypto services is more than likely.

Silvergate has been in the middle of the crypto sector since 2013. As Xconomy reports, CEO Alan Lane contracted the crypto virus at the time and has kept the bank on course ever since. In 2014 Silvergate was able to win the Digital Currency Group (DCG), an important holding company from the crypto ecosystem. DCG invests in crypto start-ups and holds shares in the news site CoinDesk. The fact that the bank has been focusing on customers from the crypto ecosystem for so long gives it an enormous competitive advantage:

“Our ability to define these markets as a target group over the last five years provides us with an enormous first mover advantage in the area of digital currencies”.

Financial infrastructure increasingly important for cryptosoft companies

Obviously, the bank has hit a nerve with its focus on companies from the cryptosoft sector, because despite the bear market, the number of its customers is growing rapidly. Here is the review by onlinebetrug. Silvergate has a total of 483 customers (as of 30 September) in its crypto sector. Compared to the previous year, the bank recorded an increase of 323 per cent in this area. This is stated in the IPO document. All crypto customers together deposited approximately USD 1.7 billion with Silvergate.

Silvergate’s core business differs from traditionally oriented financial service providers in that it does not focus on traditional lending. Instead, the bank concentrates on the deposit of non-interest-bearing investments, which it then invests with other financial institutions.

The majority of traditional credit institutions are passive to hostile to crypto-space, to say the least. Meanwhile, however, more and more institutions are seeking to escape to the front.

The most important example in this country is probably Bitwala. As reported by BTC-ECHO, Bitwala will probably open Germany’s first BaFin-compliant blockchain account in November.

Bitcoin back on the plus side: Ethereum, Ripple & Co. follow suit

Bitcoin: The price of the leading crypto currency by market capitalization is back in positive territory. The same applies to almost all Altcoins in the top 100. The Ripple, Ethereum and EOS prices can thus make up almost ten per cent.

After a sustained downward spiral, the Bitcoin share price will recover somewhat on Monday, November 26. It has thus risen by almost nine percent in the last 24 hours. Satoshi Nakamoto’s crypto currency is currently 4,092 US dollars.

Not only the Bitcoin revolution: Almost all Altcoins rise in price

Bitcoin revolution, too, is currently trying to fight the kink in the course. With a plus of ten percent, the XRP price is currently at 0.38 US dollars. According to our price pages, the “bank coin” is currently in second place among the crypto currencies with the highest market capitalization:

Ethereum, the supercomputer project led by Vitalik Buterin, recorded very similar price increases. At 9.7 percent, the Ether exchange rate currently stands at 117 US dollars and is still in third place.

Even Bitcoin Cash, which suffered a lot in the course of the Hash Wars, was able to make up some ground in the course of the share price. With seven percent plus, BCH currently stands at 184 US dollars.

EOS, the project under the patronage of, was able to climb to currently 3.39 US dollars within the last 24 hours. The crypto currency number five has thus risen by almost eight per cent.

Only two losers in the top 100
Currently, almost all crypto currencies under the top 100 are in plus. The Undertaker QASH and Dai are the only tender losers. QASH lost 0.11 percent of its share price and now stands at just under 0.20 US dollars. The Stable Coin DAI is the brave loser of the last 24 hours with a minus of 1.27 percent. The crypto currency is now 0.99 US dollars per token.

The SIRIN LABS token recorded the strongest increase. The utility token increased by a whopping 97 percent and currently stands at 0.13 US dollars per token.

Technical Analysis of the Bitcoin revolution Course

As pleasant as the youngest bounce is: Currently Bitcoin revolution is still fighting. The long-term support marked in blue, which has lasted since the end of 2015 and is at the level of the moving average of the last 140 weeks, is currently fiercely contested. The oversold Bitcoin revolution promises a recovery, which the price is currently experiencing.

However, both the MACD and Aroon indicators continue to speak bearish language. On this basis, even after the 10-percent bounce, a short position is more likely, where the first support of 3,785.65 US dollars can be used as an entry point, the currently tested long-term support of 4,163.55 US dollars valid since 2015 as a stop loss and the moving average of the last 200 weeks at currently 3,126.07 US dollars as a target.

However, in order to assume a real reversal and dare a long position, a rise above the resistance at 4,538.01 US dollars is necessary. In this case, a first target would be at 5,571.12 US dollars and the stop loss at the moving average of the last 140 weeks, currently at 4,332 US dollars.

G20: Global tax standards as of 2020

Over the past few days, the finance ministers and central bankers of the G20 met for discussion in Argentina. One of the topics discussed was the regulation of Bitcoin & Co. Result: Crypto currencies are dangerous and interesting, global standards will come. Data will be collected by July.

Bitcoin enthusiasts expected the G20 meeting in Buenos Aires to be partly restless. The imminent regulation or the possibility of banning crypto currencies is causing panic in the markets again and again. Now all the FUDlers can breathe a sigh of relief. As the summary of the meeting shows, the finance ministers and central bankers of the G20 countries do not really know how to deal with crypto currencies.

The words they found for Bitcoin & cryptosoft fluctuated between warning and slight enthusiasm

“We recognise that cryptosoft innovation […] has the potential to enhance the efficiency and inclusiveness of the financial system and the economy. But cryptosoft assets also raise questions about consumer and investor security, market integrity, tax evasion, money laundering and terrorist financing.”

What is particularly striking about the closing statement is the choice of words. The team of experts deliberately calls Bitcoin & Co. “crypto-assets”. The English word for capital or asset indicates that one is not dealing with currencies. In a further statement, they also stress that crypto currencies do not fulfil the functions of “sovereign currencies”.

International standards for crypto trader will not come until 2020

The financial experts ultimately shift responsibility to the FATF. The Financial Action Task Force has rules to combat money laundering and terrorist financing. These should ultimately also apply to Bitcoin & crypto trader – together they want to work on further standards. This should result in a globally valid regulation – which, however, remains to be seen for the time being. Why regulation can make sense with regard to crypto trader can be read here.

Until final regulations are reached, the market will probably be allowed to develop more or less freely for the time being (the outcome of the conference does not ultimately protect against national regulations). In the last sections of their summary, finance ministers and bankers announce that there will be no global tax standards before 2020. However, an update will be released in 2019, with data to be collected by July of this year in order to agree more precisely on how best to regulate.

As it became known, the OSCE also made a statement to the ministers and central bankers in this context. The statement also calls for a joint initiative in common taxation, especially with regard to crypto currencies. See below for more details.

During the conference, in addition to the participating ministers and central bankers, the Organization for Security and Co-operation in Europe (OSCE) also promoted joint taxation and further co-operation in the field of crypto currencies. In a report sent to the participants in the Confrence, the OSCE suggested further co-operation and development in the face of increasing importance and lack of transparency.

In concrete terms, the report states that tools and co-operation mechanisms are already being developed and that corresponding studies are being conducted on the tax consequences of crypto currencies and distributed ledger technologies. The latter could be used to overcome the lack of tax transparency.