blockchain.com

Blockchain.com suspends its asset management subsidiary launched in April: Report

The timing of opening the subsidiary was unfortunate, a spokesperson told Bloomberg, although the company held up to the crypto winter for quite a while.

Cryptocurrency financial services company Blockchain.com will suspend operations of its asset management subsidiary, according to a Bloomberg report published March 9. The service had existed less than a year and appears to be the latest casualty of the crypto winter.

The subsidiary, known as Blockchain.com Asset Management, is based in London. It applied to be removed from the United Kingdom companies register on March 5. The application itself is dated Feb. 15. The company had not yet filed its first annual account.

Blockchain.com Asset Management was opened last April in partnership with Altis Partners, which was to manage its portfolios using Blockchain.com technology. It promised to offer “regulated crypto investment products for institutional investors, family offices and high net worth individuals.”

scoop: @blockchain has suspended its asset management arm, moving to shut down the unit exactly 11 months after it launched. in that time, the firm cut hundreds of jobs and saw its valuation potentially slashed to a fraction of its former $14bn size

on Terminal now, web soon pic.twitter.com/PhaKP0a6mk

— Emily Nicolle (@emilyjnicolle) March 9, 2023

Blockchain.com, which was founded in 2011, opened the new subsidiary just after a funding round that raised its valuation from $5.2 billion to $14 billion. Standard Custody & Trust Company was named the custody partner for the new subsidiary also in April. A spokesperson told Bloomberg:

“Blockchain.com Asset Management launched in April 2022, shortly before macroeconomic conditions deteriorated rapidly. With crypto winter now approaching the one year mark, we made the business decision to pause operating this institutional product.”

Blockchain.com did not immediately respond to a Cointelegraph enquiry.

Blockchain.com saw several landmarks during the crypto winter. It received registration in several countries in the course of 2022. It also entered into a custody agreement with Anchorage Bank along with other trading platforms in June, and partnered with Visa to issue a crypto card in the United States in October.

Nonetheless, according to Bloomberg, the company laid off 260 employees in 2023. In February, rumors emerged that it was in talks with other crypto firms about selling some of its assets or subsidiaries. A Blockchain.com spokesperson denied those rumors to Cointelegraph.

No businesses are for sale, says Blockchain.com

Financial services firm Blockchain.com doesn’t deny recent efforts to raise capital but disputes claims about selling assets.

Cryptocurrency exchange and financial services firm Blockchain.com has denied attempts to sell assets or subsidiaries, and it is not in talks with other crypto firms about possible deals, a spokesperson told Cointelegraph on Feb. 18.

According to reports citing anonymous sources, executives of the company discussed selling parts of its business to other crypto firms, including Coinbase, between December and January. Blockchain.com refutes the rumors:

“No Blockchain.com businesses are for sale. Blockchain.com is an asset buyer, not a seller.“

The company, however, has been working on raising additional capital for its operations since October 2022, even at a significant discount to previous valuations. At the time, the round was expected to result in a $3 billion to $4 billion valuation, according to a Bloomberg report. The potential round would help Blockchain.com to navigate the crypto bear market better.

Blockchain.com doesn’t deny the efforts to raise capital but disputes claims about selling assets. The company’s venture arm recently exited an 80% position at PolySign, a startup working on infrastructure for financial institutions.

About 110 employees from Blockchain.com, or 28% of its staff, were laid off in January, just a few months after the company downsized its headcount by 150 in July 2022 following a loss of $270 million on loans made to the bankrupted hedge fund Three Arrows Capital (3AC).

Blockchain.com claims to have over 37 million verified clients using 86 million wallets and a presence in 200 countries. In March 2022, the company secured new funding led by global venture capital firm Lightspeed Ventures and investment management firm Baillie Gifford & Co, bringing its valuation to $14 billion from $5.2 billion.

Previous funding includes a $300 million Series C round in March 2021 led by DST Global Partners, Lightspeed Venture Partners and VY Capital, as well as $120 million from a wide array of venture capital firms.

Still bullish: 40% of survey respondents plan to buy crypto in 2023

Despite a challenging year for the crypto industry, nearly 40% of respondents indicated a plan to purchase cryptocurrencies like Bitcoin in 2023.

Despite the gloom of the ongoing cryptocurrency winter, coupled with the failures of crypto giants like FTX, the community appears to remain bullish on crypto, according to a new survey.

Crypto markets saw a massive sell-off in 2022, with the total market capitalization plummeting nearly 70% since Bitcoin (BTC) reached its all-time high at $69,000 in November 2021.

But this didn’t prevent investors from buying more cryptocurrency, with 41% of respondents telling Blockchain.com in an online survey that they purchased crypto in 2022.

The study, titled “Crypto Confidence: A Survey on Investor Sentiment,” was conducted between Nov. 28 and Dec. 9 and released on Dec. 22. The firm polled more than 40,000 people globally who visited the Blockchain.com Explorer website, which is one of the world’s largest crypto websites in terms of traffic.

According to the survey results, a significant number of people are also willing to continue to buy cryptocurrency next year. Despite a challenging year for the crypto industry, nearly 40% of respondents indicated a plan to purchase cryptocurrencies such as Bitcoin in 2023.

Additionally, about 40% of respondents said they will talk about crypto around the holiday table this season, which is considered to be a sign of growing awareness.

Apart from general investor sentiment, the survey also provides some geographic insights, noting that Brazil, Nigeria and Ghana are becoming the most bullish countries.

Fifty percent of respondents from Brazil said they bought crypto in 2022, with 50% also planning to buy digital coins next year. Fifty percent of Nigerians said they purchased crypto this year, while as many as 60% of Ghanaian respondents said they expect to buy crypto in 2023.

In contrast, Germany and Italy emerged as some of the most skeptical countries in terms of investor sentiment toward crypto. Only 31% of Italian respondents said they purchased crypto this year, with 29% planning to purchase it next year. Just 34% of respondents from Germany bought cryptocurrency in 2022 and 30% plan to do so in 2023.

Blockchain.com partners with Visa to offer crypto debit card

The launch of the new crypto debit card follows the announcement of similar products from FTX and BitOasis.

Crypto exchange Blockchain.com has partnered with Visa to launch a crypto card, available to only United States residents initially, which allows users to pay using their crypto or cash balance wherever Visa debit cards are accepted.

In an Oct. 26 announcement, Blockchain.com revealed that there would be no sign-up or annual fees, no transaction fees and users would earn 1% of all purchases back in crypto.

In a Yahoo Finance interview, Blockchain.com CEO Peter Smith said the card already had 50,000 signed onto a waiting list, noting:

“There’s still a lot of demand for crypto products, but you’re seeing that demand shift away from trading and more towards folks that are interested in using DeFi, using their balances.”

Following the announcement, Visa’s head of crypto, Cuy Sheffield, pointed out that worldwide acceptance is necessary for crypto adoption to continue to grow.

The card is powered by California-based payments company Marqeta, which helped develop crypto finance firm Swipe’s crypto visa card in September 2020.

The announcement follows news that Visa has partnered with crypto exchange FTX to roll out a debit card to 40 countries on October 7.

MasterCard partners with BitOasis

On Oct. 25, Visa’s main competitor Mastercard signed onto a strategic partnership with BitOasis, the leading crypto platform in the Middle East and North Africa (MENA), to launch a series of crypto card programs designed to facilitate the adoption of digital assets in the region.

BitOasis customers will be able to link their wallets to the new card and convert crypto into fiat to enable the use of Mastercard’s global merchant network, with the card expected to launch in early 2023.

The co-founder and CEO of BitOasis, Ola Doudin, sees a huge potential for adoption within the area, noting:

“We continue to witness sustained demand amongst our customers for crypto to be integrated into, and relevant, for their daily lives. Research tells us that 47% of the Middle East population now believe crypto is the future of money.”

The partnership follows a $30 million Series B funding round from BitOasis which closed in October 2021. The funding facilitated the expansion of its Dubai-based platform into MENA.

Blockchain.com closes crypto custody for Russians amid EU sanctions

Blockchain.com will soon shut down accounts of Russian nationals, while companies like Binance are also working to apply the new EU sanctions.

Crypto wallet provider Blockchain.com is the latest company to soon cease to provide services to Russian nationals due to the latest sanctions by the European Union.

Blockchain.com has notified its users that it’s going to shut down accounts of Russian nationals in two weeks, the local news agency RBC reported on Oct. 14.

According to the report, Blockchain.com will allow Russian users to withdraw their funds until Oct. 27, 2022. After that date, the accounts of Russian nationals are reportedly going to be blocked.

The statement emphasized that Blockchain.com is currently prohibited from providing custodial and reward services to Russian citizens in line with the EU’s eighth package of sanctions against Russia.

Unlike previous sanctions, which only limited Russan-EU crypto payments to around $9,700, or 10,000 euros, the latest package puts a blanket ban on cross-border crypto payments between Russians and the EU. The new sanctions were imposed on Oct. 6.

Blockchain.com’s services are not limited to custodial services. Blockchain.com also runs a noncustodial wallet, which ideally is designed to allow users to fully control their assets while the company has no access to the wallet’s data. In addition to the noncustodial wallet, Blockchain.com also runs custodial trading accounts, which allow users to buy and sell crypto on the platform.

It remains unclear whether Russian customers will be able to retain access to their noncustodial wallets on Blockchain.com. The firm did not immediately respond to Cointelegraph’s request for comment.

Blockchain.com is not the only platform to halt some services to Russians amid the latest sanctions. Major blockchain developer Dapper Labs also suspended Russian accounts due to the EU’s latest sanctions against Russia and its nationals.

Many other major exchanges and peer-to-peer platforms, including Crypto.com and LocalBitcoins, are planning to restrict services for Russian nationals in line with the sanctions as well. “We are fully compliant with EU sanctions,” a spokesperson for Crypto.com told Cointelegraph.

Starting Oct. 7, P2P exchange LocalBitcoins stopped offering Russian users its services, including both trading as well as wallet services, chief marketing officer Jukka Blomberg told Cointelegraph. “As a result of the 8th EU-wide sanction package, we unfortunately have to restrict the Russian customers’ activity completely on the LocalBitcoins platform,” he said.

Blomberg noted that the Russian trade volume was about 8% of the firm’s total volumes in September 2022. Russia was once the largest LocalBitcoin market, accounting for 19% of all total BTC trading volumes on the exchange on monthly basis in 2020.

Binance, one of the world’s largest crypto exchanges, is no exception. The firm is working around the clock to apply the new restrictions for Russians as well. “Changes like these take time to implement as we have to carefully coordinate with multiple tech and risk management partners,” a spokesperson for Binance told Cointelegraph.

Some exchanges, including Tether’s sister firm Bitfinex, previously opposed crypto sanctions against regular Russian people. “Our view is that the actions of a government do not necessarily represent the wishes of individuals,” Bitfinex chief technology officer Paolo Ardoino said in March 2022. He added that Bitfinex was willing to protect the accounts of all its customers “unless otherwise directed by the regulatory authorities” by which they are governed.

Dubai grants regulatory approval for Blockchain.com office: Report

The Virtual Assets Regulatory Authority of Dubai has previously given approval for Crypto.com, OKX and FTX subsidiaries to offer crypto-related services in the emirate.

Blockchain wallet and cryptocurrency exchange platform Blockchain.com has reportedly secured regulatory approval from Dubai’s Virtual Assets Regulatory Authority, or VARA.

According to a Friday report from Reuters, VARA signed an agreement which will allow Blockchain.com to open an office in Dubai. The crypto firm currently operates several offices in North America, Europe, South America, and Singapore.

Great work by the team here – Dubai ✅✅https://t.co/8nQm8w8y3g

— Peter Smith (@OneMorePeter) September 9, 2022

Since Dubai’s prime minister and ruler Sheikh Mohammed bin Rashid Al Maktoum announced the establishment of the crypto regulator and an accompanying law in March, VARA has granted approval for Crypto.com, OKX and FTX subsidiaries to offer crypto-related services in the emirate. In July, Al Maktoum also launched a metaverse strategy that aimed to bring more than 40,000 virtual jobs to Dubai by 2030.

One of the oldest Bitcoin (BTC) infrastructure firms and headquartered in London, Blockchain.com is also aiming toward regulatory approval in Italy, France, Spain, and The Netherlands. In August, the Cayman Islands Monetary Authority officially authorized Blockchain.com to operate an exchange and provide custodial services. After a March funding round, the crypto firm was reportedly valued at $14 billion.

Cointelegraph reached out to Blockchain.com, but did not receive a response at the time of publication.

Blockchain.com wins registration next to parent firm on the Cayman Islands

Blockchain.com is working to seek registrations in countries like Italy, France, Spain, The Netherlands and cities like Dubai.

Blockchain.com, one of the oldest Bitcoin (BTC) infrastructure firms, is strengthening regulation and compliance efforts by securing registration in the Cayman Islands.

The blockchain wallet and cryptocurrency exchange platform Blockchain.com is expanding operations in the Cayman Islands after receiving registration from the Cayman Islands Monetary Authority (CIMA).

Issued on July 6, the registration officially authorizes Blockchain.com to provide custodial services, operate an exchange and offer over-the-counter crypto brokerage services for institutional clients under the CIMA’s regulatory framework.

Blockchain.com’s chief business officer Lane Kasselman pointed out that the Cayman Islands is an important jurisdiction for the company’s business as the local community and regulators have fostered a “robust blockchain business ecosystem.”

Kasselman also told Cointelegraph on Tuesday that the Cayman Islands is the home of Blockchain.com’s parent firm, Blockchain Group Holdings, stati:

“Cayman Islands is a key jurisdiction for us — our parent company is domiciled there and it is a recognised global financial services hub.”

The latest registration is part of Blockchain.com’s broader commitment to global compliance and regulation in every jurisdiction of the platform’s presence, including the United States. It also intends to help Blockchain.com further support institutional clients, which account for roughly 50% of the firm’s revenue.

Headquartered in London, Blockchain.com currently holds money transmitter licenses in the majority of the U.S. states and continues to pursue more regulatory approvals in the country. The firm is also working to seek registrations in countries like Italy, France, Spain, The Netherlands and cities like Dubai.

“As we expand globally, it’s even more important to seek regulatory approvals in key markets to demonstrate our commitment to compliance, work with regulators on thoughtful oversight, and slowly build towards the ultimate goal — a permanent regulatory framework for crypto,” Kasselman said.

The news comes amid the increasingly expanding global regulation efforts of crypto companies, with many industry companies receiving new registrations and approvals worldwide daily.

The aggressive compliance efforts are coming amid the ongoing bear market for crypto as Bitcoin has stayed below its all-time high above $68,000 for nearly nine months so far. According to many experts, Bitcoin and the broader crypto industry needs more regulation to make assets less volatile.

Blockchain.com’s chief business officer is also confident that regulation is a key component of the industry’s success. He said that moving from a startup ecosystem to a “forever industry” requires taking regulation seriously, learning how to compromise and valuing the efforts of policymakers, adding:

“The only way to achieve a permanent regulatory framework for crypto is for industry leaders and regulators to work together to ensure consumer protection and investor trust.”

In March 2022, Blockchain.com raised millions of dollars in a funding round from the venture capital firm Lightspeed Ventures and investment management firm Ventures and Baillie Gifford & Co. The funding reportedly increased the company’s valuation from $5.2 billion to $14 billion.