TraM details, CSD progress, Market Makers and much more!
Check out our weekly “This Week in Crypto” summary in our blog post or watch the full video here.
Those coins do not violate the FATF rule. The exchange onboards people and take KYC (or they should). The travel rule says that the information behind the owner of the account, needs to be transferred to the financial intermediate that the exchange is sending to. That’s it. Privacy coins don’t stop that from happening.
Having said that, Kevin mentioned a long time ago that exchanges will delist these privacy coins. Regulators don’t like that these privacy coins make everything anonymous. They will have a tough time on regulated exchanges for the next year or two.
FATF can’t oblige a single Crypto exchange to do this, but the countries can adapt these rules and look to police them.
This is moving money from one exchange to another. Move funds to an external wallet owned by yourself, and then transfer them to an exchange, and the travel rule doesn’t apply.
Lazy solution. Lots of these going around. Fund already exist, you tokenize it, the tokens are the rights to the underlying funds. It’s just adding a layer of complexity to an already complex and very antiquated system.
WFC of this week.
Small news, expanded hugely. Paxos Stablecoin, regulatory consent – what it got was essentially that it was legal under the framework that currently exists in the US. BUSD is a carbon copy-paste of the Paxos USD Stablecoin that’s whitelabeled for Binance.
Even with stablecoins, we will get to a point where we need some type of standardization. What’s the point of having 100 different stablecoins? The only real thing we need is a decentralized and asset-backed token that can replace USD.
IOTA became kinda the car chain, doing chains and different projects for car manufacturers, automation and things like that. Definitely makes sense, they found a niche. Good on them for finding a niche, because it has gotten them a lot of business.
They may not see success in the retail markets, but there are companies like SAP, Qualcomm, companies that the majority of retail customers have no idea who they are. More protocols need to do this to remain relevant.
What is the risk that you might become more motivated to continue with the CSD without CoinMetro?
There’s no risk. CoinMetro was here first, and has a very bright future. CoinMetro will be doing many things the CSD won’t. And CoinMetro is required in many instances, in order for the CSD to gain traction and actually see growth. As the CSD grows, CoinMetro grows with it.
Kevin’s motivation won’t change. CoinMetro is a big part of it.
What will you be doing at the International Bar Association Summit?
Kevin will be at a panel that discusses the pain points in capital markets, how technology can reduce those pain points, and how regulations and legal play into how the technology can do just that.
When can we expect TraM?
Coding is done, fixing bugs, UI/UX bugs, should all be done on Sunday.
The last step is the finance side, making sure that we have specific protocols on how we deal with risk, in terms of the collateral currencies, how we deal with liquidations when collateral is in different currencies, different things around these lines.
We will try to get it on demo/sandbox at that point, so we can continue checking bugs and testing it with the community, while finance continues working through making sure all our risks are as tight as they can be.
What happened to the 25+ currencies?
The provider originally said mid-September, now it’s mid-October. That’s when we will have access to the APIs and we have the ability to transact in these 25 currencies. Pushing to get the API documents before October so we have 15 days to integrate.
End of October would make sense if the provider is ready to go by mid-October.
When XCM burn?
XCM “burn” will happen right after TraM, as the UI/UX guys move to complete the website, our back-end guys will move to get the XCM “burn” online.
Why list more coins at this stage?
If we had listed nothing at this point, would you have come in here and said “it’s a good thing you haven’t listed anything, because no one would be trading it?”.
When we first started listing, we didn’t know what volume would or wouldn’t look like. Now we know that, right now, without marketing, that volume is low. We still need our banking partner to look at these new listings, and we need to keep that machine moving.
Market makers are coming, and will provide liquidity for these. That will help volume.
Is October secured or do funds only last September?
October is secured.
Can I use my XCM as collateral with TraM?
Yes, that’s essentially how the TraM works. You open a wallet that mirrors the trades, and you allocate collateral which is XCM.
Any faucets being planned to drive volume?
Constantly in discussions with different companies/groups that need fiat on/off ramps, that are looking to move large amounts of crypto in regulated environments. Some of those we can’t pursue, others are things we are pursuing. New ones have come into the playing field in the last couple of weeks.
Always something happening there.
In which way will the CSD affect the ETCF?
One way is that the CSD will be onboarding lots of different issuers which will allow CoinMetro to easily onboard those issuers as well to create more expansive and robust ETCF offerings.
Is there a conflict of interest if the exchange itself is the market maker?
Legally speaking – many regulated exchanges are market makers. It depends on how you market make. If your market making is simply there so that every time there’s a buyer there’s a seller and vice versa, there’s no conflict of interest. You’re helping make a market so that your clients can trade and not see slippage and see large spreads.
If you’re washtrading or doing something to move the market in a specific direction so that you can profit off of your clients’ losses, that would be a conflict of interest.
How is the CSD progressing?
Progressing nicely. We’re back and forth with getting agreements signed with the development teams. Development should start next week, and then we’re 4 months away from jumping into the sandbox.
When it comes to Montenegro in general, the sandbox, CoinMetro, we should have a preliminary application package on Tuesday, and we will provide some feedback on that package. By the end of next week, or the week after, that will be ready and we will apply and within two weeks we should be within sandbox, and at that point CoinMetro will have established a company and bank accounts inside Montenegro, offering everything we offer in Europe, plus tokenized securities.
As we move to the sandbox, we will add in functionality specific to those tokenized securities. Up to par reporting standards, onboarding tactics through CoinMetro Direct for primary issuances of regulated assets.
Sandbox is production, you can go there, open an account, trade, do everything – there will be limitations we set on ourselves, but it will be live.
Having a call with Brazil later today. We’re 4.5 weeks away from the end of the LOI timeframe.
Going over the financial mainly for the CSD, fine tuning the amounts that will roll in, and the percentages that will be offered in terms of equity on both sides. We’re already pretty far through that negotiation.
The next step will be to draft an official agreement, get it signed, and get the money in place.
Also still have the UK, not yet followed up with them, but will do so.
Since TraM is no longer a token, can you explain how it will work for working out Profit/Loss and tax?
This is not professional advice
Having the tokenized aspect likely made it more difficult. In that aspect, you’re looking at just an underlying portfolio that’s adjusting the token price. Here, the TraM manager, has a wallet, you have a wallet, it’s mimicking every trade.
At the end of the day, normally for tax preparation, trade by trade doesn’t matter, only the end P/L, and you will be able to pull a transaction history that will show the P/L, all trades that were made, any fees incurred. Should be straight forward.
What kind of track record/performance is required to become a TraM manager?
Anybody is allowed to open a private TraM, and you can advertise that with a link. It will not be listed on the website. We will have a vetting process that will be similar to what FXPig does. 3 months minimum, some other things as well. We will bring in algorithm traders initially that have a track record elsewhere that we can verify.
A roadmap is an estimation of how long it’s going to take you to develop a specific product and launch it to the public.
It’s a very high-level overview of a development cycle. It’s usually done before development starts, and as you move forward, they usually get adjusted.
Want to know more? Check for more details in the video below.
Get the complete scoop by tuning in to our audio version of last week’s TWiC on SoundCloud. Happy listening!
Well, that’s it for this week’s AMA with CoinMetro Founder Kevin Murcko! Please join us next week on CoinMetro’s Facebook and YouTube Channel at 12:00 (UTC) for another round and make sure you submit your questions to the CoinMetro subReddit!
As always, we’re available to answer any questions you may have on our Telegram Group 24/7.