The top daily news from the cryptocurrency and blockchain space:
- Facebook executive accidentally shares the GlobalCoin whitepaper details.
- ‘Severe price crash’ sees Poloniex incur mass margin loan defaults.
- Five government enforcement agencies cracking down on cryptocurrencies.
At the time of writing, bitcoin (BTC) and ether (ETH) are trading at $7,805.7 (+0.1%) and $246.9 (+0.6%), respectively. As for the MVIS CryptoCompare Digital Assets 10 Index, it is currently tracking at 3,879.1 (+1.0%).
Facebook Exec Mistakenly Shares Key GlobalCoin Details
Per reports from German magazine WirtschaftsWoche, Facebook’s head of financial services and payment partnerships for northern Europe, Laura McCracken, let slip key details of the social media giant’s not-yet-launched cryptocurrency.
Talking to a reporter at Money20/20 Europe earlier this week, McCracken revealed the whitepaper of Facebook’s much-discussed cryptocurrency will be published on June 18. The cryptocurrency itself, she went on to detail, will be pegged to a basket of currencies rather than a single one like the U.S. dollar. TechCrunch revealed last night it had received a request for a June 18 news embargo from a communication manager for Facebook’s hundred-plus strong blockchain team.
Poloniex Reports Margin Lending Problems
Circle-owned cryptocurrency exchange Poloniex announced that “on May 26, a sudden, severe price crash in the [Clams (CLAM)] market caused a number of margin loans to default, resulting in a roughly 1800 [bitcoin] BTC generalized loss in the Poloniex BTC margin lending pool.” In today’s pricing, 1800 BTC equals over $13 million.
On Poloniex, it is possible for margin traders living outside the U.S. to collateralize their loans with any cryptocurrency available for lending, even if it’s a cryptocurrency with low liquidity. In their announcement, Poloniex told readers that, in an effort to “protect lenders,” they had decided to remove margin trading for four cryptocurrencies: BitShares (BTS), Factom (FCT), MaidSafeCoin (MAIN), and, of course, CLAM.
On May 26, a sudden, severe price crash in the CLAM market caused a number of margin loans to default, resulting in a roughly 1800 BTC loss in the Poloniex BTC margin lending pool for non-US customers.
— Poloniex Exchange (@Poloniex) June 6, 2019
‘Five Eyes’ Agencies Crack Down on Cryptocurrency Tax Evasion
The Australia Taxation Office (ATO) is investigating 12 tax avoidance schemes as a part of a broader international investigation by the Joint Chiefs of Global Tax Enforcement (J5). One of the targeted schemes is reportedly a global financial institution and its intermediaries. The J5 is exploring other firms that have used cryptocurrencies to assist entities evade taxes.
The J5 was established a year ago by leaders of tax enforcement authorities from the U.S., Canada, Australia, the Netherlands, and the U.K. in the wake of the Panama Papers and Paradise Papers document leaks. It exists to promote increased collaboration between agencies in an attempt to combat transnational fiscal and financial crime.