Trending Bitcoin News and Market Sentiment February 24th, 2020: DeFi Crypto Lending Soaring, New Jersey to Introduce New Crypto Businesses Bill



Bitcoin

  • Bitcoin surged just short of a key psychological mark with a daily high so far of USD 9,999
  • DeFi and crypto lending industries hitting new heights
  • New Jersey is introducing a new bill that would require crypto firms to apply for a state license to operate

 

Sunday proved to be a testing time, and Bitcoin price was just literally 1 dollar short of breaching the USD 10,000 key resistance level but is now trading at a slight dip from that high of USD 9,999 (CoinDesk). The psychology could be with the Bitcoin bears on Monday after this failure for a breakthrough by the bulls, but once more, we’re not seeing enough volume to suggest that the trend has changed for the long or even the medium term.

Altcoins are very much in tune with this Bitcoin stance, so we spend another day of waiting and seeing just hours before the Americas take over in trading.

One of the big items of news just fresh out is how decentralized finance (DeFi) is gaining broad strokes of positivity when one platform called Celsius Network released incredible growth numbers recently.

According to its own disclosed numbers, interest payments since December has more than doubled its interest paid out to users, which is one big sign of continuous growth in the lending crypto business. Its February report shows that more than USD 11 million in Bitcoin, Ether and other digital assets were paid out as total interest income, which is over 120% more than the USD 5 million reported on 12 November 2019.

A statement from CEO Alex Mashinsky read:

“The mission of Celsius is to leverage blockchain technology as a means to create a new kind of financial service that acts in your best interests and brings back the concept of high yield interest income. We are a members focused platform that is transparent, honest, and rewarding. That’s why Celsius stands alone among the other crypto players in the space.”

Apparently, more than USD 730 million is managed by the firm thanks to customer deposits and collateral for loans, up 62% from the last report’s USD 450 million total. Outstanding loans value has also racked up by 46% since November 2019 to a value today of USD 6.2 billion (based on crypto asset price currently), belonging to 75,000 users, 25,000 of which have come since November.

This is just one of the latest figures that show the DeFi industry to have been growing at pace, mostly providing crypto loans as well as those providing decentralized options based on the Ethereum network via the use of smart contracts and blockchain oracles..

More than USD 1 billion of funds are now locked in DeFi platforms, mostly as collateral with MakerDAO (MKR) that generates Dai (DAI), a decentralized stablecoin pegged to the US dollar.

Meanwhile, the US state of New Jersey is now considering a new amendment to legislation that would seek licensing as a prerequisite for crypto businesses to being operating in that jurisdiction. The Digital Asset and Blockchain Technology Act was introduced by Assemblywoman Yvonne Lopez.

If it becomes law, the new bill means an introduction of new requirements for virtual currency businesses, while creating protections that are consumer friendly, as crypto businesses would then need to make public their legally registered names. The legislation would appear to support Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) policies, as all crypto firms would get their licensing and legal history tracked at the State of New Jersey’s Department of Banking and Insurance.

Up to now, crypto operators without license in New Jersey have been tried through the Department of Justice at a federal level. But Lopez says these issues should be addressed at state level:

“People see and hear about [Bitcoin] in their day-to-day lives, but most are not quite sure what it is. We must take steps to protect consumers looking to invest in cryptocurrency, while also allowing the sector to continue to develop and expand in New Jersey… With this legislation, consumers will be better-informed of the risks involved when investing in virtual currency.”

The bill would mean that crypto firms must tell consumer accounts full Terms and Conditions, and offer Federal Deposit Insurance Cooperation (FDIC) protection on all deposits, much like traditional bank accounts. Applications would have to show a full fee schedule plus risk assessments.

 

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