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⚡BTC Acknowledged as Currency in China🤑

Croxroad

27 Sep 2023 — 6 min read

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⚖️ Bitcoin Achieves Legal Milestone in Shanghai

In a nutshell, the Shanghai No. 2 Intermediate People's Court in China has officially acknowledged and accepted Bitcoin as a special and one-of-a-kind digital asset. They also recognized that Bitcoin is limited in supply (scarce) and has intrinsic value. This recognition is a significant development, as it underscores Bitcoin's uniqueness and value in the eyes of the legal system in Shanghai, China.

A Chinese court released a report on September 25th that talked about how the internet is evolving. In the report, they pointed out that as internet technology advances, digital currencies like Bitcoin become particularly distinctive and cannot be easily duplicated. They emphasized that in a vast sea of digital currencies, Bitcoin stands out as something different and exceptional compared to other digital assets. Essentially, they highlighted Bitcoin's unique position in the digital currency landscape due to its special characteristics.

In a recently released report by a Chinese court on September 25th, Bitcoin was singled out for its distinct qualities in the context of evolving internet technologies. The report emphasized that as internet technology advances, digital currencies like Bitcoin become increasingly unique and resistant to replication. It further highlighted some of Bitcoin's exceptional properties, such as its limited supply (scarcity) and its capabilities as a functional currency, including scalability, ease of use in transactions, storage, and global acceptance. Remarkably, the report noted that despite its decentralized nature and absence of central authority control, Bitcoin continues to gain worldwide recognition and adoption.

The recent judicial report recognizing Bitcoin's status and unique characteristics as an asset class is a significant step towards legitimizing Bitcoin and other digital currencies in China. This recognition is noteworthy because, despite an overall ban on cryptocurrencies in China, the legal argument that treats bitcoins as personal property has been gaining substantial support and recognition within local Chinese courts.

The recent acknowledgment by one of Shanghai's prominent courts is notable given the Chinese government's generally unfriendly stance towards Bitcoin. In 2021, China implemented a comprehensive ban on all cryptocurrency-related activities, including Bitcoin mining. Nevertheless, various courts across the country have been affirming the legal status of Bitcoin and other digital assets, granting them protection under the law as legitimate properties.

In a report covered by Cointelegraph on September 1st, a People’s Court in China conducted an evaluation of the legal status of virtual assets and scrutinized their characteristics under criminal law. The report concluded that digital assets meet the criteria to be recognized as legal property and, consequently, are entitled to legal protection. This recognition signifies an important legal development for virtual assets within China.

🍄 BTC Insurance Provider AnchorWatch Raises $3 Million in Investment

AnchorWatch, a top insurance company that focuses on protecting Bitcoin owned by businesses, shared some exciting news today. They successfully raised $3 million in funding. Ten31 led the investment round, and they had some other well-known backers like Axiom BTC, Bitcoin Magazine Fund, Timechain, and Bitcoin Opportunity Fund. This new money will help AnchorWatch meet the necessary regulatory standards and financial demands. It's a big step towards launching their Trident Vault software, which is designed to enhance Bitcoin security, and also to offer specialized insurance policies for people who own Bitcoin. In a nutshell, they're getting support to make Bitcoin safer and more accessible for everyone.

AnchorWatch's Trident Vault software is a fresh and inventive solution for safely storing Bitcoin. It's unique because it combines protocol-native custody (which means it's closely integrated with the Bitcoin network) with top-notch, regulated insurance coverage. This fills a significant gap in the Bitcoin market by offering BTC owners more confidence and security.

Trident Vault is specifically created for businesses to use. It simplifies how remote teams manage Bitcoin, introduces a system where some key holders have more authority, and includes features like time-locked spending conditions. All of these elements help improve compliance and governance when dealing with Bitcoin transactions on the blockchain. In short, it's a tool that makes managing Bitcoin holdings for businesses more efficient and secure.

According to Robert Hamilton, who is the co-founder and CEO of AnchorWatch, Bitcoin owners currently face a simple but challenging decision: either handle everything themselves (self-custody) or trust a single third-party custodian to manage their assets. However, relying solely on third-party custodians has had its share of problems, such as high-risk trading or, in some cases, outright fraudulent activities that have led to significant losses for customers. This has made people hesitant to fully depend on commercial custodians to deliver the services they promise.

AnchorWatch offers a practical solution by making the ownership and safekeeping of Bitcoin straightforward, secure, and verifiable. They do this through collaborative custody, which involves two important methods. First, their Trident Vault system supports assisted custody by holding a portion of the keys and incorporating governance and compliance measures at the protocol level. This approach enhances security by spreading the responsibility for safeguarding Bitcoin across different physical locations and unrelated entities. This diversification helps protect against various risks, including those from events like fires, floods, and both internal and external theft attempts. In essence, AnchorWatch aims to provide a more reliable and secure way for Bitcoin owners to manage their assets.

AnchorWatch has another essential feature: they integrate regulated property insurance directly into their Trident Vaults. This insurance is designed to protect assets in case of catastrophic events, and it's regulated and backed by collateral. Thanks to the advanced security measures in Trident Vaults, AnchorWatch can offer this insurance at competitive rates.

Jonathan Kirkwood, the Managing Partner at Ten31, emphasized how significant AnchorWatch's approach is. He explained that AnchorWatch is not only creating the technical infrastructure to advance Bitcoin's potential as programmable money but also establishing the necessary legal and financial framework for commercial institutions to hold Bitcoin securely through their insurance offerings. This development is a crucial step that aligns directly with Ten31's mission to make Bitcoin a viable asset for institutions. They are investing in companies like AnchorWatch that are leading the way in innovating within the Bitcoin ecosystem. In essence, it's a move towards making Bitcoin more accessible and secure for businesses and institutions.

🍂 The Falling Three Methods

The "Falling Three Methods" is a pattern you might spot when looking at a chart that shows the price of something like a stock or cryptocurrency. It's a sign that a downtrend, where prices are generally falling, is likely to keep going.

First, you'll see a long red candle on the chart, which means the price has been dropping quite a bit.

Then, you'll notice three smaller green candles in a row. These green candles might seem like a small upward movement, but they're all shorter than that big red one.

Lastly, you'll see another long red candle, which shows that the downtrend is back, and prices are falling again.

The crucial part here is that those three little green candles are completely within the big red ones. This tells you that even though there was a brief attempt by buyers to push prices up, it didn't have enough strength to change the overall trend. So, the Falling Three Methods pattern suggests that the sellers are still in control, and the downtrend is expected to continue.