Welcome to the final installment of The Daily for 2018. It seems fitting that the year’s ultimate edition should focus on one of 2018’s overarching themes within the cryptoconomy – stablecoins. We’ve also got space to squeeze in a critique of Augur’s crowdsourced prediction market and to consider yet another bitcoin-based Patreon alternative.
Also read: 1 in 7 Chinese Have Invested in CryptocurrencyRegulated Stablecoins Attract Ire
Regulated stablecoins such as USDC, PAX, and GUSD have become increasingly popular through the latter half of 2018. These dollar-pegged coins, which are promoted as a more clearly audited take on tether (USDT), require corresponding fiat deposits for each token in circulation. One trader has ran into trouble, however, when trying to redeem his PAX tokens for fiat currency, with the story provoking mixed reactions from the crypto community. CCN first reported on the trader, who was asked a plethora of questions by Paxos, the issuer of the PAX stablecoin, when cashing out.
While such companies are obliged to perform compliance checks, the scope and depth of the questions posed has taken many observers by surprise. Among other things, Paxos sought to determine the owners of the PAX that were being redeemed as well as information about the individual’s trading strategy. As crypto lawyer Stephen Palley pointed out, though, the fact that numerous transactions were set to cash out just under $10,000, in a bid to escape enhanced scrutiny, may have ironically been what triggered Paxos’ interest.Multiple transactions valued at a few dollars less than $10k on the same day. Yeah. Good luck. https://t.co/O...