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Chainalysis to Raise $100 Million at $1 Billion Valuation

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Chainalysis valuation and growth are not common in the crypto space as the $1 billion valuation is quite rare and particular for a blockchain data analytics service firm.

Blockchain analysis company Chainalysis is set to increase its valuation to $1 billion following its next scheduled Series C funding round that will come as early as next. According to a report by Forbes, the new Chainalysis funding round is set to be led by Addition, a new Venture Capital firm founded by Lee Fixel. According to Forbes, the Series C funding round which is set to raise Chainalysis valuation to $1 billion will also be backed by the firm’s early investors including Ribbit Capital, Accel, and Benchmark. 

Chainalysis has seen impressive growth in the past years and though Chainalysis Co-Founder and Chief Executive Officer Michael Gronager declined to give a snapshot of the firm’s earnings and revenues, Forbes projected that Chainalysis raised about $8 million in revenues in 2018. From Gronager’s confirmation that Chainalysis grew by 96% in the past year with earnings expected to double by 2021, Chainalysis is undoubtedly in a good place to turn a profit for its investors.

Chainalysis’s presence in the crypto space has been marked by the offering of data analytic services that helps to track fraudulent transactions bordering around cryptocurrencies. In describing its services, Chainalysis noted that it “provides compliance and investigation software to the world’s leading banks, businesses, and governments,” adding that its “experts in financial crime and blockchain analysis empower customers to derive insights they can act on.”

This bogus data analytics provision has drawn clients including the likes of payment service giant Square Inc (NYSE: SQ), and numerous government agencies. To date, Chainalysis clients have risen by 65% in the past year, and the firm’s 300 client base feature about 250 from the private sector and US government agencies accounting for about 30 according to Forbes.

“We’ve really shown that, that it’s possible to build a world-class business to business software as a service company by serving data in the crypto space,” says Gronager. “And really owning the data part of crypto,” which it is serving to its clients.

Chainalysis Valuation: Tale of Value and Expertise

Chainalysis valuation and growth are not common in the crypto space as the $1 billion valuation is quite rare and particular for a blockchain data analytics service firm. The impressive valuation Chainalysis is recording today takes deep roots from its role in serving value with its offerings.

As Coinspeaker reported back in August, Chainalysis published a report stating that investors moved about $50 billion in cryptocurrencies to avoid Beijing rules. Such reports help reveal the exact state of events in order to help appropriate actors know what to do, consolidating its transparency role in the space. Experts believe that with a greater level of transparency, the crypto sphere can draw more institutional adopters following the likes of MicroStrategy Incorporated (NASDAQ: MSTR) amongst others.

The brain behind the Chainalysis project, Michael Gronager, and Jonathan Levin is not just driven to use their expertise to drive the business and its offerings, they are also set to use the funds from this funding round to expand their staff, to include more developers.

“The way you make things scale today in a compliance department is not by adding ten people,” Gronager says. “But it’s by adding one developer.”

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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VanEck Launches Bitcoin-backed ETP in Germany

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VanEck has pushed out of the US into the European markets and, with favorable regulations, it expects to have a better embrace in the region where similar products are already available.

Investment management firm VanEck has successfully launched a bitcoin-backed Exchange Traded Product known as an Exchange Traded Note (ETN) on the Deutsche Borse Xetra exchange. According to a report by Funds Europe, the move by VanEck to launch the exchange-traded product (ETP) models that of other European Exchange Traded Fund Issuers who had made similar moves in the past.

According to the Funds Europe report, the VanEck ETP Bitcoin ETN has a total expense ratio of 2% and it will allow investors to gain exposure to Bitcoin (BTC) without having to purchase the premier digital currency themselves. “Today @vaneck_eu launched a #Bitcoin ETN. The ETN is physically-backed by Bitcoin and listed on Deutsche Böerse Xetra. Launching a Bitcoin ETP was a top priority for VanEck. We succeeded! VanEck hopes to serve many in Europe and Asia!” Gabor Gurbacs, VanEck’s digital asset strategist/director revealed in a tweet.

Gurbacs noted that the bitcoin-backed ETN is 100% physically backed meaning that any ETN invested in by an investor will be used to purchase the equivalent amount of Bitcoin. With professionally managed offerings, Gurbacs affirmed that the company’s ETN features transparent pricing with reliable investor protections.

The custody for the Bitcoins purchased through the VanEck ETP services will be offered by Liechtenstein-based crypto custodian Bank Frick. Frick will provide the Cold storage options for any deposited Bitcoin.

VanEck and Its Way to Bitcoin-Backed ETP Approval

The desire by VanEck to launch a bitcoin-backed ETP dates back to a few years ago when it made several attempts to launch the product in the US.

“Bringing to market a physical, fully-backed major exchange-listed bitcoin ETP was a top priority for our firm,” Gurbacs was quoted as saying. The United States Securities and Exchange Commission (SEC) has wielded its strong-arm into denying the VanEck the privilege of rolling out the product through a delay of crucial meetings and events where the decision to approve the application was to be made.

The haul has been a long one for VanEck. And the limited version of a Bitcoin exchange-traded fund which it launched as reported by Coinspeaker back in September 2019 has not seen so much success as it was only able to issue just 4 Bitcoins upon launch.

VanEck has pushed out of America into the European markets and with favorable regulations, it expects to have a better soft landing and embrace in Germany and the rest of Europe where similar products are already on offer.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.





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US Intelligence Chief Raises Concerns With SEC Over China’s Crypto Dominance: Report

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U.S. intelligence chief John Ratcliffe was reportedly seeking clearer regulation around digital currency.



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South Korea May Delay Crypto Income Tax Rule to January 2022

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South Korean lawmakers want to delay the implementation of the new rules in order to give more time to crypto exchanges to get ready.

South Korea may extend the implementation of its earlier proposed crypto income tax rule to January 2022, an extension of about 3 months from the earlier proposed October implementation plan. The plan to extend the implementation of the rule was revealed in a report published by a local South Korean media Dong-a Ilbo.

Per the reports, the lawmakers from the South Korean National Assembly’s planning and finance committee issued a report suggesting that it is necessary to consider enforcing the crypto income tax rule from at least January 1, 2022, in a bid to give enough allowance to cryptocurrency exchanges to put plans in place to implement the rules.

Dong-a-ilbo noted that the lawmakers look to hand out this allowance because cryptocurrency exchanges complained that they did not have enough time to adjust their books and develop the right crypto reporting tools to be able to comply with the tax rules.

Crypto Income Tax in South Korea

Earlier, Coinspeaker reported the South Korean proposal to levy a 20% income tax on crypto gains of 2.5 million Korean won, or about $2,000 due to the increasing rise of earnings on exchanges. Yonhap news agency said at the time:

“According to the data released by Rep. Park Kwang-on of the ruling Democratic Party, accumulated commission-related sales of some 30 cryptocurrency exchange operators are presumed to have reached 700 billion won [~USD$658 million] as of the end of last year, compared with an estimated amount of 8 billion won as of the end of 2016.”

To comply with this, South Korea put up the “Specific Financial Information Act” which details the timeline expected for exchanges to complete a reporting system slated for March next year, the completion of a Know Your Customer (KYC) procedure by September 2021 so that deposits and withdrawals can be adequately captured before the implementation which is slated to commence by Oct. Should the new extension be agreed on following the Subcommittee’s meeting to decide on a specific taxation time next week, crypto exchanges will have a 3-month window to get ready for the new crypto tax regime.

South Korea and Cryptocurrency Exchanges

South Korea is renowned for having zero tolerance for misdemeanor especially as it relates to cryptocurrency exchanges. South Korean authorities conducted about two consecutive raids on Bithumb cryptocurrency for alleged money laundering levied on the chairman of the board at Bithumb Korea and Bithumb Holdings Lee Jung-hoon.

The clampdown on Bithumb spurred the exchange to give itself up for sale with China-based cryptocurrency exchange Huobi Global among the top outfits to take over the exchange. Apparently, the zero-tolerance of South Korea on situations of money laundering and tax fraud is unacceptable, a position that may allow the country to give the concerned parties the needed allowance to adjust to the changes that are set to come.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.



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