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JPMorgan and Goldman Sachs declined involvement in Libra cryptocurrency due to fears it could be used for criminal acts, The Wall Street Journal reported. Libra is Facebook's move into cryptocurrency, which it announced in June. Many of Libra's backers have already dropped out, including Visa, Mastercard, and PayPal. Visit Business Insider's homepage for more stories. JPMorgan Chase and Goldman Sachs declined Facebook's invitation to join Libra because of worries that cryptocurrency could be used to violate money laundering and sanctions laws, AnnaMaria Andriotis, Peter Rudegair, and Liz Hoffman at The Wall Street Journal reported. Facebook hoped to launch Libra by June 2020 with over two dozen cofounders and members of the Libra Association, but these plans have been unraveling since the project was announced early this summer. Facebook did not immediately respond to Business Insider's request for comment regarding J.P. Morgan and Goldman Sachs' involvement. Lawmakers have had concerns about Facebook moving into the cryptocurrency world, especially after privacy snafus like the Cambridge Analytica scandal. In July, Facebook cryptocurrency chief and former Paypal president David Marcus was questioned about the project by the Senate Committee on Banking, Housing, and Urban Affairs. He promised that the company wouldn't launch Libra until regulators' concerns were addressed.  Read more: Facebook made the unusual decision to push back directly on Elizabeth Warren and her criticism of the company, but its attempt to defend itself backfired spectacularly In July, Rep. Maxine Waters and other lawmakers sent a letter to Facebook calling on the company to stop Libra implementation over "serious concerns" about the project. Increased regulatory scrutiny spooked many of the project's backers, and more than a quarter of initial partners have backed out, including PayPal, Mastercard, Visa, and eBay. These criticisms also come amid worries that Facebook and other big tech companies are monopolies without sufficient competition. Democratic presidential candidate Sen. Elizabeth Warren has made breaking up large tech companies a cornerstone of her platform. Facebook CEO Mark Zuckerberg is slated to testify before Congress — which will include critics like Waters — about Libra on October 23.SEE ALSO: TikTok hired former US lawmakers to review its content policies after facing backlash and accusations of censorship Join the conversation about this story » NOW WATCH: How Area 51 became the center of alien conspiracy theories […]

David Marcus, the head of Facebook's Libra cryptocurrency project, has defended the project's feasibility after multiple major backers cut ties. Speaking to Yahoo Finance, Marcus said Libra was "absolutely not" in jeopardy, adding that the project is "going to get harder before it gets easier." On Monday, the 21 partner companies involved in Libra formally established the charter and governing council for the Libra Association. A quarter of the project's 28 founding backers have now abandoned the project, including major payment processing firms like PayPal, Visa, and Mastercard. Visit Business Insider's homepage for more stories. Facebook is on the defensive after a swathe of major firms abandoned the Libra cryptocurrency project in the past week. In an interview with Yahoo Finance, Facebook's Libra head David Marcus defended the feasibility of the project, insisting that Libra was "absolutely not" in jeopardy, while admitting that the project is "going to get harder before it gets easier." And he told Bloomberg that he "totally respects the fact that those businesses and those leaders have a responsibility to their shareholders, employers and stakeholders." He said the project is "going to move forward," and reaffirmed the plan that the Libra Association — the group of firms interested in developing the Libra cryptocurrency — will eventually have 100 members. Marcus's comments come at a critical juncture for the Libra project. Seven of the Association's twenty-eight founding members have now abandoned it, including big hitters like PayPal, Visa, Mastercard, eBay, and Stripe. Latin American online payments platform Mercado Pago and US online travel firm Booking Holdings have also cut ties. Read more: Facebook's Libra cryptocurrency plan just got formalised, but a quarter of its backers have now dropped out The Association's 21 remaining members include Facebook, Spotify, Uber and Lyft. On Monday, those firms agreed upon the association's charter and its leadership council, formally establishing the Libra Association. That 21-member council also appointed a five-person board of directors, which includes Marcus. As well as losing key backers, the Libra project has faced increased regulatory scrutiny in recent weeks. On Monday, Libra's newly appointed deputy chairman Dante Disparte told The Financial Times that regulatory barriers would likely delay the cryptocurrency's proposed 2020 launch. US President Donald Trump has said Libra "will have little standing or dependability," while Democratic Congressperson Rashida Tlaib reportedly asked if Facebook was trying to create a "crypto mafia" by setting up the Libra Association. Marcus has previously been outspoken in his defence of the project. In a tweet on Friday about the exits of Mastercard and others, he wrote: "I would caution against reading the fate of Libra into this update. Of course, it's not great news in the short term, but in a way it's liberating. Stay tuned for more very soon. Change of this magnitude is hard. You know you're on to something when so much pressure builds up."SEE ALSO: eBay, Mastercard, Visa, Mercado Pago, and Stripe all cut ties with Facebook's Libra Association Join the conversation about this story » NOW WATCH: 7 lesser-known benefits of Amazon Prim […]

Apple co-founder Steve Wozniak is concerned how global governments will regulate cryptocurrencies going forward.  While speaking at the Nordic Business Forum in Helsinki on Wednesday, Wozniak said he's "very much afraid" countries will "only want control" as cryptocurrencies spread, according to Bloomberg.  The comments come as advocates are battling to legitimize cryptocurrencies and government are trying to determine how to regulate them.  Visit the Business Insider homepage for more stories. Steve Wozniak is worried about the future of cryptocurrency regulation.  The Apple co-founder said during a speech at the Nordic Business Forum in Helsinki on Wednesday that he's "very much afraid" that as cryptocurrencies spread, "countries will only want control, because countries make their money controlling their currency," according to a report from Bloomberg.  "We're going to see a little bit of a revolution in that sense, and regulation, very tight regulation," Wozniak added.  Bloomberg also reported that Wozniak said he only supports novel blockchain solutions that are improvements from existing technologies such as the decentralized network ledgers system because "if it's kind of like another way to own a share of something. He added: "It's unquestionable who owns what, you can't have phony trading."  Wozniak is a known supporter of blockchain-based currencies. In late 2018, he co-founded EQUI Global, a venture capital firm that issues investors a digital currency called EquiTokens. His comments also come as central banks around the world are assessing the impact of cryptocurrencies on financial markets, and advocates are trying to legitimize the technology.  Facebook CEO Mark Zuckerberg is expected to testify in front of Congress regarding the social media giant's new cryptocurrency initiative called Libra. Federal Reserve Chair Jerome Powell and President Trump have both expressed concerns about Facebook's push into crypto.  Read more: A group of small tech stocks is quietly dominating the FANGs after lagging behind for years. Here's why a Wall Street expert is convinced its gains are just getting started.Join the conversation about this story » NOW WATCH: Most hurricanes that hit the US and Caribbean islands come from the same exact spot in the world […]

Bitcoin sank below $8,000 per token early Monday, hitting its lowest level since early June. The world's most traded cryptocurrency has fallen roughly 31% from its yearly high of $12,921, though global recession fears and asset selloffs have played to bitcoin's favor in recent months. Investors have used the digital token as a hedge against common assets, as it's less tied to geopolitical tensions than stocks and bonds. Watch Bitcoin and other cryptocurrencies trade live here. Bitcoin fell below $8,000 per token early Monday, reaching a low not seen since June. The world's most traded cryptocurrency slipped as low as $7,831.92 before paring its losses and rising above the $8,000 threshold. Read more: Facebook's cryptocurrency push takes a big hit as PayPal cuts ties with Libra Bitcoin has dropped roughly 31% from its yearly high of $12,921 in late June. The asset has seen short recoveries from its early 2019 lows, as gears of recession have recently played to the cryptocoin's favor. Some investors have used the token as a hedge against more common investments, since the token isn't as tied to geopolitical tensions as stocks or bonds. The token climbed above $12,000 in early August after China allowed its currency to fall below a critical psychological level, signalling a prolonged trade conflict between it and the US. Bitcoin traded at $8,044.77 per token as of 8:25 a.m. ET Monday, up roughly 116% year-to-date. Now read more markets coverage from Markets Insider and Business Insider: Here's why you still can't get a raise, even with unemployment at a 50-year low Stocks are dropping after China reportedly signals it will take a tougher stance in trade-war talks this week Meet 2019's Rising Stars of Wall Street shaking up investing, trading, and dealmaking Join the conversation about this story » NOW WATCH: What El Chapo is really like, according to the wife of one his closest henchman […]

Blockchain startup Block.one will settle with the Securities and Exchange Commission for $24 million to resolve allegations of conducting an unregistered initial coin offering. The company allegedly sold cryptocurrency tokens to investors without adhering to securities laws, and didn't provide investors with disclosures they were entitled to, the SEC said in a statement. Block.one is "committed to ongoing collaboration with regulators and policy makers," the company said in a statement. The company neither admitted nor denied the agency's findings. Visit the Business Insider homepage for more stories. Blockchain startup Block.one will settle with the Securities and Exchange Commission for $24 million after being charged with conducting an unregistered initial coin offering. The company, which has operations in Virginia and Hong Kong, held an ICO between June 2017 and June 2018, according to an SEC statement. The offering landed in the midst of the crypto boom, and the startup brought in "several billions of dollars" in the 900 million coin offering, including a portion from US investors. The tokens issued were sold on the Ethereum blockchain, according to Block.one. Block.one didn't register its ICO as a securities offering and didn't seek an exemption from relevant laws, the agency noted. "Block.one did not provide ICO investors the information they were entitled to as participants in a securities offering," SEC Division of Enforcement co-director Steven Peikin said.  "The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions." Read more: Dan Fuss is revered as 'the Warren Buffett of bonds.' He walked us through the investing approach that's delivered market-beating returns and turbocharged his 61-year career. The crypto startup noted it is "committed to ongoing collaboration with regulators and policy makers" as digital assets grow in popularity around the world. Block.one neither admitted nor denied the agency's findings. "We will continue to fight for the development of our industry to achieve as much alignment around policy and best practices as possible," the company said in a statement. The SEC began a greater look at ICOs and cryptocurrencies in 2017, as the deals often fell outside of existing securities laws. Cryptocurrency offerings have slowed as regulation increased and coin prices plummeted from their record highs in December 2017. Now read more markets coverage from Markets Insider and Business Insider: Airbnb reportedly opts for direct listing over traditional IPO ahead of 2020 market debut Charles Schwab says it will cut online stock and ETF fees to zero — and all the major brokers are getting clobbered YouTube star Alisha Marie uses Instagram direct messages to land brand deals. Here are the DMs she sends.Join the conversation about this story » NOW WATCH: What El Chapo is really like, according to the wife of one his closest henchman […]

North Korea, along with Russia, Venezuela, and Iran, have all pursued cryptocurrencies, largely as a means to circumvent sanctions. That development illustrates the shortcomings of the board sanctions the US has slapped on those countries and shows why the US's "maximum pressure" can ultimately be self-defeating, writes Willis Krumholz. Visit Business Insider's homepage for more stories. North Korea claims that it is creating its own cryptocurrency. Bitcoin and other cryptocurrency prices fell on the news—at least briefly—because if North Korea is developing its own cryptocurrency, that may reduce its demand for existing cryptocurrency options. This tells us something about the importance of bitcoin and other cryptocurrencies to North Korea. And American policymakers would do well to understand why North Korea is so heavily involved in these encrypted digital currencies, and the implications of their involvement. North Korea's new digital currency will be "more like bitcoin or other cryptocurrencies," said Alejandro Cao de Benos, who is both a North Korean official and a Spanish national long fond of the despotic regime. "We are still in the very early stages in the creation of the token," he added. "Now we are in the phase of studying the goods that will give value to it." How do cryptocurrencies work? Normal financial transactions are centralized. When you write a check to someone else, for example, your check is used by that other person's bank to go to the Federal Reserve and withdraw money from your bank's account at the Fed. Because the transaction flows through the Federal Reserve, which acts as an intermediary, this is a centralized ledger: The Fed stands between the two banks and acts as a neutral party in their transactions. Bitcoin, on the other hand, is a computer code that allows a decentralized payment ledger. Bitcoin's computer code keeps track of who owns what and when all on its own. It does this by incentivizing owners of computing power to "solve" a mathematical equation each time a bitcoin changes hands. Once that mathematical equation is solved, a new set of code—which says who owns each bitcoin—is added to the previous set of code. This chain of code is called the "blockchain." And because no one person owns or single-handedly tracks the blockchain, the process of clearing and settlement has been democratized, and decentralized. This accomplishes two things. It removes counterparty risk, so the buyer and seller don't need to trust one another, and it removes third party risk—the owners of bitcoin don't need to trust the computers clearing and settling bitcoin transactions (though bitcoins can still be stolen from an exchange, which is a separate matter). This decentralization is incredibly valuable to a sanctioned country like North Korea. America's sanctions power flows from the dollar being the world's reserve currency, and the power this gives the American banking system. Because the US government controls the Fed, which controls the dollar, the US government has sway over a large portion of international transactions. Because doing business with North Korea means getting cut off from access to dollars and the US (and therefore global) banking system, any bank or company wishing to stay above board must avoid North Korea altogether. Yes, bitcoins can be tracked, especially when sent through regulated exchanges. But it is much harder to track cryptocurrencies than it is to track dollars. And using cryptocurrencies helps North Korea circumvent the American-centric financial system that gives America its sanctions power. The limits of 'maximum pressure' That's why North Korea has long used bitcoin to dodge sanctions. For example, North Korea makes money via hacking, and cryptocurrencies help North Korea launder that money and put it to work for other uses. Aside from talking up moves to create its own digital currency, the rogue state held its first ever blockchain and cryptocurrency conference in April. Meanwhile, Russia, Venezuela, and Iran have a similar interest in cryptocurrencies—all for the purpose of sanctions evasion. The implication for America is that this cat-and-mouse game makes economic sanctions campaigns hard to sustain—and it increases the cost on the US of employing such coercive measures. The more Washington resorts to broad sanctions—not targeted on specific regime officials or entities but at a foreign economy more generally—the more countries like North Korea, and even our European allies, will develop means of evasion. Aside from this, sanctions are usually ineffective at achieving their desired goals. But the efficacy of broad sanctions is just one reason why Washington should use the blunt force of broad sanctions far more sparingly than it does. The other reason? US politicians and officials seem to think that using sanctions is a win-win. They are wrong. Over time, sanctions power wanes. Overusing sanctions, especially broad sanctions, encourages countries to build their own institutions and systems outside of America and the dollar. In this way, sanctions chip away at dollar dominance, threatening to severely reduce US power. There's already proof of this, and cryptocurrencies used by Russia, Iran, and North Korea are but one piece of this equation. Already, China is buying Iranian oil priced in Chinese renminbi (RMB) rather than petrodollars. Russia, while selling China natural gas, has agreed to issue RMB-denominated bonds. And even Europe has examined ways to escape US secondary sanctions to buy oil from Iran, keeping it in the JCPOA. None of this should be taken to mean the dollar's dominance will soon end—but it won't be the world's reserve currency forever. Abusing sanctions hastens this inevitable decline. Broad, "maximum pressure" sanctions erode US dominance. Just like using missiles or troops, there are consequences for the overuse of sanctions, often unseen or difficult to measure. Let's hope Washington policymakers figure this out before it is too late.SEE ALSO: North Korea is getting better at evading 'maximum pressure' — and it's bringing in more cash in the process Join the conversation about this story » NOW WATCH: Vitalik Buterin created one of the world’s largest cryptocurrencies in his early twenties — here’s how he did it and why […]

France's minister of finance said on Thursdays that Facebook's Libra cryptocurrency cannot be allowed to operate in Europe while concerns persist about sovereignty, systemic financial risks and the risk of abuses. "In these conditions we cannot authorize the development of Libra on European soil," said Bruno le Maire at a meeting of the Organization for Economic Co-operation and Development. Visit Business Insider's homepage for more stories. Facebook's Libra cryptocurrencycannot be allowed to operate in Europe while concerns persist about sovereignty, systemic financial risks and the risk of abuses by a dominant market player, France's finance minister said on Thursday. The world's largest social media network announced plans in June to launch the new currency as it expands into e-commerce but Libra has come under fire from regulators around the world who fear it could destabilize the global financial system. The minister, Bruno Le Maire, did not spell out how France could keep Libra out of the 28-member European Union. He also said he had been in touch with both the incoming and outgoing heads of the European Central Bank about setting up a "public digital currency" under the aegis of international financial institutions. Talking about the Libra project at a meeting of the Organization for Economic Co-operation and Development in Paris, Le Maire said: "This eventual privatization of money contains risks of abuse of dominant position, risks to sovereignty, and risks for consumers and for companies." The Group of Seven advanced economies warned in July that it would not let Libra proceed until all regulatory concerns have been addressed, saying that a prolonged discussion over the project may first be required. "Libra also represents a systemic risk from the moment when you have two billion users. Any breakdown in the functioning of this currency, in the management of its reserves, could create considerable financial disruption," Le Maire said. "All these concerns about Libra are serious. I therefore want to say with plenty of clarity: in these conditions we cannot authorize the development of Libra on European soil." In another setback this week for Libra, Switzerland said the proposed payments system could face strict rules that typically apply to banks, on top of tough anti-money laundering laws.SEE ALSO: Apple, Facebook, Amazon, and Google all skipped signing a letter from 145 CEOs urging the Senate to take action on gun control Join the conversation about this story » […]

European Competition Commissioner Margrethe Vestager said that regulators are examining Facebook's proposed Libra cryptocurrency. Vestager said in a speech in Norway that European antitrust regulators were looking at whether Libra will threaten competition.  While the Libra cryptocurrency is not yet available, Vestager said early scrutiny was justified. "We're looking at whether those proposals create risks for competition, so we can be ready to act swiftly if an intervention were to prove necessary," Vestager said. Visit Business Insider's homepage for more stories. EU regulators are examining Facebook's proposed Libra cryptocurrency to see if it harms competition, Europe's antitrust regulator said on Wednesday, the latest watchdog to voice concerns about the social network's move into financial services. European Competition Commissioner Margrethe Vestager said scrutiny was justified even though the new digital coin, to be backed by four official currencies and available to billions of Facebook's users around the world, has yet to be launched. "We can even look at new services even before they're introduced. That's what we're doing right now, with Facebook's plan for a new cryptocurrency, known as Libra, which it announced back in June," Vestager said in the text of a speech at a conference in Bergen, Norway. "We're looking at whether those proposals create risks for competition, so we can be ready to act swiftly if an intervention were to prove necessary," she said. Last month, she sent questionnaires to the 28 members of the Geneva-based Libra Association set up to govern the new currency, asking about the conditions for membership, according to an EU document seen by Reuters. The document also asked how Libra-backed products and services will be integrated into Facebook's platforms WhatsApp, Messenger, Instagram and Calibra, how the consumer data would be used and who would own it. Politicians, central bankers and regulatory watchdogs have in recent months sounded the alarm about Libra and the disruption risks to the global financial system and the possibility that it may be used for money laundering. Facebook could not immediately be reached for comment on Wednesday.SEE ALSO: Facebook's key partners on its cryptocurrency Libra are refusing to publicly support it Join the conversation about this story » […]

Cameron and Tyler Winklevoss — of Facebook founding fame — told CNN Wall Street is "asleep at the wheel" regarding cryptocurrency. When asked about governments' fears around digital coins like Facebook's upcoming Libra currency, Tyler said the concerns aren't "a unique problem to bitcoin or crypto." The twins launched the Gemini cryptocurrency exchange in 2015 with the goal of bringing regulation to the volatile assets. Tyler Winklevoss told Business Insider in April he hopes Gemini can serve as an "on-ramp" for institutional investors and banks to start using digital currencies. Watch bitcoin trade live here. Cameron and Tyler Winklevoss — who rose to fame with Facebook's founding — told CNN Wall Street is underestimating the potential of cryptocurrency. The two warned institutional investors are overlooking bitcoin and similar assets. The two noted that cryptocurrency retail investors have profited off recent gains while Wall Street misses out. "It's been a retail-driven market, from day one. It still is, and a lot of people have done really well," Tyler Winklevoss said. "Wall Street's asleep at the wheel." The twins have a history with endorsing the controversial asset class. Tyler said the two "believe in the long game" with bitcoin in a January Reddit comment, adding they "are committed as ever" to making a bitcoin exchange-traded-fund. The two even claimed in 2013 to own at least 1% of all bitcoin in existence. "We had to invest because we were afraid of missing out. We couldn't miss out on this future," Cameron Winklevoss told CNN. The two also addressed fears from government officials around Facebook's Libra cryptocurrency and bitcoin's use in illegal purchases. The concerns aren't "a unique problem to bitcoin or crypto," Tyler said, and are seen with fiat currencies just as often. "Smart criminals haven't been using bitcoin because its actually very traceable," he said. Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up. The Winklevosses announced their Gemini cryptocurrency exchange project in January 2015 with the goal of bringing regulation to the relatively lawless asset. The exchange established its own cryptocurrency — a stable coin pegged to the US dollar — and a mobile crypto-trading app in 2018. The two explained in April they want to bring digital currencies to mainstream financial institutions, and that increased regulation is necessary for such an endeavor. "We want to be that bridge and that on-ramp that gets the big mutual funds, hedge funds, and pension funds — all that big money — into the space," Tyler Winklevoss told Business Insider. "They are going to need a regulated bridge to do it." Though bitcoin remains well under its December 2017 peak of about 19,000 per coin, the digital asset has surged in recent months. Bitcoin traded at $10,322.79 per coin as of 1:25 p.m. ET Monday, up about 177% year-to-date. Now read more markets coverage from Markets Insider and Business Insider: Amgen will buy a blockbuster psoriasis drug for $13.4 billion — and it's part of a plan to get Celgene's mega-merger with Bristol-Myers Squibb approved 'Sorry! It's the way I negotiate': Trump suggests his whiplash strategy on the China trade war is here to stay How Instagram influencers land their first brand sponsorship deals Join the conversation about this story » NOW WATCH: The US women's national team dominates soccer, but here's why the US men's team sucks […]

Most of Facebook's key partners on its cryptocurrency project Libra are refusing to publicly support it. Since announcing Libra in June 2019, there has been intense regulatory pushback on the initiatives. Key backers like Mastercard, Uber, and PayPal are ignoring inquiries as to whether they are still committed to Libra. Business Insider reached out to the two-dozen-plus Libra Association members, and only two of them agreed to answer questions about their support. The lack of public support leaves Facebook isolated on the controversial project, and raises questions as to whether some partners may try to quietly drop out. In the face of intense regulatory pushback, the overwhelming majority of Facebook's partners on its Libra cryptocurrency project are refusing to publicly reaffirm their support for the effort. In June 2019, Facebook announced Libra — a plan for a new digital currency that would help enable online purchases and money transfers, and would be led by a consortium of dozens of different companies via a new non-profit organisation, the Libra Association.  More than two dozen organisations have signed up, including Mastercard, Visa, Uber, Spotify, and Vodafone — but there has since been strong backlash from lawmakers and regulators over Libra. US lawmakers have called on Facebook to impose a moratorium on development, and the European Union is reportedly investigating over antitrust concerns. Over the last month, Business Insider has reached out repeatedly to the Libra Association founding members, to gauge their reaction to the pushback and see if they remain on board with Libra. Some responded affirmatively, answering questions and shedding new light on the efforts. Some flatly refused to comment, even to confirm that they were still committed to the project. But most simply ignored repeated requests for comment entirely.  The lack of public support leaves Facebook largely isolated in trying to defend Libra, which it has insisted is a group effort. And it raises questions as to whether some companies, in the face of greater-than-anticipated pushback, may try to quietly drop out of Libra entirely. The Financial Times also reported on Thursday that two of the founding companies are "concerned about the regulatory pushback and were considering cutting ties." In an emailed statement, Libra's head of policy and communications Dante Disparte said all of Libra's founding members were still part of the project. "The 28 organizations that intend to become the initial founding members are currently working together to draft a charter and establish the guiding principles," he said. "Once the charter is ratified, we will be in a better position to comment on specific membership commitments. At this time, all of the initial 28 organizations are still participating in this process." Two companies enthusiastically engaged with questions about Libra Just two of the 28 founding organisations in the Libra Association agreed to answer questions about their support for Libra. A spokesperson for telecom firm Vodafone reaffirmed the project's mission, saying that "Vodafone strongly believes in financial inclusion and so we remain committed to the Libra Association, helping it to fully address the concerns of lawmakers and regulatory authorities." Working groups "to build upon the ideas shared in the white paper [that first announced Libra] are only starting now," he said, adding that no Libra members will enter a binding commitment or contribute their own funds until the Association's constitution is ratified, which is yet to happen. Of the pushback, the Vodefane spokesperson said: "Libra is a transformative and disruptive idea which we hope will significantly improve financial inclusion. As such, we expected a healthy level of discourse around the white paper. There are a lot of important details to get right before the launch." Humanitarian organisation Mercy Corps also answered questions, saying that they remained committed and welcomed the regulatory scrutiny. "This is a significant new initiative that requires critical questions and broad input from regulators and lawmakers to get right," a spokesperson said in an email. "We are particularly pleased that much of the conversation has touched on the deep challenges that prevent poor, marginalized and unbanked people from effectively participating in the global economy today. We hope to see more focus on how the current system is failing the needs of so many, and a continued focus on how Libra can and must work to create a system that better serves the needs of the marginalized, unbanked and those living in poverty." 5 organisations are committed, but unwilling to chat A handful of other companies said that they were still committed to Libra, but otherwise refused to talk about it.  Spokespeople for fashion company Farfetch, transport firm Lyft, blockchain company Coinbase, and investment firm Andreessen Horowitz all said they were on board — and declined to further comment or answer any questions about the reaction to Libra. Non-profit group Women's World Banking said it continued to work with Libra, but did not directly answer questions, instead saying in an email: "Our goal remains consistent — to see that all low-income women have access to and usage of the financial products and services they need to achieve security and prosperity. Being part of the Libra Association allows us to bring the needs of un- and under-served women in emerging markets to the table as the work of the Libra Association gets set up. We see the Libra Association as one additional potential way that we can put financial services in the hands of women who have traditionally been ignored by financial services." There is ambiguity around seven Other companies were ambiguous about the status of their involvement. Payments firm PayU responded saying "we are progressing this internally," without explaining what that means, or if they are still committed to Libra. A spokesperson for finance giant Visa declined to comment or reaffirm the company's commitment, pointing to its initial blog post announcing its involvement and CEO Alfred Kelly's remarks on an earnings call in which he said:"It's really, really early days and there's just a tremendous amount to be finalized. But obviously, given that we've expressed interest, we actually believe we could be additive and helpful in the association." Music streaming company Spotify also shared a link to a blog post it published about joining the Libra Association in June, and ignored subsequent inquiries as to whether it is still committed.  Blockchain firm Anchorage flatly refused to comment whatsoever. When we initially reached out to blockchain company Xapo, a member of the support team expressed the company's continued support for Libra, writing: "Xapo is a founding member of the Libra Association, bringing technical expertise to safely operate the Libra Network across the globe. We believe that Libra is a significant step towards our vision of digital money for everyone." However, subsequent follow-up emails seeking confirmation from the official press team were not responded to. We were unable to find a mutually agreeable time to talk with a spokesperson for non-profit Kiva, so their stance remains unclear. And we could not reach telecoms company Iliad. 13 more members are just refusing to engage Around half of all the organizations from the initial Libra announcement simply ignored repeated requests for comment.  Finance giant Mastercard, payments firm Mercado Pago, fintech company PayPal, payments platform Stripe, travel company Booking Holdings, online shopping platform Ebay, transportation firm Uber, blockchain company BisonTrails, science program Breakthrough Initiatives, investment firm Ribbit Capital, investment firm Thrive Capital, investment firm Union Square Ventures, and startup program Creative Destruction Lab all ignored multiple messages or emails asking about their continued involvement. Do you work at Facebook, or a Libra Association member? Contact this reporter via encrypted messaging app Signal at +1 (650) 636-6268 using a non-work phone, email at rprice@businessinsider.com, Telegram or WeChat at robaeprice, or Twitter DM at @robaeprice. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop. Read more: Instagram's lax privacy practices let a trusted partner track millions of users' physical locations, secretly save their stories, and flout its rules Mark Zuckerberg's personal security chief accused of sexual harassment and making racist remarks about Priscilla Chan by 2 former staffers Facebook says it 'unintentionally uploaded' 1.5 million people's email contacts without their consent Years of Mark Zuckerberg's old Facebook posts have vanished. The company says it 'mistakenly deleted' them. Join the conversation about this story » NOW WATCH: Watch SpaceX's 'most difficult launch ever' […]

New Zealand will legally allow companies to pay salaries in cryptocurrency starting September 1, becoming the first nation to do so, according to a Financial Times report. The country requires the preferred cryptocurrency to be pegged to a standard currency and directly convertible into a normal form of payment. This stipulation allows bitcoin to replace the New Zealand dollar on workers' paychecks. Companies paying workers in cryptocurrency can deduct income tax through the country's pay-as-you-earn plan. Visit the Markets Insider homepage for more stories. New Zealand has become the first country to legalize cryptocurrency salaries, according to a report Monday from the Financial Times. The country's tax agency ruled salaries and wages may be paid in cryptocurrencies so long as the preferred digital coin is pegged to at least one standard, or fiat, currency. New Zealand also requires that the crypto of choice be directly convertible into a standard form of payment. This allows bitcoin — the world's largest cryptocurrency by market cap — to serve as a form of payment for New Zealand workers when the law goes into effect September 1. The decision was originally filed in an August 7 note, which also detailed New Zealand's plans to allow for bonuses to be paid in cryptocurrency. The salary option will still fall under the nation's income tax scheme, and the ruling excludes self-employed workers from switching their income to cryptocurrency. The move brings the controversial digital asset further into the realm of everyday payment methods. Cryptocurrencies are relatively free of regulation, and their untrackable nature helped them grow popular with anonymous online purchases. The move serves as "another step towards governments recognizing that actually people are wanting to be paid in" cryptocurrencies, said Thomas Hulme, a solicitor at London-based law firm Mackrell Turner Garrett, to the FT. Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up. Cryptocurrencies are also considered a novel — and volatile — investment asset. Bitcoin currently trades at a 19-month high, surging as investors flee stocks on trade-war fears. It's still down about 42% from its record high price of nearly $20,000 per coin in December 2017. New Zealand's decision comes nearly two months after Facebook announced its own cryptocurrency, named Libra. Though the reveal stoked privacy concerns from investors and government officials alike, the tech giant's interest in digital currency added new legitimacy to the technology. Now read more markets coverage from Markets Insider and Business Insider: An RBC analyst was just charged with insider trading barely a year after finishing undergrad Goldman Sachs CEO: The chance of recession is 'still relatively low' 'We see everything that happens': Real-estate data is changing the game —execs at Cresa, Niido, and other firms explain whyJoin the conversation about this story » NOW WATCH: Nxivm leader Keith Raniere has been convicted. Here's what happened inside his sex-slave ring that recruited actresses and two billionaire heiresses. […]

Bitcoin topped $12,000 for the second time in three days on Wednesday as risk assets fell on fears of a global recession. The cryptocurrency is acting more and more like a safe-haven asset where investors seek refuge when other assets fall. Even though bitcoin is itself a volatile asset, some experts argue it's shielded from some of the geopolitical news that moves other markets.  Watch Bitcoin trade live on Markets Insider.  Bitcoin rose more than 2% Wednesday, breaking the $12,000 level for the second time in three days. The gains come as traders seek refuge as global risk assets sell off on worries that global recession is on the horizon. US stocks sank on recession fears Wednesday just two days after turning in their worst day of 2019. Bonds rallied, with the yield on 30-year Treasurys sinking near record lows. Other safe-haven assets also boomed as gold topped $1,500, a six-year high.  "The recent Bitcoin rally strengthens the argument for Bitcoin as a store of value," Ken Xuan, a data scientist at Fundstrat, said in a note Monday. Bitcoin also topped $12,000 briefly on Monday after markets sank when China let the yuan fall below a key psychological threshold versus the dollar. The nation also said it would stop buying US agricultural products to retaliate against the threat of further US tariffs. Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up. Bitcoin is mimicking a safe-haven asset because its correlation with other assets more linked to geopolitical news has diminished, Thomas Lee of Fundstrat wrote in a note. He noted that the cryptocurrency is becoming less tied to the US dollar, while its adherence to equity performance has also decreased in 2019. Meanwhile, bitcoin has gotten more closely correlated with gold over the last 100 days, according to Fundstrat. Because bitcoin is decentralized and operated by a distributed network as opposed to a central bank, it is less likely that its price could be fixed, Sky Guo, CEO of Cypherium, told Markets Insider in an interview.  "It's harder to manipulate the circulating supply, and that's why some people think it is a safe haven," Guo said. To be sure, Bitcoin is still facing tailwinds, especially over the next four to six weeks, Lee wrote in an earlier note. Risk of regulatory action spurred an 18% fall in July after US lawmakers criticized Facebook's digital coin, Libra, which raised concerns about the overall legitimacy of crypto. But still, the "crypto winter" is likely over, Lee says. Bitcoin is up roughly 215% this year, though it's far below its highest price near $20,000 set in 2017. Join the conversation about this story » NOW WATCH: Animated map shows where American accents came from […]