Blockchain Daily News – Edition 148, 13.02.2018
February 13, 2018
Blockchain Daily News – Edition 150, 15.02.2018
February 15, 2018

Blockchain Daily News – Edition 149, 14.02.2018

Blockchain Daily News

by Florin Oprea

Edition 149, 14.02.2018

New Beginnings In Global Financial Markets: Signal Of Crisis Or Maturity?

Florin Oprea, Decebal Todarita & Jeff Kutler – Linkedin Pulse

We are now seeing a certain correlation between the financial markets and the crypto markets, with the large movements in the financial markets being followed by prices in the crypto markets. However, the rush to legalize this segment, the sustained effort of all US agencies, and the involvement of the US Treasury in this move, suggests that the action could be the result of an urgent request from capital markets players.

FAO: Have you read our opinion on last week’s market volatility and what this could mean for the future of the cryptoverse?

Fans’ Section

Crypto Trading Ban Downplayed by South Korea After Backlash

Sam Kim & Kanga Kong – Bloomberg (subscription)

South Korea’s government gave the strongest signal yet that it will allow cryptocurrency exchanges to keep operating in the country, a welcome development for traders who had feared an outright ban in one of the world’s biggest markets for digital assets.

FAO: Of course, giving away all the business to others? Didn’t think so… Tax revenues from crypto trading and mining ops could represent a huge boost for any government around the world, not just South Korea’s. BTW, remember that recent report saying Japanese crypto investors are facing up to 55% tax on their crypto trading activity?

South Korea Is Considering a New Licensing System For Cryptocurrency Exchanges

Eli Meixer – Fortune

In a turnaround from its hardline approach to Bitcoin and other cryptocurrencies, South Korea is mulling a licensing system to help regulate the country’s virtual currency exchanges. Authorities may introduce a system based on the Bitlicense model, developed in New York, but a final decision isn’t expected until June.

FAO: We could end up to even seeing a global regulatory framework concerning crypto much sooner than we thought. Remember that France & Germany will present a joint bitcoin regulation proposal at the next G20 summit – more here.

ECB’s Draghi Says Not His Job To Regulate Bitcoin

Francesco Canepa – Reuters

Bitcoin’s Key Problems Illustrated By The ECB, In One Simple Chart

Mark Decambre – MarketWatch

The European Central Bank has a pretty clear message about the No. 1 virtual currency in the world: not our problem.

In what appears to be a general service note on its website, the ECB outlines all the most nagging issues that bitcoin harbors, according to the central bank, notably focusing on its use as a highly speculative asset and its flaws as a legitimate currency.

DNT: If BTC it’s not ECB problem, why it’s so much concerned to point out its weaknesses?  

FAO: ECB seems to adopt an interesting strategy…Instead of fighting bitcoin, the king of cryptos, it chooses to diminish its features, to “ignore” it, to prove it doesn’t exist as a currency…but still, it exists. So, what is it then? Super Mario says it’s not his job to regulate it. THANKS GOD!

Few Americans Reporting Cryptocurrency Trading To IRS For Now

Anna Irrera – Reuters

Less than 100 people out of the 250,000 individuals who have already filed federal taxes this year through company Credit Karma reported a cryptocurrency transaction to U.S. tax authorities, the company said.

FAO: Pay your taxes! Until their low. Better pay them now, you never know what Uncle Sam is going to do…

Cryptocurrencies

Cryptocurrency Price Manipulation Is ‘Unavoidable,’ Lon Wong, Head Of Crypto Firm NEM Says

Ryan Browne – CNBC

Price manipulation in the cryptocurrency space is “unavoidable” but will disappear once the market has matured, the head of cryptocurrency firm NEM said.. “Price manipulation is not something new. You see it in mainstream markets as well. We are in a very nascent, growing phase of our industry and these things are unavoidable,” Lon Wong, president of NEM said.

FAO: Lon Wong is right. This is at least one of the reasons we need regulation.

Litecoin Is Sliding After Its First Competing Fork Is Announced

Graham Rapier

Litecoin was down 2.2% Tuesday morning – alongside most other major coins – after the cryptocurrency’s first hard fork, Litecoin Cash, was announced by an unaffiliated organization.Litecoin holders will receive 10 tokens of litecoin cash for every one litecoin they own, the newly minted Litecoin Cash foundation said.

Exchanges & Trading Venues

Coincheck Users Pull $373 Million In First Chance Since Hack

Yuji Nakamura & Hideki Sagiike – Bloomberg (subscription)

Coincheck Reports To Regulators Over Cryptocurrency Heist As Investors Withdraw $373 Million

Thomas Wilson &  Taiga Uranaka – Reuters

Japanese cryptocurrency exchange Coincheck under pressure to better safeguard investors after the daring theft of $530 million (£381 million) of digital money last month, said it had filed a report with regulators on the hacking.

FAO: Messy, very messy, read below…

Cryptocurrency Traders To Launch Lawsuit Against Coincheck On Thursday – Lawyer Hiromu Mochizuki

Thomas Wilson – Reuters

A group of cryptocurrency traders will file a lawsuit against Coincheck on Thursday over last month’s theft of $530 million (£382 million) in digital money from the Tokyo-based exchange, Hiromu Mochizuki, a lawyer representing the claimants said.

CSE Aims To Be Canada’s First Blockchain Platform For Trade Clearing & Settlement

Barbara Shecter – Financial Post

The Canadian Securities Exchange is aiming to create competition in securities clearing and settlement using blockchain technology.

Vendors

Bitcoin Energy Use In Iceland Set To Overtake Homes, Says Local Firm HS Orka

Chris Baraniuk – BBC

Iceland is facing an “exponential” rise in Bitcoin mining that is gobbling up power resources, a spokesman for Icelandic energy firm HS Orka has said. This year, electricity use at Bitcoin mining data centres is likely to exceed that of all Iceland’s homes, according to Johann Snorri Sigurbergsson.

FAO: One of the reasons is the fact that Iceland has a very small population – aprox. 340,000 people. But it’s a good topic to hype, right?

BitPeople

Telegram App Was Targeted By Crypto Mining Malware, Kaspersky Lab Says

Reuters Staff  – Reuters

Previously undetected malware directed at users of the desktop version of the messaging app Telegram has been discovered by the Russian security firm Kaspersky Lab.

FAO: The software has been used to target Russian users…

Bitcoin Industry Grapples With Age-Old Problem Of Inheritance

Nate Lanxon – Bloomberg

A U.S. man has spent years trying to untangle the legal mess he found himself in after his 26-year-old son, an early miner of Bitcoins, died in a plane crash

Regulation

South African Reserve Bank Plans To Regulate Cryptocurrencies, Possibly FinTech

CNBC  (Statement by The South African Reserve Bank)

The South African Reserve Bank has a responsibility to promote a sound and effectively regulated financial system. The SARB therefore takes a balanced approach to technological innovations, considering the potential benefits and risks of each innovation. It is against this background that the SARB recently established the FinTech Programme to strategically assess the emergence of FinTech in a structured and organised manner, and to consider its regulatory implications.

FAO: Unlike others, they didn’t say it’s not their job…

Associations & Federations

Bitcoin Companies Form First UK Trade Body As Regulators Circle

Matthew Field – The Telegraph (subscription)

Seven of the largest crypto companies are forming a UK cryptocurrency trade body, bringing in the first self-regulation for the wild west sector worth £290 billion.

Events

Cryptocurrency Investors Flock To Puerto Rico Investment Summit

Nick Brown – Reuters

Puerto Rico’s annual investment summit, a two-day conference to woo investors to the bankrupt U.S. territory and the first since Hurricane Maria devastated the island, sported some new faces, particularly from the fast-growing cryptocurrency world.

Africa FinTech Summit August 16-17 2018 – Accra, Ghana – Agenda here

FAO: I am one of the speakers at the event, you can check the entire list of speakers here. Please note that I am building up my agenda for 2018 – if you want me as a speaker at your events better get in touch before my year gets uber busy – contact me here.

Analysis

JPMorgan Report: Crypto Could One Day Help Diversify Portfolios

Annaliese Milano  – CoinDesk

Cryptocurrencies could one day help investors diversify their equity and bond portfolios, analysts for JPMorgan Chase wrote in a new, 71-page research report focused on the tech.

The report, entitled “Decrypting Cryptocurrencies: Technology, Applications and Challenges” was drafted by the bank’s Global Research unit.

FAO: Really? Aren’t they already? What does your boss have to say about this? Ah, right, he’s not talking about bitcoin anymore…

Baidu Jumps Aboard The Blockchain Bandwagon

Leo Sun – The Motley Fool

Chinese tech giant Baidu recently jumped aboard the blockchain bandwagon with a digital puppy adoption service called “Leci Gou” — a homonym which combines the English phrase “Let’s Go” with “gou”, the Chinese word for dog.

Other news

BitConnect Again? DavorCoin Price Dives After Lending Site Shutdown

Stan Higgins  – CoinDesk

A cryptocurrency investment scheme that last month drew the ire of state regulators in Texas announced last week that it was closing its lending platform.DavorCoin, as previously reported, was likened to BitConnect by the Texas State Securities Board given that both involved the use of a lending site and had promised to pay steady interest income to those who invested. On Feb. 2, the board issued a cease-and-desist to Davorcoin, alleging at the time that those behind the scheme had intentionally hidden information from would-be stakeholders.

 

FAO: Florin Adrian Oprea, Editor-in-chief Blockchain Daily News

DNT: Decebal Nicolaie Todarita, Editor Blockchain Daily News