Blockchain Daily News – Edition 187, 11.04.2018
April 11, 2018
Blockchain Daily News – Edition 189, 13.04.2018
April 13, 2018

Blockchain Daily News – Edition 188, 12.04.2018

Fans’ Section

$658 Million Cryptocurrency Fraud Allegation Spurs Vietnam Probe

John Boudreau & Mai Ngoc Chau – Bloomberg (subscription)

Vietnam’s deputy prime minister ordered an investigation into allegations of a cryptocurrency scam involving $658 million, the latest report of fraud to hit the lightly regulated market for initial coin offerings.Deputy Prime Minister Vuong Dinh Hue told six ministries to “quickly consider and tackle” the scam, according to a statement on the government’s website that didn’t name the coins involved.

DNT:  Scrutinizing the cryptomarket seems to be the main objective of the governments around the world right now.  

Crypto Diehards Stand By Celebrity-Hyped Coin U.S. Calls A Fraud

Benjamin Bain – Bloomberg (subscription)

After  a week after U.S. authorities arrested two men behind an ICO that raised more than $25 million, their digital token continues to trade.

It appears that even federal fraud charges can’t rattle a cryptocurrency’s true believers.

DNT: The ICO was promoted by boxer Floyd Mayweather. Sohrab “Sam”Sharma, 26, and Robert Farkas, 31, co-founded Centra Tech with plans to sell a digital token that didn’t comply with federal securities laws, according to the SEC and Justice Department. Details hereFans’ Section.  

JPMorgan Sued Over Cash Advance Fees For Cryptocurrency Purchases

Chris Dolmetsch & Jennifer Surane – Bloomberg (subscription)

JPMorgan Chase & Co. was sued for charging “sky-high” interest rates and fees to customers who used their credit cards to buy cryptocurrencies such as Bitcoin.

Deals & Investments

Ripple Looks To Back The Next Uber By Investing $25 Million Into A Blockchain-Focused Fund

Ryan Browne – CNBC

Ripple Invests $25 Mln In XRP In Blockchain Venture Fund

Ana Alexandre – Cointelegraph

Ripple invested $25 mln of its own cryptocurrency, XRP, into Blockchain Capital Parallel IV LP venture fund, according to a company announcement. The $150 mln fund is managed by Blockchain Capital. The new investment will “provide an opportunity to examine new use cases for the XRP Ledger and Interledger Protocol”, support startups, and focus on the “development of the Blockchain space”.

Future Stars?

Have an interesting project/company looking for more visibility? Why don’t you send us more details, and after our review your project might get listed it in this section! Contact us HERE!

Exchanges & Trading Venues

Crypto Tax Support Is Coming Slowly To India

Sujha Sundararajan  – CoinDesk

While the focus may be on the U.S. of late, cryptocurrency tax issues are becoming a global problem.India has responded by sending tax notices to crypto traders and investors after a survey found $3.5 billion in transactions may have been performed by citizens over the past 17 months. The country’s income tax department has even gone so far as to raid exchanges over suspicions that their customers were evading taxes.

Once-Surging Crypto Stocks Face Delisting And The End Of An Era

Lily Katz – Bloomberg (subscription)

Long Blockchain. and Longfin two firms whose shares skyrocketed last year after they rebranded as blockchain businesses, are set to be ousted from the Nasdaq Stock Market. Their removal signals the end of a brief era when everyone from soft-drink companies to cigar makers was cashing in on investors’ mania for cryptocurrencies and their underlying technology.

DNT: They didn’t last long…Public records show that Long Blockchain, the beverage company-turned-crypto-firm faced a delisting earlier this year – details here, Other News section.

FXPRIMUS ‎Adds More Cryptocurrencies To Its Platform

Aziz Abdel-Qader – Finance Magnates

CySEC-regulated forex broker FXPRIMUS has increased the number of cryptocurrencies ‎available to its client as the company continues its efforts to deepen its ‎involvement in the rapidly growing space. Users can now ‎trade Ripple, Dash, Iota, and Bitcoin Cash alongside the ‎already installed cryptocurrency CFDs.‎

Cryptocurrencies

Americans May Qwe $25 Billion In Crypto Taxes — But How Much Will They Report?

Daniel Roberts – Yahoo Finance

Bitcoin Buyers Now Have to Figure Out Their Taxes

Lily Katz & Lynnley Browning – Bloomberg (subscription)

If you thought trading Bitcoin was wild, try figuring out how to pay taxes on it.

Cryptocurrency investors are wrestling with spotty records, tangled blockchain addresses and rudimentary guidelines issued back in the ancient days of 2014. After last year’s boom in values, many people are likely disclosing transactions for the first time, adding to confusion.

DNT: Indeed, this is a big problem for crypto investors right now.

$7.5K Ahead? Bitcoin Price Charts Hint At Bull Move

Omkar Godbole – CoinDesk

A Q2 Price Boost? History Is On Bitcoin’s Side

Omkar Godbole  – CoinDesk

The second quarter of 2018 may bring some respite for beleaguered bitcoin bulls.

The world’s largest cryptocurrency by market valuation seems to have found a bottom around the $6,500 mark, having dropped 50% in the first quarter – notably, the worst Q1 performance on record.

Gamers And Investors Bet Big On Cryptocurrency And Blockchain In The Gaming Industry

Rachel Wolfson – Forbes

While Bitcoin struggles to make it above $7000, the value cryptocurrency can provide outside of the trading realm is becoming evident within the billion-dollar gaming industry.

Bitcoin Purists Appear To Saying Goodbye to ‘HODL’ Life

Janine Wolf – Bloomberg (subscription)

With Bitcoin settling in a narrower trading range following its dramatic price collapse, it seems the “HODL” life is no more.At least that’s suggested by data collected by one Reddit.com user who noted the relationship between the number of times the term “HODL” was used in postings on the site and the changes in cryptocurrency market capitalization.

The Anti-ASIC Revolt: Just How Far Will Crypto’s War On Miners Go?

Rachel Rose O’Leary  – Coindesk

Can public cryptocurrencies stay public?

That’s the simple question that lies at the heart of a complex debate happening across major cryptocurrencies, where developers from projects as diverse as ethereum, monero and zcash are up in arms over what to do about the arrival of a new form of hardware that could upend the delicate balance of their distributed communities.

BitPeople

Bitcoin Evangelist Turned Foe Says He Still Owns Cryptocurrency

Lily Katz – Bloomberg (subscription)

Roger Ver, one of the most outspoken proponents of Bitcoin Cash, the digital token that spun off from Bitcoin in August amid a heated debate in the digital-money community, still holds some of the original cryptocurrency because, well, everyone knows it’s smart to diversify.

The Winklevoss Brothers Just Won a Crypto Patent

David Floyd  – CoinDesk

A company owned by Cameron and Tyler Winklevoss, founders of the Gemini cryptocurrency exchange, has been granted a patent for a system that seeks to improve the security of digital transactions.

Hope Liu, A Blockchain CEO Was Told Women Can’t Make It As Leaders. She Now Has Millions In Funding

Xin En Lee – CNBC

The lack of gender diversity is particularly problematic in the blockchain space, Hope Liu said.

Latest Developments & Agreements

Santander launches blockchain-based foreign exchange service

Nicholas Meaw – Financial Times (subscription)

Santander has become the first international bank to launch a cross-border payments system based on blockchain, using the new technology with a view to taking on specialist fintechs such as TransferWise. The “One Pay FX” service will become available for the bank’s customers in Spain, the UK, Brazil and Poland on Friday.

DNT:  The story also informs that Santander executive chairman Ana Botín said the group aims to eventually make it available as a standalone app that could be used by customers at other banks.

Bank Of England Unveils A Blockchain Proof-Of-Concept To Share Data

Habiba Tahir – Yahoo Finance

The Bank of England, Britain’s Central Bank, published a Proof-of-Concept which analyzes the possibilities of allowing users to share data in a safe and secure network. The bank partnered with blockchain infrastructure provider, Chain, to examine the problem and work on the possible solutions.

Regulation

SEC Preparing Cryptocurrency Fraud Crackdown, Jay Clayton’s Biggest Enforcement Move Yet

Charles Gasparino –  Fox Business

The Securities and Exchange Commission has launched a massive crackdown on alleged fraud in the cryptocurrency business that could result in dozens of enforcement actions against companies and individuals in the next year over the sale and promotion of this burgeoning and under-regulated industry.

DNT: Read also, in our yesterday’s edition about Widespread Fraud In ICOs And Penny Stocks Shocked SEC’s Jay Clayton.

Will UK Regulatory Approach Trump The US In Enabling Cryptocurrency Innovation?

JD Alois – Crowdfund Insider

The Financial Conduct Authority has recently published a note stating they are aware of a growing number of UK firms issuing cryptocurrencies or digital assets associated with initial coin offerings. These vehicles are currently not directly regulated but the FCA, and other policy types, have been monitoring this sector of Fintech for quite some time.

Associations & Federations

22 European Nations Form New Blockchain Partnership

Sujha Sundararajan  – CoinDesk

A group of 22 European nations has formed a new blockchain partnership aimed to exchange information on the technology. The countries, including the U.K., France, Germany, Norway, Spain and the Netherlands, signed a declaration establishing the new group, dubbed the European Blockchain Partnership, according to a release from the European Commission, which led the effort.

Analysis

Big Four Consulting Firms Dip A Toe in Initial Coin Offerings

Julie Verhage & Lily Katz – Bloomberg (subscription)

ICOs have raised billions of dollars for startups while attracting criminals and authorities around the globe. Now, the young market may get some help cleaning up from the Big Four consulting firms. The hesitation toward ICOs is in contrast to the way Deloitte, PricewaterhouseCoopers, EY and KPMG jumped on the blockchain bandwagon as early as 2012. They quickly scrawled research reports and devoted staff to blockchain technology.

Other news

Blockchain: Downfall Or The Future Of Utilities?

Felicia Jackson  – Forbes

Energy may be the lifeblood of civilisation but that simply means that as the energy market changes, so does the way we do business. Blockchain is being touted as the solution to almost every problem but, in the energy markets, it might just be the key to transformation.

DNT: Read more on the same topic, here, Analysis section.

 

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

DNT: Decebal Nicolaie Todarita, Editor Blockchain Daily News