Day: April 6, 2018

Fortune

Hedge Fund Titan George Soros Is Getting into Cryptocurrencies Fortune Interest in Bitcoin also appears to have waned, with the number of searches in the asset—which has generally followed its price—also falling since the start of the year. Still, despite the declines in cryptocurrency prices this year, funds that ... George Soros Is Rumored to Be Investing in CryptocurrencyBitcoin News (press release) all 42 news articles »

The South African Central Bank has formed a self-regulatory body for cryptocurrencies in lieu of formal competencies overseeing the crypto industry.

UK financial regulator focuses on crypto derivatives, sets out regulatory guidelines for businesses and traders.

A bogus startup offering 8% weekly returns on cryptocurrency and medical marijuana was hit by the Texas State Securities Board yesterday, in another move by against crypto-related financial crimes by U.S. regulators.

The Board filed a cease-and-desist order (CDO) against Mark Moncher for allegedly trying to sell unregistered securities through his “Financial Freedom Club,” also called “Millionaire Mentor University,” which Moncher claims can give investors financial independence in as little as 30-days. Despite the CDO, www.millionairementoruniversity.com is still online as of Friday afternoon.

In the order, Texas regulators cite wording from the website that claims its investors are getting an 8% return on their money weekly. The money, says the site, would be used to buy cryptocurrency, which in turn would be loaned to a medical marijuana operation in California.

“Never work hard again,” the site advertises.

Millionaire Mentor University

Investors were told that in exchange for a $2,000 initial investment, they would receive an “invoice of a product matching your initial payment for your protection,” to hide the true use of the funds, according to the CDO. It turns out that that product was meant to be a gold watch that investors would never actually receive, further proof that this operation was trying to blatantly skirt the law.

The Board also accuse Moncher of hiding from investors the fact he was sentenced to 57 months in prison in 2010 by a federal court in Florida for a mortgage fraud scheme and committing mail and wire fraud.

Texas Securities Commissioner Travis J. Iles explains what Moncher and his coconspirator Frank Dalotto are doing as follows:

Moncher and his company are offering for sale investments in a cryptocurrency trading program together with 911MoneyStore Inc., which has two offices listed in New York state. Frank Dalotto is the principal of 911MoneyStore… Dalotto is representing that he is working with ‘a trader with excellent results,’ but he is not disclosing the name of the trader or the strategy used to generate 8% weekly returns. The order alleges that Dalotto is telling potential investors that to avoid securities laws, he and 911MoneyStore ‘really don’t want to portray this as an investment in crypto’ and will refer to the profit payments as a ‘commission.’

The Texas State Securities Board is one of the more active state regulating agencies. Under Iles, it has been scooping up unscrupulous players in the digital currency market for several months. It ordered the closure of DavorCoin in February on suspicions it was operating a scam, and ordered it to stop selling unregistered securities while marketing its company with statements that are “materially misleading or otherwise likely to deceive the public.”

The Board also took down LeadInvest that month, contending that the startup fabricated its management team and illegally solicited investors for a cryptocurrency mining operation and lending program.

Image Courtesy of Shutterstock

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Report: US investment fund headed by George Soros prepares to trade crypto, despite earlier criticism #NEWS

The Reserve Bank of India (RBI) announced in a press release Thursday that all banks and regulated financial entities would now be strictly prohibited from facilitating transactions involving cryptocurrencies.

”Cryptocurrencies comes with associated risks”

Press release details note that the decision was made because of what is described as ”associated risks” of cryptocurrencies. The ban on dealings or settlings in digital currency is effective immediately, impacting all entities under the regulation of the RBI.

The singular exception to the rule are regulated entities that already provide financial transfers to cryptocurrency wallets or exchange platforms. RBI deputy governor BP Kanungo announced on Thursday at a press briefing that such service providers will be given a provisional three months to cut ties with such clients.

Kanungo went on to discuss the possibility of the Central Bank of India launching what he refers to as ”fiat digital currency” with the liability of the bank. He noted that this would be an environmentally-friendly option, as it could reduce the amount of paper used as opposed to traditional currency. The viability report for this is scheduled to be available in June 2018.

Blockchain technology, however, is an initiative that Kanungo supports. He said in the same briefing that blockchain developments should be encouraged and exploited.

Cryptocurrency in India

Bitcoin, in particular, has suffered past criticism from banking authorities. The central bank has repeatedly issued warnings to cryptocurrency investors over the potential volatility of the market. HDFC and Citi Bank have both restricted clients from purchasing Bitcoin via their debit and credit cards.

Despite the prohibition on banks handling digital currency assets, government officials in India recently reiterated the law requiring cryptocurrency investors to pay taxes on their holdings. In December 2017, the income tax authorities of India issued tens of thousands of tax notices to investors following surveys conducted of the country’s nine largest cryptocurrency exchanges.

The post India Prohibits Banks From Handling Crypto appeared first on BitcoinNews.com.

When you’re absorbed in the bubble of the cryptocurrency world, it’s sometimes hard to remember there are plenty of people who still haven’t heard of Bitcoin, let alone Monero, Ethereum, and Ripple. While experts in the industry are busy debating the use of blockchains to expedite payments and eradicate fraud (among a myriad of other things), the majority of the world is blissfully unaware.

But while you can probably cut your parents some slack, and maybe those distant relatives who live out of town, what about WorldPay, the global payment experts? With a reputation for detecting and even shaping the future of payments, according to their research, cryptocurrency will make up a resounding 0% of global e-commerce payments by 2021.

If you’re reading this and thinking, “That’s some BS,” don’t take it up with me. There’s an 800 number you can call on their website. In the meantime, here are some other things the report disclosed:

Credit Cards Are on the Decline

Another hit for VISA and Mastercard comes from outside the crypto world, as the report notes a global rise in alternative payment methods (APMs). In fact, by 2019 (oh right, next year), more than half of all online transactions will be carried out using an APM of some kind. But cryptocurrencies aren’t among them.

The report found that cryptocurrencies currently make up 1% of global online payments, but that number is expected to dwindle to zero by 2021. It should be noted that “zero” does not mean there will not be one single payment made in crypto, or that they’re predicting the four horsemen of the apocalypse. Zero percent actually represents $7 billion (0.2%), but also includes “mobile carrier billing” and “other emerging technologies.”

Bank Transfers Are On the Up

A cold shower in the morning for crypto nerds: bank transfers are actually on their way up as a preferred payment method, particularly in Europe. This APM is set to replace credit cards to become the second most popular e-commerce payment method by 2021, with a 16.5% market share. (Note: “APM” refers to a payment method outside of traditional credit card schemes).

e-Wallets Rule the Roost

Apple Pay, Google Pay and other applications that allow consumers to pay with their phones are gaining traction. But so too are online e-wallet companies like PayPal and AliPay. Since they can be funded in a variety of ways, they offer consumers convenience and flexibility.

Cash Is Not Dead Yet

“We’re living in a cashless society,” you’ve probably heard a thousand times. Well, maybe you are, but the vast majority of the population in Nigeria, Indonesia, India, or the Philippines still relies on coins and bills. WorldPay research found that cash on delivery is still a preferred option in some of these countries, as are cash-funded prepaid cards that have a set spending limit. These are popular among consumers with shaky credit histories, minors, and people with limited means.

What About the Long Term?

The report doesn’t say what WorldPay expects to see beyond 2021. The future, it seems, is anyone’s guess. But if cryptocurrency is going to put the unbanked on the radar and open up large segments of the global economy, it may not be doing so anytime soon.

Reserve Bank of India announces it is considering launching its own central bank-issued digital currency. #NEWS

A long-running cryptocurrency exchange in Pakistan is closing its door following a new advisory from the country’s central bank.

Money Group sees 10-year high share prices today after the brokerage announced that it would be paying ¥3.6bn ($33.5m) for Coincheck, a Japanese cryptocurrency exchange that deals primarily in Bitcoin.

Confirmation of the Monex acquisition of Coincheck, which has been discussed and hinted at through the week, saw Monex shares surging 20%, a sign that investors support the firm’s shift, a move intended to enhance the company’s expertise in digital currencies and blockchain tech.

According to a statement released by Monex on Tuesday, the firm has been “studying and experimenting on blockchain technology and cryptocurrency.” Monex said Coincheck had net assets of ¥54m in the financial year ending March 31. The two companies have already charted the plan out to regulators and major investors.

Monex

As per reports from Nikkei earlier this week, Coincheck’s Chief Executive Koichiro Wada and another executive are expected to be replaced, as the service will be run under Monex’s direct supervision. “Moving forward, should there be facts determined by Monex Group, Inc. that need to be disclosed, we will do so in a timely and appropriate manner,” Monex said.

“The company name “Monex” symbolizes our business principles — always a step ahead of the “Y” in “Money” to design and provide approaches to money in a new era,” Monex said. “It is true that we have been considering the acquisition of the cryptocurrency firm […] but have not made any decision yet.”

Coincheck Thrown a Lifeline

For Coincheck, a potential rescue effort cannot come soon enough: registrations on the exchange are currently closed as Coincheck has found it difficult to recover from a cyberattack — the biggest cryptocurrency heist in history — which left them $530 million out of pocket earlier this year.

After the heist, Japan’s financial regulator, the Financial Services Agency (FSA), ordered Coincheck to make improvements including the establishment of anti-money laundering (AML) protocols and the enhanced protection of customer funds.

While some of the lost funds — 58 billion yen in NEM coins stored in a hot wallet — have been found, there is no way to actually return them to their owners. The exchange has insisted that it will reimburse the majority of the stolen coins, but has not revealed how this will be made possible. Two class action lawsuits of already been brought against Coincheck by customers who claim that the funds they are receiving do not equate to a fair amount.

“We would like to offer our sincerest apologies to our customers, other exchanges, and everyone else affected by the illicit transfer of NEM which occurred on our platform,” Coincheck said in a statement following the heist. “We vow to take action on all of the points listed in the business improvement order handed down from the Financial Services Agency as we work towards resuming normal business operations.”

This acquisition couldn’t have come at a better time, as Coincheck may be thrown a lifeline to re-establish itself in light of December’s cyberattack. In return, Monex will be given an opportunity to enter the booming cryptocurrency space and will also gain access to Coincheck’s current customers.

Also this week out of Japan, in a bold move that looks to further legitimize cryptocurrencies and related technology, a government-backed research group has unveiled guidelines for the legalization of initial coin offerings (ICOs).

Image Courtesy of Shutterstock

The post In More Good News out of Japan, Monex Confirms Acquisition of Coincheck appeared first on NewsBTC.

Online Spanish news source El Confidencial has reported that 60 cryptocurrency companies have been contacted by the Spanish tax authorities and asked to surrender details regarding their clients.

Sixteen Spanish banks and around a dozen exchanges operating crypto ATMs have been contacted along with more than 40 businesses that accept online cryptocurrency payments, the source revealed. Identities of the companies’ clients have been asked for by the government agency, including further details such as bank and credit card details, and amounts along with exchange rates involved in transactions.

Spanish prime minister Mariano Maroy’s People’s Party has been preparing legislation, including possible tax breaks to attract companies using blockchain. Although it is in Spain’s interest to attract new companies to the new technology due to its importance and relevance in the financial ecosystem, concerns about ensuring user safety and fraud are never far away. Consequently, formal investigations and monitoring are to become significantly important in terms of driving the technology forward in a trustworthy business environment.

Spain’s government has tended to link the cryptocurrency industry to organized crime; one of the reasons for regulation, legislation, formal investigation and supervision. As cryptocurrencies have become more accepted in the country due to their growing popularity, distributed ledger technologies are increasingly being studied for potential use in industries, from banking to commodities. In the fintech area, blockchains increase the speed of transactions and enable instant cross-border settlement.

This recent action against 60 companies by the Spanish tax authority can be viewed as another move towards further protecting the industry against potential tax evasion and money laundering using cryptocurrency. The investigations are partly a follow up to recent moves by the country’s National Fraud Investigation Office to cut down on tax evasion of all kinds, particularly internet-based companies such as Airbnb Inc where clients can withhold income information.

 

The post Spanish Crypto Tax Probe Launched appeared first on BitcoinNews.com.

Bitcoin is down another $100. After yesterday’s “high” of roughly $6,700, the currency has dropped down to $6,600. This appears to be an ongoing theme with bitcoin as of late; the currency has been falling by approximately $100 per day since the week began.

Though the price is repeatedly falling, this could suggest that bearish trends are not as powerful as when bitcoin first fell from the $9,000 or even $8,000 range. Additionally, resistance levels could allegedly be strengthening as the technology behind bitcoin incurs further implementation and popularity – especially in the business world.

Indeed, however, the cryptocurrency scene has been marred by several massive decisions over the past few days. In review, we’ve examined that Coincheck may be “rescued” by Monex Group in Tokyo, the second time since Kraken took over Mt. Gox accounts that a victimized Japanese exchange has been “given a backup system.”

Though the price quickly rose to roughly $7,500 following the news, things swiftly took a turn for the worse. The hack on Verge and the cancellation of bitcoin allowances in India – a country that accounts for nearly 10 percent of global bitcoin transactions – certainly imposed repercussions on the digital currency, which may have brought the price down to its current level.

However, it appears a light is glowing at the end of what was looking like a long, dismal and particularly dark tunnel. South Korea – which accounts for nearly 25 percent of the globe’s crypto transactions – is renewing its love for bitcoin following hefty and daring moves towards regulation.

The environment in Korea has been somewhat up-and-down since January, with many sources originally (and falsely) reporting at one time that the country was on the brink of banning crypto exchanges permanently. Though this news was scrapped and the true stories behind upcoming regulation were brought to light, the price of bitcoin took a near-10 percent stumble, and things have gone relatively downhill since then.

To an extent, South Korea is still home to many contradictions surrounding the cryptocurrency arena. The nation’s biggest bank Kookmin, for example, has officially sworn off providing financial services to platforms that deal or trade in digital assets.

This seemed like a nasty blow to a once enthusiastic community, but that move was countered by financial establishments like Shinhan and Woori – two of South Korea’s largest commercial banks. Both institutions have continued to support cryptocurrency platforms, and have backed a growing number of blockchain and bitcoin enterprises since January, ranging from cold wallet storage to the utilization of the Ripple Network.

In addition, Shinhan is now partnering with Ethereum-based banking platform OmiseGo to potentially enhance the blockchain presence in Asia.

CEO Jun Hasegawa released the following statement:

“The OMG platform, using the Plasma architecture, is being built as a public network that is powered by Ethereum. The first phase of the wallet SDK was recently released, and is available for anyone to use. We want to make it easy for those who need an online asset exchange as part of their business to connect seamlessly to the OMG network.”

Financial trends in Asia – particularly in China, Japan and South Korea – have a way of catching on in neighboring countries. If we’re to assume that banks are becoming more open and friendly towards cryptocurrency ventures, it won’t be long before that attitude spreads, which may potentially lead to the recovery bitcoin so rightfully deserves.

It was revealed on Thursday that four executives from two cryptocurrency exchanges are being questioned by South Korean police over alleged embezzlement.

The detentions of Kim Ik-hwan, CEO of Coinnest, and the other executives, whose names have not been published, is part of a crackdown on cryptocurrency fraud over the past few months. This arrest of Kim follows another raid last month of exchanges in Yeouido, South Korea’s own Wall Street equivalent.

The prosecutor’s office claim that billions of Korean Won (KRW) had been transferred from clients accounts. Coinnest, whose executives have now been replaced, is the fifth-largest exchange based on trading volume in South Korea. A “specialized management system” has been introduced at Coinnest in order to “resolve customer anxiety” since the arrest of the company’s CEO, according to a statement released this week.

The arrests demonstrate the South Korea government’s intent to clean up the industry following its adoption of further regulatory measures earlier this year. Although the government stopped short of banning trading, it has stated it needs to prioritize more transparency in dealings. Last year, the Financial Services Commission (FSC) prohibited domestic companies from participating in ICO activities. The FSC warned then that further measures would be introduced as part of an “intensive crackdown” including on-site inspections and analysis of user cryptocurrency accounts.

The new measures introduced at the end of last year saw a wave of arrests and closures of fraudulent companies marketing fake cryptocurrencies, which, according to FSC amounted to illegal profits of USD 22 million from around 1,000 investors. The measures were seen by many in the industry as the government’s answer to legislators in South Korea who wanted a complete ban on cryptocurrency trading.

Other measures to combat embezzlement include the requirement that cryptocurrency traders associate their real names to accounts, the prohibition of mining, and the ban on overseas institutions and individuals in domestic crypto trading.

 

The post Crypto Exchange Execs Arrested In South Korean Raids appeared first on BitcoinNews.com.

The theme of the day had to do with Monero hard fork and EOS network developments. As we now know, Monero wants its new coin XMC to be ASIC resistant but apparently these miners have been behind it hash rate. It’s evident. Shortly after the fork, its hash rate dropped 80% before recovering hours later. EOS on the other hand is making visible progress with EOS Dawn 3.0 release. Obviously this is encouraging for coin supporters but in the short term, EOS is not finding support price wise.

Let’s have a look at these charts:

XLM/USD (Stellar Lumens)

Despite Abra listing Stellar Lumens and potentially exposing this digital asset to potential investors, prices remains relatively calm and down. Fact is, from yesterday’s dip, data from CoinMarketCap shows that there is exposure of Lumens to market forces and is actually down 1% in the last 24 hours.

From a technical perspective and considering all these confluences, odds of further erosion in the next couple of days remains high. Since price action is relatively calm, there are no major changes as far as support-resistance levels are concerned therefore $0.15 is still our immediate bear target.

Of course, if there are rapid losses below week ending March 18, then our next target is $0.07. Obviously, $0.07 is influential because it kept prices from appreciating for the better part of 2017.

XMR/USD (Monero)

More problems for Monero it seems. Who would have thought about this? Apparently, the drastic drop in hash rate from 51MH/s to 17MH/s could be directly attributed to ASIC related mining. Even though it is recovering, it leaves the new Monero Classic vulnerable.

I suspect like 70% ASICs, 20% people who haven’t upgraded, 10% botnets

— Riccardo Spagni (@fluffypony) April 6, 2018

The thing is, will Monero classic weather this criticism as they forge their own path? Well, this is Monero’s 7^th hard fork so it is surely resilient but with them fighting against effects of Bitmain’s centralization there would be consequences.

Fortunately, it means money for GPU/CPU miners. For now, let’s see what influencers have to say about Monero. Already Charlie Lee considers XMC a scam but would this “scam” get the support from main exchanges? Only time will tell.

Technically, Monero prices are down 5% but still perched at the top 10 spot meaning despite the slack and uncertainty around it, Monero is still liquid. With liquidity, most are cashing out which in turn is driving prices down towards our ultimate targets of $110.

Why not? Bear momentum is high. Besides, after last week’s break below 61.8% Fibonacci retracement level, sellers and our Monero technical forecast points to a bear break out trade. It is but a mere confirmation if this week’s price action is anything to go by.

EOS/USD (EOS)

Good news yes, for long term EOS holders but at the moment, it’s a deflation for holders thirsty and yearning for volatility. EOSIO Dawn 3.0 is a milestone for EOS development and since it is something that is part of Block.One road map, this release should be a positive.

Indeed it is because with this, it is slowly becoming a slow journey towards new governance and logic implementation without hard forks. Anyhow, as we wait for the main EOS launch in June, we should bear the decline despite the initial spike-a reaction as usual testing $6.1 shortly after the announcement.

Lead Developer Relations Engineer, Sean Mitchell explains the BIOS Architecture of EOSIO. "This change is really exciting for us because it enables blockchain critical logic to be updated by the community through consensus without requiring changes to the codebase." #EOSIO

— EOS (@EOS_io) April 6, 2018

From the chart, sell pressure persists. If we borrow some tips from our previous EOS technical analysis then we notice that while there was this initial psyche yesterday, sellers remain in charge.

Data shows that prices are down 3.5% in the last 24 hours and if there is a breach of last week’s lows at $5, expect further depreciation towards $4. Conversely, EOS buyers should look to recoup some of their losses if prices surge and close past $6 over the weekend.

LTC/USD (Litecoin)

Aliant Partnership, lightning Network and Charlie Lee tweets later, Litecoin is still sliding, crushing Litecoin holders in the process. We cannot turn a blind eye on the development front.

Of course, as the number of Litecoin LN nodes continues to pick up, prices may find support in the short term.

Considering current prices, sellers are firmly in charge and we can see that long upper wick as the week comes to an end indicating strong sell pressure. Basing our skew on our previous Litecoin Technical analysis preview, sellers should remain steady and aim for $90.

NEO/USD (NEO)

Whether NEO will become a dominant platform or not is depend on if ICOs find value doing business using their infrastructure.

All we know is that Ontology shall work with four other VCs in what is dubbed the “Co-Builder Plan” in a bid to promote, govern and serve blockchain and its ecosystem better.

Ontology announces venture capital cooperation to co-build a next generation chain network, and welcomes more ecosystem co-builders. $ONT https://t.co/RrWvUdacv8

— Ontology (@OntologyNetwork) April 4, 2018

Additionally, there are four more projects in the pipeline that we can interpret as positive for NEO.

A few projects build on $NEO, found by @seaside_crypto. Nice find .

1. Endorsit @eds_ren – https://t.co/ZJ517wKAl4
2. Gagapay @GagapayOfficial – https://t.co/zWP3wwWOvt
3. FTWcoin @ForthewinCoin – https://t.co/CmqVK0de7C
4.ExChain @EXTproject – https://t.co/hKS9ipDnaw

— FYIcryptoz (@FYIcryptoz) April 6, 2018

In contrast though, prices are dipping in line with our previous forecast. Remember, $40 is our main support line. Consequently, if there is a bear break out, $25 would be a likely destination representing an 90% value erosion in NEO.

All charts courtesy of Trading View

 

The post NEO, EOS, Litecoin, Monero and Stellar: Technical Analysis April 7, 2018 appeared first on NewsBTC.

The online casino industry is arguably the biggest online industry in the world today, with millions of hopeful gamblers logging into online casinos every hour, 24/7. Online casinos make millions of dollars, some virtually by the minute. In fact, the bigger the online casino, the more dollars they are guaranteed to make every second, it’s like printing your own money!

So, how do online casinos manage to make so much money if they offer games of chance for you to win at?

You would think that, with so many people playing online casino games every day that some online casinos would eventually go bust. If you really believed that players were striking it rich with million dollar jackpots every day, how on earth could an online casino sustain such losses?

The answer is shockingly simple and it may completely put you off online gambling for good. Every single online casino operating on the web right now runs every casino game on something called the house advantage. This basically means that the casino has an unfair advantage in every game that you play. In other words, no matter what you do, you will lose your money to an online casino. This house advantage is more commonly known as the house edge percentage and you can see the percentage in every online casino game.

However, before you give up on playing online casino games for good, there’s a new way of playing that is set to disrupt the way that online casinos currently operate, here’s how.

ZeroEdge.Bet – Revolutionary online gambling platform with 0% house edge games

ZeroEdge is a unique concept set to revolutionize the way you gamble online. Currently, all online casino games come with a house edge, i.e. the advantage that the casino has over you, which varies between 1% to 10% or more, depending on the game. ZeroEdge’s solution – offer games with 0% house edge and give players a completely fair chance of winning. In other words, playing at ZeroEdge.Bet is literally free, you don’t have to pay anything to the casino like it’s with traditional online casino sites.

The most amazing part is that Zerocoin value increases as more people join the world first 0% edge gambling platform. It is all achieved by creating a closed-loop economy in which high demand for 0% games drives Zerocoin’s value up. This model is also known as Metcalfe’s law which was originally invented in 1993 and can be seen in the actual Bitcoin’s price growth. Zero Edge offers a unique gambling model which potentially could revolutionize the $70 Billion gambling industry. Players won’t be losing money but instead earning from the increasing Zerocoin value.

We have made a survey & asked hundreds of people about their gambling preferences &experiences.  The main finding was that 99 % of them stated that they would choose 0% house edge games to play if such games were available. High demand for the world’s first 0% house edge games will increase the Zerocoin value exponentially. An important task for us will be to educate the players and raise their attention to this beneficial concept.

Zerocoins (ZERO) will be available to investors during an upcoming ICO. Visit http://www.zerocoin.bet to find out more.

 

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