Day: April 13, 2018

Bitcoin is on the rise. After yesterday’s impressive surge to $7,600, the currency has once again defied all odds and spiked beyond the $8,000 mark. At press time, bitcoin is trading for just over $8,100, and is once again reminding enthusiasts of why they got involved in crypto-trading in the first place.

The currency had experienced quite a few nasty runs over the past few weeks. While it never seemingly dropped below 6,600, the resistance levels between $6,700 and $6,900 were proving to be tougher than the coin could handle. Bitcoin hovered within this range for some time, and many analysts were predicting that the currency’s future would yield bleak results.

Now, it seems things are changing. Naturally, advocates and users are warned to be wary. Cryptocurrency hasn’t always proven to be the most predictable of assets, but one can allege that the bears have once again taken the reins. The current price marks a new stronghold and a $1,200 rise in the last few days.

Yesterday, we discussed the wide array of new Muslim investors that suddenly had an open doorway to the cryptocurrency. Bitcoin trades were deemed acceptable in certain instances according to Muslim law, and with nearly 1.6 billion followers, massive waves were potentially made on the virtual asset playground.

However, today’s news may have also bore some positive effects on bitcoin and cryptocurrency. Yahoo Japan has announced that it will invest a near 40 percent stake into the popular Japanese cryptocurrency exchange BitARG. The investment has already garnered approval from the country’s Financial Services Agency (FSA).

For the past month, executives at BitARG had remained relatively silent about who or what was investing in their company. They were hesitant to reveal Yahoo’s interest, saying instead that they were simply exploring “various possibilities.” Now, the company’s identity has been revealed. As the country’s primary online auction site, Yahoo Japan becomes the latest large financial services company to reject security concerns and enter the cryptocurrency scene since Monex Group last week. The organization announced that it would take over Coincheck and handle all the exchange’s customer accounts.

Coincheck was the victim of a hack last January that saw over half-a-billion in NEM coins vanish practically overnight. It’s the largest cryptocurrency-related hack in history, “beating out” Mt. Gox in 2014 by roughly $100 million. The exchange was eventually forced into bankruptcy and was overtaken by San Francisco-based platform Kraken.

Yahoo’s investment will equal anywhere between $18 and $27 million USD. That’s roughly two to three billion yen. Shares in Yahoo Japan have since closed at 0.2 percent.

While the currency still has a long way to go, bitcoin is earning positive feedback from analysts, most notably Tom Lee of Fundstradt fame, who despite the consistent price drops of the last several weeks, has remaining relatively bullish on bitcoin. He says he and his fellow team members remain convinced that bitcoin will finish out the year at $25,000 – its highest price mark since December of 2017.

Tech billionaire Tim Draper is even more enthusiastic, claiming that the currency could reach as high as $250,000 by the year 2022.

Most cryptocurrency markets are in the green, following a massive surge on Thursday. Now we should take a look at the charts to understand what will happen next. #PRICE_ANALYSIS

Russia has always been an interesting country when it comes to cryptocurrency. Government officials remain on the fence about whether or not to allow this industry to thrive. The Russian Interior Ministry has suddenly decided to halt several Bitcoin mining operations due to the “misappropriation of electricity” in Orenburg.

Bitcoin Mining in Orenburg is Problematic

There have been many reports regarding the electricity use of Bitcoin mining operations. A lot of mining ventures use so much electricity that they can overload the power grid. Not every part of the world can deal with this increased demand for electricity, though. In Orenburg, Russia, it seems the misappropriation of electricity is frowned upon by government officials.

Indeed, the Interior Ministry is cracking down on any Bitcoin mining activity in that region as of right now. In this case, they received a statement from a local energy company claiming that it lost electricity. It seems this particular outage was caused by an overload of the power grid, allegedly the direct result of various Bitcoin mining operations in the city.

After a thorough investigation was launched by local police, it quickly became apparent that a major Bitcoin mining operation was underway. Authorities seized a total of 6,000 ASIC miners in the process, which is a rather substantial amount. It also goes to show how many people mine Bitcoin in Russia, as well as the lengths to which they will go to ensure their operation generates a profit.

All that high-tech equipment has only one purpose: it allows people to mine cryptocurrencies. However, the consumption of electricity associated with this project was supposedly equal to 8 million KWh. That number seems a bit overstated, but it is evident this region’s infrastructure cannot sustain such demand for a long period of time. In most cases, an overload will lead to power outages, which is apparently what happened in Orenburg.

For the time being, it remains unclear what will happen to the confiscated equipment and the people operating this Bitcoin mining setup. Several suspects have been identified, including two “managers”. An official criminal investigation is pending, even though it is unclear what will come of it.

Rest assured this is not the last time we will see incidents like these take place in Russia. The country’s government has made it clear it will maintain a negative stance toward cryptocurrencies and any activity associated with it. Whether or not this will lead to even more criminal investigations is a different matter altogether. Misappropriation of electricity is a major offense in Russia; that much is evident.

Decentralized app browser and ethereum wallet Cipher Browser is joining Coinbase and Toshi.

Asia and Australia

Welcome to our weekly roundup of all important blockchain and cryptocurrency news from around the world. Follow the latest developments in the cryptocurrency space continent by continent, country by country.

Japan

Japanese cryptocurrency traders exceed 3 million: Japan is one of the most crypto-friendly countries out there with more than 3 million Japanese trading in cryptocurrency according to the latest figures from its Financial Services Agency (FSA). The data also highlights that there were 17 registered cryptocurrencies by the end of March.

Millennials and younger age brackets represent 90% of the crypto traders. This data shows the inclination of the Japanese young populace towards the crypto trading phenomenon despite the recent Bitcoin price tank.

FSA halts operations of two exchanges over KYC failure: The FSA has ceased the operations of two exchanges when they failed to implement the Know-Your-Customer (KYC) licensing requirements. External Link and FSHO were also given penalty orders.

The move follows the agency’s suspension of 15 exchanges that were found to be complacent in implementing the rules and regulations of the FSA. The two exchanges were not available for any comment.

Government-backed study declares ICOs are not scams: While acknowledging the challenges that ICOs present, Japanese government’s recent study found out that ICOs are not scams and the right regulatory frameworks will be needed to legitimize them under the national infrastructure.

Insider trading and money laundering were found to be one of the major challenges posed by ICOs and cryptocurrencies.

South Korea

Financial watchdog investigating banks for crypto association: South Korea’s top financial watchdog Financial Services Commission (FSC) has announced that it will investigate three banks to see if they are complying with the new anti-anonymity regulations imposed by the government.

The FSC announced back in January that investors in South Korea will have to buy cryptocurrencies under their own own name and using fiat banking channels to tackling money laundering practices.

Police detain two cryptocurrency exchange executives for questioning: South Korean police has detained executives from two cryptocurrency exchanges for extensive questioning. Four executives were arrested, including the CEO of Coinnest, over charges of embezzlement and money laundering. Prosecutors claim that billions of Korean Won (KRW) were transferred from client accounts that could amount to fraud.

These arrests are part of a wider initiative by the government to clean house after a recent exchange hack.

China

Chinese state cryptocurrency to feature negative interest rates:  The People’s Bank of China (PBOC) has been working on a possible state cryptocurrency for some time, while cracking down on Bitcoin and other cryptocurrencies like  Ethereum.

In a surprise move, the PBOC’s director general of financial research said that negative interest rate for the state cryptocurrency was on the cards: “In the long run, due to the lower natural interest rate, monetary authorities can incorporate negative interest rate policies into the normal monetary policy toolbox.”

Giving no quarter to cryptocurrencies: While China may be relaxed on blockchain research and implementation through their national system, it is tightening controls over cryptocurrency traded in the country.

The Bank of China appointed a new head in Yi Gang and many people’s hopes were crushed once Gang announced his sweeping anti-cryptocurrency measures.

Police halt blockchain conference in Shanghai: The Chinese crackdown on cryptocurrencies continued this week as a blockchain-themed conference was abruptly raided and closed down by the police in Shanghai on Thursday. The Global Fintech and Blockchain China Summit 2018 was organized as a business conference but was raided around midday by the Chinese police.

According to PTP, the organizer said, “We are still investigating the reasons of the halt, and so far the explanation offered by the police is due to security risk. We are working on a solution regarding how to make up for event attendees. The conference is in compliance with the regulation in China and does not feature any ICO roadshow.”

An update is expected in the near future.

India

India prohibits banks from handling cryptocurrencies: In a sweeping move, the Reserve Bank of India has announced that all banks and regulated financial entities will now be prohibited from dealing or abetting in trading cryptocurrencies.

The reason behind this was described as “associated risks” of cryptocurrencies and the ban was effective immediately.

Over 17,000 sign petition against Indian crypto ban: A petition with over 17,000 signatures was tabled against Indian Reserve Bank’s much-criticized move of banning cryptocurrencies in the country. The petition was mostly driven by younger users who are employed in the blockchain industry in the South Asian country.

Pakistan

Pakistani central bank snubs cryptocurrencies: The State Bank of Pakistan recently announced that financial companies are now barred from sending money abroad through cryptocurrencies. The announcement also carried an “advice” to refrain from “processing, using, trading, transferring value in virtual currencies or tokens…”

The move follows the regional trend of banning and warning against cryptocurrencies.

Australia

Australia sets deadline for registration of cryptocurrency exchanges: Australia has recently implemented regulations suggested by the Australian Financial Intelligence Agency and is now requiring all cryptocurrency exchanges to register themselves before mid-May 2018.

These regulations were passed after the Australian Senate passed legislation: “Effective immediately, DCEs (digital currency exchanges) with a business operation located in Australia must now register with AUSTRAC and meet the Government’s AML/CTF compliance and reporting obligations”.

The post Asia and Australia: Crypto and Blockchain News Roundup, 6th to 13th April 2018 appeared first on BitcoinNews.com.

Texas has always been an interesting state, even though it tends to do its own thing. Even so, the Lone Star State is keeping a very close eye on cryptocurrency offerings and the risk of fraud associated with this particular business model. Unfortunately, it seems there are a lot of ongoing investigations in this regard, which further confirms that not every project should be trusted.

Cryptocurrency Fraud is on the Rise in Texas

A new report issued by the Texas State Securities Board doesn’t necessarily paint a positive picture for the cryptocurrency industry. More specifically, it appears there are quite a few projects in existence which raise a lot of questions. The report confirms that there has been a sharp increase in the number of cryptocurrency investment opportunities being marketed to Texans.

While that itself is a positive trend, it also shows there are a lot of dubious projects to take into account. So far, 32 investigations into potentially fraudulent schemes have been conducted since December of 2017. That means the securities board has been successful in this venture, although they did not necessarily have to put in much effort to cull the wheat from the chaff.

All of these investigations revolved around fraudulent and illegal advertisements of cryptocurrency-related investment opportunities. Over half of those companies claimed to use Bitcoin, which is not entirely surprising. After all, the main purpose of doing so is letting people invest in their product using Bitcoin, although most of these companies do not even have a working product to begin with. While no promoters of these potential scams were registered to sell securities in Texas, it remains to be seen if they will face jail sentences in light of these developments.

It is also interesting to note that 30 promoters used websites and social media to advertise these potentially fictitious projects, seven of which offered securities linked to completely new cryptocurrencies. By promising returns of up to 40% per month, it is only normal that these projects attracted the attention of the Texas State Securities Board. All of this further confirms that investors need to be very wary of what they are buying into.

Quite a few investment opportunities will not result in major gains in the near future, and anyone claiming differently is probably looking to scam investors. There are no guaranteed profits in the world of cryptocurrency, after all. Moreover, any company offering securities should be registered with the proper authorities, which is clearly not the case in Texas as of right now.

Moroccan authorities have extradited a British national to the U.S. on fraud charges for running the “Bitcoin Store” exchange under false pretenses.

Boerse Stuttgart’s fintech subsidiary is rolling out a no-fee app to trade bitcoin, ether, litecoin and ripple.

Bitcoin bull and venture capitalist Tim Draper predicts Bitcoin price to $250k by 2022. #NEWS

This article originally appeared on Bitcoin Magazine.

Europe

Welcome to our weekly roundup of all important blockchain and cryptocurrency news from around the world. Follow the latest developments in the cryptocurrency space continent by continent, country by country.

European Union

EU urged to become a leader in blockchain technology: Vice President of the European Commission Andrus Ansip has called for Europe to become the leader in blockchain technology around the world. Ansip said this during the EC’s Digital Day 2018 convention in Brussels on 10 April. He urged the governments to invest in the technology both politically and financially in the future.

“A significant number of member states have already started to pioneer blockchain initiatives with the aim of developing and reinforcing local innovation ecosystems and aiming to create governmental services on the blockchain,” he said.

United Kingdom

Survey shows 20% of UK adults will own cryptocurrency in the next five years: A recent survey in the UK by Citigate Dewe Rogerson came to the conclusion that cryptocurrency will become more and more popular with the local people in the future with more than 20% of adults likely to own cryptocurrencies in the next three years and as much as 1 in 10 stores already accepting cryptocurrencies.

Head of marketing at Paymentsense Gur Moreve said: “It’s clear that cryptocurrencies are moving swiftly towards the mainstream. However, small business owners considering cryptocurrency as a payment option should be clear about how they can integrate it with their existing financial arrangements. Will suppliers or staff accept it? Can they pay local and national government agencies with it?”

UK’s financial watchdog to deliver crypto regulation analysis next year: The UK’s Financial Conduct Authority (FCA) has recently announced that they are undertaking a long-term study regarding the risks and benefits for Blockchain regulations and cryptocurrency tradings. The study will be delivered in 2019.

The FCA Business Plan 2018/19 states: “Cryptocurrencies has been an area of increasing interest for markets and regulators globally. In the UK, the Treasury Committee has announced that it will be launching an enquiry, to which we intend to respond.”

FCA warns against cryptocurrency derivatives: The UK’s top financial watchdog is of the opinion that cryptocurrency derivatives will require authorization from the financial agency to do business. The FCA website posted last Friday that derivatives have the quality to be considered as tradable assets but they need to be registered with the government to be lent legitimacy.

Hull launching its own cryptocurrency: Hull city is planning to launch its own cryptocurrency according to latest reports coming from the UK. The city with a 262,200 population will launch HullCoin and will implement “the world’s first Community Loyalty Point” according to latest reports. The coin will come pre-mined and individuals will partake in social activities and earn Hull Coins.

France

C’est magnifique! French chickens on blockchain: French supermarket Carrefour has recently announced that it has incorporated blockchain technology into a data system that allows shoppers to track the full history of the chickens they are buying.

This innovative approach came is currently limited to poultry in the Chain’s Auvergne stores but will be adopted for the majority of their inventory. Carrefour is one of the world’s largest retailers in the world coming only after US giant Walmart.

Germany

Localbitcoins.com to stop operations in Germany due to regulatory disagreements: Localbitcoins, one of the largest Bitcoin buying/selling portals in the world, is withdrawing from the German market for a while because of regulatory reasons. This may be a worrying sign for the German cryptocurrency industry and comes as a surprise after the country vowed not to “over-regulate” cryptocurrencies.

Officially, Germany recognizes Bitcoin as “private money”, which is short of calling it a real currency.

Spain

Sixty cryptocurrency companies contacted by Spanish tax authorities: In a sweeping move, more than 60 Spanish cryptocurrency companies have been contacted by the Spanish tax authorities regarding their clients according to a report by El Confidencial. Among these are 40 businesses that accept online cryptocurrency payments.

The move comes after the Spanish Prime Minister Mariano Maroy’s party announced that his team was preparing legislation including possible tax breaks to attract cryptocurrency companies to the Iberian country.

Eleven arrested in crypto drug money laundering: Spanish Guardia Civil has arrested 11 people involved in laundering more than EUR 8 million via cryptocurrencies and fiat sources according to the latest press release by Europol. The individuals arrested were part of a crime ring which launders narcotics money using credit cards and cryptocurrencies.

Russia

Mining company charged with USD 1 million in electricity theft: Russian police have arrested two illegal cryptocurrency miners after an investigation found them mining without a license on stolen electricity. More than 6,000 pieces of mining equipment were found on the site which was at an abandoned factory in Orenburg, a small town 1,458 km away from Moscow.

Russian state bank to trial cryptocurrency transactions: Russia’s Gazprombank has announced that it plans to facilitate cryptocurrency transactions in Switzerland. An interview with Russian news outlet Vedomosti revealed that the operations would be for the benefit of the bank itself and not for commercial purposes at the moment.

According to the bank’s head, “this is a demand from the sides of our large private clients for such amenities”, acknowledging the significant call for traditional banks to streamline the banking services of clients holding cryptocurrency funds.

The post Europe: Crypto and Blockchain News Roundup, 6th to 13th April 2018 appeared first on BitcoinNews.com.