Day: June 14, 2018

Mike Novogratz’s Galaxy Digital has invested $15 mln in a fintech startup AlphaPoint to “continue to help drive this revolutionary change in digital markets”

The Missoulian

Missoula commissioners delay decision on temporary Bitcoin mining ban The Missoulian After hearing about two hours of presentations and public comments on the Bitcoin mining operations in Bonner, the Missoula County Commission on Thursday postponed making a decision on a proposed one-year ban on new or expanded cryptocurrency ... and more »

Industry experts and lawyers discussed whether companies should issue security tokens in a panel debate at real estate-focused event BitcoinCRE on June 14.

Part of London Tech Week, the event looked at regulations across the world and happened hours before Ether was declared ‘not a security‘ by the SEC.

‘A Security Token Would Kill Our Business’

In favour of issuing a security token, Lior Abehassera, co-founder of Leaseum Partners, a real estate agent token backed paying out dividends, said that it isn’t the easiest option, but that if done with good partners, ‘will help you from ending up in jail.’ He advised to be wary of market restrictions and to commit to performing know-your-customer (KYC) and anti-money laundering (AML) checks on investors.

Abehassera said: “The challenge is what happens on the secondary market where there can be money laundering. If you’re selling a security token, you don’t want that. How to deal with compliance on the secondary market? You embed into your token a whitelist. When anyone has your token they have to go through whitelisting.”

In contrast, the founder of CPROP, Sandy Selman, highlighted the risks of tokens being classified as securities and blamed the lack of global regulation on the lack of consensus between regulators.

Selman said: “We decided to use a tradeable entity. If it became a security it would kill our business. We decided not to take any U.S. money to not deal with the problem.”

ICO’s, Global legal uncertainties, Utility or Security token?…so many questions, so few answers. On June 14 join our legal framework session at #BitcoinCRE during @ldntechweek…Tickets @ https://t.co/rMLzb9Otqo #blockchain #bitcoin #crypto #LTW #londonevents #proptech pic.twitter.com/KoXqxtGYQL

— AnySizeDeals (@Anysizedeals) June 11, 2018

Considering both sides of the argument, blockchain expert and partner at Orrick Law Firm, Jacqui Hatfield said that companies need to consider what the token is for on a ‘case-by-case basis.’ She also pointed out that consideration needs to be made to the countries that the token is aimed at, saying that Europe isn’t ‘ready to bring in any kinds of regulations.’

Hatfield said: “If you have got a security, you have to comply with directives. You are looking at fines of about £200,000. You have to get the FCA to agree to it. Do you want to restrict yourself to qualified investors? Even if you do get a security, there are potential litigation claims if they get pressure from the shareholders with those tokens. So, you need all those disclaimers.”

Kai Peeters, founder and CEO of HiP, an asset exchange for real estate, spoke about how HiP got their licence and the importance of keeping it for their business. He said that if the licence goes, the company folds. He recommended that companies should avoid talking in terms of blockchains and get licenced on terms that the regulators will understand.

Peeters said: “You go in there and tell them something that they understand. Once you have a contract license, you don’t need to tell the FCA that you’re using blockchain technology. The lawyer has to write the contract then somebody has to code it.”

Featured image from Shutterstock.

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With such practical and academic prowess behind it, Saga has every chance of pulling off what neither stable coins or fiat currencies have yet managed: a currency with low volatility that appreciates over time.

With such practical and academic prowess behind it, Saga has every chance of pulling off what neither stable coins or fiat currencies have yet managed: a currency with low volatility that appreciates over time.

Microsoft and blockchain solutions provider Ardents have revealed a new blockchain-based supply chain system for the pharmaceutical industry

This article originally appeared on Bitcoin Magazine.

The tide is rising and Bitcoin Cash is riding with it. In the last 24 hours, Bitcoin Cash is up nine percent meaning technical formation hints of support at $850, a previous support and bear targets from our past BCH price forecast. That aside, odds of a BCH buying follow through and confirmation of a three bar bullish reversal pattern remains high today.

Let’s have a look at Bitcoin Cash (BCH) price action:

From the News

It came as a news flash, that announcement by CoinBase that they will support ETC in the coming months. The news triggered a capital rush into a cryptocurrency that was there from the very beginning and still soldiering on as they build their legacy Ethereum coin burn blockchain adhering to the spirit of decentralization. ETC is now in the top 20 with a $1.45 billion market cap and with the new found attention, it might soon find itself shoulder to shoulder with Buterin’s Ethereum and Bitcoin Cash.

For sure, this is perfect and according to Zeeshan Feroz, the CEO of CoinBase UK the “small company did a better job of controlling information flow in this developing space. He even said prior to this, the announcement was smoother than how it was when BCH support was announced. If that was the case with zero insider trading, then undoubtedly, that would be perfect for the market. After all, as they plan to play under the SEC and FINRA rules and regulation, they must stay stain free before they receive that approval stamp.

If approved, Coinbase will be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

— Coinbase (@coinbase) June 6, 2018

Talking of regulation, all eyes will be set on China-again. This time, the market is upbeat and a little bit hopeful that the country’s financial regulators will re-look cryptocurrencies and perhaps warm up to their respective ideas. While this is definitely a tall order, China have to take a stand for it to emerge as a technology trend setter more like what the US is doing. Of course, many agree that blockchain is here to stay and in fact they support it, the unregulated nature of cryptos is a thorny and deterrence for many would be investors.

Bitcoin Cash (BCH) Technical Analysis

Weekly Chart

From our previous Bitcoin Cash forecast, our main support and the lower side of our trading range is at $600. But in light of our trading behavior in the weekly chart, we placed an intermittent support at $850 and what we are currently seeing in the weekly chart is strong reactions at this level.

Technically, we expect to see sellers continuing with their march but that is subject to what happens next week and the eventual shape of this week’s candlestick. Should it end as a bullish pin bar then it would mean buyers are entering in lower time frame signaling trade pause-at least from a conservative approach-until after there is a follow through pushing prices above week ending June 3 highs of $1,300.

Otherwise, any strong break below $850 means we sell and aim for $600 and later Bitcoin Cash all time lows of $350 in the coming weeks.

Daily Chart

What we have in the daily chart is a morning star pattern after yesterday’s completion of a three bar bullish reversal candlestick. Notice than on June 13 sellers did slow down at $850, a key support line according to our analysis.

We can pick that up because at that time there was a volume spike but we didn’t see strong price movement to the down side like it has been the norm in the past couple of days. This mean Bitcoin Cash found support at that level and ideally, today could either make or break BCH short to medium term prices.

Here’s what I suggest: watching this BCH and buying it once we see up-thrusts above June 12 highs of $970. Only then would we buy with stops at $800 and buy targets of $1,200 and $1,800 on the ambitious side. On the flip side, any reversal of June 14 gains invalidates this projection.

The post Bitcoin Cash (BCH) Technical Analysis (June 15, 2018) appeared first on NewsBTC.

It’s rare we see uniform appreciation of altcoins prices. Could BitFinex and the rest involved in another “coordinated BTC pump” and helping alt coins recover? Well, maybe, we don’t have data but we should draw some nuggets from recent Amin Shams research paper done by the University of Texas-Austin. While that may be true, we for sure know that EOS is up because of the good voting vibes that finally breathes live and gives its token value.

Let’s have a look at these charts:

EOS Technical Analysis

According to EOSAuthority, it’s Eureka for Dan Larimer, Block One and EOSIO. EOS has successfully staked 150 million EOS coins enough for block producer voting to begin and that was the only trigger that was needed as we had said before.

EOS Voting it is Complete Now WOW, pic.twitter.com/Z6E1aC7ulx

— ffghf (@gnamet29) June 14, 2018

The shift of sentiment is clear from the chart and it couldn’t be any better because not only do we see a moment of pure coincidence but that nice three bar reversal pattern and a morning star means we buy going forward. After all, yesterday’s candlestick was overwhelmingly bullish with high volumes following through that bullish pin bar we had on June 13. As such, ideal stops lies at June 13 lows at $8 with take profits at $15 and later $23.

Litecoin (LTC) Technical Analysis

It’s no secret that financial institutions under the oversight of government oversight treasure regulation. On the other hand while cryptocurrencies are generally investment grade products, the sheer lack of regulatory oversight slam the door for institutional level investments. However, things are changing.

Like Gemini, ItBit a regulated exchange received the nod from the New York State Department of Financial Services (NYSDFS) to list four other cryptos including Litecoin and Stellar Lumens for their customers. This means under their new arrangement, they can hold custody, allow OTC trading and even exchange coins under their watch for their customers.

Looks like ItBit will be trading Litecoin soon! https://t.co/b1uP41C4g0

— Charlie Lee [LTC] (@SatoshiLite) June 14, 2018

While this is happening, it seems like EOS event is generally jerking prices back to live. After yesterday’s nine percent gain, we have a clear double bar reversal pattern right in the thick of bear pressure. I won’t recommend buys today but should we see a confirmation of June 14 buy pressure then we can start buying once prices edge past $110. In that case, stops at $110 with targets at $140 would do the job.

Stellar Lumens (XLM) Technical Analysis

Like LTC, Stellar is up eight percent in the last 24 hours and this is good news and a reprieve for coin supporters. Of course Stellar as a platform is perfect even for launching projects and besides it expediting value transfer, it has different user cases and investors are seeing value in Jade McCaleb vision.

So, because of yesterday’s bullish bar, it’s quick to enter back and buy because of those high volumes in the past few days rejecting lower lows. Yes, you can buy with stops at 20 cents or even 18 cents but I prefer waiting for confirmations today. When that happens, ramping longs with first targets at 30 cents and later at 40 cents will be perfect. However, should sellers get back and break below 20 cents, then this projection would be valid and in that case selling with targets at 9 cents will fit right.

Tron (TRX) Technical Analysis

Do you think the new Tron Web wallet available via a Chrome plugin is a hack in waiting? If you think so, your concerns are well founded and we can draw many similarities to past exploits of MEW and several other third party wallets where coin holders have lost million of USD worth of coins.

On the flip side, Justin Sun may be right with this new announcement of what he terms as an “amazing” wallet specifically made for Tron. Of course, it’s fodder for critics but while it’s well meaning, the community is asking for solid partnership with say Ledger or KeepKey for an official Tron hardware wallet.

#TRON An amazing multi-functional wallet applying to Chrome plugins designed specifically for the TRON web. #TRX  $TRX https://t.co/TzMSfnTSTw

— Justin Sun (@justinsuntron) June 14, 2018

Price wise, those long lower wicks on June 13 combined with high trading volumes were spring boards for buyers especially now that prices are at key support lines. Since we are seeing these reversals happening at our previous inflection points and bear targets, safe stops may be at these levels. So, in line with the new found buy momentum inside a deep decline, buying with stops at 3.5 cents is what I suggest. Buy targets would be at 6.5 cents and later 8.5 cents.

IOTA (IOT) Technical Analysis

I think there is no better time than now for that one person whose main aim is to bridge the “community and IOTA Foundation”. Fahad Sheikh is here to do that and during his tenure-hopefully permanent, he shall help foster vibrant leadership, create awareness and allow the team to respond to community needs.

Welcome Fahad Sheikh to the IOTA Foundationhttps://t.co/yOnEV2ssia#IOTA

— IOTA (@iotatoken) June 14, 2018

As that was happening, IOTA is lifting itself up from the dredges and for the very first time in a three weeks or so, IOTA and the top 10 is printing a uniform green. It means IOTA is up close to 10 percent and beckoning early buyers to jump in and help propel prices back to $3 if not $4.5 on the upper side of the spectrum. That’s what I suggest and conservatives should wait until prices are up above $1.3 or May 29 lows before ramping up. Safe stops are at June 14 lows of $1.1.

The post Tether Anyone? Litecoin, IOTA, EOS, Tron and Stellar Lumens Technical Analysis (June 15, 2018) appeared first on NewsBTC.

Coinbase recently announced that it would be adding support for Ethereum Classic (ETC), a hard fork of Ethereum. The announcement caught the crypto community by surprise, as the exchange had repeatedly made it clear that it would not be adding any digital assets in the near future. However, the reaction was swift from the crypto community, with many recognizing the great opportunity the news would create. The price of ETC began appreciating rapidly as demand shot through the roof. In just a few hours, the price had risen by over 25%.

That achievement is especially incredible in light of the current state of the market, as most currencies have shed billions in value. ETC’s 25% rise in just 24 hours proves that while it’s not the biggest exchange in the world, Coinbase’s influence is still great, and getting listed on its platforms can change the fortunes of a crypto for good.

Ripple, The Unfortunate Victim

The San Francisco-based exchange currently lists only four digital currencies: Bitcoin, Bitcoin Cash, Ethereum and Litecoin. While Bitcoin and Ethereum were obvious choices given their popularity and market value, Ripple’s community has long expressed criticism of the listing of Bitcoin Cash and Litecoin over XRP when they have smaller market caps. Ripple is currently the third-most valuable crypto with a market cap of $23 billion, more than three times that of Litecoin.

In early March, rumors surfaced that Coinbase would list XRP, which caused great excitement in the market. This would open XRP up to a whole new market segment, with Coinbase having close to 15 million users. Crypto traders knew the demand would rise greatly once this happened, and they began to buy XRP immediately. Just 24 hours after those rumors started circulating, the price of XRP had appreciated by close to 20%. To add fuel to the fire, it was announced that Ripple’s CEO and Coinbase’s president would both take part in a panel discussion on CNBC. Many XRP enthusiasts were certain that the listing would be announced then, and this only spurred them to buy more XRP.

It was not meant to be, however, as Coinbase came out to deny the rumors, stating that they would not be adding any digital tokens in the near future. This had a huge ripple effect on the XRP markets, and a few hours later, its market cap had shed more than $3 billion.

In December of last year, Bitcoin Cash was listed on Coinbase, and as expected, its price also appreciated greatly due to high demand. However, the circumstances surrounding the listing suggested that Coinbase employees may have engaged in insider trading, an issue which the exchange promised to investigate. This did little to deter traders from purchasing BCH, so much so that Coinbase had to temporarily suspend trading due to system overloads. The exchange later revealed that in the first three minutes of trading, over 4,400 orders were submitted, over 97% of which were buy orders. The BCH value shot upward as a result, and in just 24 hours, it rose from $2,200 to $3,200, a 45% increase.

Will Ethereum Classic be the next success story? Will Coinbase add support for other cryptos in the near future? Only time will tell. However, one thing is certain: getting listed on Coinbase is a huge endorsement for any crypto and can make it a contender for crypto market domination.

The Financial Conduct Authority, a financial industry regulator in the UK, has called for appropriate caution and enhanced scrutiny from banks as they handle firms engaged in crypto trading. In an open letter to CEOs, the FCA’s Executive Directors of Supervision, Megan Butler and Jonathan Davidson, listed a number of measures that banks can take to shield themselves from the dangers that emanate from firms that deal in crypto assets. While appreciating the value of digital currencies as speculative investments and as a means of raising funds for startups, the FCA also noted that cryptos are prone to abuse from malicious parties due to their anonymity.

Due Diligence and Client Engagement are Key

The FCA began by defining crypto-focused clients as those “who derive significant business activities or revenues from crypto-related activities.” They include clients who operate crypto exchanges which facilitate the conversion of fiat to crypto, those who engage in trading, and those who issue ICOs.

While the banks’ conduct is expected to differ as they handle different clients, the FCA suggested a number of measures they can take to reduce their risk. Key among them is developing their staff and giving them sufficient knowledge regarding the crypto industry. This will help them identify activities that pose a high risk of facilitating financial crime.

According to the regulator, banks should also engage their clients so that they can better understand the nature of the businesses they engage in and the potential risks they pose. Due diligence is also important, with the FCA advising banks to collect adverse intelligence on the key individuals involved in clients’ businesses. When dealing with crypto exchanges, banks should also inquire about and consider “the adequacy of those clients’ own due diligence arrangements.”

While the regulator expects the banks to follow the suggested measures, it recognizes that application will differ among banks as their client needs vary. One of the areas in which variation is expected to be greatest pertains to handling clients whose source of wealth is the trading of digital assets. The banks must, however, not change the existing criteria for other sources of wealth such as inheritances or property transactions. Banks must exercise extreme care when dealing with crypto wealth, as the evidence trail behind such transactions may be weaker than that of other channels. Of particular risk are clients who use state-sponsored digital assets to evade international financial sanctions.

The letter concluded by urging banks to refer to the Financial Services Authority’s 2012 guidelines on how banks should handle the risk of investment fraud. This will help them to better handle clients who invest huge sums of money in ICOs and are “at a heightened risk of falling victim to investment fraud.”

The Bank of England has called for more regulation of the crypto industry, with Governor Mark Carney saying it would combat illegal activities and promote crypto’s smooth integration into the mainstream financial system. The BoE has in the past said that its assessment concluded that cryptocurrencies do not pose any risk to the monetary and financial system in the UK, but that it does for individual investors, who must exercise caution when investing.

A South Korean financial association plans to build “Crypto Beach” in Busan to explore and keep blockchain technology prospects in the country

A group of Oxford academics seek full-degree granting powers in the EU to launch the world’s first blockchain-powered, decentralized university

The U.S. Securities and Exchange Commission (SEC) has declared that Ethereum (ETH) is not a security under U.S. securities law as it is a decentralized structure that is not controlled by any committed third party.

SEC Backs Decentralized Coins

Speaking at the Yahoo All Markets Summit: Crypto conference in San Francisco, the finance head said that the key issue is how the asset is sold and the ‘expectations of purchasers.’ At the time of publishing, Ethereum is trading at $518, according to CoinMarketCap, up by 9.59 percent in 24 hours.

William Hinman, head of the Division of Corporation Finance at the SEC, said that U.S. securities law will not apply to Ethereum as a tradable commodity because of its decentralization. This acknowledges that it was originally sold in an initial coin offering (ICO), but that it is not controlled by any committed third party who is giving investors an expectation of future value increase.

Hinman said: “If the network on which the token or coin is to function is sufficiently decentralized and the purchasers no longer have a reasonable expectation that a person or a group is going to carry out a central, managerial or entrepreneurial effort, those assets might not represent a securities contract.”

“Putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network is a decentralized structure. We believe that the current offers and sales of Ether are not security transactions.”

He highlighted other laws that do apply to companies that issue tokens, including know-your-customer (KYC) and anti-money laundering (AML) laws. He also said that investor contracts that involve Bitcoin could be classed as a security if they meet certain requirements or offer a future increase in value.

Paying attention to the simple agreement for future tokens (SAFT), he said that they are likely to ‘retain the characteristics of a security for some time.’ He conceded that some digital aspects may be able to be resold as a non-securities transaction, but that it depends on individual circumstances.

SEC Reiterates Bitcoin is Not a Security

Following comments by Jay Clayton, the chair of the SEC, where he clarified that Bitcoin is not a security, Hinman highlighted that it is decentralized and may have been since it was created. Unlike Ethereum, there was no ICO for Bitcoin.

Hinman said: “When I look at Bitcoin today, I don’t see a central third party who’s efforts are a key factor in determining the success of that enterprise. The network that Bitcoin functions is operational, appears to have been decentralized for some time, perhaps since inception.”

This raises questions over Ripple’s (XRP) status as a security or not. Hinman said that Ethereum is not a security because there is no third party committed to carrying out a managerial effort. Ripple, on the other hand, own the majority of XRP, are committed to it as a business and provide an institutional solution called xRapid that uses it. On May 5, Ripple was hit with a lawsuit for allegedly violating securities law.

Featured image from Shutterstock.

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