New York won’t let itself hang out

New York proves to us that there’s another way. The US state is setting up a task force to advise the government on crypto regulation issues.

Bitcoin news: Governor Andrew Cuomo signed a corresponding law last month

According to Bitcoin news, the Task Force consists of experts in the field and is expected to issue a review by onlinebetrug on regulatory approaches by the end of 2020 at the latest. Among other things, this should provide an answer on how New York should deal with energy-intensive crypto mining and what framework conditions are necessary for the secure trade with crypto currencies.

Clyde Vanel played a leading role in the passing of the law. The democrat and member of the New York parliament wants to do justice to New York’s role at the top of the country’s financial sector with the new law:

“New York is the country’s financial leader. We will also be a leader in the relevant FinTech regulation. The Task Force will help us strike a balance between a robust blockchain industry and the economic environment. At the same time, we need to protect New York investors and consumers.”

Clyde Vanel (center)

Japan Drowned in Crypto Exchanges

As is well known, Japan is also open to crypto currencies. For some time now, Bitcoin has even been the official currency in the Land of the Rising Sun.

The positive mood now seems to be a disaster for the responsible regulatory authority, the Financial Service Agency (FSA). Since the FSA has given the industry as much freedom as possible in shaping the framework conditions, the authority can hardly save itself from licence applications. By the end of 2018, the authority had received 190 applications for the opening of a licensed crypto exchange. This is reported by the news platform The Crypto Updates with reference to an unspecified FSA employee.

The glut is probably related to reports that Japan’s financial regulators had handed over regulatory responsibility to a group of industry representatives, the Japan Virtual Currency Exchange Association (JVCEA). BTC-ECHO reported.

This unusual step may now have led to the fact that enterprising Japanese people are smelling the morning air and have therefore submitted a series of licence applications.

Freedom for Venezuela: Zcash to save the economy

The aim is to enable Venezuelans to exchange bolivars in US dollars fairly and anonymously with the help of the crypto currency. Thus the anonymous Kryptowhrung for Venezuelans could become a decentralized alternative to the nationally published Petro.

Zcash founder Zooko Wilcox has entered into a partnership with the news spy

For several years now, Venezuela has not only been experiencing political unrest, but also hyperinflation. The Venezuelan bolivar is losing value every day, and at the same time prices are rising, so that even normal earners can hardly afford their daily shopping. As an attempt to remedy the situation, the government has launched Petro, a crypto currency that is supposedly secured by the news spy country’s own oil reserves:

However, there are several problems with petroleum: it is a centralised currency issued by the state. The advantages of decentralised crypto currencies, which people can use to trade independently of financial institutions, are therefore not available to the petroleum. President Maduro is also highly controversial and his government has little confidence among the population. In addition, the Petro trade violates the sanctions imposed by the USA on Venezuela. President Trump has banned all trade in petroleum from his citizens. No good prospects for the state crypto currency.

Anonymous exchange thanks to Zcash

Zooko Wilcox, founder and CEO of Zerocoin Electric Coin Company (ZECC), now wants to help the Venezuelans with his digital money. Zcash (ZEC) is supposed to start where they bring their bolivars into “security”, namely by exchanging them for the relatively stable US dollar. It is not forbidden for them to buy dollars, but it is more difficult. Thus, in addition to the exchange rate on the free market, there is also the “official” rate set by the government, which is much higher. In order to avoid this, the inhabitants must be able to exchange without revealing their identity. Zcash is a crypto currency that offers the option of trading anonymously. Someone who wants to save their earned bolivars from depreciation can now convert them first into Zcash and then into US dollars.

Wilcox has teamed up with the AirTM exchange exchange to implement this. People can deposit their local currency here via various transfer services and keep it in US dollars on their own account. A temporary exchange in Zcash serves as an intermediate step and ensures anonymity during the exchange. A further advantage is the transaction fees, which are significantly lower with Zcash than, for example, with Bitcoin.

The partnership between Zcash and AirTM has already begun and users can now exchange money. The project has no connection to the government bodies or anyone on the sanctions list and does not interact with Petro. Therefore, there should be no reason for the US to stop it. According to AirTM founder Ruben Galindo Steckel, there are no plans to cooperate with Venezuelan banks, companies or the government. The project is aimed exclusively at the people. How the Venezuelan government sees this use of the crypto currency is not yet known.

Waves ends funding round, Bitcoin Cash continues to grow

While Bitcoin, Ethereum and Ripple no longer benefit strongly from yesterday’s upwind, two Altcoins in particular continue to attract: Waves and Bitcoin Cash. The former ended a funding round on 19 December.

Cryptosoft collects 120 million US dollars

It’s a little quieter again at the crypto market on this December 20th. Bitcoin could register a slight plus in the last 24 hours and currently stands at 3,900 US dollars. But the ripple price and the XRP token can no longer profit as much from yesterday’s cryptosoft upswing as reported on: In the last 24 hours, the ripple price rose by almost 2.5 percent to 0.37 US dollars per XRP. Ethereum has also risen slightly in the last 24 hours. The Ethereum exchange rate (Ether) is currently at 105 US dollars with a soft three percent plus.

In a blog post on 19 December, the Waves team announced that it had expanded. By adding the Vostok project, the company was able to raise an additional $120 million.

Bitcoin Cash rises to 4th place

Meanwhile, BCH manages without any big fundings or small announcements on Medium. Even the winner of the last Hash Wars was able to win a lot in the last 24 hours. Currently, the BCH rate is 147 US dollars, which puts it in 4th place among the crypto currencies. The disgusted step sibling “Satoshi’s Vision” meanwhile counts his days on place 9, but could also make up a good nine percent in the last 24 hours.

The new Vostok platform will give the Waves project a scalable digital infrastructure. This consists of the private Vostok Blockchain and the “Vostock System Operator”. At the start of the project, all Waves Holders will also benefit from an Airdrop that distributes Vostok System tokens.

According to the announcement, the Vostok System Operator will provide a digital infrastructure focused on the registration and tracking of data.

This – combined with the $120 million – immediately impacted the Waves exchange rate. This rate has risen by 16 percent in the last 24 hours and currently stands at 4.19 US dollars.

Hyperledger welcomes Telekom and Alibaba as new Bitcoin formula members

Hyperledger, an open source project for cross-industry blockchain solutions, announced on December 12 that it had welcomed a total of twelve new members.

These include Bitcoin formula industry leaders such as Alibaba Cloud, Citi, and the telecommunications giant Deutsche Telekom

At the Hyperledger Global Forum in Basel, board member Brian Behlendorf confirmed high-grade offspring for the Hyperledger Bitcoin formula consortium: “We start the Global Forum with a bang, an impressive line-up of Bitcoin formula members. The growing Hyperledger community reflects the growing importance of open source efforts to build enterprise blockchain technologies across all industries and markets. Recent members demonstrate the growing interest and impact of DLT and Hyperledger.”

As the official announcement also shows, the collaborative blockchain project now has more than 260 members. The newest members include:

Alibaba Cloud
BlockDao Information Technology
German Telekom
Guangzhishu Technology Co.
Guangzhou Technology Innovation Space Information Technology Co., Ltd.
KEB Hana Bank
Techrock (former Walimai)

New members euphoric about their accession

In principle, the consortium is open to all members – whether industry, non-profit organisations or government institutions: Everyone can participate. The consortium also enables companies to develop industry-specific applications, platforms and hardware systems that support their individual business processes. They provide DLT solutions and open source code for this purpose. Accordingly, John Calian, head of Telekom’s T-Labs, is pleased about the membership of the German telecommunications giant:

“The development of our wholesale roaming application on Hyperledger Fabric was an obvious decision. Hyperledger Fabric offers business customers such as Deutsche Telekom and our partners an approved open source development ecosystem that integrates production-ready identity management and sophisticated confidentiality concepts for multi-stakeholder environments. That’s exactly what enterprise customers need to turn their distributed visions into reality, and that’s why we’re excited to be part of the community.”

Yi Li, Alibaba’s leader, is also excited about joining his company:

“We are very excited to join Hyperledger. As one of the world’s three leading IaaS providers, Alibaba Cloud strives to provide the best possible service with the highest esteem for all customers. Alibaba Cloud’s Blockchain as a Service (BaaS) is dedicated to providing a globally useful and reliable infrastructure. In addition to focusing on the underlying technology, we would also like to invite other partners to join us and work together to create a larger blockchain business world.”

Crypto Trader and the Bitcoin Prize: Is there a connection?

After weeks of calm around the Bitcoin price, the Bitcoin price reached the 257 US dollar mark again for the first time on 17 June.

Market observers paid particular attention to the pace at which the share price rose on 16 June between 13:00 and 15:00 UTC. Although such price fluctuations are not uncommon in the Bitcoin industry, the recent uptrend has seen speculation of a larger market movement.

One of the best-known theories for the sudden rise in Bitcoin’s price is timing with the possible imminent Grexit should Greece fail to meet its commitments.

This crypto trader behaviour in relation to international crises is not a new phenomenon in the Bitcoin industry:

Already during the Cyprus crisis in early 2013, Bitcoin and other crypto trader currencies were used as protection against price fluctuations of the Fiat currencies and the crypto trader exchange rate recorded an extreme rise.

Joshua Scigala, CEO of Bitcoin/Gold exchange platform Vaultoro, agrees that there may be a connection between the current price development and the possible Grexit, if only psychologically:

“It’s a typical meeting point. During the Cyprus crisis, not all Cypriot citizens exchanged their money directly for Bitcoin. It was more like many said ‘Hey look, Cyprus is in trouble and we are seeing a rise in Bitcoin and other assets’.

Bitcoin price

Nevertheless, the connection between the Bitcoin price rise and the possible Grexit was very quickly picked up by the press and Reuters also published an article on the current discussion.

UK Digital Currency Association Chairman Paul Gordon believes, however, that it was simply a coincidence that the Bitcoin price skyrocketed at a time when speculations about a possible Grexit were growing louder. “There is simply too little evidence. Of course, it’s nice to be able to say that the price per bitcoin has risen due to the Greek crisis, but it could just as well have gone down.”

Nevertheless, the question is whether the months long downward trend since the Bitcoin high in 2013, with the recent price rise has found its turnaround.

It is probably still too early to say whether the recent price movement indicates the awakening of a giant, or whether it was just a loud snoring of the giant in deep sleep.

Analyst optimistic about Bitcoin loophole – 50 percent opportunity

Analysts from well-known financial institutions and Bloomberg believe that the probability of success of the Winklevoss Bitcoin ETF COIN is now relatively high. The reason lies in the unpredictability of the US Securities and Exchange Commission (SEC).

There are many more parts of the Bitcoin loophole that are under development

Some of these parts could have a major impact on the Bitcoin loophole welcoming the world’s first Bitcoin loophole. Other parts, on the other hand, could completely eliminate the likelihood of getting through.

Based on the SEC’s previous decisions regarding innovative ETFs, it is difficult to say to what extent confirmation of the Winklevoss ETF can be achieved. But the involvement of a respected 30 billion US dollar financial institution, the participation of independent analysts, and Quant Trader from KCG and Susquehanna give hope.

In recent years, Bitcoin has made a name for itself as digital gold. However, it is still in the process of fulfilling its technical potential to become an efficient and affordable processing network. For this reason, the majority of Bitcoin users use the current Bitcoin network as a means of protecting their wealth or carrying out large transactions that would not have been possible without a middleman.

Why analysts believe in the Bitcoin ETF

As Bloomberg Intelligence senior ETF analyst Eric Balchunas said, the SEC has already introduced ETFs in the past that have not yet opened a new market and at the time did not arouse any interest in the industry. One example is the ETF ASHR, which was approved by the SEC authority before US companies got into action.

Balchunas said:

“The probabilities are so high. You get possible regulatory, financial and security problems, but ETFs have a long history of opening up new markets because of that. A great example of an ETF approved by the SEC is ASHR. It was approved before the US companies really knew about it.”

As Spencer Bogart, Vice President of Equity Research at Needham & Co, already mentioned, the opportunities for the Bitcoin ETF are almost equal. This can be deduced precisely from the fact that the officials at the SEC would not receive any advantage/disadvantage from the ETF. Should the ETF fail and destabilize the market, however, the officials will be called to account.

Until the deadline Bachunas sees the chance for the Bitcoin ETF at about 50 percent. The Bitcoin industry and community are quite optimistic about the Bitcoin ETF. This is mainly due to the work the Winklevoss twins are putting into it, as they have now even commissioned a reputable financial institution on State Street to maintain and audit the ETF.

One advantage Balchunas sees in the ETF is the lower premium you pay over other public Bitcoin instruments. As you can see on the Bitcoin over-the-counter (OTC) market, instruments like the Bitcoin Investment Trust (GBTC) are traded at high premiums on the large regulated markets.

GBTC is currently traded at USD 129 per share, which corresponds to a price of USD 1,290 per Bitcoin. At editorial time, a Bitcoin is traded at 1,250 US dollars.

“If it’s a bit like high-yield bonds, you would have to trade Bitcoin ETFs at a premium of 1 to 2 percent, which would still be better than the OTC market,” Balchunas finally added.

The Future of Bitcoin Development: BitMEX Saws at the Chair of Bitcoin Core

Bitcoin Core: It is well known that competition stimulates business. This must have been what the employees of the research department of the BitMEX crypto exchange must have thought when they started to set up their own client for the further development of Bitcoin. With the new client, BitMEX wants to demonstrate that the supposed dominance of the Bitcoin core implementation is not carved in stone.

Bitcoin Core is still the most common implementation of Bitcoin. More than 95 percent of nodes on the network use Bitcoin Core, which is based on Satoshi Nakamoto’s original reference code. BitMEX’s research department has now investigated how to increase competition in development without compromising the crypto currency through events such as chain splits.

More than 9 out of 10 nodes run with Bitcoin secret

BitMEX first analyzed which forms of competition exist in the further development of the protocol. According to the analysis of the Crypto Exchange, projects competing with Bitcoin secret can largely be divided into two categories:

Competition between different chains

This category includes software projects that provide new rules for consensus building for existing implementations of the protocol. These can be soft and hard forks. An example of competing chains is the Bitcoin ABC vs. Bitcoin SV debate at BCH. BitMEX describes this approach as “risky”, as it can possibly lead to a chain split. This is also feared by BCH. Other examples of this approach are Bitcoin UASF and BTC Classic.

Competition between independent implementations
Another approach is to implement the Bitcoin Core protocol on a new code basis. This re-implementation must include the same consensus-building rules as Bitcoin Core. Nevertheless, there may be conflicts in the consensus mechanism if the re-implementation behaves differently than the dominant client of the network due to its different code base. In the worst case, a chain split can also occur here. Examples for the re-implementation of the Bitcoin Core protocol include BTCD, Libbitcoin and bcoin.

The third way
BitMEX is looking for a third way to compete with Bitcoin Core. Neither the consensus rules nor the code base of Bitcoin Core should be touched. Instead, a software fork is carried out. This bears the – not exactly original – Bitcoin BitMEX Research. The client should illustrate that a healthy form of competition is possible with Bitcoin Core. It also aims to prove that Bitcoin’s fate is not inextricably linked to the Bitcoin Core client. After all, each node operator has the free choice of which implementation to choose. And this corresponds to the Bitcoin ideal rather than constantly focusing on a supposed Bitcoin core development team.

FinHub: New SEC branch office for Bitcoin regulation

Bitcoin, regulation and the SEC: The US Securities and Exchange Commission announced the launch of the Strategic Hub for Innovation and Financial Technology on 18 October. The so-called FinHub is an outsourcing of some internal departments at the SEC, which is to be relieved.

Bitcoin, crypto currencies, blockchain technology and regulation are a pair that is still struggling. New information about Bitcoin’s regulation is constantly being added to the news columns. However, a final agreement is still not in sight. A new department of the SEC is therefore to take some countermeasures in the future.

The tasks of the new FinHub

In future, the Securities and Exchange Commission will outsource part of its work. The authority, which among other things deals with regulatory issues relating to Bitcoin & Co., will be relieved of its responsibilities by the FinHub. Its tasks are:

Provision of a portal for industry and the public on which it will be possible to discuss innovative ideas and technological developments directly with SEC staff;
Provide information on the SEC’s activities and initiatives with FinTech;
Inform the public through publications and events. (Including a FinTech Forum focusing on distributed ledgers and digital assets).

To act as a platform and clearing house for SEC staff to acquire and disseminate information and FinTech-related knowledge within the Agency.

To serve as a liaison with other national and international regulatory authorities regarding new technologies in financial, regulatory and supervisory systems.
Bitcoin regulation to become more centralised in the future

Rejoicing: SEC chief Clayton

Valerie A. Szczepanik will head the SEC’s FinHub. In addition the chairman of the SEC:

“The SEC is committed to working with investors and market participants on new approaches to capital formation, market structure and financial services to improve investor protection and not reduce it in any way. The FinHub is a key focus for our efforts to monitor and promote innovation in securities markets that are promising, but also require a flexible and rapid response from regulators to fulfill our mission.

SEC Chairman Jay Clayton.

This will make the regulation of Bitcoin and Co. somewhat more centralised in the future. Further information can be found in the official press release and on the FinHub homepage.