Welcome to Cryptocurrency News 29th Oct, 2017. Here, we cover the most important news of the day in brief. We also provide insights on their probable effect on the cryptocurrency market and its future. Subscribe us to stay informed.
- #1 ICOs a Vehicle For Fraud says SEC Enforcement Division
- #2 Ethereum Name Service (ENS) gains traction
- #3 Bitcoin Traders can profit from market volatility and Illiquidity
- #4 Vietnam Bans Cryptocurrencies
- #5 Bitcoin Low Risk For Money Laundering, High For Cybercrime: UK Treasury
- #6 Chinese Might be Able to Trade Bitcoin Again Soon
- #7 SegWit2x hard fork and B2X
- #8 Putin Orders Parliament to Regulate ICOs
- #9 Bitcoin Forks to Influence Bitcoin Price Rise and Fall?
#1 ICOs a Vehicle For Fraud says SEC Enforcement Division
- Commission sees the need for strict digital enforcement when it comes to ICOs.
- Considers creation of a permanent structure do mitigate the dangers.
- SEC has already made it clear that they will treat tokens as securities.
Governments are increasingly seeing the need for oversight when it comes to ICOs or cryptocurrencies by way of taxation. Some system to protect investors from fraudulent ICOs might be a good thing for the overall increased adoption of cryptocurrencies.
#2 Ethereum Name Service (ENS) gains traction
- Ethereum Name Service (ENS) launched on mainnet on May 4, 2017.
- Ethereum users can choose a name with a.eth ending and have Ether sent to them much like sending an email.
- Anyone can purchase a .eth addresses of at least seven characters in length through an auction based system.
- Prices for these extensions are moving and are being held for future sales by investors.
- New service providers are making it possible for the resale of such addresses.
With the address transforming from a string of numbers to letters, users will be very much inclined to buy them. This might not be very attractive people or organisations that want to keep anonymity.
#3 Bitcoin Traders can profit from market volatility and Illiquidity
- Cryptocurrency markets are often volatile and suffer from periods of limited liquidity.
- Mean-reversion strategies are suited for high volatility markets and can be adjusted for trends.
- Illiquidity, matching inefficiencies and unstable spreads are common to cryptocurrencies.
If you are interested to try this strategy out, read it here.
#4 Vietnam Bans Cryptocurrencies
- Vietnam’s central bank, State Bank of Vietnam has declared the use of digital currencies in the country as illegal.
- The central bank also announced that it will impose a fine on anyone caught utilizing the cryptocurrencies starting early 2018.
#5 Bitcoin Low Risk For Money Laundering, High For Cybercrime: UK Treasury
- The National Crime Agency NCA has assessed the risk of digital currency use for money laundering to be relatively low.
- While the money laundering risk is relatively low, the usefulness of Bitcoin for cybercrime is comparatively higher.
- First, cryptocurrencies provide a simple way for criminals to demand payment.
- Second, they facilitate ‘crime-as-a-service’ methodologies among criminals.
- Third, they provide a method for laundering the proceeds of cyber crime.
The conclusion of the report suggests:
“These risks are expected to grow as digital currencies become an increasingly viable and popular payment method. As the number of businesses accepting digital currency payments grows, there is an increasing risk of criminals using the currencies to launder funds without needing to cash out into non-digital, or ‘fiat’ currencies.”
#6 Chinese Might be Able to Trade Bitcoin Again Soon
- On Oct. 28 ZB.com, which is a new cryptocurrency trading platform, announced that all trading functionality will be available from Nov. 1. Users can sign up for accounts and deposit now
- Since the shutdown of Bitcoin trading platforms in China, people have started to trade Bitcoin through Taobao, which is the Chinese version of eBay which belongs to Alibaba Group , Wechat chatting group, and QQ chatting group.
- Offline trades have become popular between Chinese Bitcoin traders.
Wider acceptance of Bitcoin will easily ensure the upward price movement of Bitcoin.
#7 SegWit2x hard fork and B2X
- A group of Bitcoin companies and miners plans to double Bitcoin’s block weight limit as per the New York Agreement.
- SegWit2x fork would result in two different blockchains and two different currencies.
- Bitcoin exchanges play a major role: they list the currencies under specific names.
- In Bitfinex: original chain is “BTC”, SegWit2x chain is “B2X”
- In, BitMEX: original chain is “BTC”, and no B2X support.
- Bitstamp has not yet made any public statements concerning the SegWit2x fork.
- In GDAX: hash power decides which chain is “BTC”
- Kraken has not yet made any public statements concerning the SegWit2x fork.
B2X does not offer replay protection, so it is advised to exercise caution.
#8 Putin Orders Parliament to Regulate ICOs
- Regulations that bring ICOs in line with existing laws governing securities, to come up.
- Require Russian cryptocurrency mining operations to register with the government.
- Appropriate procedure for the government to tax income garnered from cryptocurrencies.
- Establish a regulatory sandbox that will allow the central bank consider additional regulations for cryptocurrencies and other fintech products.
- Probable launch of the “cryptoruble”, a state-controlled cryptocurrency.
Critics argue that this policy, if implemented, will allow the government to profit from money laundering operations and other financial crimes.
#9 Bitcoin Forks to Influence Bitcoin Price Rise and Fall?
- Bitcoin price reached a new all time high on Oct. 20, 2017 -5 days before the Bitcoin Gold fork.
- Once a chain splits, you suddenly own a number of split tokens equivalent to the number of tokens you had on the Bitcoin network. T
- This is because the new chain will be an exact copy of the Bitcoin Blockchain up until the point where the fork occurs.
- Whales are individuals who hold positions so large in the Bitcoin market, that their bid and ask orders are capable of shaking up the market.
- To understand how whales play during the forks, read this article.
Disclaimer: Our views are only in good faith and should not be regarded as “investment advice” and Coin Frog cannot be subjected to any kind of liability.