Former chair of the FDIC, Sheila Bair, writes on the viability of CBDCs and their need for further investigation.
Eric van Miltenburg, the Senior VP of Ripple, believes that South Korea needs to relax some of its more stringent cryptocurrency laws. He made his views known in a recent phone chat with The Korea Times. He also said the emerging digital currency landscape could propel the country into becoming a global economic powerhouse.
Encouraging the Nascent Cryptocurrency Market
Miltenburg stated the need for cryptocurrency regulations that promoted the market rather than stifling its growth, saying:
We think it needs to be a regulation that bounces, that protects consumers without stealing or prohibiting innovation.
He urged the South Korean government not to be one of those countries who only focus on the negative aspects of emerging technologies. In September 2017, ICOs were banned in South Korea followed by a raft of other strict cryptocurrency regulations.
We’ve seen that in other countries and in other technologies where you found a bounce. Frankly, if you think back to the early age of the internet, some people only looked at the negative aspects of the internet saying we should shut it down for a while until we figure out what’s going on, and what’s good and what’s bad.
Miltenburg went to say that the country would benefit more from identifying “specific use cases and applying regulations in areas that would allow protection for users.”
South Korea Stands to Gain a Lot from Blockchain and Cryptocurrency
Since the ICO ban, blockchain startups have moved their projects to friendlier countries like Singapore and Switzerland. Miltenburg believes that South Korea would do well to stem the tide by reversing the ICO ban. The country boasts the third-largest cryptocurrency market by volume, but its strict regulations might be standing in the way of even more significant growth.
Thus, in recent months, the countries legislature has taken steps to reverse the ICO ban. Earlier in June, the country’s apex court also ruled that Bitcoin is an asset. Miltenburg believes South Korea can use the cryptocurrency market as a springboard to becoming a dominant force in the global financial market.
Ripple – Korea University Partnership
Miltenburg also spoke about the Ripple collaboration with universities across the globe including the Korea University. The institution already has its blockchain security study center with Ripple as its partner. The center will focus on studying the security of blockchain technology algorithms.
According to Miltenburg:
We are looking for schools already involved in blockchain that have some professors that have seen the potential of [the] blockchain. We wanted to help accelerate what those faculties and administrators are trying to do.
Do you agree with Miltenburg’s notion that South Korea needs more crypto-friendly regulations to benefit from the technology? Share your views with the community in the comment section below.
Images courtesy of Twitter/@ericvanm, Pexels
The post Ripple VP Calls for More Cryptocurrency Friendly Regulations in South Korea appeared first on Bitcoinist.com.
Bitcoin Price Key Highlights
- Bitcoin is still inside its descending triangle visible on the daily chart.
- Price is testing support and is approaching the peak of the formation to signal an imminent breakout.
- Technical indicators appear to be favoring a downside move and a selloff.
Bitcoin is testing the bottom of its descending triangle on the daily chart and could be due for a breakout soon.
Technical Indicators Signals
The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, a downside break is more likely to occur than an upside break.
In that case, bitcoin price could tumble to the next potential support zones at $4,000 then $2,000. On the other hand, an upside break could still find resistance at the moving averages but the rally could potentially last by the same height as the chart pattern.
RSI is heading lower to signal that sellers have the upper hand. However, this oscillator is dipping into oversold territory to signal a slowdown in selling pressure. Turning back up could bring buyers in again.
Stochastic is also moving south and has more room to fall before hitting oversold levels. This suggests that bears could stay in control of bitcoin price for much longer.
Bitcoin price encountered another wave of selling pressure when it was reported that a small South Korean exchange was hacked. Coinrail tweeted over the weekend about the breach and reported that only lesser-known altcoins like Pundi X were affected. Still, investors couldn’t help but revisit security concerns in the overall industry.
Meanwhile, the dollar is facing the upcoming FOMC decision during which a rate hike would likely be announced. More hawkish remarks could boost the dollar further against bitcoin while cautious comments on future tightening could dampen gains.
The post Bitcoin (BTC) Price Watch: Can Bulls Defend the Triangle Bottom? appeared first on NewsBTC.
- Ripple price declined sharply and broke the $0.65 and $0.62 support levels against the US dollar.
- There was a break below a major bullish trend line with support at $0.66 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair may decline further if it fails to hold the $0.55 support area in the near term.
Ripple price crashed and broke many supports against the US Dollar and Bitcoin. XRP/USD could accelerate declines if buyers fail to defend $0.55.
Ripple Price Decline
During the past few hours, there was a sharp downside move from well above $0.68 in Ripple price against the US Dollar. The price broke down and cleared many supports on the way down such as $0.6500 and $0.6200. There was also a break below the $0.6000 handle, which opened the doors for more losses. The current price action is very bearish with a negative bias below the $0.6000 handle.
During the decline, there was a break below a major bullish trend line with support at $0.66 on the hourly chart of the XRP/USD pair. The pair declined and traded close to the $0.5500 level. A low was formed near the $0.5550 level where buyers emerged and protected further declines. At the moment, the price is correcting higher and is trading near $0.5650. An initial resistance is around the 23.6% Fib retracement level of the last decline from the $0.6792 high to $0.5551 low. Above this, the broken support near the $0.6000 handle may act as a resistance.
Looking at the chart, the price is clearly in a bearish zone below $0.6000. It may continue to move down if sellers remain in control below $0.5800. A break below the $0.5500 support may push the price towards $0.5000.
Looking at the technical indicators:
Hourly MACD – The MACD for XRP/USD is mostly in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now near the 30 level.
Major Support Level – $0.5500
Major Resistance Level – $0.6000
The post Ripple Price Analysis: XRP/USD Could Revisit $0.50 appeared first on NewsBTC.
SEC letter confirms “on-going enforcement proceedings” related to the Nasdaq-listed prospector.
- ETH price declined sharply and traded below the $540 support area against the US Dollar.
- There is a connecting bearish trend line forming with resistance at $560 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair may correct a few points in the short term, but upsides are likely to be capped by $560.
Ethereum price declined heavily against the US Dollar and Bitcoin. ETH/USD almost tested the $500 level and is currently in a bearish zone.
Ethereum Price Decline
There was a nasty decline in ETH price from well above $600 against the US Dollar. The price traded lower by more than $100 and crashed below many support levels. It declined below the $570, $540 and $525 support levels to move into a bearish zone. It almost tested the $500 level and is currently struggling to recover. The recent low was formed near the $506 level, which means close to the last swing level.
An upside correction is underway, which could lead the price towards the $530 level. An initial resistance is near the 23.6% Fib retracement level of the last decline from the $608 high to $506 low. Above this, there are many hurdles near the $560 level. There is also a connecting bearish trend line forming with resistance at $560 on the hourly chart of ETH/USD. Moreover, the 50% Fib retracement level of the last decline from the $608 high to $506 low is also near the same level.
Looking at the chart, the price may correct a few points in the short term, but it could face a lot of barriers near $540 and $560. On the downside, the recent low of $506 is a short-term support. Below this, the price may even break $500.
Hourly MACD – The MACD is placed heavily in a bearish zone.
Hourly RSI – The RSI is currently placed near the oversold levels with a lot of bearish signs.
Major Support Level – $500
Major Resistance Level – $560
Bitcoin has taken a serious beating in the last 48 hours with significant drops happening in two legs plunging the price from just above $7,600 to $6,784 at the time of writing according to livecoinwatch.com. That is a 7.9% loss in 24 hours for BTC but as coins have remained closely correlated in this market where Bitcoin goes the rest follow, every altcoin in the top 100 is showing red this morning on coinmarketcap.
As always the cryptomarket is a volatile space where trading trends are created by emotion as much as any actual outside force but in the case of this weekends carnage, there are at least two contributing factors to blame. First and foremost is the news that another South Korean exchange has been hacked.
Coinrail, a relatively small exchange but still ranked among the worlds top 100 reported at first that it was reviewing its system due to a “cyber intrusion” and later revealed that $40 million in altcoins had been stolen from user accounts, similar to Japan’s Coincheck hack earlier this year.
해킹공격시도로 인한 시스템 점검중입니다. 일부코인(펀디엑스,NPXS)이 확인되었으며 추가적인 코인피해가 있는지 여부를 확인중입니다. 추후 자세한 사항은 재공지하겠습니다 / There has been an cyber intrusion in our system. We’re confirming it and some coins(Pundi X, NPXS) are confirmed.
— coinrail (@Coinrail_Korea) June 10, 2018
Though the exchange is small and even the $40 million is a low number compared with other hacks the carry on effect can be serious. South Korea has been the third largest market for Bitcoin trading in the world after Japan and the US and has also suffered several major exchange hacks resulting in both fear driven activity on the trading side and calls for more stringent regulation from the government.
This leads to the second factor of regulatory uncertainty which has had an overhanging effect on trading throughout the year but may be coming to a head soon. Since the unprecedented bull market of 2017 came to a crashing halt the threat and hand-wringing of government agencies around the world have caused dips and spikes in the market everytime an official makes a statement concerning the status of Bitcoin or the legality of ICO’s.
For many analysts, June has been a target month for US regulatory questions to be answered due to the movement of institutional money into the crypto space marked by Goldman Sachs launching Wall Streets first ever digital assets trading desk. However ongoing investigations by both the Securities Exchange Commision and the Commodity Futures Trading Commission continue to shake potential traders confidence in cryptocurrencies.
Coming Clarity May Boost Market Price
There is some good regulatory news on the horizon though as the Global Times, owned by China’s official communist party newspaper People’s Daily hinted China may be ready to overturn its February ban on Bitcoin as it ran an editorial which read “It’s time for China to lay the regulatory groundwork for its rise as a future digital currency trendsetter”
Whether Bitcoin can come bounding back from this weekend to reach the kinds of highs in June that bulls like Tom Lee have been predicting for months is unsure but with some clarity coming out of the US and the general push of institutional money especially flowing into the Bitcoin futures market there is every indication that recovery could be swift as the price of Bitcoin has already moved back into the green.
The post Bitcoin Took a Beating but Should be Bouncing Back appeared first on NewsBTC.
A Russian county website was hijacked, redirecting visitors to a cryptocurrency mining malware site.
Recent remarks from CFTC Commissioner, Rostin Behnam, reveal that US regulators are realizing that Bitcoin and cryptocurrencies are here to stay because they’ll “become a part of the economic practices of any country, anywhere.”
‘We Are Witnessing a Technological Revolution’
The CFTC Commissioner gave the remarkable speech on June 4th in New York City at the BFI Summit event titled “Fostering Open, Transparent, Competitive, And Financially Sound Markets.”
Behnam outlined the agency’s stance on the burgeoning Bitcoin and cryptocurrency space, admitting that regulators around the globe are scratching their heads when it comes to how to stop fraud and manipulation that is not uncommon in this nascent industry.
“The debate on virtual assets is just beginning,” he notes. “None of us know where it will end. But it has forced us to rethink. We have learned that virtual assets respect no borders. Regulation is often behind the curve, unable to keep up with daily developments.”
Considering the apolitical, borderless and decentralized properties of cryptocurrencies like Bitcoin, the commissioner admitted that the cat is out of the bag and the technology is here to stay.
According to Benham:
[V]irtual currencies may – will – become part of the economic practices of any country, anywhere. Let me repeat that: these currencies are not going away and they will proliferate to every economy and every part of the planet. Some places, small economies, may become dependent on virtual assets for survival. And, these currencies will be outside traditional monetary intermediaries, like government, banks, investors, ministries, or international organizations. We are witnessing a technological revolution. Perhaps we are witnessing a modern miracle.
‘Blockchain is More Than a Technology’
The commissioner echoed the positive statements of CFTC chairman, J. Christopher Giancarlo, who urged the government to take a “no harm approach” back in February. What’s more, Behnam believes cryptocurrencies could become a powerful tool to reduce poverty and corruption with its open-access technology and transparent ledger.
“The so-called ‘unbanked’ could now be on the virtual grid,” he explains. “And, those without computers, some four billion people, could gain an important connection through cell phones.”
Conversely, the commissioner warns that cryptocurrencies could be a “possible danger” if they fall into the hands of the “kleptocracy.”
“[T]hen [the kleptocracy would] simply accumulate more wealth at the expense of their citizens, draining wealth in cryptocurrencies rather than dollars or euros,” Behnam warns.
At the same time, current law in the United States does not give any US regulator authority over spot virtual currency platforms operating in the United States (e.g. Bittrex, Poloniex, Coinbase) or abroad (e.g. Binance, Bitfinex).
Nevertheless, the CFTC does have authority under the Commodities Exchange Act (CEA) over derivatives on cryptocurrencies traded in the US. Therefore, it can take action against wash trading and prearranged trades on cryptocurrency exchanges.
But because cryptocurrencies are borderless and outside of any government control, Behnam believes that there must be a coordinated effort on a global scale to educate the public through the agency’s international project named “LabCFTC.”
“We need to think about how to make this work internationally!” he said, calling on the effort to be undertaken on a “large, perhaps unprecedented scale.”
Blockchain is more than technology: it is an advance that reaches out into every aspect of life.
As a young child, I would come to this building in search of solutions to the problems of the world. Now, today, we may have found one of those solutions – bigger, bolder, more comprehensive, and more effective than anything imagined before. And, as a regulator, I am pleased to be part of your discussion.
What do you think about the CFTC commissioner’s statements? Share your thoughts below!
Images courtesy of Pixabay, Shutterstock, Wikimedia Commons
The post CFTC Commissioner: Bitcoin, Cryptocurrencies Are Not Going Away appeared first on Bitcoinist.com.
Bitmain, the world’s largest mining equipment manufacturer, may soon go public with its company. The move could propel the Chinese firm to one of the world’s most valuable companies.
Bitmain’s IPO Push
Speaking to Bloomberg, Jihan Wu, the founder of Bitmain, revealed that he is pursuing an expansion beyond the cryptocurrency sector, and this may subsequently lead to an initial public offering (IPO).
In 2017, Bitmain booked revenues of $2.3 billion selling mining rigs. Part of the company’s success is attributed to its powerful monopoly in the domain – Nvidia, AMD, Canaan, and Bitfury are the only other large firms present.
According to a February 2018 report from Sanford C. Bernstein & Co, Bitmain dominates the cryptocurrency mining sector with over 80 percent of the market share. Additionally, the firm’s operating profit is close to Nvidia, as per “ the most conservative estimate.”
Bitmain market share
Wu and co-founder Micree Zhan own 60 percent of Bitmain, giving them a combined worth of over $1.8 billion. If the planned IPO does take place in the future, Bloomberg estimates a company valuation of $8.8 billion, and the founders’ net worth at $5.3 billion.
As it stands, an IPO would assign a value to Bitmain, which has historically refused to comment on its valuation – all stated figures are mere guesswork.
If executed, the development will signify a more significant achievement in general and prove to regulators, investors, and venture capitalists that cryptocurrency firms are more than a flash in the pan. Besides, the move could catalyze the regulation of cryptocurrencies, as high-profile institutional investors would inevitably push the government to introduce legislation.
The company is also reportedly foraying into artificial intelligence, among other areas. The move further adds to Bitmain’s potential IPO as regulations for sectors outside of blockchain technology and cryptocurrencies are well defined.
As reported by BTCManager in May 2018, Bitmain’s competitor Canaan has already filed for a Hong Kong IPO. Industry observers estimate the latter to raise $1 billion in the offering. It should also be noted that Bitmain’s revenue is over twelve times that of Canaan’s
The company’s dominance has been met with resistance from cryptocurrency purists, who believe that its highly centralized role in the ecosystem is detrimental for bitcoin and other cryptocurrencies as a whole.
While the company makes most of its fortune be selling mining equipment, it runs one of the biggest mining pools in the world. Bitmain Technologies’ AntPool and BTC.com are estimated to have 40 percent hash power of the total Bitcoin protocol.
Bitcoin mining pool estimates
The graph evidently shows a concentration of power in contrast to the industry’s decentralized ethos. However, Bitmain has maintained that it will never reach a majority in the network and that bringing the network down would be fatal to their business.
Another cause of concern to the IPO itself is the thinning profits from mining caused by the protocol’s increasing difficulty. This increasing difficulty augments the miner’s electricity usage while generating incentives which barely break even. Additionally, Mark Li of Bernstein thinks that venturing into AI may not reap the same revenues for Bitmain, as the industry has far greater competition than mining.
The post Bitmain Considers Billion Dollar IPO after Expansion in Other Sectors appeared first on BTCMANAGER.