Major changes are happening in the cryptocurrency space in Japan as new cryptocurrency regulation enters into force today. Among notable changes are the regulation of crypto custody service providers and crypto derivatives businesses. Japan has 23 regulated crypto exchanges; unregulated platforms have modified their terms of service affecting Japanese residents.
Japan Adopts New Way to Regulate Crypto Industry
The amendments to the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA) that revise the regulatory framework for cryptocurrency in Japan go into effect on May 1. They were proposed by the country’s top financial regulator, the Financial Services Agency (FSA), and adopted by the Diet on May 31 last year. The finalized rules were published on April 3 along with the FSA’s answers to public comments. International law firm Morrison & Foerster described:
The regulations coming into effect as of May 1, 2020, represent a significant change in the way the FSA will regulate cryptocurrency-related business activities of operators in Japan going forward.
Among the major changes are the regulation of cryptocurrency custody service providers that do not sell, purchase, or intermediate the sale and purchase of cryptocurrencies and cryptocurrency derivatives businesses. The former now falls under the PSA while the latter must register under the FIEA. A crypto derivatives business that also provides crypto custody service may need to register as a cryptocurrency exchange. In addition, the FSA previously explained to news.Bitcoin.com the implication of the new law on the possibility of a bitcoin exchange-traded fund (ETF) being approved in Japan.
The amendments “are quite extensive and many issues regarding the scope, applicability, and relevance of the regulations remain open to interpretation,” the law firm opined. The regulatory changes are summarized here.
Japan’s new cryptocurrency regulation enters into force today. Crypto custody service providers and crypto derivatives businesses are now regulated under the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA), respectively.
Japanese Cryptocurrency Landscape Changing, Unlicensed Crypto Exchanges Exiting
Japan currently has 23 FSA-approved cryptocurrency exchanges. As the new regulation takes effect, unlicensed crypto trading platforms modify their terms of service to exclude Japanese users in compliance with the new law.
Global cryptocurrency exchange Bitmex, for example, announced that it would stop providing services to Japanese residents starting from 11 p.m. JST on April 30 for first-time registered users and 12 a.m. on May 1 for existing registered users. “We are restricting access to users who are Japan residents,” the exchange confirmed on Tuesday, adding:
The restrictions are in response to the amendments to the Japan Financial Instruments and Exchange Act and Japan Payment Services Act effective as of 1 May 2020.
“We will continue to work with the Japanese regulatory authorities to support their aims for the Japan market and will keep our Japan users updated,” Bitmex wrote.
Furthermore, the FSA announced on April 30 that it has approved two self-regulatory organizations (SROs) in the crypto sector: the Japan STO Association and the Japan Virtual and Crypto Assets Exchange Association (JVCEA). These organizations work closely with the FSA to enforce strict standards on the country’s crypto sector.
What do you think about Japan’s new cryptocurrency regulation? Let us know in the comments section below.
U.S. President Donald Trump now has an unexpected challenger as the independent congressman from Michigan, Justin Amash, says he plans to run as a Libertarian candidate in the 2020 election. Besides John McAfee and Adam Kokesh, Amash is also a pro-crypto candidate, a believer in free markets, and has spoken positively about bitcoin seven years ago.
Is Trump’s Future Threatened by a Libertarian Candidate?
Justin Amash is pushing toward a third-party run for the President of the United States in 2020. Many believe Amash could add some heat to the presidential race by taking votes away from both the Democrat Joe Biden and Republican President Trump. After the popular candidate Andrew Yang left, there were only two candidates remaining who support cryptocurrencies; John McAfee and Adam Kokesh. However, with Amash running it would add another person who thinks positively about bitcoin and blockchain solutions. Amash is also well known for his staunch views toward upholding the U.S. constitution and limiting the role of government.
Justin Amash.
“Today, I launched an exploratory committee to seek the Libertarian Party National’s nomination for President of the United States,” Amash tweeted on April 28. “Americans are ready for practical approaches based on humility and trust of the people.” Amash continued:
We’re ready for a presidency that will restore respect for our constitution and bring people together. I’m excited and honored to be taking these first steps toward serving Americans of every background as president.
Amash Aims to ‘Defend the Constitution and Put Individuals First’
The 40-year-old Michigan lawmaker is currently an independent, and he left the Republican party last year. In 2013, Forbes Magazine’s official Twitter account tweeted about bitcoin, and Amash tweeted back a response. “Congress is nervous about this whole Bitcoin thing,” Amash said at the time. His new website, amashforamerica.com, explains that Amash wants to bring something new to Americans.
“[Justin Amash] is for something new,” the website explains. “For a government that secures our rights. For equality before the law. For an end to cronyism. For a government that fulfills its purpose and recognizes its limits. For practical approaches based on humility and trust of the people. For an honest, principled president who will defend the constitution and put individuals first.”
Despite the fact that Amash speaks often about being pro-liberty, not all Libertarians believe he is legitimate. Anarcho-capitalists and even members of the Libertarian party do not see real change in Amash, and the decisions he’s made as a Republican. Then again, a lot of libertarians do like Amash and are hopeful he will be better than Gary Johnson.
It’s also assumed that Amash could pick a running partner like Thomas Massie or Rand Paul in order to give him an edge. In fact, many people like Massie over Paul, and some have called representative Massie — Ron Paul’s long lost son. Justin Amash is different from Joe Biden and Donald Trump, this much is for sure. Both Biden and Trump are typical politicians and Amash’s Libertarian ideals may get him some votes. However, since Amash announced his candidacy, a great number of both Republicans and Democrats are scared witless that Amash will take away votes toward their favorite pick.
What do you think about Justin Amash running for U.S. President? Let us know in the comments below.
Genesis Global Trading has reported a 100% jump in new loan originations in the first quarter. The cryptocurrency lender and trading platform added a record $2 billion in new loans in the three months leading to March 2020, up from $1 billion from the previous quarter. BTC accounted for 44.8% of the loans and bitcoin cash (BCH) 5.8%.
In a recent update, Genesis said new loan issuances soared 354% from a year ago. Active loans outstanding briefly touched $1 billion around the middle of February, before falling to $649 million at the end of the quarter.
Quarter-on-quarter, active loans rose 19% from $545 million previously, it said. That’s despite a 50% intra-day drawdown in the price of BTC in mid-March. Altogether, the lender has originated $6.2 billion in loans and borrows since it started operations in 2018.
Genesis provides loans to corporate borrowers such as hedge funds and trading firms in the form of cryptocurrency or cash. Most of the funds that the lender provides as loans are borrowed from elsewhere at lower rates of interest, before charging higher rates when it lends.
Genesis Global Trading was the fifth crypto firm to receive a New York state Bitlicense back in 2018.
Nine months ago, BTC-denominated loans dominated the company’s loan portfolio. But that has gradually declined to 44.8% in the review quarter, as more borrowers take up cash. Loans issued in BCH have risen from just 0.5% in June last year to 5.8%. Ethereum-based loans account for 5.6% of the issuances while ETC, XRP, and the LTC share is just under 5%.
Genesis Chief executive officer, Michael Moro, said the performance was encouraging against a backdrop of global economic uncertainty brought on by Covid-19.
“Despite being in the epicenter of the global pandemic and experiencing first-hand the volatility and unpredictability of the market, we have never felt better about our business … experiencing no defaults, capital losses or delinquencies at any point over the period,” he said.
What do you think about the cryptocurrency lending business at a time of massive stimulus? Let us know in the comments section below.
During the last few weeks, the world has been dealing with the coronavirus outbreak. These days, however, many of the world’s citizens are growing more concerned over the government’s reactions than the virus itself. Moreover, with the U.S. economy feeling the hardship of over 30 million unemployed Americans and the petro-dollar on life support, many economists think that de-dollarization is coming and this period marks the end of U.S. monetary hegemony. Following the Covid-19 pandemic and the government’s recent schemes, the well known economist Michael Hudson has been explaining how America’s financial superpower could very well fail in the near future.
American Economist Michael Hudson: ‘De-Dollarization–Toward the End of the U.S. Monetary Hegemony’
On April 23, the Global University for Sustainability published a speech that was recorded last year on November 20, and it starred the well known American economist Michael Hudson. The talk called “De-Dollarization–Toward the End of the U.S. Monetary Hegemony,” touches upon the U.S. financial system’s fraudulent manipulation. Hudson has also recently appeared with Max Blumenthal and Ben Norton as well, in order to discuss the topic of ‘American Imperialism.’ During the speech, Hudson explained to the attendees how the American government and its central banking infrastructure created a system where foreign countries pay for its wars, and they even pay for military occupation through the U.S. Treasury bonds system.
Micheal Hudson has been explaining U.S. Imperialism for years and wrote a book about the subject in 1972, one year after Richard Nixon took America off the gold standard.
On April 22, news.Bitcoin.com described the petro-dollar and U.S. monetary hegemony in full context, explaining how the creation of 1944 the Bretton Woods pact bolstered the system’s framework. In that article, it showed how America’s banking elite, otherwise known as the ‘House of Morgan,’ funded Stalin’s communist regime, Hitler’s Nazi forces, and the allies’ military production all at the same time. Hudson says in the recently published video, that the American monetary hegemony started in World War I and solidified even more so during the second world war.
“Basically, the financial problem began in World War I and intensified in WW2,” Hudson stressed. “WWI can be thought of as a fight between finance capital countries – Britain and France, arming to protect what thought was a threat to socialism, specifically the state socialism of Germany and central Europe. What made Germany and Central Europe different from England, the U.S. and France is that there was a unity between government and heavy industry largely based on armaments, and building ships for the Navy and banking. The difference between German banking and Central European banking and English banking was between long-term and short term perspective. That gives us the difference between the industrial and financial time frame,” Hudson said.
The Hard Fist of American Imperialism Is the Fuel
This piece of history sparked the financial system of cronyism and the connection between state and finance. Over the years, Hudson details that the modern banking system grew without much restriction thanks to the tethered relationship between bureaucracy and the private sector. For instance, the World Bank in Hudson’s opinion was only created to make foreign countries dependent on American agriculture.
“This is built into its articles of agreement. It can only make foreign-currency loans, so it will only make loans to countries for agricultural development, roads, if it is to promote exports,” Hudson highlighted in his discussion with Blumenthal and Norton.
America’s superpower strength is backed by military force and at one time the petro-dollar system kept U.S. Imperialism strong. However, ever since the petro-dollar started failing, the U.S. has deployed military forces in order to threaten any country that wants to exit the fraudulent system.
“So the United States, through the World Bank, has become I think the most dangerous — evil organization in modern history — more evil than the IMF. That’s why it’s almost always been run by a Secretary of Defense.” The economist continued by adding:
It has always been explicitly military. It’s the hard fist of American imperialism.
In fact, this system inspired Hudson to write the novel “Super Imperialism” in 1972, which was published a year after President Nixon took America off the gold standard. “The reason he took America off gold was that the entire balance-of-payments deficit from the Korean War to the Vietnam War was military in character,” Hudson said. The economist further explained that in the ‘60s the amount of money America was spending on Vietnam and Southeast Asia was astronomical. Countries who trusted the Bretton Woods pact started to not trust the American government and tried to repatriate their gold.
In the late ’60s, France and Germany and a number of other countries realized the Federal Reserve was printing unlimited amounts of USD in order to pay for the Vietnam War. Nixon had to remove the U.S. from the gold standard in 1971 or the U.S. financial system would have been exposed much earlier.
France and Germany started catching a whiff of cracks within the U.S. financial system and this provoked Nixon to remove the gold standard. “all the money would be sent to Paris, to the banks’ head offices, turned over from dollars into francs, and General de Gaulle would end up with these dollars. Then every month he would send the dollars and want payment in gold. And Germany would do the same thing. So the more America fought militarily, it depleted its gold stock, until finally, in August 1971, it said:”
We’ve been using gold as the key to our world power ever since World War I, when we put Europe on rations. So we’re going to stop paying gold.
American Treasury Bonds and Paper IOUs
After Nixon closed the gold window, economists feared another Great Depression would come, but Hudson realized this wouldn’t happen. “Wait a minute, now,” Hudson said. “Other countries can no longer get gold from all this military spending — and when you talk about the balance-of-payments deficit, it’s not the trade deficit, it’s not a foreign investment; it’s almost entirely military in character.” But people still questioned how the U.S would pay for its wars and what the central banks internationally would do with all of the excess dollar inflows.
“We would let them buy stocks, but not become a majority owner,” Hudson revealed. “A former mentor, the man who taught me all about the oil industry at Standard Oil, became undersecretary of the Treasury for international affairs. When Herman Kahn and I went to the White House, he said:”
We’ve told the Saudi Arabians that they can charge whatever they want for their oil, but all the money they get, they have to recycle to the United States. Mostly they can buy Treasury bonds so that we’ll have the money to keep on spending.
U.S. Treasury bonds are a major part of the revolving system which allows the U.S. to have 800 military bases across the world and foreign countries pay for the expenses.
“They could also buy stocks, or they can do what the Japanese did and buy junk real estate and lose their shirts,” Hudson noted. “So basically, when America spends money abroad, central banks really don’t speculate. They don’t buy companies. They buy Treasury bonds. So we run a monetary deficit; the dollars are spent abroad; the central banks lend them back to the Treasury, and that finances the budget deficit, but it also finances the balance-of-payments deficit. So we just keep giving paper IOUs, not gold,” Hudson explained. The economist further said:
The U.S. demands foreign dependency on its grain, technology, and finance. The purpose of the World Bank is to make other countries’ economies distorted and warped to a degree that they are dependent on the United States for their trade patterns.
Covid-19 Has Opened America’s Can of Worms
Free market economists, gold bugs, and cryptocurrency proponents have been telling the world how manipulated the monetary system is and specifically how evil the U.S. dollar is as well. The recent oil drop has shown that the petro-dollar is hardly valid anymore, and the only thing holding the American financial system up is through the use of bullying with military force. A number of countries have tried to escape the U.S. monetary hegemony, but their leaders were executed and sanctions were placed on the countries’ trading avenues. This is why U.S. forces have heavily occupied the Middle East for well over two decades. But more recently, other larger economic forces like China and Russia have been trying to escape the American financial system. Hudson details that because China and Russia have been attempting to remove their systems from America’s imperialism, it has sparked a cold war between the countries once again. Hudson detailed that the U.S. has helped bolster the IMF and the World Bank in order to squash the narrative of alternative financial systems.
Just yesterday the Federal Reserve gave Wall Street $500 billion with no rules about rehiring workers or barring executive bonuses. “Unlike other portions of the relief for American businesses, however, this aid [from the Fed] will be exempt from rules passed by Congress requiring recipients to limit dividends, executive compensation, and stock buybacks and does not direct the companies to maintain certain employment levels,” explained the Washington Post on April 29. “Critics say the program could allow large companies that take federal help to reward shareholders and executives without saving any jobs. The program was set up jointly by the Federal Reserve and the Treasury Department.”
Hudson’s recently published video and his discussion with Norton and Blumenthal, is an eye-opener to those who don’t understand how manipulated the American financial system really is. However, Hudson has far too much faith in the bureaucracy and his solutions to the problems involve globalism and statist ideals. His description of the U.S. monetary hegemony is still factual and his statements like society’s financial system “is not fair and you won’t find it in economics” is truthful. However, Hudson’s fix involves trusting in the very parasites that caused the damage in the first place. Despite this, Hudson’s evidence that shows “de-dollarization” is likely on the way, is a reliable and fairly solid theory.
Bitcoiners and anti-statists have been explaining to people there are numerous ways to escape the fraudulent financial system, whether it be through barter and trade, cryptocurrency solutions, or using precious metals for a hedge. The Covid-19 outbreak and specifically the U.S. government’s response has been tyrannical and filled with practices that violate civil rights. Free market advocates understand that the state’s authoritarian powers cannot function without funds, endless money creation, military force, and the fiat currency system. As cryptocurrencies like bitcoin grow larger, the digital asset economy will provide a meaningful and reliable escape. In time the monies backed by military force and guns will be a distant memory.
What do you think about Michael Hudson’s view of the end of U.S. monetary hegemony? Let us know in the comments below.
Telegram has offered to refund investors after its scheduled release of the Gram token failed – again – due to regulatory complications. Investors will immediately receive 72% of their stakes, as first option, or 110% if they choose to wait another year. The second option may be paid in another cryptocurrency in the Telegram messaging application, with an additional 10% bonus.
The social network raised $1.7 billion in an ICO in 2018, promising investors the token Gram in return. Telegram made legal undertakings that it would deliver the cryptocurrency to investors initially by Oct. 31, 2019, or give back the money. The latest deadline for the launch of the Telegram Open Network (TON), the decentralized network supporting Gram, is today, April 30.
But in the period since its fund-raising, the company has faced serious legal challenges. The U.S Securities and Exchange Commission (SEC) wants the Gram project stopped because of alleged illegal activity by the Telegram development team.
Now, in a letter to TON investors posted on a Russian platform, Telegram stated that: “Unfortunately, in light of the recent U.S district court decision, we are unable to issue Grams to you by the 30 April deadline date.” The court decision prevents the company from issuing its promised digital asset or launching the underlying TON network until the dispute is resolved.
In the second repayment option, Telegram proposes to pay investors more, either in cash, stock or a different cryptocurrency, if they agree to “loan” their existing stake to the company until around this time next year. It said:
As a token of gratitude for your trust in TON, we are also offering you an alternative option to receive 110% of your original investment by April 30, 2021, which is 53% higher than the Termination Amount.
Investors have until the end of this week to choose a refund plan of their liking.
The Telegram app makes it easy to send encrypted messages between phones. More than 400 million people around the world use the messaging service every month, and at least 1.5 million people join the platform each day, the company says. The Grams are intended to make it possible to buy and sell goods on Telegram.
What do you think about the chances of Telegram’s token in light of the legal challenges? Let us know in the comments section below.
Cryptocurrency trading in Malaysia has surged as the country endures an extended lockdown, costing its economy an estimated $550 million a day. Regulated cryptocurrency exchanges are reporting substantial growth in trading volumes and new users as people seek “a good store of value in difficult economic times.”
Increased Crypto Trading Volumes and New Users
Interest in cryptocurrency has grown significantly in Malaysia amid the extended lockdown restricting travel and nonessential businesses. The country estimates that 2.4 billion ringgit ($553 million) are lost each day that businesses remain shut due to the coronavirus pandemic.
Despite the worldwide economic crisis, cryptocurrency trading in Malaysia has shown strong growth, according to two government-approved crypto exchanges. Luno, Malaysia’s first fully approved digital asset exchange, told The Malaysian Reserve publication that local trading volumes on its platform grew 33% over the past four weeks. Luno Malaysia manager Aaron Tang said the number of active users on his exchange hit a record high during that period. “There are a plethora of digital coin investors in Malaysia,” Tang told the news outlet, elaborating:
We believe the surge is partly driven by the belief that cryptocurrencies (particularly bitcoin) are a good store of value in difficult economic times.
The Luno manager explained that some investors are using cryptocurrencies, such as bitcoin, to diversify their portfolios, because they are worried that huge stimulus packages and the global economic crisis could lead to inflation.
The two approved cryptocurrency exchanges in Malaysia have experienced increased trading volumes and signups. “We believe the surge is partly driven by the belief that cryptocurrencies (particularly bitcoin) are a good store of value in difficult economic times,” Luno Malaysia noted.
The second fully approved cryptocurrency exchange operator, Tokenize Technology, has also experienced an increase in user signups. CEO Hong Qi Yu told the news outlet that his platform is seeing an average daily trading volume increase of 30% to 40%.
“We are quite fresh but see that Malaysians are quite eager to sign up,” he was quoted as saying. However, he added that most people are still taking a wait-and-see approach when it comes to cryptocurrency investing, estimating that only 2% of Malaysia’s population of over 30 million has adequate cryptocurrency knowledge.
Malaysian Cryptocurrency Regulation
Malaysia’s securities commission (SC), Suruhanjaya Sekuriti Malaysia, started regulating the country’s cryptocurrency industry on Jan. 15 last year, when “the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019” went into effect.
Malaysia’s securities commission, Suruhanjaya Sekuriti Malaysia, started regulating the cryptocurrency industry in January last year. The Commission has approved three crypto exchanges so far, two of which are fully approved.
The Commission approved three cryptocurrency exchanges conditionally last year: Luno Malaysia, Sinegy Technologies, and Tokenize Technology. Luno soon met the regulator’s requirements and became the first exchange to receive full approval. Earlier this month, Tokenize Technology also met the requirements.
Suruhanjaya Sekuriti Malaysia clarified when the regulation went into effect: “Entities which have not been approved by the SC, including those which have previously been operating under the transitional period, are required to cease all activities immediately and return all monies and assets collected from investors.”
What do you think about Malaysia’s increased interest in cryptocurrency? Let us know in the comments section below.
London Stock Exchange-listed bitcoin miner Argo Blockchain Plc said on Wednesday full-year 2019 revenue rocketed 1,000% to £8.62 million ($10.78 million) from £760,000 a year earlier. The company stated that the increase was due to a realignment of operations, from consumer-oriented mining as a service (MaaS) business to a proprietary mining model.
Based in London, Argo Blockchain operates at least 17,000 BTC mining machines at three sites in Quebec, Canada, leveraging the region’s cheap hydroelectricity. It listed on the LSE in August 2018, and until recently, mainly operated mining rigs for profit providing MaaS primarily to institutional investors.
For the year to December 31, 2019, Argo Blockchain reported it had mined 1,330 BTC thanks to a 306% increase in its cryptocurrency mining capacity. At year-end, the company operated 7,000 mining machines but that has since swelled to 17,000 during the first quarter of 2020.
The company, with a market value of £16.12 million ($20.15 million), said it narrowed operating loss by 80% to £830,000 ($1.04 million) during the review period.
Miners are facing pressure from the Bitcoin halving event scheduled for on or around May 12. The periodic event is set to cut mining rewards by 50%. This is expected to affect revenues for mining companies a great deal.
Some argue the revenue decline might be compensated by a spike in the price of BTC – a feat generally associated with previous “halving” events. However, Bitmain, a major mining rig manufacturer, planned to cut its workforce by half in anticipation of the halving.
Argo Blockchain expects continued “strong growth” in the first half of 2020, regardless of concerns around the coronavirus pandemic and the upcoming halving of BTC mining earnings. Chief executive officer Peter Wall said the company’s mining infrastructure will rise to 18,000 machines shortly.
“Having completed a major expansion of our mining infrastructure Argo is on track to deliver strong growth in the first half compared with the corresponding period last year,” Wall was quoted as saying.
“We entered 2020 with considerable business momentum and an efficient mining platform which puts us in a favourable competitive position to navigate the evolving and dynamic cryptocurrency ecosystem,” he added.
Shares of Argo Blockchain rose as much as 1.65% to £5.49 this morning during London trading sessions on Wednesday. Over the past 52 weeks, the stock has reached a high of £11.25 and a low of £2.60.
What do you think about the future mining in the face of bitcoin halving? Let us know in the comments section below.
Cryptocurrency markets are bullish on April 29, as BTC prices have spiked over 11.8% in the last 24 hours touching a high of $8,740 per coin during Wednesday’s trading sessions. Bitcoin has gained 130% in value since the market rout on March 12 otherwise known as ‘Black Thursday.’ Many believe the cause behind the higher price is due to the pending Bitcoin Halving expected to take place on or around May 12, 2020.
Bitcoin Markets Jump Significantly in Value, $1K in a Day
The overall market valuation today for all 5,000 crypto assets in existence is roughly around $251 billion (1/4 of a trillion) and BTC’s market cap captures $153 billion of that number. Slowly and steadily, BTC prices have continued to rise during the last week breaking past a few crucial resistance zones. At press time, the price per BTC is around $8,639 per coin and the crypto asset is up over 11%. BTC is up 21% for the last seven days, 35% for the last 30 days, and 60% for the year so far. 90-day statistics show that BTC is still down around 8% with today’s prices.
ETH prices are up around 10% as well and each ether is swapping for $215 per coin. XRP still holds the third-largest market cap and each XRP is valued around $0.22 at the time of publication. Tether is hopping back and forth with bitcoin cash (BCH) markets and is currently the fifth largest crypto market valuation today.
Bitcoin cash (BCH) is selling for $258 per coin and is up 7.5% for the day. For the last seven days, BCH is up 11% and 17% for the last 30 days. The top trading pair with bitcoin cash on Wednesday is tether (USDT) with 57% of BCH trades. This is followed by BTC (25%), GBP (6.9%), USD (3%), KRW (2.6%), and ETH (1.42%) pairs. GBP’s increase has been notable as it is unusual to be above USD and even EUR trading pairs. BCH is currently in the midst of heavier resistance and its gonna take some bullish pressure to break the $275-300 zones.
A popular digital currency trader named @Galaxy told his 62,000 Twitter followers: “The fact that BTC is going to $13K simply cannot be ignored. Of course, many of the people who responded to Galaxy didn’t believe his price prediction. Some traders responding said another big correction is coming and others expect prices around $5K. Meanwhile, plenty of individuals could imagine $100-200K per BTC prices. “I never understand people day trading bitcoin. Just hold until it’s $100K and sell a little. Repeat at $200K. It’s easy,” another individual tweeted in response to Galaxy’s tweet.
Bitfinex Cold Wallets Are Being Siphoned
Just recently news.Bitcoin.com reported on the massive withdrawals that crypto proponents have witnessed since the Black Thursday market massacre. According to a report written by Anton Lucian, Bitfinex cold wallets are draining significantly. “57,000 BTC ($441M) has been withdrawn from Bitfinex’s cold wallet in the past 70 days,” Lucian detailed. “This is one of the rare times the exchange’s cold wallet has seen a drop in holdings for an extended period of time. BTC withdrawals on the exchange in the past 30 days are also more than 10x higher compared to other exchanges,” the author added.
Fed Induced Crypto Pump
Some crypto proponents wholeheartedly believe that the jump above $8K per BTC today was due to Fed Chair Jerome Powell’s press conference. Powell told the public that the Federal Reserve will be keeping interest rates at zero and he discussed a number of stimulus plans. What really triggered the spike and even a rise in equity markets is when Powell’s Fed proposal disclosed that the money has no requirements.
“Unlike other portions of the relief for American businesses, however, this aid [from the Fed] will be exempt from rules passed by Congress requiring recipients to limit dividends, executive compensation, and stock buybacks and does not direct the companies to maintain certain employment levels,” explains the Washington Post. “Critics say the program could allow large companies that take federal help to reward shareholders and executives without saving any jobs. The program was set up jointly by the Federal Reserve and the Treasury Department,” the financial news outlet added.
What do you think about crypto market prices today? Let us know in the comments below.
The largest oil field in the People’s Republic of China has been a target for individuals and organizations attempting to mine bitcoins with free electricity. After a bunch of mining farm operators allegedly got caught last summer, a dog kennel owner was recently busted for running cable lines in order to siphon free electricity from China’s Daqing Oil Field. The mining farm owner was arrested, as police found 54 ASIC miners stored in an underground bunker with dog kennels on top making it seem like a legitimate operation.
Chinese Dog Kennel Owner Caught Running Cables to Daqing Oil Field to Power His Underground Mining Farm
Electrical costs in China are cheaper than most places around the world, and that is why there is a high concentration of China-based bitcoin mining operations. To this day, it is estimated that more than 60% of today’s bitcoin miners operate in China. On April 26, the regional publication dbw.cn/heilongjiang published a report that explained a bitcoin miner was just arrested for allegedly stealing free electricity from the Daqing Oil Field. The report notes that the mining farm operator got away with the free electricity for months in order to power 54 mining rigs underground.
Daqing Oil Field.
Further investigation shows that the mining farm owner also operated a K-9 kennel housed with dogs above the bunker. The cover made it seem like he was operating a legitimate business, while he had long cables running into China’s largest oil field. The oil field in Daqing is located between the Songhua river and Nen River. Estimates show that Daqing Oil Field has produced well over 10 billion barrels since the operation started. The man who was busted running cable lines into the oil field is not the only entrepreneur who has tried that specific method. Daqing Oil Field has been a target for many bitcoin mining operators who have attempted to run cables into the plant.
The accused K-9 kennel owner allegedly ran 54 mining rigs underground below the dog cages.
China’s Largest Oil Field Is Becoming Well Known for Underground Mining Operations
Last June, police in China caught villagers running cable wires into the oil field in order to power their mining rigs. At the time, the Green Grassland Police Station in Heilongjiang got a call from the executives at Daqing Oil Field that claimed people were running cables into the plant. Ostensibly the officers deployed aircraft and drones to find enough evidence in order to press charges against the bitcoin miners.
The K-9 kennel owners mining rigs being seized by Heilongjiang Province police.
Electricity theft in China for powering bitcoin farms has happened in other regions as well. During the month of October 2018, one man was sentenced to three and a half years in jail for stealing power from a local train station. It has been happening internationally as well, as many authorities have caught people in other countries stealing electrical resources from power plants. In February 2019, a group of people got arrested in Germany for mining ETH and BTC with stolen electricity from a German plant.
During the ‘60s and ‘70s, the Daqing Oil Field was lauded as one of the most important power plants in China, according to Chinese state media outlets. Now the field is better known for the number of cable lines being secretly attached to it and fueling the power of ASIC mining farms.
What do you think about the K-9 kennel owner caught stealing electricity? Let us know in the comments below.
Europeans are feeling more optimistic about the future of bitcoin. A recent study shows that more than two thirds of them believe cryptocurrency will remain in existence in 10 years time, with some convinced BTC will become a key part of the economy, both as a security and investment.
Crypto exchange Bitflyer, which produced the study, said Wednesday Europeans are feeling more upbeat that digital financial assets will remain in use by 2030, perhaps awakened to the reality because of the stringent Covid-19 lockdowns, which forced services to go strictly online.
At least 66% of people in Europe are confident of bitcoin’s future, it said. That’s 3% above the number of people who showed similar optimism in 2019, Bitflyer added, citing a poll of 10,000 Europeans across 10 countries. The exchange is one of the world’s largest by trading volume.
Italy, which experienced a peak in coronavirus restrictions in March, is the most confident with 72% believing in the longevity of cryptocurrency, while the UK is the least confident at 56%, poll results show. About 70% of people in the Netherlands and Poland believe in a future for digital assets.
According to the study, those in the UK are slightly less optimistic, with confidence levels falling 1% from a year ago. Norway is less fascinated as well.
Most Europeans remain unclear about the real use cases for BTC in future or how cryptocurrencies will cement their place within their respective economies. Around 10% expressed confidence bitcoin will become an everyday currency or that it will be used as a security or investment, the study revealed.
In Italy, however, 12% of the people believe that cryptocurrency will one day be used as mainstream currency, a 2% increase from the previous year. The figure compares with 10% of Polish and 5% of British citizens who are convinced this could be the case.
Andy Bryant, COO at Bitflyer Europe, said the results indicate “a slow but steady progression of cryptocurrencies into the mainstream consciousness. Although we might look at this as an achievement for digital currencies in spite of the challenging economic times we are facing, it is also worth considering that this may well be partly because of these times”.
What do you think about the European optimism? Let us know in the comments section below.
Cryptocurrency exchanges are online platforms where one can buy, sell, or trade cryptocurrencies. The aim of crypto exchanges is to connect buyers and sellers by creating a cycle of supply and demand in one place.
Centralized vs Decentralized Exchanges
However, almost every exchange is prone to hacking, has privacy issues, and users could end up losing their funds. Non-custodial exchange services look to overcome these shortcomings of cryptocurrency exchanges.
Online cryptocurrency exchanges can be categorized into two types: centralized and decentralized.
Centralized exchanges allow you to sign up with your email and password and usually have extra security features like two-step authentication or email verification.
Even though they make it easier for everyday users to buy and sell digital assets with their interactive interface, one major downside of such exchanges is that they do not give users full control of their cryptocurrencies. The private keys of your wallets are held with the exchanges, so if they were to get hacked, your funds will be lost.
Decentralized exchanges (DEXs) give users more control over their assets as they only act as intermediaries and do not store private keys giving the users full control of their funds. However, these exchanges come up with their own drawbacks such as low liquidity, slow UI, and not being able to handle huge amounts of transactions, etc. There are a very few DEXs compared to CEXs owing to the difficulty that users face while using the former due to complex UI. This is where an instant crypto exchange comes in – users can instantly trade their digital currencies in just 3 simple steps without the hassle of needing to register or worrying constantly about security.
Generally, people prefer CEX over a DEX because of a number of reasons like liquidity, volume, user-friendly platforms, etc. Top centralized exchanges like Bitfinex, Bittrex, Coinbase, Kraken, Binance, Huobi have 99% of the transaction volume and were the first to exist in the market even before the idea of decentralized exchanges came up, so they have an upper hand of being in the market since inception.
Drawbacks of cryptocurrency exchanges
Cryptocurrency exchanges come with their own set of disadvantages, the major drawbacks include:
Privacy: Exchanges store all your information such as IP address, email, and details about your transactions which basically doesn’t leave behind much privacy for you.
Data Breaches: With increased KYC/AML policies by exchanges due to local regulations, security breaches have risen sharply. In fact, over 10000 Binance users’ personal data was stolen in 2019 with the hacker demanding 300 BTC threatened to release the photos which included driving licenses, passports, and face scans of users.
Loss of funds: The majority of the exchanges have had a story of getting hacked and users losing their hard-earned money. The bigger picture is explained in detail in the next paragraph.
The cumulative money lost from just the top three biggest exchange hacks in the last 7 years is over 1 Billion US Dollars, now imagine what the figures would look like if we consider all the hacks. Below is a picture that summarizes the money lost in all major hacks until April 2018.
The world’s biggest cryptocurrency exchange in terms of daily volume, Binance, which is known for its innovative products and strong leadership went through a security breach in May 2019 which resulted in 7000 Bitcoins being stolen from their platform. Even though all the affected customers were reimbursed in this case, it shows how vulnerable it is to leave your money on exchanges.
“Your keys, your Bitcoin. Not your keys, not your Bitcoin.’’
Cryptocurrency traders and enthusiasts started trending hashtags such as “ProofOfKeys” on Twitter after major exchange breaches to ensure investors and traders stay away from custodial wallets and not store their cryptocurrency on exchanges unless they are trading. Non-custodial cryptocurrency exchanges and wallets started to gain traction as users gave much more priority to their security.
Also, trading on exchanges is not only risky but also a tedious task. In order for you to trade on a DEX, you need to enter your private keys or Keystore or use MetaMask; the latter is the most recommended method. Then you need to send your digital currency from your private wallet to Metamask and then to DEX. Every transaction has to be signed by you. Probably the most frustrating part of using this type of exchange is you have to wait until someone buys or sells so that your order fills, which can take a long time depending on the liquidity on that exchange.
CEXs solve this waiting problem by using market makers, but again, users are required to log in and perform authentication to trade and confirm by email to make every withdrawal. On top of all this, all exchanges require you to do KYC to comply with local regulations, which can take days.
Overcoming CEXs’ and DEXs’ drawbacks
Instant crypto exchange services that require no registration and perform your transactions fast may be the solution. These platforms give you basically as many options as any regular exchange – but overcome their shortcomings.
Another major advantage of such platforms over CEXs and DEXs is that they do not control your funds at all – as non-custodial services, they allow you to keep the keys to your crypto privately. An as there’s no registration required, the crypto exchange is very simple here. For example, on ChangeNOW, all you have to do to buy Bitcoin is to enter the amount of the sum you want to exchange, your wallet address, and to click Confirm.
Along with this, there are several other features that widen the possibilities of a trader on ChangeNOW. For example, they have no upper limits for the crypto exchange; over 200 cryptocurrencies are supported, and it’s possible to buy them with Visa or MasterCard. The rates are very reasonable as the service claims it uses special algorithms that pick the best rate at the moment of the exchange.
So what’s the best place to trade crypto?
Of course, there is no ideal platform to trade crypto out there. ChangeNOW has its own drawbacks – they have no crypto-to-fiat options available, and fiat-to-crypto exchanges are a bit pricy. Many traders consider instant exchange services the best place to trade crypto with security and convenience – but we recommend you doing your own research to choose the best platform that will fit your needs.
The local government of Ya’an city, in China’s Sichuan province, has announced the region is encouraging bitcoin mining in Sichuan if operations leverage the local hydropower plants. The document released by Ya’an city officials is in stark contrast to how Sichuan lawmakers felt about mining in 2018. Back then the government and China’s central bank called the operation “wasteful” and discouraged the business.
On April 20, the city of Ya’an in the Sichuan province of China has published a document that encourages bitcoin mining and blockchain operations to use the region’s abundant hydropower stations. It’s likely that the Covid-19 economy has changed the politician’s minds as Sichuan lawmakers didn’t care for mining operations in 2018. Roughly a year ago today, the National Development and Reform Commission (NDRC) in China explained a number of industries it wanted entrepreneurs to encourage, as well as businesses the commission wanted eliminated. According to the NDRC, bitcoin mining is “resource-wasteful” and the group promoted the elimination of its practice in China.
Despite the NDRC’s statements last year, a two-part study revealed a number of publicly-traded Chinese firms participated in bitcoin mining operations. The city of Ya’an’s statements are totally different from the NDRC’s proposal and after the harsh reality of the coronavirus post-economy, it seems the Sichuan province is open for business when it comes to mining. A translation of the city of Ya’an’s says:
“Blockchain companies should construct factories near power plants that have excessive power and are integrated with the State Grid,” the document notes. “For blockchain companies that use electricity privately generated from power plants (without integration to the State Grid) should be rectified in due time.”
The document notes that Ya’an’s officials want the Sichuan province to become a blockchain and crypto mining hub. Sichuan has always been known to have a massive concentration of bitcoin mining farms as electricity is very cheap in the area. During the wet season, Sichuan sees a significant migration of mining operations set up shop in order to benefit from the region’s cheap hydro-powered electricity. Wet season operational data shows Sichuan miners can get an astounding 0.08 yuan per kWh or $0.01 per kWh.
What do you think about the city of Ya’an encouraging bitcoin mining? Let us know in the comments below.
