Banks were given the the authority to dismiss any anonymous transaction or transfer. After that, they are bound to report to the Financial Supervisory Commission. If a non-financial enterprise is found guilty, it is to pay fine of 50,000 yuan; if it is a financial institution, then the fine grows in 10 times and accounts for 500,000.
These changes were made for prevent money laundering and other illegal financial actions. Anonymous crypto operations may bring some political disbalance in the world, so we want to remind you
Japan is a progressive country in terms of economy, as well as cryptocurrency regulation. This time Japanese financial authorities have released a new set of rules regarding crypto margin trading.
Margin trading is a strategy that allows a trader to buy more stocks than you can afford on money borrowed from a broker (similar to loan).
The Cabinet of Japan approved draft amendments to Japanese financial instruments and payment services laws on Friday. In fact, they will limit leverage in virtual currency margin trading at two to four times initial deposits. Such restrictions are a common practice in foreign exchange trading.
All crypto exchanges throughout the country are bound to get governmental registration. This type of registration will differ from that adopted in 2017, which was mostly focus on preventing money laundering. However, these rules make exchange operators be monitored in a way similar to securities traders to protect investors.
These crypto exchange operators will be classified into categories to differentiate those who involved in margin trading from those who issued ICO tokens. This will help to distinguish unsavory offerings that are similar to frauds or Ponzi schemes and protect investors from losing their money. The new rules will come into force in April 2020. All margin cryptocurrency exchange operators have to be registered within 18 months of that date.
Such a time limit is set to take down unregistered “quasi-operators” which conduct operations without governmental approval. A senior FSA official said:
“We intend to motivate operators to do what they can to become registered.”
Winklevoss twins are one of the most influential crypto personalities in the modern world. They are multi-millionaires with their own exchange – Gemini – and own dollar-pegged Gemini coin. It is no secret that the brothers have supported crypto since the beginning of it, but now they promote crypto regulation which confronts with the idea of crypto as well as with their billboard slogans. What happened?
Crypto Needs Or Doesn’t Need Rules
The twins are known for deconstructing the stereotypes and the myths that surround crypto in the public. They want to change the image of crypto that has been plagued with scams, hacks, frauds. However, their billboard slogan “Crypto Needs Rules” was criticized by Bitcoin users as the main meaning of crypto is to transfer money or digital assets without having to trust anyone.
Cameron Winklevoss said that some people wondered why Gemini believes that the crypto revolution needs rules. He responded:
“Crypto doesn’t need rules, but the companies built on top of it do.”
Cameron also cited a part of report regarding to the defunct QuadrigaCX exchange which lost millions of dollars.
Some have wondered why @Gemini believes the Revolution Needs Rules. Answer: Crypto doesn't need rules, but the companies built on top of it do. See excerpt from court-appointed monitor's (Ernst & Young) third report filed in Nova Scotia Supreme Court re: QuadrigaCX matter pic.twitter.com/Dvw8Am5H9M
In order to prevent cases like QuadrigaCX and Mt.Gox, the latter’s CEO was sentenced to 2 years and six months in prison, the companies that provide custodial services of customers assets should be regulated. Furthermore, Winklevoss pointed out that these cases as well as other incidents could have been preventable if there was a proper management of the company, in particular, “proper rules and thoughtful regulation”.
Every incident in crypto to date has been/would have been PREVENTABLE w/ proper rules and thoughtful regulation.
A bill was introduced in Texas which demands an identification of a person who sends or receives cryptocurrencies. However, the bill specifies that if a user has already been using a verified identity digital currency then there is no need to give any person’s verification to the government.
If approved, the bill will take effect September 1, 2019.
The community took the idea not very good.
Having mentioned the bill, Andrew Hinkes, the co-founder and general lawyer of Athena Blockchain, brought up some significant issues:
other questions: would any existing #cryptocurrency /#digitalcurrency qualify as a "Verified identity digital currency” as defined? What level of "id" is required to be "verified"?State issued? Are 4 state administrative bodies the right entities to "promote" a digital currency?
Texas is not the only example of cryptocurrencies confidentiality infringement. Recently in their report dedicated to usage of cryptocurrencies and blockchain technology the French National Assembly’s Finance Committee offered total ban on cryptocurrencies oriented on confidentiality such as Monero and Zcash.
Arab world is the last part of the world which joined the crypto community. Its first crypto exchange was established in 2018 while other worldwide exchange began operating back in 2014. However, the Arab countries, in compare to other nations, decided to approach this issue with the utmost responsibility.
The island country in Persian Gulf – Bahrain – has completed the final version of draft which regulates cryptocurrency in the country, thereby the nation has become the first Arab country to issue such a document. According to a statement made by the Central Bank, the Kingdom is now a safe place to run business crypto assets.
The director of Banking Supervision, Khalid Hamid, says:
“The CBB’s introduction of the rules relating to crypto-assets is in line with its goal to develop a comprehensive rules for the FinTech eco-system supporting Bahrain’s position as a leading financial hub in the MENA region.”
By now, the original text of regulations is not available yet. However, it is known that to conduct crypto operations, one should ensure the education.
We also want to remind you that Bahrain’s government is also interested in blockchain technology. The Minister of Electricity and Water Affairs, Dr. Abdulhussain Mirza, has claimed several times that blockchain technology is all about safety and progress. During the SmartSec Cyber Security and Blockchain Conference 2018, the Minister said:
“Technologies such as blockchain take us a huge step forward in finding a secure way to facilitate transactions. Blockchain’s ability to protect user’s data is a true mark of progress, because it can be applied in different companies from different industries including cybersecurity.”
Bitcoin is one of the most famous cryptocurrencies in the world. It is actually the first one, thus, no matter what might be, it has already gone down in history. Even though the cryptocurrency may not be that popular right now, due to various reason, some changes are already inevitable, hence, let us just check on trends which will become a part of everyday life in 2019.
1. Bitcoin ATMs
The number of Bitcoin ATMs is growing rapidly. It is a kiosk which allows a person to buy/sell Bitcoins in cash or by credit card. They actually look like an ordinary terminal, yet, it is connected not to bank account, but to Bitcoin exchange. The number of Bitcoin ATMs in the world accounts for 4292 at the time of writing.
Such ATMs will definitely encourage people to use cryptocurrency, since now it becomes more understandable for ordinary people. If people get accustomed to use Bitcoin ATMs, then crypto will see a bright future.
2. Central banks and Bitcoin
Some people do not want to get involved in crypto as it lacks regulation, including bank regulation. However, in 2019, one of Bitcoin trends may become partnership between central banks and cryptocurrency.
Several banks have already introduced systems how to work with crypto. Bank of America, for example, has officially patented a system for saving crypto actives for significant corporations. Moreover, this week, one of the biggest American banks, JPMorgan Chase & Co, has announced that it developed its own digital coin – JPM Coin.
Perhaps, such implementations will bring positive effect on the relationships between crypto and financial institutions.
3. Bitcoin in smartphones
Since the beginning of the third millennium, a cell phone has become an integral part of our everyday life. By using a smartphone we can do almost everything that is connected to our work, study, leisure, or hobby. Financial transactions, including crypto operations, are no exception.
On May, 2018, Huawei Technologies Corporation provided users of its smartphones with the opportunity to use Bitcoin wallet BTC.com. At the end of the past year, HTC company released the smartphone Exodus, powered by blockchain. A person can only purchase the phone with digital currencies.
It is too early to say whether these phones will be successful and useful or not, yet still it is very important that world is trying to meet the needs of everyone.
Another week has passed, yet Bitcoin still shows quite plain dynamics on the graphics. In fact, its price has not changed significantly since January 10th. Bitcoin price is $3459 at the time of writing.
Since Bitcoin’s price has recently stabilized, many institutional players began changing their attitudes towards cryptocurrency, let us see what the representatives of global companies think.
The Global Market Strategist at JPMorgan, Nikolaos Panigirtzoglou, reckons that due to Bitcoin’s stagnation many big players will return to the industry. The volatility has “calmed down” and it means that investors can give Bitcoin second chance. He also said:
“The stability that we are seeing right now in the cryptocurrency market is setting the stage for more participation by institutional investors in the future. The cryptocurrency market was a new market. It went through a bubble phase [and] the burst.”
In his interview to CNBC, he stated that the cryptocurrency could not grow, because it was not regulated, but now the situation can differ.
Wall Street research firm, Fundstrat Global Advisors, is sure that the cryptocurrency may see new lows soon.
“The price structure for most cryptocurrencies remains weak and appears vulnerable to a pending breakdown to lower lows,” Robert Sluymer, the spokesman of Fundstrat, said.
In addition, Sluymer stated that the price can vary from $4200 to $3100 or ever lower. If it suddenly hits more than $4000, it would mark a 25% increase over today’s prevailing prices. However, Robert emphasized that the technical fundamentals of Bitcoin remain weak, so the price can have downward tendency to the price mark of $3100 or even lower – $2700. The representatives of Fundstrat have also suggested that 250 small-cap coins are at risk, as they all are vulnerable to market jumps.
There are some reasons why Bitcoin price may fall down:
Lunar New Year. During this period, Asian traders have relatively weak activity which may bring consequences to Bitcoin’s rate. The unofficial holidays will last till February 19.
Uncertainty with the US budget. The Congress and the President of the US cannot reach an agreement, this will have influence on financial markets.