Two European Finance Regulators Urge the EU To Adopt Crypto and ICO Rules

Cryptocurrency and ICO regulations have been an open topic in Europe for quite a long period of time. Some finance regulators claim that it is high time the European Commission determined the place of crypto and ICO in European economy.

The European Banking Authority (EBA) stated that the current crypto asset-related activities did not comply with the EU financial laws, so that The EBA urged the EU to look into the crypto rules and identify what actions may be required at the EU level.

The representative of the EBA said:

“The EBA’s warnings to consumers and institutions on virtual currencies remain valid. The EBA calls on the European Commission to assess whether regulatory action is needed to achieve a common EU approach to crypto-assets. The EBA continues to monitor market developments from a prudential and consumer perspective.”

Moreover, the EBA advised to use the FATF’s recommendations. The Financial Action Task Force (FATF) is to issue a set of recommendations for crypto-related action in June 2019.

Another finance regulator, which supports the EBA, is the European Securities and Markets Authority (ESMA). It released a report which helps the authorities of the EU to make decisions on rules applied to crypto and ICO.

The spokesman of the ESMA said:

“Our survey of NCAs highlighted that some crypto-assets may qualify as MiFID financial instruments, in which case the full set of EU financial rules would apply. However, because the existing rules were not designed with these instruments in mind, NCAs face challenges in interpreting the existing requirements and certain requirements are not adapted to the specific characteristics of crypto-assets.”

We remind you

Seven EU Member States United To Adopt Blockchain In Their Countries

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If Euro Is Doomed, How Will It Influence the Financial Situation in the World?

It comes as no surprise that the cryptocurrency market has been in an unstable state in the recent couple of month. However, it seems like the conventional monetary system is starting to crack as well.

The experts and financial specialists are especially worried about the fate of one of the major world currencies – Euro.

In the article for Financial Times, the market and investment researcher Russell Napier claimed that euro might face some difficult times due to the downfall of the economy in the eurozone.  

The key consequence of this collapse will be the destruction of the euro. The expected success of the far-right and far-left in the European parliamentary election in May this year augurs the beginning of the end for the currency union. Both extremes share a commitment to the return of sovereignty to their parliaments that is incompatible with a single currency,” he said.

A lot of leading European countries, like Italy and Germany, are experiencing a major decrease in the economy growth rate and a lower performance rate of the major financial establishments.

Napier is sure that the policy of the European Union, namely restricting control over capital flow will have a detrimental effect on euro, the fall of euro will, in its turn, cause a collapse at the market.

But still the financial system is a very unpredictable thing, and anything could happen, despite the boldest forecasts of experts. Anyway, we hope that 2019 will be a more stable and favorable year both for crypto and fiat currencies.

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SWIFT Payment System: What It is and How It Works

A transfer of funds between countries used to seem something out of real, but today it is a convenient and fast process, which is perceived as a regular thing. The development of technology has greatly simplified SWIFT transfers, which every modern person should know about.

Therefore, in this article The Coin Shark will answer in detail the frequently asked question regarding SWIFT transfers.

What is SWIFT and what does is stand for?

This is an interbank system with a minimum commission for transfers in any currency, which was established in 1973. The abbreviation SWIFT itself stands for “Society for Worldwide Interbank Financial Telecommunications. ”

Working with SWIFT

The system can be used by organizations, private individuals or entrepreneurs. For international financial transactions, it is necessary to specify the details of the beneficiary’s account and the SWIFT code of the bank to which funds will be delivered. To transfer money, it is not obligatory to start an account, since transactions can be carried out through transaction accounts of users of the system.

One more peculiarity is that the processing of payments in the system takes a little longer, but it is compensated by a low commission, for example, in comparison with Western Union or Contact systems. Transaction processing takes from one day to one week. The speed of the operation depends on availability of a settlement account.

Requirements for the SWIFT user

To work with the system, you must follow the following rules:

  • to fill in the details of payment and transfer in English;
  • to pay a transfer fee without using the account. It is recommended to open one if transfers are performed regularly.

To use the system, the accurate SWIFT system details are required, which include:

  • the name of the bank and its SWIFT code;
  • the name of the correspondent bank and its SWIFT code;
  • beneficiary’s account;
  • basic information about the beneficiary that identifies him.

SWIFT tariffs

There is no single table of rates on services in the system due to the differences in banking structures. Since each international financial organization has an individual cost of services.

The most common is a two-sided payment for transaction. But even in this case the commission is lower compared to other systems, this is especially appreciable when speaking about large transfers. However, for transfers of smaller amounts of money, the system is of no less demand.

Money transaction

To transfer money through the international system, you need to do the following:

  • to indicate in the bank, that is a member of the SWIFT community, from which account the transfer will be carried out or clarify that from none;
  • to give the passport and the details of the SWIFT transfer to a representative of the bank;
  • to apply for a transfer;
  • to pay the required amount of money through the bank cash office, taking into account the commission.

Receipt of funds

Before receiving funds, it is necessary to make sure that they have arrived to the account. For this you need:

  • contact by phone with the bank to which the funds should arrive;
  • check your account in your member area remotely via the bank website.

To receive funds, you must perform the following steps:

  • to visit the bank to which funds should arrive;
  • to present the identification documents to a bank representative and withdraw money from the account;
  • if necessary, to convert the received funds into desired currency at the rate effective at the bank.

Advantages and disadvantages of the SWIFT system

Advantages:

  • a high level of security of money transfers worldwide;
  • the ability to transfer and receive any sum range;
  • calculation of funds in any currency;
  • minimum commission;
  • the ability to receive or send funds at almost any bank of the world;
  • if the system fails, it will compensate for losses.

Disadvantages:

  • transfer can take 7 days;
  • due to the involvement of several banks in the process, the system may fail.

As you can see, the number of advantages is much greater than disadvantages, this is why today the international transfers in SWIFT are the most in demand.

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BitPay Transactions Surpasses $1B in 2018, B2B Payments Records 225% Increase

BitPay is a US-based bitcoin payment provider which has recently announced its financial results of the past year. The company has processed over $1 billion in transactions alone. Moreover, its B2B payments record 225% increase in compare to 2017.

The main reason of such a lift-off is that Bitpay added a lot of new clients, like Dish Networks, HackerOne, and the State of Ohio, as well as many other law firms, data center providers, and IT vendors.

The CEO of BitPay, Stephen Pair, commented on this development:

“BitPay’s B2B business continues to grow rapidly as our solution is cheaper and quicker than a bank wire from most regions of the world. To process over a $1 Billion for the second year in a row despite Bitcoin’s large price drop shows that Bitcoin is being used to solve real pain points around the world.”

BitPay mostly supports Bitcoin transactions, however, it also supports payments with Bitcoin Cash, Gemini, and Paxos. During that year a lot of companies had to lay off their employees due to the market situation, yet, Bitpay conversely increased its manpower by 78 percent in the past year.

In addition, BitPay is attractive to the investors, in 2018, it raised $40 million in Series B funding round taking the total raised capital to $70 million.

We remind you

Two European Finance Regulators Urge the EU To Adopt Crypto and ICO Rules

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Is Bank of America Going to Cooperate with Ripple?

As we all know, the crypto market is still in a deep recession. The collapse of cryptocurrencies at the end of last year negatively influenced all coins, however, some of them suffer less than others.

One of such coins was Ripple. Not only did it manage to outrun Ethereum in the rating, its blockchain platform keeps being implemented widely by the world’s largest companies in various spheres.

We remind you:

Ripple: 13 Financial Institutions Have Joined RippleNet, Surpassing 200 Customers All Over The World

Recently, there appeared rumors on the Internet, saying that the second largest financial institution, Bank of America, might be considering forming a partnership with Ripple Labs and incorporating the blockchain technology into its system, according to Fintech News.

Currently, the bank is using SWIFT technology for international transactions, which proved to be quite inconvenient, slow and insecure.

It is still unclear whether Bank of America wants to fully apply Ripple technology or create a similar app, but its main intention is to let the customers make transaction between various banks in a safer and easier way.

Neither of the sides have officially commented on the matter so far.

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Forbes Is Looking for the Best Fintech Startups

One of the largest media companies of the world Forbes is in search of the most successful startups and projects to make up its Fintech 50 list for the year of 2019.

Forbes has been creating this rating for 3 years now. The list consists of the private companies that bring new innovative ideas and technological solutions into the financial sector. This could involve anything: from providing better conditions for taking loans to transforming the cross-border payment systems.

The Fintech 50 for 2018 included companies engaged in personal finance, Wall Street affairs, mortgage, lending, blockchain, investment and many others. Last year’s best fintech company was a California-based investment firm Acorne.

Now the Forbes team is working on a new updated rating. To do so, they need help from fintech experts or just people interested in this sphere to come up with 50 best nominees.

As for the criteria, the Forbes editor mentioned the following:

More than anything, we look for companies making industry-changing innovation. This often means they’re regularly releasing new products or features, or making big strategic improvements—not simply benefitting from products that look largely the same as they did a decade ago.”

The 2019 Fintech 50 list will come out in a month or so.

We remind you:

Crypto Master Minds That Made It Into Forbes’s 30 Under 30

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“There Is No Need”: Japan Refuted Rumours About Approval of Bitcoin ETF

Some services including Bloomberg reported several days ago that Japan considered a possibility of the approval of a Bitcoin exchange-traded fund (ETF). It allegedly would be used as an alternative to Bitcoin futures.

However, the representative of the FSA claimed that Japan was not considering of giving green light to the Bitcoin ETFs, saying:

“There is no such fact that we are considering approving ETFs which track crypto-assets at present. We are not currently considering approving them.”

The necessity of approving them may lie in decreasing the risk of price manipulation on the Japan market. Nevertheless, the FSA spokesman stated that there was no need of any cryptocurrency-related derivatives for now in Japan expressing its negative attitude towards both crypto ETFs and futures products.

He said: “Taken it into consideration that it is difficult for us to find constructive and social significance of trading crypto-assets derivatives at present, we think that there is no need for trading crypto-assets derivatives at financial instruments exchanges where many market participants are able to trade.”

We remind you:

SEC Will Release the Decision on Bitcoin ETF in February

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