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    Home Unlabelled Crypto Currency Markets Its beginning to look a lot like christmas..

    Crypto Currency Markets Its beginning to look a lot like christmas..

    June 16, 2019

    Crypto Currency Markets Its beginning to look a lot like christmas..

    Its beginning to look a lot like christmas..

    Posted: 16 Jun 2019 07:02 AM PDT

    Regulation and Crypto - How do we move forward?

    Posted: 16 Jun 2019 03:15 PM PDT

    With the growing trend of major centralised crypto exchanges dramatically changing their terms of service to exclude customers from the US (amongst others), there is still a belief among the community that the same forces will combine together on decentralised exchanges (DEX).

    There are several reasons why this isn't going to happen on the scale that is needed, and only compliant centralised crypto exchanges will emerge victorious.

    Also, this is not the first-time offshore companies and P2P platforms have tangled with regulators, so I want to recap on a few of the correlations between past lawsuits and the current situation with crypto exchanges.

    Online Poker

    In 2006 the US passed the SAFE Port Act which contained the Unlawful Internet Gaming Enforcement Act of 2006 (UIGEA), ultimately this prohibited the online gaming sites performing any transactions with American Financial Institutions. While many of the operators closed its doors completely to US customers, a few operators including the two then largest (PokerStars & Full Tilt) continued in defiance waiting for the bill . As with exchanges, poker sites rely heavily on centralised traffic to get the volume that the leaders are famous for. PokerStars, operating from the Isle of Man, had assured users that it could continue operating under the advice of their lawyers. Poker, at this time was debatable whether it was in the scope of the legislation of the bill, although the DOJ openly disagreed. By 2010 the Justice Department had spent years hunting down and prosecuting those involved in processing U.S. payments for PokerStars and other offshore websites. Then in early 2011, known as BLACK FRIDAY, the justice department intervened decisively, freezing funds around the world. This included 75 bank accounts associated with the gambling firms, including Swiss accounts linked to PokerStars companies. A little more than a year after Black Friday, PokerStars paid $547 million to settle the Justice Department's civil claims , without admitting wrongdoing or liability. As part of the deal, it promised to never again take U.S. poker players' money and to ensure that then owner, and still a fugitive, Isai Scheinberg – was no longer directly involved in running the business.

    What does this have to do with exchanges you ask?

    Should an exchange be seen to be operating outside of a countries law, they may be offshore and not directly answerable to that country, but if they are deemed to be turning a blind eye to money laundering, bank fraud, violating security laws etc. then the funds are NOT safu. Even without the seizures, compliant operators could be forced not to deal with funds originating from non-compliant exchanges, DEX, mixers etc. so your FIAT ramps in your jurisdiction would be effectively nullified. Given that the world currently (and for the foreseeable future) operates primarily in FIAT. The possibility of this alone would severely limit the majority interest in using these services, and resulting in little volume.

    P2P File Sharing vs DEXs

    As with using a DEX, P2P file sharing attempts to circumnavigate laws and regulations by leaving the transaction in the hands of the users. In many places this system falls over because as with most DEX, P2P file sharing platforms largely rely on a central site/operator to maintain the network/database such as KickAss Torrents and Napster. These operators can be prosecuted on the basis that if they are deemed capable of supervising/controlling any infringements or whether they stand to benefit financially. Napster in this case was deemed to be financially benefiting purely on the basis that they were gaining users and it could be used to serve future business models. This ruling throws questions over the culpability of operators such as IDEX and BINANCE DEX as they have more of a direct financial interest in their operations by giving listings and taking fees like a regular exchange does. The SEC has already landed charges on the ETHERDELTA founder for operating an unregistered exchange in November 2018, albeit a DEX.

    Yes, there are true P2P file sharing operators and true DEXs and they both suffer from similar issues. Primarily - speed, a true DEX cannot deliver the speed required for high volume assets and high frequency trading. Secondly, as a user of a P2P system you are not absolved of the laws regarding your transactions, you can still be prosecuted even if the operator can't. The possibility of these two points alone will also severely limit the majority interest in using these services, and yet again less volume.

    Using a DEX is also not a solution for the mainstream, while P2P file sharing was very widespread and common, people were happy to take the risk for a free mp3 or movie, it mainly served a different client base to the investor community. Any serious investor (retail or institutional) coming into the crypto space will not be willing to risk a portion of their portfolio on non-complaint exchanges as regulations continue to tighten.

    The Resistance

    There will be many that disagree with compliance, mainly those that have been in the space the longest. Like the internet, its no longer the playground it was back in the early 90s as user numbers started dramatically increasing, yet here we are using the same basic tools discussing a new one. This doesn't mean the end of DEXs and underground trading. I do however think that these will not be the places where the next major IEOs are taking place and where the high volume assets will be traded. For the crypto space to continue to push through to the mainstream and get new money coming into the space so BTC could reach new highs, changes are going to happen. The ideology of the past will have to adapt, and lets not forget how tainted it is with scams, as with the early days of the internet. Trusted central hubs have been formed over the years, although they are not all without fault, they serve a purpose and have also had to adapt.

    The Future

    The next generation of exchanges will undoubtedly be taking the market share of future trading alongside with crypto-fiat services. Coinbase are one of the few major exchanges that are looking safe in the current climate of compliance. New competition will drive down the fees as well so Coinbase will have to adapt to maintain its share in the US/Europe, as with in Europe, the launch of Eterbase with integrated IBAN banking will surely shake up the industry.

    Exchanges that are currently side stepping compliance such as Binance, Gate.io, Huobi, and Kraken (although on May 15, 2018, Powell said that Kraken "would probably get registered as a broker dealer and then an ATS" with the SEC), will soon find themselves under more international pressure and possibly prosecution if they operate without due diligence in regulated markets.

    Trade Safu.

    submitted by /u/opeku
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    Bitcoin Exceeds 1 Mln Daily Active Addresses, Other Signs Reveal BTC Might Hit $100K This Year

    Posted: 16 Jun 2019 02:25 PM PDT

    Bitcoin Only has Days to Surpass Old Highs, Crypto Winter is Over – Fundstrat Global Co-founder

    Posted: 16 Jun 2019 10:38 AM PDT

    Bitcoin, Litecoin, Ethereum, NEO and Cardano’s ADA

    Posted: 16 Jun 2019 10:53 AM PDT

    The top 6 exchanges in 2019 by YahooFinance

    Posted: 16 Jun 2019 01:05 PM PDT

    What is loopia?

    Posted: 16 Jun 2019 05:17 AM PDT

    For Bounty Hunters, The Anchor bounty campaign is now live on Bounty0x. Everyone can participate and earn DOCT tokens by sharing about The Anchor Project. Register for free and start earning!

    Posted: 16 Jun 2019 04:14 PM PDT

    KuCoin has launched Affiliate program and earn up to 50% commission.

    Posted: 16 Jun 2019 06:38 AM PDT

    Bitcoin Over $9,000! Binance Closes US accounts, and Patriots burn USD - June 16th, 2019

    Posted: 16 Jun 2019 01:15 PM PDT

    The 18th Of June Isn’t Just Another Boring Tuesday

    Posted: 16 Jun 2019 01:08 PM PDT

    Basic Attention Token: Intraday Timeframe Chart Patterns

    Posted: 16 Jun 2019 12:56 PM PDT

    Gaming Giant Ubisoft is Developing a Blockchain-Based Marketplace.

    Posted: 16 Jun 2019 11:48 AM PDT

    Diamond middle market is in danger of collapse

    Posted: 16 Jun 2019 03:05 PM PDT

    The recent news from monopolized diamond industry are not very good. Rapaport reports that middle markets are under pressure due to the trade war with China and not gaining any significant profits to maintain the reliable supply chain. Diamond cartel even had to adjust the artificial Diamond Index and lower the prices, which are down 1.7% since the beginning of 2019.

    Martin Rapaport, Chairman of the Rapaport Group had stated that "the middle markets are in danger of collapse. We are reaching the point where there is insufficient liquidity to support the flow of diamonds through the supply chain. If the trade does not change its business practices and adapt to new realities, the diamond industry will suffer extreme financial and regulatory disruption. Manufacturers will stop cutting."

    As for now, manufacturers reject high-priced raw diamonds that is making their work unprofitable. This is resulting in De Beers and Alrosa are slowly decreasing price levels. But this is not enough for polished suppliers to maintain the stability. Due to the unfavorable situation on the market, they sell blockchain source verification as a value-added service, which is one of the few options that gain interest among buyers.

    In the next few years, the demand on overpriced diamonds is expected to decrease even more dramatically. And this will be the end for the monopolized diamond industry, which is unable to change its business practices and adapt to the new realities. Diamond Open Market is going to demonstrate a wholly new approach for diamond trading, with fair pricing and possibilities of not only buying, but also selling the diamond.

    submitted by /u/JoeReviewer
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    Crypto Hedge Fund Trading Strategies: Market Making

    Posted: 16 Jun 2019 10:28 AM PDT

    Second Century Ventures backs Blockchain-based real estate startup Propy

    Posted: 16 Jun 2019 10:25 AM PDT

    Don't let 4chan fool you! Get at least a small bag of LINK.

    Posted: 16 Jun 2019 01:55 PM PDT

    LTO network announces product launch event, to be held in Amsterdam!

    Posted: 16 Jun 2019 05:37 AM PDT

    eBoost lists on Binance DEX, spikes 3000%

    Posted: 16 Jun 2019 09:14 AM PDT

    Pricing In The Bitcoin Halving: How Miners Are The Key To Major Upswings

    Posted: 16 Jun 2019 08:48 AM PDT

    Cryptocurrency and Blockchain – Industry News – (06.07.19 – 06.14.19)

    Posted: 16 Jun 2019 08:04 AM PDT

    Total Market Cap, as of 06.14.19 at 12:00pm (PST): U.S. $264,851,593,863 (+1.92%)

    Missed last week's update? Click here

    STORY OF THE WEEK

    • Effective September 12th, 2019, U.S. customers to be blocked from trading on Binance.com.

    CRYPTOCURRENCY TRADING SERVICES

    • Polish cryptocurrency exchange Coinroom shuts down overnight and takes users funds

    • Coinbase now offers its crypto-to-Visa card for its users in Spain, Germany, France, Italy, Ireland and the Netherlands.

    • On June 21st, 2019, Bittrex will restricts 32 token trading markets for its U.S. customers

    • Binance to launch new exchange focused on U.S. customers with FinCEN-registered partner BAM Trading Services.

    • Leading cryptocurrency derivatives exchange BitMEX reports an increase in attacks on user account credentials. As a result, withdrawal requests must be verified via email and the firm is looking to make 2FA mandatory on the platform.

    REGULATION

    • The mayor of Vancouver pushes for outright ban of crypto ATM's in the city. A decision to regulate, monitor or ban will be reached by Q4 2019.

    • The Financial Action Task Force (FATF) is set to finalize guidance for cryptocurrency businesses by June 21st, 2019.

    • In an official business plan issued by The Canadian Securities Administrators (CSA), the regulatory body looks to apply existing securities regulations to address crypto assets by 2022. The watchdog will first research and identify emerging regulatory issues and then proposing solutions to mitigate them.

    TECHNOLOGY

    • Visa launches Visa B2B Connect Network, a service designed to help Visa's corporate clients create near instant international payments powered by distributed ledger technology.

    INSTITUTIONALIZATION

    • The largest bank in South Korea, KB Kookmin is gearing up to launch a digital asset custody solution in partnership with blockchain start-up Atomrigs Lab.

    • Bakkt will begin user testing for its physically delivered Bitcoin futures product on July 22nd, 2019.

    • Facebook brings on Visa, Mastercard and PayPal as backers of its own cryptocurrency. Each of the firms will invest U.S. $10 million into a foundation that will govern the asset. The list has since included Ebay, Coinbase, Andreessen Horowitz, Mastercard and Stripe.

    PEOPLE

    • Code contributor Michael Ford will join existing maintainers Wladimir van Der Laan, Jonas Schnelli, Marco Falke, and Samuel Dobson to maintain the latest version of the bitcoin node software.

    • The cryptocurrency arm of payments company Square has announced former Director at Google, Steve Lee as its first hire.

    • Chief Marketing Officer of ConsenSys, Amanda Gutterman steps down from her role and will instead remain as an advisor.

    TWITTER

    • @nic_carter – "The role of a Bitcoin evangelist should be to manage expectations, not to inflate them"

    • @nic_carter – "Bitcoin may well be environmentally costly, but it is absolutely worth it, even if it cost 10x more. Because Bitcoin disempowers debt-financed consumerism which the ultimate environmental scourge"

    • @barrysilbert – "The launch of Facebook's cryptocurrency will go down in history as THE catalyst that propelled digital assets (including bitcoin) to mass global consumer adoption. Will be remembered as just as important -- and transformative -- as the launch of the Netscape browser. Buckle up"

    submitted by /u/Edmund_N
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    Analyst: Ripple’s XRP to Bridge Gap Between Facebook Coin, JPM Coin, Others

    Posted: 16 Jun 2019 12:10 PM PDT
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