Connect with us

Regulation

Information on Russia’s Regulation of Cryptocurrency Surfaces

Published

on

Sony Russia Hacker

The Russian Federation has officially decided to regulate the circulation and mining of cryptocurrency, CCN reported Tuesday.

// -- Discuss and ask questions in our community on Workplace.

Russia Outlines Scope of Crypto Regulation

A meeting of Russian officials that included President Vladimir Putin concluded that both the supply and mining of digital assets will come under the purview of central regulators. According to TASS news agency, finance minister Anton Siluanov stated that the government should “control the process of cryptocurrency emission and its circulation.”

According to reports, Russians will not be allowed to mine cryptocurrency, a process that will be maintained by a central authority. Holders of the digital asset will be allowed to exchange it for Russian rubles at any time.

Last week, Russian authorities said they would move to block cryptocurrency exchanges. It later emerged that the Kremlin decided to pursue a regulatory clampdown on the digital asset class rather than a blanket ban.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Several nations have already chimed in on the cryptocurrency debate, each arriving at different conclusions. For example, cryptocurrency is a recognized payment method in Japan, but has been blocked outright (at least for now) in China. South Korea’s approach is somewhere in the middle: it has banned initial coin offerings (ICOs), but not cryptocurrency trading. The regukatory environment will further evolve as nations come to grips with the digital currency phenomenon.

Rise of the ‘CryptoRuble’

Earlier this week, Russian communications minister Nikolay Nikiforov said that a state-issued ‘CryptoRuble’ is set to be unveiled. Several news outlets, including CCN and Investopedia, reported the matter.

Nikiforov pointed to neighboring Kyrgyzstan as a chief motivator for moving swiftly on this matter. The Eurasian Economic Commission member is planning to launch its own gold-backed national cryptocurrency.

Despite all the regulatory concerns surrounding digital currency, Russia views it as a potential opportunity to diversify its economy away from oil.

Featured image courtesy of Shutterstock 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 346 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Regulation

Former Regulator Calls Ethereum and Ripple “Non-Compliant Securities”

Published

on

Altcoins Ripple XRP and Ethereum are likely “non-compliant securities” under U.S. federal law, according to Gary Gensler, former head of the Commodity Futures Trading Commission (CFTC). Gensler’s comments, while having little impact on how regulators approach cryptocurrency, could reignite a long-standing debate about whether digital assets behave like stocks.

// -- Discuss and ask questions in our community on Workplace.

“Particularly Ripple”

Gensler recently told The New York Times there is “a strong case” for both XRP and ether being considered non-compliant securities. In his view, this was more the case for XRP, which is largely controlled by the San Francisco-based Ripple company. Ether, on the other hand, has achieved a far more decentralized structure which makes it more capable of evading the contentious ‘security’ label.

Ripple has vehemently denied any claim that its XRP token operates as a security. Earlier this month, the company’s chief marketing strategist Cory Johnson told CNBC that XRP is absolutely “not a security” and that it does not “meet the standards for what a security is based on the history of court law.”

XRP’s contested status may have thwarted Ripple’s attempt to get it listed on the major domestic exchanges. The company has reportedly offered to pay for a spot on the covered Coinbase and Gemini exchanges but was turned down on both occasions. Nevertheless, the coin has catapulted to No. 5 in global trading volume with South Korea and Japan dominating the XRP trade.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

The author would argue that the case for Ripple not being a security is stronger than the assertion made by Gensler. For starters, XRP is not an ownership stake in Ripple the company and it does not pay dividends, either. Just as banks choose to do business with Ripple and not employ XRP, so too is XRP independent of its parent company.

One area in which Gensler seems to be on the money is initial coin offerings, a market that has attracted a great deal of interest from the U.S. Securities and Exchange Commission (SEC). Already blacklisted in China and South Korea, ICOs are being closely watched by U.S. regulators. The SEC recently issued a warning to exchanges that they must register with the agency if they intend to offer trading in ERC-20 tokens that are deemed securities.

FUD-Less Rally

Gensler’s comments, though offering food for thought, can probably be cataloged in the FUD (fear, uncertainty and doubt) section of cryptocurrency news. It was the absence of such stories that helped catalyze a two-week rally in cryptocurrencies, resulting in the gain of $140 billion.

Ether and XRP have been integral to the rally, with each currency surging double-digits percentage wise. Ethereum gained more than 25% last week while XRP surged 44%.

Ether prices were last seen hovering north of $642 for a total market cap of $63.6 billion, according to CoinMarketCap. That makes it the clear-cut No. 2 cryptocurrency by market capitalization.

XRP, the world’s third-largest crypto asset, traded at $0.88 for a total market value of $34.3 billion.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
3 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 53 votes, average: 5.00 out of 5 (3 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 346 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Regulation

Ripple Wants Governments to Guide Cryptocurrencies Out of Regulatory Purgatory

Published

on

Ripple has urged governments to revisit their approach to cryptocurrency, arguing that proactive measures are needed to guide the market.

// -- Discuss and ask questions in our community on Workplace.

Urging Regulation

Commenting on British regulation, Ripple’s head of regulatory relations Ryan Zagone has called on officials to foster a safe and transparent cryptocurrency market through a number of initiatives. These “pillars,” as Zagone called them, include consumer protection, anti-money laundering and financial stability.

“We’re at that time now where we need more clarity and rules and we need more certainty. It’s a good time to start revisiting that ‘wait and see’ ­approach taken by regulators,” he said while comparing cryptocurrencies to the dot-com boom of the 1990s.

Zagone urged British lawmakers to adopt the Japanese model for cryptocurrency regulation, arguing that such an approach would balance the market between risk and innovation. This includes regulatory guidelines that would recognize digital currencies as a form of payment.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Ripple is perhaps better suited to play by government rules given its strong penetration traditional finance. However, trading of its XRP token remains limited within institutional circles.

 

 

Regulation: Not as Bad as It Seems?

Though many in the blockchain community have dreaded government regulation, others have argued that new rules will help guide the nascent market to a better place. From a practical perspective, clear rules governing transactions, trading and initial coin offerings (ICOs) would likely reduce the rampant media bias against cryptocurrencies. A market without ‘FUD’ (fear, uncertainty and doubt) is less prone to sudden and dramatic shifts in consumer sentiment.

Several jurisdictions are positioning themselves to become major players in the cryptocurrency market by offering favorable regulation and an open environment for innovation. Chief among them are Switzerland, Singapore and Malta, three jurisdictions we covered as part of our ‘Where in the World to ICO’ series.

Nations such as Japan have already developed clear cryptocurrency guidelines, while places like South Korea have gone back and forth on how to regulate the digital asset class. Though frustrating, the ‘wait and see’ perspective highlighted by Zagone is the dominant approach to cryptocurrency regulation worldwide. It’s also the official stance of the G20, which only last month quelled expectations for imminent crypto regulations after deeming that the asset class poses no risk to financial stability. This is definitely a good thing, but does little to close the regulatory gap that Zagone and others have argued needs to be closed.

Elsewhere on the regulatory circuit, New York’s Attorney General on Tuesday announced the Virtual Markets Integrity Initiative, a so-called “fact-finding inquiry into the policies and practices” of cryptocurrency exchanges. A total of 13 cryptocurrency exchanges are part of the inquiry, including Binance, Bitfinex, Bitstamp USA, Bittrex, Coinbase’s GDAX, Gemini and Poloniex.

Keeping with New York, the Attorney’s Office for the Eastern District has accused a local resident of carrying out an elaborate cryptocurrency scheme meant to defraud investors. Blue Bit Banc, a binary options platform, allegedly manipulated data to rig the rules of binary options trades.

Fraudulent activities involving cryptocurrencies have caused businesses to self-regulate their exposure to the digital asset class. Case in point: Facebook, Google and Twitter have issued blanket bans on all forms of cryptocurrency advertising from banner ads to keyword targeting. The author has argued that the impact of the ban isn’t as bad as it appears given that less than 1% of the traffic generated on cryptocurrency exchanges comes from paid advertising.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 346 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Regulation

Why Japan Could Represent the Future of Cryptocurrency

Published

on

Japan has quickly emerged as a powerful hub for cryptocurrency. Liberal policies, a budding investment community and full embrace of blockchain technology makes a strong case for the world’s third-largest economy becoming the center for everything crypto. Now, data on crypto trading as well as proposed guidelines for initial coin offerings (ICOs) have underscored Japan’s leadership pace.

// -- Discuss and ask questions in our community on Workplace.

Crypto Trading Flourishes in Japan

While Japan has for some time been a major hub for cryptocurrency trading, a new report from the country’s top financial regulator has provided actual numbers on usage.

The Financial Services Agency (FSA) recently reported that at least 3.5 million people were trading crypto assets on one of the nation’s 17 domestic exchanges. The vast majority, some 84%, are between the ages of 20 and 40.

What’s more, trading volumes on domestic exchanges jumped from $22 million in March 2014 to a whopping $97 billion in March 2017. Over the same period, trading on margin surged from $2 million to $543 billion.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Despite the growth, Japanese exchanges do not rank among the world’s largest when measured in terms of trade volume, a sign there may be more domestic users trading on one of the many international platforms.

As of Wednesday, Japan’s bitFlyer was ranked 19th in terms of daily transaction volume; Bitbank came in at 39th.

Research Group Proposes ICO Guidelines

A government-backed research group recently put forward several proposals for regulating the ICO market, including guidelines on consumer protection and anti-money laundering.

Tama University professor Takuya Hirai, who is also a member of Japan’s House of Representatives, spearheaded the proposals in collaboration with industry advisers representing ICO Business Research Group and bitFlyer, among others.

In a report published earlier this month, the group said: Appropriate rules must be set to enable ICO to obtain public trust and to expand as a sound and reliable financing method,” adding that their efforts are intended to propose “rules needed to establish ICO as a sustainable financing method based on discussions conducted by the research group.”

The research group intends to bring more transparency to the ICO market, which has been plagued by malicious actors and overhyped projects. According to various estimates, ICOs raised between $4 billion and $6 billion last year alone. The market is poised to break that record by the end of the second quarter, based on recent industry trends.

For all the negativity surrounding ICOs, several nations are developing more favorable guidelines for the industry. Among the top or emerging destinations for token issuers are Switzerland, Singapore and even Malta.

By bringing clarity to ICOs, Japan could become a top jurisdiction for token issuers when they decide to launch their project. Japan’s embrace of the fast-growing market already makes it a more attractive location when compared to other crypto hotbeds. China has banned ICOs entirely, South Korea is on the fence and the United States has been hyper-critical of projects that don’t self-classify as a security.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 4.00 out of 52 votes, average: 4.00 out of 52 votes, average: 4.00 out of 52 votes, average: 4.00 out of 52 votes, average: 4.00 out of 5 (2 votes, average: 4.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 346 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending