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A multi-asset universal mobile wallet says it has become the first such platform to support ADA — “a digital cash that represents the future of money.”

The company behind a multi-asset, universal wallet that can store major crypto and smart contract tokens in one place says it has become the first mobile wallet to support the ADA cryptocurrency.

Infinito Wallet says the milestone coincides with an update to version 1.15.0 of its platform – enabling users to “securely send, receive and check transaction history of ADA.”

According to the company, this development is significant because very few wallets on the market support ADA, and there is no such app for mobile devices. Infinito developers have worked with the development team behind Cardano and IOHK, and they utilized their official Cardano Rust project to seamlessly integrate ADA-support into the Infinito Wallet. With IOHK’s permission and support, Infinito has contributed code to the open-source Cardano Rust project for ADA mobile wallet integration and will continue such support for the Cardano open-source community.

Although there is a desktop wallet exclusive to ADA called Daedalus, Infinito Wallet says people who hold this cryptocurrency deserve a mobile-driven, “ultra-lightweight and portable” alternative, which would maintain the utmost stability and security. Furthermore, on its roadmap, the Universal Wallet plans to support unique features of the Cardano blockchain, including staking Ouroboros.

ADA now joins thousands of other tokens on the biggest smart contract platforms — such as ETH, EOS, NEO — together with leading coins, including Bitcoin, Bitcoin Cash, Litecoin, Dash, ETC and Dogecoin, supported by Infinito Wallet.

Understanding ADA

Infinito Wallet describes the ADA cryptocurrency, which is based on the third-generation Cardano blockchain, as “digital cash that represents the future of money.” It is hoped the technology will pave the way for fast, direct and secure transfers — and in time, Cardano plans to “tackle numerous problems facing the crypto industry” through a smart contract platform for the financial applications that consumers, businesses and governments can rely on.

The company says it has gone through a third-party security audit, and now users have full access to their private keys. Through the Infinito Wallet app, which is available on Apple’s App Store for iOS devices and Google Play for Android smartphones and tablets, users can check their ADA balance through the dashboard, send the cryptocurrency to any address and review their transaction history. It is also possible to receive ADA by sharing a public address or through a unique QR code that has been integrated into the app.

More upgrades planned

The company says it plans to launch version 2.0 of its universal wallet in the fourth quarter of this year, and this will be equipped with a new design that offers a higher degree of customization and an enhanced experience for Infinito Wallet’s user base. Other features are going to include “full support” for blockchain mainnets, including Ontology and more.

Infinito Wallet will also be launching various reward campaigns, including free token Airdrops and Referral programs in Q4, to offer more incentives to users.

The universal wallet is available in a plethora of languages — including English, Chinese, Japanese, Vietnamese, Korean and Russian — and announcements through its official Telegram groups are also available in four languages.

In a nod to its mobile-driven approach, Infinito Wallet supports Touch ID to provide “easy and fast app access without sacrificing security.” Additionally, its apps allow users to store a list of the addresses that they send and receive money from the most, with a view to pave the way for “hassle-free transactions.”

Unlike other wallets, the company says it allows users to include messages with their transactions — making it easier to maintain their records. This is coupled with an ability to export an account’s entire transaction history via .csv files and emails.

In the future, users will be able to see the fiat value of their portfolio and how it has changed over the past 24 hours, in real time.

Infinito Wallet launched toward the end of 2017 — it has been downloaded by more than 250,000 users and has received positive reviews by the community. The brand is the brainchild of Infinity Blockchain Labs Europe, which hopes that its universal wallet will “serve as a gateway for users to maximize usage and potential of their cryptocurrencies.”

Chinese search engine Baidu has released a white paper for its so-called “Super Chain” technology.

Chinese search engine and web services company Baidu has released the Baidu Blockchain White Paper V1.0 on Wednesday, September 26, which describes the development of a “Super Chain” network system.

Baidu Blockchain Lab released the blockchain white paper focused on “the independent development of the ‘Super Chain’ network system.” The paper introduces the idea of commercializing the Baidu cloud blockchain blockchain-as-a-service (BaaS) platform in addition to six applications based on the Super Chain; Totem, Degree Universe, Baidu Association, Treasure Chest, Encyclopedia Online, and Hubert.

According to the white paper, Baidu’s Super Chain is more efficient than a traditional blockchain in that performs with a higher degree of hardware utilization. Per Baidu, Super Chain nodes “use multi-core parallel computing to maximize CPU utilization and increase throughput.”

The Super Chain is a stereo network that supports parallel sidechains. There is a root chain, which manages parallel chains and the operating guidelines of the entire network, that supports data exchange with each chain.

The Super Chain operates on what is dubbed a “pluggable consensus mechanism.” Within the network, the Super Chain allows different parallel chains to choose their own consensus mechanisms. It also supports consensus escalation through a voting mechanism.

The white paper states that Baidu will focus on applying the technology in food safety, product quality, new retail, new manufacturing, supply chain finance, intellectual property and trading, travel, tourism and social networking.

Modular services with the Baidu Super Chain will include scenarios in certification, digital rights, clearing and settlement, supply chain finance, digital assets, and games.

In June, the internet search giant revealed its Super Chain protocol in the context of reducing energy consumption in cryptocurrency mining operations.

A Xinhua News Agency investigation revealed ways Chinese crypto investors are avoiding the country’s ICO ban.

An investigation by the Xinhua News Agency has shown it is possible to bypass China’s Initial Coin Offering (ICO) ban, according to an article published September 26.

The investigation has shown that despite the government’s efforts to crack down on “ICO illegal financing,” investors can circumvent the law by using a “foreign shell” company, among other possibilities.

Xinhua reports that after China’s crypto regulations became more stringent, domestic virtual currency exchanges went overseas for registration — while appearing to be shut down within the country — and were still able to “provide trading services to domestic users.”

The agency specifically mentions Malta as a destination of choice, noting the existence of Chinese language versions of the now Malta-based companies. Xinhua also mentioned the use of Telegram messaging groups to coordinate with domestic Chinese users. Quoting an “insider source,” the news agency writes:

“It seems that the entire process platform does not violate the relevant policies, but the over-the-counter transaction[s] [have] actually opened a hole in the ICO token transaction.”

While authorities have attempted to block internet access to ICO projects in China, Xinhua states that most measures can be subverted by using a Virtual Personal Network (VPN).

Xinhua also claims that there are “self-media public companies” that play a role in advertising and promoting ICO projects within China.

China’s first outright ban of ICOs was enacted a year ago in September 2017. Earlier this month, the People’s Bank of China released a new document on its official website, stating that it would continue to guard against ICO and cryptocurrency-related trading risks.

Swiss startup SEBA Crypto AG has raised $103 million to build a bank offering crypto-related services.

Switzerland-based startup SEBA Crypto AG has raised 100 million Swiss francs ($103 million) to set up a bank offering cryptocurrency-related services, Reuters reported September 26.

SEBA is reportedly headed by former UBS bankers — Guido Buehler as chief executive and Andreas Amschwand as chairman — and plans to apply for a banking and securities dealer license from Swiss financial market regulator FINMA. A license would allow the firm to conduct crypto trading and investments business for other banks and qualified investors.

Buehler told Reuters that SEBA aims to become a bridge between traditional banking and the cryptocurrency industry. The startup also intends to provide corporate financing, including consultations on Initial Coin Offerings (ICOs) and other digital asset-related services to corporate clients. Amschwand commented on the project:

“In Switzerland we have commitment from various authorities to establish a comprehensive regulatory environment for the development of blockchain technology and the sustainable, stable growth of crypto assets.”

SEBA is purportedly planning to expand its operations into major financial hubs, starting with Zurich in 2019. Investors who financed SEBA include such firms as BlackRiver Asset Management and Hong Kong-based Summer Capital, along with other parties from Switzerland, Singapore, Malaysia, China and Hong Kong.

Earlier this month, the Swiss Bankers Association (SBA) issued basic guidelines for banks working with blockchain startups in order to prevent a mass crypto exodus from Switzerland due to regulatory arbitrage.  

Per the scheme provided by SBA, blockchain firms without Initial Coin Offerings (ICOs) should be treated like other small- and medium-sized companies. Firms with ICOs must follow strict rules and fall under the purview of Swiss anti-money laundering (AML) and know-your-customer (KYC) laws.

In August, the Maerki Baumann private bank began accepting crypto assets from payment received for services rendered, as well as those earned from crypto mining. Maerki Baumann noted that they are not ready to provide direct cryptocurrency investments, but will provide “experts” to clients interested in crypto investing.

In June, Hypothekarbank Lenzburg became the first bank in Switzerland to provide business accounts to blockchain and crypto-related fintech companies. However, the bank is reportedly very selective in accepting new customers, and as of June had taken on only two companies from the crypto industry.

West Virginians in the armed services stationed abroad have started using a blockchain-based app for voting in this year’s midterm elections.

West Virginians have begun using a blockchain-based mobile voting app for casting absentee ballots in the upcoming midterm elections, Slate reported September 25.

Citizens of West Virginia that currently live overseas have reportedly started using  a blockchain-enabled application for voting on Friday, September 21. The application — dubbed Voatz — will allow voters registered in 24 countries to cast absentee ballots via smartphone, mainly targeting military members stationed abroad.

The pilot project for remote voting, which was only available to a select group of voters, started in March and was successfully completed on May 8, the day of West Virginia’s primary elections.

In early August, Mac Warner, the West Virginia Secretary of State and Voatz told CNN about the successful outcome of testing after “four audits of various components” of the platform.

Following the report, Warner’s deputy chief of staff Michael L. Queen said that each separate West Virginia county will make the final decision about using the app for November elections, adding that voters will be still allowed to cast paper ballots if they choose.

The blockchain-powered remote voting initiative has drawn some criticism, namely over security concerns. Joseph Lorenzo Hall, the Chief Technologist at the Center for Democracy and Technology, claimed:

“Mobile voting is a horrific idea. It’s Internet voting on people’s horribly secured devices, over our horrible networks, to servers that are very difficult to secure without a physical paper record of the vote.”

Bradley Tusk of Tusk Montgomery Philanthropies — the company which funded the app’s development — encouraged blockchain deployment for voting. Tusk stated that remote voting can turn out more voters, and as a result, “democracy would work a lot better.”

Audit firm Deloitte will help the RiskBlock Alliance blockchain consortium to expand into Canada.

‘Big Four’ audit and consulting firm Deloitte will help The Institutes RiskBlock Alliance blockchain consortium expand into Canada, according to an announcement published September 25.

RiskBlock Alliance is a U.S.-based consortium launched in 2017, which focuses on the application of blockchain technology in the insurance industry, with more than 30 participant organizations. The alliance is reportedly looking to launch blockchain-based applications, including a proof of insurance app, which is “a first notice of loss data-sharing process and a smart contract-enabled subrogation tool.”

In the coming months, Deloitte will reportedly help RiskBlock Alliance to bring its operations to Canada within its international expansion strategy. The alliance will register a legal entity in Canada and start collaborating with Canadian-based property-casualty and life/annuity insurers.

Per the announcement, Deloitte will be responsible for the methodology, prioritization and development of a variety of blockchain applications, which will address various elements of the insurance transaction life cycle. New apps will reportedly be provided by R3’s Corda platform-based Canopy.

Linda Pawczuk, a principal and the financial services blockchain leader at Deloitte Consulting LLP, said that the platform will serve as a “home base” for the global insurtech industry over the coming years.

Ted Epps, a principal with Deloitte Consulting, said that the RiskBlock Alliance has strategic value in that it is “[able] to connect a diverse set of insurance industry stakeholders through a shared network.” He added that the current expansion into Canada, “will accelerate the consortium’s global reach and take blockchain to the next level in the insurance industry—and financial services more broadly.”

In August, Deloitte published a survey revealing that blockchain tech is gaining traction at the executive level of enterprises across diverse industries. 74 percent of all the respondents to the survey said their executive team believes there is a “compelling business case” for use of blockchain, with 34 percent saying that some form of blockchain deployment was already active within their organization.

American delivery services giant FedEx has joined Hyperledger to contribute to blockchain technology development.

American courier delivery services giant FedEx has joined Hyperledger, an open-source project established to improve cross-industry blockchain technologies, according to a press release published September 26.

Hyperledger, which is hosted by the Linux Foundation, enables organizations to build blockchain-based industry-grade applications, platforms and hardware systems in the context of their individual business transactions.

In joining Hyperledger, FedEx has become one of over 270 members. Other member companies include IBM, Intel, Deutsche Boerse, and J.P. Morgan. Kevin Humphries, Senior Vice President, IT, FedEx Services said that blockchain technology has “big implications” for supply chains, logistics, and transportation.

In February, FedEx joined the Blockchain in Transport Alliance (BiTA), a focus group whose members include rail operator BNSF, JD Logistics, and GE transportation. BiTA aims to improve transparency and security in shipping with blockchain tech.

Hyperledger Executive Director Brian Behlendorf has previously stated that distributed ledger technology (DLT) will diminish the power of tech giants like Google, Facebook, and Amazon. In today’s press release he said:

"We are gaining traction around the world in market segments from finance to healthcare and government to logistics. This growth and diversity is a signal of the increasing recognition of the strategic value of enterprise blockchain and commitment to the adoption and development of open source frameworks to drive new business models."

FedEx has demonstrated a proactive approach to adopting blockchain technology. In May,  FedEx CEO Fred Smith said he believes that blockchain is the “next frontier” for global supply chains. In July, the FedEx Institute of Technology partnered with pharmacy services company Good Shepherd Pharmacy to develop new blockchain-powered infrastructure to help cancer patients get medications.

A recent report by the Statis Group shows that the volume of cryptocurrency trading will grow at a CAGR of 9 percent until 2028.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

The market data is provided by the HitBTC exchange.

Though cryptocurrencies are stuck in a bear market, it hasn’t managed to scare away investors. A report by the Satis Group predicts digital currency trading volume to grow by over 50 percent in 2019. They also anticipate a compound annual growth rate (CAGR) of about 9 percent all the way until 2028.

Several nations are introducing measures to benefit from the increased adoption of the blockchain technology and crypto trading. Many top players in the crypto space urged the U.S. regulators to come up with clear crypto regulations, the alternative being to lose out to competition.

Similarly, tech giants are warming up to cryptocurrencies. Google has partially reversed its ad ban for cryptocurrency exchanges advertising in the U.S. and Japan. The fundamentals of the sector are improving and investors are likely to jump on the bandwagon once a confirmed bottom is in place.

Let’s identify digital currencies that have completed a bottom formation.

BTC/USD

Bitcoin failed to hold the support at $6,583.46 and dipped to a low of $6,341 on September 25. A break of $6,341 can result in a decline to the critical support zone of$5,900–$6,075.

The BTC/USD pair is currently attempting to scale above $6,583.46 once again. If successful, a move to the downtrend line of the descending triangle is probable. A break out of this will invalidate the bearish pattern, which should invite short covering.

The pair should pick up momentum above $7,413.46 and quickly rise to $8,566.4.

Both moving averages are flat and the RSI is close to the midpoint, indicating that the bulls and the bears are in a state of equilibrium. A fall below $6,341 will tip the scale in favor of the bears, while a rally above the downtrend line will win it for the bulls.

Traders can hold their long positions with the stops at $5,900.

ETH/USD

Ethereum has dipped below the 20-day EMA but is trying to hold the $200 mark. A break of this can extend the correction to $192.5 and further to $167.32.

On the upside, the ETH/USD pair will face resistance at the 20-day EMA and the 50-day SMA. Though the trend is down, the 20-day EMA is flattening, which shows that the selling pressure in the near-term has weakened.

The first sign of a change in trend will be when the price scales above the 50-day SMA. We shall wait for the breakout before proposing a trade on it.

XRP/USD

Ripple has started a new uptrend. The upsloping moving averages and the RSI close to the overbought territory indicate that the buyers have an edge in the near-term.

We had expected the current pullback to end between the 50 percent and 61.8 percent Fibonacci retracement levels and that is what happened. Prices bounced sharply from $0.435 on September 25.

Currently, the higher levels are witnessing some profit booking. After such a volatile rally, the XRP/USD pair might enter a consolidation period for a few days, before resuming its uptrend. Therefore, we shall wait to buy on dips or on a confirmation of the resumption of the uptrend. Our bullish view will be invalidated if the bears sustain the price below $0.4255.

BCH/USD

After underperforming in the current pullback, Bitcoin Cash has made a sharp upward move today. It is attempting to break out of the 50-day SMA and the resistance line of the descending channel.

If the bulls succeed in closing (UTC time frame) above the channel, a rally to $660 is probable. A breakout will also signal a change in trend.

If the bears defend the overhead resistance, the BCH/USD pair might remain inside the descending channel. The traders can start a position on the long side after the price sustains above the channel. The stops can be kept at $400.

EOS/USD

EOS is currently range bound but is struggling to hold the critical support at the moving averages. A break of the 50-day SMA can result in a fall to $4.493

The EOS/USD pair will resume its downtrend if the bears break and close below $4.493. Therefore, traders should protect their long positions with stops at $4.4.

Any recovery attempt will face resistance at $5.65 and above that at $6.3117. The digital currency will pick up momentum above $6.8299.  

XLM/USD

Stellar dipped below the critical support of $0.24987525, both yesterday and today. On both occasions, the 20-day EMA provided a strong support.

The bulls will again try to break out of the downtrend line of the descending triangle. If successful, a retest of the September 23 intraday high of $0.30434761 will be on the cards.

The XLM/USD pair will invalidate the bearish descending triangle pattern if it sustains above the downtrend line for three days. This is a bullish sign and can lead to a rally to $0.36 and higher. Therefore, we suggest traders hold their long positions with the stops at $0.21.

On the downside, a break of the 20-day EMA can sink the virtual currency to $0.21489857, below which a retest of $0.184 is possible.

LTC/USD

Litecoin is currently range bound between $49.466 and $69.279. As the previous trend leading into the consolidation was down, we have to wait for a breakout to confirm a change in trend. Any break down from the range will resume the downtrend.

Both moving averages are flat and the RSI is close to the midpoint. This shows balance between demand and supply.

The first sign of a change in trend will be when the LTC/USD pair breaks out and sustains above $69.279. Such a move will complete a double bottom at $49 and can result in a rally to $89–$94. Hence, the traders can initiate long positions on a breakout and close above the range.

We won’t find any buy setups for as long as the pair keeps trading inside the range.  

ADA/USD

Cardano is attempting to bounce off the support at $0.071355. If successful, it will again try to break out of the 50-day SMA and the intraday high of September 23.

The 20-day EMA is flat and the RSI is near the neutral zone. This shows that the selling has subsided but the buyers are yet to return. There are no buy setups on it yet.

The ADA/USD is likely to form a range for a few days before starting a new uptrend. Our neutral view will be invalidated if the bears sink the price below $0.071355.

XMR/USD

The bulls have been trying to hang on to the 20-day EMA for the past two days. However, they haven’t been able to push the price higher. Monero has a strong support between the 20-day EMA and the 50-day SMA.

The XMR/USD pair will weaken if it breaks down and sustains below the trendline of the triangle. In such a case, the lower targets of $96.390 and $87.382 will come into play before a retest of the lows. Hence, we recommend traders hold their existing long positions with the stop loss at $100.

A strong bounce from the current levels can carry the virtual currency to $128.650 and thereafter to $142.710.

DASH/USD

Dash is currently range bound, with both moving averages flat and the RSI close to neutral territory. This increases the possibility of the virtual currency being stuck within the boundaries of $130.024–$224.830. The longer the time spent in the range, the stronger will be the eventual breakout from it.

Currently, the DASH/USD pair is taking support at the 50-day SMA. We anticipate a strong defense of $160 by the bulls because if this support breaks, the virtual currency will retest the lows.

On the upside, a break out of $224.830 will signal a probable 1-2-3 bottom. Though there is a stiff resistance close to $278, we shall attempt a buy if the price sustains above the overhead resistance for three days. Until then, we suggest traders remain on the sidelines.

The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.

Crypto mining malware has risen by 86% in Q2, with 2.5 million new malware coin miner samples, according to a McAfee Labs report.

The number of crypto mining malware attacks used by hackers has continued rising, with total samples growing by 86% in the second quarter of 2018, according to the latest threat report by cybersecurity firm McAfee Labs released September 25.

In the report, cybersecurity experts stated more that than 2.5 million new malware coin miner samples were found in Q2. In comparison, the number of crypto malware attacks in Q1 amounted to around 2.9 million, which is a 629 percent rise from around the 400,000 samples found in Q4 2017.

The report concluded that coin miner malware “remains very active,” following the general surge of crypto mining malware with “new coin miner threats [that] have jumped massively in 2018.”

Coin miner threats statistics. Source: McAfee Labs, 2018

Specifically, the report stresses the fact that cybercriminals have found “new angles” of illegal coin mining to raise profits, which is coming on the heels of a surge in popularity of crypto and blockchain technology. McAfee Labs also cited the recent threat report named “Don’t Join Blockchain Revolution Without Ensuring Security” to warn users of the emerging technologies about the associated risks.

Christiaan Beek, Lead Scientist and Senior Principal Engineer with McAfee Advanced Threat Research, commented to Business Wire that apart from PCs, low-CPU devices have become a new source of “profitable revenue stream” for cybercriminals.

Due to their “propensity for weak passwords,” as well as the ability to take over “tremendous volume” of devices such as Wi-Fi routers, video cameras, and other Internet-of-Things (IoT) appliances, they represent a “very attractive platform” for illicit crypto mining activities.

Last week, Cointelegraph reported that official government websites have become the main target for cryptojacking in India, including websites of municipal administrations.

In late August, Firefox announced that they will start blocking cryptojacking malware in future versions of their web browser, including crypto mining scripts that “silently mine cryptocurrencies” on users’ devices.

Porsche has announced it will invest $176 million over the next five years in new technologies, including blockchain and AI startups.

German automobile manufacturer Porsche AG will increase in its investments in startups — with a focus on blockchain and artificial intelligence (AI) — by around $176 million over the next five years, according to a company press release published September 25.

The increase in Porsche’s total investment in venture capital activities for next five years was prompted by the need to “gain access to trends, new technologies and business models,” the press release notes.

The investments will be aimed at “early and growth” stage businesses that relate to “customer experience, mobility and digital lifestyle,” as well as future technologies including blockchain, AI, and virtual and augmented reality.

Lutz Meschke, deputy chairman and member of the executive board for finance and IT at Porsche AG, noted that the company must “fundamentally change [their] business model” in order to see success in the future, adding:

“To date, innovation has been driven to a large degree by technology and with strong links to our current core competencies [...] It is essential that we build a strong ecosystem with competent partners.”

Earlier this year, Porsche had begun exploring the use of blockchain applications in its vehicles in partnership with the the Berlin-based startup XAIN. In the Sept. 25 press release, Porsche notes that Porsche Ventures is already a minority shareholder in a firm that uses blockchain to manage vintage vehicles’ history.

In March, Daimler AG, a car manufacturing giant famous for its Mercedes-Benz and Smart brands, revealed it was testing its own blockchain-based digital currency, the MobiCoin, that would rewards drivers for environmentally-friendly driving habits.

Also in March, another German car manufacturer, Audi, had announced that it had been testing blockchain technology for its physical and financial distribution processing.

Margin trading involves borrowing money to perform trades of a higher value – and taking a position on whether the value of a cryptocurrency will fall or rise.

Is margin trading available on all crypto exchanges?

Most of them – but not all.

As we mentioned earlier, the likes of OKEx and Kraken have rolled out this feature, but some of the bigger crypto exchanges such as Binance do not offer margin trading at present. Huobi activated margin trading back at the start of 2018, and this service is also available through HitBTC, Bitfinex and Bithumb.

Cointelegraph recently reported that Bakkt, the upcoming regulated ecosystem for crypto assets around the world, will also not support margin trading – and says its platform is meant to ensure that “the buying and selling of Bitcoin is fully collateralized or pre-funded.”

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Any tips for getting the best results?

First and foremost, remember that it’s your money at stake.

Generally, margin trading should be considered as a short-term investment – not least because of the wild volatility that often grips the crypto market.

You should never invest more than you can afford to lose, and it’s always worth setting limits that will automatically pull you out of an investment whenever it falls below a certain level. Similarly, setting profit targets also ensures that you exit a trade at the optimal time.

Once again, this is an advanced activity that should not be entered into lightly.

You should always factor in any costs that may arise as part of your margin trading – such as platform fees and interest rates to lenders – and it’s always worth gaining experience and confidence through trading with your own money first.

Are margin trades regulated?

They are regulated with uniformity on conventional stock exchanges – but the rules can vary between crypto platforms.

This may all be about to change. For example, as reported by Cointelegraph, Japan’s Virtual Currency Exchange Association (JVCEA) wants to limit the amount that margin traders can borrow – enforcing a cap that stands at four times the amount of their investment.

Explaining their plan to a Chinese media outlet, the JVCEA said: “It aims to prevent investors from suffering a lot of losses due to sudden price fluctuation of the virtual currency.”

Regulatory compliance has become something of a priority after the Coincheck exchange was a victim of a massive hack back in January, with 523 million NEM coins worth $534 million being lost back in January.

Other major exchanges, such as OKEx, already cap leveraging to three times the amount of capital that an investor has. Kraken offers up to five times leverage, but only to users who have verified their identity. The number of pairings it offers is currently restricted, and pairings involving euros are not available in some US states.

Coinsbit, a new trading platform, is also planning to introduce margin trading by the end of the year — along with crypto loans in U.S. dollars. The company is hoping to stand out from the hundreds of other exchanges by tackling the security and liquidity concerns that traders face, as well as high transaction fees. More than 95 percent of all currency is stored in cold wallets. Web Application Firewall (WAF) — a protective screen of a web application — detects and blocks hacker attacks. Coinsbit is currently working to get listed on CoinMarketCap.

What are the most common risks with margin trading?

The fact that many cryptocurrencies are so volatile means margin trading is only recommended if you’ve done your homework and have experience.

Losing your own money when trading in crypto can be unpleasant enough without the borrowed funds of other investors coming into the equation.

The main risk to remember is that you have the potential to lose your whole initial investment through margin trading, especially if your focus has been on altcoins with a low volume and high volatility.

If one of your trades starts to lose money, your margin can be “called in.” Let’s say you are margin trading with a ratio of 2:1, where every dollar you’re investing is matched by someone else. Here, your position would be liquidated when the value falls by about 50 percent in order to preserve the lender’s funds.

It is possible to inject further cash to prevent this from happening, but this can cause substantial losses to pile up quickly. Sometimes, it’s about knowing when to cut your losses.

I’ve heard of long and short positions. What are they?

These two terms relate to whether a trader thinks a cryptocurrency is going to rise or fall in value.

“Going long” generally means that you believe the Bitcoin or Ethereum you’ve just purchased will rise in value over time – and through leveraging, this can amplify your gains (and amplify any losses you make.)

On the flipside, you might believe that one of these cryptocurrencies is about to experience a fall in value – and this is where a short position comes in handy. As an example, let’s imagine you think that Bitcoin, trading at $7,000, is going to drop in price. Here, you sell your Bitcoin for $7,000 – and then buy it back when it tumbles to $6,400. Once this transaction has been completed, this represents a gain of $600.

So… what is margin trading?

This is where you make trades using money borrowed from someone else – or a brokerage.

While the potential rewards can be high, there are some sizeable risks that investors need to contend with too.

Let’s start with an example using dollars. Imagine you have $50. Margin trading is where you leverage $500 based on this sum of money in your pocket.

As you’d imagine, the principle in the cryptocurrency world is quite similar. Let’s say you want to buy Ethereum worth $1,000, but you’ve only got $500 available. Through margin trading, you’d be able to borrow an extra $500 – getting you up to the magic total.

If your $1,000 in Ethereum grew in value, to say $1,500, you’d be able to liquidate it and return the $500 to the lender, leaving you with a gross profit of $500.

Of course, the value of cryptocurrencies can go dramatically down as well as up. In a scenario where the price of Ethereum went down by 50 percent, your lender would be able to get their $500 first before you can access funds, potentially leaving you with nothing.

Ukraine’s state bank is considering releasing a state-owned digital currency based on blockchain to increase the rate of non-cash payments.

The National Bank of Ukraine (NBU) is considering launching a state-owned digital currency based on blockchain, local news outlet Vesti Ukraine reported Tuesday, September 25.

NBU says that the blockchain-based hryvnia, or e-hryvnia, has to be centralized and remain under government control, Vesti Ukraine writes. The state-backed coin is expected to increase the rate of non-cash payments, along with reducing their cost.

Ukraine has brought up the "digital coin" idea several times already within the framework of project called the “Cashless Economy”. For instance, NBU had revealed plans in January to launch an e-hryvnia that would not be based on blockchain technology.

According to bank officials, this version of a Ukrainian state-backed coin would have to be tied to the national fiat currency at a rate of 1:1. According to the NBU, this would prevent the growth of the inflation rate. However, issuing an e-hryvnia based on blockchain still remains in the planning stages, with the bank noting:

“The decision on the appropriateness of the introduction of electronic hryvnia in full will be taken only after a detailed analysis.”

According to Vesti Ukraine, advisor to the head of Ukrainian Bank Association Alexey Kustch thinks that digital currency like e-hryvnia cannot be compared to cryptocurrencies, since crypto is anonymous and decentralized by definition, unlike a state-backed coin.

Kutsch also noted that a state-backed digital currency based on blockchain is “quite a promising direction,” adding:

“On the one hand, it will protect human rights in terms of property, and on the other —  significantly reduce the costs and time of transactions, as well as accelerate the turnover of money in the country.”

Russia has also discussed the possibility of of launching state-owned cryptocurrency, the CryptoRuble, in January of this year.

Recently, Ukraine’s parliament had proposed a tax bill for crypto assets, suggesting a five percent tax on individuals and legal entities operating with crypto, and an 18 percent tax for crypto-related profits.

And in July, the Ukrainian Cabinet of Ministers on the Financial Stability Board held a meeting to determine the legal status of cryptocurrencies, supporting the concept of crypto regulation.

Crypto markets see another flush of green, Ripple and Bitcoin Cash grow significantly, and Bitcoin trades above $6,500.

Wednesday, September 26: following a slight sell-off, crypto markets are seeing another flush of green with virtually all of the top 100 cryptocurrencies by market cap in the green. Gains among the top 20 coins by market cap are reaching over 20 percent over the past 24 hours to press time.

Market visualization from Coin360

Bitcoin (BTC) is slightly up and trading above $6,500 price point today. The leading cryptocurrency increased by about 2 percent over a 24 hour period, and trades at around $6,524 at press time, seeing around 3 percent growth over the week. Yesterday, Bitcoin’s price had dropped to as low as $6,366, following a sharp surge to above $6,700 on September 21.

Bitcoin 7-day price chart. Source: Cointelegraph Bitcoin Price Index

The current second cryptocurrency by market cap, Ethereum (ETH), has seen more gains today, up almost 5 percent over a 24 hour period and trading at about $220 as of press time. Yesterday, the altcoin had plunged to as low as $206, and the current price point is still 20 percent down over the past 30 days.

Ethereum 7-day price chart. Source: Cointelegraph Ethereum Price Index

Ripple (XRP), which is now the third top cryptocurrency by market cap, has seen one of the biggest gains among the top 20 coins by market cap, also having managed to briefly overtake Ethereum in terms of market capitalization for the second time in a week. The cryptocurrency is up 16.5 percent over a 24 hour period and trading at $0.53, with its market cap amounting to about $21 billion — roughly one billion less than the current market cap of Ethereum.

Earlier today, financial services company SBI Holdings announced it had acquired a payments license from Japanese regulators to operate a blockchain-based smartphone application running on Ripple.

Ripple 7-day price chart. Source: Cointelegraph Ripple Price Index

Total market capitalization is currently reflecting the crypto market’s rebound, amounting to about $217 billion at press time. However, the current capitalization point is still somewhat down from the recent highs of $228 billion. The daily trade volume of the market now constitutes to more than $15.8 billion, with the total number of trading cryptocurrencies equal to 2,003.

7-day total market capitalization chart. Source: CoinMarketCap

Bitcoin Cash (BCH) has seen the biggest gains today in terms of the top 20 coins by market cap. The digital currency is trading at about $517 at press time, seeing 19 percent growth over the past 24 hours and weekly gains amounting to around 20 percent.

Yesterday, the Switzerland-based Bank for International Settlements (BIS) released a report pointing out at a strong correlation between cryptocurrency prices and news on global regulatory actions in the industry.

Recently, French parliament’s lower house initiated a debate about the regulatory framework for Initial Coin Offerings (ICOs), aiming to adopt a sustainable development of “liberated companies that are better funded, more innovative and fairer.”

The new wave of green on crypto markets is also coming amidst the recent news of the the upcoming physical Bitcoin futures set to be launched by Intercontinental Exchange (ICE), which operates the New York Stock Exchange (NYSE). The first offerings of ICE’s Bakkt cryptocurrency platform will reportedly take the form of physical BTC futures — aiming to create a “regulated ecosystem” for institutional investors — with the first contracts to be available in at least three fiat currencies, such as the U.S. dollar, British pound sterling and euro.

Japanese regulators have approved SBI Ripple Asia’s license to operate as an electronic payment service, the company has confirmed.

Financial services company SBI Holdings announced it had secured a license from Japanese regulators for its joint money transfer operation with Ripple in a statement Wednesday, September 26.

SBI Ripple Asia, a venture under development with Ripple since 2017, now has permission to handle electronic payments as an “Electronic Settlement Agency Service Provider” under legislation rolled out in March that year.

According to SBI’s statement, its smartphone app MoneyTap — which will allow users to send payments using a platform based on distributed ledger technology (DLT) — is now closer to a public launch. The statement adds:

“SBI Ripple Asia is planning to register the electronic settlement and other settlement enterprises in order to properly implement electronic payments and other settlement aspects related to MoneyTap in the future.”

In June, SBI Holdings launched its in-house exchange VCTRADE, with Ripple (XRP) as the first asset to receive support, and Bitcoin (BTC) coming later. Earlier this week, SBI Holdings reported they would be trialing its blockchain-based “S coin” for making retail purchases with users’ smartphones.

Japan continues to sharpen its regulatory oversight of the crypto exchange sector in particular, with the country’s Financial Services Agency (FSA) confirming new entrants to the market would undergo increasingly stringent checks before being able to obtain the necessary license.

China’s crypto mining giant Bitmain has filed a draft application for listing shares on the Hong Kong Stock Exchange.

Chinese crypto mining giant Bitmain has filed a draft application for listing the company’s shares on the Hong Kong Stock Exchange (HKEX), according to an official application document published Wednesday, September 26.

Bitmain has provided a draft application proof that is required for public listing on the HKEX, aiming “solely” to disclose information to the public in Hong Kong, and “not for any other purposes.” By providing a detailed business overview, Bitmain has stressed that the application proof is represented in a draft form, as it is a subject to future elaborations due to its incomplete status.

In the application’s introduction, Bitmain has described the company as “China’s second largest and among the world’s top ten fabless IC design companies in terms of revenues in 2017,” providing a short description of the equipment supplied by the firm. The company emphasized that Bitmain is “one of the few companies” that offer mining tools for various cryptocurrencies, such as Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH), Ethereum (ETH), Dash (DASH), and Zcash (ZEC).

Bitmain further specified the specifics of the firm’s business development, including their recent expansion with 11 new mining farms in the Sichuan Province, Xinjiang, and Inner Mongolia, as well as their operation of both the world’s largest and second largest Bitcoin mining pools in terms of CPU — BTC.com and Antpool.

The company also highlighted the dynamics of its business in terms of financial growth, citing an exponential growth of revenue from $137.3 million in 2015 to about $2.5 billion in 2017. The company’s revenue has grown by more than 936 percent, from $274.5 million in the first six months of 2017 to around $2.8 billion in the first six months of this year through June 30, 2018.

Founded in 2013, crypto mining giant Bitmain was reported to hold from 70 to 80 percent of the market for Bitcoin miners and ASIC chips in late February 2018. The company launched operations in Canada in 2016, and has reportedly considered expanding its business further outside of China, following a national ban of cryptocurrency exchanges and the increasing potential for energy regulations for mining crypto in China.

Bitmain’s plans to hold an initial private offering (IPO) were first unveiled in June 2018, with Bitmain CEO Jihan Wu claiming that the company was “open” to launching an IPO with U.S. dollar denominated shares in a jurisdiction like Hong Kong. Following the reports, anonymous sources close to Bitmain confirmed in late July that the upcoming IPO was expected to be filed “very soon” in an overseas market.

In mid-August, Cointelegraph reported on potentially misleading information about the investors of Bitmain’s rumored upcoming IPO, with a number of firms denying investments in a pre-IPO while reportedly being listed as investors.

Both SoftBank and DST Global, which were reported as backing Bitmain’s IPO, have denied involvement in the deal. And in early September, Singapore-based investment company Temasek also officially denied investing in Bitmain, following reports of being one of the key investors in the pre-IPO funding round.

New research into publicly available records shows that U.S. government agencies have tripled their investment in blockchain intelligence firms this year.

New research into publicly available records shows that U.S. government agencies have tripled their investment in blockchain intelligence firms this year, according to a Diar report published September 24.

As Diar outlines, blockchain analysis can be used by financial institutions or banks to track compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.

The analysis can equally be used as a “digital trail” that provides law enforcement agencies with actionable intelligence, allowing them to potentially counter illicit activity that would otherwise remain concealed behind pseudonymous crypto wallet addresses.

U.S. government agencies reportedly account for $5.7 million out a collective total of $28.8 million that has been invested in blockchain analysis firms to date, Diar states.

Funding from U.S government. agencies in blockchain analysis firms. Source: Diar.co

According to Diar, the vast majority of government deals have been contracted to New York- based blockchain intelligence firm Chainalysis, which has signed deals with government agencies totalling $5.3 million (out of a total of $17.6 million from all its investors).

Chainalysis’ largest contract was reportedly signed with the Internal Revenue Service (IRS) in August of this year for around $1.6 million. According to Diar’s report, Chainalysis is followed by rival firms Elliptic and CipherTrace in terms of overall investment.

The IRS reportedly accounts for the highest share of total government expenditure on blockchain intelligence, followed by the U.S. Immigration and Customs Enforcement (ICE), as Diar’s consolidated data shows:

U.S government agencies’ expenditure on contracts with blockchain analysis firms. Source: Diar.co

While Diar notes that the IRS, ICE, and Federal Bureau of Investigations (FBI) have a combined 85 percentage of the total expenditure, several other government agencies have also sought smaller contracts with blockchain intelligence firms, including securities and commodities regulators.

Diar’s Sept. 24 report also included a section devoted to Initial Coin Offerings (ICO), which have reportedly raised double in investments in 2018 ($12 billion) as compared with last year. However, Diar’s collected statistics have also shown that 70 percent of tokens “are now valued at less than what was raised during their ICO.” The report notes that 402 out of 562 projects that collectively raised over $8.2 billion are now worth $2.2 billion — a hefty $6 billion market capitalization loss.

As a recent Cointelegraph analysis piece has outlined, the role of third-party blockchain intelligence firms was brought into the spotlight by the recent high-profile indictment from the U.S. Department of Justice (DoJ) against Russian officials who allegedly used crypto to fuel efforts to interfere in the 2016 U.S. presidential elections.

One of the most “heavily interviewed” experts in the wake of the indictment news was Jonathan Levin, co-founder and COO of Chainalysis, who declined to comment on the firm’s official involvement in the case.

The U.S. SEC is now seeking sanctions against the individuals behind the allegedly fraudulent PlexCoin ICO.

The U.S. Securities and Exchange Commission (SEC) is seeking sanctions against the individuals behind the allegedly fraudulent Initial Coin Offering (ICO) known as PlexCoin, Finance Feeds reports September 26.

The SEC has been involved in ongoing court proceedings against the owners of the associated firm PlexCorps — Dominic Lacroix and Sabrina Paradis-Royer — at the New York Eastern District Court since December 2017. The SEC’s initial complaint had charged the pair with violating securities law in respect to PlexCorps’ PlexCoin ICO in August 2017.

The complaint had accused Lacroix — whom it called “a recidivist securities law violator in Canada” — and his partner of “misappropriating” investor funds that were “illegally” raised in a misleading, deceptive, and unregistered securities offering. The PlexCoin ICO is alleged to have raised $15 million from “thousands of investors,” reportedly promising investors a 1,354 percent return in just 29 days.

In the ensuing months, the regulator has twice sued Lacroix for securities fraud and issued two emergency asset freeze orders against him.

According to the SEC, the duo have continued to ignore a succession of Court orders concerning the “discovery, accounting [...] and repatriation of assets.” The regulator therefore chose to file a motion to compel and a motion for discovery sanctions against the duo yesterday, Sept. 25.

The ignored injunctions are said to have included a court order from December 2017 that enjoined the defendants to produce — within three business days — “a sworn verified written accounting” reflecting the amounts and locations of investor assets raised from the PlexCoin ICO, and to “immediately” transfer to the registry of the Court all assets “derived from PlexCoin or PlexCoin Tokens or PlexCorps.”

Despite an extension of the deadline and further injunctions to provide the SEC with “a full list of bank and brokerage accounts [...] and any blockchain addresses through which investor funds were solicited or received,” Lacroix and Paradis-Royer have reportedly failed to comply with any of these orders. They are further reported to have ignored a court order from this August, which demanded further accounting documents pertaining to investor funds as well as the defendants’ assets.

The SEC has this week argued that the defendants demonstrate no intention of “participating meaningfully” in the ongoing litigation, and could potentially employ a deferral strategy “indefinitely, including potentially after the entry of a preliminary injunction.” The SEC has reportedly noted that such a persistent failure to comply with court demands could further facilitate the pair’s potential dissipation of investor assets.

In a recent high-profile development for the crypto regulatory landscape in the U.S., a New York federal judge has ruled this month that securities laws are applicable for dealing with crypto fraud allegations.

Circle is introducing a stablecoin dubbed the “USD Coin,” with a consortium called Centre serving as the platform.

Circle Internet Financial Ltd. is launching a USD-backed digital token dubbed the “USD Coin,” Circle’s blog reports Wednesday, September 26.

A consortium called Centre — which includes Bitmain Technologies Ltd. among its members — will act as a platform for deposits and fiat conversions for the stablecoin. Bloomberg notes that although Centre is a “wholly owned subsidiary of Circle,” there are plans in plan to turn it into an independent organization.

The USD Coin will reportedly be available on Circle’s Poloniex exchange, as well as Huobi, OKCoin, KuCoin, and digital wallet and exchange Coinbase. As per Circle’s release, over 20 companies are about to announce support for the USDC, while others might add trading through the open ERC-20 standard.

Centre will act as a regulator for USDC issuers, ensuring that they possess state licenses to handle electronic money, meet the anti-money-laundering (AML) standards, and have banking partners to hold their dollar reserves. Furthermore, Centre reserves the right to allow certified public auditors to monthly review partners’ USDC reserves, Circle notes.

Circle emphasizes that USDC is the first of several stablecoins Centre expects to present. The company believes fiat tokens will be able to “eliminate artificial economic borders and enabl[e] a more efficient and inclusive global marketplace that connects every person on the planet.”

Circle CEO Jeremy Allaire told Bloomberg that USDC will be “a huge difference” from Tether — the most well-known and reportedly controversial stablecoin:

“Market infrastructure like stablecoins will become the base layer that supports every financial application. It has to be legitimate, trustworthy, built on open standards. We are solving a lot of these fundamental problems that exist. That’s a huge difference from something like Tether, and we think the market will very quickly gravitate to that."

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According to the World Bank, there are 1.7 billion people globally who still don’t have a bank account.

Nebeus, the London-based crypto platform, has launched a 1.1 million pound ($1.45 million) crowdfunding campaign as they set out their ambitious goal of bringing financial services to people around the world. According to the World Bank, there are 1.7 billion adults globally who remain unbanked, yet two-thirds of them own a mobile phone that they could use for online banking. The Nebeus’ campaign went live on Sept. 24, 2018 and has already attracted more than 400,000 pounds ($527,490).

The goals of the campaign

Backed by industry expert Brett King, the Nebeus campaign will last until October 23, 2018. Currently operating in 45 countries, they now plan for expansion across Europe, Asia and South America. The company wants to make banking simple for people and encourages a wider use of cryptocurrency in everyday spending, offering user-friendly Bitcoin wallets and its recently launched Exo card. The new prepaid card allows users to seamlessly convert crypto into fiat, making transactions convenient online, offline and even at ATMs.

“We want to create an ecosystem where those who add value are rewarded, and those

who consume services and products can do so in a competitive and secure

environment, built on blockchain technology. Our current campaign will bring us a step

closer to achieving this,” Konstantin Zaripov, co-founder and CEO of Nebeus, said.

How the platform works

Nebeus is a new crypto bank which facilitates crypto-collateral Bitcoin loans globally. The company says it is working on “bridging the gap between crypto and fiat finance through the use of blockchain technology.” According to the company, 30,000 users of the Nebeus platform have already created active blockchain-based wallets.

The fintech startup was founded in 2014, and the peer-to-peer (p2p) exchange platform was launched at the end of 2017. Nebeus has already enabled the transaction of 34 million euro ($39.9 million) and facilitated 1.9 million pounds ($2.23 million) in p2p Bitcoin loans. Their trading platform allows users to purchase and sell Bitcoin and Ethereum with instant deposits into their accounts.

Nebeus’s open API allows third parties to develop value-added products and services on top of the Nebeus platform or incorporate Nebeus’s services into their existing ecosystems.

The Nebeus card, launched in the summer of 2018, allows for converting cryptocurrency into fiat and also has some additional features. For example, all the users’ cryptocurrencies can be stored, easily accessed and managed in a Crypto Basket. Moreover, the Nebeus card functions as a regular debit card. It is accepted in over 40 million locations and can be used in stores, for online payments or for ATM withdrawals. The card can be issued to consumers worldwide.

The expansion to unbanked regions

In June 2018, Nebeus announced it was entering the African market through local telecommunications and mobile money. The company said that cryptocurrency users in Kenya, Uganda, Tanzania, Rwanda, South Africa, Nigeria and Ghana have received full access to the startup’s “crypto bank.” The company expects to enable over 400 million people with crypto services through help of local partners that already have an established network in the region.

Some of the latest research from the World Bank proves that Nebeus’s targeting of mobile money is justified. The organization’s analytics came to the conclusion that “in Sub-Saharan Africa, mobile money drove financial inclusion.” While the share of adults with an account with a financial institution remained flat in the region, the share with a mobile money account has almost doubled since 2014. Moreover, mobile money accounts have spread from East Africa to West Africa and beyond.

However, there are still a lot of unbanked adults in other continents too. According to the World Bank, account ownership in Europe and Central Asia was 65 percent in 2017 (58 percent of adults in 2014) and 71 percent in East Asia and the Pacific.

Ethereum briefly lost its place as the largest altcoin asset by market cap to Ripple for the second time in a week.

Ripple (XRP) has briefly surpassed the market cap of Ethereum (ETH) for the second time in a week Wednesday, September 26, once again temporarily becoming the second largest cryptocurrency by market cap.

Data from CoinMarketCap shows that XRP is now again ranked third with gains of 22 percent over a 24 hour period, with ETH in the second highest spot for market cap with gains around 3 percent by press time.

XRP last outperformed ETH on September 21, only to lose its number two spot shortly afterwards as both assets saw price corrections following sudden upticks.

On social media, cryptocurrency traders and commentators reacted buoyantly to the fresh reshifting in the crypto top ten.

ETH currently has a market cap of around $22.1 billion at press time, with XRP showing around $200,000 less with a market cap of $21.9 billion.

Ripple had hinted its xRapid payment system would shortly go live this month, an event which appeared to precipitate XRP’s rise as xRapid would feature the token as an integral part of cross-border funds transfers. U.S. bank PNC also announced last week that it would begin using RippleNet to process international payments for its clients.

At the same time, media sources appear unclear about the company’s prospects, with the Wall Street Journal this week claiming Ripple co-founder Jed McCaleb had “dramatically” stepped up sales of his personal stash of XRP in recent weeks.

Supporters hit back at the claims, while McCaleb responded that he was still abiding by the terms of token sales he had agreed with Ripple in 2016.

France’s stock market regulator has announced it is blacklisting 21 new investment websites, including multiple crypto-related sites.

French stock market regulator, the Autorite des Marches Financiers (AMF), announced it is blacklisting 21 new investment websites, including multiple crypto-related sites, September 26.

The AMF characterizes the new additions as “unauthorized websites” that offer “atypical investments,” and directs users to its existing blacklist, which it notes is “not comprehensive.”

In March, the AMF had added 15 websites — including those related to crypto and crypto-assets — to its blacklist, reminding consumers that “no advertising materials should make you overlook the fact that high returns always involve high risk.”

Cointelegraph has this month reported on a similar move from Belgian watchdog, the Financial Services and Markets Authority (FSMA), which added 28 new sites to its crypto-specific fraud blacklist and reiterated its warnings to consumers about fraudulent actors in the space.

France’s AMF has just this month received new legal powers to grant licenses to companies that run Initial Coin Offerings (ICO). The country’s Finance Minister, Bruno Le Maire, said he hopes that the legal framework for ICOs in France will “attract investors from all over the world.”

Under the new rules, prior to any token issuances, a company must apply to the AMF for a license and provide the agency with detailed information pertaining to the offer and issuer. The measures are designed to provide additional guarantees for ICOs, which the AMF had previously considered to be rife with “risks” for investors.

Red Belly Blockchain reaches 30,000 transactions per second while tested on Amazon Cloud, according to an Australian science agency report.

A blockchain system developed by Australia’s national science agency (CSIRO) and Sydney University claims to have set a benchmark of 30,000 transactions per second during a test on Amazon Cloud, according to CSIRO’s Tuesday, September 25 press release.

The technology arm of CSIRO, Data61, and the Concurrent Systems Research Group at the University of Sydney created Red Belly Blockchain as a “graduate” from CSIRO’s Pre-accelerator program ON prime.

CSIRO and the Concurrent Systems Research Group announced the first outcome of its experiment held on Amazon Web Services (AWS) cloud infrastructure. Red Belly Blockchain was tested on 1,000 machines in 18 regions, including North and South Americas, Australia, and Europe.

As per the CSIRO report, Red Belly Blockchain was reportedly able to operate 30,000 transactions per second from different locations, showing an average transaction delay of three seconds.

Bitcoin (BTC) infrastructure normally scales up to eight transactions per second, according to Blockchain’s statistics for September. Ethereum (ETH) blockchain capability is up to 15 transactions per second; however, its creator Vitalik Buterin plans to scale it up to 500 using ZK-SNARK to mass-validate transactions.

According to a report released by CSIRO back in July, Red Belly Blockchain uses byzantine consensus — an algorithm that completes transactions without proof-of-work (PoW) and thus without an increase in energy consumption.

Dr Vincent Gramoli, senior researcher at CSIRO and head of the research group at the University of Sydney, noted that the current problems with “real-world applications of blockchain” include “issues with energy consumption and complexities induced by the proof of work.”

According to the CSIRO release, this is not the first time that Red Belly Blockchain has been tested on Amazon Cloud. During experiments between July 2017 and May 2018, one test showed 660,000 transactions per second on 300 machines. However, all of them were in a single Availability Zone.

Australia’s securities exchange, which has been working to implement blockchain as of December 2017 to replace its current system for processing equity transactions, said in September it would delay the transition for six months.

More recently, Australian real estate firm Vicinity announced plans this week to trial a blockchain solution for its energy network in partnership with energy tech company Power Ledger.

Police in New Zealand have warned consumers after a fraudulent cryptocurrency company stole more than $200,000 from an investor.

New Zealand police have warned the public about online scams after an investor lost $320,000 NZD ($213,000 USD) to crypto fraudsters, the Canterbury police confirmed Wednesday, September 26.

The unnamed investor, who made multiple investments in an online cryptocurrency scheme which turned out to be fraudulent, was attracted by its “extremely good returns,” a police report from the town of Canterbury explains.

According to the report, which does not mention the kind of operation involved, those returns  in the “investments in cryptocurrencies, such as bitcoin [...] soon began to decline.” When investments stopped due to the lack of returns, this prompted the scammer to contact the investor personally, leading the investor to put in more funds through the website.

“Members of the public should seek advice before making any online investments they are unsure of,” Senior Sergeant Paul Reeves commented, adding:

“Scammers are extremely persistent and can seem very credible, as they are highly versed in their trade.”

The police report ends with a link to more information about cryptocurrency security.

Regulators worldwide continue to grapple with concerted efforts by malicious parties to manipulate entry-level investors in the still-nascent cryptocurrency industry. Cointelegraph recently reported on a spate of identity thefts in the UK by fraudulent companies masquerading as licensed cryptocurrency-related entities.

Last week, Tesla and SpaceX CEO Elon Musk also reached out to Jackson Palmer, the founder of Dogecoin (DOGE), for help in stopping cryptocurrency scammers on Twitter.

Tech giant Dell says it aims to remain a leader in the Indian server market by introducing blockchain products.

Tech giant Dell EMC Technologies plans to remain a leader in the Indian server market by introducing products that have blockchain capabilities, local news outlet Economic Times India reports September 26.

Dell has identified blockchain, artificial intelligence (AI), data analytics, and cloud-compliance as key features that the firm will push forward with in order to retain its edge. According to the Economic Times India, Dell had the highest overall market share of the Indian server market in Q1 2018 at 28.3 percent, up from 19.4 percent in the previous quarter.

Manish Gupta, senior director and general manager at Infrastructure Solutions Group, Dell EMC India, is quoted by the Economic Times India as saying that:

“The clients that we work with are looking to tap these technologies, which is why we are bringing in servers that allows them to optimise on traditional workloads as well as invest into new age workloads such as cloud, artificial intelligence, analytics and blockchain.”

Dell’s servers and networking business reportedly drew a revenue of $5.1 billion in Q2 2018, a 34 percent increase from the same quarter the previous year.

Gupta told the Economic Times India that demand is particularly strong from “IT-enabled services, banking, financial services and insurance (BFSI) sector and government.” He added that interest in blockchain has been piqued in the country’s government in particular, alongside the BFSI sector.

As reported earlier this summer, the Indian state of Telangana has announced it would be signing several memoranda of understanding (MoUs) with blockchain firms as to eventually implement the technology across government services.

While receptive to blockchain, the country’s highest judiciary is currently in the midst of reviewing the Reserve Bank of India (RBI)’s contentious ban on banks’ dealings with crypto-related entities. Just yesterday, India’s Supreme Court listened to the final round of petitions on the ban, which has officially been in force since July 6.

The biggest Bitcoin block to date has been mined! But although it is the biggest block, it had about 1,400 fewer transactions than the average block on the Bitcoin Network.

From soft and hard forks to protocol upgrades, to the implementation of Segwit and to the future outlook of the Lightning Network (LN), the Bitcoin network has come a long way since its inception in January 2009. As of Sept. 18, 2018, the average block size on the Bitcoin network is .8MB and the average number of transactions per block is 1609 — so a few eyebrows were raised when a block over 2MB was added to the blockchain on Sept. 5, 2018.

Bitcoin block 540107 came in at 2.26MB; in terms of megabytes, a block this big has never been added to the blockchain before. Although the bear market has been going on for nine months, block 540107 could be a sign that the Bitcoin network is progressing technologically. To understand why, let’s first have a look at the current state of the Bitcoin network.

Currently on the Bitcoin network, the average block size is 0.804MB and there are an average of 1609 transactions per block — that is why a block like 540107, which is 2.26MB big but only has 230 transactions included in it, is such an anomaly.

The biggest block to date

Block 540107 is the largest block on the Bitcoin network to date due in large part to Segwit, a soft fork in the Bitcoin network. This update in the code allowed transaction signature data to be stored in an extended block, a storage unit not necessarily attached to a ‘regular’ block.

An extended block holds the transaction signature data — which is normally packed into a regular block in a non-Segwit transaction — in a location separate from the block with the transaction data. When Segwit was activated on Aug. 24, 2017, it replaced the non-Segwit 1MB block size limit with a 4MB maximum block weight. This allowed more transaction data to be packed into a single block because transaction signature data is removed and stored in a separate location — i.e., extended blocks. Because of this, Segwit made it possible for blocks to be over 2MB in size. If a block was filled with only witness (signature) data, then a block could technically be 4MB in size. Therefore, Segwit paved the way for block 540107 to be the largest block to date in terms of size (2.26MB).

But although block 540107 was the largest to date in terms of megabytes, it only had 230 transactions included in it, which is about 86 percent (1379, to be exact) fewer transactions than the average block on the Bitcoin network

Why was the Biggest block so empty?

This isn’t the first time a big block had far fewer transactions than an average block on the Bitcoin network. Jan. 20, 2018, was the first time the Bitcoin network saw a block that was over 2MB, when block 505225 came in at 2.17MB, and similar to block 540107, the block had a relatively low number of transactions compared to an average block on the Bitcoin network. Block 505225 only contained 225 transactions — about 15 percent of the usual amount of transactions in a block.

Although the low number of transactions in such big blocks could seem unusual, an independent crypto-researcher that goes by AltcoinXP-Anthony believes that we should be less concerned about the number of transactions in a block and more concerned about if the weight of the block is close to or at capacity. Commenting on why the block only had 230 transactions, he told Cointelegraph:

“You would have to ask the miner that mined it — they make that decision. But my guess would be that that is how many [transactions] filled the block [weight] limit. number of transactions doesn't mean much. You can have one transaction which sends thousands of pieces of BTC dust (little amounts of BTC spread between many addresses) sent to a single address. The dust takes up more block real estate [...] more data being needed per transaction [...] So what I mean to say is that not all transactions [are equal], some have a larger weight/size due to the amount of inputs [or outputs] there are.”

With the Segwit soft-fork, a new addition to the technical parameter came called ‘weight.’ Before Segwit, 1MB of data on the Bitcoin network was technically equal to 4 million weight units — or in other words, the entire weight capacity of a block. But with Segwit, each byte only weighs one weight unit, which allows more data to be packed in a block and which is why we can have blocks that are larger than one and two megabytes.

Thus, one transaction can send thousands of ‘BTC dust’ — i.e., transactions on the Bitcoin network that can be consolidated, aka batched. Batching is when several transactions on the Bitcoin network are compressed into one transaction (input) with several outputs, instead of having separate transactions with unique inputs and outputs. Batching transactions reduce the amount of data that is required to deliver different transactions to different addresses; however, the more transactions that are batched together, the larger the byte size of the transaction.

Batching: One input, several outputs

Bitcoin researcher David A. Harding provides a great example of batching in his article,

“Let’s imagine one Bitcoin equals one dollar. Alice receives the bill for 10 BTC and starts a transaction by adding a 20 BTC input from her wallet. Then she adds two outputs: a 10 BTC output that goes to Bob and another 10 BTC output that returns the change to her own wallet.”

In this case, the total size of this transaction would be 226 bytes because the code required to execute one transaction on the Bitcoin network takes up 226 bytes of data. But the story example continues:

“But wait, Alice almost forgot to tip for the excellent service she received. With physical cash, Alice would make a second transaction by taking the $10 she received in change, trading it for some small denomination money, and leaving a 15 percent tip of $1.50 on the table, keeping the other $8.50 in change for herself.”  

But on the Bitcoin network, Alice would need to create a new transaction for the tip, and the size of this transaction would be 226 bytes too. For Alice to pay for her meal and leave a tip, her objective requires the Bitcoin network to add a total of 452 bytes to a block if it is done in two separate transactions.

However, there is a way to consolidate these separate transactions into one.

With physical cash, Alice could pay her original bill by handing the cashier $20 and telling him to deduct the tip before giving her back $8.50 in change  —  keeping the rest ($1.50, or 15 percent) as the tip. On the Bitcoin network, we can also consolidate the number of transactions that take place by adding an additional output to the original transaction. According to Harding, each additional output consumes 34 bytes. So when Alice batches a transaction to pay for her food (output #1) and tip (output #2), the Bitcoin network will require 260 bytes total for her to complete her objective — opposed to the 452 it requires if Alice proceeds in two separate transactions. Similar to Segwit, the idea behind batching is to free up block space so that more data — and hopefully transactions — can fit into a block.

More participants = More bytes

Although batching drastically reduces the amount of data required to make several transactions at once, each new output added to the batched transaction is going to require the Bitcoin network to consume more data to complete the transaction. Although this amount of data isn’t nearly as high as it would be if a user were making transactions with several different inputs and outputs, it can still add up.

Although there were only 230 transactions in the block, it is possible that a number of those transactions were batched, so that one input had a large number of outputs; this would require the Bitcoin network to consume a larger amount of bytes to make the transaction possible — depending on how many outputs were attached to each input. But regardless of the number of transactions that were included in block 540107, a block over 2MB is a good news.

Hope for the future

Although the cryptocurrency markets have been going through a rough patch for nearly nine months now, block 540107 could be proof that progress is being made in regard to solving Bitcoin’s scalability problem. For those who preach that Bitcoin is going to be the money of the future, such a development could usher in that future — one in which transactions would not take between seven or eight transactions per second to process. Major payment processors can handle tens of thousands of transactions per second, such as Visa, which can process 24,000 transactions per second. If we want to see Bitcoin be adopted and used as a payment method in society, the amount of transactions the network can handle is an issue that needs to be tackled.

Some are hopeful that the Lightning Network will play a significant role in solving the scalability problem, and although the Lightning Network does not need Segwit to exist, the implementation of Segwit prevents malleated transactions from occuring in Lightning channels. Although we may be a bit of a ways away from Lightning Network implementation, block 540107 seems to indicate that the Bitcoin network is moving in the direction it needs to move in for Lightning Network as well as other possible scaling solutions to come to fruition.

The chairman of the Kenyan DLT and AI task force has proposed that the government tokenize the economy in order to fight the “increasing” rate of corruption.

Kenyan Distributed Ledgers and Artificial Intelligence task force chairman Bitange Ndemo has said that the government should tokenize the economy, local news outlet The Star reported September 25.

The taskforce was established in March by the government of the Republic of Kenya in order to evaluate proposals on how to deploy blockchain technology in the public sector. The working group consists of local blockchain startups, experts, researchers, regulatory bodies, lawyers and other associated parties.

Speaking at an Information and Communication Technology Ministry (ICT) stakeholders meeting with the private sector, Ndemo reportedly asserted that the government should consider tokenization of the economy in order to deal with “increasing” rates of corruption and uncertainties. This move, according to Ndemo, would have the government print less hard currency. The chairman said:

“We must begin to tokenize the economy by giving incentives to young people to do things which they are paid through tokens that can be converted to fiat currency.”

In addition, Ndemo stated that the adoption of tokens could reduce unemployment levels, outlining the necessity of issuing a digital currency equivalent to a fiat currency. The ICT Principal Secretary Jerome Ochieng said that the government will develop relevant policies to process the recommendations proposed by the taskforce.

Notably, the Central Bank of Kenya (CBK) issued a circular to all banks in the country in April, warning them against dealing with cryptocurrencies or engaging in transactions with crypto-related entities. CBK Governor Patrick Njoroge cited crypto’s prevalence in illegal activities, its anonymous nature, and its lack of centralized control as the impetus for the ban.

In June, decentralized liquidity network Bancor launched a network of blockchain-based community currencies to fight poverty in Kenya. The project seeks to stimulate local and regional commerce and peer-to-peer activity by enabling Kenyan communities to create and manage their own digital tokens.

Monero devs have created a patch for a bug that could allow an attacker to burn consumers’ funds and trigger significant damage.

The developers of open-source cryptocurrency Monero (XMR) have patched a bug that could allow an attacker to “burn” the funds of an organization’s wallet while only losing network transaction fees, according to an announcement published September 25.

The bug was reportedly discovered after a community member described a hypothetical attack on the XMR subreddit. The bug could purportedly affect merchants and organizations in the XMR ecosystem, enabling an attacker to trigger significant damage. The blog post further describes how the bug would be exploited:

“An attacker first generates a random private transaction key. Thereafter, they modify the code to merely use this particular private transaction key, which ensures multiple transactions to the same public address (e.g. an exchange's hot wallet) are sent to the same stealth address. Subsequently, they send, say, a thousand transactions of 1 XMR to an exchange. Because the exchange's wallet does not warn for this particular abnormality (i.e. funds being received on the same stealth address), the exchange will, as usual, credit the attacker with 1000 XMR.”

While Monero notes that the attacker would not be able to directly accrue monetary gains with such an attack, “there are probably means to indirectly benefit.”

Following the attack, the hacker sells the XMR for Bitcoin (BTC) and then withdraws the BTC. As a result of the attack, the exchange is left with 999 unspendable or “burnt” outputs of 1 XMR.

Notably, the bug has not affected the protocol or the coin supply. XMR developers subsequently created and included a patch in the code, which was announced via XMR’s official Twitter account:

To any exchanges, services, merchants, and other organizations present in the Monero ecosystem, if you have not received or applied a patch yet, compiling v0.13.0.0-RC1 ensures the patch is included.

— Monero || #xmr (@monero) September 25, 2018

XMR, which claims to be a private and “untraceable” cryptocurrency, was the target of fraudulent activities in the crypto space previously. Earlier this month, the MEGA Chrome extension was compromised, which allowed cybercriminals to steal users’ XMR in addition to other sensitive information.

In June, a report published by security company Palo Alto Networks found that around 5 percent of all XMR in circulation at the time was mined maliciously. XMR reportedly has an “incredible monopoly” on the cryptocurrencies targeted by malware, with a total of $175 million mined maliciously.

XMR is currently the tenth largest digital currency, with a market capitalization of nearly $1.9 billion and a circulating supply of over 16 million, according to CoinMarketCap. At press time, XMR is trading at around $114, up 0.68 percent over the last 24 hours.

Experts and executives from crypto businesses in the U.S. met in Washington to inform regulators about the main regulatory obstacles facing the industry.

More than 45 representatives from major Wall Street firms and crypto companies took part in a meeting to discuss Initial Coin Offering (ICO) and cryptocurrency regulations in Washington D.C. September 25.

The “crypto roundtable,” hosted by Congressman Warren Davidson in the last legislative session week before elections, gave a chance for industry representatives to express their concerns regarding possible regulations of the crypto space. Namely, experts told lawmakers that there is a pronounced lack of regulatory clarity for ICOs and digital currencies.

Roundtable participants discussed “token taxonomy,” aiming to describe the existing uncertainty around the definition of ICO tokens, as well as the implied regulatory framework.

Experts suggested principles for regulatory compliance and consumer protection, aiming to outline major regulatory approaches that should be implemented in line with the evolving technology.

Addressing the first and main point of the discussion, Marvin Ammori, General counsel at Protocol Labs, stressed a whole “cascade of uncertainty,” associated with existing token classification.

Ammori cited the issues faced by the decentralized file storage project Filecoin (FIL), claiming that at the time the company was was launched in 2017, they thought that the Securities and Exchange Commission (SEC) would consider it a security.

Chia Network president Ryan Singer joined the discussion, pointing out the “Ethereum question” that was raised recently when the SEC stated that the major altcoin would be not regulated as a security, but rather as a commodity.

Singer agreed with Ammori, emphasizing that the main problem of the industry is the absence of clarity, as well as no basic definition of what is “decentralized enough,” or what is “functional enough.”

Hilary Kivitz, COO and General Counsel at Andreessen Horowitz Crypto, suggested that tokens operating within a fundraising phase should be considered securities. Kivitz also suggested a definition for general tokens, stressing that tokens’ incentive should “align the interests of all the participants” of the ICO network:

“Tokens [are] an asset that facilitate a shared incentive network, where every participant derives value from the growth of the network.”

Other participants argued that current regulations were not only vague, but outdated. Joshua Stein, CEO at crypto-security firm Harbor, stated that securities regulations “do not work” in regard to utility tokens in decentralized apps (DApps). Stein concluded that current securities laws are only appropriate for traditional securities, and “they are not good fit” for the ICO industry:

“Everytime I want to use decentralized Microsoft Word, or I want to store files like with Filecoin, imagine every time you use Dropbox, you have to contact a broker dealer, go through a KYC (Know Your Customer) process, perhaps be accredited by your Dropbox subscription on a licensed exchange, and then go through a whole bunch of reporting requirements, it just doesn’t work.”

Kate Prochaska of the U.S. Chamber of Commerce said that three things need to be done so that the crypto industry “doesn’t go abroad as well.”  Prochaska named regulatory coordination, clear definitions, and engaging with regulators to seek “no action” letters.

Coinbase has launched a new token listing process that reportedly will help list digital assets faster.

Cryptocurrency exchange Coinbase has announced a new process that will allow it to list more digital assets faster, according to a statement published September 25.

Per the announcement, the new process refers only to digital assets that are compliant with local law, which means that certain assets listed on the platform may only be available to customers in particular jurisdictions.

Issuers who want to submit tokens at Coinbase via the newly adopted process will have to use a special form, which will subsequently be evaluated by the exchange team against their digital asset framework.

Initially there will not be an application fee, however, Coinbase reserves the right to introduce a fee in the future in order to cover the legal and operational costs related to assessing and listing new assets.

Coinbase states that the new process will allow it to “list most assets over time that meet our standards.” Since the exchange expects the process to make new token listings more frequent, those listings will be announced only once they become available on one of Coinbase’s public products.

At press time, Coinbase supports Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC). Coinbase announced that it would add support for ETC back in June, after which the ETC price jumped 25 percent.

Later in July, the exchange said that it was examining the addition of five new coins to its trading lists, including  Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX).

In August, Coinbase started rolling out British pound (GBP) support, that enables the exchange’s customers with U.K. bank accounts to conduct faster transfers, letting customers buy and sell crypto for pounds within the same day.

Washington-based financial experts allege that North Korea hires people with access to E.U. cryptocurrency wallets to launder and exchange crypto into fiat money.

North Korea is "increasingly" using cryptocurrencies to evade sanctions imposed by the U.S., according to two Washington-based experts cited by news site Asia Times on September 24.

Lourdes Miranda and Ross Delston sent a joint response to an Asia Times' inquiry regarding the use of crypto by the government of North Korea (DPRK). Miranda is an independent financial analyst and a financial crimes investigator, and Delston is an independent attorney and expert witness in money laundering cases.

Both experts have claimed that the country is successfully trading existing cryptocurrencies, and is attempting to create one of its own, despite current restrictions imposed on fiat assets:

"International criminals everywhere prefer crypto-currencies and the DPRK is no exception. Crypto-currencies have the added advantage to the DPRK of giving them more ways to circumvent U.S. sanctions. They can do so by using multiple international exchangers, mixing and shifting services — mirroring the money laundering cycle."

Miranda and Delston further explain the scheme that they allege is in use by North Korean authorities.

Initially, the government hires people who have convenient personal identifiable information (PII) to open a crypto wallet that can be used to trade cryptocurrencies. Then local miners transfer crypto into "multiple" European wallets, where they are mixed and shifted in order to confuse anti-money laundering and know-your-customer (AML/KYC) systems.

The process ends with North Korean nominees buying bitcoins, which are later converted into other popular cryptocurrencies, such as Ethereum or Litecoin, to break the "linear pattern of transactions."

As the crypto asset’s point of origin is concealed, the North Korean government then has a chance to exchange "laundered" coins to fiat, thus receiving dollars without any sanctions attached, the experts concluded.

Miranda and Delston did not specify the approximate volume of the operations they described, nor did they reveal the source of their information.

As Cointelegraph reported in August, an earlier report by a South Korean bank revealed that North Korea had attempted to mine Bitcoin between May and July 2017. However, the test was then reported as unsuccessful. The report also contained data on attempts to create a North Korean crypto exchange.

Countries pressed by U.S. economic sanctions are often reported as experimenting with crypto. For instance, Venezuela launched its controversial "oil-backed" Petro coin, which some experts claim barely exists.

Iran is reportedly preparing to create its own national cryptocurrency, which is expected to facilitate international transactions for the country sanctioned by the U.S. for launching a national nuclear program, among other things.