Crypto Exchange Huobi Isn’t Likely To Be Dominant Force In Brazil As Expected

When crypto exchange Huobi began their operations in Brazil in May 2018, crypto enthusiasts thought that it would give a tough competition to the local exchanges. Some of them even thought that by providing users lower fees, greater liquidity and larger coin selection, Huobi would threaten local exchanges. However, the recent round of layoffs suggested that the exchange is not likely to be a dominant force in Brazil.

When Huobi reportedly expanded its operations in Brazil in May, the exchange began marketing its platform in the country. It also started hiring regional staff after setting up a workspace in São Paulo. As part of its marketing initiative, Huobi representatives were seen handing out business cards at a cryptocurrency conference, VI Bitconf, held in São Paulo.

Crypto exchange Huobi also reached out to well-known names in the Brazilian market and put up ads on LinkedIn looking for a Chief Compliance Officer and a Digital Marketing Manager to work out of São Paulo. Before China placed an all-out ban on cryptocurrency trading in September 2017, Huobi was one of the largest Bitcoin exchanges in the country. Instead of pulling down its shutters due to the ban, Huobi began a major expansion effort. The exchange set up offices in South Korea, Singapore and elsewhere, as reported on Bitcoin Magazine.

Brazil with a population of 210 million is home to half the population of South America. It presented a huge potential market for Huobi. With the competition in Brazil being relatively sparse, Huobi was expected to give tough challenge to some of the biggest crypto exchanges in the country such as BitcoinTrade, Foxbit and Mercado Bitcoin. All these local exchanges trade relatively smaller volumes as compared to Huobi.

It was also believed that besides the existing crypto exchanges in Brazil, Huobi would be competing with XP Investimentos, the country’s biggest investment firm, which was also set to launch a cryptocurrency exchange, as reported on CCN.

Crypto exchange Huobi’s CEO, Frank Tao of Brazilian operations confirmed the recent layoffs. He, however, did not comment on how many employees were laid off. Last month, one of the larger Brazilian Bitcoin exchanges, Mercado Bitcoin also laid off 20 employees. It may be possible that Huobi is cutting down its Brazil operations owing to financial issues, as the bear market extends its reaching into 2018. Another probable reason may be that Huobi faced issues with the country’s regulation, as reported on CryptoGlobe. Whatever be the reason, this recent lay off decision may not position Huobi as the dominant force in Brazil as it was expected.

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Thailand Seeks To Strictly Control Its Domestic Cryptocurrency Market

In a bid to strictly control the domestic cryptocurrency market, Wissanu Krea-ngam, the Deputy Prime Minister of Thailand has called in for more regulations on virtual currencies. While the country introduced a regulatory framework for cryptocurrencies this year, Krea-ngam stressed that new measures need to be introduced both internationally and domestically in order to keep up with new threats to consumer security.

While speaking at the Counter-Terrorism Financing Summit, the Deputy Prime Minister stated that experts shouldn’t remain content with the present security protocols. If they remain satisfied, they would certainly lag behind criminals using cryptocurrencies for money laundering or for funding terrorism. Krea-ngam further added that the laws of the country need to be amended so that they can keep up with technological changes in a better manner.

Thailand’s financial regulator, the Thai Securities and Exchange Commission (Thai SEC) has told an exchange operating in the domestic cryptocurrency market to cease advertising, on November 13. The commission has warned the citizens to avoid using the Q Exchange platform due to legal uncertainty. In its statement, the Thai SEC said that it has not officially endorsed Q Exchange, a joint South Korean and Thai venture.

Following a royal decree in May this year, Initial Coin Offering (ICO) operators and exchanges must register and seek permission from the concerned authorities before beginning their activities in Thailand. With various actors calling for tighter controls in addition to the regulatory package now signed into law, Thailand has sought to strictly control its domestic crypto market this year, as reported on Cointelegraph.

Speaking further on the need to strictly control the domestic cryptocurrency market in Thailand, Krea-ngam raised the alarm about growing worries over money laundering via digital channels. The participants in the Counter-Terrorism Financing Summit agreed that governments must continue developing strategies to cope with illicit online financing. This is especially important since intergovernmental cooperation has decreased the number of terrorist attacks by cutting off their financial support, as reported on Bangkok Post.

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Tether’s USDT: What Crypto Trading Analysts Say

In October, crypto trading analysts, journalists, investors and traders in the crypto sector were engaged in an intense debate pertaining to USD-backed stablecoin Tether (USDT). During the debate, this group of crypto enthusiasts pondered upon the regulatory state and legitimacy of the asset. Tether or USDT which is commonly referred to as the first stablecoin was launched in 2014.

Citing the lack of regular audits that were promised in Tether’s whitepaper, a large chunk of the cryptocurrency sector has expressed a somewhat negative stance on USDT. However, the billionaire investor, Mike Novogratz mentioned in his statement that Tether is backed by the USD and it is challenging for crypto projects to secure complete audits from major accounting firms.

The crypto trading analysts also discussed that a partial audit of USDT last year disclosed that Tether LLC had held more than $2 billion in its USD bank account, thereby verifying the holdings of the company. Tether LLC is the company that looks after the operation and development of USDT. However, critics claimed that this audit had no significance, as it didn’t include the evaluation of Tether’s liabilities.

Majority of investors seem certain that USDT is fully backed by the USD. But while the probability of the stablecoin being fully backed by the USD is high, it is not feasible to prove this, until audits are released, as reported on CryptoSlate.

When asked about the possibility to redeem USDT based on its 1:1 USD backing, Jesse Powell, crypto exchange Kraken CEO, mentioned in his statement on October 18, that he is not sure whether Tether LLC can process USDT redemptions when the spread between exchanges is high.

In the midst of ongoing speculations in the crypto trading market about Tether’s USDT, on November 14, crypto exchange Bitsane shared an announcement in Dublin that it has officially listed USDT on its public trading platform. With this, Bitsane becomes the very first ever crypto exchange to support an EUR/USDT Tether Trading Pair, as reported on Bitcoin Exchange Guide.

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Understanding ‘Series A’ Funding Round Commonly Opted By Startup Crypto Exchanges

Startup crypto exchanges seem to largely benefit from a “Series A” funding round, as it helps in raising a substantial amount of funds for the overall business development of the firm. In general, funding rounds provide outside investors the opportunity to invest their capital in a growing company in exchange for partial ownership or equity of that company. Series A, B and C funding rounds refer to the process of developing a business through external investment.

Depending upon the industry and the level of interest among potential investors, there are other types of funding rounds available for startups. It is common for startups to also engage in “seed funding” at the outset. As the business starts gaining maturity, it is common for a startup to advance through Series A, B and C funding rounds.

A Singapore-based crypto exchange, KuCoin has recently announced that it has raised $20 million as part of its “Series A” funding round from Matrix Partners, IDG Capital and Neo Global Capital. The exchange intends to utilize the funds that it raised via “Series A” funding to launch its KuCoin platform version 2.0. The platform will include new features such as stop orders, upgraded APIs and a dust collecting tool that will presumably allow users to trade small amounts for KCS, the KuCoin token, as reported on CryptoGlobe.

It is common for analysts to undertake a valuation of the company in question before any round of funding begins. These valuations are derived from several factors such as a proven track record, market size, management and risk. The key distinction between funding rounds A, B and C has to do with the maturity level, growth prospects and valuation of the business. These factors influence the types of investors who are likely to get involved and also the reasons as to why the company is seeking new capital.

Series A Funding

A company or a startup exchange may opt for “Series A” funding, once the business has developed a track record comprising of an established user base, some other key performance indicator or consistent revenue figures. With the help of a “Series A” funding round, the company plans to optimize its user base and product offerings, as reported on Investopedia.

Investors do not just look for great ideas in a “Series A” funding round. Instead, they are looking at startup crypto exchanges or companies for that matter, with great ideas as well as a robust strategy for turning that idea into a successful money-making business. Thus it is common for firms going through “Series A” funding round to be valued approximately up to $15 million.

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Exchanges Eyeing Latin America As Cryptocurrency Adoption Seems To Be On Rise

Cryptocurrency adoption seems to be on the rise in Latin America and that’s the reason exchanges seem to be eyeing the country. While crypto is growing in Latin America, it is not just due to hyperinflation in Venezuela and Argentina. Cryptocurrency adoption is on the rise with a fresh wave of startups leading the way. While spikes in Bitcoin trading volumes are kind of expected in Venezuela and Argentina, Mexico, Chile and even Peru are witnessing a similar trend.

The parent company of the world’s largest cryptocurrency exchange OKEx, OKCoin has launched fiat-crypto trading services in Argentina. OKCoin shared the announcement via a tweet on November 15. In Latin America, the old Silicon Valley venture capital model of securing funds doesn’t work there. So, with little stock market action, no government support, and a lack of venture capital funding, companies are beginning to turn to cryptocurrency to carve out their piece of the pie.

The first smart contract cryptocurrency exchange platform, Rootstock may be one of the most promising and exciting crypto projects not just in Latin America but in the entire world. The exchange intends to build upon the Bitcoin ecosystem by adding value by extension and not just by adding greater functionality to the network.

Bitpagos, Argentina’s biggest exchange is another major player in Latin America’s crypto startup scene. The exchange has leveraged its success to launch an ICO in order to build a peer-to-peer credit network. It has already gained a partnership with Naranja, one of the biggest credit card issues in the region, as reported on Crypto Insider.

Latin America’s largest exchange, Bitso is also looking to shake up the world of finance. Bitso users are already able to send and receive fiat transactions instantly to anyone using the exchange platform. The exchange is also planning to transform the way Mexicans buy their groceries, pay their bills and even purchase a cup of coffee.

Cryptocurrency exchange OKCoin has revealed that in the coming months, it will be extending its services all over Latin America adding other local fiats to the list. In the near future, the company also has plans of opening an office in Buenos Aires and building a team to support development in the region, as reported on Cointelegraph.

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New Wave Of Regulated Stablecoins Make Their Way Onto High Volume Crypto Exchanges

A fresh wave of USD-backed regulated stablecoins seems to be making their way onto high- volume crypto exchanges. These early indications imply that traders may end up trusting these regulated stablecoins more than Tether (USDT). On November 15, major cryptocurrency exchange, Binance announced that it would be listing Circle’s USD-pegged stablecoin, USD Coin (USDC), with deposits opening immediately.

In the past couple of weeks, cryptocurrency firms Paxos, Gemini and Circle have all launched asset-backed stablecoins cryptocurrency tokens. The values of these tokens are pegged to the U.S. dollar with the physical assets being stored in company-controlled bank accounts.

All of the aforementioned crypto exchanges have received the regulatory authorization to operate in New York. The New York Department of Financial Services (NYDFS) is known as the strictest cryptocurrency regulatory framework in the U.S. Paxos and Gemini exchanges have each received NYDFS charters, while the Circle exchange has received “BitLicense”, the state’s most coveted license.

The new stablecoins Paxos Standard (PAX), the Gemini Dollar (GUSD) and USD Coin (USDC) seem all set to topple USDT as the fiat-pegged token of choice in the crypto markets. Presently, Tether (USDT) is the eighth largest cryptocurrency with a market cap of $2.8 billion. It is also known as the second most liquid cryptocurrency after Bitcoin, as reported on CCN.

All three issuers touted that their tokens PAX, GUSD and USDC will be regulated financial instruments. This brought about an unstated comparison to USDT, whose issuer has received a subpoena from U.S. regulators. As these new stablecoins start achieving liquidity on exchanges, it appears that the controversy surrounding Tether is causing USDT to be traded at a discount.

Crypto exchange Binance is not the first major platform to list USDC. Just last month, the Coinbase exchange extended its support towards the asset. To facilitate increased transparency, USDC has engaged a top-auditing firm to release monthly balance attestations of the corresponding USD and USDC balances issued or held, as reported on Cointelegraph. Binance mentioned that trading for USDC/BTC and USDC/BNB trading pairs will commence from November 17.

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Crypto Exchange Coincheck Hack: Trigger Point For Japan’s JVCEA Launch

In the aftermath of January’s infamous crypto exchange Coincheck hack, the Japan Virtual Currency Exchange Association (JVCEA) was launched. The association was launched after a group of domestic licensed crypto exchange operators got together to adhere to self-imposed rules in order to foster a healthy trading environment.

In no particular order, the 16 cryptocurrency exchanges that launched JVCEA in April include: Money Partners, GMO Coin, Bit Trade, BTC Box, BitPoint Japan, QUOINE, bitFlyer, Bit Bank, SBI Virtual Currency, DMM Bitcoin, Bitgate, BITOCEAN, Fiscalo Currency Exchange, Xtheta, Bit Argo Exchange Tokyo, and Tech BURO.

Crypto exchange Coincheck suffered an industry record-breaking hack in January when $534 million worth of NEM was stolen from its wallets. Taizen Okuyama, chairman of the JVCEA had said that the association intended to work hard towards developing internal control and security measures. He further added that JVCEA would also promptly promote the rules of transactions and advertisements. Okuyama stated that the association intends to eliminate the concerns of customers and work towards restoring confidence in order to develop healthy markets.

The JVCEA is also providing guidance to a lot of crypto exchanges that seek registration but continue to operate sans a license from the Financial Services Agency (FSA). The association is a unification of the country’s two major cryptocurrency trade bodies, the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA) under a single roof, as reported on CCN.

In October, the FSA formally approved and accredited JVCEA as a certified fund settlement business association. By gaining the said status, the association will be able to set rules for the nation’s exchanges and take due action in case of any violations, as reported on CoinDesk.

Crypto exchange Coincheck recently announced that it has resumed NEM (XEM) crypto token trading after the exchange’s platform was restructured by external security experts. This latest development at Coincheck’s end also reveals that the exchange has joined the Japan Security Association. In other words, the exchange is all set to renovate its tarnished image. Apart from NEM trades, Coincheck has also extended its support for Lisk (LSK) and Ethereum (ETH), as reported on Cointelegraph.

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Crypto Exchange Coincheck Hack: Trigger Point For Japan’s JVCEA Launch

In the aftermath of January’s infamous crypto exchange Coincheck hack, the Japan Virtual Currency Exchange Association (JVCEA) was launched. The association was launched after a group of domestic licensed crypto exchange operators got together to adhere to self-imposed rules in order to foster a healthy trading environment.

In no particular order, the 16 cryptocurrency exchanges that launched JVCEA in April include: Money Partners, GMO Coin, Bit Trade, BTC Box, BitPoint Japan, QUOINE, bitFlyer, Bit Bank, SBI Virtual Currency, DMM Bitcoin, Bitgate, BITOCEAN, Fiscalo Currency Exchange, Xtheta, Bit Argo Exchange Tokyo, and Tech BURO.

Crypto exchange Coincheck suffered an industry record-breaking hack in January when $534 million worth of NEM was stolen from its wallets. Taizen Okuyama, chairman of the JVCEA had said that the association intended to work hard towards developing internal control and security measures. He further added that JVCEA would also promptly promote the rules of transactions and advertisements. Okuyama stated that the association intends to eliminate the concerns of customers and work towards restoring confidence in order to develop healthy markets.

The JVCEA is also providing guidance to a lot of crypto exchanges that seek registration but continue to operate sans a license from the Financial Services Agency (FSA). The association is a unification of the country’s two major cryptocurrency trade bodies, the Japan Blockchain Association (JBA) and the Japan Cryptocurrency Business Association (JCBA) under a single roof, as reported on CCN.

In October, the FSA formally approved and accredited JVCEA as a certified fund settlement business association. By gaining the said status, the association will be able to set rules for the nation’s exchanges and take due action in case of any violations, as reported on CoinDesk.

Crypto exchange Coincheck recently announced that it has resumed NEM (XEM) crypto token trading after the exchange’s platform was restructured by external security experts. This latest development at Coincheck’s end also reveals that the exchange has joined the Japan Security Association. In other words, the exchange is all set to renovate its tarnished image. Apart from NEM trades, Coincheck has also extended its support for Lisk (LSK) and Ethereum (ETH), as reported on Cointelegraph.

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Understanding ’51 Percent Hacking Attacks’ That Impact Crypto Exchanges

When a nefarious entity is able to gain control of the majority of a network’s hashing power, it is termed as a 51 percent attack on a crypto exchange. Theoretically, it grants the entity/entities control of the confirmation transactions such as reversing transactions, stopping new transactions and double spending coins.

In May, at least five cryptocurrencies were hit with a 51 percent hacking attack. In each of these cases, hackers have been able to accumulate enough computing power to compromise smaller networks, re-arrange their transactions and flee with millions of dollars.

Cryptocurrencies intended to solve a long-standing computer science issue know as the “double spend problem”. Basically, without creating an incentive for computers to prevent and monitor suspicious behavior, messaging networks were unable to function as money systems. They failed to prevent someone from spending the same piece of data five times or more at once.

On November 11, the AurumCoin (AU) website released a notice stating that the Cryptopia crypto exchange was attacked. The notice claimed that all AU coins are missing from the exchange wallet. Strangely, AurumCoin pointed out that Cryptopia doesn’t seem to have acknowledged any hack. AurumCoin claimed that a total of 15,752.26 AU is missing from Cryptopia wallets, as reported on CryptoGlobe.

Hackers can’t do anything they want when they’ve amassed a majority of the hashing power. However, under certain conditions, they are able to double spend transactions. Generally, it wouldn’t make sense for an attacker to amass this expensive hashing power to double spend a $3 transaction on a cup of coffee. They can only benefit if they are able to whisk away with thousands or millions of dollars.

Hackers seem to have found smart ways of ensuring that the conditions are just apt for them to make extra money. That’s the reason attackers of Bitcoin Gold, Monacoin, Litecoin and Zencash have all targeted exchanges holding millions in cryptocurrency, as reported on CoinDesk.

The only way in which crypto exchanges or users can ensure they are not defrauded is to accept money that is older or has been buried by more blocks of transactions known as “confirmations”. If the number of confirmations has been more, the tougher the funds are to steal in a 51 percent attack.

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Estonia’s Innovative And Open Cryptocurrency Regulations Attracting More Exchanges

Open and innovative cryptocurrency regulations in Estonia are attracting more exchanges as compared to the other European Union states. While the Estonian government classes virtual currencies as digital assets for tax purposes, it does not subject them to VAT. However, in 2017, the Anti Money Laundering and Terrorism Act introduced robust new regulations for crypto exchanges operating in the country.

After the 2017 AML/CFT legislation, crypto exchanges in Estonia operate under a well-defined regulatory framework that entails stringent KYC and reporting rules. As per the present legislation, exchanges need to obtain two licenses from the Financial Intelligence Unit (FIU) of Estonia. These licenses include the Virtual Currency Exchange Service License and the Virtual Currency Wallet Service License.

Estonia’s business-friendly environment, low taxes, a progressive community and free wireless internet on almost every street are enough reasons to lure any cryptocurrency exchange to the country. Also, the business registration process in Estonia is much less time consuming compared to most other countries in the world. The country’s e-residency registration program takes less than 30 minutes to complete. The program ensures a startup is compliant with banking, taxes and gets incorporated effortlessly.

Despite not embracing the concept of cryptocurrencies till early 2017, the Estonian government didn’t overtax cryptocurrency startups. Initial Coin Offering (ICO), which is considered to be a risk-filled crowdfunding model, is also not regulated so much in the country. The government had announced in late 2017 that it has plans of launching a state-sponsored ICO, as reported on International Investment.

The B2BX cryptocurrency exchange announced on November 12 that it has received approval from the Estonian FIU for a regulatory license. This means that the firm will be able to operate as a completely regulated crypto exchange. This makes it one of the first exchanges in Europe to secure this form of recognition, as reported on APNews. The low cost of running and starting a business in Estonia is one of the several reasons that blockchain startups are flocking to the country.

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Here’s All You Need To Know About Operating VFA Crypto Exchanges In Malta

The Legal framework designed by the Maltese government for regulating virtual financial assets (VFAs) and virtual financial assets related services (VFA Services) including operating a crypto exchange, comprises of a series of three laws: the Malta Digital Innovation Authority Act (MDIA Act), the Innovative Technology Arrangements and Services Act (ITAS Act) and the Virtual Financial Assets Act (VFAA). With regards to the latter, here’s all that investors need to know about operating VFA crypto exchanges in Malta.

Malta introduced 4 types of licenses for companies intending to provide services related to VFAs. The licenses Class 1 – 4 comprise different types of rights and need different investment levels. The Malta Financial Services Authority (MFSA) grants these licenses. Upon application, a one-time application fee is payable and each license is subject to an annual supervisory fee.

The VFAA Class 1 license is particularly suitable for service providers or intermediaries offering investment advice for crypto investments. The license entitles its holders to receive and transmit orders pertaining to VFAs and to offer investment advice pertaining to the same.

The VFAA Class 2 license is not meant for VFA crypto exchange operators. This license is especially suitable for P2P exchanges, wallet providers and hot wallets and service providers offering portfolio management of crypto investments. The VFAA Class 2 license allows firms to offer any VFA service and to control or hold customers’ money, as stated in Dr. Werner & Partner blog.

The VFAA Class 3 license allows its holders to offer any VFA service and to control or hold the money of customers. The VFAA Class 4 is the most comprehensive license that entitles firms to operate a VFA exchange and to control or hold customers’ virtual financial assets, customers’ money, and/or private cryptographic keys and nomination or custodian services only in connection with the operation and activities of that particular VFA exchange.

The Bitstraq crypto exchange has become one of the first VFAA Class 4 service providers and licensed exchange in Malta. The platform has started with five trading pairs with major cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash and Litecoin to be traded on the exchange. It intends to add more tokens and coins in the near future, as reported on PRNewswire.

The VFAA Class 4 license being the most comprehensive license is particularly intended for all VFA crypto exchanges. The government of Malta presumably intended to utilize this license to get involved in the attractive future business of these exchanges. This seems to have convinced the industry giants such as OKEx and Binance to settle there.

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Beware Of Investing In Crypto Market Via Unauthorized ICOs And Exchanges: FSC

The South Korean Financial Services Commission (FSC) had warned potential investors in October to be wary of buying into unauthorized Initial Coin Offerings (ICOs) and crypto exchanges. The commission had clearly stated in September that it will be banning all kinds of ICOs, as it felt that trading of virtual currencies needed to be tightly monitored and controlled.

In its statement, the FSC had said that after having a discussion with the Finance Ministry, the National Tax Service and the Bank of Korea, they assessed that ICOs are on the rise in South Korea as well. In fact, raising funds through ICOs seems to be the trend globally. Hence, the regulatory body decided to issue stern penalties on financial institutions and any parties involved in issuing of ICOs. It, however, did not elaborate on the details of the penalties.

In continuation with the crackdown of unauthorized South Korean crypto exchanges, Zeniex becomes the latest casualty. The exchange in its official statement issued on November 9 announced that they will be terminating all their services shortly, as they lost the battle with the Korean regulatory authorities. Zeniex’s ZXG token was called out by the FSC for not registering with the nation’s crypto regulatory bodies.

As the FSC’s crackdown on unauthorized crypto exchanges thriving in the market continues, the decision to ban ICOs as a fundraising tool was taken as the government considered the latter to increase the risk of financial scams. Similar announcements were made in China and the U.S. where the increasing trading volumes of cryptocurrencies seem to be sparking concerns, as reported on Reuters.

In May this year, the FSC became another regulatory body to join the investigations being carried out on local crypto exchanges. Some of the grey areas that the FSC will be focussing upon pertain to that of anti-money laundering. This was earlier led by the Financial Supervisory Service (FSS). Kim Yong-beom, Vice Chairman of the FSC had been urging regulators across the world to be a part of this mission.

The FSC presently has the authority to verify bank accounts associated with South Korean crypto exchanges to ensure if they have been adhering to anti-money laundering standards and other prevention measures in place, as reported on Bitcoin Exchange Guide.

Crypto exchange Zeniex was a recent entry into the South Korean crypto market. Established in May 2018, it was a collaborative crypto exchange effort between South Korea and China. Zeniex was aware that issues with their token ZXG have raised concerns both externally and internally that finally culminated in the closure of the exchange. The exchange has announced that all operations on their platform will cease on November 23, as reported on CryptoGlobe.

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South East Asia’s Varied Stance On Crypto Exchange Trading Regulations

South East Asia has a varied stance pertaining to crypto exchange trading regulations. In fact, all around the world, the state of crypto regulations is dynamic but sounds very chaotic. For instance, East Asian regulators are going berserk over it with the Chinese being totally averse to cryptocurrency and obsessing over Blockchain instead. Koreans on the other hand, seem to be still in confusion and the Japanese have figured out some neat tricks to regulate cryptocurrency.

The Security and Exchange Commission (SEC) of Thailand shared an interesting announcement in June, according to which it decided to approve at least five Initial Coin Offerings (ICOs) out of 50. The commission had stated that for this purpose, it will prefer projects with commercial attributes and which can be easily checked.

Later, the Thailand SEC had stated that crypto exchange trading rules and regulations pertaining to digital asset investment and transactions could be eased. However, that would depend on whether the market participants are more educated on digital asset investment and if the domestic competition is at par with other virtual asset markets of the world. Initially, the Indonesian Bank also tried to impose a crackdown on cryptocurrency. But it turned out to be ineffective and later via the executive government in Jakarta, cryptocurrencies managed to gain recognition. Presently, the Indonesian government is working on additional regulations for crypto exchanges.

South Korea-based exchange Upbit, as part of its global expansion plans, has started marketing new crypto exchanges in Thailand and Indonesia. Over 240 trading pairs and 130 coins will be offered on both these new Upbit exchanges, as reported on Bitcoin News. Upbit has recently launched a cryptocurrency exchange in Singapore.

Singapore has a more liberal stance on crypto exchange trading regulations. Cryptocurrency payments and trading are both legal in the country and it does not even impose any major regulatory requirements, as reported on Koinalert. While the government’s attitude is quite relaxed in terms of crypto regulation, crypto trading, however, is taxed in Singapore.

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Market Investors Excited Over Horizon of Crypto Payment Options Expanding

At a time when crypto market investors seem to be worried about the various regulatory bodies tightening the noose around crypto exchanges, the news of the horizon of cryptocurrency payment options expanding over multiple platforms and industries comes as a whiff of fresh air. Square was one of the first major payment processors to support Bitcoin transactions, in a series of progressive moves. Founded in 2009, Square is a merchant services and mobile payments company that’s known for its portable point of sale systems such as Square Register and Square Reader.

Although a lot of finance experts seem to disagree on the short-term prospects of cryptocurrencies, the push for its adoption is a bandwagon that insiders, leaders and investors can easily hop onto. That’s the reason why a lot of investors were over the moon when Binance’s CEO, Changpeng Zhao revealed that Binance Coin (BNB), an ERC20 token can be used to purchase an aircraft.

The crypto market received another hot news on November 7 when Bithumb, the South Korean exchange announced the launch of its cryptocurrency payment service for major online shopping marketplace Qoo10. Referred to as Asia’s Amazon by Bithumb, the exchange started offering the Bithumb cash payment service for Qoo10 from November 5. Alongside, Paypal, E-money and Payco, this payment option is now listed on the marketplace.

In November 2017, Square moved to beta test Bitcoin payments and by January this year, the company had released the feature to most of Cash App’s users. With this move, Square can now compete head-to-head with several incumbents in the crypto payments processing space. BitPay’s been an incumbent since May 2011 and the new entrant as of February 2018 is Coinbase Commerce, as reported on Cryptoslate.

Binance’s aforementioned announcement pertaining to BNB token came just days after Hinomaru Limousine, in collaboration with Remixpoint, released a plan to integrate Bitcoin Cash, Bitcoin and Ethereum payments into its transportation services, as reported on NewsBTC. A world-famous Swiss watchmaking brand, Hublot, also unveiled limited support for crypto payments. The brand released the exclusive “BIG BANG P2P” watch. It is a Bitcoin-inspired watch that’s created to celebrate the cryptocurrency’s 10^th anniversary.

Bithumb had revealed to crypto market investors in November 2017 that it was working towards creating a simple payment system to facilitate its members to use their cryptocurrencies and KRW to pay for goods and services, as reported on BitcoinNews. A Bithumb official had further added that all cryptocurrencies held in the exchange’s accounts can be used by the users.

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How To Identify Exit Scam Stunts Pulled In By Cryptocurrency Exchanges

A cryptocurrency exchange startup, Confido disappeared overnight in November 2017, after it collected $175,000 through its initial coin offering (ICO). Similarly, another crypto startup, LoopX, abruptly shut down in February 2018, after raising $4.5 million through a combination of Ethereum and Bitcoin, from investors. This exchange too promised guaranteed profits. The latest name to join this bandwagon of exit scams is Pure Bit, a South Korean exchange.

A fraudulent practice carried out by unethical cryptocurrency promoters who disappear with investors’ money after or during an ICO is known as an exit scam. The modus operandi that is followed is very simple. Promoters enter the market by launching a new crypto trading platform on a promising concept. The platform then raises money from various investors during the ICO. Once they collect a substantial amount, the promoters vanish with the money collected via the ICO, leaving the investors in the lurch.

Although it is somewhat challenging to identify an ICO announced by a cryptocurrency exchange, investors need to keep certain pointers in mind, before they make an investment decision. One of the biggest challenges pertaining to the virtual world is ownership and accountability. Hence, investors must compulsorily verify the credentials of the crypto team prior to investing their hard-earned money in ICOs.

Investors must also be cautious if a certain business concept sounds too good to be true. Also, ambiguously written and unclear white papers should be a big red flag for investors to identify a potential exit scam. In case a cryptocurrency project seems to be a concept-only and non-existent product, then investors must understand that it probably won’t work. Another sign of an exit scam is big promotions. While all ICO offerings with big promotions may not be potential exit scams, an investor must adopt a cautious approach and carry out background checks of the claims being made, as reported on Investopedia.

In the case of Pure Bit cryptocurrency exchange, the firm’s Facebook page has suddenly disappeared. Not only that, but most of its other public-facing contact options has also vanished. The Pure Bit ICO seemed quite similar to other crypto exchanges that been have funded via the ICO model. Over 13,000 ETH was collected in this ICO, which has now suddenly disappeared, as reported on CCN.

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SEC Is Very Serious About Taming Crypto Exchanges

The U.S. Securities and Exchange Commission (SEC) seem very serious regarding its objective of taming crypto exchanges. The SEC has also issued an open warning to the latter. In fact, exchanges must take this seriously, as there’s no out-innovating the regulatory reach of the commission.

Tokens and cryptocurrencies offered through initial coin offerings (ICOs) are assumed as securities by the SEC. Thus it is of the opinion that cryptocurrency exchanges need to follow the same rules as every exchange. The SEC says that crypto exchanges should register as an alternative trading system (ATS) or a broker-dealer through the commission, as a national securities exchange. However, seeing the present state of affairs, the SEC says that the situation is a mess.

A lot of crypto platforms refer themselves as exchanges. This gives investors the misimpression that they are regulated or in other words, they meet the regulatory standards of a national securities exchange. Many of these so-called exchanges have also set up their own rules in terms of listing new tokens.

Taking its initiative of taming exchanges further, the SEC is in the midst of its first ever case against an exchange running on the Ethereum blockchain. Robert Cohen, the chief of the SEC’s newly created cyber unit said that using any blockchain to create an exchange without central operations, does not take away the original creator’s responsibility.

Cohen said that the focus is not on the label that is attached to something or the technology that is used. The focus is on what the platform is doing, whether it’s on a smart contract or not and whether it is decentralized or not, as reported on Forbes. The commission’s charges are not against the exchange, but Zachary Coburn, the founder of the unlicensed decentralized token exchange, EtherDelta.

In order to help investors pick an appropriate crypto exchange, the SEC has provided a list of questions for them, as reported on TechCrunch. Some of these questions include: Do the investors trade securities on the platform? If yes, is the platform registered as a national securities exchange? What are the trading protocols on the platform? How are prices set on the said platform? How does the exchange safeguard the users’ trading and personal identification information?

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Significance Of ‘Market Making’ In Cryptocurrency

Market making has become increasingly important for the cryptocurrency, particularly to ensure market liquidity. The concept of market making is as important as the market structure itself. The process of market making can provide opportunities for the prevailing financial markets in order to operate and function smoothly.

A Market Maker (MM) can either be a financial institution or an individual that provides bids and comes up with prices to correspond to certain marketable securities such as in the case of virtual currencies. The task of a market maker is to provide sufficient liquidity in order to balance out and reduce the price volatility and to be able to sell and buy the said marketable securities for reasonable prices.

Bitcoin exchange Bgogo announced on November 5 that it has officially started accepting applications for cryptocurrency market makers. The exchange is looking out for market makers in order to enhance liquidity, increase the trading depth and to improve the overall trading experience. The accounts of market makers benefit from zero trading fees. The MM accounts are exempted from trade mining. This includes rebate benefits from BGG and other featured coins on the Bgogo exchange platform.

In its announcement, Bgogo stated that the application and selection process will end on December 31, 2018. The market maker may start operating immediately, once the application is approved. The exchange will be releasing the new terms and conditions at the beginning of 2019. The MM accounts once approved will have a daily trading requirement that’s equivalent to 5 BTC, as reported on CryptoNinjas.

Apart from creating avenues for market liquidity, the market makers create advantages and opportunities for the investors in terms of eliminating delays in cases of orders and in ensuring that spreads are well-stabilized, as reported on Medium blog post.

Liquidity provides a clear measurement in the realm of virtual currencies as to how fast a particular cryptocurrency is sold or bought in a certain cryptocurrency market platform without compromising its value. Delays in order fulfillment can be eliminated in most cases and also be minimized to a large extent thereby reducing the worries and risks at the market participants’ end. In line with its role in providing market liquidity, market makers make it feasible for spreads to be stabilized.

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Tracking Origins Of Crypto Exchange Cyber Attacks: A Challenging Proposition

Cyber attacks on crypto exchanges carried out by hackers are a growing threat to the security of users, businesses and the government. Tracking the origins of cyber attacks is indeed a challenging proposition. However, considering the increasing severity and frequency of the attacks makes it even more important than ever to understand the source of the attack.

The attackers of the Japanese cryptocurrency exchange Zaif may have been discovered, according to cybersecurity experts at Japan Digital Design. Zaif lost $60 million dollars during the recent hack that took place in September, this year.

In order to track the source of a hacking attack and to categorize it aptly, the attack needs to be analyzed from a number of aspects. These include the motivation of the attack, its technical origin, information included in scripts, data files and binary codes and analyzing the modus operandi of the hacker.

Once a potential incentive of a crypto exchange hacker is identified, it is significant to discern if the activity matches that particular incentive. This is important in order to validate the hypothesis. Identifying a potential incentive entails information such as any command and controls, the IP address, the location of the devices used during the attack, email address or other channels. The information included in scripts, data files and binary codes is applicable only in cases where a customized exploit or a specific malware is used.

Analyzing the modus operandi of hackers entails matching the active hours of the hacker with a particular location, malware tactics similar to the ones used by a known hacker or script comments, if available, as mentioned in the PWC whitepaper.

Japan Digital Design informed that in case of the Zaif exchange hack, it was able to identify the source of the hackers. However, there is no specification pertaining to the data collected or its accuracy. Apparently, the agency was able to obtain IP addresses and other useful information, as reported on Bitcoin Exchange Guide.

Considering the challenges involved in tracking the origins of crypto exchange cyber attacks, even if the attacker is identified by name, address and phone number, it is often very challenging to prosecute the person, as the latter may live in a jurisdiction that is not particularly in alignment with the victim’s country.

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Why Are CEZA Crypto Exchange Licenses High In Demand?

The Philippines Cagayan Economic Zone Authority (CEZA) has seen a rise in the number of companies applying for crypto exchange licenses, in the last couple of months. The interest shown by companies in applying for licenses has surpassed all expectations, according to inside authorities. In August, the agency had seen over 17 different companies pay the full fees associated with applying for a license, while 19 others were working on their payment process.

CEZA, which is owned and operated by the Philippine government, typically regulates the economic zone in the country. Since the establishment of the unique economic zone, the authority has always seen keen interest from various companies to be a part of the zone. Companies from across the world have been flocking to the zone in order to take advantage of fair rates of doing business and lax regulations and oversight, compared to other countries.

The key reason behind companies vying for CEZA crypto exchange operating licenses is that the Philippines has made a concerted effort to give the crypto community room to grow within the cryptocurrency economic zones. This holds a lot of importance for the companies vying for licenses, especially since countries all over the world continue to work towards regulating the cryptocurrency market.

The CEZA has granted an offshore virtual currency exchange (OVCE) provisional principal license to Asia Premier International Limited (APIL). This takes the number of offshore fintech firms who are given the privilege to operate a crypto exchange within the special economic zone to 17.

Raul L. Lambino, CEZA administrator stated that APIL was granted the OVCE license in order to coincide with the launch of APIL NiuEX Exchange. Amando V, Jimenez, APIL CEO described the journey and the struggles that the company faced while securing the said license. He said that the company underwent rigorous pre-screening requirements and probity check, other than the huge volume of documents that they had to submit, as reported on Cryptovest.

The economic zone had forecasted in August that they intend to earn over $68 million from the application process of companies who were seeking crypto exchange operating licenses with the CEZA, as reported on Bitcoin Exchange Guide.

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Brazil Strengthens Battle Against Money Laundering, Crypto Exchanges To Furnish Monthly Reports

As the Brazilian government intensifies its battle against money laundering and corruption, the Department of Federal Revenue announced that crypto exchanges will have to furnish monthly reports, going forward. The government said that by instituting tighter reporting rules on the finance industry, it is cracking down on money laundering activities. In recent years, the country has strengthened its laws and all Brazilian banks have been instructed to report any kind of suspicious activities.

Now that Brazilians have recently elected Jair Bolsonaro as the President, money laundering and corruption is a matter of concern, considering Bolsonaro’s pledge as a populist to end corruption. The tax regulator stated that it seeks to verify tax compliance as well as improve the fight against corruption and money laundering. The agency also intends to increase the perception of risk in taxpayers who intend to avoid taxes.

The Brazilian tax regulator, the Department of Federal Revenue cited examples of South Korea and Australia and announced in a document that they will need monthly reports from crypto exchanges from now on. The document also highlights the significant increase in cryptocurrency trading in the country. The annual Bitcoin trading volume has seen a jump from 44.8 million BRL in 2014, to 113 million BRL in 2015. The volumes just got larger in 2016 and 2017 respectively, as reported on NewsBTC.

The first anti-money laundering law was passed by Brazil in 1998. Over the last couple of years, the law has been updated thereby widening the number of activities that banks need to report from 43 to 106. As an outcome, the Council for Financial Activities Control (COAF) produced 5,662 case reports in 2016, compared to 1,149 in 2010.

As the government tightens the noose around Brazil’s crypto exchanges, the central bank of the country also performed 200 audits in the last three years. These audits were carried out to determine if the local banks are taking enough steps to prevent money laundering. The central bank’s national monetary council had issued instructions to the local financial institutions to implement new mandatory compliance guidelines by the end of 2017, as reported on LatinFinance.

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