Digital Currency

10 Countries Actively Regulating Cryptocurrency Despite Global Crisis

06/04/2020 by Idelto Editor

Despite the coronavirus pandemic and the resulting financial crisis, at least 10 countries have made announcements regarding cryptocurrency regulation since our last regulatory roundup. They include Japan, Malaysia, Singapore, China, Spain, Germany, India, the Philippines, the U.S., and South Korea.

Also read: IMF Declares Global Recession, 80 Countries Request Help, Trillions of Dollars Needed

Regulations Directly Affecting Crypto Exchanges, Businesses and Individuals

The world is going through a crisis with an escalating number of covid-19 cases causing economic turmoil in many countries. The International Monetary Fund (IMF) has declared a global recession, noting that at least 80 countries have asked for its assistance. Nonetheless, since our last regulatory roundup, a number of countries have made announcements relating to their cryptocurrency regulations.

During the past week, two countries approved new cryptocurrency exchanges. Japan approved its 23rd crypto exchange while Malaysia followed suit and fully approved a crypto exchange operator even as the country extended the nationwide lockdown.

The Monetary Authority of Singapore has granted a temporary exemption from holding a license to a number of cryptocurrency companies under the new Payment Services Act. Among the companies benefiting from this six-month grace period are Binance, Coinbase, Gemini, Bitstamp, Luno, Upbit, and Wirex.

In Spain, the tax authority has begun sending notices to 66,000 crypto owners. This number represents a massive increase from the 14,700 tax letters the agency sent to crypto owners last year. The letters will be sent until the end of June.

Crypto Regulations Progressing Worldwide

In Germany, the Federal Finacial Supervisory Authority (BaFin) published guidelines in English on March 30 regarding how companies can apply for its authorization to offer a crypto custody service. The new German crypto regulation went into effect in early January and companies had until March 31 to submit their intent to operate a crypto custody business. They now have until Nov. 30 to submit their complete application.

India is also working on cryptocurrency regulation despite the fact that there is a draft bill that seeks to categorically ban all cryptocurrencies except state-issued ones. The government is reportedly discussing the matter with the central bank. Furthermore, a state official has been discussing hosting educational events with the founders of India Crypto Bulls, the organizer of a crypto roadshow to take place in 15 major Indian cities.

A number of countries have warned about cryptocurrency investment schemes. In the Philippines, the Securities and Exchange Commission (SEC) has issued several warnings, including one on Bitcoin Revolution. The United States has also been involved in several crypto-related cases. For example, the U.S. SEC recently charged two individuals for allegedly defrauding hundreds of investors with an alkaline water-backed cryptocurrency. The commission is also involved in an ongoing battle with Telegram.

Another country that likes to issue warnings about cryptocurrencies is China. The National Internet Finance Association (NIFA), a self-regulatory organization initiated by the People’s Bank of China (PBOC), published a notice on Thursday regarding the risks associated with cryptocurrency. The association specifically warned of fake volumes at crypto exchanges. Meanwhile, the PBOC has reportedly completed the basic development of the nation’s central bank digital currency and is now drafting legislation for its circulation.

Last but not least, South Korea has also started a pilot program for its national digital currency. The country’s central bank, the Bank of Korea, announced the launch of this pilot program on Monday, April 6. The system will be set up and tested throughout the year. This announcement followed the approval of the bill by the Korean government to regulate cryptocurrencies.

What do you think about these countries pushing ahead with crypto regulations amid the crisis? Let us know in the comments section below.

The post 10 Countries Actively Regulating Cryptocurrency Despite Global Crisis appeared first on Bitcoin News.

‘What Bitcoin Did’ – Scanning the Hottest Cryptocurrency Keywords and Google Searches

26/03/2020 by Idelto Editor

For years now the term “bitcoin” has managed to capture a tight relationship with specific trends and keywords online. News.Bitcoin.com decided to investigate the specific keywords, questions, comparisons, and prepositions that are often associated with the digital currency when people are searching for answers.

Also read: US Real Estate in Jeopardy – Analysts Predict Housing Market Crash to 29-Year Lows

Keywords, Trends, and Searches Surrounding Bitcoin

Bitcoin is an interesting subject to many of us who live and breathe in this industry. Moreover, newcomers sometimes hear about the technology in passing from someone who is quite passionate about the invention. If their interest is piqued, they will research the subject online for more information. But newbs are not the only ones searching the net for digital currency information, as analysts, researchers, and crypto veterans search the net for statistics and comparisons too.

People use the website Google Trends (GT) to find specific data about bitcoin searches and the associated terms that are often typed with the word “bitcoin.” Looking at the term bitcoin on the website shows interest in the cryptocurrency has been dropping, but there was a increased interest on March 15-21, 2020. “Bitcoin’s” GT rating that week hit a high of 77, but since then it dropped 19% to a 62.

The most popular searched keywords tethered to the term “bitcoin” include “bitcoin price,” “bitcoin mining,” “what is bitcoin,” “bitcoin value,” “bitcoins,” “buy bitcoin,” “bitcoin usd,” “bitcoin exchange,” and “bitcoin wallet.” Worldwide statistics show the top five countries with the most bitcoin interest according to GT ratings are Nigeria, Austria, South Africa, Switzerland, and Ghana.

Google’s website gives a pretty nice glimpse into the minds of people searching for bitcoin-related subject material. However, the analytical website answerthepublic.com takes Google Trends data even further by mapping out flowcharts that show a visual representation of 180 bitcoin-related questions, 140 prepositions, 60 comparisons, 519 alphabeticals, and 20 related terms.

'What Bitcoin Did' - Scouring the Hottest Cryptocurrency Keywords and Online Searches — The website answerthepublic.com queries Google’s database and other browsers in order to give a better visualization of the specific term or keyword search. According to the company, there are 300 billion Google searches per day and 20% of them are new types of questions, comparisons, and prepositions.

The questions section is broken down into 10 associated phrases like “are,” “can,” “how,” and “what” to name a few. For example “are” questions include queries like “are bitcoin emails safe?” and “are bitcoin transactions anonymous?” The 60 comparisons connect bitcoin to all types of things like other cryptocurrencies, gold, USD, and the stock market. The alphabeticals section is a list of bitcoin-related terminology that people regularly search on Google in alphabetical order. The relevant prepositions list has attributives like “bitcoin is a currency,” “bitcoin is dying,” and “bitcoin is fake.” Answerthepublic.com’s bitcoin keyword statistics stem from Google’s autocomplete data and it is filtered into the platform’s listening tool.

Bitcoin’s Price 80% Correlated With the Cryptocurrency’s Internet Searches

Bitcoin keywords and GT data can be very useful to individuals and organizations and it’s possible to leverage this information to help with forecasting. Two of the biggest clues people are searching for online when it comes to the term “bitcoin” are the price and website traffic. Bitcoin and cryptocurrency prices have always been tethered to media, news stories, and rumors.

During the last few years, there have been a few reports showing that bitcoin’s prices are closely associated with GT ratings and other online trends. Olga Andrienko, head of global marketing at Semrush, reported last June that there is an 80.8% correlation ratio between bitcoin prices and internet searches for the term “bitcoin.” This type of correlation means that both GT data and cryptocurrency exchange prices show the two variables move in tandem.

Two months later another report was published in September that showed the price and GT data could be manipulated. On September 5, 2019, the term “bitcoin” spiked considerably on the GT website and researchers assumed the trend started in Romania. Swedish cryptocurrency website owner Bendik Norheim Schei said users with virtual private networks (VPN) were likely stimulating GT search alerts artificially.

This is a common theme used by scammers and a good example of this fact is how most GT “related queries” are related to scams like “bitcoin superstar,” “bitcoin era,” and “bitcoin moon.” These related queries are the top “breakout” keywords on a daily basis and they are likely artificial. “It is reasonable to assume that someone is behind these radical changes,” wrote Kryptografen’s Bendik Norheim Schei in September.

“That the same pattern can be seen all over the world may indicate that VPN services have been used to distribute the search across the world, thus achieving a global trend,” Schei concluded. “Google Trends points out that changes have been relatively large in Romania. Is this the source, or is it just because there have been fewer searches for BTC previously? Whatever the answer is–something very strange has happened to the interest in the keyword ‘BTC’ this past week.”

What do you think about all the keywords and trends associated with bitcoin? Let us know in the comments below.

The post ‘What Bitcoin Did’ – Scanning the Hottest Cryptocurrency Keywords and Google Searches appeared first on Bitcoin News.

China Is Drafting Laws for the Circulation of National Digital Currency

26/03/2020 by Idelto Editor

Amid the coronavirus pandemic, China’s central bank has reportedly completed the basic development of the nation’s central bank digital currency. The central bank is now drafting legislation for its circulation, according to local media. A number of patents have revealed what the digital yuan will be like.

Also read: 2x Bitcoin — Wanna Double Your BTC to the Moon? Forget About It

Coronavirus Pandemic Could Accelerate the Launch of China’s Sovereign Digital Currency

China’s central bank, the People’s Bank of China (PBOC), is reportedly closer to issuing its own digital currency, Chinese publication Global Times reported on Tuesday, citing an unnamed industry insider. The central bank, in collaboration with private companies, “has completed development of the sovereign digital currency’s basic function and is now drafting relevant laws to pave the way for its circulation,” the publication detailed. The insider elaborated:

As more central banks around the world are cutting interest rates to zero or even entering negative territory to release liquidity into the market amid the coronavirus (covid-19) pandemic, China should accelerate the launch of its digital currency.

The next step “involves digital currency legislation and working with banking and insurance regulators on supervision,” the insider noted, adding that this step “could be more lengthy” and “poses uncertainties for the exact date of the launch.” Cao Yan, director of the Advanced Research Institute of Blockchain under the Yangtze Delta Region Institute of Tsinghua University, believes that the PBOC “should accelerate the launch of its digital currency in the face of the unprecedented coronavirus pandemic,” the publication conveyed.

China’s central bank, the People’s Bank of China (PBOC), has reportedly completed the basic development of the central bank digital currency. The bank is now drafting relevant laws for the circulation of the digital yuan.

The PBOC started researching the possibility of launching its own CBDC in 2014 with the aim “to cut the costs of circulating traditional paper money and boost policymakers’ control of money supply.” In August 2019, Mu Changchun, deputy director of the central bank’s payments department, said that the digital yuan was “almost ready.” However, Governor Yi Gang later clarified that there was no timeframe for the launch and more time was needed for further research, testing, trials, assessments, and risk prevention.

Central bank officials explained that the CBDC will use a two-tier system where both the central bank and financial institutions will be legitimate issuers. Mu detailed that it would not be a cryptocurrency like bitcoin or a stablecoin, adding that the central bank has “completed the top-level design, standard formulation, functional research and development, joint debugging and testing.”

Patents Related to China’s Central Bank Digital Currency

A large number of patents have reportedly been filed relating to China’s central bank digital currency. The PBOC is said to have filed 84 patents relating to its plans to launch a digital yuan, as news.Bitcoin.com previously reported.

According to Global Times, a number of private companies participated in the development of China’s digital currency, including Alibaba, Tencent, Huawei and China Merchants Bank. Alibaba’s payment platform, Alipay, publicized five patents related to China’s CBDC between Feb. 21 and March 17, the news outlet detailed, adding:

The patents cover several areas of digital currency, including issuance, transaction recording, digital wallets, anonymous trading support and assistance in supervising and dealing with illegal accounts.

Many patents filed by the PBOC and Alipay revealed the nature and scope of China’s central bank digital currency.

The first patent, entitled “Implementation and Electronic Equipment of CBDC transaction,” was publicized on Feb. 21, the 8btc publication reported, asserting that by filing this patent, Alipay likely plans to participate in the second issuance in the national digital currency’s two-layer structure alongside commercial banks.

The next patent, revealed by Alipay on Feb. 25, was entitled “A Digital Currency Account Control Method and Device.” It indicates that “If regulators want to restrict illegal transactions, they need to go through the bank’s currency operating agency when illegal activities have occurred and it’s very difficult to recover the transferred fund,” the publication described.

Another patent, publicized on Feb. 28, was called “Digital Wallet’s Method and Electronic Device.” It discusses many types of digital wallets for different services. The next patent revealed by Alipay on March 17 was entitled “An Anonymous Trading Method and System Based on Digital Currency.” It details a system that uses temporary passwords for anonymous transactions.

Do you think China will be the first country to launch a central bank digital currency? Let us know in the comments section below.

The post China Is Drafting Laws for the Circulation of National Digital Currency appeared first on Bitcoin News.

Regulatory Roundup: Crypto Regulations Advance Despite Global Crisis, Cash Shortages, Bank Closures

25/03/2020 by Idelto Editor

In this roundup, we cover crypto regulatory developments amid the global crisis effected by the coronavirus outbreak, bank closures, interest rate cuts, and plunging stock markets. Through it all, governments worldwide are still focusing on cryptocurrency regulation, including the U.S., South Korea, India, and Russia.

Also read: Bitcoin Legal in India — Exchanges Resume INR Banking Service After Supreme Court Verdict Allows Cryptocurrency

US: Proposal to Issue Two $1 Trillion Coins, Covid-19 Responses, State Cryptocurrency Bills

Governments worldwide are in a panic mode as the number of covid-19 cases has skyrocketed, bringing many industries to a standstill. In the U.S., the Federal Reserve has slashed interest rates to 0% and launched unlimited QE, but the moves have failed to impress the markets so far. Some financial institutions, facing cash shortages, are imposing withdrawal limits, which threatens the risk of a bank run.

An attempt to solve the economic problem was proposed by U.S. Rep. Rashida Tlaib, who wants the U.S. Treasury to mint two trillion-dollar platinum coins. Her new “Automatic Boost Act” claims it will not add any debt to anyone thanks to the ideas behind Modern Monetary Theory. Some supporters of this theory believe that it can attract crypto proponents, as news.Bitcoin.com explained.

Several U.S. states have independently pushed ahead with their own crypto bills. The state of Illinois has advanced a bill to allow its Treasury to seize cryptocurrencies left unclaimed at custodians after five years. The state of Hawaii is looking for cryptocurrency companies to join its first regulatory sandbox for digital currency, launched on March 17. Applicants can apply until May 1.

In Rhode Island, House Bill 7989, entitled “Rhode Island Economic Growth Blockchain Act,” was introduced on March 11. The bill “Establishes an economic growth blockchain act, set regulations for the sale of hemp, regulate virtual and digital assets and establish depository banks for these purposes,” its summary details. On the federal level, Rep. Paul Gosar introduced the Crypto-Currency Act of 2020 on March 9 while under a coronavirus self-quarantine.

Meanwhile, the New York State Department of Financial Services is requiring each regulated institution, including crypto companies, to submit a response describing their plans to address the operational and financial risk posed by the covid-19 outbreak. They have 30 days from March 10 to submit their responses.

South Korean Government Approves Regulatory Framework for Cryptocurrencies

Amid the coronavirus outbreak, the South Korean government approved a revision to the Act on Reporting and Using Specified Financial Transaction Information at a cabinet meeting on March 17, the Financial Services Commission (FSC) announced. The bill passed National Assembly on March 5, as news.Bitcoin.com reported.

The FSC explained that cryptocurrency businesses will be required to report their transactions to the Korea Financial Intelligence Unit (KOFIU). They will be subject to basic AML requirements, including customer due diligence and suspicious transaction reporting. They also must “follow additional obligations such as keeping separate transaction details for users,” maintain separate transaction details for users, ensure that only real-name accounts are used for crypto trading, and obtain approval from the FSC and KISA (Korea Internet & Security Agency) to offer services in the country.

Financial institutions will be required to conduct customer due diligence on the crypto-asset business operators they deal with, checking whether these companies report their business to KOFIU and maintain customer deposits in a separate account. “The revision bill will take effect one year after promulgation, and the current crypto-asset business operators will be given a six-month transition period to report to the KOFIU,” the FSC emphasized, adding:

This revision act will place Korea’s legal framework on crypto assets more in line with international standards set forth by the Financial Action Task Force (FATF) and strengthen its AML/CFT regime.

India Working on Crypto Regulation, Waiting on April Supreme Court Hearing

The Indian government has reportedly revealed that it is also working on a regulatory framework for cryptocurrency. It is discussing the matter with the Reserve Bank of India (RBI) for the central bank to regulate cryptocurrency. Crypto exchanges may come under the purview of the Securities and Exchange Board of India (SEBI). The government is waiting for the supreme court to hear a cryptocurrency case on April 27 before it makes the final decision on the cryptocurrency regulation. Recently, Minister of State for Finance and Corporate Affairs Anurag Thakur informed Lok Sabha, the lower house of India’s parliament, that the Ministry of Corporate Affairs had inspected some bitcoin businesses through the Registrar of Companies.

The central bank, however, is reportedly planning to file a review petition after the supreme court quashed its circular which banned regulated financial institutions from providing services to crypto businesses. The RBI is worried that the anonymous nature of cryptocurrencies may undermine the Indian banking system. After the historic ruling by the supreme court earlier this month, crypto exchanges started resuming INR services and several global companies have indicated that they are expanding into India and investing in local startups.

Venezuela Shuts Down Banking System, Residents Seek Refuge in Cryptocurrencies

Venezuela’s president, Nicolas Maduro, has shut down the nation’s banking system and ordered his entire country to self-quarantine, news.Bitcoin.com reported last week. The regulator Sudeban sent out a circular to all the financial institutions in the country on March 15, stating:

All activities involving direct attention to customers, users and the general public through agencies, branches, offices and administrative headquarters throughout the country will be indefinitely suspended.

The economic events in Venezuela have driven some residents to find refuge in cryptocurrencies and peer-to-peer markets.

Russian Central Bank Reaffirms Its Stance on Cryptocurrencies

Alexey Guznov, Director of the Legal Department of the Bank of Russia, provided an update on the bill for the regulation of cryptocurrencies in an interview with Interfax news agency, published on March 16. The bill on digital financial assets was adopted on first reading almost two years ago. Since then, its text has been modified and undergone significant changes.

“The position of the central bank remains unchanged,” Guznov said. “We believe that there are big risks in the legalization of cryptocurrency circulation, both from the point of view of financial stability and the system of combating money laundering, and from the point of view of protecting consumer rights .. We are opposed to the fact that there are institutions that organize the release of cryptocurrency and facilitate its circulation.” The director added, “But if a person who owns, conditionally, bitcoins, completes his transaction in a jurisdiction that does not prohibit this, we are unlikely to be able to limit it.”

The central bank has so far been skeptical about cryptocurrencies. Bank of Russia Governor Elvira Nabiullina has voiced her opinion several times that cryptocurrencies should not be legal in Russia. She also does not believe that Russia needs to have its own national digital currency.

What do you think of the regulatory developments covered in this roundup? Let us know in the comments section below.

The post Regulatory Roundup: Crypto Regulations Advance Despite Global Crisis, Cash Shortages, Bank Closures appeared first on Bitcoin News.

Shelter-in-Place for Cash? 2 Bills Submitted by US Congress Mention ‘Digital Dollars’

24/03/2020 by Idelto Editor

During the last few days, members of the U.S. Congress have been trying to pen a stimulus plan to help the American economy. Since then, a few bills have been submitted by representatives and two particular proposals House democrats have tabled talk about a “digital dollar” and “digital ledger entries.” Following the submission of the “Take Responsibility for Workers and Families Act,” a revision was filed that does not contain the “digital dollar” section.

Also read: #NotDying4WallStreet – Twitter Trends Show People Are Fed Up With Wall Street, Banks and Oligarchs

Two Congressional Bills Speak of Digital Dollars and Ledger Entries Kept by the Fed

News.Bitcoin.com recently reported on the Michigan lawmaker Rashida Tlaib’s “Boost Act” which aims to give American citizens $1K per month if Congress approves the idea. Tlaib’s concept was derived from the framework behind Modern Monetary Theory (MMT) and allegedly the funding would not cause any debt. The Michigan democrat’s bill is also bolstered by its co-author, Modern Money Network’s Rohan Grey, and bureaucrats like Bernie Sanders and Alexandria Ocasio-Cortez (AOC) approve the act.

Following Rashida Tlaib’s proposal, two more bills have been submitted that offer a similar approach. The “Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act” and the “Take Responsibility for Workers and Families Act” (TRWF) both contained phrases and terms that hint at a “digital dollar.” However, shortly after the “digital dollar” section in the TRWF act made headlines, it was removed.

In fact, both bills look like they were authored by the same writer. Just before the “digital dollar” section within the TRWF bill was deleted it read:

The term ‘digital dollar’ shall mean a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve bank; or an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System).

World Economic Forum (WEF) head of blockchain, digital currency and data policy, Sheila Warren sent a statement to news.Bitcoin.com about the idea of a “digital dollar.”

“While it is always exciting to see openness to innovation on the part of the United States government, such an initiative would require careful consideration of digital identity and security and would require cross-sector engagement, including from civil society and technical experts beyond the financial system,” Warren told our newsdesk. “The use case for a US Central Bank Digital Currency is not entirely clear, and a CBDC in any country is not a silver bullet solution to the problems of financial inclusion, which are deeply complex.” The WEF author added:

On the other hand, increased digitization of the economy could result in a faster response to stimulus and enable readiness for future crises. Overall, it’s encouraging to see further evidence that the government is paying very close attention to the technology space and exploring fitness for purpose.

Central Bank Coins, Stablecoins, and a Cashless Society

All three bills do not contain language that refers to a blockchain or digital currency like bitcoin. However, the three bills have a lot of people speculating because the past few years the research and development of central bank digital currency (CBDC) has been very popular. Moreover, stablecoins have been thriving as well and people think that a concept like tether (USDT) could help governments like the U.S. leverage a blockchain. Besides the blockchain and cryptocurrency speculation, the digital part of these bills reminds people how the U.S. and much of the world is going cashless. Speculators assume that the current economic storm could be leveraged to reset the entire monetary system toward cashless finances.

Congress is hoping the stimulus package will be fully approved on March 24 and House Speaker Nancy Pelosi told the media there is “real optimism” American representatives can come to a decision on Tuesday. Meanwhile, U.S. citizens are not holding their breath waiting for this deal and many Americans will be pretty upset if politicians bail out Wall Street again.

What do you think about the bills talking about a “digital dollar” and “digital ledger entries”? Let us know in the comments section.

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