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Tag: BTC

  • Binance Unveils Singapore Crypto License Ambitions

    Binance Unveils Singapore Crypto License Ambitions

    Cryptocurrency exchange giant, Binance, has applied for an operating license in Singapore which continues to lure new players following the recent progressive developments in its regulatory regime.

    Founded in 2017, Binance experienced extremely rapid growth before achieving an estimated market cap of $1.3 billion by early January 2018. The Malta-headquartered exchange now has offices located globally including in Singapore where it is backed by Temasek’s venture capital arm Vertex Venture.

    Whilst initially focused only on crypto-to-crypto trading platforms, which allowed Binance to grow without dealing with banks and regulators, the firm began to focus on the development of formal exchanges in jurisdictions with a relevant regulatory regime like Singapore.

    We have already applied,» said Binance co-founder and CEO Zhao Changpeng. «We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

    Last month, Singapore introduced the Payment Services Act which will formally regulate companies engaging in activities ranging from digital payments to the trading of tokens like Bitcoin or Ether. In addition to an expanded regime, the Monetary Authority of Singapore’s supervisory powers were also enlarged to cover cybersecurity risks and controls on money laundering and terrorism financing from such activities.

    Greater clarity for businesses through explicit regulation was expected to be a key driver for new entrants. Other reported applicants thus far include Tokyo-based crypto exchange operator Liquid Group Inc and London-based Luno.

  • Australian Crypto Exchange Debuts in Singapore

    Australian Crypto Exchange Debuts in Singapore

    The firm wants to offer its platform and services to a wider audience in APAC, following a number of strategic partnerships and business growth in 2019.

    Sydney-based cryptocurrency exchange Independent Reserve, announced its launch in Singapore this week as a separate entity, which will allow Singapore residents to buy, trade and hold digital currencies like Bitcoin, Ethereum, Litecoin, and XRP, on its platform, with Singapore-dollar trading pairs to be added.

    We felt the time was right to make this move, said Adrian Przelozny, CEO and founder, in a press release, noting the introduction of the Payments Services Act by the Monetary Authority of Singapore, which entered into force on Tuesday. The response we’ve received so far from the Singapore market has been overwhelmingly positive, he added.

    Independent Reserve was established in 2013 and has the backing of the Australian finance industry heavyweights Mike Tilley (ex-CEO of Challenger Financial and Chairman of Latitude Financial), Martin Rogers (KTM Ventures) and Steve James (Seer Asset Management), who are investors and board members.

    The firm has already built a strong presence in Australia and New Zealand, with over 120,000 customers and around 8,000 self-managed super funds (SMSFs), and recently introduced insurance coverage for cryptocurrency held by its clients.

    It has also been working closely with regulatory bodies including AUSTRAC to formulate AML/CTF regulatory frameworks for the industry.

  • Stack Launches Asia’s First Bitcoin Index Fund

    Stack Launches Asia’s First Bitcoin Index Fund

    Stack, an Asia-based provider of cryptocurrency trackers and index funds, has launched the single-asset index fund in response to investor demand. It expects to capture $750 million in assets under management within 2020, Matthew Dibb, co-founder of Stack said.

    The firm hopes to surpass $2 billion in assets under management next year by tapping into the unmet demand from traditional investment vehicles in Asia’s digital asset space. Stack’s list of partners includes financial services providers, BitGo, Silvergate Bank, and Coin Metrics for a custodian, banking, and index solutions, respectively.

    We’ve seen a dramatic increase in the number of investors seeking to diversify their portfolios using bitcoin. Fears of a global recession, combined with deteriorating trade relations globally, are accelerating this process considerably. Bitcoin is one of the best-performing assets in history—with 19x returns since 2014—and is uncorrelated with traditional markets, making it an attractive prospective investment for both individuals and institutions, said Matthew Dibb, co-founder of Stack.

    The launch of Stack comes as the number of long positions being taken within the bitcoin market and demand from institutional investors for access to the digital asset economy increase. In Asia, however, there are virtually no risk-adjusted investment portals for the bitcoin market, leaving investors in Asia with no opportunity to access the potential returns, said Dibb.

    Currently, investors purchasing and custody bitcoin through digital asset management portals or traditionally structured funds pay premiums of 20 to 40 percent over the underlying asset. Wealth management firms have also been capable of charging exorbitant management and performance fees, even for passively-managed single asset portfolios.

    In contrast, Stack’s flagship Bitcoin Index fund (BTCX100) gives investors in Asia a flexible and cost-effective means of gaining exposure to bitcoin which complies with the financial industry’s standards while mitigating the risks inherent to purchasing, transacting, and storing digital assets. With a minimum investment of S$100,000 at 2.25 percent management fee, Stack provides an institutional-grade alternative to the high premiums and barriers to entry which come with current digital asset hedge funds.

    Those who wish to purchase BTC and other digital assets through other available exchanges and portals are often forced to bear the risks of poor security in custody these assets. With the launch of Stack’s Bitcoin Index Fund, investors now have an alternative to these channels, and can now enjoy secure custody with insurance coverage, weekly contributions, redemptions, and reporting, mitigating the risks that come with buying and holding digital assets through other means, said Dibb said.

  • China’s Crypto Crackdown Hits Five Exchanges

    China’s Crypto Crackdown Hits Five Exchanges

    China’s crackdown on cryptocurrencies has led at least five local exchanges to halt servicing of domestic users or their whole operations altogether.

    Last week, Chinese exchange operators Bitsoda and Akdex announced that it would cease its operations. Btuex and Idax said they would close domestic operations and focus on overseas users. Biss said it had halted ops while it cooperates in investigations with local authorities.

    The exchanges account for the five known exchanges that have suspended or shut down their operations. Other players that are believed to be affected include Binance and Tron whose Webio accounts have reportedly been suspended.

    Weeks after Beijing declared support for blockchain technology, the market has been rushing to capitalize on perceived opportunities from digital currencies. This subsequently led regulators in Shanghai, Shenzhen, and Beijing to ramp up efforts to probe or shut down exchanges.

    Concurrently, China is readying to realize part of its blockchain ambitions with the launch of its own central bank-backed digital currency. It is already making accelerated efforts to ready the regulatory grounds for the launch including the introduction of new standards in 17 areas of emerging technologies which include not only blockchain but also cloud services and artificial intelligence.

  • ICE Bitcoin Futures Slated for December Launch

    ICE Bitcoin Futures Slated for December Launch

    Atlanta-based Intercontinental Exchange (ICE) is planning to launch bitcoin futures on December 9 in Singapore, following regulator’s new papers permitting the trading of derivatives tracking certain cryptocurrencies.

    The Bakkt bitcoin cash-settled monthly futures contract, denominated in U.S. dollars, will be settled against data from physically delivered Bakkt bitcoin monthly futures contract. The new contract will be listed on ICE Futures Singapore and cleared by ICE Clear Singapore.

    «Our new cash-settled futures contract will offer investors in Asia and around the world a convenient, capital-efficient way to gain or hedge exposure in bitcoin markets,» said Lucas Schmeddes, president and chief operating officer of ICE Futures and Clear Singapore.

    ICE Futures is the first of four exchanges approved by the Monetary Authority of Singapore to launch regulated futures contracts for payment tokens like bitcoin. This follows a recent MAS consultation paper green lighting crypto-linked derivatives driven in part by observed intuitional demand for a regulated product.

  • Thailand on the Verge of Becoming a Cryptocurrency Heaven

    Thailand on the Verge of Becoming a Cryptocurrency Heaven

    Following the Royal Decree by Thailand’s regulatory authorities on May 14, 2018, that cryptocurrencies are formerly digital assets, the Asian nation is set to take its local blockchain-based digital currency industry to the next level by showing five Initial Coin Offering (ICO) projects the green light to operate in the area, out of the 50 startups that filed for approval.

    A Crypto Giant in the Making?

    The Thai Securities and Exchange Commission (SEC) is looking to register five ICO projects later in June when the cryptocurrency decree takes effect.

    According to the SEC director of equity finance Thawatchai Kiatkwankul, of the 50 firms that filed to launch their crypto-based fundraisers, only five meet the set standards of the SEC. As such they will fall under the regulatory watchdog’s approval.

    Amidst that backdrop, the SEC is looking to hire more staff and expand its operations to enable it to handle both Initial Public Offerings (IPOs) and ICOs.

    ICOs Must Have Real Use Cases

    While many startups have succeeded in developing products and services to solve real-life problems via the ICO route, the sad truth remains that there are a vast array of projects that have no real use cases but are merely interested in deceiving people with technical grammatical jargons and cart away with their funds.

    The regulator has also hinted on easing the rules governing crypto investments and transactions provided investors become more educated concerning the risks involved in the burgeoning industry.

    Bitcoin, Six Altcoins, 90-days Ultimatum, and Token Sale Information

    The Thai authority’s guidelines also entail that only seven established cryptocurrencies including bitcoinether, XRP, litecoin, stellar, ethereum classic and bitcoin cash could be used as trading pairs.

    With the latest development, the SEC has mandated all “stakehodlers” in its crypto space including exchanges, brokers, ICO organizers to endeavor to come under its umbrella within 90 days.

    Additionally, all market participants are required to seek approval from the Thai Finance Ministry before carrying out activities in the virtual currency industry. Interestingly the SEC has also made it clear that retail investors are not allowed to purchase ICO-generated tokens worth more than 300,000 baht ($9,000), while institutional investors and high net worth persons can pump in an unlimited amount of funds into any project. At a time when crypto-related businesses and digital currency exchanges are migrating to Malta due to the nation’s amenable regulation for cryptos, this latest move by the Thai authorities could also lure more blockchain startups to the region.

  • Bitcoin drops as South Korea moves to regulate cryptocurrency trading

    Bitcoin drops as South Korea moves to regulate cryptocurrency trading

    Currently, many cryptocurrency exchanges (including South Korean ones like Kucoin) allow trading with little more than your name and an email.

    Bitcoin appeared to find a bottom on Friday, rebounding to $15 000 after moves by South Korea to curb speculation and protect retail customers took the cryptocurrency down more than 8% on Thursday.

    “The government had warned several times that virtual coins cannot play a role as actual currency and could result in high losses due to excessive volatility”, the country’s government said in a statement.

    Those new regulations would include prohibiting anonymous trading accounts and could give authorities the ability to shut down exchanges, Reuters said. Among other concerns, unmasking bitcoin traders would open up owners to taxation, a significant concern now that bitcoin has increased in value exponentially. The virtual currency plunged more than 10% to below $14,000 on Thursday morning in Asia, according to CoinDesk.com, and continued to fluctuate through the day.

    As part of what appears to be a series of updates created to improve oversight of industry practices, the government will also seek to bar banks from issuing new virtual accounts to cryptocurrency exchanges.

    Mati Greenspan, a Tel Aviv-based analyst at investment firm eToro, said it would be too early to gauge the impact of the rules, but they sounded “ominous”. Demand is so high that prices for the unit are around 20 per cent higher than in the United States, its biggest market.

    The country is also home to Bithumb, one of the world’s biggest bitcoin exchanges.

    In comparison, about 11% of Americans polled by student loan comparison website LendEdu in September said they either now own or have owned virtual currencies in the past, while 17.2% said they would invest in bitcoin in the future.

    South Korea may also stop local companies from providing settlement services for virtual currency transactions.

    In a case highlighting the risks of cryptocurrency, a Seoul virtual currency exchange declared itself bankrupt last week after being hacked for the second time this year.

    So far, China is the only country in the world to have totally banned bitcoin exchanges.

    Seoul-based Youbit said it was filing for bankruptcy after hackers stole almost a fifth of its clients’ holdings.

  • Cryptocurrency Exchanges Investigated By South Korean Fair Trade Commission

    Cryptocurrency Exchanges Investigated By South Korean Fair Trade Commission

    The South Korean Fair Trade Commission (FTC) is reportedly investigating 13 major cryptocurrency exchanges in the country for violations of consumer laws, such as electronic commerce laws and contract laws. The investigations came after the bankruptcy announcement by cryptocurrency exchange Youbit after a major hack.

    The FTC said it will look into whether they should remain under the online retail business category, or fall under different category to enforce stronger measures. It will also check whether there is any unfairness among the terms and conditions used by the business operators and take action in accordance with relevant laws and regulations.

    The investigations is a follow-up on the government’s wide-ranging measures to curb cryptocurrency speculation and crimes. According to the government, previous inspections on crypto exchanges revealed that most of the companies (10 companies) demonstrated administrative and technical security procedures such as the installation and operation of access control devices and encryption measures of personal information. Overall, the measures were found to be inadequate.

    Last week, the Ministry of Science and Technology announced that Bithumb, Korbit, Coinone, and Upbit, which are among the 13 being investigated, are required to receive 2018 Information Security Management System (ISMS) certification, a system that certifies that the information protection system of companies with annual revenue of more than 10 billion won and average daily visitor of over 1 million is appropriate. They have also been urged to strengthen the security of their exchanges.

    Small and medium-sized crypto exchanges that are not required to meet this standard will be subject to the Personal Information Management System, an “autonomous certification system that assesses the comprehensive management system of collecting, using and destroying personal information of companies.” For these exchanges, the Korea Communications Commission (KCC) will be responsible, strengthening the protection of personal information. The Commission will also strictly enforce punitive fines and penalties for exchanges that violate related laws.

    The government also warned that cryptocurrency is not a “legal tender whose value is guaranteed by the central bank” and therefore its prices could fluctuate by a great deal and result in enormous losses.

  • Sophisticated investors are staying away from Bitcoin

    Sophisticated investors are staying away from Bitcoin

    Malaysia’s pension fund managers are not putting money into bitcoin, despite the digital currency’s recent stratospheric rise.

    Armed Forces Fund Board or Lembaga Tabung Angkatan Tentera (LTAT) chief executive officer Tan Sri Lodin Wok Kamaruddin told NST Business that bitcoin is a highly speculative investment, where the value does not necessary reflect its fundamentals.

    “We don’t have any intention to invest in bitcoin at all. We would prefer to confine our investment within the country where we can, to some extent, control the risk and investment better,” he said in a telephone interview.

    He said the government statutory body would not take the risk in such kind of investment it has at its disposal.

    “Since Bank Negara Malaysia (BNM) deems it as illegal, we certainly would not want to have anything to do with it. I think it is something that the public should refrain from getting involved with their hard-earned money,” he added.

    Lodin said LTAT is currently managing about RM9 billion worth of armed forces retirement money.

    “We have got quite a fair distribution of our assets in different sectors, especially those which are in line with the government’s economic development programme such as infrastructure, property development, plantation and ship-building as well as retail operations like BH Petrol,” he said.

    Lodin said presently LTAT does not plan to invest abroad.

    “No doubt in some cases, investing abroad may be more attractive but at the same time the risk is higher such as currency and politics. At least, if it is within the country, we could mitigate these risks,” he said, adding that LTAT able to pay on the average of 11 per cent dividend annually to contributors.

    In a separate meeting with the Employees Provident Fund (EPF), its chief executive officer Datuk Shahril Ridza Ridzuan said cryptocurrencies such as bitcoin have no intrinsic value and donot provide any kind of actual asset yield. Therefore, it is very hard to invest in it.

    “Cryptocurrency is effectively buying something with the hope of selling it to someone else for a higher price,” he said.

    Shahril Ridza said the speculative element in the returns profile is too great for a fund like EPF, where it focuses on generating actual returns on assets.

    IQI Global chief economist Shan Saeed concurred, saying bitcoin has no sustainable value and none of the global central banks approved it.

    “Nobody has approved bitcoin as a mode of (payment) instrument. Although people are buying, the price is likely to crash. It is a fancy item with no fundamentals,” he said.

    Shan advised investors in Malaysia to stay away from Bitcoin, saying that the chances of losing money are fairly high.

    “Recently the United Kingdom regulators have warned investors to stay away from bitcoin. I’m not in favour of bitcoin because it is a virtual currency. It’s not even worth looking at,” he said.

    Shan said bitcoin is not secured without regulators’ approval, and it is a perfect example how the bubble could burst.

    “The incredible rise of bitcoin over the last few weeks has all the hallmarks of a major topping action when a speculative asset in the final euphoric stages of a big bubble formation makes some unsustainable huge price jumps,” he said.

    He said bitcoin should soon witness a final blow off with one last giant spike higher on huge volume followed by a major price reversal on the same day.

    The Retirement Fund Inc (KWAP) chief executive officer Datuk Wan Kamaruzaman Wan Ahmad recently said cryptocurrency is not the type of risk it can take.

    “We are not invested in cryptocurrency because we prefer to only take moderate risks. However, we do personally monitor the movement of the Bitcoin’s trends,” he said in a recent interview with BFM.

    He added that KWAP has always aimed for more stable investment, with slightly above a double-digit return to its shareholders.

    Last week, Bank Negara announced that Malaysia had recorded RM75 million transactions monthly from four digital currency exchanges in the country.

    Its deputy governor Abdul Rasheed Ghaffour said digital currency exchanges here providing the services were Luno, CoinHako, XBit Asia and PinkExchange.

    He said Bank Negara would meet cryptocurrency exchanges this week, noting that the global market capitalisation of digital currency stood at US$420 billion.

    He said while digital currencies were not legal tender in Malaysia, the central bank was not stopping their trading because “a ban would curb innovation and creativity.”

    In an AFP report quoting investment firm deVere Group chief executive officer Nigel Green, bitcoin started the year at US$1,000 per unit in January. By mid-December, it had shot to within striking distance of US$20,000, a dizzying climb that stoked fears of a bubble even in financial circles used to speculation and volatility.

    Bitcoin was created in 2009, since then, it has become the world’s decentralised cryptocurrency.

  • Bitcoin transactions remain illegal in Vietnam

    Bitcoin transactions remain illegal in Vietnam

    The only payment methods allowed in the country are issued or controlled by the State Bank. Cryptocurrencies such as Bitcoin remain illegal in Vietnam, the State Bank affirmed in a statement released on Saturday.

    “From January 1, 2018, the act of issuing, supplying or using illegal means of payment may be subject to prosecution in accordance with the provisions of Article 206 of the Penal Code 2015,” the statement said.

    The only payment methods allowed in the country are issued or controlled by the State Bank.

    People who attempt to use illegal means of payment will be subject to a fine ranging from $6,600-9,000.

    Earlier this week, Vietnam’s top technology university FPT announced plans to allow students to pay for their tuition fees using Bitcoin.

    Some service providers have already started accepting Bitcoin and other cryptocurrencies in Vietnam, but they are mostly used for trading and speculation on the free market.

    The central bank has warned organizations and individuals in Vietnam not to invest in Bitcoins or conduct transactions in the currency, saying they would be taking a huge risk with no legal protection.

    “Bitcoin transactions are anonymous and can be used for money laundering, drug trafficking, tax evasion and illegal payments,” the bank claimed.

  • Vietnamese tech university to accept controversial Bitcoins for tuition fees

    Vietnamese tech university to accept controversial Bitcoins for tuition fees

    Experts say the decision is risky for both the school and its students as Vietnam has yet to legalize the crypto-currency.

    Vietnam’s top technology university FPT has raised eyebrows by announcing plans to allow students to use Bitcoins to pay for their tuition fees at a time when the country is still groping for ways to manage the virtual money.

    Le Truong Tung, the university chairman, has confirmed the plan, saying FPT University will allow foreign students to use Bitcoins first.

    Tung said in a Facebook comment following his post that the digital currency is a feasible solution for students from Africa because they always face difficulties transferring money out of their countries.

    But critics of the move say it may pit FPT against the government because Vietnam is yet to recognize Bitcoins as legal currency.In an interview with Tuoi Tre (Youth) newspaper on Friday, he said Bitcoin is a technology product and as a tech university in the age of Industry 4.0, FPT sees it necessary to try using the digital currency.

    Others were worried that the regulation will encourage FPT students to spend most of their time and efforts mining Bitcoins, a process that experts have warned is very risky.

    For now, Bitcoins will remain illegal in Vietnam, according to the central bank, but the government is looking to manage the virtual money through a new legal framework.

    Several government ministries and the central bank have been tasked with drawing up such framework by the end of next year, and tax policies for cryptocurrencies must be finalized by June 2019.

    Since news of this legal framework was released, Bitcoin has become more attractive in Vietnam, with computer component providers saying they have ran out of graphics cards due to the increasing demand for Bitcoin hardware.

    As explained by Business Insider and Investopedia, the process of mining Bitcoins involves miners solving complex mathematical problems, and the reward is more Bitcoins generated and awarded to them.

    Bitcoin’s value has been on the rise since early this year, hitting a new all-time high by breaking $6,000 last week.

    Yet financial expert Nguyen Tri Hieu told VnExpress earlier that investing in Bitcoins at this time is a bold move because miners may face legal action or risk going broke as it is possible that the latest price rise in Bitcoins is a speculative bubble.

    In late May, nearly $4 billion was wiped off of the value of Bitcoin in just four days after a correction that saw the cryptocurrency’s price fall almost 19 percent to $2,260.

    The central bank has warned organizations and individuals in Vietnam not to invest in Bitcoins or conduct transactions in the currency, saying they would be taking a huge risk with no legal protection.

  • NBTC sort of maybe bans Pokemon Go

    NBTC sort of maybe bans Pokemon Go

    Thailand’s National Broadcasting and Telecommunications Commission announced it would not ban Pokemon Go, then went straight ahead and asked Niantic for a de facto ban in practice anyway.

    NBTC Secretary General Takorn Tantasit held a press conference where he showed media the list of Pokemon-free zones he would demand from Niantic.

    This is the first time since Pokemon Go was launched that the NBTC correctly attributed Niantic to the hit game. All previous mentions by the telecoms regulator mis-credited Nintendo of Japan.

    The NBTC has ordered Niantic to, “remove Pokestops and not release Pokemon in the following areas: Dangerous areas – footpaths, railroads, railway, canal bank; religious places, temples, pagodas; schools and hospital; government and military buildings / properties; private places.”

    The NBTC also asked Niantic to ban all Pokemon in Thailand at night for safety reasons.

    It did not take long for social media to erupt in a storm of frustration and disbelief and point out the obvious that nobody in the NBTC had a clue how the game actually worked.

    Since Pokestops have a 40-meter radius (more for Pokemon themselves), banning Pokemon Go from the NBTC Secretary-General’s list would effectively be a total ban on Pokemon in Thailand except in royal palaces and the middle of safe, dry public parks.

    Nor did the NBTC’s letter mention Pokemon Gyms (where Pokemon battles are held).

    Adding to the confusion TrueMove has reiterated that it and it alone holds the rights to a forthcoming localized version of Pokemon Go and has already lined up 60 to 80 advertisers.

    True’s head of content Birathon Kasemsri told reporters that under Niantic’s contract with the Pokemon Company, Niantic would have to create a localized version of Pokemon Go exclusively for TrueMove.

    He said that True expected huge profits from advertising on everything from Pokeballs and items to clothing for the Pokemon Trainer avatars.

    Birathon said that the launch was still many months out as Niantic was still concentrating on the global launch of the game.

    Niantic did not respond to emails asking for clarification on the matter.