Companies in China Are Claiming to Use Blockchain Technology to Improve Stock Prices

  • Only 40 companies in China can definitively prove that they are involved with blockchain technology as they advertise.
  • Chinese president Xi Jinping recently voiced encouragement for the country to pursue the development of blockchain technology.

Blockchain technology is one of the biggest forms of fintech to arise in recent years, and many people want to use it in their own businesses to improve customer experience, organization, and more. However, it seems that some companies in China believe that its easier to claim the use of blockchain technology than to actually use it. Multiple companies are reportedly stating that they are looking into blockchain technology, but there’s no actual proof that they are, according to The Block.

A Chinese publication called Global Times stated that a warning has already been issued by the Xinhua News Agency, stating that companies are claiming that they’ve adopted the blockchain technology, but nothing could be further from the truth. With over 3,000 listed companies, there are 500 companies saying that they are involved with blockchain. Presently, there are only 40 companies that have been able to prove it.

One of the most high-profile news programs in China – Focus Report – recently released an episode that shed light on the fraud found in the blockchain and cryptocurrency industry in China. The episode was called “Blockchain is not an ATM Machine,” exploring the way that blockchain is misused in an effort for companies to “further their money-grabbing schemes.”

Presently, according to China’s National Internet Emergency Center, the market presently has 755 tokens without any real initiatives backing them or that reached zero after they were created. CNCERT also discovered that Ponzi schemes accounted for 102 coins. By November 15th, a total of 566 legal rulings involving blockchain have been recorded, which is a record high that is only made worse by being involved with digital currency.

Blockchain technology has been a priority in China since President Xi Jinping stated that China should focus on increasing its development. While the president has praised blockchain technology, the official stance of the country on cryptocurrency is still not clear. Ever since the Chinese government has been taking an aggressive stance on illegal token issuing and financial fraud involving cryptocurrency, which started in September 2017, there has been a lot of anxiety over initial coin offerings.

During the episode, Focus Report stated, “We should vigorously push for blockchain technology’s application in trade finance, public services, and other fields, but we shouldn’t allow frauds or the encircling of money in the name of blockchain. Relevant departments need to strengthen their regulations in the space and the public need to keep their eyes wide open for fraudulent activities.”

Dong Shaopeng, an adviser with the China Securities Regulatory Commission, stated that the companies found with these claims could end up dealing with major reprimands from the stock exchanges they are listed on. Some of these reprimands include fines or even being delisted.

As more countries and companies recognize the benefits that blockchain technology offers, it has found many use cases outside of the cryptocurrency industry. However, despite the many companies that advertise its use, recent research shows how misleading these claims actually are.

Read Original/a>
Author: Krystle M

Monex Ventures into the US Crypto Market Through Its TradeStation Crypto Subsidiary

A subsidiary of Monex Group, a financial service company based in Japan, TradeStation Group will be launching in the United States as a crypto brokerage company. TradeStation Crypto enters the U.S market to address the current weaknesses and concerns in the crypto ecosystem.

Monex Group has gathered brokerage expertise over the last 18 years since its launch in 2001. The company has been registered in each state to operate a money service enterprise, Money Transmittal License, a platform that will support fiat/crypto and crypto/crypto trading pairs.

Initially, TradeStation Crypto will only support five digital currencies, among them being Litecoin (LTC), Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and Bitcoin Cash (BCH). However, the brokerage company will soon add other crypto digital assets for their customers to trade-in.

TradeStation Crypto exchange platform is based on global integrations that create a large pool of liquidity. With a large liquidity source, the company will be in a position to discover better prices and at the same time, enhance transparency. The company also goes the extra mile to help its clients avoid the long transaction processes associated with the traditional exchanges.

With TradeStation Crypto, investors will not have to pay fees for large volume trades like is the case with other platforms.

“TradeStation Crypto is not just an ordinary crypto exchange like any other. The company focuses on integrating an order-routing system with multiple liquidity pools to offer its clients a better trade execution and visibility.”

The Crypto exchange is an ideal platform for cryptocurrency trading by institutional investors. The platform facilitates secure market data aggregation, execution algos, back-testing, and execution strategies.

Monex has developed a diversified worldwide crypto brokerage portfolio in the cryptocurrency industry. At the beginning of the year, the company launched a crypto unit with the purpose of studying available opportunities in the industry.

Monex targets Institutional investors in the U.S market. The company is planning to develop a firm grip of the cryptocurrency market by building on the over2,000,000 accounts trading in the exchange.

Read Original/a>
Author: Denis Miriti

Mike Novogratz Has a Theory About How Institutions Enter the Bitcoin Ecosystem

Mike Novogratz wants Bitcoin to be successful. This is no secret, as he owns Galaxy Digital, a company that offers crypto investments to wealthy people. Now he has a theory on how to get more institutions investing in the asset. He believes that targetting to wealthiest of all Americans, the baby boomers are a good idea.

According to the CEO of Galaxy Digital, elderly people tend to shy away from assets that are considered more speculative, which is why they are not so eager to invest in Bitcoin as Millenials, for instance. Now, he wants to change that with his new products, two crypto funds that cater to these specific investors.

A new piece of research made by CoinRadar shows that over 70% of all people with 55 years or more don’t really own Bitcoin or want to do it. As they hold most of the money and the current generation is at least 12 times poorer than them, they are the most interesting investors for companies such as Galaxy Digital.

Novogratz understands that a lot of billionaires are into crypto right now and believes that more Wall Street investors will move into this new market, but to him, the main point is to get baby boomers more interested in Bitcoin.

It is important to understand their realities and how they can be interested in the asset. This way, a whole new way of investments will be open to the company and these two new funds that were created are just the first step for that.

Read Original/a>
Author: Gabriel Machado

Eastern Metal Securities Fraudster Gets Extradited from Thailand for Having Victimized Investors of Over $11 Million in BTC

On Monday, November 18, 2019, the U.S. Department of Justice (DOJ) reported on a case that involved victimizing investors. In particular, it was found that Swedish Citizen, Roger Nils-Jonas Karlsson and his firm, Eastern Metal Securities, were able to trick investors of $11 million combined.

Having arrested the fraudster in June 17, 2019, the original complaint was supposedly filed months earlier (i.e. March 4, 2019). Apparently, he has been defrauding investors as early as 2006, where he alongside individuals including Steve Heyden, Euclid Deodoris, Joshua Millard and many others, used websites to advertise shares, one example being their “Pre-Funded Reversed Pension Plan”.

The aforementioned plan was sold at $98 per share “in exchange for an eventual payout of 1.15kg of gold per share.” To keep investors’ confidence boosted, Karlson had guaranteed 97 percent return on initial investments if the gold payout was not achieved.

Since the investigation took place, the government looked into Karlsson’s case only to find that there was no way that the culprit would be able to pay such a return. Said amounts Karlsson was able to raise was supposedly sent to his personal account, where all funds were then spent on real estate in Thailand.

This isn’t a first for him, as he was supposedly involved in another website called www.hci25.com – attempting at luring in more investors a second time. When he was asked about payouts from some investors, he simply responded that it would have, “a negative effect on financial systems throughout the world.”

As for the investments made by investors, Karlsson supposedly advised said individuals to make payments in Bitcoin. So far, his endeavor resulted in nearly 3,575 victims.

This isn’t the first case of its kind, as just last week, OneCoin’s Founder was caught taking part in fraud and money laundering-related activities with a non-existing crypto, and the most recent RECoin and Diamond creator, who was involved in two fake initial coin offerings. Both cases led to swiping hundreds of thousands and millions from investors. This goes to show that fraudulent cases are surely to be caught one way or another!

Read Original/a>
Author: Nirmala Velupillai

Supreme Court of India Holds Crypto Hearing Regarding the Reserve Bank of India (RBI) Restrictions

According to a report by Bitcoin.com, a crypto hearing was held by the Supreme Court of India. The hearing was over writ petitions challenging restrictions on banking by the Reserve Bank of India.

Although the hearing was scheduled for Tuesday, it took place on Monday at the order of the senior counsel, which placed the hearing at the top of the board. This means that the case will be heard that day.

In any case, the hearing was over the Reserve Bank of India’s circular issued last April that prohibited financial institutions from providing cryptocurrency businesses with banking services. As a result, banks ceased providing services to crypto businesses and closed their accounts. Industry stakeholders then filed a petition to challenge the ban.

In addition to the court case, the legislature appears to be making headway concerning crypto. India’s legislature issued a draft crypto bill. The draft, included in a report issued by the Garg committee, is titled Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019. The bill is an updated version of another bill. It includes prohibitions concerning cryptocurrency and offenses.

Subhash Chandra Garg of the Garg Committee tweeted about the report, stating that the committee is very receptive of distributed ledger technologies and recommended widespread use in delivering financial services. Further, he added that private cryptocurrencies are of no real value and are rightly banned.

It appears that although there is support for a digital rupee, private cryptocurrencies do not have the same support and are thought to be valueless. According to a report by Bitcoin.com, the same position was taken by the report, which found that there is no fixed nominal value concerning private cryptocurrencies, they have no store of value, and they are not a medium of exchange.

Read Original/a>
Author: Lillian Peter

Deutsche Boerse and Swisscom Settle Securities Use Corda and Hyperledger Blockchain Protocols

Deutsche Boerse and Swisscom, the German securities marketplace and Swiss telecom that’s run by the state, have just settled security transactions via blockchain protocols.

On November 19th, Deutsche Boerse made an official announcement that it initiated a proof-of-concept (PoC) with Swisscom. The PoC involved a few banks and had participants exchanging money as tokens and against tokenized shares.

This joint PoC is blockchain-based and meant to show how much potential new technologies bring when it comes to financial services. More than this, it keeps Germany and Switzerland active in the space of digital assets.

The Joint PoC Had Three of the Most Important Swiss Banks Participating

The banks involved in the PoC were among the major ones in Switzerland, such as Zuercher Kantonalbank, Falcon Private Bank and Vontobel.

They all acted as counterparties and exchanged securities tokens against cash ones. The Swiss National Bank was also indirectly involved, seeing the cash tokens have been deposited as collateral in its Eurex Clearing account. Deutsche Boerse provided Swiss francs cash tokens.

The Cross-Chain Secure Settlement Used Corda and Hyperledger

For the cash and securities tokens to be processed, the participants in the PoC deployed Corda from R3 and Hyperledger Fabric from IBM distributed ledger technologies (DLT), completing the cross-chain security settlement. Some other participants partnered up with the blockchain company Daura and with Custodigit, which is a venture held in custody by Sygnum and Swisscom.

Deutsche Boerse noted that all firms provided digital share registry core elements for the PoC. This initiative is another breakthrough in the blockchain-based collaboration between Deutsche Boerse and Swisscom.

The two companies partnered up with Sygnum, the fintech firm based in Singapore, earlier this year. The aim of this partnership is to develop a proper infrastructure for the digital assets financial market.

Read Original/a>
Author: Oana Ularu

China’s Cashless Payments Push is a Testimony that Bitcoin Will Succeed

China is racing ahead in becoming a fully digitized economy, which explains why it will soon have to adopt Bitcoin and other digital assets in order to cope with the upcoming nature of its economy.

It is apparent that China is becoming a blockchain-friendly nation. and warming up to new technologies in a quest to get ahead of its closest competitors. It also believes in order to enhance state foundations they will need to be on board with Blockchains technology.

In the past few years, the economy of China has witnessed notable progress on cashless payments delivered by tech-based companies in the country such as Alipay and Weibo among others. Consequently, it’s possible to purchase nearly anything with a Smartphone. A report by Bloomberg revealed that the big jump occurred between 2015 and 2016 during which transaction values for digital payments in China rose by a whopping 382 percent. Currently, the country has so far embraced cashless payments as the norm.

What Does it Mean for Bitcoin?

With universal adoption of cashless payments, Bitcoin and other digital assets are likely to get a boost. The implementation of cashless payment is in line with the crypto industry’s initial goal, which was to encourage peer-to-peer settlements without irregular banking procedures.

Since China is already using cashless payment system without cryptocurrencies, it’s quite likely that the country will incorporate digital money into the existing systems. Against that backdrop, many tech giants in the country such as Alibaba are investing heavily on blockchain. Currently, China controls 2/3rds of all blockchain-based patents worldwide.

China is Ahead With Fintech Infrastructure

While everyone else is striving to incorporate cryptocurrencies in their systems, China’s fintech infrastructure is already mature. This puts the country in a better situation to simply plug cryptocurrencies into their existing models. This would lead to faster and easier adoption.

Judging by President Xi Jinping’s recent remarks, the government seems skeptic about cryptocurrency but warming up to blockchain technology. However, the country will soon realize that cryptocurrency is part of blockchain and one cannot exist effectively without the other.

Read Original/a>
Author: Hank Klinger

Binance ‘Heisenberg’ Mainnet Hardfork Activation Scheduled for November 28, 2019

The Binance hardfork upgrade is scheduled for the 28th of November following the successful Heisenberg testnet. Validators within the Binance ecosystem have agreed on block height 51,467,800 as the perfect time to execute this milestone.

Binance through its official blog noted that once the hardfork is complete full node facilitators and validators will have to upgrade their software to v 0.6.3. This will however not be necessary for the Binance exchange and BNB token users according to the blog;

“If you use any exchanges which support BNB [such as Binance.com, BitMax or Gate.io], one of the wallets, or a hardware wallet [such as Ledger, Cool Wallet], you do not need to do anything unless your exchange or wallet service specifies otherwise. There are no changes to Binance DEX matching engine logic.”

Binance Hardfork Upgrade Features

The new upgrade will increase the scope of Business that Binance chain can handle through blockchain logic. In addition, the performance for addresses within Binance’s ecosystem will be enhanced to deliver as per the current market standards. Binance is also looking to gain on Lot-size enhancements with the new upgrade; BNB tokens will be used for this calculation. Finally, the new Binance chain will allow for both quote asset and base asset owners to list transactions within its network.

Earlier on, Binance had published a report that detailed this update and a couple of other WIP’s. The Decentralized Exchange project also highlighted that they had approved over 10 proposals to commence operations within its DEX with 2 more in the pipeline.

Read Original/a>
Author: Lujan Odera

Bison Trails Blockchain Protocol, a Libra Association Member, Secures $25.5 Million in Funding

Bison Trails, a member of The Libra Foundation and blockchain protocol provider, raised $25.5 million in Series A funding.

The round was led by the venture company Blockchain Capital. Other companies that participated in the funding round were Coinbase Ventures, ConsenSys, Kleiner Perkins, A Capital, Sound Ventures and Collaborative Fund.

Bison Trails Raises $25.5 Million

The company was able to secure $25.5 million in order to expand its current blockchain infrastructure offerings for clients. The firm decided not to share further financial terms of this deal.

The Facebook Libra Association was created by Facebook and other financial technology companies around the world in order to be part of the new Libra cryptocurrency ecosystem.

The startup is currently helping customers deploy nodes on different blockchain networks without having to create their own infrastructure and protocol engineering competencies.

Many firms are already entering the blockchain market and there is a higher demand for services related to the industry. Companies such as Bison Trails are expected to play a more prominent role in helping the sector expand.

According to the CEO of the company Joe Lallouz, the firm will contribute to building the new system with Facebook.

Although there is a large interest in the new crypto asset Libra, which is planned to be launched in 2020, regulators around the world have already warned about the effects this cryptocurrency could have in the world economy. At the time of writing this article, the firm is helping more than 20 different protocol projects handle their blockchain initiatives.

In this way, the firms do not have to invest financial resources and time in setting up specific in-house security and infrastructure for their distributed ledger technology (DLT) projects.

Until now, the firm’s total funding surpassed $31 million. Although in the future they could raise more funds, the company didn’t provide information about it.

Read Original/a>
Author: Carl T

Canada’s Einstein Exchange Allegedly Lost $12.1 Million in User Funds, Has Under $50K to Repay Users

According to Global News, a Canadian crypto exchange that got shut down this month for supposedly stealing CAD$16 million, which is $12.1 million, in user funds seems to only have $45,000 worth of hard assets. Einstein Exchange was shut down by the B.C. Securities Commission (BCSC) after customers filed complaints that they can’t access their crypto assets and cash.

Grant Thornton Limited has been appointed to seize the cryptocurrency exchange’s assets and to return users the funds they were missing. These funds were Bitcoin (BTC) cryptocurrency, as the BCSC documents say.

Einstein Exchange Doesn’t Can’t Pay Back Users

A filing from the British Columbia Supreme Court was published yesterday. It says Grant Thornton found out that Einstein Exchange has only about $30,000 in cash and $15,000 in cryptocurrency. Director Michael Ongun Gokturk has incorporated the exchange during the Bitcoin’s bull run from December 2017.

In May 2019, BCSC had started to investigate the exchange’s customer complaints. Grant Thornton has notified the US and Canadian banks where Gokturk and Einstein Exchange have made deposits and investments or had shares in the private sector.

Exchange Says it Owes Clients $10 Million or Less

Gokturk didn’t comment or respond to the allegations in the BCSC case against Einstein Exchange. According to a report, the Einstein Group has informed Grant Thornton that it thinks its clients are owed somewhere between $8 and $10 million.

It also says the deficit is the result of bank draft and credit card frauds, with the loss being almost entirely made up of crypto assets. It’s believed Einstein Exchange has served around 200,000 people from all over the world. However, Grant Thornton has only heard from somewhere in between 200 and 300 users so far. This doesn’t mean more complaints won’t still be filed.

Read Original/a>
Author: Oana Ularu