New Annual Licensing Crypto Mining Regulations Proposed by Cabinet of Iran

The Iranian government set to introduce new cryptocurrencies mining regulations in a new draft proposal sent from the Cabinet of Iran, as reported by Coindesk in exclusive reports from Tehran.

The new draft proposes an annual license for cryptocurrency miners and expects these miners to provide information on their business activities, their employment and rental status and a list of other mining-related information. The directive, which locals say is close to official approval, will require miners to provide the value of their mining equipment, value derived from mining and the period of mining.

A Conflicted Proposal to Miners

For the better part of the last two years, the Iranian government has shown increased interest in regulating the crypto mining industry to provide a cushion from the sanctions by the US government.

An unnamed Bitcoiner in the country sees this an opportunity by the government to create a stable mining industry. How exactly? One respondent speaking to Coindesk anonymously explained the role of the government saying,

“It’s obvious that the power industry here in Iran, it’s not a private business, it’s from the government.”

Some of the benefits include standardizing the mining operations to control the power usage to prevent harming the power grids, the Iranian respondent said.

“If there’s a constant, a continuous consumption of electricity you can also make new power plants or assign power plants to this.”

However, a number of cryptocurrency miners remain disgruntled and more are expected to use illegal ways to mine Bitcoin and obtain mining equipment.

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Author: Lujan Odera

SWIFT Rep Calls Crypto Useless Because Of Volatility But Facebook-led Libra Could Disrupt Payments

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has recently talked about cryptocurrencies. According to the organization, cryptocurrencies are useless because they are too unstable.

SWIFT representatives claimed that the value of Bitcoin and other cryptos goes down like a yoyo, which makes it untrustworthy. They believe that even if some crypto companies can make a more stable investment, it is because they offer a basket of currencies.

The members of the group also affirmed that they do not feel threatened by cryptos, but they are fairly aware of their issues. For instance, they recognize that SWIFT payments can take a lot of time.

However, despite being aware of all these issues with efficiency, the group does not feel threatened by SWIFT. Even solutions such as Ripple’s xRapid, which basically can do the same that SWIFT does now, is not recognized as a threat, at least publicly.

Curiously, the main rival that was actually recognized by SWIFT is Libra, the new stablecoin created by Facebook. The new crypto-like currency will be used on WhatsApp, Facebook Messenger and Instagram and it will reach the 2.7 billion user base of Facebook if the project is approved in the whole world.

Despite these concerns, however, SWIFT believes that the impact of the new Libra initiative can be limited. Facebook is facing a lot of scrutiny around its plans and the regulators do not seem very eager to approve its new token, so this might mean that the market may not be so affected if some countries decide not to accept the new token.

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Author: Gabriel Machado

Stablecoins Pegged Against Foreign Currency Could Affect Swiss Monetary Policy: Central Bank President

Many regulators and heads of financial institutions have expressed concern over cryptocurrencies and their use. Crypto assets come with many challenges that place financial institutions in an awkward position as far as dealing with digital assets goes.

Thomas Jordan, the president of the Swiss National Bank, said that stablecoins pegged to fiat foreign currencies could place Switzerland’s monetary policy in jeopardy. The bank’s president made this statement at the University of Basel on the 5th of September.

The Volatility of Crypto Assets

Jordan said that cryptocurrencies have limited use as a payment method, units of account, or stores of value. Cryptocurrencies are volatile and prone to fluctuations, and this affects their ability to perform those functions according to Jordan.

In his description of cryptocurrencies, Jordan said that they are speculative investment instruments and they cannot be equated to good money. People who use financial systems describe a unit of value as good if it maintains a stable value over time, if it enables easy and efficient payments, and if it is accepted by many people across the world. If these lines of definition are applied to cryptocurrencies, one can see that it is unlikely that they will be used as money in Switzerland said Jordan.

Foreign Currency Pegged Stablecoins

Some stablecoins are pegged to fiat currencies such as the USD, and these may come into use in Switzerland. Jordan said that if these kinds of stablecoins made their way into Switzerland’s system, they could impair the country’s entire monetary policy.

A stablecoin backed by the Swiss franc would have no immediate effect on the country’s monetary policy but problems come from ones pegged on foreign currency. Swiss National Bank’s president said that giving the public access to a digital currency issued by the central bank could eventually cause a bank run, and this would then threaten the country’s financial systems.

A Hub for Crypto Development

Favorable regulations and an enabling environment have made Switzerland a welcoming environment for crypto-related businesses. Many crypto companies have set base in the country, and they are running a variety of blockchain and crypto projects.

Facebook placed the headquarters for its project Libra in Switzerland and authorities in the country have put the project under scrutiny. The country’s central bank is working closely with relevant authorities to ensure that Libra is compliant with the country’s regulations. The central bank’s chairman, Fritz Zurbruegg, said that it is difficult to provide a complete analysis of Libra because the documents about the project are vague.

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Author: Ali Raza

Wealthy High-Net Worth Indians Consider Cryptocurrency For Their Investment Portfolios

Cryptocurrencies are becoming more popular around the world as more investors gain knowledge about the digital assets and the benefits they come with.

The development of various applications for cryptocurrency has placed them as a viable option on investment markets as the digital assets angle for mainstream adoption.

Cryptocurrency as an Investment Option

A recent study by Huru India revealed that there is a growing number of wealthy Indians that are interested in placing their investments in cryptocurrencies. About 10% of the surveyed individuals said that they are considering investing in cryptocurrencies in the near future.

This number makes cryptocurrency the fourth most preferred investment class, and given that these assets are relatively new on the market, it shows that they have made strides in gaining popularity among investors.

Most investors said that they would place their funds in real estate. Property remains the most attractive investment, and it is preferred because it is safe and maintains value over time. Stock and fixed income assets make the second and third places in terms of preferred investments as wealthy individuals prefer these traditional forms of investment.

It is worth noting that half of the surveyed individuals did not have a clue about what cryptocurrencies are.

Bitcoin remains a Top Investment option among Crypto Assets

The word cryptocurrency is usually associated with Bitcoin, and it isn’t without reason. The survey showed that individuals who are knowledgeable about cryptocurrency would pick Bitcoin as the digital asset they place their investment in.

30% of the respondents say that they would go for Bitcoin while 9% said that they would prefer Ethereum. 7% of the surveyed group said that they would go for XRP, which is one of the fastest-growing crypto assets on the market.

Bitcoin’s dominance over other cryptocurrencies has been going on for years as the leading cryptocurrency remains the most valuable crypto asset. As money markets experience low volatility, many investors are moving their funds into Bitcoin as they consider the cryptocurrency as a safe haven asset. Bitcoin’s desirability has driven its price to new heights, and crypto markets as a whole have benefited from this.

Indian Regulators and Cryptocurrency

India has one of the biggest crypto communities in the world, but the country’s authorities have expressed negativity towards cryptocurrencies.

The central bank of India ordered all financial institutions in the country to not engage in business with crypto related businesses. The government is considering a bill that would make crypto trading illegal in the country.

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Author: Ali Raza

Circle Consortium’s CEO Warns About China’s Digital Currency Bypassing The Western Banking System

When we think of China’s progress in adopting cryptocurrencies, we think of a country implementing a blanket ban. We might be forced to think that they haven’t made much progress in the ecosystem, but Jeremy Allaire from Circle begs to differ. As a matter of fact, he goes on to warn that the US is lagging behind in implementing national crypto, which might give an opportunity to China to change the way Western companies transfer payments.

Jeremy is the co-founder, Chairman, and CEO of Circle, a global crypto financial services company that provides individuals, institutions and entrepreneurs with a platform to invest in, store, trade and use digital assets, and raise capital through online securities offerings.

One of the leading reasons for China to develop its own national cryptocurrency is the US tariff war. The media also associates China’s decision to create its state digital money to the active promotion of Facebook’s Libra cryptocurrency.

In July, Wang Xin, head of the PBoC Research Bureau, said that Libra threatens the international monetary system and countries should develop their digital currency to prevent the negative economic consequences. Other authorities expressed the need to strengthen the national currency through the issuance of digital money.

Allaire said:

“[Circle] also believes that the major reserve currencies of the world, the major trade currencies of the world, would become digital currencies. A digital currency version of renminbi that runs on software platforms that can be run over the internet, it really creates an opportunity for China and Chinese companies . . . and bypass the western banking system.”

With this digital asset, the government could have more control over its financial system. China is a centralized country that controls its citizens and is at all-times trying not to lose the power it has over its nationals.

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Author: Sritanshu Sinha

Graychain Report Shows Crypto Lenders Earned Under 2% On $4.7 Billion Worth of Loans

Cryptocurrencies are bringing a revolution to the world but if you want to use them in order to profit from loans, we have bad news for you. According to a new report made by Graychain, a crypto credit assessment company, $4.7 billion USD has been lent in the crypto industry up until this point. However, the returns from that are only 1.8%.

Borrowers generally get at least 6 to 10% returns on investments per year, so a profit of only 2% is meaningless. Inflation is higher than that in most countries.

The CTO of Graychain, Neil Zumwalde, has said that most companies are actually lending money for very short periods when compared to more traditional loans. Also, it is easier to make it look like the loans are more profitable when you look at their originations only.

He said that the company gathered data from several companies such as Dharma, Compound, Unchained, and Maker in order to make the study. Some companies such as Genesis and Celsius, however, are less prone to offer information and can keep it private. Without this private information, the numbers can be slightly different from the reality.

According to the executive, the market is growing fast. As the industry is maturing, more opportunities are appearing and more loans are being made.

Part of the reason why the profit is so low is that cryptos are volatile and because some of them are very short. As prices change all the time and nobody wants to lose money, people often don’t hold the money long enough.

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Author: Gabriel Machado

Ripple’s Open To Being Compliant To Regulators; XRP Is Technically Bullish But Why Are Prices Tepid?

Ripples-Open-To-Being-Compliant-To-Regulators-XRP-Is-Technically-Bullish-But-Why-Are-Prices-Tepid

Today’s Ripple (XRP) News

A lot has been said about cryptocurrencies, their future and what’s not. Well, the fact is, blockchain as a technology is here to stay. Unfortunately for no-coiners and bashers, the sector will only flourish with time as an ingredient.

On the other plane, cryptocurrencies, including Ripple (XRP), would most likely be better regulated and exchanges’ propensity to manipulate prices tamed. It may take years, but overly, there is a high probability that it will happen. It’s only a matter of when.

To that end, a few hours before the Senate Banking Committee hearing, discussing the way to better regulate cryptocurrencies and other blockchain applications, Brad Garlinghouse and the Chairman of the blockchain payment firm, wrote a letter appealing to Congress not to paint the industry in what they termed as a “broad brush.”

After public criticism from Donald Trump and later the Secretary of Treasury, Steven Mnuchin, the community even speculated that the world’s largest economy may be on their path of banning cryptocurrencies and crushing innovation.

Well, even if they would, they can’t because of the decentralized nature of these use cases. That’s what Crapo, the chairman of the Senate Banking Committee said. It’s a reality that they had to face, and besides, blanket ban of cryptocurrencies is but an illegality. Expression, speech or technology wise, is under the protection of the First Amendment, analysts and lawyers assert.

Encouragingly, Ripple (XRP) as startup, is not really against any law/guidance. In their open letter, they admitted that the government is “well suited for their job,” and through their efforts there is trust, leading to the acceptability of any currency. Ripple, Brad Garlinghouse the CEO insists, is compliant and ready to work with regulators.

XRP/USD Price Analysis

Ripple XRP

Presently, XRP is steady, trending horizontally with caps at 34 cents. Technically bullish in the sense that the coin is largely consolidating inside the leading bull bar of Sep 2018, buyers have a chance from an effort versus result point of view.

Therefore, while bears may be pressing lower, preventing bulls from rising from these pits, every low should, nonetheless, be a buying opportunity for enterprising, risk-off traders. To that end, a fitting stop will be just below 30 cents with immediate target at 34 cents.

However, if buyers step up and the breaching bar, closing above 34 cents has high trading volumes exceeding 40 million of July 15, then XRP prices would easily float to 40 cents, and higher in days ahead.

Further, there would be more upsides for XRP if the same momentum drive prices above 40 cents with high volumes surpassing 50 million of July 10. In that eventuality, XRP may easily rally to 50 cents in a revitalizing move that would catalyze demand as buyers aim for the ultimate 80 cents, the high of Sep 2018.


Disclaimer: Views and opinions expressed are those of the author and is not investment advice. Trading of any form involves risk. Do your due diligence.

All of Today’s Ripple (XRP) Price Analysis, Chart Forecasts and Industry News

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Author: Dalmas N

China’s Crypto Stance to Soften as Bank of China Outlines Bitcoin Qualities

Chinas-Crypto-Stance-to-Soften-as-Bank-of-China-Outlines-Bitcoin-Qualities

Bank of China recently posted an infographic entailing cryptocurrencies on its official website reveals news outlet Decrypt. As per the claims made, it seems to be an attempt to educate residents on the overall functioning of cryptocurrencies, followed by its real use cases and the value it could potentially conquer.

This is definitely caught off guard considering the fact that the country has dismissed the likes of cryptocurrencies ever since countries began to scrutinize it. It is important to stress that both the People’s Bank of China (PBoC) and Bank of China are two different entities, where the former constitutes regulatory frameworks and the latter exists in different branches.

Even the CEO of Tron, Justin Sun makes an appearance on this infographic, who supposedly was quoted saying (closest translation):

“The biggest problem is too much money!”

As for how the informative visualization was put together, Crypto Potato highlighted that it starts with Bitcoin’s history and Satoshi Nakamoto, followed by the notion of a decentralized peer-to-peer system, Bitcoin mining and issues such as Mt. Gox and an investor’s attempted suicide was reported.

Moreover, accomplishments have also been shared in this part, such as the first ever time pizzas were purchased with BTC, as well as Facebook’s most recent endeavor, Libra.

The second part explores more of what’s been happening for some time now, which includes the volatility in prices, stressing that investing in the giant is equivalent to a roller coaster ride.

As for the final part, it is more relatable to present time trading and successes including crypto ATMs, crypto-related payment options and ways cross-border payments can be achieved.

Is this a sign that China may reconsider its outlook on cryptocurrencies? Will countries like India follow suit?

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Author: Nirmala Velupillai

Palestinian Government to Possibly Demolish the Israeli Shekel and Introduce Crypto

Palestinian-Government-to-Possibly-Demolish-the-Israeli-Shekel-and-Introduce-Crypto

It has been revealed that yet another government will be considering the likes of cryptocurrencies in place of an already-established national currency. In particular, this involves the Palestinian government’s plans to possibly demolish the Israeli Shekel reports Al-Monitor.

Said news was publicly announced on Tuesday, July 9, 2019, where the Palestinian Prime Minister, Mohammad Shtayyeh noted that the reason for considering cryptocurrencies stemmed from the obstacles that arose from the use of the national currency to the Palestinian economy.

Shtayyeh appears to be keen on this decision, reiterating since Saturday, April 13, 2019, that nothing can be a hindrance of such plans. He also noted that despite the billions of shekels in circulation,

“we’re not forced to remain dependent on the shekel.”

Amidst Possible Crypto Adoption, Is It Truly Feasible?

While the news is a big move, as more and more countries consider alternatives to their national currencies, arguments have been made against executing made plans. It has been emphasized that a national cryptocurrency is not

“economically feasible.”

The news outlet has referenced an economic and social sciences professor based in Nablus, Bakr Shtayyeh, who does not think such moves are feasible for Palestine. Here are some of the concerns that have been expressed:

“If Palestine has its own currency, will it be able to prevent Israel from withholding tax clearance funds or controlling crossings and the movement of exports and imports? Will Palestine be able to conclude direct commercial deals with neighboring countries without the imported or exported goods passing through Israeli commercial ports?”

He further noted that the problem doesn’t rest in the national currency itself, but more so on the

“complex economic and political reliance on Israel.”

Israel and Palestine Relation to Prevent Crypto Adoption?

The economics professor believes that this endeavor could induce problems between Israel and Palestine. Some of which include Israel’s probable distaste for dealing with another currency and a rise in political tension. The latter alone could potentially devalue the cryptocurrency, which may defeat the main purpose behind considering its likes for economic gains.

Concerns Regarding Cyberattacks Disclosed

The professor further addressed the role of the Palestinian Authority (PA) needs to assume. In particular, he shared that an assessment needs to be done on the cryptocurrency to ensure that it can maintain a stable value.

With this being said, another area with concerns involves that of hacks and damages that could be achieved by Israel if political tension rises. That is,

“Is the PA capable of repelling cyberattacks and cyberpiracy that Israel could launch against the Palestinian cryptocurrency, especially since Israel is advanced in the field of software development?”

On the whole, Bakr Shtayyeh doesn’t think to issue cryptocurrencies as being impossible, but rather believes that there will be a lot of difficulties in making it happen. On the whole, Palestine needs to be considered with respect to the role it plays as a “consumer country” along with what the decision means for the national currency and economy.

As for the overall nature of the cryptocurrency, the Prime Minister supposedly did not share any specs. However, news outlet AA quoted him stating the following (closest possible translation):

“We are working to transform e-government into a reality that citizens feel,”

adding that more work needs to be done in,

“the preservation of information in official institutions,”

given that,

“the infiltration of information is part of the Israeli war on the Palestinian Authority.”

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Author: Nirmala Velupillai

Royal Bank of Canada Joins List of Fearful Anti-Crypto Institutions as Customer Shares Horrible Experience

Royal Bank of Canada Joins List of Fearful Anti-Crypto Institutions as Customer Shares Horrible Experience

The advent of Bitcoin and cryptocurrencies along with all other uses of blockchain technology isn’t exactly sitting well with traditional institutions. Though unsurprising, some of these firms are publicly speaking against cryptocurrency and would do everything within their power, to tackle the sector.

This situation was again brought to the fore when Anthony Pompliano, a founder and partner at Morgan Creek Digital, posted a screenshot of an email sent to the CEO of the Royal Bank of Canada (RBC) from an unhappy client.

Notably, the email begins with an announcement that said customer would be severing ties with the bank.

“I am afraid things are just not working out between RBC and us. We have decided to take our business elsewhere…our recent experience with RBC has been nothing short of horrible, and we just can’t deal with all the nonsense anymore. We’ve been disappointed for a long time and this is the last straw.”

The sender then goes on to explain that the bank ‘s decision to consider him, his family and business as “suspicious” despite being customers for decades with huge amounts, is offensive.

“My wife…has been a customer of RBC her whole life, so are her parents, siblings and their…family business. I have personally been a RBC customer for 12 years. We were also customers of yours through our last venture…with about $50 million in the account at one point. Heck, we are even RBC shareholders. If the Bank doesn’t know us by now, I don’t know what else to do.”

According to the sender, it would make sense for someone with such a long history with the bank to be treated with a little more respect but apparently, that wasn’t the case. The sender adds:

“The fact that we are considered ‘suspicious’ customers because of our crypto holdings is nothing short of insulting. I am without words. There is absolutely no way we can continue doing business with an institution who believes [it] can dictate what we can and cannot do with our money. This is simply unacceptable and inexcusable to us.”

The sender then admits to have “a very significant amount of crypto holdings” which is held legally and is not used for anything illegal like money laundering or drug dealing and this is probably the major problem.

Before stating categorically that they would like to terminate their relationship with the RBC, the sender put in a paragraph about banks and their fear of crypto.

“It is clear that the banking industry is feeling threatened by Bitcoin and honestly, it should be. It is the competition it deserves. Banks have abused their power for way too long and treating customers like criminals because they hold crypto is just another example of this. I cannot wait to see The People taking that power back, because the current system is broken.”

This will probably not be the last time an event like this will occur. As long as there is still a cryptocurrency sector, the traditional financial institutions will still do everything they can to suppress. However, this is nothing to crypto proponents and will do next to nothing to deter adoption of digital assets.

Just like the sender ends his email “Long Bitcoin, Short The Bankers.”

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Author: Tolu