Iran is regulating crypto miners after a new licensing regime has been introduced by the country’s government.
According to an official representative from the Iranian ICT Guild Organization (IIG), which is a body that represents Iran’s computing sector, the Ministry of Industries, Mining and Trade has given more than 1,000 licenses to crypto miners.
The New Regulations Failed to Attract Foreign Investments
Amir Hossein Saeedi Naeini, also an IIG representatives, said that even though the cryptocurrency mining operations are now regulated in the country, this hasn’t attracted too many foreign investments. These are exactly his words, from local media reports:
“Our studies show that the crypto mining industry has the potential to add $8.5 billion to the economy. [But] most potential investors have left for neighboring countries, because they offer incentives for crypto miners.”
Mining Operators Attracted to Iran
The mining industry in Iran has evolved greatly over the past few years, seeing operators are very attracted to the country’s state-subsidized tariffs on electricity. There are thousands of members operating on the most popular Iranian mining channels. Besides, last year, the government of Iran came with new legislation for crypto mining to be recognized as a legitimate business. The draft proposal says operators need to submit details about their mining activity in order to receive a license that they need to renew every year.
Licensing Regime for Big Operators Only
The Minister of Industry, Mine and Trade approved the licensing regime in the summer of 2019. The licenses are being given only to mining farms that use over 30 kilowatts of electricity, meaning small household operators can’t get one. Before licensing, mining was conducted in fear because the non-compliance penalties were very high. Those who were caught not complying had to face big fines and their equipment was confiscated, not to mention some of them even ended up in jail. In June 2019, over 1,000 mining rigs have been confiscated from only 2 operators.
Author: Oana Ularu
After launching XRP/USDT futures yesterday, today Binance has introduced its 5th perpetual contract, EOS/USDT with a leverage of up to 75x. The trading for EOS futures contracts will start on January 8 at 08:00 AM (UTC).
Unlike the XRP perpetual contracts that had the XRP price shooting up by nearly 15% in a day, the EOS price has only moved 1.79% in the past 24 hours. In past hurr, price is up 1.80% in the USD market.
However, it is possible we might see more movement as the day progresses and the community catches up with the announcement.
Currently, EOS is trading at $2.81 and up 5.25% to date in 2020 but down 1.55% against BTC.
In fact, XRP started surging before the announcement which has some speculating that there was insider trading involved.
This could be why, in the case of EOS/USDT perpetual contacts, Binance implemented a cap of ±1% of the marked price during the 1st half hour trading begins.
Hong Kong has introduced new measures that seek to officially regulate the crypto exchanges operating within the city. The Securities and Futures Commission (SFC) in Hong Kong made public a draft regulatory regime on Nov 6, 2019, which will see the securities regulator grant operating licenses to crypto exchange firms, the Medium reports.
Last year, the securities regulator launched a regulatory sandbox but exempted the fintech firms to allow for enhanced innovation. During the Fintech week in Hong Kong, Ashley Alder, the head of SFC revealed that the regulator has framed the regulation guidelines that will guide the crypto exchanges within the city.
According to Alder, the new regulations will cover all crucial investor concerns comprising of proper storage of the digital assets, KYC aspects, anti-money laundering and financing of criminal activities as well as market manipulation. The watchdog’s head explained that these guidelines have been absent in the conventional financial market spheres.
According to the new guidelines, the licensed crypto exchange firms will need to have an insurance to cover against any theft or loss of virtual assets.
Alder stressed that cryptos are now moving to the mainstream financial markets highlighting the popularity of stablecoins which he said have the capacity to be adopted faster in the global financial system. He stated that the majority of central banks and other policy makers have concerns about the stablecoins and the new regulation guidelines will help tackle some of the raised concerns.
The fresh SFC regulatory guidelines will allow the crypto exchanges to decide whether to be regulated or not. Alder explained that it will not be mandatory for the exchanges to apply for operation license within the city.
Following the publication of the new regulations, OSL crypto exchange which is a subsidiary of BC Group announced that it had applied for an operating license claiming to be the first platform to do so in Hong Kong, Reuters report.
OSL CEO, Wayne Trench, congratulated the SFC for the new guidelines stressing that they will help in streamlining the industry.
It is expected that other exchanges will apply for license to enhance their reputation and credibility among crypto traders in the city.
Author: Joseph Kibe
Sylvia Garcia, a Democrat lawmaker from Texas, has recently introduced to Congress a bill that may cause several issues for the crypto market. According to this new bill, cryptocurrencies pegged to fiat currencies, commonly known as stablecoins, would be considered securities.
The draft bill was introduced to the House Financial Services Committee and it would regulate all stablecoins (including Tether and some other ones like Facebook’s Libra after the launch) under the well-known Securities Act, which was created back in 1933.
According to the bill, the market value of the stablecoins is completely determined by a limited group of people or companies that hold one or a basket of assets. This means that their value is directly linked to third-parties, something that also happens with securities.
This project can clearly be seen as a response to Facebook’s Libra. The cryptocurrency was introduced to the world just a few months ago and it caused quite a lot of controversy among regulators. The new crypto will be tied to a basket of assets in order to have a stable price, which would make it a stablecoin.
At the moment, the regulatory scrutiny over the Libra is pretty intense. The CEO of Facebook, Mark Zuckerberg, is even set to testify soon in order to defend the project and explain to the lawmakers why they should approve it.
If the law is passed, however, this could mean several problems for Facebook. The U. S. Securities and Exchange Commission (SEC) would take over the authority to regulate the tokens and not everybody would be able to use the Libra.
Author: Gabriel Machado
Cindicator, the hybrid intelligence company recently introduced Edge, a new web-based application that can be used to receive and track indicators for more than one hundred and fifty cryptocurrency assets.
Estimating Possibilities In The Marketplace
According to information provided in a blog post published on September 11th, Cindicator Edge, the new product is targeting CND (Cindicator) token holders. At the moment, only the demo version has been provided by the company.
The new product is aimed at helping the token holders to make valuable trading decisions by being able to estimate probabilities of numerous events that are likely to occur across more than 150 digital futures, stocks, and assets, this according to the official company announcement.
For users to be able to receive the indicators on a real-time basis, they will be required to ensure that they have connected the application to their ETH wallet address. When the connection is established, it will help to unlock a maximum of 12 indicators each week.
Vlad Kazakov who is the current owner of Cindicator Edge stated that the product was tested with about four hundred users prior to the release of the demo. In the tests, it was found to work well with many of its testers giving it a positive review.
Partnership Agreement With Kyber
In the announcement released via the blogpost, Cindicator also mentioned that it had entered into a partnership agreement with Kyber. Kyber is a payment service and an-chain liquidity protocol that facilitates the automatic conversion of cryptocurrency assets. This partnership made it easier for the application users to integrate their CND tokens into the other readily available tokenized environments.
Kyber additionally provided the application’s users with options to help them acquire CND tokens directly from the Edge application. This means that users did not have to go back to an exchange for them to transfer their available tokens to the external wallet.
This news comes in the heels of the CND tokens being listed on the Kyber Network. The listing occurred on August 13th, 2019 and was formally announced by Cindicator. CND had earlier in the year been listed on Allbit.
Author: Daniel W
Coinbase has introduced a new initiative dubbed USDC Bootstrap Fund and just as the name suggests, the firm intends to boost developers with a fund in terms of USDC tokens.
In a blog post, the crypto exchange said that the new fund will be used to enhance developments of decentralized finance (DeFi) protocols. The new initiative ‘USDC Bootstrap’ will only invest in DeFi based projects using its stablecoin USDC.
DeFi is a relatively fresh concept in the blockchain sphere which can be described as the conventional financial products that you could get from a financial institution like lending or derivatives that have been developed on top of a blockchain. In other words, DeFi protocols consist of smart contracts that are governed by codes and the protocol on which they’re built on.
CoinDesk reports that after several deliberations with DeFi platform developers, the exchange says it realized that liquidity or availability of funds to borrow was one of the urgent needs for DeFi based initiatives. The exchange hopes that through grants, it will boost the development of the DeFi ecosystem.
To kickstart the initiative, Coinbase announced that it was investing 1 million USDC each in Compound as well as dYdX. However, unlike the Coinbase Ventures where investments are made in startups for an equity stake, the Bootstrap fund is designed to add to a protocol’s lending pool where interest will be returned after counterparties borrow from it.
Zhuoxun Yin, dYdX operations head, the most challenging aspect in the development of a new DeFi protocol is attracting borrowing demand. however, the addition of USDC to the lending pools will help to lower the interest rates and embolden clients to borrow more USDC.
Head of Bootstrap Fund Nemil Dalal explained that boosting lending protocols will help in the growth and development of DeFi, which is an area of much interest for Coinbase. In the recent past, Coinbase venture also invested in different DeFi protocols such as Dharma and BlockFi. Dalal explained that Coinbase was interested in enhancing decentralized finance within the banking industry.
Author: Joseph Kibe
- New payment system for digital assets to be introduced by Central Bank of the Bahamas.
- The initiative, Project Sand Dollar, includes a collaboration between Zynesis and NZIA.io.
The Bahamas is known as a place of luxury to tourists, and a recent announcement from the Nassau Guardian indicates that the Central Bank of the Bahamas is making the environment more friendly. Reported on May 29th, the CBOB will be starting the development of a digital fiat currency system, starting with an official agreement with NZIA.io.
The bank and the transaction provider, respectively, will be responsible for creating and implementing “Project Sand Dollar,” which will be the first time a digital currency has been created in the Bahamas. The collaboration with NZIA.io was first announced in March by the central bank, joining the Zynesis software development firm in the project.
As described by the central bank, Project Sand Dollar will be working on an electronic payment system for “integrated, affordable” remittance, which will be geared towards the local businesses and residents. To be integrated seamlessly into the current financial infrastructure, the team behind the project will ensure that this payment system falls in line with the local financial regulations.
All residents of the island country will now have equal access to digital payments, which reduces the service delivery costs associated with performing transactions with cash.
At this point, there has not been an island selected to pilot the new payment system. However, John Rolle, the bank governor, said that the Family Islands should be ready to completely adopt the initiative by the end of next year. The original plan to bring in a digital currency with government support was announced by CBOB in June last year.
Not all countries are taking such a progressive stance. In fact, the president of Deutsche Bundesbank in Germany warned banks that the volatility of the crypto market could put central banks at risk in the country. The official added that the integration of crypto assets could also create instability of the financial system, specifically in crisis situations.
Author: Krystle M