China Blacklists Crypto OTC Trading Desks With A Five-Year Banking Ban As Punishment

  • PBoC blacklists crypto OTC traders in its latest efforts to crack down on money laundering.
  • This has caused several OTC trading desks to shut down as the future turns bleak.
  • The central bank set a three to five-year banking ban in the country as punishment.

Bitcoin over-the-counter (OTC) traders could be facing up to a five-year ban on their banking accounts in China, local reports state. The central bank, People’s Bank of China (PBoC), is heavily cracking down on money laundering activities and is blacklisting several OTC trading desks dealing in cryptocurrencies.

Recently, the Chinese central bank had enhanced its efforts in cracking down money laundering activities hence the latest move. In a bid to stop the illicit and illegal trades, the PBoC is taking a step affront to combat cryptocurrencies being used to launder funds by setting some of the OTC traders under its “disciplinary list.”

The first step in PBoC’s crackdown in the crypto ecosystem will target large OTC traders who trade in millions. According to the report, exchanges that allow transactions away from the public and transact high volumes will be blacklisted. Some have already faced the brunt, having their bank accounts and bank-issued cards blacklisted for the next three years and their online accounts banned for the next five years.

Local banks and financial institutions are now in charge of monitoring money laundering, bidding to keep the vice away at the lowest levels and higher levels of government. The institutions quickly flag and restrict the transactions involved in money laundering, and subsequently, the information is transferred to the local branch of the PBoC.

Once registered, the “blacklist” is transferred to other banks and local financial institutions across the country. This prevents the OTC dealers on the disciplinary list from opening and transferring funds to new accounts.

Despite the crackdown, regulations on cryptocurrency transactions within China remain slim – leaving a grey area on the crypto transactions by investors. Because there are no corresponding rules and regulations, “various financial institutions have different judgment standards for cryptocurrency transactions” hence some crypto OTC desks could be flagged by some local financial institutions.

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Author: Lujan Odera

Will Bitcoin’s Price Over the Next Two Weeks Set the Pace for September’s Bulls or Bears?

As we enter the last week of August, several traders opine that the Bitcoin price’s performance over the next two weeks will determine if the value will drop below $10,000 or a positive surge will go on.

The week’s candle comes at a time when CME’s Bitcoin futures, as well as Deribit’s options contracts, are set to expire. This has the potential of setting the tone of prices for September. More so on whether Bitcoin will end the month above or below various key levels.

Mohit Sorout, Bitazu Capital founding partner, states that $11,800 is a crucial level for Bitcoin. He argues that an upsurge to $11,800 is likely to “put sellers to sleep.”

There are only a few days before the end of August and the Bitcoin futures sector has remained cautious. The number of long contracts in the market is more than the short-sellers with Bybt showing that longs are 53.36% of the total futures market. This indicates that traders are highly cautious and that a couple of scenarios might happen in September.

Bullish Short-term Scenario

In order for Bitcoin to continue with its upward trend in the short-term, traders state that Bitcoin’s price needs to trade above the $11,800 level. If this was to occur, traders forecast that Bitcoin is likely to trade above $12,500. Consequently, others believe that if Bitcoin trades between $10,900 and $11,500, then a bullish scenario is likely in the short-term.

Nunya Bizniz, a crypto analyst, explains that if monthly candle structure at the moment was to follow the previous ones, then a newfound bull run is likely in the short-term.

Bitcoin’s Stagnation Scenario

An alternative scenario, as advanced by some investors, is that the leading cryptocurrency may experience several months of low volatility or price remaining stable before a significant price surge. 10T Holdings co-founder, Dan Tapiero, explained that each price cycle has taken about 800 to 1,100 days for it to be complete. At the moment, the current cycle is not even 400 days old which means that Bitcoin’s price is likely to stagnate in the next one year. He said:

“Each upcycle takes longer to play out and is less extreme as absolute dollar value gets much larger. May or may not be another 6-12 months before price breaks up. It should not matter as the end price point obscenely higher. Holders rejoice.”

Historically, September has been a slow month for the crypto market, and as expected traders have mixed opinions on the next move for Bitcoin.

What’s your opinion on the next price move for Bitcoin? Let us know in the comments section.

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Author: Joseph Kibe

ESET Discovers Trojan Attack Targeting Cryptocurrency Traders Using Apple’s MacOS

The Internet security firm, ESET, has discovered a new trojan attack targeting crypto traders who use applications from Apple’s macOS.

According to the findings, the malware targets crypto wallets and is integrated with pseudo digital asset trading apps, which can easily be confused for the legit platforms.

Dubbed ‘GMERA,’ and not the first time the malware was used. Researchers from Trend Micro, another cyber sec firm, had come across it back in September 2019 when it had posed as Stockfolio, a Mac-built stock investment app.

Upon digging deeper, ESET researchers found that GMERA operators had integrated the malware with macOS’ Kattana crypto trading application. They then created a replica of the firm’s website to promote four new copycat apps, namely; Trezarus, Licatrade, Cupatrade, and Cointrazer. Notably, these malicious apps direct users to a ZIP archive containing the trojan zed versions, which in turn target crypto wallets once downloaded.

The researchers went on to highlight that anyone who is not very familiar with Kattana’s website can, therefore, easily be compromised:

“For a person who doesn’t know Kattana, the websites do look legitimate.”

The GMERA Malware

To fully understand how it works, ESET researchers analyzed samples from Licatrade whose functionality is pretty similar to the other malware. As per the findings, GMERA installs a shell script on the target’s computer, giving the hackers access to a user’s system through the app.

They then leverage HTTP to create C&C or C2 servers to initiate communication between them and the compromised machine. In doing so, they can steal information such as location, crypto wallets, and screen captures stored in the user’s database. Following these findings, ESET raised the issue with Apple leading to the revokement of Licatrade’s certification.

Also Read: Twitter Hacker Managed to Scam Only 12 Bitcoin After Duping Major Accounts Using ‘Internal Tools’

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Author: Edwin Munyui

Ethereum Active Addresses Surge to a Two-Year High But They Also Coincide with Market Tops

Currently in the green by 1.07%, Ethereum is trading at $224, up 80% YTD. ETH traders meanwhile are expecting more gains with ETHUSD longs on Bitfinex still near all-time highs.

This growth has the USD balance of ETH on the crypto exchange nearly doubling this year which is in exact opposite trend with the Bitfinex’s bitcoin balance which saw the biggest outlaw among all the exchanges.

What’s bullish is the active addresses on Ethereum that are currently at a level that was last seen in June 2018. These addresses interacting with ETH have spiked to a two-year high of 486,000.

glassnode-studio_ethereum-active-addresses-7-d-moving-average
Source: Glassnode – Ethereum: Active Addresses (7d Moving Average)

However, this indicator is also a cause of concern because “peaks of the daily active addresses line up with market tops.”

Ethereum Usage on New Highs

The network usage is already at new highs with the total ETH gas used on the Ethereum blockchain reaching a new all-time high. This surge is coinciding with the ETH miners voting to increase the block gas limit by 25%.

Although it will increase the network’s capacity to handle the transactions from 35 to 44, it will make it harder and costlier to sync a node. Also, it would increase the risk of DoS attacks.

Ether, the native token of Ethereum, is required as payment to complete the transactions across the network. And as the demand for transaction activity rises on the platform, so does the demand for ether.

As such, the median daily fee on the Ethereum network continues to go higher as the number of ERC-20 transactions pushes into an all-time high territory. Ethereum fees are also exceeding Bitcoin fees for the third time in a row.

Eth fees have been higher than the leading cryptocurrency network on more consecutive days now, which was last seen only once in May 2018.

BTC vs ETH Network Fees
Source: Glassnode

The transaction count is also going parabolic because of the growth of stablecoins and DeFi. The 7-day average of ETH transaction count is now approaching all-time highs set in January 2018.

Source: Coin Metrics

The DeFi Effect

While major fiat-pegged digital assets have surpassed $11 billion, Tether (USDT) has pushed past $10 billion, as per Messari.

Similarly, the amount of ether collateral deposit in DeFi applications has also reached a recent high of 3 million ETH. This figure is shy of the all-time high of nearly 3.3 million deposits in DeFi earlier this year.

Tradeblock Ether Deposited into DeFi
Source: TradeBlock

DeFi tokens are currently the hot commodity in the market with on-chain liquidity protocol Kyber rallying today. The crypto jumped after an upgrade that includes changes to its KNC model to attract more participants to the protocol’s development.

Moreover, now more and more bitcoins are getting on the second-largest network. According to Dune Analytics, “over 11k BTC, which is over 0.05% of BTC supply, is now on Ethereum.”

“Assuming the “hype” is real and that this is another, much more extended growth cycle that the DeFi is about to undergo, the big question is where will the new capital come from,” wrote Denis Vinokourov of Beqaunt.

According to him, aside from collateralized loans and securitized Bitcoin currently in progress, another prime suspect for capital rotation is centralized exchange tokens, he said.

“With the IEO market in hiatus and spot market activity somewhat suppressed especially given the seasonal effects in play at the moment,” it may lead to at least 10% of capital out of CEX to DEXes.

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Author: AnTy

Police Freeze Chinese Crypto OTC Traders’ Accounts; Digital Assets Tied to Laundered Money

Chinese Police freeze crypto over the counter traders (OTC) accounts to investigate a possible incident of money laundering stains on some of the digital assets on exchanges. The abrupt halt in China’s biggest fiat on- and off- ramp gives sets in surveillance by the relevant law enforcement officers with locked users’ accounts needing an “approval of innocence” by the government before getting back your funds.

Chinese Police launch investigation on ‘tainted accounts’

A blog post on Weibo by one of the top OTC desk managers in China, Sun Xiaoxiao, revealed that China’s police in Guangdong province froze thousands of crypto OTC traders’ accounts starting last Thursday.

According to Sun the police froze users’ funds which they found to be “tainted” by money laundering activities. The police maintain the act to freeze funds is to investigate further on the possible source of the tainted crypto – no trader is being accused of any wrongdoing.

The speculations however are rising on what could be the possible reasons the OTC traders accounts have been frozen. Sun reasoned that the police may be targeting crimes involving telecommunication frauds, Ponzi schemes and casino businesses which use these trading desks to launder ‘dirty money.’ Sun’s blog post read,

“Now there are also OTC merchants who had their bank accounts frozen because of questions over the source of the coins they bought. That means, besides ‘dirty money,’ there are also ‘dirty coins‘ circulating.”

The police are yet to release any statement on the possible reasons why they froze the accounts.

An unusual act from the authorities

Money laundering on blockchains is quite common as the anonymity on cryptocurrencies give users some masked protection in laundering their money. In China, money laundering on OTC desks has been growing as the dirty money is transformed into Bitcoin (BTC) and other cryptocurrencies.

Through market activities, some of these cryptocurrencies bought by tainted cash do find their way to innocent users’ accounts. Blockchain tracking tools such Chainalysis have made it easier for the police to trace such cash on public blockchains. The Chinese police are heavily invested in tracking tools in order to track down the money laundering activities, and innocent accounts do get caught in the middle.

However, in the past the police never froze innocent OTC traders’ funds due to tainted coins. Sun said this was a rather strange move by the police stating its “unusual for users to have their accounts frozen over tainted cryptocurrencies.”

For users to regain access to their accounts, they will need to prove to the authorities that their coins are “clean” by proving their source.

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Author: Lujan Odera

Bitfinex Derivatives Rolls Out New Perpetual Swaps to Speculate on BTC Dominance

Bitfinex’s derivatives platform has launched a new perpetual swap product for traders based on Bitcoin’s market dominance.

Bitcoin’s dominance refers to the overall market cap share of the crypto market and is considered among one of the key metrics for cryptocurrencies. Bitcoin, being the king of cryptocurrencies, has the highest market dominance which currently stands at 68% at the time of press.

Coin360-5-7
Source: Coin360.com

The Bitifinex derivatives platform claimed that its Bitcoin Dominance Perpetual Swap is the first of its kind, believing that it is much more of a capital-efficient than a traditional long and short futures trade.

The derivative platform also claimed that its newly introduced perpetual swap is also less volatile than other products.

The newly launched Bitcoin dominance perpetual swaps are bound to be less volatile, given Bitcoin’s market dominance has remained stable over the time of its existence. Its volatility is way less than its spot market price.

For example, Bitcoin’s dominance a year ago was 55% and has remained between 60-70% since June of 2019, except for the recent market crash on March 12th.

One of the representatives from the exchange explained the thought process behind the launch of such unique perpetual swaps saying:

“Bitcoin has proven time and time again to be a safe haven for traders and it is continuing to be seen as digital gold.

Since global markets crashed in March as the COVID-19 crisis took hold, we have seen a huge increase in trading volume, reaching over $2B over a 24-hour period during the crash on March 13th. We believe the demand will still be there after the halving whilst the supply will be halved.”

Bitfinex’s subsidiaries continue to thrive and launch new products, despite its parent company iFinex being in hot waters for lawsuits filed against it on charges of market manipulation at the start of the year.

Last month, Bitfinex launched its own social media platform for traders – called Bitfinex Pulse – to help traders communicate more efficiently. Along with that it also launched a staking service at the start of the last month.

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Author: James W

TRON (TRX) Price Analysis (February 15)

• The overall outlook of the cryptocurrency is in an uptrend.
• Traders may consider buying with bullish reversal candlestick pattern as confirmation.

TRX/USD Medium-term Trend: Bullish

• Resistance levels : $0.028000, $0.029000, $0.030000
• Support levels: $0.012016, $0.011000, $0.01900

Tron medium-term outlook continues in a bullish trend zone. The coin reaches a high of $0.026800 in the resistance area during yesterday’s session.

Today’s daily candle at $0.026403 in the support area is as a result of the bears’ brief return.

Reactions from the bears drop the coin further down to $0.25465 in the support area.

Price of Tron is above the two EMAs suggests the momentum in price of the crypto is in an uptrend.

However, the stochastic oscillator signal pointing down at level 83% in the overbought area is an indication that the price of the coin may likely encounter a trend reversal in the days ahead in the medium-term.

TRX/USD Short-term Trend: Bullish


The cryptocurrency is in an uptrend in its short-term outlook. The 4-hourly candle opens today on a bearish note at $0.026403 in the supply area with its wick touching the resistance line.

Price of Tron further drops to $0.025597 in the support area. With the price above the two EMAs indicates the momentum in price of Tron is in an upward trend.

The stochastic signal pointing down at around level 79% in the overbought region implies the momentum in price of Tron may likely change in the future in the short-term.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan

Mayer Multiple Indicates Bitcoin is Currently Cheap, Stack Some Sats While You Can

Quick Look:

  • Bitfinex traders long on not only Bitcoin but also on Ethereum, XRP, and EOS
  • Even if Bitcoin climbs to $9,000, it won’t be out of the woods because “bear markets have rallies too”
  • Mayer Multiple is sitting at 0.75, which is lower than 84% of history

It’s been over two weeks that Bitcoin has been stuck with the world’s leading cryptocurrency still trading at $7,086.

Today, however, has been a big day for BTC. Exactly a year back, on Dec. 15th, Bitcoin found its bottom at around $3,200 after crashing from its all-time high $20,000, losing 84% of its value.

Since hitting that bottom, Bitcoin is up about 122% and in the first half of the year it even went to $13,900.

This is why the majority of the traders on Bitfinex are long. However, not just for Bitcoin but Bitfinex traders are also long on Ethereum (ETH), XRP, and EOS.

However, while BTC is up about 87% in 2019 to date Ethereum is up only about 4.50%. XRP meanwhile is the biggest loser of 2019 among the top 10 cryptos at almost 40% losses followed by EOS which is down by 1.60% YTD.

In the short term, analyst Magic Poop Cannon says even if we see a rally here, Bitcoin remains in a bear market downtrend. “Bear markets have rallies too,” he explains.

Bitcoin, he says is in a technical bear market and until we see higher highs and higher lows, the trend remains bearish. This holds true even if BTC rallies to $9,000.

Though he isn’t sure how low Bitcoin will fall here he warns BTC bottoms might be much deeper than expected.

Mayer Multiple says Stack some Sats

Bitcoin might be boring right now but it is the perfect time to stack some sats, according to Mayer Multiple.

The Mayer Multiple is the ratio of the Bitcoin price to its 200 days moving average which is a measure of the deviation of BTC price to its long term trend.

Currently, Mayer Multiple is sitting at 0.75, which is lower than 84% of history. A historically low value of Mayer multiple indicates that Bitcoin is cheap relative to its long term trend meaning it is a good time to buy the crypto asset.

This time to stack some sats is warranted because when the market is in fear and there’s blood on the street, that is the time for you to get in.

The market is in extreme fear right now with the Crypto Fear and Greed Index giving a reading of 21 on a scale of 1 to 100, where a value of 0 represents “Extreme Fear” while a value of 100 means “Extreme Greed.”

We are going to $100,000

With the predictions of $100k floating around, it makes sense to ensure that you are in before the next bull market starts.

This week another person joined the $100k BTC price prediction list, Ross Ulbricht, the founder of the now-defunct dark web marketplace Silk Road.

In his six-part blog published from letters he wrote in prison, Ulbricht applied Elliott Wave Theory to predict BTC price. The theory forecasts the highs and lows in the market cycles by identifying the changes in investor sentiment and psychology.

Per this theory, “We have a price target… of ~$100,000 some time in or near 2020,” he wrote. “However, there is no rule that market moves have to be proportional. This is just a patter we see unfolding that may or may not continue.”

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Author: AnTy

CoinShares CSO: Wall Street Using Bitcoin May Not Be A Win-Win Situation

Most of the crypto community seems to believe that institutional traders adopting Bitcoin can be a huge thing for the market. Surely, prices will go up, but is that the right way for the network to grow? During a recent interview with RealVision, the Chief Strategy Officer of CoinShares, Meltem Demirors, has affirmed that this might not be the win-win situation that most people believe.

According to her, big financial players are set to transform how Bitcoin is seen around the world. Bakkt, the futures exchange of the giant Intercontinental Exchange (ICE), is set to change how the market operates and the same can be said about other successful companies such as Grayscale, for instance, which is having a pretty good year.

This will impact the market. Demirors, however, was somewhat skeptical about the centralization that this could cause. If half of the supply was stored somewhere and people now had receipts to prove that they owned BTC, how different would it be from fiat currency? How decentralized? Would Bitcoin still be the same? This is how she put it:

“If we take 50% of the world’s Bitcoin and we put it in custody with a custodian that’s regulated… and we take these Bitcoins, and we put them in a vault somewhere… and then we issue Bitcoin depository receipts — pieces of paper that allow us to trade the underlying Bitcoins sitting in a vault somewhere — but we never actually exchange Bitcoin on the Bitcoin network, is that still Bitcoin?”

These are important questions that need to be addressed. Bakkt did not have a great launch and it started slowly, but it would be naive to believe that this kind of platform does not slowly change how the market operates.

With so many asset managers in the game (including CoinShares), won’t Bitcoin stray away from what it was created to be? At the moment, we can only speculate, but we’ll probably have the answer to the question in a few years from now.

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Author: James W

Australian Taxation Office Forecasts Collecting $3 Billion In Tax Fines From Crypto Traders in 2019

The Australian Taxation Office (ATO) is officially starting to go after crypto traders who did not pay their taxes this year. According to the office, people who did not file for their crypto earnings are expected to pay $3 billion AUD in fines.

With the price of crypto going up this year, many people will be expected to pay on their crypto gains. The government is set to partner with both international and local crypto trading platforms to discover if people are not filing their taxes.

Many people believe that crypto transactions are untraceable, which is not the truth. In fact, they are very easy to track with the right software and the government can do it to discover who is evading its tax responsibilities.

Bulk data will be collected from exchanges to identify who is paying their taxes and who is not. Around 4% of the people in Australia have owned crypto at least once.

Now, the government believes that a lot of people did not report their earnings, so they will need to pay their taxes plus the fines, which can be very high in some cases. In the most severe cases, people can even go to jail for not paying their taxes if they are believed to be omitting them consciously.

When declaring crypto taxes, it is important to remember to pass all the important information to the government in order to avoid fines. Declaring even losses is a good idea, as the losses can be used as discounts for profitable trades.

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Author: James W