China’s Central Bank Digital Currency is “Digital Form of the Yuan” & “Not for Speculation”

  • Mu Changchun, central bank veteran in charge of the plan for virtual yuan says it will not need the backing of a basket of currencies
  • Chinese internet users unimpressed by no speculating on the virtual currency part

China’s new sovereign digital currency would not be open to speculation like other cryptocurrencies, said a Chinese central bank official on Saturday.

Mu Changchun, head of the People’s Bank of China’s digital currency research institute said it would be a “digital form of the yuan” that wouldn’t need the backing of a basket of fiat currency.

“The currency is not for speculation. It is different to bitcoin or stable tokens, which can be used for speculation or require the support of a basket of currencies,” Mu said.

The central bank official said that the design, formulation, and functional research and testing of the Digital Currency Electronic Payment have been completed. The next step is to roll out the pilot programs before it is launched.

But Chinese internet users aren’t excited about the idea that there would be no speculating on the virtual currency.

“So there will be no fun in it,” one person commented. Another said on news portal Sina.com, “The digital currency is just another form of the yuan, but cryptocurrencies that use real blockchain technology can be treated like gold and silver.”

However, there is no time frame for introducing the central bank-backed digital currency as of yet.

Any Chinese bank or company hasn’t officially confirmed their participation in this digital currency plan either but earlier this month there have been reports that the big four state banks and three state-owned telecom companies are involved in the process.

Meanwhile, Beijing has been cracking down on trading of Bitcoin and other digital currencies and seeing Facebook’s stablecoin Libra as a potential challenge to its capital account control. As the bitcoin price climbs back above $7,600 just a few days before Christmas, it will be interesting to see what is on the 20/20 horizon for everything the crypto world has become in the last decade and will surely blossom and grow in the upcoming decade.

Read Original/a>
Author: AnTy

South Korea Seeks to Tax Transactions Involving CryptoCurrencies In 2020

Capital gains from transactions involving virtual currencies such as bitcoin may soon be taxed in South Korea, according to a report by the Korea Times.

The publication refers to government sources, and confirmation received from the Ministry of Economy and Finance. According to the report, a ministry official stated that related discussions have been occurring, and that there is a revised bill that will be “drawn up” by the first half of next year.

In addition, at the subcommittee level, there is a bill that will enhance transparency of virtual asset trading. If the bill were to pass, it will go into effect a year after the regulation is established.

The wrinkle, according to the report, is that there is still a less-than-clear definition of virtual assets. That is, the government has still not clarified if gains from virtual asset trading are considered gains from stock trading or real estate transactions.

Read Original/a>
Author: Silvia A

Ukrainian Government Finalizes Money Laundering Laws Based on the FATF Recommendations

The Ukranian government has finalized a money laundering law for virtual assets and virtual asset service providers based on the recommendations put forward by FATF. Ukrainian legislative body Rada published the final version of the law on December 6th.

As per the published version, digital assets are categorized as a store of wealth, and also noted its potential as a tool for illicit activities including money laundering, and other kinds of fraud.

Ukraine who recently got Binance on board to help it formulate crypto legislation. The leading crypto exchange by trading volume signed a memorandum of understanding with the Ministry of Digital Transformation of Ukraine in November. The partnership would see Binance helping Ukraine in blockchain implementation as well as help them create a new market for virtual assets.

The Final Version of the Law

The final version of the law surrounding the virtual assets contains various guidelines for the authorities and the service providers. The published version contains the guide for the government on how to monitor and regulate crypto trading in the country. One such guideline suggests that crypto traders making trades worth $1,300 or above are required to submit their public key to the government for monitoring purposes.

The guideline suggests if the trader makes a trade higher than $1,300, then the identity of the sender and receiver will be verified by the government. Another guideline suggests that virtual asset service providers dealing in assets above $1,600 need to inform authorities about the customers they are dealing with.

Read Original/a>
Author: Hank Klinger

Orchid to Debut A Privacy VPN Network Based on Token Technology in December

Orchid, a Virtual Private Network provider, has announced its plan to roll out a token-powered (OXT) network and an application during the first week of December. The company majors in offering decentralized VPN and is also a platform where node providers can trade in tokens for advertisements using the Ethereum blockchain tech.

“We will be launching one of a kind App that will operate based on the use of native tokens,” said Steven Waterhouse, the CEO at Orchid. Users will use the OXT token to pay for Bandwidth offered by node providers. These tokens will be generated at the launch, and the system operates based on a staking model.

According to Waterhouse, the company will have between five to ten node providers during the launch. The node providers will include both the new crypto technology and the traditional VPN space. Waterhouse adds that the initial offer was meant to boost the early stages of the system.

Virtual Private Networks have in use by millions of people globally for internet browsing. However, the VPN space is faced with the challenges of a centralized authority.

The company has managed to raise about $48 million through a number of investments since 2017. The major investors with Orchid include Sequoia, Andreessen Horowitz, Polychain Capital, and Blockchain Capital. Brad Stephens, Blockchain Capital’s managing partner said,

“To secure communication and privacy from state surveillance, VPN spaces should be decentralized. Orchid has illustrated the importance of VPN decentralization. We have worked with the company as an investor and advisor since 2017.”

The only problem facing the company has been to secure token-powered platforms by wholesale adoption. One of the investors, without any stake in Orchid, though, told CoinDesk that priority-payment tokens such as OXT and utility tokens are not a strong incentive to attract investors and without the investors, it is hard to have a significant value.

Waterhouse, however, defends the company’s token project saying that it has been developed with the investors’ best interests in mind. “We have been focusing on building the platform in the Web3 world,” says Waterhouse. The major objective is to develop a user experience based on privacy and one that is easy to understand and appealing to its users.

Read Original/a>
Author: Denis Miriti

Taiwan Grants Virtual Banking Licenses To Three Companies to Make a Push for Digital Banking

Taiwan Grants Virtual Banking Licenses To Three Companies to Make a Push for Digital Banking

Three companies have recently acquired virtual banking licenses from the government of Taiwan. This the first time that the government does this, as Taiwan is starting to follow other regulators in Asia which are on the move to regulate their markets properly.

The licenses have been awarded to Rakuten International Commercial Bank, LINE Financial Taiwan (a subsidiary of the LINE Group in the country) and the local operator Chunghwa Telecom. These are important groups, which include two Japanese companies (Rakuten and LINE) and one Taiwanese firm.

According to the reports, no more licenses will be issued to more companies so soon, so these three will be the only one with permission to act like virtual banks in Taiwan for some time. Initially, only two licenses were to be given, but each company had a pretty different business model, so the regulators decided to award each one of them with the license they wanted.

Fergus Gordon, the leader of Accenture’s Banking practice in Asia, affirmed that these new actors which are appearing in Taiwan are likely to be focused on specific markets such as microloans and SMEs. They want to be more efficient than traditional banks in these areas, which are not as popular with them, so they can carve their place in the market.

This event follows a trend that is happening in Asia right now. Several fintech companies are starting to challenge the local banks by offering innovative digital banking solution. This is increasing the competition in the area and starting to create a revolution in Asia.

Hong Kong gave out a total of eight virtual banking licenses to companies such as the Alibaba Group Holding and Standard Chartered while Singapore decided to give away five licenses.

Regulators from countries such as South Korea, Malaysia and Thailand are also considering to do the same, which shows just how the market has been evolving lately.

Digital banks are growing a lot in the region and the consultancy firm McKinsey affirms that if these banks continue to dominate the market, traditional banks may have a problem as their profitability will get considerably more low by 2023.

Read Original/a>
Author: Gabriel Machado

Japan Analyses Libra’s Economic Influence And How It Can Affects Financial Stability as G7 Approaches

Japan-Analyses-Libras-Economic-Influence-And-How-It-Can-Affects-Financial-Stability-as-G7-Approaches
  • Japan analyses Libra influence on the economy and the impact it can have on the economy
  • The virtual currency was announced by Facebook on June 18

Japan is analyzing the effects that the recently announced Libra stablecoin would have on the financial markets and the economy. This is according to a recent report released by Cointelegraph Japan on July 12. There are many other jurisdictions around the world that are also worried about the negative impact that Libra could have on the economy.

Japanese Regulators Want To Know More About Libra

On July 13, Reuters released a report in which they informed that Japan has set up a working group to discuss the impact of Facebook’s proposed Libra digital asset. The decision comes a few days before a G7 finance leaders’ meeting in which the topic will be an important topic on the agenda.

The new working group consists of the Bank of Japan, the Ministry of Finance and also the Financial Services Agency (FSA). These agencies will be meeting this week and coordinate different policies to better understand the impact of Facebook’s virtual currency on the market.

This is not the first G7 country that created a special task force to address the new challenges proposed by Libra Indeed, France has also created a G7 taskforce to examine the role central banks will have in order to regulate Libra and other digital assets. Officials expect that other regulators will join the group due to the impact that Facebook’s project can have on the market.

In addition to it, the European Central Bank policymaker Benoit Coeure is also expected to deliver a report on the matter ahead of the G7 meeting that will be taking place in Chantilly.

Facebook released the Libra digital asset on June 18 with the intention of making transfers easier for users around the world. With this new virtual currency, it would be possible for individuals to have access to financial services when before they were not able.

Other regulatory agencies in countries such as the United Kingdom, the U.S. or Singapore are also considering new regulations for Libra. The U.S. President Donald Trump commented that if Facebook wants to offer banking services it would also have to follow banking regulations as many other companies.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

Read Original/a>
Author: Carl T

Investors Cannot Sell Their Digital Assets Due To Minimum Limits

  • Crypto investors are not being able to sell their virtual currencies due to high minimum limits
  • Blockchain.com says they have increased their limits to remain updated with network fees

It seems that there are several users that cannot sell their digital assets to the market because they are having trouble with the limit imposed by crypto wallets. Many wallets have imposed minimums that are currently close to $100 and small investors would not be able to leave the market if they want to sell.

Should Minimums Be Lowered?

Users that have less than $100 in Bitcoin or other cryptocurrencies might find it difficult to sell or transact their funds due to the minimums imposed by crypto wallets and platforms. According to a recent article released by Telegraph Money, many of those that purchased small amounts of Bitcoin (BTC) in 2017 and are trying to sell they are not able to do it.

Some of these platforms include the popular Blockchain.com wallet that has established very high limits for users to sell their funds. For example, Telegraph Money explains that there is a user that purchased 0.0062 of a cryptocurrency and found out that the minimum amount he could sell was 0.008. After some time, the user checked and the minimum amount moved to 0.01.

According to what Blockchain.com says, these minimums are established taking into account network fees. A spokesperson for Blockchain.com explained that they have evolved minimums to ensure users don’t pay uneconomical fees to move small amounts of money.

A recent analysis released by Interactive Investor shows that the minimums established by Blockchain.com seem very high compared to other companies. There are almost 18 million wallets that hold less than the necessary Bitcoin to reach the limit imposed by Blockchain.com.

In general, cryptocurrency exchanges have larger minimums for users to deal with virtual currencies. Trade and withdrawal limits also have very high limits. That shows that there are many things that companies in the space have to change, improve and enhance if they want to attract more investors to the market.

There are alternatives such as decentralized exchanges (DEX) and open-source wallets that would give users a different alternative to deal with digital assets and cryptocurrencies. However, newcomers tend to go to the most popular and recognized crypto wallets and services rather than using open source and decentralized platforms, which yet need to become mainstream.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

Read Original/a>
Author: Carl T

Attackers Compromise 50,000 Servers Worldwide To Mine Virtual Currencies

Attackers Compromise 50,000 Servers Worldwide To Mine Virtual Currencies
  • Attackers are currently using new methods to infect users and mine virtual currencies
  • The methods used are becoming more powerful and damaging

According to a new report released by the Cybersecurity firm Guardicore Labs, hackers were able to breach over 50,000 servers around the world and start mining virtual currencies. This has been performed through an unusually sophisticated method.

Hackers Mine Digital Currencies After Massive Security Breach

As per the report released by Guardicore Labs on May 29, this large-scale malware attack was able to infect 700 new victims a day. There have been several targets, including firms in the healthcare, telecoms, media and IT sectors.

The cybersecurity firm was able to find 20 different malicious payloads in the malware over time. The report informed that new ones were created at least once a week. It was also possible for the attacker to install a rootkit that prevented the malware to be removed.

Guardicore explained that the attack used very sophisticated tools such as those that nation states use.

This shows that hackers and attackers are becoming stronger and more dangerous than never before. The firm informed that the package was written in Chinese and used Chinese language servers. The company explained in its report:

“The Nansh0u campaign is not a typical crypto-miner attack. It uses techniques often seen in APTs such as fake certificates and privilege escalation exploits.”

APTs are advanced persistent threats and they make reference to the way in which the attackers targeted its victims.

Before, these kinds of tools used by the attackers were only avialable to just a few parties. Nonetheless, this attack shows that these tools can now fall into the hands of less than top-notch attackers.

Moreover, the firm explained that strong credentials are vital in protecting companies’ assets and their integrity. This campaign also demonstrates that passwords comprise the weakest link in today’s attack flows, according to the report. Organizations should have strong credentials and network segmentation solutions to be protected at all times.

As we have written a short time ago at Bitcoin Exchange Guide, SIM swapping attacks have spread in the United States affecting a large number of users. One of the, a recognized developer, lost $100,000 he had on Coinbase due to these attack.

Read Original/a>
Author: Carl T