Weekly Crypto New Review 10/22/2018 - 10/26/2018
By Marianne White
Monday, October 22nd
China Releases Regulation for Blockchain Startups
The Cyberspace Administration of China (CAC) released a draft policy called “The Regulation for Managing Blockchain Information Services” and now are waiting for public feedback before the policy will come into effect. The regulations would then apply to all China-based blockchain information service providers. This would be one of the first regulations specifically for the blockchain network for the country. China definitely has a history of censorship and the blockchain technology offers a way to bypass these. For example, people have used the ethereum blockchain to post about the #Metoo movement as well as scandals happening throughout the country. The public has until November 2nd to submit any and all feedback before the policy moves to the next stage to being an official policy.
Tuesday, October 23rd
Swiss Financial Association Published Standards for Anti-Money Laundering for Digital Assets
The Swiss based Capital Markets and Technology Associations (CMTA) published new anti-money laundering standards for digital assets and distributed ledger technologies. CMTA said that these new standards are “to clarify measures to be taken in order to comply with the Swiss regulations against money laundering and the financing of terrorism.” Many countries seem to be cracking down on abuse of the blockchain. It is difficult to regulate by the technology’s nature, but regulations could potentially protect users from these risks. It is important to note however, that these new standards do not have any formal regulatory status and according to the CMTA simply, “represent a consensus” of the financial sector for good practice in the crypto space.
Wednesday, October 24th
German Reclassifies Bitcoin After Court Ruling
Germany’s Federal Supervisory Authority (BaFin) already classified bitcoin as a financial instrument, but after a court ruling, it was disclaimed as such and deemed that cryptocurrency did not meet the definition under the terms of German Banking Act (KWG). The Berlin Court of Appeal back in September, dismissed a case against the operator of a bitcoin trading platform who was arrested for failing to obtain a BaFin permit. However, the Berlin Regional Court dismissed the judgment as BaFin misinterpreted the legal status of bitcoin. The Berlin Court of Appeal agreed with the court’s ruling as these German regulators put bitcoin under the umbrella of criminal law without being aligned with the banking acts first.
Thursday, October 25th
Japanese Hacked Exchange Zaif Sale Confirmed
The Japanese exchange platform Zaif confirmed it will be transferring all of its cryptocurrency operations to financial services company Fisco by November 21st. Zaif, back in September, suffered a devastating loss of $63 million due to a hack and received three business improvement orders from the Financial Services Agency (FSA). What is more surprising and frustrating is that customers who were victims in the hack may not receive the compensation they were promised. Due to the change over, the company stated, “Please be forewarned that we may not be able to respond to [customer’s compensation] requests.” It is unclear if this will be resolved for customers or if they will never receive their lost coins.
Friday, October 26th
A Fully Bitcoin-Backed Coin is Coming to Ethereum
Ethereum is set to release a new token in January and it will be backed fully by Bitcoin. Decentralized exchange startups Kyber Network, Republic Protocol, and BitGo (a cryptocurrency custody company) created the initiative and many ethereum-based projects will support the adoption once its released. The purpose was to replicate bitcoin’s utility, but with the flexibility of ethereum. They are calling it the best of both worlds. The token will be known as the wrapped bitcoin or WBTC. WBTC tokens will be a full proof-of-reserves and there will be registered merchants who will be circulating and redeeming WBTC tokens to all users.