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South Korea Says No Plans to Ban Crypto ExchangesJanuary 30, 2018 – South Korea is one of the world’s largest cryptocurrency hubs and a trailblazer in terms of regulating the uncharted territories of cryptocurrency and blockchain technology. Earlier this January, government officials made a few vague statements on the government’s official outlook on cryptocurrency. Rumours began to swirl, and many worried South Korea would follow in China’s footsteps and take an unfriendly stance towards cryptocurrencies. This consequently had a negative effect on cryptocurrency markets across the world. This week, South Korea’s finance minister affirmed they will not be following in China’s lead. Cryptocurrency exchanges will not be banned or suppressed, however, regulations will be implemented to deter illegal trading and crypto crimes. Some reacted negatively to this news, preferring less government intervention in the crypto space. On the other hand, government regulations will likely improve exchange transparency and establish security standards that may prevent future hacks such as the Coincheck exploitation earlier this week. Read the full article here. |
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Square Launches Bitcoin TradingJanuary 31, 2018 – Square Inc. is the latest major company to delve into the growing cryptocurrency market. Users of the popular payment ecosystem can now buy and sell bitcoin on the platform. The company said it would not add any additional fees for buying and selling the cryptocurrency, but it is only allowing customers to purchase a maximum of $10,000 worth of bitcoin per week. Analysts believe that this is a strong first step in integrating cryptocurrencies into regular consumer transactions. In 2017, Square had a gross payment volume exceeding $50 Billion. “We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system, and we’re excited to learn more here” said the company. Square’s stock had a strong reaction to the news, shooting up 4% during intra-day trading on Wednesday. Read the full article here. |
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US Regulators Subpoena Crypto Exchange Bitfinex, TetherJanuary 30, 2018 – One of the world’s largest crypto exchanges, Bitfinex, has been subpoenaed alongside Tether, a firm in close relationship to Bitfinex. Tether runs a cryptocurrency that they claim is backed by the US dollar, under the symbol USDT. The coin has become a popular substitute for dollars on crypto exchanges worldwide, but regulators are skeptical of the firm’s claim that each of their coins is actually backed by one US dollar. Little of Tether’s accounting records have been made public or verified, forcing US regulators to take action. Crypto exchanges have also faced recent cyber security threats, whereas the underlying blockchain network continues to be secure. Read the full article here. |
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Starbucks Plans to Implement Blockchain in Long-term StrategyJanuary 26, 2018 – Major companies are becoming eager to transition into effective and diversified payment systems. Starbucks Chairman Howard Schultz reported that the famous coffee chain is planning to incorporate several cryptocurrencies and blockchain technologies into their long-term strategy, but has no specific projects or investments yet. Starbucks has also claimed that it is currently testing a cashless store in Seattle. The recent emergence of cryptocurrencies has brought forth new opportunities for companies like Starbucks as consumer behaviour evolves. By investing early and diligently, the company can stay ahead of the curve in payment processing. However, Howard Schultz claims that Bitcoin may not be the main contender when it comes to payment processing. Other digital currencies, such as Litecoin, offer faster transaction times, which is important for point-of-sale systems. Read the full article here. |
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Bill Submitted to Make CryptoRuble Legal Tender in RussiaJanuary 27, 2018 – In late 2017, Russia’s president Vladimir Putin had ordered for the issue of a regulated national cryptocurrency. At last, a draft law introducing a national cryptocurrency, the CryptoRuble, as an official means of payment in Russia has been submitted to parliament. The cryptocurrency, CryptoRuble, is now in sight of being legal tender in Russia. It has been reported that the Russian cryptocurrency is to be taxed at a rate of 13% for realized gains. According to Russia’s Deputy Minister of Economic Development, the CryptoRuble is designed to become Russia’s “digital money in light of the digital economy”. Read the full article here. |
