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Europe-Focused Crypto Exchange Vows to Offer Favorable Terms for Users

Cryptocurrency has been lauded as the new emperor of the economy with its ingenious trading facilities and machine benefits. Its stringent supporters have long proclaimed crypto-currency as the next fundamental commodity around which the market will circulate. But it seems like it still has a long way to go and a lot to do before the US dollar loosens its grip on the global economy and moves aside for the Bitcoin revolution. The green fiat emperor has been experiencing lower valuations, which has been exploited by the Cryptocurrency community. However, the fact remains that the dollar still holds massive power, which is not going to give up any time soon.

History and Beginnings

The economy of the whole world has been dictated by this green currency for a long time now. It all probably started after the Second World War as the United States of America spread its massive wings, and the Eagle become the gatekeeper of the treasury. The country gained considerable operative authority over the globe as its currency became the mandated currency of exchange for most international transactions and the economic capability to handle debts effectively.

Current weakening

The country’s previous incumbency had operated cautiously to maintain its global domination of the economy by being responsibly loose on financial barriers raised against other nations. But the current president has been more aggressive with curtailments on foreign countries that have turned many other influential players against the US dollar. Such an angry government has been developing their own economies free of the dollar’s grasp. But since the green currency has been winning the game for decades, it is not very easy to altogether remove it from the picture, especially since such a move would mean losing millions for many. The best to topple the dollar entirely rests with China, whose burgeoning economy coupled with advanced cryptocurrency capabilities, can do the job.

The dollar still enjoys the advantages that come with being the default currency of exchange when any two counties or financial holders engage in trading. Such an arrangement means the United States of America will experience freer trades with cheaper transaction costs and an ability to come out on top despite a large number of outstanding dues. But all things that begin must come to an end, and so will the predominance of the dollar.

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Ebang to Establish Crypto Exchange and Mining Farms After Going Public

Hangzhou-based crypto mining company Ebang International Holdings Inc. is all set to launch its crypto exchange platform. The mining giant has decided to expand its business into the digital asset exchange because of the consistent loss in their business.

A regular drop in the bitcoin prices becomes a headache for crypto mining companies like Ebang. According to the resources, the China-based mining company generated a revenue of $109 million. That was a clear loss for the company.

Reports even mentioned that it has been the least number of sales since the year 2018. The sales kept decreasing after the year 2018. Ebang has provided data of its net losses during the year 2018-2019.

Ebang is about to increase its revenue up to 40% in the year 2020 with a cryptocurrency exchange that works overseas. Ebang is a china-based company where cryptocurrency trading is outlawed. The company is incorporated in the Cayman Islands.

China-based mining expert has seen a constant growth in the cryptocurrency exchanges. The CFO of the company, Chen Lei admitted the revenue can be increased to $200 million in the present year.

This new launch of the crypto exchange has doubled up the revenue remark of Ebang in just a few months after the launch. According to the CFO, it would have been impossible to achieve the target until 2022 without the newly launched crypto exchange.

The company was able to expand its business because of the IPO raise of $100 million. However, the goal of the China-based crypto mining firm was to raise $125 million. If it happens the market value of the firm will become $800

It gave new hope to the crypto giant to take the business to new heights. Ebang is also willing to expand its exchange platform overseas and also investing in new machines and technologies.

One of the parts of the plan is to set up a crypto exchange outside of the country, Chen said. Whenever the new exchange tends to work without a flaw, it will help to combat the volatility in the market. World’s largest cryptocurrency is being traded in the range between $5000 and $10,000.

Once a new platform will be available to the traders, it will be easier for them to trade at other amounts as well. This new regulatory-compliant crypto exchange will be available to everyone. The company has also decided to imply a transaction fee to earn its income from the platform.

Its rivals, on the other hand, are constantly involved in creating coins for the digital currency irrespective of the fluctuating prices of Bitcoin. Ebang is also setting out to branch its services in the advisory section. The share price of the company has also increased up to 4%.

Despite being the first mining company to go public in the USA, Canaan’s market price of a share is $2. Ebang, on the other hand, has been able to put itself at a better place with per share trade at $4.

Ebang is also willing to explore the blockchain services in other sectors such as healthcare, education, and financial services. In short, the goal of the company is to become a complete blockchain solution provider.

The company has also made it to the Nasdaq Global Market under the ticker EBON. Ebang will be the second crypto mining company to launch its crypto exchange in the United States. The first mining company called Canaan is also based in China.

It has become one of the crucial steps to help reach Ebang to its financial goal. The Nasdaq listing will not only increase its profits but also give the brand recognition in the field. It has also increased the share price of the company.

Nasdaq also offers regulatory compliance to companies that are listed under it. This credit will take Ebang a long way to operate as a cryptocurrency trading platform. Every transaction will be secure and compliant to the US Securities and Exchange Commission.

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Bitcoin Firm Teraexchange Loses Its Cftc Registration

The U.S. derivatives regulators have canceled the registration of the swap execution facility or SEF of TeraExchange, a US-based Bitcoin company. The company, which is based out of New Jersey, received the licensing back in 2016. It was among the first companies in the U.S. to receive the license to offer crypto derivatives services. In a largely publicized event, the world woke up to the news of the first Bitcoin derivative transaction being taken place on a regulated and licensed platform. It was a huge success for the Bitcoin community and was considered the first step towards the Bitcoin revolution.

Derivative trading is considered to be one of the best ways to hedge Bitcoin holding while reducing their risks. It led to the beginning of a new era where the Bitcoin derivative market could grow. It also led to large banks and financial institutions to invest capital into Bitcoin. But, the platform has not facilitated any transaction in the past three years continually. The U.S. Commodity Futures Trading Commission released a statement stating that TeraExchange, LLC, has been provided with an Order of Reinstatement. The order, which was affected immediately, was issued based on Section 5 of the Commodity Exchange Act and also the CFTC Regulations 37.3(b) along with 37.3(d).

TeraExchange was one of the first companies to be offered a Bitcoin swap agreement in 2015. It laid out the legal framework that allowed any two parties to exchange their cryptocurrencies based on certain standard terms. The regulatory body found that the decision was taken after the company failed to stop wash trading and also prearranged trading on its platform. The CFTC came to know about two suspicious offsetting transactions but was told that it was just to test their systems. But, the very next day, the company released a press release informing that the first Bitcoin derivative transaction took place on the exchange. Since CFTC sees such transactions and its publicity as a violation of their rules, TeraExchange was asked to clarify its stand. The company did not admit or deny any wrongdoing and settled those charges with CFTC without paying any fines.

SEFs work under CFTC’s regulations if they want to clear any OTC products such as OTC interest rates or credit swaps. The new services were included in the draft as part of the Frank Act and Consumer Protection Act (2010). According to this, the NDFs are financial establishments that needed clearing from the regulatory body. It helped the government in providing pre-trade and also post-trade transparency. In the past, the U.S. regulatory body has issued licensing to many blockchain start-ups and companies. But it was not just the crypto market where the facility did not take off. Only a few of the big companies are now operating in the market, such as CME Group, ICE, Tullet Prebon, and Bloomberg. Here, Bloomberg has about 50 percent of the total swap trade market.

There are other companies such as LedgerX that are not careless as TeraExchange. The company is already taking multiple steps and going beyond what is expected from them to ensure compliance with the regulation. Apart from registering themselves with the SEF, they have also registered themselves with the derivatives clearing institution. Even though the company already has the SEF registration, it is not yet ready to launch its services. Once they have both the licenses, they would launch themselves in the market. Thus, even with the setback of TeraExchange, the future of bitcoin derivates looks good.

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How Is Cryptocurrency Going To Be Regulated In The Eu?

The European Union, even in the very recent past, did not have any regulations on cryptocurrencies. However, the European Commission, the EU’sEU’s executive arm, has come up with regulations to overlook the cryptocurrency world, which is believed to be a significant step for monitoring digital assets.

What kind of regulations are expected?

The leaked European Commission draft suggests that every cryptocurrency should be treated as any other regulated monetary instrument. As per Markets in Crypto Assets (MiCA), new rules on digital assets custody and the capital requirement will be provided. The regulations would also define the relationship between the token issuer and the token holder with proper guidelines to file complaints against projects.

The idea of a regulatory sandbox initiative for companies developing infrastructure for trading and settlement of digital assets has also been highlighted in the proposal. The new regulations aim to give legal certainty to the issuer of the digital assets simultaneously, reducing the risk of the investors.  

As per the proposal laid down by the commission, the cryptocurrency developers should issue “white paper” providing detailed information about the issuer, the token, and the trading platform so that it becomes easy for the potential purchaser to make an informed decision and also understand the risk related to his investment.

These documents are to be vetted by the EU regulators before the issuer commences the operation. The draft also highlights that the European Banking Authority (EBA) shall be empowered with rights to carry on site investigation and impose fines up to 5 percent of the total annual revenue of the crypto firm or double the amount of the profits gained by these cryptocurrencies because of the violation of the guidelines.

One of the main aims of regulating cryptocurrency is to reduce market fragmentation. The new regulation suggests that the cryptocurrency companies authorized by any of the 27 countries under the European Union will be able to operate across all other member states.

How would the Cryptocurrency world react?

Experts think that the regulations will bring hindrances in the growth of the cryptocurrency world. With a community of 2.7 billion people, Facebook’sFacebook’s Libra is a concern for the regulators. Backed by Central Bank issued currency like U.S. Dollars and government debt, the stablecoin could enable money laundering and destabilize monetary policy while jeopardizing user privacy.

The final word

The regulation update is based on the leaked 167 page draft by the European Commission. It is, however, going to see the light of the day by this year. If passed, MiCA would turn the European Union into the largest and most regulated space for cryptocurrency across the world.

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China Plans To Use Its Digital Yuan At The 2022 Winter Olympic Games

In another fantastic news coming from the crypto world, it is being said that China is ready to use its digital version of Yuan in the Winter Olympics in the year 2022. If the news is real, the blockchain technology and the development of digital currency has increased its pace, especially in a regressive country like China. Although the details of the launch and the way it will be managed is still not exact, it can be seen that China is moving towards the use of digital currencies and blockchain technology.

What’s the buzz?

As per the news, the People’s Bank of China is trying to introduce its digital currency in the Chinese market by the end of 2022, and it is almost confirmed that the new digital currency will get its introduction in the Winter Olympics in 2022.

A Reuters report said that the head of the monetary policy in China has still not decided about the timeline of the roll-out of the digital currency. But, the report claimed that it is sure that the money will be rolled before the Winter Olympics game begins so that the cash can be easily used during the Winter Olympics.

The news is spreading like fire all around the world as the most regressive country of the world has decided to roll out the digital version of Yuan. When this article is written, the Central Bank of China is conducting different types of trials for the roll-out of the digital Yuan. As confirmed by the central bank, the digital version of Yuan is put to practice in the regions of Beijing, Tianjin, Hebei, and Hong Kong’s more significant Bay areas.

What’s the detailed statement?

As per the statement made by the Central Bank of China, it has been said that they are presently testing the digital Yuan for only small transactions and not for biggest transactions. As different rumours spread in the market, the Bank official also clarified that the digital Yuan would be a legal tender and it can be easily converted into banknotes at the ratio of 1:1.

Although not much has been explained about this plan and roll-out of digital Yuan by the Chinese government, the crypto world is welcoming this step by China. The launch date and the use case of the digital Yuan are still not clear, and we can just wait and watch the effectiveness of this step taken by China.

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Romania Is on the Way to Blockchain and Crypto Regulation

Romania had set up its first Bitcoin ATM in 2014, and yet it has been years since the Blockchain and the Cryptocurrency market have been brought under a legal framework. Even though it looked like that the country had shown an early interest in cryptocurrencies, the lack of regulatory framework even after so many years proved otherwise. But, it is expected to change soon as Romania now has a blockchain and crypto regulation framework in place. 

Cryptocurrencies are highly encrypted and allow people to transact with anonymity. It has led to the crypto sector to become a breeding ground for criminals. Many of them have continuously been using the platform for tax evasion, money laundering, and other illegal activities. To prevent the use of cryptocurrencies for cyber crimes or money laundering, the Romanian Government has carried out an Emergency Ordinance. According to the new rule, all crypto exchange service providers and digital wallet providers will be required to register themselves and seek prior approval from the Government to be able to continue offering their services. 

There is no uniform regulation for Blockchain and crypto currently in the European Union, and all its members are free to set up their own framework. There is a Fifth Anti-Money Laundering and Terrorism Financing Directive, in short, 5AMLD, that applies to entire Europe, but Romania would want to take it a step further. The 5AMLD was created to help bring transparency in crypto transactions to combat the misuse of cryptocurrency. In addition to the current 5AMLD regulation, the Emergency Ordinance introduced by the Romanian Government is set to progress the already set 5AMLD agenda. 

The Emergency Ordinance will need all of the crypto exchange providers that handle purchases and selling of different digital currency to have the authorization to be able to function in Romania. Even the providers currently operating in the European Economic Area will not be allowed to operate in Romania till they get a proper registration process as decided in the new directive.

The service provider will need to apply to the authority and verify that they are complying with all the policies in the country where they are based out of. Besides, it also needs a permanent agent to be present in Romania that can get in contracts with foreign companies and are also able to represent them in the court of law. Anyone who does not follow the given guidelines will not have radio, TV, and internet access in Romania. 

Even though 5AMLD and GEO were introduced to combat its use for any illegal activities, the new framework might also work as a hindrance for many start-ups to continue their operations. They feel that the new system will make it difficult for them to operate in the country as they are unable to meet all the requirements that are set up by the new rule. Thus, there is a need to look at the rules again and ensure that they do not become a hindrance to the growth of crypto firms and instead help the crypt industry to grow and flourish in the country. 

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Trump’s Former Sanctions Chief Joins Major Crypto Firm Chainalysis

A former key executive at the United States Department of Treasury, Sigal Mandelker has joined Chainalysis. She will be working as an advisor in the firm. Chainalysis is a major cryptocurrency investigation firm.

The official announcement was made on July 7. Mandelker has joined the board of advisors in Chainalysis. This participation has also increased the Series B funding round of the firm to $49 million.

Mandelker’s Blockchain Experience

Mandelker left Trump’s White House in October 2019. Chainalysis will be her first public sector work since she has left her position as a treasury executive in the States. She will meet Chainalysis team to give insights on crypto crimes and its investigation.

Chainalysis works on cryptoanalysis and provides transaction data to major federal agencies like FBI and Internal Revenue Service. According to Mandelker, law enforcement will play a crucial role in the future of the industry.

Mandelker’s Achievements

She has been a part of some major investigations in the United States including three hacker groups of North Korea. These groups were involved to rob billions of dollars in cryptocurrency. Mandelker was also a part of the investigation on an illicit digital currency platform “E-Gold” in 2008.

The CEO and co-founder of Chainalysis, Michael Gronagar said that Mandelker’s contribution to the cryptocurrency sector will help it evolve further. Sigal has a wealth of knowledge and it will be leveraged by the firm.

Chainalysis Is Expanding To $49 Million After Raising $36 Million In The Beginning

After joining hands with Mandelker, Chainalysis has entered into the Series B of $49 million after hitting the first investment of $36 million in February 2019. Major capital giants including Accel have invested in the startup.

Chainalysis also raised $13 million from a venture capital firm Ribbit Capital. This venture capital has also invested in major crypto startups including Robinhood, Coinbase and more.

According to a report, Sigal also joined Ribbit Capital in early 2020 as a general partner. Apart from the other fundraising, Chainalysis is also able to raise an additional fund from Sound Ventures.

This venture capital firm is founded by actor Guy Oseary and Ashton Kutcher. Sound Ventures has also invested in a Bitcoin rewards company called Lolli in May 2020.

This is not the first time when a regulator has joined a private cryptocurrency firm. Along with Mandelker, there are some examples of this trend. For example, Juan Zarate joined Coinbase as an advisory board member, Ben Lawsky joined Stone Ridge Asset Management LLC, and Chris Giancarlo joined Ripple.

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Displacing the US dollar: The Greenback Still Rules as Digital Currencies Pose Challenge

Since the end of WorldWar II, the global financial system has been revolving around the US dollar. The Bretton Woods Agreement, signed in 1944, standardized the US dollar to unchallenged hegemony. Today, several economic experts believe that the greenback’s domination is on its decline.

America’s decrease in share in the global trade, China monetary expansion with full might, centralized and decentralized cryptocurrencies, and the expected digitization of currencies are factors threatening the dominance of the greenback.   

The US government has been exploiting its position of being able to mint the globally-centered currency for a long time. It gives the US a huge advantage over other world economies.  The US pays for imports with its domestic currency and has no balance of payments problems. It faces no hassles to finance its deficit account.

The country has been able to overspend for decades now because of the dollar’s strength. As the demand for dollar liquidity in the global banking system is endless, the US gets access to cheap credits. Other than benefiting itself, the US can also leverage the greenback’s dominance to deny rebel nations’ access to the financial order.

The Trump administration has moved against adversary countries like China and Iran by ramping up financial sanctions against them. However, many experts believe that exploiting the dollar’s position to inflict economic damage to adversary countries can have serious economic repercussions. Dissatisfied nations like Russia and China are in the pursuit of the de-dollarization of their economies.

It’s also true that no nation will opt for an alternative medium of exchange if it can’t match the efficiency gains of the old system. The imminent rise of CBDCs could threaten the dollar’s hegemony as they could provide a more convenient system. Market observers believe that China can be a potential threat to the greenback’s power if they can leverage the utility of its digital currency framework and its extensive economic influence.

Many financial pundits also are considering a situatn where a common global cryptocurrency gets developed. Decentralized currencies like Bitcoin and Ethereum can also be accepted by economies as foreign reserves in the future.

The problem with the dominance of any country’s currency in the financial market is that the nation in control can always leverage its position. The only way to disarm a country from weaponizing its position in the financial system is to switch to a politically unprejudiced currency. Many believe that the US-China political standoff can lead to the development of a neutral solution.

Bitcoin’s algorithmically limited supply and its concentration among a few quadrillionaires are some of the hurdles that Bitcoin faces in its getting accepted as the reserve currency. It may also be possible that the development of multiple greenback substitutes leads to an agreement where no single currency holds the hegemonic position.

An opinion resonating with most financial experts is that Bitcoin has the best shot at ousting the US dollar from its dominance status. USD is still the ruler of the world’s financial order, and only time will tell if digital currencies can displace it from its hegemony.

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Crypto Valley Association to Publish its Trusted Key Ceremony Guidelines

The world’s leading ecosystem for blockchain technology and global cryptocurrency, the Crypto Valley Association, has announced in a press release that it would be publishing what it refers to as the Trusted Key Ceremony Guidelines. The Cybersecurity Working Group, a wing of CVA, has taken the initiative to launch the guidelines to improve and spread the awareness among the masses about the significance and ways of protecting digital assets, securely and safely.

The guidelines were showcased and demonstrated during a free online event on 7th July 2020. The event was named ‘Demystifying Key Ceremonies’ and was hosted by the Cybersecurity Working Group. Some of the leading contributors in the event included Taurus Group and Ledger Vault, who are the leaders in offering digital asset custody software and technology. Auditing and financial powerhouses like PwC and SEBA Bank also took part in the event as a contributor. The event was aimed at exploring ways to define the best practices to safeguard digital assets. The event also paved the way for the Crypto Valley Association to consolidate its position in the cryptocurrency world as a leading global hub for blockchain technology.

The guidelines are designed by the experts at the Cybersecurity Working Group. They have extensive experience in designing, reviewing, and operating the key ceremonies for firms that are active in the blockchain ecosystem. Markus Perdrizat, Chairman of CWG and also heading the Blockchain Risk Assurance at PwC, Switzerland, said that a considerable portion of the financial assets is being tied to cryptocurrencies these days.

It has raised the need to define best practices and standards pertaining to key ceremonies for blockchain technology and cryptocurrencies. The key ceremony marks the beginning of the security of any financial assets or when the creation of cryptographic secrets takes place. Mark reiterated that once the cryptographic codes are created, it is essential to uphold the best security standards from then on. It is, for this reason, the new set of guidelines that were needed and unveiled.

The primary responsibility of the Cybersecurity Working Group is to not only define the best practices and security guidelines for cryptocurrencies and blockchain technology but also to ensure its adoption in the market. The Cybersecurity Working Group also acts as a forum for discussion and ideation for blockchain-based companies and products in the Swiss market while promoting the adoption of the same in the global marketplace.

Emi Lorincz, Crypto Valley Association’s board member, also mentioned about the key role played by CVA’s Cybersecurity Working Group towards setting best practices and security standards with respect to key management, product development, security audits, and other key aspects of the blockchain ecosystem. The publication of guidelines by CVA reflects upon the efforts of the organization and its commitment to strengthening the security levels in the cryptocurrency space.

The unreferenced approach by practitioners to date exposed many vulnerabilities in the blockchain ecosystem that needed to be addressed. It was also needed because of no set security standards or guidelines for best practices. By defining the set standards to be followed by experienced practitioners as well as new entrants to create secure and safe key ceremonies, not only the security levels be enhanced, it would improve the existing processes in place as well.