The South Korean government reportedly plans to soften its crypto regulations in line with the policies set by the G20 nations in an effort to create “unified regulations.” The Korean regulators have also agreed to apply the standards set by the Financial Action Task Force to its crypto policies.
G20’s Unified Crypto Regulations
South Korea is reportedly planning to follow the policies set by the G-20 nations and soften its crypto regulations, the Korea Times reported.
The G20 is an international forum for the governments and central bank governors. Its members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States, and the European Union.
The top financial policymakers of these countries have agreed to acknowledge and regulate cryptocurrencies as financial assets, the news outlet noted, elaborating:
Financial policymakers of G-20 nations have set a July deadline for the first step toward ‘unified regulations’ of cryptocurrencies. One reason for the move by the G-20 is that they see cryptocurrencies as ‘too small to jeopardize’ financial markets. The combined market value of cryptocurrencies is less than 1 percent of the global GDP.
Financial Action Task Force Standards
While the G-20 classifies cryptocurrencies as financial assets, the Korean government has earlier classified them as non-financial products due to their speculative nature. Acknowledging the differences, the country’s Financial Supervisory Service (FSS) was quoted expressing:
It’s almost certain that cryptocurrencies will be classified as assets and the main issue will be centered on how to regulate them properly under the unified frame that will be agreed upon between G-20 nations. Given the current stance, this isn’t good, but we will step up efforts to improve things.
South Korea has also agreed to apply to cryptocurrencies the standards of the Financial Action Task Force (FATF), an inter-governmental body formed to fight money laundering and terrorism financing, the publication conveyed.
Softening Crypto Policies
Recently, the new FSS chief indicated that he will ease the country’s cryptocurrency regulations. Governor Yoon Suk-heun said there are many positive aspects of cryptocurrencies, promising to release updates on this issue in the near future.
Meanwhile, the country’s National Tax Agency has been collaborating with the finance ministry to collect tax data in order to establish crypto tax policies. While cryptocurrency transactions are currently tax-free in Korea, crypto operators are required to pay income taxes, the news outlet detailed.
Despite the new FSS chief suggesting an easing of crypto regulations, his department has launched an investigation into crypto exchanges, in collaboration with other related authorities. In March, the prosecution arrested four employees of crypto exchanges including the CEO of Coinnest. Last week, they started investigating the country’s largest crypto exchange, Upbit. This week, three people were arrested from HTS Coin exchange for alleged fraud and embezzlement charges.
All You Need to Know About Token Curated Registries
One thing that has become increasingly common throughout the crypto ecosystem is a Token-Curated Registry (TCR). This decentralized listing methodology plans to solve many issues that exist with lists today (credibility, bias, and trolling). This article will give a brief overview of what exactly is a TCR and why they are increasing throughout the crypto-sphere.
The Utility of Token-Curated Registries
The product of a TCR is a list. Lists that prove to be useful are always adequately curated (a top-colleges list to pick the best school to attend or the best movie list for some entertainment). If, for example, the best movie list could be accessed and edited by anybody at any time, the list would become an all-movies list and would cease to be useful.
The intrinsic tokens of token-curated registries are necessary elements of these self-sustaining systems which are used as public utilities. A TCR uses its internal tokens to assign curation rights proportionally to the relative token weight of each parties tokens. As long as there are parties who want to be curated into a given list, a market can exist in which the incentives of rational, self-interested token holders are encouraged towards curating high-quality lists.
TCRs arecurated decentralized lists with intrinsic economic motivations for token holders to curate the content of each record. Self-regulation continues increasingly essential attribute to an ecosystem. When something can regulate itself, it must be running pretty efficiently. TCRs are incentivized self-regulating decentralized lists that will prove to be of much higher-quality from the lists produced by older traditional methods.
Three Types of uses in a TCR
There are three different user types in a TCR. Each class has its unique, rewarding incentives and has various interactions with the registry itself. TCRs are indeed a win for each of the three types of its users as consumers look for high-quality lists, candidates want to be included in such lists, and token holders desire to increase the price of the tokens they hold.
High-quality research most always leads to a high-quality purchase. No matter what market you are in, consumers want high-quality information about the products they are purchasing. When consumers make a purchase based on their trust in a list and they are disappointed in the product, not only are consumers let down, but they lose faith in advertising, businesses, and institutions as a whole. TCRs will help prevent consumers from being let down from low-quality lists.
To be frank, candidates, also referred to as listees want the attention and consideration of consumers. By being listed, they receive that desired attention and compensation from the consumers. Being listed on a TCR gives the consumer even more confidence in considering their product.
Both token holders and candidates want to keep demand for the token high, as this increases its price. They keep demand for the token high by producing high-quality lists, continuously. If listing qualities are high, then consumers will more likely be interested in the registry, resulting in an increasing desire for candidates to be listed on the record, which will increase demand for the tokens. This means that there is a direct financial benefit for token holders to curate the lists expertly.
Incentives from TCRs
To make a TCR function properly, candidates must make a deposit of the registry’s intrinsic token to be considered for listing. If a candidate passes the vetting process and is deemed “good,” then they are listed. However, candidates may keep this deposit or withdraw it at any time should they have a change of heart over being listed. If a candidate is deemed to be “bad,” that candidate’s application is given to token holders to challenge.
If challenged and then rejected, that candidate’s deposit is forfeited and divided to the token holders who participate in the challenge process as a reward.
This deposit policy will prevent Candidates from applying who will be rejected, as this financial loss will work as a deterrent. A movie which had no awards and only 50,000 views in theaters its first year is not likely to be admitted to the registry of best films of the year, and like any rational person, they should not bother with a pointless application.
What may seem like a disadvantage, is genuinely and advantage as token holders have an incentive to challenge and reject every candidate to their registry in the interest of increasing their holdings, while better reviewing candidate’s applications. It is indeed in the best interests of token holders to behave strategically and curate high-quality lists.
Processing Candidate Applications
The listing application process begins when the candidate makes the required deposit in the registry’s intrinsic token, and that deposit is kept for the duration of the listing. After an application is submitted, there is a period during which an application may be challenged. If this period passes without a challenge against the form, the candidate becomes a listee.
If an application should be challenged, the candidate’s application status is determined then by the result of the challenge. By carefully reviewing candidates, TCRs may show to be genuinely reliable lists.
How to Challenge an Application
A challenge may be initiated against candidates in the challenge stage, and against listees as well. A problem starts with a token holder staking a minimum deposit of against an application or listing.
When a challenge has begun, a snapshot of the registry’s current parameters is stored with the problem. Then, the vote starts and any token holders may participate in the vote even if they were not a party to the challenge. When the vote has reached its conclusion, either the challenger or candidate’s deposit is forfeited. A percentage of the lost deposit is awarded to the winning party as compensation for that party’s capital risk in their original challenge deposit.
The rest of the forfeited deposit is distributed to the winning voters in the majority according to token weight. Token voters in the minority group neither lose tokens nor receive any reward as the network wants everyone does make a vote without being discouraged from having an opinion separate from the majority.
If the challenge was made against a candidate’s application, then at its conclusion the candidate may or may not become a listee. If the challenge is against a listing, however, then the challenge’s completion will determine whether the listing may or may not be deleted.
This helps prevent low-quality candidates from making a list, but it also helps remove listees when their product is no longer of high-quality.
Whether or not an application is accepted or whether a listing is deleted is based on the voting process. The voting processes in TCRs are token-weighted and commit-reveal.
The token-weight proportional method is essential to give users with the most at stake the most vocal in the voting process. This incentivizes the token holders to exercise the greatest diligence as they have the most at stake. The method of commit-reveal is important not to allow the voting process to influence voters to vote in any other way than that which they feel will be most productive for the registry’s curation.
Maximum token liquidity will encourage widespread participation in the voting process.
Trust in TCRs
One of the most positive aspects of a TCR is its credibility. With the community incentives to challenge applications as well as listees, the TCR ecosystem can self-regulate and fight off many common attacks. People can be confident that TCR ecosystems help protect against trolling (a troll, for many randoms reasons, might try to add listings to a registry which do not satisfy the registry’s essential criteria), madman attacks (purchasing the majority of voting tokens and populating the registry with low-quality listings), as well as registry poisoning (when a listed entity becomes of degraded quality after being admitted to the record).
While these are just a few problems with lists in general, there are many more problems this decentralized registry will help prevent and solve shortly.
TCRs bring a new type of list to the world. A decentralized list where token holders are incentivized to challenge low-quality applications and listees, encouraging high-quality records. Consumers, candidates, and token holders all benefit from TCRs. This is a win-win-win registry system, and it is likely we will see an increasing number of them over the next few years.
Tron [TRX]’s weekly report shows steady growth and development
On 23rd July, Justin Sun posted the weekly Tron report on Twitter that covered all the projects undertaken by the Tron Foundation as well as the updates and events conducted in the Tron community.
Technical Development: Completed
Over the course of the last week, the Tron Foundation added a Transmission Control Protocol [TCP] which is a basic building block in the transmission of data between transmitter and receiver. The foundation developed a new TCP flow mechanism that allowed the network to disconnect network nodes without any flow. This ensures that data transmission occurs without any hiccups.
The foundation also tested the user based community system to ensure that there are no bugs in the system. This mechanism allows the Tron Foundation to iron out any complications in the network before a full-fledged rollout.
The Tron wallet also received a significant update with ‘theeasyTransferByPrivate’ Application Programming Interface [API] being added into the system. This add-on would allow the addition of spaces in parameters entered into the wallet.
Technical Development: In Progress
The weekly report confirmed the news that the foundation is working on completing the Tron Virtual machine [TVM]. The machine which is slated to release on 30th July will come with improved accessibility and security with an aim to propagate the use and implementation of smart contracts.
The company is also planning to remove the exclusiveness of token names which is something that users and fans have been asking for quite some time. The report also showed that the wallet is set to undergo an upgrade with the company planning to support an exchange sync-up. This feature will allow users on the wallet to trade with tokens that they have in other exchanges or wallets.
The report also gave a detailed description of all the activities and changes that were put forth by the foundation that impacted the Tron community.
On 14th July, Tron officially announced the winner list of the Crowdin Translation Reward Program that felicitated members of the Tron community who contributed in making the foundation’s work available to all. This included the addition of a Persian version of the community’s weekly reports.
Last week also saw the implementation of the Core TRONICS system with the aim to record completed tasks in Google sheets which will correspond to rewards and points within the Tron community. 14th July also saw the Bitpie announcement to complete the Tron MainNet which means users will now be able to send and receive TRX tokens via Bitpie. This was followed by the announcements by HitBTC and Koinex to support the completion of the TRON MainNet.
On 17th July 34.2 billion TRX were burned in a move backed by the foundation. The TRON MainNet is now functioning with 340 global nodes with a block height of 639.225. The report also stated that on 18th July, Justin Sun, the Co-Founder of Tron published his election manifesto to contest for the position of super representative. 19th July saw the exchanges, QUOINE and RightBTC announce their support to complete the TRON MainNet and resume TRX deposit and withdrawal.
The weekly report showed that on 15th July, TRX was topping the cryptocurrency mentions chart on Twitter according to a survey conducted by CoinTrendz. On 19th July EXMO announced that TRX will be listed on the EXMO trading platform.
Bitcoin (BTC) ETF Hype Could Be A Whale Ploy To Lower Altcoin Prices Before The Next Rally
Bitcoin (BTC) is up today against most altcoins, trading at a price of $7,700 as shown by the daily BTC/USD chart above. It seems to have met resistance short term and the price might pull back short term, but a strong FOMO for Bitcoin (BTC) is clearly visible as investors refuse to sell even under overbought conditions. At the centre of this FOMO is Bitcoin(BTC)’s long anticipated ETF (Exchange Traded Fund). This would no doubt be a big development for Bitcoin (BTC) as traditional investors would be able to invest in Bitcoin (BTC) using most of their existing brokers. However, for the rest of the market it will once again be bad news as altcoins bleed while Bitcoin (BTC) surges higher and higher.
Looking at the charts and present market conditions for most altcoins, it is clear that most altcoins have already bottomed out and are now just lingering around, waiting for the rest of the market to take off. This means that barring the approval of an ETF, an altcoin rally should be around the corner. Crypto investors who have been around for long know that at the beginning of each trading cycle, there is an altcoin rally, which is then followed by a Bitcoin (BTC) rally as most investors take profit. Given the fact that most altcoins are traded against Bitcoin (BTC) and that Tether (USDT) is seen as a risky investment, most investors take profit by converting their altcoins to Bitcoin (BTC). The result is a Bitcoin (BTC) price surge as money flows from altcoins to Bitcoin (BTC).
Bitcoin (BTC) has currently topped out according to the BTC/USD 4H chart above. Typically, what we have seen happen time and time again is that news and announcements favor the charts. In other words, if a market has reached bottom, favorable news will come out to propel the prices higher. If the market has topped out, negative news or FUD will come out to push the prices lower. In the present scenario, if we ignore the possibility of an ETF anytime soon, we are at the verge of an altcoin rally. While the ETF may or may not be announced anytime soon, it is clear that market conditions already favor an altcoin rally regardless of any news or announcements. This would make altcoins the best bet for investors looking to get a higher return on their investment.
The past few days, we have seen a decreasing number of investors who want to trade their altcoins for Bitcoin (BTC). It is plausible to assume that the recent Bitcoin (BTC) ETF FOMO was just a ruse to force investors to dump their altcoins so the whales can pick them up at cheaper prices. Now, of course when people dump their altcoins on exchanges, the whales are not going to prop the price up by buying on the same exchanges. They buy OTC (over the counter) and then let the mainstream investors push the price higher when the Bitcoin (BTC) ETF FOMO fizzles out. It is good to be optimistic but overall market conditions at this time do not favor an ETF announcement. It is likely though that a Bitcoin (BTC) ETF may be announced around the peak of the next altcoin rally.