The Financial Action Task Force (FATF) – a multi-national agency tasked with combating global financial criminal activity, will discuss developing and introducing legally binding rules for governing cryptocurrency exchanges later this month.
Reuters reports that the Paris-based agency – comprised of 37 countries – will meet with both the Gulf Cooperation Council and the European Commission in an attempt to establish legally binding regulations governing cryptocurrency exchanges.
DEVELOPING BINDING GUIDELINES
The push for the development of said guidelines comes after a call on behalf of financial policymakers from G20 economies earlier in March. The current rules, which were set back in 2015, are non-binding, making enforcement among the countries challenging and inconsistent, to say the least.
According to the guidelines which are currently in place, cryptocurrency exchanges need to be registered or licensed and they need to verify the identity of their customers in order to prevent money laundering. Yet, due to their non-binding nature, 68% of cryptocurrency exchanges fail to comply with the KYC requirements.
A government official, speaking on condition of anonymity, noted that the discussions are to begin on June 24th and are supposedly going to take a closer look at the currently existing rules and determine whether or not they are appropriate in the current cryptocurrency environment of today. The agencies will also discuss the guidelines’ application to newly founded cryptocurrency exchanges as well as how to work with countries that have already banned cryptocurrency trading.
JAPAN TO LEAD THE WAY
Japan has already established itself as a generally crypto-friendly country, working actively to provide regulatory clarity on pressing matters. Earlier this month, the Financial Services Agency (FSA), introduced a five-point agenda for regulating cryptocurrency exchanges.
Furthermore, the exchanges trading virtual currencies launcheda self-regulatory body back in April. All 16 of them took part, forming the Japanese Cryptocurrency Exchange Association (JCEA) which is supposed to be responsible for the self-regulation of those platforms.
Now that Japan is due to chair the G20 in 2020, it intends to take the lead on the current matter. Hoping that it will get the support of U.S. and European governments, Japan will be pushing for the adoption of the new and binding rules to take effect by 2019 at the very latest.
Ripple XRP Technical Analysis: XRP Spearheads Recovery, Adds 10%
Like most coins, Ripple and XRP are bullish. Not only are we seeing important partnerships that steels XRP and xRapid, XRP prices are also on a recovery path adding a massive 13 percent in the last day helping propel prices from 25 cents supports. Technically, this recovery might continue though XRP is within a bear trend as the weekly chart shows.
From the News
Standard Chartered, UBS and more than 50 global banks are some of the main players making use of RTXP and several of Ripple’s products as xCurrent and xRapid. There are several demonstrations that have shown that using xRapid and XRP for example significantly helps slash cost of transaction.
While it’s perfect for supporters, users-financial institutions can either make use of xCurrent–a solution that doesn’t incorporate XRP or xRapid, a gross time settlement solution that make use of XRP. If more business make use of the latter then XRP acting as an on demand liquidity tool will definitely gain traction inching higher from current lows.
— CryptoEspi (@CryptoEspi) August 17, 2018
That is perhaps the reason why the company is trying hard to build an ecosystem around XRP and xRapid. Recently, Ripple said they have partnered with US cryptocurrency exchange Bittrex, Mexico’s Bitso and Philippine’s coins.ph with exchanges facilitating exchange from XRP to fiat and vice versa.
Since transactions are on-chain there is guarantee of speed, safety and above all savings especially for individuals working in the diaspora wishing to send funds to their families in the US, Mexico and Philippines.
In other news, Kuwait Finance House (KFH) did carry out their first XRP transaction via xRapid. The firm is one of the biggest largest in Kuwait with a staggering market cap of $8.2 billion and trading in the country’s stock exchange.
Before concluding that XRP is bottoming and that the bear trend is finally over, the weekly chart hints of a different ball game. First, we must acknowledge that periods of extreme volatility is often followed by stagnation in price as historical prices have shown from time to time.
This is why this week’s revival is nothing new and is common following deep price erosion that saw two main levels of support (at 40 cents and 35 cents) being broken. Considering this week’s gains, we expect XRP bulls to find resistance anywhere between 35 cents and 40 cents. On the flip side, surges above 50 cents or 55 cents invalidates our bearish projection.
If that happens then we shall have a nice double bar bullish reversal pattern in the weekly chart which would conclusively mean XRP buyers are back in contention.
In the top 10, XRP is one of the top performers adding 10 percent in the last 24 hours.
After yesterday’s encouraging bullish engulfing candlestick, a three bar bullish reversal pattern is the result. That means aggressive traders can begin loading up at spot prices. In that case, stops at Aug 17 lows at 28 cents and first targets at 50 cents is ideal.
On the other hand conservative traders can wait for bulls to close above 35 cents. Thereafter, they can take longs with targets at 50 cents and later 50 cents should buyers follow through.
November BCH Upgrade Discussion Heats Up After Bitcoin SV Full Node Announcement
Blockchain development firm Nchain has announced the company’s plans to launch a new Bitcoin Cash full node client called ‘Bitcoin SV.’ Lead developer Daniel Connolly has published the specifications for re-enabling old opcodes for the November 2018 BCH upgrade. So far the unpublished codebase has seen vocal support from the mining pool Coingeek, but right now some members of the BCH community are concerned that if no other miners switch to Bitcoin SV, the proposed upgrade could cause incompatibilities.
Also read: Fivebucks.com: Meet the Freelancer’s Marketplace Powered by Bitcoin Cash
Will Bitcoin SV’s Proposal be Compatible With Bitcoin ABC?
On Thursday, August 16 the firm Nchain revealed they are releasing a new BCH full node client that’s claimed to be based on Bitcoin ABC v0.17.2, but with a few different upgrade changes added. Bitcoin SV will include restoring more Satoshi opcodes, removing the opcode per script limit, and raising the block size to 128MB. Further, the leading BCH mining pool Coingeek have stated they will be backing the new client. However, since this announcement, some BCH supporters are concerned about the upgrade coming this November. Issues could occur if groups of miners choose Bitcoin SV’s finalized consensus change proposals, which could be entirely different than the finalized Bitcoin ABC 0.18.0 version. Moreover, depending on the upgrade releases stemming from Bitcoin Unlimited, and other implementations, the Bitcoin SV client could be incompatible with any one of them.
So far the Bitcoin ABC team hasn’t responded to the latest Nchain announcement, and the ABC client release for testing hasn’t arrived. According to the ABC roadmap, after they announced the client’s upgrade changes the codebase was supposed to be delivered by August 15. Instead, the team published an article on the benefits of canonical transaction ordering with help from articles written by the Bitcoin Cash miner Jonathan Toomim, and Joannes Vermorel’s study on the process. So at the time of writing the latest 0.18.0 Bitcoin ABC version is two days late. Furthermore, if v0.18.0 contains canonical transaction ordering, the enforcement of minimum transaction size, and the activation of OP_CHECKDATASIG and OP_CHECKDATASIGVERIFY, it will not be compatible with SV’s framework for November.
Bitcoin SV’s Lead Developer Publishes Re-Enabling Old Opcode Specs
The Bitcoin SV client’s lead developer, Daniel Connolly, has published a document of specifications concerning the SV clients’ re-enabling old opcodes. The Bitcoin SV version 1.0 document details that in May of 2018 a few disabled opcodes were re-added to the Bitcoin Cash scripting engine, and this November SV will introduce four more opcodes.
“The scope of that change was limited in order to focus developer attention rather than attempting to reintroduce all of the disabled opcodes at once,” explains the Bitcoin SV spec sheet published on August 17.
This specification expands upon that change by reintroducing additional opcodes — The specifications describe the opcodes that will be added in the November 2018 protocol upgrade.
The re-enabled opcodes will include:
- OP_MUL — Multiplies two numbers
- OP_RSHIFT — Right shift b by n bits
- OP_LSHIFT — Left shift b by n bits
- OP_INVERT — Bitwise NOT
The Ultimate Decision Will Be Made With Hashpower
Essentially the ultimate decision making will be in the hands of the miners if they want to upgrade the block space to 128MB, or follow through with ABC’s plans. At the moment there are many different takes on this situation from a wide variety of BCH supporters. Some agree with Coingeek and Nchain and want to raise the space available in blocks, while others believe there isn’t a need for the increase, because current 32MB blocks are not yet being filled. Discussions concerning the matter have increased exponentially on BCH-centric Slack and Telegram channels, Twitter, and Reddit forums.
A lot of BCH supporters believe that ultimately those who have hash power will have the final say in this debate and miners will choose which client they plan to use. Some BCH proponents are not too concerned with the possibility of incompatible clients just yet, because as far as ABC v0.18.0 and SV 1.0 are concerned, neither client has finalized plans for November’s upgrade. As mentioned above the ABC code is not ready yet and the SV 1.0 codebase plans to launch this September.
News.Bitcoin.com briefly spoke with Bitcoin XT developer Tom Harding about the recent Nchain announcement and he explained the XT client will follow the majority hashrate.
“XT hasn’t been a driving force behind any of the forking change proposals this time around — We’ve been focusing on non-consensus 0-conf work,” Harding explains.
Regarding consensus changes, our intention is to support what the majority of hashpower wants to do — We’re also thinking about how best to know what BCH miners actually want.
What do you think about the Bitcoin SV client and the possibility of it being incompatible with Bitcoin ABC’s November upgrade? Which upgrade proposals would you like to see finalized? Let us know your opinion on this subject in the comment section below.
Bitcoin Permabull Pantera Capital Details $175 Million Crypto-Fund
Cryptocurrency- and blockchain-focused investment fund Pantera Capital is aggressively pursuing its belief in the burgeoning asset class as it seeks a mammoth $175 million in investments from institutional investors for its third crypto venture.
Pantera’s Cryptocurrency Push
According to TechCrunch, the technology-turned-blockchain investment group is forming its third investment fund in five years, following a $13 million debut effort in 2013 and a larger, $25 million fund in 2016.
Pantera partner Paul Veradittakit noted the enormous amount represents the “fast-moving function” of the digital asset sector, citing tremendous opportunities, talent and late-stage investments coming in the space. The multi-millionaire investor also highlighted that Pantera wishes to “move with the market.”
While the investment is not capped at $175 million, Pantera has raised $71 million from 90 different investors at the time of writing, according to an SEC filing.
Contrary to the panic investing most amateur cryptocurrency investors succumb to, Pantera follows a traditional venture fund approach to the cryptocurrency space–which chalks out a 10-year investment period, clearly defined economics and several rounds of background checks before purchasing equity.
However, in 2017, Pantera deployed a risky ICO fund to capture the turbulent market’s most volatile asset class. At the time, founder Dan Morehead called the move a “discount” purchase when the project is “just a team and a white paper.”
Morehead added Pantera helps provide the “right connections, whether in terms of marketing or recruiting or business development” to deserving ICO projects.
Ease of Investments
Meanwhile, Veradittakit said the Pantera fund has an indefinite fund life, meaning investors are free to exit their investments without affecting the fund’s operations.
Pantera’s cryptocurrency gamble has evidently paid off. As reported by CryptoSlate, the fund amassed returns over 10,000 percent throughout the years by investing in and trading bitcoin. In addition, the incubator arm of Pantera leads investments in altcointrading on high-volume exchanges, utilizing an algorithmic trading approach.
As Veradittakit puts it:
“If you aren’t sure that Bitcoin will remain the dominant cryptocurrency, or you’re interested in other use cases that may arise, or you just want to build a diversified portfolio of assets that have asymmetrical returns as bitcoin, or maybe return even more because they feature lower valuations.”
Although Pantera’s investment approach is risky given the origin of the cryptocurrency market and a stark lack of regulations, the companies it selects after careful vetting have become some of the sector’s biggest names.
Pantera’s investments include Ripple Labs, bitcoin vault service Xapo, payments application Circle and bitcoin wallet Abra, among others. The fund refers to its investment portfolio as “coinbases of different geographies, in enterprise-related blockchain companies.”