Seven South Korean cryptocurrency exchanges have passed the government security audit. Fourteen other exchanges failed to come up with a security policy that passed the test.
Among the exchanges that passed the audit are Bithumb, Upbit, Huobi Korea and Coinone. Other exchanges that satisfied the investigators were Gopax, Korbit and Hanbitco. The names of the fourteen exchanges that didn’t pass the security audit were not named by the South Korean government, but the investigators did say that these exchanges are ‘vulnerable to hacking attacks at all times because of poor security’, Coindesk Korea reports.
In a comment to Korean news outlet etnews, a Bithumb representative said that ‘We are going to continue to establish the industry’s best security system that can be safe and trustworthy and we are going to become a global business that will lead cryptocurrency exchange market by establishing a safe and trustworthy cryptocurrency exchange.’
The seven exchanges that passed the audit obtained ISMS certification (Information Security Management System), the highest certification in South Korea in that field. Exchanges that earn more than 10 billion KRW (close to $9 million) and have more than 1 million visitors daily in the last 3 months, need to obtain the ISMS certification, according to etnews.
It’s Not Up to Facebook to Decide What Libra Is, Ex-CFTC Advisor Says
“Is it a security? Is it a commodity pool? Is it a payment token? Is it a utility token? It’s a particularly important question … not just domestically, but also internationally.”
So said Jeff Bandman, a former fintech advisor at the U.S. Commodity Futures Trading Commission (CFTC), speaking to CoinDesk about Facebook’s Libra cryptocurrency in a live broadcast on Tuesday.
Stressing, “one of the most important question about Libra is what it is,” Bandman suggested there could be a long way to go before a decision is made by regulators over Facebook’s Libra, and how it’s classified will not be Facebook’s call in the end.
“It’s not as if Facebook can just select the category itself identifies with … and regulators will just agree to it. They [the regulators] will look behind the scenes, not just the form [of Libra], but the substance and function, and they will decide what it is.”
While an advisor at the CFTC, Bandman founded LabCFTC, the agency’s in-house unit dedicated to emerging technologies including cryptocurrency.
His comments come just a day after former CFTC chairman Gary Gensler argued in prepared remarks to the U.S. House of Representatives that in his view, Facebook’s Libra appears to be an investment vehicle, is thus a security, and should be regulated as such.
However, Bandman argued that, given Facebook’s ambitious is to reach its customers at a global scale, definitions of the token will likely vary.
“If Libra is a payment system, the payment system regulators are typically the central banks,” Bandman said. “And then you have to look at all the countries Libra is potentially being used or deployed. They may all have slightly different definitions. Maybe in the U.S., Libra is considered as a security, but maybe not in Switzerland.”
The types of regulators that are most concerned with the Libra project are those whose mandate is to look after financial stability, Bandman indicated.
“For the last a couple of years, different groups have looked at crypto assets and generally concluded they are not a threat to financial stability because they are small,” he said.
“But now all of a sudden you have a platform with 2.5 billion users. Anything that it does will necessarily be large. That doesn’t automatically mean it becomes a threat to financial stability. But because this is on such a scale that if this thing gets off the ground and launches, there could be financial stability implications on day one.”
Elsewhere in his remarks, Bandman also raised concerns over Facebook’s banning of crypto-related ads on its social media platform while developing its own token behind the scenes.
Facebook unveiled a policy in January 2018 to ban ads related to initial coin offerings and cryptocurrencies. It eased the ban by requiring a pre-approval process for certain types of ads in June 2018 and further softened the policy in May this year (just weeks before its unveiling of Libra).
“Something I personally find troubling is, Facebook, for a period of over a year, banned crypto ads while working on their own cryptocurrency,” he said, concluding:
“Instead of investigating on Libra, maybe people should investigate on that. That sounds to me like a … uncompetitive behavior.”
Bandman joined other speakers talking with CoinDesk in a live broadcast to unpack Facebook’s hearing at the Senate Banking Committee on Tuesday where the firm addressed lawmakers’ concerns over its ambitious Libra project.
Cryptocurrency market update: Bitcoin plunges below $9,500, Ethereum and Ripple bleed
- Bitcoin tanks massively on the day Facebook appears in front of the U.S. Senate.
- Ethereum failed to find support at $200 extending the losses to $190 (new July low).
- The bear pressure has sent XRP back under $0.30 hitting lows of $0.2834.
Bitcoin is leading the rest of the market in fresh declines that have struck the crypto market in the evening (GMT) session on Tuesday. The crypto carnage comes after Bitcoin recovered from a slide under $10,000 where it had found support at $9,800. BTC/USD hit highs above $11,000 before starting to trim the accrued gains.
BTC/USD 15-mins chart
Bitcoin is currently trading at $9,613 following an 11.5% loss on the day. The bearish wave was not unique to Bitcoin only as Ethereum and Ripple have fallen victims to the selling pressure as well.
Ethereum market update
Ethereum failed to find support at $200 as discussed in the market update.The price extended the declines to lows at $190. With a loss of 13.2%, ETH/USD is exchanging hands at $197. The prevailing trend is strongly bearish. However, it is essential that the bulls push the price above $200 to avoid further declines.
Ripple market update
Ripple, on the other hand, is trading 6.87% lower on the day after correcting from an intraday high around $0.3192. The bear pressure has sent XRP back under $0.30 hitting lows of $0.2834. Meanwhile, there has been a slight correction upwards to the current market value at $0.2924.
Tether Accidentally Minted $5 Billion of Its Stablecoins, Then Deleted Them
Stablecoin issuer Tether accidentally created $5 billion-worth of its USDT stablecoin at the weekend, before promptly destroying them again.
The mess-up occurred when the company was helping cryptocurrency exchange Poloniex conduct a chain swap, moving tethers from the Omni to the Tron blockchains, according to Tether CTO Paolo Ardoino.
Ardoino explained in a tweet on Saturday:
“Tether is issued on multiple chains (Omni, ETH, ..) When @bitfinex receives too many deposits for Tether-Omni and then users want to withdraw Tether-ETH, @bitfinex sends back to @Tether_to the Omni ones and gets back the same amount in ETH.”
In another post, he explained that the error had occurred because there had “been an issue with the token decimals” when when preparing the issuance for the swap.
Poloniex, which is owned by crypto finance firm Circle, confirmed the error in its own tweet, adding, “An incorrect amount of USDT was accidentally minted, and this has since been resolved to the intended value.”
The mistakenly issued coins have now been destroyed, or “burned,” with Ardoino providing links to the burn transactions here (4.5 billion USDT) and here (500 million USDT).
Ardoino (kind of) apologized for the error in yet another tweet, saying:
“Unfortunately we have to play with different toolchains across multiple [blockchains] and sometimes issues happen. We’re working anyway to prevent this from happening in the future.”