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IAMAI Makes Headway in Indian Crypto Ban Hearing

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Looks like, the tide may turn in favour of cryptocurrency exchanges in India soon. The hearing for the Reserve Bank of India (RBI), Internet and Mobile Association of India (IAMAI) and exchanges started an hour back in the Supreme Court.

Ashim Sood, who is representing the IAMAI explained why banking support was necessary. The court asked, “Can’t you change your bank such as those which aint governed by RBI?” In answer to that, the counsel responded that only foreign banks are there and exchanges use that and there would be a problem with the outward remittance which is hit by FEMA regulation.

The counsel further added that the legality of the RBI circular was in question, since there was no study done by the institution, regarding cryptocurrencies. It further said, “Banking regulation Act prescribes the exercise of power by RBI only for the inner working of the Banks and for the interest of the depositors specifically in their capacity as depositors and not otherwise. RBI taking actions for general consumer interest is beyond legality.”

The judgement summarised by the counsel stated, “RBI cant step out of its powers as set out in Banking regulation Act. Therefore its action against private buisinesses in the form of 6th april circular is illegal.”

Sood further argued that the RBI itself had admitted that it does not have the jurisdiction to speak on the legality of Crypto as it is neither coins nor currency and RBI Act and Payment Settlements Act are not applicable on Cryptos. He added that banning or regulating something must be a legislative action and that the directive to do so, should have come under the legislature and not the RBI.

The judge countered that Section 45 J conferred power on the RBI to formulate policies, but the counsel argued that this was especially for Non Banking Financial Company (NBFC) whereas the case pertained only to banks.

The judge said that there is certain speculation involved when an exchange facilitates two people to buy and sell. The counsel for the IAMAI agreed and said it was similar to commodity trade, share market etc. People have consensus on its value. Currently, the judges are being shown how cryptocurrency regulations are being formulated in other countries such as European Union, China, France, Japan, Mexico, United States of America among others.

The counsel ended his arguments by saying that he knows there are detrimental effects to cryptocurrencies, but so does every technology. The hearing ended at this point and will resume on August 20.

.Source: .cryptopotato

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Judge Rejects Multimillion Dollar Asset Plea in Vanbex Crypto Fraud Case

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A Supreme Court judge in British Columbia (BC), Canada, has denied a motion to set aside an asset freeze, which was requested by the defendants in a multimillion dollar cryptocurrency fraud case.

The defendants had filed to set aside an interim preservation order that was issued by the British Columbia Civil Forfeiture Office in order to prevent case-related assets from being sold or accumulating debt.

Vancouver news daily The Province reported the ruling on Aug. 19. According to the report, the defendants, Lisa Angela Cheng and Kevin Patrick Hobbs, stand accused of committing fraud, tax evasion and money laundering.

Alleged $22.5 million fraud via FUEL tokens

The Forfeiture Office alleges that the defendants’ companies, Vanbex Group Inc. and Etherparty SmartContracts Inc., launched and ran an investment offering with a token called FUEL, but only ever intended to pocket the proceeds for themselves.

Additionally, the Forfeiture Office alleged that the defendants received $22.5 million in crypto fraud, and were attempting to liquidate their assets in response to an investigation by the Royal Canadian Mounted Police.

The BC Civil Forfeiture Office previously seized the defendants’ Coal Harbour luxury townhouse, their two Range Rover SUVs and funds in Bank of Montreal accounts alleged to be the proceeds of the crime.

The townhouse was recently listed for sale at $5.9 million and the SUVs are worth as much as $67,500 each, per the report. BC Supreme Court judge Elliot M. Myer ruled:

“Looking at the matter overall, I do not think the defendants have demonstrated that the seizure is clearly not within the interests of justice.”

U.S. Securities and Exchange Commission wins asset freeze 

As previously reported by Cointelegraph, the United States Securities and Exchange Commission recently won an asset freeze requested from a U.S. District Court. The court subsequently ordered a temporary freeze of $8 million, which were raised by the defendants Reginald Middleton and his companies Veritaseum, Inc. and Veritaseum, LLC. The defendants stand accused of violating U.S. federal securities laws and performing manipulative trading via activities involving their Ether (ETH)-backed VERI token.


Source:cointelegraph

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OKEx blog explains why more crypto-traders are looking into sharpe ratios

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When you are dealing with cryptocurrencies and its financial ecosystem, one has to be calculative and consider volatility and major price swings as an important factor before making any investments.

Sharpe Ratio, a measurement tool which is regularly used in the traditional financial markets, allows traders and investors to assess the return on investment in comparison to the risk involved.

In a recent blog post released by OKEx exchange, it explained how the tool was essential in analyzing the risk involved while investing in virtual assets.

In the last few years, more investors have started to use Sharpe ratio to have a better understanding of risk associated with cryptos. The post explained that Sharpe ratio of a virtual asset measured the return of investment per unit of deviation in a financial asset to identify trading strategy involving the risk.

A ratio of 3.0 or higher was considered extremely positive, while a negative Sharpe ratio would indicate that the risk involved in the asset fairly surpassed the profit associated.

According to the post, out of the all the major-listed coins on OKEx, surprisingly IOST had a 30-day Sharpe ratio above 2.0 however, IOST had a negative ratio over a 90-day period which indicated higher risk in the long term.

It was also reported that BTC had a positive 90-day Sharpe ratio which was recorded to be 1.59, while XRP had a negative ratio over a 90-day period which indicated that BTC was a better investment on paper.

The Sharpe ratio is beneficial in evaluating risk of an asset but it does not dictate price movement of a virtual asset.

Source:ambcrypto

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BBC Journalist Warns Crypto Traders After Losing $30K in Critical Mistake

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A BBC journalist is sharing his story on how he lost $30,000 in Ethereum (ETH) in an effort to try and educate crypto newbies.

Business reporter Monty Munford says he decided to buy the second-largest cryptocurrency by market cap in mid-2017.

“I chose it not for any other reason than it was second to Bitcoin by valuation and looked like it could emulate that 100,000% rise. So in the middle of 2017, I made some investments, figuring that it was a long-term plan and might even become a nest egg for a pension.”

Munford says the experience was “utterly terrifying” and after buying his Ethereum, he read about the frequency of crypto exchange hacks and decided to move his crypto to a wallet for safekeeping.

He chose MyEtherWallet and obtained the private key to his holdings – the string of letters and numbers he needed to access his crypto.

But then came the crucial mistake. Munford says he wrote the private key on a piece of paper and stored it in his Gmail drafts folder, so that he could access his crypto with ease. When the price of Ethereum shot up in late 2017, he decided to check his holdings, only to discover that all of his crypto had been moved to another address.

Munford contacted the US-based blockchain forensics company CipherBlade, and sent the results to Binance.

“The following morning I was contacted by Sussex’s cybercrime unit, my local force, and within a week they had received useful information from Binance. The unit tracked IP addresses to a telecoms company in the Netherlands, but there weren’t any personal identification details to be had – perhaps unsurprisingly.

The investigations continue, and my money remains stolen.”

Crypto thieves likely used a phishing scam to access Munford’s email or used malware to gain access to his computer, monitor his keystrokes and copy/paste his activities. Either way, Munford says he’s telling his story to let others know how careful they need to be with their private keys.

“So I’m left with my fingers burned, feeling like I wandered into a savage bazaar where criminals can pick your pocket at will. And get away with it. Please learn from my mistakes.”

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