Federal Bureau of Investigation Director Christopher Wray says cryptocurrency is a “significant issue” that is likely to become a “bigger and bigger” problem for the law enforcement agency.
Speaking in front of the U.S. Senate Homeland Security and Governmental Affairs Committee on Tuesday, Wray responded to questions from U.S. Senator Mitt Romney (R-UT) about cryptocurrency, law enforcement and terrorist deterrence, saying:
“We are looking at it from an investigative perspective, including tools that we have to follow the money even in this new world that we’re living in.”
Wray supported Romney’s line of questioning concerning terrorist financing, saying that U.S. adversaries are becoming “more facile with technology and particular various types of technology that anonymize their efforts.”
It’s not just crypto, however. Wray noted encryption is touching every aspect of emerging tech such as instant communications:
“Whether its cryptocurrency, whether it’s default encryption on devices and messaging platforms; we are moving as a country and world in a direction where if we don’t get our act together money, people, communication, evidence, facts, all the bread and butter for all of us to do our work will be essentially walled off from the men and women we represent.”
In 2018, the FBI said it had an estimated 130 cases involving crypto under investigation, from human trafficking to ransomware. And, this May, the FBI shut down DeepDotWeb, a dark web market place which solicited some services in cryptocurrency.
See the relevant excerpt from the hearing below:
Royal Bank of Canada launching new cryptocurrency trading platform: Report
While Canada is still contemplating its position on issuing its own digital currency, the Royal Bank of Canada [RBC] is reportedly taking steps towards setting up a cryptocurrency exchange, while enabling cryptocurrency accounts for its users.
According to a report by The Logic, the yet-to-be-launched platform would expedite crypto-related activities like purchases and sales, along with the transfer of funds. Further, the opening of bank accounts having cryptocurrencies is also under the purview of the bank. This would make RBC the first Canadian bank to set up a cryptocurrency trading platform.
Washington D.C-based firm, Rimon Law’s Marc Kaufman, pointed out that,
“I can’t think of one of the big banks anywhere in the world that has a patent that directly relates to a crypto exchange.”
RBC has been using blockchain technology for a while now, with the bank revealing in 2017 that it was utilizing the technology to facilitate cross-border payments between Canadian and American banks. According to the report, the bank has reportedly applied for four patents in Canada, as well as in the United States, while elaborating on how it would integrate digital assets into its operations. Last month, the patent application filed in the U.S became public, with the same focused on how banks could utilize the privileges of cryptocurrencies.
One of the patents read,
“To individual users, managing cryptographic keys and transacting with different cryptographic assets can be a challenge. In some situations, cryptographic asset transactions may take time to be confirmed, and/or may not be compatible or supported by merchant systems or point-of-sale devices.”
While Canada hasn’t affirmed the launch of its public digital currency, the bank’s latest move could be beneficial to the cryptocurrency ecosystem in terms of adoption.
Weekly Technicals – A mixed start
The cryptocurrency markets started the week with the mixed sentiment, as the prices of bitcoin dipped to 8700 areas over the weekend before rebounding to 9000 levels. That came two weeks after the massive rally that sent the leading crypto from 7300 to 10500. We’ve only seen muted actions during the early Asia session on Monday. JJ Kinahan, Chief Market Strategist at TD Ameritrade told Bloomberg that bitcoin is going to remain range-bound for a while, and markets seem to be uncertain about what would bring bitcoin prices out of that range.
We’ve seen green across the board in the altcoin space, as major altcoins jumped about 3% during the early session. XLM outperformed its altcoin peels, as the burning of 55 million XLM tokens could continue to be a key driver of XLM in the short term.
What You Missed
- We’ve seen more central banks are opening its interest in having its digital currency, and Hong Kong is one of them. The HKMA said it has been studying the application of a CBDC and will release a report by 1Q20. That came after the SFC introduced a regulatory framework for crypto-asset exchanges in the city.
- Zhou Xiaochuan, the former governor of PBoC believes that the IMF should take over Facebook’s Libra project. During a finance conference, Zhou said: “People will question the motive of Libra as it’s initiated by a private company, it works better if it’s in IMF’s custody”.
- The trade volume of Bakkt’s bitcoin futures has hit a new all-time high. The exchanged has recorded a volume of over 15 million USD on Friday, representing 1756 BTC worth of contracts have been changed hands
- Ethereum Istanbul upgrade is getting more likely to launch on December 4. Ethereum core developer Peter Szilágyi said the upgrade is targeted for the early December launch, and it expects to make the network more secure and efficient.
Price Analysis – BTC/USD
- BTCUSD has rebounded to the lower 9000 levels after the weekend dip. Indicators show some mixed signals here.
The pair have briefly traded below the 23.6% Fibonacci Retracement before rebounding and still well above the June-October downtrend (green line). We believe the mid/long term outlook could still be positive if the price remains above that channel.
- However, the ultimate oscillator broke the recent uptrend, signalling a shift in the momentum could have been taking place, and the bias more to the downside.
- The +DM line has ticked up while the -DM line has slowed down a little. This could mean the positive momentum has picked up but only slightly.
- OKEx’s BTC Long/Short Ratio suggests that short positions have higher potential profit than longs, suggesting a long squeeze could be possible.
- CME’s CoT shows that institutional asset managers have cut back some of their long positions, it could be driven by profit-taking activities after the massive rally. At the same time, short positions in asset managers and leveraged accounts have increased.
Figure 1: BTCUSD Daily Chart(Source: FX Street)
Figure 2: OKEx BTC Long/Short Ratio (Source: OKEx)
Figure 3: CME Bitcoin Commitment of Traders Summary (Source: CME)
- XRPUSD has been moving in a 4-hour ascending triangle pattern since late September, and the recent price actions suggest that a rebound could be in the making, as the pair has recently been trading near the lower end of the triangle.
- The RSI also rebounded slightly after touching the 30 levels. We’ve seen the price rebounded after the RSI touched or went below 30 in late September and late October, let’s see if that will repeat this month.
- Also, the pair has touched the lower end of the Bollinger bands before slightly drifting upward, suggesting the pair has been recovering from the previous oversold.
Figure 4: XRPUSD 4-Hour Chart (Source: FX Street)
- XLM bulls may want to wait a bit longer before entering the market despite the pair still largely in an upward channel and supported by the token burn.
- The RSI confirmed the top twice as it surged to above the 80 levels, and the RSI remains relatively high, this could indicate that bias to the downside persists.
- Furthermore, the ultimate oscillator seems to divergence with the price recently, suggesting that a correction could be possible.
Figure 5: XLMUSDT Daily Chart (Source: OKEx; Tradingview)
- DOGEUSDT could continue to rally as the pair traded toward the 78.6% Fibonacci Retracement. In our October Global Markets Review, we’ve noted that coins and tokens that shown lower correlation with bitcoin generally outperformed its peels, and Dogecoin was one of them.
- As the price moves upward, the pair has touched the upper end of the Bollinger Bands, it indicates that the pair could be oversold.
- The ultimate oscillator also suggests an oversold situation, and a correction could be due in the short-term, but it could represent an ideal entry point.
Figure 6: DOGEUSDT Daily Chart (Source: OKEx, Tradingview)
This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
Bank of Russia is considering to issue its own cryptocurrency
The head of the Central Bank of Russia, Elvira Nabiullina, confirmed that they are considering to issue Central Bank-backed cryptocurrency. However, the central bank’s head confirmed that they would oppose the issuance and circulation of any private currency as it could damage monetary policy and threaten financial stability.
The head of the Central Bank of Russia, Elvira Nabiullina, while speaking in Duma, confirmed that they are actively studying how various digital currencies pilots are working in other countries. However, the central bank stands against the issuance of private cryptocurrencies.
A statement put out by the country’s central bank read that issuing private currencies could damage the monetary policy and threaten the financial stability of the country. However, the Central Bank’s head confirmed that they are considering to issue a state-backed cryptocurrency.
Russia is a key player in the crypto industry.
Recently, when Binance CEO Changpeng Zhao visited Russia for the first time, he said that Russian Vladimir Putin would have the most influential role in the near future of the crypto industry. He was referring to a crypto bill that is pending in the Russian parliament. However, the Central Bank of Russia has no plans of legalizing the use of cryptocurrencies any time soon.
China is expected to launch its Central Bank-backed digital currency any time soon. As reported earlier, Turkey has also joined the list of countries that are planning to issue CBDCs.
CBDC: Governments’ weapon to fight bitcoin?
Many countries are studying stablecoins and planning to launch their state-backed cryptocurrencies. A CBDC is a perfect way for countries like China and Russia to keep track of people’s financial activities as they are completely centralized. On the other hand, bitcoin provides people with financial privacy that does not settle well with countries who like mass surveillance. It is expected that in several countries around the world would issue their own cryptocurrencies in coming years to keep people off from decentralized currencies like bitcoin
Disclaimer: Coinnounce’s views are not necessarily reflected in the articles published, and they are the sole representation of the author’s opinions. Article’s information should not be taken as investment advice. Risks are involved in cryptocurrency investments and trading. Readers are urged to carry out extensive research before making a decision.