- Earlier this week the Supreme Court of India saw the ‘Crypto v RBI’ case unpause.
- Nakul Dewan has stated that the Reserve Bank of India didn’t think that the cryptocurrency has real intrinsic value.
Earlier this week the Supreme Court of India saw the ‘Crypto v RBI’ case unpause. The counsel for Indian cryptocurrency platforms, Nakul Dewan has stated that the Reserve Bank of India didn’t think that the cryptocurrency has real intrinsic value.
In discussing the impact of banking ban on businesses, the counsel noted that the government expressed reservations in regards to the ban on cryptocurrency as it would make it difficult for law enforcement agencies to get a grip of it and essentially, monitor it.
Ashim Sood, counsel for the Internet and Mobile Association of India, said that there was in fact risks involved with steps that would have been taken to eventually mitigate it with further explanations, going on to say the functioning of crypto platforms and the role played by banks while operating a platform.
With the ban coming into place, several platforms have seen hard times in daily operations. One of the biggest platforms in India, Coin DCX is switching to a peer-to-peer system to follow the Reserve Bank of India’s rules but also at the same time, serve its users properly.
“The current banking ban is related to the closing of the banking relationship of crypto companies/entities/exchanges but crypto companies are free to operate on their own. Additionally, exchanges are free to operate on their own. After banking ban, CoinDCX innovated and offered peer to peer service for buying/selling crypto through INR. The primary focus of such innovation was the user will get the right value and also respecting and abiding the RBI decision.”
The council highlighted that it’s a good thing by the work of validation. They add that it can also be a medium of exchange for those who recognise the value in it. The medium of exchange is an important aspect of crypto but was ignored by the legislature the counsel has said.
According to a statement by Crypto Kanoon:
“…it can be used as a medium of exchange and the legislature knows it. Legislature knows the exact position but it did not choose to pass any law.”
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!
European Union’s Latest AML Directives Means Banks Can No Longer Shut Down Crypto
If regulators around the world, or at least within the EU, recognize that cryptocurrencies can be researched and analyzed it is possible to avoid de-risking.
The crypto company is faced with a lot of obstacles in the way forward. Anyone interested in the cryptocurrency sector is aware that it is not only regulations that pose the greatest threat to the viability of the venture, but also lack of access to very basic financial requirements, such as a bank account. This is threatening to bring down the crypto business by shutting it out of the mainstream economy.
Such practices are referred to as de-risking. De-risking can be brought about by a number of factors such as prudential needs, profitability concerns, anxiety after the global financial crisis or even esteem concerns. Actually, the Financial Action Task Force (FATF) identifies de-risking as the event where financial institutions discontinue or limit their business relationship with some clients or a sector of clients.
Nevertheless, the FATF only allows financial institutions to put an end to business relationships on a case-by-case basis, not to cut off the entire business field. Nevertheless, this remains a major obstacle for the cryptocurrency industry. Nevertheless, this may soon change due to the much-awaited Fifth Anti-Money Laundering Directive of the European Union, also referred to as AMLD5
Cryptocurrency Business Falls Under the Same Designation as Banks
The Directive, which was introduced in July 2018, considers virtual assets and virtual asset service providers as ‘ ‘obliged entities.’ This means that cryptocurrency organizations, such as exchanges and wallet service providers, come under the same designation as banks, payment processors, gaming and gambling entities. Provided a cryptocurrency business is approved and compliant with the relevant authorities, it should be treated in the same manner as the above entities.
Going forward, in the light of AMLD5, financial institutions such as banks should handle AML risks individually or directly. They should not deny services to the entire sector but deal with such cases on an individual basis. A bank can not deny service solely because an entity belongs to the cryptocurrency sector.
Indeed, this presents both an opportunity and a challenge to the digital assets industry. To realize its true potential and even reshape the financial sector, crypto and blockchain technology should welcome criticism from regulators across the globe. These businesses should use the AMLD5 as a stepping stone, a drive to prove to the whole world the significance and commitment to providing real-life solutions and transparency. Those working on developing solutions using the blockchain technology should be open to working with the government, the regulators and even financial institutions to create a regulated, clear business framework that recognizes the fundamentals of the crypto world.
Furthermore, we can say the AMLD5 is a very positive development for the virtual assets space. It is of utmost importance now for the founders and developers to work with EU regulators and even others to build a working relationship that works for everybody. Although the AMLD5 has its own disadvantages, it is a start for the digital currency industry to put a foot inside the mainstream economy positively. This will enable the industry to expand, grow and even flourish.
It is my aspiration that AMLD5 should be a message to financial institutions that the virtual currency industry should be treated in the same way as all other business sectors. Cryptocurrency should be treated fairly, on a case-by-case basis, like all the others. It is time for all stakeholders to come together and use this technology to provide real-life solutions to the world.
Indicator That Signaled 4,593% Bitcoin (BTC) Rally Now Flashing – But This Time Ethereum (ETH) Is the Coin to Watch, Says Crypto Analyst
A signal that flashed at the start of a historic 4,593% Bitcoin (BTC) rally is back, but this time it’s happening to the second-largest cryptocurrency by market cap, Ethereum (ETH).
A trader known in the industry as Alunaut tells 68,000 followers on Twitter that the price of ETH has crossed above the Ichimoku Cloud.
The cloud, also known as the Ichimoku Kinko Hyo, is a mashup of several indicators that identify levels of support and resistance, track momentum and spot potential trend shifts.
The same indicator flashed green for BTC in April of 2016, ahead of its long-term move from about $430 to an all-time high of $20,089.
However, in the highly volatile world of crypto, Bitcoin remains king, and the direction it takes will likely determine where the market at large is ultimately heading.
To that end, the prominent crypto analyst DonAlt warns that if BTC begins to retrace below $9,184, he’ll become “super bearish” on the market in the short term.
If Bitcoin begins a significant retracement, he identifies $7,900 as an area of support on both the weekly and monthly charts. DonAlt says he’s paying especially close attention to the monthly close of BTC.
“The absolute state of this current monthly candle. Bulls better fix this in the next 10 days.”
Chinese Government-Backed Institute Releases New Ranking of 37 Crypto Projects
China’s Center for Information and Industry Development has published its latest crypto project ranking — the first this year. A total of 37 crypto projects, two more than in the previous ranking, were evaluated and ranked overall this month as well as in three separate categories.
The 16th Ranking, First This Year
The Center for Information and Industry Development (CCID), under China’s Ministry of Industry and Information Technology, released its first crypto project ranking for the year on Friday. Prior to this, the last one was published in December, with 35 crypto projects ranked. This month, two more were added, bringing the total of ranked projects to 37. In addition to the overall ranking, the center evaluated the crypto projects based on their basic technology, applicability, and creativity. The ranking is updated every two months and this month is the 16th update.
EOS remains top of the overall ranking, followed by Tron and then Ethereum. In December, Tron was in third place with Ethereum in second. This month, Bitcoin fell from the 9th place to the 11th place while Bitcoin Cash dropped from the 27th place to the 34th.
Meanwhile, Nuls dropped from the 4th place to the 10th place, Bitshares from the 8th place to the 24th, Waves from the 12th to 22nd, Zilliqa from the 13th to 25th, and Tezos from the 26th to 33rd. Some projects improved such as Ripple which rose from the 18th place to the 13th and Cosmos from the 24th to the 14th.
IOST and GXS Added
Two additions to the list of projects ranked this month are IOST and GXS. The former describes itself as “an ultra-fast, decentralized blockchain network based on the next-generation consensus algorithm ‘Proof of Believability’ (PoB).” The latter, also called Gxchain, is “a fundamental blockchain for the global data economy, designed to build a trusted data internet of value,” according to its website. IOST debuted at number six in the overall ranking. Gxchain was previously ranked but was removed in the October update. It is now back at number seven in the overall ranking.
In terms of the three sub-rankings, EOS scored the highest in the basic technology category, followed by Tron, IOST, GXS, and Steem. For the applicability category, Ethereum tops the ranking, followed by Tron, and Neo. For the creativity category, BTC scored much higher than the other projects. The second place is occupied by Ethereum, then Lisk, and EOS.
The rankings are compiled by the CCID (Qingdao) Blockchain Research Institute, an entity established by the CCID. The evaluation work is carried out in collaboration with multiple organizations, such as the CCID think tank and the China Software Evaluation Center. “The result of this assessment will allow the CCID group to provide better technical consulting services for government agencies, business enterprises, research institutes, and technology developers,” the center previously explained. The CCID provides professional services to the government, including research, consulting, evaluation, certification, and research and development, its website details.
In January, news.Bitcoin.com reported that the CCID released a report stating that there were more than 33,000 registered blockchain companies in December.