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Japan's FSA considering over 100 new exchange applications

Japan has a reputation as a crypto-friendly nation. Following the Coincheck hack in 2018, Japan tightened controls over the entry of new exchanges as well as existing trading platforms. In 2019, the sentiment is thawing and a number of new platforms appear set to enter the market.

Under Japanese FSA Rules, Facebook’s Libra Not A Virtual Currency

According to the FSA, Facebook’s Libra might not be a virtual currency. As per Nikkei reports, the FSA has hinted that the stablecoin whose launch is in 2020, will not be classified as a cryptocurrency asset. As explicitly elaborated by Fund Settlement Act (Law 2.5, 5), a virtual currency “is a property value that can be exchanged mutually with the persons listed in the preceding item with an unspecified person as the other party, and that can be transferred using an electronic information processing organization.” The act also defines a virtual currency as one that excludes Japanese currency, foreign currency, and other currency denominated assets as well. Electronic money, on the other hand, as per the regulations, has a legal currency backing. This kind of asset also has legal currency-denominated assets domestically, pointing to a cashless asset rather than a virtual currency. After its 2020 launch, will utilize its native digital wallet Calibra as storage. The wallet will be integrated into Facebook Messenger and WhatsApp and will also exist as a standalone app. Facebook has a subsidiary in place to oversee the wallet’s services. Consequently, crypto users will purchase the token, add it to Calibra, a process that closely mirrors the Chinese social app, WeChat. Centralization Concerns In addition, through the Libra wallet, users send and receive money through messages. There will be small transaction commissions paid, but Facebook has suggested that the costs will be low. The social media’s big picture, however, is for Libra to be utilized for offline payments as well. As a result, this will enable the token holders to pay their bills, public transport costs or even purchase their morning coffee using Libra. The social media giant has expressed its desire to cater to the unbanked 1.7 billion adults worldwide. Cryptocurrencies are decentralized by design and have no single points of control. In contrast, Libra’s founding organizations might have a degree of control over it. Besides, Libra also is backed by real assets reserves, and its value is therefore not reliant on scarcity or demand. Libra reserves will, therefore, be in the form of government bonds and bank deposits in various international currencies. The said reserves will be under a Geneva-based non-profit organization. Consequently, the Fund Settlement Act might overlook Libra’s claim to a virtual currency title. Libra More of Electronic Cash Than Digital Currency If the FSA decides to enlist Libra instead as electronic money, Facebook’s stablecoin classification will be money transfer. This implies that the stablecoin will have to face exceedingly stringent entry requirements than expected. A Nihon Keizai Shimbun report suggests that the use of Libra might be classified as remittance and general currency transaction business. It will, accordingly, face strict banking business entry requirements. As an illustration, registration for mobile remittance services will cost up 1 million yen. Japan is not the only nation to take a precautionary stance against Libra. Germany, France, and the United Kingdom have said that they will investigate the impact of the currency on their respective economies. Pundits also suspect that due to Russia’s strict crypto regulations, Libra might not take root domestically. The US House reps from both sides have also chimed in, targeting Facebook’s data privacy failures. Sherrod Brown, the leading Democrat on the Senate Banking Committee, for instance, said:  “Facebook is already too big and too powerful, and it has used that power to exploit users’ data without protecting their privacy.” This was said in a call to regulate and oversee Libra’s operations. The post Under Japanese FSA Rules, Facebook’s Libra Not A Virtual Currency appeared first on Ethereum World News.
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Japan’s FSA Orders Zaif Crypto Exchange To Improve Its Business System

Japanese cryptocurrency exchange Fisco, owners of Zaif crypto exchange, has received a business improvement order by the country’s financial regulator. The Japanese authorities have once again demonstrated that they take law compliance of virtual currency exchanges seriously after the order. The regulator ordered Fisco to enhance its business management systems following and in-depth investigation by […]
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Japan’s FSA Set to Approve Line’s BitMax Crypto Exchange

Line Corporation, the firm in charge of Japan’s largest messaging app, Line Messenger, is set to be approved for its BitMax bitcoin exchange from the Financial Services Agency (FSA), reports Bloomberg on June 20, 2019. Line’s BitMax Awaits FSA Nod Per sources close to the matter, Line Corp is on the verge of securing aRead MoreRead More. The post by Ogwu Osaemezu Emmanuel appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News\
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Is the era of mining hardware coming to an end?

Mining hardware demand declines, SEC monitors crypto market, Japan is against money-laundering, Coinbase launches Coinbase Custody, European banks tested cross-border trade via blockchain, Boomstarter launches blockchain crowdfunding, Bermuda widens banks specialization

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High ETH Prices Are (Finally) Good For Ethereum

Things are looking pretty bullish for Ethereum (ETH). The Ether price has surged by over ten percent in the past couple of days, and crossed above the psychological $200 barrier earlier this afternoon. That could be a strong buy signal for technical traders, as Crypto Briefing analysts reported yesterday.   Source: CoinMarketCap How High ETH Prices Harm Ethereum But what does a high Ether price mean for the smart contract network? There’s an obvious benefit for speculators and miners. But past experience has shown that anyone seeking to build dApps or just use the network could be severely hampered when markets turn bullish. That’s because the higher ETH prices get, the more expensive it is to use the platform. Users have to pay for everything they do on the network, from smart contract computations to token transfers. Rising gas fees could push end-users onto cheaper alternatives, like EOS or TRON, which offer similar functionality with lower fees. At least, that’s the received wisdom, which so far seems to be supported by experience. And it’s still technically true today: when it comes to using the ETH network, the downsides of a high Ether price tend to outweigh the advantages. Does Expensive ETH Mean A Stronger Network? However, Ethereum is (eventually) transitioning towards a Proof-of-Stake consensus model, which will require a financial commitment in order to participate. Instead of mining blocks through proof-of-work, block-producing nodes will have to stake ETH tokens as collateral in order to validate the network. That could have a significant impact on Ether’s market dynamics. Stakeholders will risk losing their hodlings if they fail to maintain connected and up-to-date node software. An expensive ETH would provide a strong disincentive to malicious or careless actors on the network. “If the chain is going to be secure, then there are inherent benefits from having high-valued Ethereum,” explained Nic Carter, Partner at Castle Island Ventures, in an interview with Laura Shin. A high Ether price, he added, would also provide “high-powered collateral, for DeFi applications for instance.”  Carter also pointed out that most networks have become too preoccupied with one or two “glamour metrics,” which may burnish their credentials but do not represent credible advantages. EOS, for example, has focused solely on scalability at the expense of decentralization. One tradeoff of those high speeds is that EOS relies on a small group of validators, which could present a systemic risk if they decided to collude or otherwise abuse their privileged positions. Ethereum’s key advantage is that it is the only platform with a vibrant community, Carter added, which comes with an “organic groundswell of usage and development.” Because of that organic usage, investors may be attracted to hold ETH for the long-term. “I think we noticed a little bit of a recalibration where initially [Ether] was computational gas,” Carter went on to say. “More recently, certain high-profile Ethereans have been saying, ‘well actually Ethereum itself is money.'” A strong Ether price could still push people off the network, but the community has been exceptionally resilient to market volatility and rival platforms over the past two years. The burgeoning DeFi space, and the added security after transitioning to Proof-of-Stake, could make high prices a net positive for the Ethereum network. The post High ETH Prices Are (Finally) Good For Ethereum appeared first on Crypto Briefing.
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