What is the key to a regulated market

In the spotlight of this week: Nasdaq could become crypto exchange, cryptocurrency is illegal in Iran, MyEthereumWallet hack.

Nasdaq CEO says that as the market matures over time and regulations are sorted out, Nasdaq would consider becoming a crypto exchange

The key is to provide safety and a fair experience to investors.

Once you look at it and say, 'do we want to provide a regulated market for this?' Certainly Nasdaq would consider it.

Adena Friedman, Nasaq CEO

It is unlikely that Nasdaq would develop such a product in the near future, however it at least appears that the exchange monitors development of the cryptocurrency market. A partnership between Gemini and Nasdaq (which has already had a long-standing relationship with a blockchain startup, 'Chain') was recently announced. Gemini will use Nasdaq technology to help detect price manipulation and other activities that threaten the fairness of the market.  

Media outlets have reported that Nasdaq is working on creating  a technological blockchain application. This has been confirmed by data obtained from patent documents. For example, in October the company received a patent for system that compares data with blockchain being used as an instrument for tracking transactions.

Iran’s central bank has declared that all operations with cryptocurrencies within the country are now illegal

This includes the trading and selling of cryptocurrency between individuals as well. The government has stated that the reason behind this move is to stop money laundering and funding for terrorist organizations.

This is an interesting statement considering that in February, 2018, Iran's Ministry of Information and Communication Technology reported that the state-run Post Bank was working on creating it's own cryptocurrency.

This move is most likely connected with an impending currency crisis  the country is facing. Iranian authorities have already begun to take a number of measures protect against this crisis. For example, currency exchange is now only allowed in banks. These measures are related to the falling rate of the rial, Iran’s state currency which has reached record-low due to fears that US sanctions, which had negatively affected the economy of the Islamic Republic, might return.

Many users fell victim to a DNS hijacking of a popular online wallet, MyEthereumWallet

For two hours, all users on Google DNS servers were being redirected to a phishing site. Entering in one’s private key resulted in a complete loss of funds. More than 500 Ethereum tokens were stolen.

At first, users posted their suspicions that the wallet had been hacked on social networks. Later, representatives of MyEtherWallet confirmed that a number of DNS servers had  been compromised and redirected users to phishing platform.

Representatives of the Blue Protocol project, who in January pointed out the  low level of security on the MyEtherWallet DNS servers, demand an apology from representatives of the wallet for insulting their reputation. They  believe that the problem had always existed, but developers just chose to ignore.

Whether that’s  true or not, is not so important. What is important is the fact that money was stolen and the victims are only interested  in the ultimately unlikely possibility of getting their money back. This once again underlines the need to follow one of the basic rules of investment and financial control: diversification.

Regardless of how great something is protected, there will always be someone capable to make money on your thoughtlessness.

At the moment, it isn't clear whether this problem has been resolved or not, therefore I would advise to refrain from continuing operations on your accounts until we get confirmation from users, not developers, that the problem has been solved.

Related news

India: Banks ask customer to sign consent form over cryptocurrency regulation breach

The cryptocurrency market in India has not been up and running and maybe a far fetched dream at the moment. The banks in the country are also taking all step possible to prohibit their customers from using their services for cryptocurrency transactions. Recently, HDFC bank joined the wagon of banks forcing their customers to sign a contract. Source: Twitter According to Twitter user Crypto India YT, the HDFC bank made their customer sign a consent form after tracking some crypto trading activities. As per the Twitter user, the bank asks the customer to come to the bank and sign a form where they consent to the bank’s decision of shutting their account if they continue with crypto trading. An excerpt from the letter read: “I/We authorize the bank to close the above account without any further notice if it is observed in future that transactions have been carried out for Bitcoin/ virtual currencies.” Previously, many crypto-users in India had called out Kotak bank and Digibank for forcing the customers into signing the terms and conditions that forced the users to not do any transactions related to cryptocurrency. Recently, Kotak bank was in news, as it sent a notice to the account holder who had made a certain transaction in crypto, of shutting down the account within 30 days. The statement from the bank read: “We have observed few transactions in your account with brokers / traders, dealing in virtual currencies. Since these types of transactions are not permitted in India, we are constrained to place a credit freeze in your account. Further as per the extant guidelines, we are required to exit such relationships where transactions with brokers / traders, dealing in virtual currencies are observed.” However, the crypto-users have found a way to hack the system and continue the way they use their bank accounts without being flagged. The users informed the crypto community in India to not mention terms in relation to cryptocurrency while performing any transactions. The Chief Executive Officer [CEO] of crypto exchange in India WazirX, Nischal Shetty told the publication: “Majority of the people understand not to enter such terms in the remarks. So simply avoiding entering anything related to crypto in the payment remarks is more than enough to avoid any problems from banks. There’s no other way for banks to know if a P2P transaction was done to transact in crypto.” The post India: Banks ask customer to sign consent form over cryptocurrency regulation breach appeared first on AMBCrypto.
AMBCrypto

Nasdaq CEO Adena Friedman: Crypto Could Still Be ‘Global Currency of Future

Speaking at a Yahoo Finance event on automated markets at the World Economic Forum (WEF) in Davos, Adena Friedman, the President, and CEO of Nasdaq, called the invention of crypto "a tremendous demonstration of genius and creativity." According to Adena Friedman, crypto has evolved through what she terms a “classic invention lifecycle” — from its early path forged by pioneers in cryptography and economics, to a period of hype, the proliferation of new market entrants, and now, most recently, “a dose of reality.” The Nasdaq CEO's comments about cryptocurrencies came as part of an article titled "New chapters in innovation and disruption will be written in 2019" that she posted on her Linkedin account. The CEO argued that for crypto to evolve into a practical, useable invention with a stable value it requires “governance and regulatory clarity.” She also suggested that both of these are, at their core, “antithetical to the original intent [of] a decentralized, ungovernable global currency.” Remarking on the need for a transparent and fair crypto exchange market in particular, Friedman noted that Nasdaq has provided its in-house technology to help start-up exchanges forge best practices.
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