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

Sparkswap Desktop Lets Users Deposit Bitcoin Directly Into Their Lightning Wallets

Lightning service provider Sparkswap now features a desktop application with a first-of-its-kind killer feature: USD-to-bitcoin purchases that deposit sats directly into a user’s Lightning wallet. Dubbed “Sparkswap Desktop,” the new product “allows consumers for the first time ever to buy bitcoin directly into their Lightning wallets using USD,” according to a press release shared with Bitcoin Magazine. To use the feature, users wire a fee-free ACH transfer to a U.S.-domicile escrow account held by Sparkswap’s payment partner; from here, Sparkswap transfers the bitcoin into the user’s wallet using atomic swaps. This technique means that the process, while run centrally through Sparkswap, is completely noncustodial. “This is really an extension of the technology we’ve built previously — making it easier for non-developers to use and adding a trading pair that we find the most compelling. While this specific app has been in the works for a couple of months, it is a step toward goals that we’ve had since we started almost two years ago,” Trey Griffith, Sparkswap’s founder, told Bitcoin Magazine. Sparkswap’s existing stack had its beta release in April 2019. Another first for the young company, the beta launch released the world’s first user-ready atomic swap exchange to the Bitcoin public. This beta, however, was limited to bitcoin and litecoin trades, while this most recent news opens the exchange to fiat liquidity as well. For now, Sparkswap Desktop will cap buying amounts at 0.04 BTC to work within the channel limits reinforced by many of the wallets and tools the application integrates with. Griffith said that Sparkswap’s team has it in mind to expand this limit “over time if there is demand for larger transactions.” “Pushing Toward a Noncustodial Financial System” Sparkswap Desktop is available for Mac, Windows and Linux. Griffith explained that it’s also compatible with any “existing LND instance.” “We’ve focused in particular on Zap Desktop and the Lightning App since they support Neutrino, which makes them easy to get started with, but it works with any instance of LND at or above version 0.7,” he said. “We’d like to support other implementations and platforms in the future, and we’re looking at ways we can make the integration with existing node providers even easier.” Founded in 2017, Sparkswap quietly wrangled $3.5 million in funding from Initialized Capital, Pantera Capital and Foundation Capital, among others, in 2018. This latest release, Griffith told us, is another notch in their belt as they work toward a more decentralized financial landscape. “We’re trying to build applications that we think are important and valuable to the Bitcoin community and take advantage of the unique properties that Lightning offers. We don’t have specific products or features that we’re ready to announce yet, but I think you’ll continue to see us pushing toward a noncustodial financial system.” The post Sparkswap Desktop Lets Users Deposit Bitcoin Directly Into Their Lightning Wallets appeared first on Bitcoin Magazine.
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