Sidechains Are Bringing ICOs to Bitcoin – And That Might Change Crypto Funding

By the end of the year, an initial coin offering, or ICO, will be launched on Bitcoin. While Ethereum, the second largest blockchain by market cap, and other smart contract protocols, have been the choice for the majority of entrepreneurs interested in creating new crypto tokens, with a sidechain created by RSK, Bitcoin will now have the ability to host the new fundraising mechanism as well. And sometime in late November, Temco, a South Korea-based blockchain startup targeting supply chain management, will take advantage of both the seminal idea and RSK’s technology, launching a public token sale with the goal of raising $19 million.

Venezuela Mandates Passport Fees Must Be Paid in Controversial Cryptocurrency Petro

The country’s vice president Delcy Rodriguez said in a press conference Friday, Oct. 5. that Venezuelans can use only the Petro, the state-backed cryptocurrency to pay for passport fees starting next week. Rodriguez confirmed that as of Monday, Oct. 8, fees for all passport applications will only be payable in Petro, and will cost an increased amount: 2 petros for a new passport and 1 petro for an extension. The average monthly minimum wage in Venezuela is four times less than the cost of the raised passport fee. Rodriguez also stated that in the case of Venezuelans who are abroad, until the first day of November the cost will be $200 for issuance and $100 for extensions. Rodriguez also announced along with the passport fees shake-up, the formation of a dedicated migration police force designed “to preserve citizen security and migratory control.”

Yale University Invested in New $400 Million Crypto – Focused Fund

Ivy League U.S. university Yale has helped to raise $400 Million for a major new cryptocurrency-focused fund. The fund, dubbed ‘Paradigm,’ was reportedly created by Coinbase co-founder Fred Ehrsam, former Sequoia Capital partner Matt Huang, and Charles Noyes, formerly of stalwart crypto fund Pantera Capital. Allegedly, Yale, whose $30 billion endowment is reported to be the second-largest among U.S. higher education institutions has made an investment of an undisclosed size in Paradigm and 60 percent of Yale’s assets for the fiscal year 2019 are earmarked for “alternative investments” including “venture capital (vc), hedge funds and leveraged buyouts.” The fund reportedly plans to invest in “early-stage” crypto-focused projects, new blockchains and digital asset exchanges.

1. Bitcoin Startup Acinq Raises $1.7 Million to Double Down on LightningBitcoin Startup Acinq Raises $1.7 Million to Double Down on Lightning
Acinq, one of the leading startups working on the lightning network, a top-level layer aiming to boost the number of transactions bitcoin can support, has closed a $1.7 million funding round led by Serena Capital, with participation from Talend co-founder Bertrand Diard, Sebastien Lucas, Alistair Milne and Snapcar founder Yves Weisselberger. As a result of the funding, Lightning Labs is no longer the only startup solely dedicated to lightning that’s been able to rake in money for its efforts. With the funds, Acinq also plans to hire three to four “highly technical” developers over the coming weeks and months. To do its part in the effort, Acinq plans to take its operations to a larger scale. This means working with other developers on standards for lightning.

2. SBI Ripple Asia’s MoneyTap App Has Launched in Japan
MoneyTap, a consumer-focused blockchain money transfer app built by SBI Holdings and Ripple, has now gone live. A new website for the product has also been launched indicating that the app is able to make bank-to-bank money transfers in “real time” using Ripple’s xCurrent payments product. Available for both iOS and Android devices, the product allows users to send funds to others using just their telephone numbers or a QR code, and utilizes devices biometric log-in features, such as fingerprint scanning, for security. Currently, the service is only able to remit between accounts held at the three participating Japanese banks – SBI Sumishin Net Bank, Suruga Bank and Resona Bank. Payments are being offered at no charge and can be sent in Japanese yen or foreign currencies.

3. Chinese Energy Outfit to Support Spanish 300 MW Crypto Mining Farm
Chinese energy company Risen Energy has partnered with a Spanish cryptocurrency mining farm will to develop capacity of up to 300 megawatts (MW) of photovoltaic power. Several months after CryptoSolarTech confirmed it was building two farms near the city of Malaga using energy-efficient technology, Risen will develop and take on engineering, procurement and construction (EPC) responsibilities for the projects. In June, CryptoSolarTech released its own token via an ICO to assist in financing its operations, the token raising a reported $68.2 million and last month CryptoSolarTech had raised 60 million euros ($69 million) from its first two months of existence, along with concluding a power supply contract with Barcelona-based Respira Energia. Since the culmination of the ICO, the company’s token has lost the vast majority of its value, making it into the top ten ICO ‘losers’ in research released late September.

Japan’s Prime Minister Appoints Pro – Blockchain Figure as Minister of Science, Tech, ITJapan’s Prime Minister Appoints Pro – Blockchain Figure as Minister of Science, Tech, IT

Takuya Hirai, a member of the ruling Liberal Democratic Party (LDP) and one of the architects of a law legalizing crypto exchanges in Japan last year, has been proactive in promoting blockchain as part of his role as chairperson of the Liberal Democratic Party’s IT Strategy Special Committee, as well as chairperson of the Fintech Promotion Parliamentarians’ Federation. Hirai is credited for his role in drafting Japan’s basic cybersecurity law, which was enacted in 2015. Hirai’s advisory role at Tama University has shown that the study group publishes a broad list of regulatory guidelines and full legalization of ICOs in the country, which will be officially considered by Japan’s Financial Services Agency, and could eventually be passed into law in the next few years. The guidelines included rules for anti-money-laundering (AML), know-your-customer (KYC) measures, tracking project progress, and protecting existing equity and debt holders.

IBM Awarded Patent for Secure System Based on Blockchain

Tech conglomerate IBM has recently been awarded a patent for a blockchain-based secure system. The patent filing was published on U.S. Patent and Trademark Office (USPTO) website Tuesday, October 2.  The technology enables the detection of security breaches within a network by connecting all the monitors to a chain configuration, which registers all events in the network. This, in turn, might help to prevent different sorts of hacks.  Within a blockchain security system, a hacked monitor can be found immediately, as in such a case synchronized monitors won’t have consensus. The use of blockchain technology in monitor systems will therefore help create “a less vulnerable” network and provide more security, IMB states.

Crypto Trading Platform BitMEX Appoints Veteran Hong Kong Regulator as COO

Major crypto trading platform BitMEX has appointed a veteran Hong Kong regulator as its chief operating officer (COO). BitMEX was founded in 2014 and sees almost $1.8 billion in daily traded volume, making it one of the world’s largest crypto exchanges. It works as a “peer-to-peer trading platform that offers leveraged contracts that are bought and sold in Bitcoin. Reportedly, Angelina Kwan will become its COO with immediate effect. Kwan is a certified public accountant and served as managing director and head of regulatory compliance for Hong Kong Exchanges and Clearing (HKEX) for almost three years prior to accepting the BitMEX post. Earlier, she was reportedly a covered enforcement and market supervision as part of her role as director of Hong Kong’s Securities and Futures Commission and she also worked at domestic brokerage firms including Reorient and CLSA. She has noted that proactive regulators have given the green light to crypto futures trading on leading platforms CME Group and CBOE.

1. Italian Banking Association Completes First Test of Blockchain-Based Interbank System

The Italian Banking Association (ABI) has revealed they successfully passed the initial phase of testing their blockchain-powered interbank system. By applying distributed ledger technology (DLT), the group of 14 Italian banks is planning to improve interbanking processes. Specifically, the association intends to boost the processing time of operations, increase the transparency of banking information, and enable the verification and exchange of information directly within the application. According to the report, the association has successfully completed 1.2 million movements on an infrastructure of 14 nodes distributed by the banks. Based on the positive results of the first stage of the test, the banks will now start applying the blockchain-powered application for the recording of daily operations.

2. Bank of America: Blockchain Market Could Hit $7 Bln, Will Give Boost to Amazon, Microsoft

The Bank of America (BoA) has estimated that blockchain could be a $7 billion market and provide a major boost to corporate giants such as Microsoft and Amazon. BoA research analyst Kash Rangan emphasized that while many potential use cases for blockchain have been widely recognized, “full products/services have not yet been built out and are not used in production,” leaving the technology’s capacity to generate real-world capital still unproven. Among other high-profile beneficiaries poised to benefit from blockchain, BoA included Oracle, IBM, Salesforce.com, and VMware, as well as major players from the real estate and mortgage industries such such as Redfin, Zillow, and Lendingtree.

3. Blockchain Could Be Solution to Irish Border Trade Issue After Brexit

British finance minister Philip Hammond announced that the issue of trade across the Irish border after Great Britain leaves the European Union (EU) might be solved by deploying blockchain technology. The United Kingdom (UK) and the EU agreed to leave the border between the Northern Ireland and Republic of Ireland open but the parties are still looking for a method to make it possible. The UK intends to leave the EU Customs Union, which would require border controls between Northern Ireland, a part of the UK, and the Republic of Ireland, which will stay in the EU. The implementation of blockchain could be a tool for resolving the Irish border issue, as the technology enables products’ movement to be recorded transparently and without changes.

1. Malta’s Prime Minister Tells UN That Crypto Is the “Inevitable Future of Money”

Joseph Muscat, the Prime Minister of Malta, has said that cryptocurrencies are the “inevitable future of money,” and that blockchain can iduce a more transparent and equitable society. According to Muscat, Blockchain makes cryptocurrencies the inevitable future of money, more transparent since it helps filter good businesses from bad businesses, but that those distributed ledger technologies can do much more. Malta’s Prime Minister proposed that DLT can ensure “that no one is deprived of their legitimate property because of compromised data,” that corporations “become more accountable to their shareholders,” and that states “move from hoarding information on their citizens to regulating an environment where citizens trust the handling of their own data.” DLT would mean that patients have real ownership of their medical records and make administration more robust and efficient. In June, the Maltese parliament approved three DLT- and crypto-related bills, consolidating the island’s bid to remain at the forefront of blockchain innovation.

2. Deloitte Outlines Five Major Obstacles to Blockchain’s Mainstream Adoption

“Big Four” audit and consulting firm Deloitte has outlined five basic areas of development for blockchain technology in order achieve widespread adoption. in order to be adopted by enterprises on a mass scale, blockchain technology should overcome five major obstacles – the possibility of time-consuming operations, lack of standardization, high costs and complexity blockchain applications, regulatory uncertainty, as well as the absence of collaboration between blockchain-related firms. Identifying the area that needs the most development, Deloitte singled out the problem of possible operational delays on a distributed ledger network. Among the most complex issues around blockchain regulation, the company highlighted the difficulty of regulating smart contracts, which do not necessarily fit into existing frameworks.

3. Spain Remains a Primary Example of Blockchain Optimism on All Levels

On September 17. the autonomous community of Aragon, one of the 17 Spanish autonomous communities, signed a contract with Alastra, a blockchain ecosystem of more than 274 entities, including companies and institutions which create blockchain-based tools in line with Spanish and European Union legal frameworks. This blockchain will improve the transparency and efficiency of the administration which will attract in turn business and investments. The signing of the contract is only the start of a series of activities scheduled by the Aragonese government to take place through the end of the year, such as training and consultancy sessions to identify more use cases for blockchain within the government. On May 30, the Spanish Congress unanimously supported draft legislation that would favorably regulate blockchain technology and cryptocurrencies in the country. Due to the absence of a supervisory framework, the draft called for a review of regulations pertaining to Bitcoin and altcoins, as well as to blockchain, proposing to introduce the technology to the Spanish market through “controlled testing environments,” commonly referred to as regulatory sandboxes. The latest move came from the Spanish Ministry of Agriculture, Fisheries and Food, which shared its plans to apply blockchain technology in the forestry industry.

1. Disgruntled ICO Investors Threaten to Bring in the Crypto Lawyers

Security lawsuits concerning cryptocurrencies have tripled this year. To date, around a dozen ICO-related class action lawsuits have been filed including Paragon Coin, Cloud With Me, Tezos, and Latium Network. Some investors believe the SEC will operate as their personal army, filing on their behalf and bearing the legal costs. As co-director of the SEC’s Enforcement Division Stephanie Avakian recently explained that ICO cases that do not involve fraud are unlikely to feel the full force of the law. The Telegram groups of many failed ICOs are seething with threats of legal action from enraged investors desperately seeking their tokens or ether back, but legal threats in Telegram groups come easy. Following through on them in a court of law is almost impossible.

2. Ripple Leads Crypto Coalition Seeking Gov’t Oversight Encouraging Crypto, Blockchain

Ripple will lead a group of crypto startups to lobby lawmakers and financial regulators in D.C. to support crypto and blockchain innovation. the coalition of San-Francisco-based crypto firms is planning to pay Klein/Johnson Group, a bipartisan lobby group, to assist the crypto and blockchain community in conveying to regulators that the industry needs support from the government. The new group, called the Securing America’s Internet of Value Coalition, aims to soften the government’s stance in order to encourage innovation and support competition in the ecosystem of global crypto markets. The coalition, together with the lobby group, will raise issues with Congress, as well as the Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS), and other agencies that have relations to cryptocurrencies.

3. Blockchain.com Launches OTC Trading Desk, Shapeshift Relaunches Coincap

Blockchain.com, the popular cryptocurrency wallet provider, has launched an over the counter (OTC) trading desk as part of its plans to attract institutional investors. The company already offers custodial services tailored to serve the needs of clients such as hedge funds and asset managers. The move will allow Blockchain to conduct large private crypto trades outside of public exchanges. A number of companies in the space already provide OTC services, including DRW and DV Trading as well as established cryptocurrency exchanges such as Kraken and Itbit. Blockchain.com claims to have 28 million downloads of its wallet offered as part of its retail business.