Visa Set to Launch Blockchain-Based Digital Identity System with IBM in Q1 2019

Visa is readying its blockchain-based digital identity system dubbed Visa B2B Connect for cross-border payments for launch in the first quarter of 2019 that will provide a blockchain-based digital identity solution for financial institutions to securely process cross-border payments. From a technical standpoint the solution will integrate a Hyperledger Fabric framework with Visa’s “core assets,” which the release claims will establish a scalable permissioned network for use in the financial sector. Visa – alongside MasterCard – has this month reportedly moved to group cryptocurrency and Initial Coin Offering (ICO) under a new “High-Risk Securities Merchants” classification, meaning interaction with them will be subject to additional monitoring.

Demand for Blockchain Engineers Has Grown 400% Since End of 2017

The average earnings of a blockchain engineer have soared to between $150-175,000 per year. Since 2017, the demand has soared 400 percent, despite the wider cryptocurrency bear market. CNBC notes the demand is further fueled by the interest of global tech giants such as Facebook, Amazon, IBM and Microsoft, all of whom are currently advertising for specialists from the emerging sector. Desired knowledge encompasses “networking, database design and cryptography computing skills,” and fluency in the Java, JavaScript, C++, Go, Solidity and Python coding languages, CNBC notes, citing “multiple blockchain engineers” as its source. The report was compiled to encompass tech workers across thirteen global cities, based on over “420,000” interview requests alongside an optional demographics survey to include age and race data where possible.

China’s Internet Watchdog Issues Draft Regulations for Blockchain-Based Info Services

China’s top-level internet watchdog, the Cyberspace Administration of China (CAC), published new draft regulations for blockchain-based information service providers. The draft proposes twenty three articles for the regulation of all companies or entities providing blockchain-based information services to the Chinese public. Under the proposed rules, all such entities would be required to register with the CAC within ten days of launching their platforms. The regulations would also require service providers to censor content that is deemed to pose a threat to national security or to “disrupt the social order,” and to allow authorities to inspect user data stored on their systems.

Global AML Watchdog to Release Crypto Regulations By Next June

A global money-laundering watchdog has said it will begin publishing rules for international cryptocurrency regulation by next summer. The Financial Action Task Force (FATF) said that global jurisdictions will have to bring into force licensing schemes or regulations for crypto exchanges and possibly digital wallet providers under the new rules. Companies offering financial services for initial coin offerings will also be included. The news comes after the FATF plenary meeting this week with officials from 204 global jurisdictions to discuss crypto regulations and other matters.

Ethereum Devs Reach Consensus to Delay Constantinople Hard Fork Until January 2019

Ethereum (ETH) core developers have reached a consensus to delay a planned hard fork of the protocol until January 2019. The fork, dubbed “Constantinople,” was first trialed on Ethereum public testnet Ropsten on Oct. 13, and had been slated to be activated on the main Ethereum blockchain by the end of Oct.-Nov. this year. A testnet is essentially a simulated version of the primary network that allows developers to try out smart contracts or upgrades without having to pay “gas” (computation fees) for their execution. The Constantinople hard fork is is a system-wide Ethereum update designed to increase the network’s efficiency, and notably includes plans to reduce block rewards for miners, as well as to introduce changes to the network’s consensus mechanism that would make it more resistant to ASIC miners.

North Korea-Sponsored Hacks Comprise 65 Percent of Total Crypto Stolen

Hacker group “Lazarus,” reportedly funded by North Korea, has stolen a staggering $571 million in cryptocurrencies since early 2017, a study conducted by cybercrime company Group-IB reveals. The report, dedicated to hacks in 2017 and 2018, identifies the allegedly state-sponsored hacker group Lazarus as responsible for $571 million of the $882 million total in crypto that was stolen from online exchanges during the studied time period; almost 65 percent of the total sum. Out of fourteen separate exchange breaches, five have been attributed to the group, among them the industry record-breaking $532 million NEM hack of Japan’s Coincheck this January. The report states that hackers target cryptocurrency exchanges using mostly “traditional” methods, including spear phishing, social engineering, and malware.

Global Security Firm G4S Announces High-Security ‘Vault Storage’ for Holding CryptoGlobal Security Firm G4S Announces High-Security ‘Vault Storage’ for Holding Crypto

U.K.-based multinational security services company G4S has developed a new service for protecting cryptocurrency assets. G4S, formerly Group 4 Securicor runs both prisons and detention centers, as well as stores cash for “large companies,” and has released an solution for holding crypto assets in a form of high-security offline storage protecting customers from hacks. G4S is based on a foundation of “vault storage” that is inaccessible for cyber criminals and hackers, as well as “armed robbers alike.” The new security solution distrubutes crypto assets into independent components placed securely in the system’s security vaults. In June 2018, cybersecurity company Carbon Black estimated that criminals stole around $1.1 billion worth of cryptocurrencies in the first half of 2018, with 12,000 marketplaces and 34,000 offerings associated with cryptocurrency theft that hackers can take advantage of. On Oct. 10, anonymous attackers hacked the adult entertainment platform SpankChain, stole around $38,000 worth of major cryptocurrency Ethereum (ETH), as well as $4,000 worth of the platform’s native crypto token.

Natwest Bank Launches R3 Corda Blockchain-Based Syndicated Lending Platform

U.K.-based bank Natwest will integrate a new blockchain platform based on R3 Corda technology for use in the syndicated loans market. The new platform, dubbed “Fusion LenderComm,” was developed by blockchain consortium R3 and fintech enterprise Finastra, and aims to streamline the global market for syndicated loans. The platform works by enabling “financial institutions acting as agents to publish loan data to the ledger and extend self-service capabilities to lenders. Through their own portal, agents can define and then publish lender-specific deal position data to the platform, allowing individual lenders to consult the data themselves and not resort to extra phone or online communication to query positions.

Dubai – the Blockchain Oasis of the UAE: From Public to Private Sector

The first proposal for an official Dubai cryptocurrency called emCash came about in October 2017. The cryptocurrency is pluged to be used for payments for governmental and nongovernmental services – and is pegged to the UAE Dirham. The partnership was announced on October 9, which includes emCredit, a subsidiary of the Dubai Department of Economic Development, blockchain payment provider Pundi X and its partner Ebooc Fintech & Loyalty Labs LLC. Ebooc will be responsible for providing point of sale terminals in retail outlets, while Pundi X is expected to create 100,000 point of sale units over the next three years. The Central Bank of the UAE began working on legislation at the beginning of 2017 to address the use of cryptocurrencies in the country. The UAE Securities and Commodities Authority (SCA) warned the local investors about the inherent risks associated with ICOs. Given that they are not regulated in the country, investors had no means of legal protection against fraud. As Dubai and the UAE continue to explore and develop technology with the use of blockchain technology, as well as provide a guideline for the use of ICOs and cryptocurrencies, the outlook in the region seems positive.

CME: Average Daily Volume for Bitcoin Futures Grew 41% in Q3

Average daily volumes for bitcoin futures trading saw a significant jump in the third quarter compared to the last period. Average daily volume hit 5,053 contracts in the third quarter, representing a 41 percent increase from 3,577 contracts in the second quarter. CME provided data on open interest, which represents the total number of unsettled contracts held by those trading in the market. According to CME, rising from 1,523 contracts in the first quarter to 2,873 contracts in the third quarter represents growth from the second quarter’s 2,405.

US CFTC Official Tackles Accountability in an Era of Smart Contracts

The U.S. Commodity Futures Trading Commission (CFTC)’s Brian Quintenz as addressed the question of accountability in an era of disintermediated finance and smart contracts. He proposed that when it comes enforcement actions, not only users, but the coders themselves may be held to account. Quintenz framed his discussion by noting the complications that arise when applying traditional legal paradigms to “the disintermediated world of blockchain,” emphasizing the challenges that the emerging sector poses to the CFTC’s particular role, which is intermediary-focused and centers on preserving market integrity through oversight. He focused in particular on smart contracts, which function on a blockchain and are programmed to interact according to binding, pre-specified rules. He noted that in the past, the CFTC has generally prohibited prediction markets as contrary to the public interest, only permitting them in limited circumstances when it has found that they operate on a small-scale, non-profit basis, and serve academic purposes.

Cryptocurrencies ‘May Not Qualify as Securities’

Cryptocurrency falls into a legislative gray area in many jurisdictions, which is why governments should take a particularly nuanced approach to developing regulatory frameworks for crypto trading. Carlson Tong Ka-Shing, the current chairman of the Hong Kong Securities and Futures Commission (SFC) rejected the notion of prohibiting cryptocurrency trading platforms as a viable regulatory strategy. Such moves would prove fruitless in the current world, where trading can be freely conducted without concern for national borders, he argued. Angela Kwan, the recently hired chief operating officer of Hong Kong-based cryptocurrency derivatives trading platform Bitmex, said the SFC should follow the lead of the U.S. and other leading markets with regard to international crypto regulations. She claimed that the futures products that are now being traded in the U.S., for example, illustrate how regulators can help to support the growth of the crypto industry.