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.

Telegram to Debut ‘Test Version’ of Blockchain Platform TON ‘This Autumn,’ Say Investors

Encrypted messenger service Telegram will release a test version of its blockchain-based TON platform “this autumn”. Investors “confirmed” the authenticity of a circular sent to participants in TON’s Initial Coin Offering (ICO) at the start of September. Once in operation, TON will also make use of its in-house cryptocurrency, Gram, and will form a “new way of exchanging data.” Telegram attracted considerable attention earlier this year when it raised almost $1.8 billion in investments for TON and its current messenger app via two private ICO presales. Following the success of the fundraising, in May executives subsequently cancelled the planned public phase of the ICO.

Kenyan Gov’t to Use Blockchain in New Affordable Housing Project

Kenya’s government plans to deevelop blockchain technology to manage a government housing project of 500,000 units. The government of Kenya aims to build 500,000 units by 2022, and assist contributors earning less than 100,000 Kenyan Shillings ($992) as they cannot afford hypothec. Blockchain technology will be used to ensure the proper distribution of housing to deserving participants in the program and address issues of graft from both legislators and beneficiaries. The project will reportedly be financed by the National Housing Fund under the Finance Act of 2018, to which Kenyans will contribute 1.5 percent of their salary that will be matched by their employers. Kenya will use blockchain technology to ensure the rightful owners live in government funded housing projects.

Fifth Largest Crypto Exchange Huobi Lists Four USD-Backed Stablecoins, Following OKEx

Starting Friday, Oct. 19, crypto exchange Huobi will start accepting deposits of four USD-backed stablecoins – Paxos Standard (PAX), TrueUSD (TUSD), USDCoin (USDC), and Gemini Dollar (GUSD). The stablecoins are already available on Huobi Wallet, while the launch time and other details are set to be announced at a later time. OKEx has already launched deposits in the four stablecoins, with withdrawals available starting from today. Also on Oct. 15, blockchain trust company Paxos announced it had issued about $50 million worth of its stablecoin Paxos Standard Token. The Ethereum (ETH) blockchain-based stablecoin has received regulatory approval from the New York State Department of Financial Services (NYDFS) on September 10, together with another stablecoin Gemini Dollar that was launched by Winklevoss brothers. Yesterday, BitPay also launched stablecoin support, enabling merchants to receive settlements in Gemini Dollar and Circle USD Coin (USDC).

Price of Tether Stablecoin Tanks to 18-Month Low

The price of the tether stablecoin (USDT) has fallen to an 18-month low Monday, despite a general rise in the wider crypto markets. The tether-US dollar exchange rate (USDT/USD) fell to $0.925284 at 07:00 UTC  – the lowest level since April 27, 2017 – and was last seen trading at $0.967296, representing a 2 percent drop on a 24-hour basis. The slide in the USDT price has pushed up the premium carried by bitcoin (BTC) prices on the Bitfinex exchange above $600. on Bitfinex, BTC is changing hands at $7,055, meaning prices are trading at a premium of $438 to the BPI. The leading cryptocurrency rose as high as $7,788 on Bitfinex, which operates Tether LLC, the firm that developed the USDT token.

Hong Kong’s Security Watchdog to Propose Crypto Regulation, Chairman Says

Hong Kong’s securities and futures commission (SFC) is planning to introduce crypto regulation to protect investors, the SFC chairman said. Chairman Carlson Tong Ka-shing said in an interview that the watchdog is not considering a ban on cryptocurrency platforms as the Chinese mainland has done, adding that they don’t think that a total ban is “necessarily the right approach”.  A legal framework to regulate crypto exchanges is absolutely necessary, noting that the SFC is going to consider the approach carefully as such platforms are “new technologies” and cannot treated as securities. According to the SMCP, the exchanges that are working in Hong Kong’s market have welcomed the move.

Binance Launches Its First Fiat-Crypto Exchange in Uganda

Major international crypto exchange Binance has announced that its fiat-to-crypto exchange will open in Uganda this week. As per Binance Uganda’s press release, the new branch will officially start accepting deposits and withdrawals of Ugandan shillings (UGX) Wednesday, Oct. 17. Binance Uganda notes that exchange has already begun its know-your-customer (KYC) procedures. Uganda’s national fiat can only be traded with Bitcoin (BTC) and Ethereum (ETH), but that the exchange is planning to add more pairs soon. Allegedly, Binance has plans to open several fiat-to-crypto exchanges. Binance is the largest international crypto exchange by 24-hour adjusted trading volume, seeing almost $1.8 billion in trades on the day to press time.

Europe Getting Serious About Distributed Ledger Technology

On April 10, 2018, 21 EU member states and Norway signed up to create the European Blockchain Partnership. By bringing distributed ledger technology (DLT) to European infrastructure, the Partnership hopes to make cross-border services safer and more efficient. The Partnership’s membership is currently at the very early stage of negotiating just what kind of blockchain-based public services to develop. According to Finland’s representative to the Partnership, Kimmo Mäkinen, a senior advisor at the Department of Public Sector Digitalization, the most recent meeting took place on September 17. The main topic was to discuss about the most prominent cross-border blockchain use-cases that had been proposed by member states and by the commission.” the Partnership’s 27 member nations have effectively declared that they believe DLT is here to stay and that it has genuine applicability to a range of areas. If the Partnership implements blockchain-based cross-border infrastructure, this will only have positive ramifications and knock-on effects for wider blockchain adoption elsewhere. All of which means that the future of blockchain adoption in Europe looks increasingly bright.

Bitcoin Markets Comprise Imminent Alternative to Foreign Exchange

A report authored by researchers from the Henryk Niewodniczanski Institute of Nuclear Physics has found that Bitcoin is maturing. The report, courtesy of the Polish Academy of Sciences in Krakow, concludes that Bitcoin carries “concrete potential of imminently becoming a regular market” and “an alternative to the foreign exchange.” According to Professor Stanisław Drożdż, one of the researchers who worked on the study, the most important statistical parameters of the Bitcoin market indicate very clearly that for many months now it has met all the important criteria of financial maturity. In the case of other cryptocurrencies, it will be possible to expect a similar transformation. If this happens, the world’s largest market, the Forex market, can look forward to very real competition.

Hacker Livestreams 51% Attack on Bitcoin Private

On Oct. 13, ethical hacker “Geocold” promised he would 51 percent attack an altcoin to prove how easy it was, and he did, but the attempt did not run as smoothly as he might have hoped. Over 750 viewers were tuned in, and the likes of Jackson Palmer live-tweeting the spectacle, when Twitch suddenly pulled the plug. Despite the ethical hacker having no intention of attempting to double spend coins, such as by depositing them into an exchange wallet and swapping them for BTC, the streaming provider pulled the plug, presumably in response to members of the Bitcoin Private community reporting his channel. When Geocold returned on Stream.me half an hour later, he lasted a little over 15 minutes before the same thing happened. At the second attempt, Geocold dominated BTCP’s hashrate, producing a steady 10 MSol/s versus the rest of the network’s 6 MSol/s. The evening started as an exercise on the ease of controlling low hashrate PoW coins and ended as a demonstration of the need for censorship-resistant platforms.

South Korea to Announce Its ICO Stance in NovemberSouth Korea to Announce Its ICO Stance in November

South Korean government will probably announce its official position on Initial Coin Offerings (ICOs) in November. South Korea first banned ICOs back in September 2017, saying that the practice of raising funds via the issuance of cryptocurrency tokens was almost “a gamble.” Hong Nam-Ki has revealed that the government has held a survey, because some companies are still trying to conduct ICOs despite a country-wide ban. The results of the poll are expected to be ready by late October. South Korea has recently launched a six-month youth training programme that includes courses on blockchain and other technologies. The announcement came after the news of the government’s plans to invest $4.4 billion in a number of areas of the domestic economy, including blockchain.

Crypto Exchange Bitfinex Suspends Fiat Deposits, Expects to Resume ‘Within a Week’

Major crypto exchange Bitfinex has temporarily suspended all fiat wire deposits for the Euro, U.S. Dollar, Japanese Yen and Pound Sterling. The exchange has recently been prompted to officially respond to online rumours that claimed Bitfinex was insolvent and/or facing banking issues. The exchange’s statement was partly prompted by reports that its banking partner, Puerto Rico’s Noble Bank International, is now seeking a buyer and had lost both Bitfinex and affiliated firm Tether as clients. Bitfinex’s history of banking relationships began in April 2017, when U.S. Wells Fargo & Co. allegedly refused to continue operating as a correspondent bank. Bitfinex then filed a lawsuit against the bank that was quickly dropped. Bitfinex is currently the 4th largest exchange globally by daily traded volume, seeing a 154 percent increase over the 24-hour period to see almost $633.4 million in trades on the day.

Regulators Sue ICO Company That Falsely Claimed SEC Approval

The Securities and Exchange Commission said Thursday that it secured an emergency court order against an initial coin offering and its organizer who had claimed to have received approval from the agency. Ringgold and BlockVest, the agency said, “were using the SEC seal without permission, a violation of federal law, and falsely claiming their crypto fund was ‘licensed and regulated. ” Blockvest and Ringgold also allegedly misrepresented Blockvest’s connections to a well-known accounting firm, and continued their fraudulent conduct even after the National Futures Association (NFA) sent them a cease-and-desist letter to stop them from using the NFA’s seal and from making false claims about their status with that organization, the SEC said in a statement.

China Should Consider Launching its Own Stablecoin, Central Bank Expert Says in Op-Ed

An expert from the People’s Bank of China (PBoC), Li Liangsong, and professor of Fudan University Wang Huaqing wrote an article called “Analysis of Digital Stable Coins” for CN Finance, in wich he noted that The Chinese government should consider launching its own yuan-backed stablecoin despite the current ban on cryptocurrencies. The authors suggested that China should analyze other companies’ experience and “double its efforts” to create a local stablecoin, and other digital currencies have to stay prohibited in China. The Chinese government first started its anti-crypto campaign in 2017 by closing all of the country’s cryptocurrency exchanges and banning Initial Coin Offerings (ICO). The People’s Bank of China has then warned citizens about the risks of crypto trading. Despite the crypto ban, the country has actively been exploring blockchain solutions.

Crypto Exchange Hack Losses Already 250% Higher Than 2017, Q3 Report Shows

The Australian federal government is exploring the use of blockchain-based “smart money” for use in its National Disability Insurance Scheme (NDIS). The trial, dubbed “Making Money Smart,” has been developed by the Commonwealth Bank of Australia (CBA) and Data61. The latter is a digital innovation center that forms part of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) which is an Australian government corporate entity that undertakes scientific research to advance diverse local industries. Data61 says that NDIS was chosen for the proof-of-concept as it “involves highly personalised payment conditions,” outlining how under NDIS, individuals and their carers receive specified amounts of funds to spend on various goods and services provided for by the scheme. Using a Smart Money scheme would automate and secure the process, relieving users and service providers from needing to process cumbersome paperwork or administrative receipts.

Korean Crypto Exchange Sued for Controversial Token Schemes

South Korean law firm Aone filed a complaint with Seoul Central District Court on Oct. 5 against Newlink Co. Ltd., the owner of crypto exchange Cashierest. Lawyer Kim Dong-joo at Aone’s Seocho branch explained that his firm is pursuing charges against the crypto exchange for deviating from the public interest in order to restore the health of the cryptocurrency market. The suit alleges that Cashierest has committed two illegal acts by issuing its “dividend coin [called] cap (CAP)” on the capital market – first is a violation of the securities issuance procedure, as defined in Article 119 of the country’s Capital Markets Act, and the second is a violation of Article 178 which prohibits unfair trading. The law firm plans to expand the lawsuit to other exchanges such as Bithumb, Coinbit, and Coinzest. At the heart of the lawsuit is CAP, the exchange’s own token.

Swiss Financial Watchdog Issues Country’s First Crypto Asset Management License

The Swiss Financial Market Supervisory Authority (FINMA) has issued the country’s first cryptocurrency asset management license to a crypto investment fund, Crypto Fund. Crypto Fund is a subsidiary founded in 2017 by Zug-based Crypto Finance AG. The new license will permit the firm to legally offer a wide spectrum of collective investment products that track Bitcoin (BTC) and other crypto assets, including domestic funds and allows the firm to provide investment consultancy services for institutional clients. This summer, local companies partnered with the Zug, known in the crypto industry by the moniker, “Crypto Valley,”to trial a blockchain-based municipal voting system. Switzerland is proactive when it comes to regulating the new crypto space. In February, FINMA published detailed guidelines on ICOs, according to which many projects will be regulated under securities laws, while payment tokens fall under the Swiss Anti-Money-Laundering (AML) Act.

Dubai Government – Backed Digital Currency Will Get Its Own Payment System

Consumers in Dubai will soon be able to use digital currency to pay for goods, services, and utilities following a new government partnership. The deal between emcredit, a subsidiary of the Dubai Department of Economic Development, blockchain payment provider Pundi X, and its partner Ebooc Fintech & Loyalty Labs LLC will facilitate point of sale (PoS) payments in emcredit’s emcash currency. Ebooc will provide PoS terminals for in – store payments, while Pundi Ks plans to increase 100,000 units globally over the next three years. Dubai continues to position itself as a blockchain innovator at state level, with multiple schemes ongoing as part of its goal of becoming a fully blockchain-powered city by 2020.

Mastercard Patent Hints at Plan for Multi-Currency Blockchains

Mastercard has won a patent for a proposed system that would allow for the launch of different kinds of blockchains – including those that support multiple currencies.  The patent explains that a group or company may need to store different types of transaction information on a single platform – something that is currently difficult to do on a single blockchain. There is a need for a technological solution to provide a partitioned blockchain that is capable of storing multiple transaction formats and types in a single blockchain, reducing the computing resources and processing power required for deployment and operation of the blockchain, while also providing for enhanced usage of permissions for permissioned blockchains. The patent adds that an appropriately partitioned blockchain can receive information about transaction types from different computing devices.

1. Binance Labs Invests Millions in Blockchain Auditing Platform CertiK1. Binance Labs Invests Millions in Blockchain Auditing Platform CertiK

Binance Labs, the incubator wing of the Binance cryptocurrency exchange, has invested in a smart contract and blockchain audit startup, the company announced Monday. Called CertiK, the firm seeks to help secure smart contract and blockchain platforms through a formal verification process. The team has already begun working on ensuring existing blockchain platforms do not contain bugs that could lead to a loss of funds or other vulnerabilities. The investment “signals the recognition of the importance of formal verification in the blockchain industry. This technology includes CertiKOS, which has already been used in both enterprise and military programs, and is one of the tools used by the U.S. Defense Advanced Research Projects Agency (DARPA).

2. Binance Announces All Listing Fees Will Be Donated to Charity

The CEO of world’s largest cryptocurrency exchange Binance said he “hoped others would follow” his decision to donate all listing fees to charity after a sudden announcement Monday, October 8. According to the announcement, Binance will not only donate all such fees to charitable causes for the “greater good,” but also allow developers themselves to name the amount they pay, without demanding a minimum fee. Binance CEO Changpeng Zhao claimed the material was fake, he argued that it was the quality of the asset which was clinched the listing process, avoiding details about Binance’s mysterious listing fee structure. Binance is currently the world’s largest crypto exchange by daily trade volumes, seeing about $806.5 million in trades over the past 24 hours to press time.

3. Venezuela Mandates Passport Fees Must Be Paid in Controversial Cryptocurrency Petro

Venezuelans can only use the state-backed cryptocurrency, the Petro, to pay for passport fees starting next week, the country’s vice president Delcy Rodriguez said in a press conference. The average monthly minimum wage in Venezuela is four times less than the cost of the raised passport fee. Venezuela has sought to combat the side-effects of rampant inflation and a failing economy by embracing the use of cryptocurrency to circumvent capital controls. Petro, President Nicolas Maduro’s purported solution to the country’s economic crisis, has consistently courted controversy, with accusations last week claiming its developers copied the whitepaper of altcoin Dash. Along with the passport fees shake-up, Rodriguez also announced the formation of a dedicated migration police force, ostensibly designed “to preserve citizen security and migratory control.”

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.