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.

1. Austrian Government to Notarize $1.3 Billion Bond Auction Using Ethereum

The Austrian government is to use the ethereum blockchain to notarize the auction of a government bond worth €1.15 billion, or around $1.3 billion. The Federal Government’s Finance Agency (OeBFA) has assigned banking giant Oesterreichische Kontrollbank (OeKB) to carry out the auction on its behalf. The bank’s responsibilities will include deploying the notarization service to authenticate auction transaction data and subsequently store it on the blockchain, the agency explained. A news report indicated that OeKB has confirmed that it will use internal IT resources to oversee the deployment, which will utilize the ethereum blockchain to store the data as hash values on the public network. This is the Austrian government’s first move to adopt blockchain for domestic financial transactions, the OeBFA said, adding that it views the emerging technology as an “economic policy focus.”

2. US Judge Sides With CFTC in Fraud Case, Ruling Cryptos Are Commodities

A U.S. judge has sided with the Commodity and Futures Trading Commission (CFTC) in a lawsuit involving an allegedly fraudulent crypto investment scheme, ruling that the cryptocurrencies involved are commodities for the purpose of the case. The CFTC charged two individuals and a Las Vegas-based business called My Big Coin Pay over the alleged cryptocurrency-related scam back in January. Subsequently, the defendants filed a motion to dismiss the case on the grounds that the cryptos involved are not commodities and, as such, the CFTC has no jurisdiction over the case.

3. Chinese Banking Giant Issues $1.3 Billion in Securities on a Blockchain

Bank of Communications, one of the four state-owned commercial banks in China, has completed a major issuance of residential mortgage-backed securities (RMBSs) using a blockchain network. China Securities Times, the mouthpiece of Chinese financial regulators, reported on Thursday that the banking giant issued a total of 9.3 billion yuan (or around $1.3 billion) worth of RMBSs via its proprietary blockchain network, Jucai Chain. According to a document dated Sept. 27 that outlines details of the issuance, the Bank of Communications was the main issuer with China International Capital Corporation as lead underwriter and book runner for the offering. Other co-underwriters included the Industrial and Commercial Bank of China and China Merchants Bank. Other commercial banks in China have also recently announced various asset-backed security issuances via distributed networks.

1. SBI Ripple Asia Wins Payments License for Blockchain Money App

A joint venture between SBI Holdings and Ripple has moved a step closer to launching its blockchain-based payments app for consumers. SBI Ripple Asia announced Wednesday it has completed registration with the Kantou bureau of Japan’s Ministry of Finance as a licensed agent for handling electronic payments. The move clears the regulatory path for SBI Ripple Asia to roll out its MoneyTap payments app – one aimed to facilitate peer-to-peer money transfer for retail users over a DLT network. SBI Ripple Asia explained that, as MoneyTap uses blockchain as the underlying technology and connects with open APIs among participating domestic financial institutions, it falls under this regulatory category as a third-party transaction agent.

2. US SEC Seeks Sanctions Against Individuals Behind Alleged Crypto Scam

The U.S. Securities and Exchange Commission (SEC) is seeking sanctions against the individuals behind the reportedly fraudulent Initial Coin Offering (ICO) known as PlexCoin. Securities and Exchange Commission had been participating in court proceedings against Dominic Lacroix and Sabrina Paradis-Royer, the owners of PlexCorps since December 2017. The PlexCoin allegedly had raised $15 million from thousands of investors, with a previous promise of 1,354 percent return in just 29 days. Yesterday, SEC decided to file a motion to compel and a motion for discovery sanctions against the duo. They have ignored a court order from August which demanded further accounting documents regarding to investor funds as well as the defendants’ assets. It seems that defendents demonstrate no intention to participate in the outgoing case, and could potentially use a defferal strategy.

3. UK – Based Crypto Platform Launches $1.45 Million Crowdfund Campaign to Bank the Unbanked

The London – based crypto platform, Nebeus, has launched a 1.1 million pound ($1.45 million) crowdfunding campaign in order to bring financial services to people around the world. Nebeus is a new crypto bank which facilitates crypto-collateral Bitcoin loans globally. The Nebeus’ campaign went live on Sept. 24, 2018 and it will last until October 23, 2018. So far, Nebeus has already attracted more than 400,000 pounds ($527,490). According to data from the World Bank, there are 1.7 billion adults globally who remain unbanked, and two-thirds of them own a mobile phone that they could use for online banking. The company wants to make banking simple, offering user-friendly Bitcoin wallets and its recently launched Exo card, that will allow users to convert crypto into fiat, making transactions convenient online, offline and at ATM – s. According to the company, 30,000 users of the Nebeus platform have already created active blockchain-based wallets.

1. BIS Report Finds Strong Link Between Crypto Prices and Regulators’ Actions

According to the report published September 23 by BIS – an organization based in Switzerland made up of 60 of the world’s central banks – cryptocurrencies retain close links to news of regulatory actions across different national jurisdictions. This is despite crypto’s design to function in a borderless and frictionless manner based on foundational IoT trusted transactions in a peer-to-peer and decentralized manner. The markets responded most markedly to news events regarding the legal status of crypto. Adverse market responses were found to news that pertains to bans, the possible applicability of securities market law to crypto assets, or to announcements that crypto will not be recognized as a currency. Conversely, solid market gains were sealed in response to governments’ unveiling of new legal frameworks tailored to the crypto space. BIS noted that non-specific – or general – warnings against the risks of crypto, as well as announcements pertaining to the possible, but indeterminate, issuance of central bank digital currencies (CBDCs), had a negligible effect on crypto price action.

2. Over 75 New Banks: JPMorgan Expands Blockchain Payments Trial

A major blockchain payments trial launched by JPMorgan, Australia’s ANZ and the Royal Bank of Canada has just gained over 75 new banks as participants. The three banks set up the project in October 2017, aiming to slash both the time and costs required for interbank payments using traditional methods. Called the the Interbank Information Network (IIN), the platform is built on Quorum – the ethereum-based blockchain network developed by JPMorgan and possibly to be spun off into its own enterprise. In particular, the trial is aimed to address payments that contain errors or get held up for compliance reasons – problems that can takes weeks to solve with multiple banks being involved across the payments chain.

3. Ice’s Bakkt Reveals First Crypto Product as Physical Bitcoin Futures

Intercontinental Exchange (ICE) confirmed that its Bakkt cryptocurrency platform’s first offering will take the form of physical Bitcoin futures. According to Intercontinental Exchange, Bakkt will be a regulated ecosystem for institutional investors and it will offer futures against fiat currencies, such as: the U.S. dollar, British pound sterling and euro. Buying one USD/BTC futures contract will result in daily delivery of one Bitcoin into the customer’s account. The much-anticipated Bitcoin exchange-traded funds (ETFs), currently awaiting approval from U.S. regulators, are differentiate from Bakkt’s offering in the way that traders of the ETF-s would not take the delivery of any actual bitcoins.

1. French MPs Propose Legal Framework for “All Digital Assets” Providers

The French Government plans to provide a legal framework for all “digital assets” providers. An amendment related to regulation of all service providers in the crypto industry was proposed by three members of President Emmanuel Macron’s party – Valeria Faure-Muntian, Christine Hennion, and Eric Bothorel, and it will be discussed by the end of the September. The amendment aims to expand the existing legal framework in order to allow all crypto market participants to obtain consent from the main stock market regulator in France, Autorité des Marchés Financiers (AMF). Back in July, a government official and academic Jean-Pierre Landau released a report stated not to over-regulate cryptocurrencies.

2. US Tech Firm Eyes Blockchain Supply Chain Solution for Major Chinese Ports

U.S.-based technology company Ideanomics has partnered with the Asia-Pacific Model Electronic Port Network (APMEN) Trade Tech Co. to streamline supply chains with blockchain tech. Together with APMEN Trade Tech Co., Ideanomics aims to leverage blockchain and what it calls “super artificial intelligence” to cut out “layers of middlemen” in port clearance and shipping handling for the Asia-Pacific Economic Cooperation’s (APEC) online port clearance system. The first instigation of the tools will take place in two major Chinese ports, Shanghai and Guangzhou, the former holding the title of the world’s busiest port in 2017. Ideanomics will have a 60 percent stake in the new venture, promising it will list on an unspecified Chinese stock exchange before the end of the year.

3. IBM Awarded Patent for Autonomous Self-Servicing Devices Within Blockchain-Based IoT System

IBM has won a patent for the autonomous self-servicing of networked devices that form part of its Autonomous Decentralized Peer-to-Peer Telemetry (ADEPT) environment. IBM first unveiled a proof-of-concept (PoC) for ADEPT in partnership with Samsung back in March 2016. The system uses a blockchain protocol as a basis for a distributed network of devices. According to IBM, self-servicing devices can further boost the improved efficiency of a decentralized system, as they can diagnose and automate the solution for a range of situations such as self-diagnosis, predicting equipment failure and anticipating service needs. The patent continues to outline further functionalities as part of the decentralized IoT system, in which the devices would engage in controlled self-servicing based on foundational IoT trusted transactions in a peer-to-peer and decentralized manner.

1. Russian Banks Would Be Willing To Work With Cryptocurrencies

A group of representatives from major banks in the country met with several prominent personalities involved in the world of crypto-business to formulate in a roundtable a series of proposals and strategies to promote crypto-based financial instruments and their legal adoption. The discussion revolved around the regulatory issue as the main problem and was moderated by Luc Frieden, ex-Minister of Justice and Minister of Finance of Luxembourg. Representatives of leading international financial sites such as BitFlyer, the largest exchange in Japan, NEM blockchain platform and Litecoin cryptocurrency, took part in the meeting. Together with VNX Exchange, they discussed the regulation of the world’s crypto-currency market. The board members worked extensively on various proposals to solve the problem, clearly demonstrating that there is a willingness on the part of banks and other fintechs to open up to the crypto-currency markets.

2. UNICEF France Accepts Donations in 9 Cryptocurrencies

UNICEF France has announced it’s now accepting donations in 9 cryptocurrencies, according to a press release published by French media. The local office of the organization collects contributions in some of the most widely known digital coins, including bitcoin cash (BCH), bitcoin core (BTC), ethereum (ETH), litecoin (LTC), ripple (XRP), eos (EOS), monero (XMR), dash (DASH), and stellar (XLM). Donations in all supported cryptos are currently accepted directly through the website of the French branch. The UNICEF official pointed out that cryptocurrencies and crypto technologies represent an innovation in fundraising for solidarity but are still employed by few organizations in the field. At the same time, he noted the positive trend in regards to the spread of cryptocurrency donations.

3. Collaboration With PNC Leads to XRP Surge

United States bank PNC will begin using RippleNet to process international payments for its clients according to a report made on September 19th. PNC’s Treasury Management unit will be using it’s xCurrent software solution to expedite cross – border transactions for the bank’s U.S. commercial clients. PNC clients wil be allowed to recieve payments instantly which will change the way companies approach cash flow and account management. Ripple raised over the next few days with a 15 percent gains in overall market capitalization. Today, Ripple became second biggest cryptocurrency by market cap, at around $23 billion, but, Ethereum is now back to the second spot by market capitalization. October is the month in which Ripple is hoping to launch a commercial version of xRapid. The company previously partnered with Bittrex, Mexican Bitso and Philippine Coins.Ph in order to facilitate xRapid to move between XRP, U.S. dollars, Mexican and Philippine Pesos.

1. Japan: Crypto Thefts Have Tripled This Year, Totalling $540 Million So Far1. Japan: Crypto Thefts Have Tripled This Year, Totalling $540 Million So Far

Japan’s National Police Agency has revealed that 60.503 billion yen ($540 million) worth of crypto was stolen in the first six months of 2018. In 2017. around 662.4 million yen ($5.91 million) worth of crypto was reportedly stolen online, in 149 incidents. The largest single incident was the industry-record-breaking hack of crypto exchange Coincheck, in which the equivalent of 58 billion yen ($520 million) worth of NEM was stolen this January. The remaining 2.5 billion yen ($22 million) stolen in crypto this year involved the hacking of individual accounts, and 60% of those cases involved individuals who use the same password across their email, e-commerce and online crypto dealings.

2. Australian Financial Regulator Issues Warning on Misleading ICOs

The Australian Securities and Investments Commission (ASIC), has issued a warning on “misleading” Initial Coin Offerings (ICOs) and crypto-asset funds targeted at retail investors, in today’s report published on ASIC’s official website. ASIC has stopped five different ICOs from raising capital since April 2018. The main problems are misleading or deceptive statements in sales and marketing materials, and unregistered investment schemes that do not hold Australian financial services licence. ASIC has earlier revealed its plans approach cryptocurrency exchanges and ICOs with increased scrutiny, designating the industry as a high-priority one for the agency until 2022.

3. New York University Offers Major in Blockchain Technology

New York University (NYU) has become the first University in the U.S. to offer students a major in blockchain technology. The program will be provided by the NYU Stern School of Business, which was also a pioneer in offering undergraduate courses in cryptocurrencies and blockchain. They hope to establish a groundwork so the students can understand both the legal and the business implications and take into the new market. According to a Coinbase study, 42 percent of the world’s top 50 universities have at least one class on cryptocurrencies and blockchain. The study found that blockchain and crypto-related courses are most popular in the U.S. among other countries. Another study shows that 21.2 percent of college students used loan money to fund a crypto investment, hoping that the upward price volatility in crypto would help pay their debts faster.