FATF: US imperfectly perform our recommendations for the regulation of cryptocurrencies

Group of development of financial measures against money laundering (FATF) found minor flaws in how the U.S. fulfilled the standard regulation of cryptocurrencies. This is stated in the new report of the organization.

United States of America included in the group of countries that generally follow the recommendation 15 in respect of virtual assets and service providers in the field of virtual assets (VASP). The degree can range from «discrepancy» to «full compliance».

One of these experts called the threshold amount, over which the registered financial service providers (MSB) should maintain detailed records of transactions. In the US it is three times higher than the FATF recommended level of $1000.

«A higher threshold is not supported by low risk of money laundering and financing of terrorism», — is emphasized in the review.

In addition, in the United States not specifically identificeret VASP with «higher risk» because they largely fall under the broader regime of MSB.

«It remains unclear whether the current approach is focused on risk, as only 30% of all registered providers of convertible virtual currencies tested 2014» — explain specialists.

In the report there is no mention of how well in the United States perform so-called «road rule» (the Travel Rule).

This provision requires the inclusion of financial institutions mandatory information about the senders and the recipients and take appropriate action if this information is not available.

Such information should contain the physical address of the sender, his passport number or user ID tying him to the company, date or place of birth.

Earlier are important for industry members as Circle, Coinbase and Chainalysis, said that compliance with the «road rules» will undermine the company’s business.


Binance opened OTC services for transactions over 10,000 USDT

Popular cryptocurrency exchange Binance has launched a portal-counter (OTC) trading.

«The portal is a platform that operates on the principle of price proposals request in real time. Users will be able to confirm trades and get quick calculations directly into their accounts Binance», — said the representative of the exchange.

The screenshot below shows that the user needs to specify the desired number of coins for the purchase or sale, or the amount of funds that he is going to spend or receive.

If a market participant has sufficient funds for the transaction, the offer can accept or reject. In case of confirmation of Binance accepts the request for processing.

The minimum amount for a transaction is equivalent to 10 000 USDT; max — matches 250 BTC.

Currently buying bitcoin available for BUSD, USDT and USDC. For the same stabilini can be sold not only BTC, but 24 other coins, including ETH, LTC, BNB, EOS and TRX.

To use the platform will clients Binance with a second level of verification.

It also became known that Binance going to start my own mining pool. According to the head of the exchange Campana Zhao is no accident the image from the first live broadcast #BinanceMiningPool now being distributed to members of the Chinese community.

We will remind, according to some reports, Binance intends to purchase the CoinMarketCap for $400 million.


Technolithic: for growth to $8000 bitcoin you need to break through the range of $6800-7000

Trader Amsterdam stock exchange Michael van de Poppe wrote that changed the short position for long, as the price of bitcoin could soon reach $8000.

«Everyone, including me, yesterday was shortly and are now looking for an entry point to long positions. Thoughts are the same: a break above $6800-7800 — bullish signal, after which I expect $7800-8000»

Also, according to him, an important support level remains at $6450.

Similar opinion is shared by the trader and the founder of the educational platform Blockroots Josh Rager. He points to the importance made the day before at $6600, after which we can expect breaking $7000.

Also note that tracking the capitalization of the ten most popular cryptocurrency Bloomberg Galaxy Crypto Index (BGCI) for the first few months filed a reversal signal.

Last BGCI filed bullish signal at the beginning of the year, when bitcoin was trading around $7000.

According to CoinGecko, in the last days BTC has increased by 5.3% and now its average price is close to $6650.

Informed about the high probability of significant growth of the market after a short-term fall, said senior analyst RoboForex Dmitry Gurkovskiy.


A botnet has infected thousands of Microsoft servers for cryptocurrency mining Vollar and Monero

From may 2018 to three thousand servers running Microsoft SQL every day became a victim of the malware that was used including the installation of cryptainer. The situation disclosed in the report of experts on cyber security Guardicore Labs.

The attackers were able to covertly mine Monero and another tied to the dollar Aldon Vollar (VDS), which combines elements of privacy and smart contracts.

In the name of a botnet Vollgar a reference to this token, as well as rude method of gaining access to the victim server by trying possible combinations of the password (from the English. burglar — «cracker»).

Contamination covered equipment organizations in the areas of health, aviation, education, IT and telecommunications in China, India, South Korea, Turkey and the United States.

«The base of these servers is attractive to attackers due to the huge volume of data stored in them, such as user names, passwords, and credit card data», — stated in the review.

Attack Vollgar came from more than 120 IP addresses, mainly from China. According to experts, it compromised the machine, reconfigured to scan and infect new victims.

Victims are not always aware of the actions of the botnet. According Guardicore Labs, one in five hacked server remained infected for one to two weeks.

The researchers stressed that the attackers successfully passed antivirus and EDR technology.

Guardicore Labs released a script that will allow potential victims to identify signs of interference botnet in system.

Forklog previously wrote about the original techniques for masking activity of a botnet Stantinko.

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Closed another Brazilian bitcoin exchange

XDEX cryptocurrency exchange, launched the largest broker in Brazil XP Grupo, announced about the termination of activity.

According to the exchange, caused by adverse market, high competition and lack of progress in regulation of the cryptocurrency industry.

Users can close their positions and withdraw in Brazilian real during the 30 days. When you make the withdrawal request within one working day assets sent to the client’s Bank account specified on the XDEX.

If users don’t withdraw funds within the specified period, the exchange will sell the assets yourself and send the obtained from the sale amount to the customer’s Bank account within three days.

Grupo XP announced about the launch of XDEX in September 2018.

Previously in Brazil were closed cryptocurrency exchanges Bitcoin Acesso and Latoex. The reason was the pressure from the regulator.


Coinbase has invested 1.1 million in USDC DeFi-services Uniswap and PoolTogether

The largest American cryptocurrency company Coinbase has invested 1.1 million USD Coin (USDC) in neoscopelidae exchange Uniswap and decentralized service win-win lottery PoolTogether.

In particular, the Coin of 1 million USD was invested in the liquidity pool USDC/ETH service Uniswap. The remaining 100 000 USDC is directed to based on the Protocol Compound lottery PoolTogether to increase the amounts of users.

The funds were invested through Coinbase created in September 2019 Bootstrap Fund, which specializiruetsya on supporting projects from the sphere of decentralized Finance (DeFi). Also last fall, the American company has invested one million dollars in DeFi-the service Compound and the trading Protocol dYdX.

According DeFi Pulse, the total cost of the Ethereum block for smart contracts, financial applications, is $643 million.

Note that in February this figure exceeded $1 billion. it is possible that the decrease in numbers is due to a sharp fall in the price of Ethereum, rather than a decline in user activity DeFi-applications.

ForkLog previously reported that the volume of trading on the decentralized exchange in March increased by 53%, reaching a record $668 million


Will the bitcoin become a «safe haven» in times of falling markets?


Panic from pandemic coronavirus, which has already more than a month continues on world markets, helped to stop a large-scale intervention of the U.S. Federal reserve and lower interest rates in the United States. On the factor of the disease overlaps with falling oil prices and the debt load of the financial sector. Together with other assets in this «perfect storm» hit and bitcoin lost almost half the cost of just two days on March 12-13. For some, this was proof of the inability of the first cryptocurrency to perform the role of «digital gold», others insist that the continuation of the crisis BTC will become a protective asset. What arguments lead hand — versed DeCenter.

The global stock market has been declining for a month. We will remind, initially the main negative factor was the fear of the spread of coronavirus epidemic and, as a consequence, the slowdown in economic activity. However, on March 9 markets experienced Black Monday, when the leading indexes closed the fall: the Dow Jones and S&P 500 lost about 8%, Nasdaq is 7%, and FTSE — 8%. Similarly, the led itself, and Asian markets.

The culprit was a sharp drop in world oil prices (from 25% to 34%) as a result of Russia’s withdrawal from the transaction «OPEC+». Russia has refused once again to reduce oil output proposed by Saudi Arabia, which was due to a decrease in oil demand in China because of the epidemic. March 9, after the weekend, the stock market reacted to the collapse.

Held hostage by record volatility in the global steel markets and cryptocurrencies.

Capitalization of the stock market: minus 60% for two days

Cryptocurrency for a long time kept aloof from the panic in the stock markets, and even lower prices of bitcoin from $9000 — $7800 March 9 could not be called dramatic. But everything changed after a couple of days after «Black Monday».

March 11, the world health organization (who) recognized coronavirus pandemic (global spread of the disease). Following this, from 12 to 13 March, the cryptocurrency market have fallen by 60%, and the price of bitcoin dipped to the key support area at $3900–$4000.

For a long time, bitcoin was seen as «digital gold» — instrument hedging the risk of having a negative correlation with the stock market. By this logic, if the stock market falls, capital needs to flow into bitcoin, increasing its price.

However, the events of March 12-13, showed that regardless of the reason, at the global level, bitcoin is considered as high risk an asset that disappeared during the crisis, and not Vice versa. Accordingly, the first crypto-asset is closely correlated with the state of the stock market.

Not «digital gold», and alternative assets

Research Director CoinDesk Noelle Acheson believesthat because of this behavior bitcoin lost the title of «digital gold» and, perhaps, forever. Moreover, it was only for his followers. However, in her opinion, the «black week» showed that «safe havens» in the financial world is not in principle:

«Gold and US government bonds, the assets to which the market traditionally addressed in times of confusion, also fell, largely because of shrinking liquidity. Investors struggled trying to get to the cache, but even such an asset having a status of «safe Harbor» may be at risk on the background of how the global economy will slide into recession, and geopolitical challenges monetary policy and the belief in the sovereign debt».

«In a world troubled by income» asset type of bitcoin, the cost of which does not depend on current cash flows can take a firm place among the so-called alternative assets. Investors perceive these assets as an opportunity to compensate for the upcoming «shift of market fundamentals,» and bitcoin does not depend on macroeconomic indicators will be most welcome.

As noted General Director of Xapo cryptomeria Wences Casares in comments to Fortune, bitcoin is a very young asset. Once it becomes «digital gold», but now he’s «the kid», and it is unknown how long the transition to adulthood. From this point of view and agree to the managing Director of Scalar Capital Linda si: in the long term bitcoin will become a «safe haven», but now he’s acting like something paradoxical and as a protective and as a speculative asset.

Great opportunity in the «age of inflation»

But not everyone agrees that the first cryptocurrency has lost the role of «digital gold». The founder of Avanti Financial Group Kathleen long in the podcast from Anthony Pompliano expressed the opinion that it is impossible to judge about the ability of bitcoin to be a protective asset in the interval 1-2 weeks. She also noted that protecting the assets is usually sold out in the first place, because it is not tied to the derivatives and, therefore, can be cashed:

«Margin trading has really affected [such assets] <…> If you own physical gold or private keys to their crypto-assets, they are yours. You have full right of ownership of these assets.»

Redundancy in instruments with leverage in the beginning of 2019 celebrated analysts of the exchange BitMEX. According to their study, the volume of margin trading by the companies on asset management in the U.S. market bonds and derivatives based on securities with fixed yield reached critical values. In such conditions a sharp drop in the markets will lead to a massive liquidation of positions and the lack of liquidity.

BitMEX recently released a new study, which stated that «new economic reality». According to the findings of researchers, Central banks have exhausted the ability to influence the economy through interest rates (March 15, the fed lowered its key interest rate to 0-0.25%). However, the social obligations of the state grow, and with them, the national debt, which will be covered by issuing currency financial institutions. In the US, it will lead to growing inflation in the 70’s. for Example, from 1979 to 1980, the inflation of the dollar reached 15%.

Statistics of inflation of the U.S. dollar. Source.

This will be a «shock» for Western economies, who do not remember high inflation of the last 30 years. In the new conditions the traditional defensive assets, like gold, will be of special importance. «This could be the greatest opportunity that appears to have bitcoin in his entire short life,» the authors conclude.

Stock market swings

High correlation between bitcoin and traditional Finance in recent weeks, remains a fact. Although there are nuances.

First, bitcoin is not always so closely associated with the stock market as it is noted in the study Longhash. This trend has been observed for several years. In 2014, the correlation was inverse, and 2018 were consistently close to zero:

The correlation value of BTC prices and the DJIA. The greater the deviation from 0, the higher the correlation, positive or negative. A value of «0» means no correlation. Source.

Second, as noted by Cointelegraph, since the yield of the first cryptocurrency and the ether was moving in positive zone, while gold and the stock market had a lower profitability. Compared to the price at the beginning of the year and even after the collapse of March 13 bitcoin lost less than equities (the S&P 500 index) or WTI:

The change in the value of bitcoin, gold, dollar, WTI crude oil and the value of the S&P 500 index. Source.

Since bitcoin is now «tied» to financial markets, its use for cryptocurrencies has brought measures the fed: rate cut on 15 March and the large-scale purchase of government bonds under the policy of «quantitative easing» has led to stopping panic and closure of stock markets in the «green zone». At the same time, by 20 March the price of bitcoin has recovered to $6500.

COO Xena Exchange Konstantin Plavnik believes that bitcoin cannot be considered «digital gold»: «How can be called a defensive asset, the price of which for the year is cut in half?». Dramatic fall of the stock market, according to him, due to the fall of the stock market, which occurred due to the «black Swan». Market participants began to actively get rid of risky assets, including proved and cryptocurrencies.

The reason for the partial recovery of the stock market Fin called the overall positive background in the global economy: «investors had a shock. Now he’s gone, they have again started to invest.» Xena the representative also added that the fed’s actions to lower the rate enough to stop the crisis trend. Inflation may slightly increase for some time, certainly not up to 70 years, as predicted BitMEX.

Is there any correlation?

The end of last week gives hope to the recovery of the stock market due to the correlation with the stock market. However, BTC continues to swing on the waves high volatility, and if a high correlation is retained, the new collapses in the global economy will be stronger to respond to the cryptocurrency.

Regardless of the price of digital assets may become business associated with bloccano and cryptocurrency: Morgan Stanley and Goldman Sachs has predicted recession and has adjusted the indicators of global growth to 0.9-1.25% by 2020. It is not known how it will behave with the economy under continuation of the pandemic in the early stages and when the disease will end.

Some observers point to the fact that bitcoin could not protect against coronavirus panic, but should implement its role as a protective tool after the fed turned on the printing press, and the government bond yield is approaching negative values.


Whether Hodler to sell their bitcoins?

The economic crisis caused by the pandemic Covid-19, may force a number of hontarov of bitcoin you want to sell your coins in the pursuit of cash.

Deadly coronavirus Covid-19 has already had a devastating impact on various countries and their implications for the world economy may be even more painful. Massively analysts are predicting the onset of the recession. As a consequence of widespread quarantines, the unemployment rate is growing rapidly in Europe and in the United States.

It is obvious that the current situation will have the most dire consequences for ordinary citizens around the world. According to the businessman and the candidate of the Republicans in the House of representatives of the U.S. Congress David Hochstein, the current liquidity crisis may force the current holders of bitcoin (PTS) to begin to cash out their coin.

«In my humble opinion, we will soon see how people will sell bitcoins to fill the pockets of at least some Fiat cash», he suggested.

When despair eclipses hope

Bitcoin has long attracted investors as a store of value because of its steady upward trajectory in historical perspective. The result was a huge army «of hontarov» trying to Park and increase their savings in this scriptactive.

Although bitcoin was initially developed as a response to the financial crisis of 2008, it should be recognized that until now it has not yet passed the test of battle as an effective alternative tool for addressing a new crisis.

It is not excluded that it would be quite wrong, as dreamed criptonita. The General panic in the markets can lead investors in bitcoin to the point of despair, in which expectations of future profits will give way to the urgent and critical need for traditional cash.

In addition, the process of its formation, bitcoin has departed from the original plan for the transformation into an independent financial system and world currency. Instead of a means of daily payments, it has become more of an investment tool and store of value. This also means that in times of financial crises, it can offer no alternative to Fiat, and the possibility of its acquisition.

Someone loses, someone picks up

However, every coin always has a reverse side. Despite the hard times that followed the stock market this year, a bitcoin Hodler continue to believe in the bright future of the coin.

The same Hochstein in the subsequent exchange of comments with your readers stressed that all the coin that will go on sale, there are their customers, their intentions and life circumstances.

This assumption also is not unfounded, especially if we take into account the current policies of world governments and Central Banks that carry out an unprecedented injection of liquidity in the traditional financial system, monstrously inflating the money supply and debt ratios. Perhaps, against this background, the anti-inflationary bitcoin will be able to maintain its attractiveness to investors.


The transfer fee of 100 000 BTC worth $633 million amounted to 26 cents

April 1 more than 100 000 serious bitcoins were transferred from one unknown to another wallet. The amount of the transaction amounted to more than $633 million and paid fee – less than $1.

It turned out that this transaction made a custodial service company Xapo, despite the fact that kriptonyte hovers fear of the dump.

As usual, about the transaction said the Whale Alert service. It was 101 857 BTC for a total of $633 535 530:

«101 857 BTC ($633 535 530) transferred from an unknown account unknown wallet».

However, the most impressive thing in this transaction is paltry Commission 3935 Satoshi ($0,26).

Many traders also feared that such amount in bitcoin may be on some bitcoin exchange and cause serious dump, if these coins will sell.

However, Whale Alert said that it was a transfer of funds between internal wallets Xapo, the company, located in Hong Kong.

The company started its operation in 2014, and its main investors was Pantera Capital, the Rabbit Capital, Fortress Investment Group and Benchmark. It is also worth noting that Xapo is one of the founders of the Libra Association, which seeks to launch its own cryptocurrency world.

In mid-January there appeared the information about the enormous bitcoin transaction 124946,622 BTC, the Commission on which amounted to about $83. Then, according to one Reddit user, this transaction could be associated with the activities of well-known crypto currency exchange BitFinex.

However, it seems that the recent transaction in BTC 101 857, breaking all records for its cheapness.


The number of bitcoins in the wallets of BitMEX has decreased by 25% over the last couple of weeks

The number of bitcoins in the wallets of the cryptocurrency derivatives exchange BitMEX for two weeks has fallen by almost 25%. This draws the attention of Coin Metrics.

As of 13 March, that is immediately before the collapse of the bitcoin when BitMEX recorded a record volume of foreclosures in the exchange’s wallet was 315 000 BTC. By 29 March the value fell to 244 000 BTC.

The events of 13 March and the role of BitMEX they continue to raise questions for the market participants. Not all were satisfied with the explanation of the company regarding the use of the assets of its insurance Fund at this time.

The outflow of capital occurs not only at BitMEX, but also on other bitcoin exchanges. Binance, Gemini, Bitstamp, Poloniex, Huobi, they all experienced declines in balances in their bitcoin wallets in the last 30 days, although to a lesser degree. The amount of assets in this segment grew by only Kraken and Bitfinex, one cent each.

Intelligence service Glassnode indicate that the balance of exchange in bitcoin wallets dropped to eight-month low.

Simultaneously there was a sharp drop in the number of transactions performed daily by the network of bitcoin. From the beginning, the figure has grown along with the price, but in mid-March, the schedule slipped, according to data Bitinfocharts.

The peak was reached about 368 000 transactions per day. Now the value is less than 250 000, which is the lowest level since December 2018.

A number of commentators sees the totality of factors described a positive signal, suggesting that traders are withdrawal assets for long-term storage in personal wallets.