The results of the week — #DeCenterWeekly

«Look at APTLD and me. Yes, I’m on a horse»

32,000 Indians signed a petition against the ban of cryptocurrencies.

Thursday, April 5, Central Bank of India has decided to prohibit transactions with cryptocurrencies: financial institutions are required to cease associated with cryptocurrencies activity for three months. On the same day cryptologist India made a petition, sending it to the Central Bank and the Prime Minister, with an appeal not to smother developing technology, and to create a legislative framework that will enable it to grow and make a positive impact on the economy. To date, the petition on the website change.org signed by more than 32,000 Indians. The document’s authors draw attention to the fact that the local cryptocurrency exchanges are trying strictly to adhere to the standards and many are already enhance KYC standards. The petition also mentioned the plan of the Central Bank to issue its own cryptocurrency. The protesters said that the current CEO of Microsoft and Google have Indian origin and in favorable environment could create a local Internet company, hinting that the next generation «technical geniuses» can go on their way. To similar risks and appealed to the Chinese crypto-businessman Kai Wensheng criticizing the restrictive policy of his country, and saying that China may miss the «new Amazon». Earlier, in December, a petition in protest against the announced restrictions were citizens of South Korea, and recently it became known that the Tax administration, the Ministry of justice and the financial regulators of the country to discuss the opportunity to cancel the ban on ICO. The mayor of Seoul said that after the «terrible resistance» on the part of society the government is «seriously thinking» about possible exemptions.

Shanghai police broke the blockchain conference.

Thursday, April 12, in China had to go through the conference of the Global Fintech & Blockchain China Summit in 2018. However, around noon local time, the police interrupted a morning session, and ordered all participants to leave the event. The official reasons for intervention are at the moment specified, but, according to the assumptions that appeared in the media and on Chinese social network Weibo, the conference program was claimed to ICO project, which investors lost a lot of money. They filed a complaint with the police. The provider, PTP International, has denied the rumors, saying that the event is fully consistent with Chinese law: «We’re still investigating the reasons for the suspension, and at the moment the police refers to the security threat. We think through possible compensation to the participants. The conference was held in accordance with Chinese regulations and did not include any presentation. ICO» — said in a PTP International.

Platform trade power Golem launched the main network.

Golem gathered during ICO in 2016 820,000 ether ($8.2 million at that time and about $340 million today), two years later introduced the beta version of a core network, which in the white paper is described as «a Copper Golem» — the first stage of the project. In the current format of service based on the Ethereum blockchain, allows computers to «rent» the unspent energy of the Central processor unit (CPU) and create computer-generated images (CGI) using Blender (including animation, visual effects, interactive 3D applications and video games). Interface, is directly linked with Blender, allows you to purchase computing power for the Golem token — GNT. This release «a Copper Golem» is intended to test the technology in real market conditions with real money. BY Golem connects providers of computing power with the «buyer» and directs the provider smaller tasks, which are then combined in P2P networks and presents in a single image, says CEO Golem Julian Zawistowski. In 2016 Golem represented one of the first generations of Ethereum applications: «to Underestimate the complexity of what we want to create a characteristic overall development and particularly for the blockchain,» says Zawistowski, explaining the prolonged work on the project. According to the white paper, next, more advanced versions should be a «Clay Golem», «Stone Golem» «Iron Golem». Simultaneously with the release of the core network team announced the launch of the bounty program that will encourage developers about detected bugs.

Gemini launches auction of blocks for bitcoin and ether, and may implement a patented system that adds security to the transaction.

Thursday, 9:30 am et, the cryptocurrency exchange, owned by bitcoin billionaire brothers Winklevoss, has launched bidding for blocks of two leading cryptocurrency. The new option is designed primarily for institutional investors: the minimum threshold is 10 bitcoins and 100 air. Trading blocs are designed to provide «an additional source of liquidity,» enabling them to make large transactions outside of the basic books of orders. Also, thanks to the new function, buying or selling large amounts of the cryptocurrency will not have a significant influence on its course. As explained by the exchange, «any user can place an order by specifying the type of transaction (buy or sell), amount, minimum filling volume and price limits». Market makers will only receive information about the transaction amount, minimum amount and an upper limit: if they decide to do the deal, the block is filled. «In accordance with our obligations to maintain a fair, transparent and regulated trading of the warrants for the units in electronic form are immediately transferred to the participating market makers that will provide best execution of the transaction and the pricing for program participants,» — said on the website of the exchange. Also this week, the company Winklevoss IP, LLC received a patent for the creation of a system to increase the security of transactions. Authors Andrew Lucus, CEM Paya and Eric Weiner describes «software for secure transaction processing in cloud computing». The new development uses a combination of standard cryptographic techniques, including hash functions and digital signatures, and are likely to be used on the stock exchange Gemini.

Kadena raised $12 million in the framework of SAFT.

Platform smart contracts Kadena will Martino and Stewart Popjoy (formerly the leading developers of blockchain-project JPMorgan) on Thursday announced the completion of the second investment round in which participated Multicoin Capital, Devonshire Investors (a subsidiary of Fidelity Investments), SIG, Asimov Investments and SV Angel. Popjoy said that the funds raised will go to create a technical ecosystem platform Chainweb. Earlier, in January, in a private placement SAFT Kadena attracted to the creation of Chainweb $2.25 million. The developed Protocol uses the model of parallel blockchains, which allows you to distribute tasks without overloading the network. In this circuit are connected on the principle of Merkle tree and thus interact, being in the same blockchain system. «Apps like crypto-kittens can work on their own 5-6 circuits, and larger events such as the ICO, will be held on a different circuit, while not slowing each other,» said Popjoy earlier. Run the test network was scheduled for August, and the release of the core network Chainweb to be held in December. However, as said Popjoy, by this time yet «to settle a number of issues». In particular, Kadena intends to release a number of tools that will be made publicly available and tested by users. For safety Popjoy emphasizes the need of formal verification in which «computer proves mathematically that the network has no vulnerabilities»: «the blockchain regularly turning to formal verification, usually after the major bugs in Ethereum» he said, Recalling the bug Parity, and noting that the smart contracts are often responsible for huge amounts of money.

Stabilini Basecoin and Carbon has successfully completed the investment rounds.

Intangible Labs, the creators of «stablon with algorithmic Central Bank» Basecoin, from March 22 to April 3 grossed $125 million during tocancel system SAFT (under assumptions of experts, this is the ICO has recently caught the attention of the SEC). It was reported to the SEC on attraction of the specified sum from 225 investors. Basecoin intends to avoid the inherent volatility of the cryptocurrency due to its availability of other digital assets: oracles will track the prices of these assets, and the Protocol needs to adjust the number of tokens so that the price Basecoin remained stable. In addition to the «base coins» startup engaged in the development of «underlying bonds» and «underlying shares» — a cryptocurrency which will support Basecoin, helping the Protocol to manage the «money supply». The project is supported by many large funds, including Andreessen Horowitz, Pantera Capital, Polychain Capital and the Digital Currency Group. Co-founder of Coinbase Fred Erasmus took Basecoin meaningful for the ecosystem project: «it is clear To me that the developers of the crypto-industry are interested in… stable coin,» said Erasmus during the Token Summit II in San Francisco. On Thursday the completion of seed funding round, said another project stablon — Carbon — collected $2 million from such funds as General Catalyst, Digital Currency Group, FirstMark Capital, Plug and Play Ventures and The Fund. As Basecoin, Carbon refuses used in the Tether model reinforcement Fiat, replacing its algorithmic monetary policy. «If we create a mechanism that is now used by the Federal reserve Bank, but make it decentralized, we would not need to trust a Central authority. We can just trust the code,» explained co-founder of Carbon Connor Lin. The Carbon system consists of two tokens: stablein, the price of which must equal $1, and «credit token», which ranges in value, offsetting changes in demand. When the price falls stabilini, an auction is held, during which anyone can give their token, thereby reducing money supply and raising the price, and receive a «credit token». In the future, when the price rises above $1 and offer will increase, the holders of «credit token» will receive a new stabilini and this whole process is entirely performed by the algorithm.

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Laws Tokeneke

Takenaka — the education system of the token pricing policy is one of the most discussed topics on the stock market. In this connection, Fred Krueger, founder of WorkCoin and PhD from Stanford University in mathematical methods of operations research and statistics, conducted a detailed analysis of the current cryptocurrency market brought eight key laws on which is based the modern model takenouti.

In the work of Krueger as an example, is regarded cryptocurrency ether, and are used to calculate the following variables:

 TS (Total Supply) — the Total number of available tokens: 97,000,000 esters.

 P (Price) — the Current rate of token: one ETH is $834.

 The HT (Hold Time), the Time that the ecosystem participants can hold a token (share). For example, the value 0.1 will fit, if the average ecosystem members hold the token a little over a month (one tenth of a year).

 TV (Transaction Volume) = volume of transactions per year, calculated in U.S. dollars. Consider the case when the market place transaction of $100 million per year, and assume that they all come with the token. In this case, TV = 100,000,000. In the case of broadcast TV = $1 trillion.

 GTV (Growth in Transaction Volume) = the Growth in the transaction volume for the year. It is desirable that the value of the TV has increased to the extent possible. The rate of growth of 100% or more means that in the market there are new participants who need the token. The figure of 0% indicates that the token corresponds to a balanced price that will rise.

 TT (Transaction Time) = Time of the transaction. How much time is spent on executing a transaction with a token.

 TMCAP (Token Market Cap) = Market capitalization token = TS x P.

 R (Ratio of Transaction Volume to Transaction Market Cap) = TV / TMCAP = the ratio of the volume of transaction in the year the market capitalisation of transacti. For example, for air the value is about 0.1.

R1 (R adjusted for Transaction Time) = R / TT. The value of R is adjusted in ratio with the time of the transaction.

 R2 (adjusted R for Hold Time) = R / HT. Second value of R is adjusted in proportion to the time during which the network participants hold the token.

Act 1: the Value of HT should be the maximum

According to the article Kyle Samani, is devoted to the problem of the velocity of circulation of tokens, there is no benefit in investing in tokens that ecosystem members hold a short period of time. For example, those tokens that are intended for the purchase of tickets for events. If the need for tokens to appear only on the condition that the holder must purchase a ticket and the ticket seller immediately to cash or exchange them for other cryptocurrencies, such tokens may not appear long-term needs in the market. Even assuming very high transaction volumes (TV).

Law No. 2: HT > TT

The time that the ecosystem participants can hold a token (HT) is not equal to the time required to conduct transactions (TT). It’s not the same. In the case of transactions with bitcoin, each requires a relatively short period of time (less than a day). However, in order to buy bitcoin for Fiat, sometimes it might be a week or even more. Therefore, the average user, who are constantly in need of bitcoins most likely will purchase them, if possible, for the future, so they’re always in the account. The same applies to air or any other useful Aldona.

Obviously, so there’s a good reason to hoard the tokens, especially if they are difficult to buy and sell. Moreover, altcoins can enter a small Commission when selling (whip) and to reward those participants that are involved in their accumulation (gingerbread).

Law No. 3: Takenaka based on variables that are not captured under white paper

Many people make erroneous conclusions about the projects in detail does not paint plan tokeneke in their white paper. As the Law No. 2 economic many accessory options you can use after the launch of the ICO. The fact that the company did not plan their usage in advance, does not negate their existence.

Act 4: After complete startup of the token, the value of R should be much lower than 10

At the time of writing Ethereum was about one million transactions per day, at a ratio of $5,000/transaction. This net income equal to $5 billion a day, or forecast to exceed $1.8 trillion per year by extrapolating the current values. So, at the moment of maximal activity of the Ethereum network processed transactions worth $23 billion per day.

With a market capitalization of $81 billion in the network occur transaction by the formula R = TV / TMCap when the ordinal value of 0.1. Which leads to a value that is less than 10.

In the ecosystem, the annual income of which is equal to $10 million under $100 million turnover in tokens, the pressure to increase the rate of tokens is extremely low. On the other hand, if the annual income is 10 times higher market capitalization, as is happening in Ethereum, it is likely that the rate of the token will grow.

However, the value of R is very rough to estimate the cost of the token because it does not include the variable values TT or HT.

Law No. 5: I guess, there must be a reason to BUY tokens, not just to earn

In the previous analysis, it was assumed that the ecosystems were annual income, in other words, tokens are not just issued, but bought new participants. But not all ICO are working on the same principle. Many new players of the stock market believe that all must be given the gift, including the tokens with zero revenue model.

However, this time hard enough to perform. So, until recently, STEEM schedule seemed pretty hectic.

The market capitalization of tokens in STEEM $1.6 billion March 16, 2017 dropped to $17 million. But then it happened:

After new highs in December STEEM market capitalization is $1 billion. In this connection the word «probably» appears in the title of the Law.

Law No. 6: Indicators R1 and R2 are much better than R to calculate the value of the token

If the ecosystem is the ratio of the volume of transactions (R) at $100 million a year, and the average transaction time (TT) equal to 0.1 per year, for each specific period of time accounts for $10 million. If market capitalization is $100 million, then R = 1 and R1 = 0.1, which means theoretically any of the 90% of tokens that are outside of transaction, can be sold to Finance a new ecosystem participants.

However, this formula ignores the value of HT. If the average HT is 6 months, then 50% of these tokens are existing members of the ecosystem. In this equilibrium, any increase will affect the price increase.

Law No. 7: the Growth is important. VERY.

In any equilibrium state, the increase in the number of transactions reflected in the increase in prices. In this case, it is necessary to consider many other factors, which are difficult to perform correctly and to calculate their value. But while in the ecosystem is a sufficient number of tokens involved either in transactions or in the possession of the participants, their price will rise. This factor may explain the crazy growth tokens STEEM.

Law No. 8: you Need to strive to ensure that your sellers become your buyers

The true goal of any ecosystem is to make all parties both buyers and sellers. This is true both for the ecosystem of Bitcoin and Ethereum, where users buy cryptocurrencies and send them. The marketplace requires that sellers found themselves buyers of tokens, instead of just trading them for Fiat or other cryptocurrencies. This law is directly linked to the Law No. 1: the participants want to keep cryptocurrency, thereby increasing the value of HT.

In conclusion

To make a good model of the price tokens is extremely difficult. However, you should pay attention to:

High growth (or potential high growth).

Measures to promote ecosystem participants who are willing to keep the tokens, or Vice versa — to introduce the long transaction processing time, so that was an incentive to hold tokens. Alternatively, you can encourage those who hold the token and enter the Commission for their removal.

Acceptable circulation transactions (or possibility thereof) in relation to market capitalization.

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The Japanese government will begin to regulate crypto-wallets

Despite a rather loyal attitude of financial regulators of Japan to the crypto industry, which recently has the status of a self-regulatory, local authorities continue to develop new control measures services, working with digital currencies. So, during the ninth meeting of the study group of the financial services Agency of Japan (FSA) devoted to cryptocurrencies, the financial authorities of the country discussed the terms of establishing legislation for the control of crypto-wallets. What caused this decision and how it will affect the operation of the stock market in Japan — read our material.

According to the current law on payment services in Japan, all companies providing services in the field of trade, digital assets, must be registered as a cryptocurrency exchange and to license the FSA. Today there are 16 licensed kryptomere. In March of this year licensed trading platforms have United in the Association of exchanges of virtual currencies (JVCEA) to get the status of «certified business associations in the field of financial calculations.» JVCEA is also responsible for settlement of all disputes and the creation of a regulatory framework responsible for monitoring the activities of local kryptomere. In October of this year, the chief financial regulator of Japan decided to provide this crypto-Association status of self-regulation.

However, due to the fact that crypto wallets do not provide services in the field of trading digital currencies, and simply manage assets, transferring them to the customers, their activity does not fall under the jurisdiction of neither the FSA nor JVCEA. «Crypto-wallets are similar to Bank account where you store the digital currency. These services and crypto currency exchange, work with a great volume of cryptocurrencies, but they do not obey the laws or regulators» — explained the position of the financial authorities, the local edition of Itmedia. However, the FSA understands that the purpose of cryptocurrency wallets to manage the settlement and, therefore, the main financial Agency of the country required a set of rules for the regulation of their activities.

During the session of the research group the main focus of FSA was accounted for by the service providers in the field of storing digital assets, and not on manufacturers of hardware wallets, and software developers, since many wallets are in the form of code without control of a person or company. The regulators noted the need to comply with the new legislative framework with international standards to prevent money laundering and financing of terrorism, which were developed by the Task force the financial action task force (FATF).

The implementation of the legislative draft

During the meeting, the study group FSA has separately considered the risks associated with use of services of storage of digital assets. According to the group, primarily the users of these services encounter cases of loss of funds during cyber attacks, the disruption of wallets and money laundering. In this connection the list of the control measures will include:

The establishment of internal control systems;

Managing cryptocurrencies owned by the service provider and its customers;

The audit of the financial statements;

The publication policy of the company in case of burglary;

The provision of reserve funds to compensate customers for lost funds.

Also, according to the plans of financial regulators of Japan, in the period of transition to the new rules storage services cryptocurrency cannot add new service providers, customers, or crypto-currencies and tokens. Moreover, these services will be obliged to publish on the official websites of the status of their registration with the FSA. And those services, which will waive the registration will be closed. At the same time frame of the introduction of new rules not specified.

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Maria Stankiewicz: one should Not expect permanence and tranquility from the world of funds, including cryptocurrency

October 31 to the first digital asset Bitcoin was 10 years old. During this time, the cryptocurrency market from the ground up to over $200 billion, there was about 15,500 exchanges. These figures regularly increase interest, despite the ever-changing moods, does not vanish. One reason for this is that the cryptocurrency remains an effective method of earning. Trading on the stock exchanges of digital assets attract Fiat traders and other users, which are captured by the idea of getting a quick profit.

However, many users, especially if they have not previously encountered with trading, there are questions on the entrance to the cryptocurrency market. To explain the action on the exchange of digital assets we spoke with communications Manager crypto-platform EXMO Maria Stankiewicz that you need to start trading and how to cope with all the difficulties that preparing a volatile coin.

Before you start to discuss trading, tell us about your exchange. What has happened in your company?

As you know, today, to stay in place, you need to run, and to actively develop — you need to run very fast, especially in the cryptocurrency industry. We try constantly to change, to test new services and products and launch new stocks and enter new markets. In the summer of 2018, we have added 13 new cryptocurrency and 34 currency pairs, Turkish Lira added in addition to the other 5 Vietnam currencies, TradingView has launched graphics, a new system of kesbeke when the refund happens every day, hooked up a new payment system Mistertango, WebMoney, SWIFT transfers, start on the Turkish market.

As a new cooperation cryptocurrency exchanges, in particular, the entry into the Turkish market, to help the common trader earn more? Because at the moment Lira is the national currency of Turkey is not in the best condition.

We analyzed the situation and noticed that the entry into the Turkish market is primarily due to the fact that over the past six months the number of new users from Turkey increased by 3 times compared to the same period last year. Seeing the demand, our market decided to fully start in a new region by adding the Turkish Lira and making a version of the website and customer support in the Turkish language. Now we launched the promotion — 0% Commission for input and output of the Turkish Lira, which, of course, encourages traders to trade on our exchange. Various affiliate promotions (including payment systems, 0% Commission), adding a popular and interesting cryptocurrency, 100% kesbeke, regular airdrop, contests with coins allow you to not only retain existing traders and attract a huge number of new. Despite the market correction, registration go up, which means that the exchange is on the right track.

The industry is constantly evolving. What changes in trading crypto-currencies have occurred in recent years?

The major trend of 2018 — the arrival on the stock market whales are very smart professional investors, Fiat investment funds that previously avoided the exchange side. We tried to work with major industry players, sent them the requests for cooperation made them special conditions with reduced fees, because the volume of transactions are high. We come to the Russian and Asian funds, with them very interesting to work with. In addition, they affect the volume of trading of the exchange — they have increased. This is a big plus for users.

The second trend of cryptocurrency exchanges for ICO. Now for a listing of the queue stood more than 250 coins is too much. Such a large number can be attributed to the plume 2017, when there was a boom ICO, all have designed their tokens and wanted them to make a list of some of the exchange. Now a Scam is not so much because the euphoria has passed, users began to better understand the digital currency industry. Projects have become much better.

How is the listing of coins?

Initially, we, like all cryptocurrency exchanges, please fill in the questionnaire. Consideration of the application takes from 3 days to several weeks. Very important for us to be fully confident in the project.

We can distinguish 5 main criteria, which is the final conclusion to list a particular coin on the exchange or not.

Evaluation of the project from the point of view of the work done is interesting and promising idea, is there a working MVP (minimal working prototype), it looks like a roadmap, how moves work, respect for deadlines.

Evaluation of the project from the point of view of the community: what is common information field around the project, how are the threads on specialized forums.

Evaluation team: who is making our project was a successful project professional in team history. Most often we prefer to talk personally with the CEO of the project, to understand the motivations and plans of the team.

Project evaluation terms of market value — whether your business benefits and market needs?

Evaluation of the project in terms of a willingness to work on joint marketing and PR: for us it is important that we together can create interesting infopovod and lead your customers to our exchange and our clients — be interested in new and interesting coin.

What, in your opinion, the most important difference piatogo trading of cryptocurrency?

Anyway, let’s first define what an exchange. You need to understand that this is not a place where you can just passively watch your contributions when you have invested in any asset and expect its growth. For profit need to participate in trade, besides, it’s very interesting. It is encouraging that people are beginning to understand that the trading process requires knowledge and understanding of the main trends and existing dimensions.

Fiaty trading was formed decades ago. The first stock exchange was opened in the 16th century and still exist today, and cryptocurrency platforms for the modern world — a new phenomenon.

Strengths of cryptocurrency trading include:

Sudden emission impossible. The total quantity of a particular currency is known in advance, and no one is able to «turn on the machine and print a few million» for his own purposes;

Use of money can be directly, without intermediaries such as the Bank or the exchanger;

The cryptocurrency world is distributed by default. No single center, the organizer of the system, performance provides a huge number of casual users of nodes, where each node independently makes a decision about the (in)validity of transactions.

High speed. Transaction often take only a few minutes;

The transaction cost is fixed and does not depend on the amount transferred. This is especially true for large transfers — the Bank would have to pay a percentage of the amount;

Logs of all transactions public. Therefore, all movements of money can be tracked: for example, when (hypothetical) payment of taxes with bitcoin, you can check where it went each paid Satoshi. It is very important from the point of view of fight against corruption;

Create a new wallet takes a couple of minutes;

Security. Bitcoins, and other cryptocurrency, you cannot block, you cannot take away through the courts or through pressure on banks;

Freedom. Cryptocurrency work anywhere there is Internet, ignoring any boundaries.

But there are weaknesses. These include:

The money supply of each currency is limited and can only be reduced, withdrawn from circulation money as a result of lost data is not replaced by new ones;

The lack (currently) of security of course. National currency secured by manufactured in the country goods and services, in national currency taxes and fees. It makes the national currency demand. The cryptocurrency world, in turn, secured solely by the demand for it;

High liquidity risk;

It is difficult enough to explain to users that never experienced the world of cryptocurrency, what it is and how it all works. Because of this cryptocurrency is not yet become the object of public use.

So, we are trying to talk about bitcoin and technology in an accessible and understandable form for everyone. What is the capital, in your opinion, need to capturadora to start?

To understand the basics of trading stop minimum capital. Much depends on the chosen strategy, from your preferred currency pairs from your own expectations. For example, in a pair XRP/RUB minimum size limit for entry is 15 Ripple — today it is 360 rubles, or about $5.5 at the current rate. Of course, with such a low Deposit to count on a considerable profit in the short term have hardly. If you have the desire to engage in the world of trading seriously, you may want to increase the initial Deposit, there is no upper limit. However, any business should be approached systematically, step by step.

Then how best to distribute assets to $1,000, up to $10,000 and more?

There is no fundamental difference. If your trading strategy is/technique is able to double your capital in 3-4 months — what difference in what currency will be increase? In General, diversification is desirable, but it is not the cornerstone of the trade.

At what point is best to enter the cryptocurrency market, given its variability? Not too late now to enter the industry?

Jonathan swift, Anglo-Irish writer and social activist, said that there is nothing more permanent than temporary. Therefore, one should not expect permanence and tranquility from the world of funds, including cryptocurrency. Should look for ways to make money from this volatility in this dynamics. The whole point of market entry is determined by your beliefs, your trading strategy to your character. For example, if you prefer medium term trading, then you will be protracted long-term movements, which are present on the market with surprising regularity. If you are closer to the soul of intraday trade (ranging from scalping to trade from levels of distribution or other methods), the volatility of the market and found the balances you will only benefit.

As rational (if possible) to behave in a bear market? And how to behave in a bull market?

Here the strategy is quite simple: to sell when the rate is falling, and buy when the rate is increasing. You should not try to expand the course with its asset — it is simply not enough.

In a bear market each of the next transaction must be at a price lower than the previous one; bullish — the opposite situation. Thus is formed the line or bears line the bulls, averaging the entry price.

Where and how can you take risks?

Risk management each trader determines his own. Despite the overall diversity of strategies in General, we can distinguish several features in common.

Do not sit up all day for the trade. Over time, mindfulness and concentration decreases, increasing the possibility of error;

Don’t put all your eggs in one basket — enter the transaction amount is not more than 30% of your Deposit. This is a basic rule for many investors and traders;

The amount of risk in each strategy needs to be in the range of 3:1.

What tests should count in the calculation of the dynamics of crypto-asset?

By exactly the same ones used on the Forex exchanges: fundamental and technical analysis. Fundamental largely based on the study of the financial and macroeconomic situation in the world, it is possible to decide on which currency to buy or sell in order to obtain long-term benefits. Technical analysis seeks to answer the question: when you need to buy or sell certain assets. It is based on the analysis of the different graphs, it is widely used mathematical methods.

Whether in cryptocurrency trading to rely on intuition and thoughts such as «I have a feeling that…»?

The feeling is usually based on extensive experience in a particular area. When a man does something specific for a long time, he on a subconscious level, postponed understanding and skills that are manifested later in the form of premonitions. This is the type of premonitions, which is trust, under its full responsibility. The other kind of judgments are thoughts such as «but I heard, and I said.» The decision on the basis of someone’s judgment — a common mistake, especially among novice traders. You should always think for themselves and take personal responsibility for their actions and their choices.

What, in your opinion, is the course?

Cryptocurrency is a long term investment. In fact, today the industry is much more healthy than during the last boom. In the beginning of 2018, we saw how the crypto bubble has burst, and the market remained a healthy project. The fact that people today lose interest in a large number of violas that have no real application and real-world community — it’s true. And this is great news! Hence, the focus of investors and users has shifted toward high-quality projects and products. And taking into account other healthy trends (active movement towards regulation and integration into the world of classical Finance), I believe that we are on the right track.

That is why you need to benefit from every situation on the stock market: how to earn money in a falling and rising market, to look at interesting projects, to buy interesting coins and tokens.

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You saw nothing: «unnoticed» attack on Tether

Today, when «every second project — stabilin», this kind of cryptocurrencies already occupies a separate niche within the global crypto-space, with their tools, statistics and tracking, including Stablecoin Index, Stable Report, Stablecoin Stats and Stablecoin Wars, some of which may be «Coinmarketcap’Ohm for tablconv».

In such a tense competitive atmosphere, everyone wants to oust the king — exactly as with bitcoin global stock market. Despite all the scandals and suspicion in the world tablconv championship still belongs to the Tether.

And if usually the whole «suspicious activity» involving Tether vigorously debated, one of the largest speculation with the use of a Tether passed almost unnoticed, having narrow coverage in the media. Official statements from neither Tether nor Bitfinex have also been reported.

What happened: inside of Bitfinex

A month ago, in the night from 14 to 15 October Pacific standard time, Tether fell by 7%, breaking the correlation with the dollar, and bitcoin (and the whole stock market) soared more than 10%. The price of bitcoin on Bitfinex reached $7788, while its average rate, according to Coinmarketcap, was only $6965 at the highest point.

One of the employees Bitfinex has shared details of an internal investigation. According to him, Bitfinex was not involved in this incident, and the manipulation of the price of bitcoin was carried out using soobschestvu network trading bots, who carried out a massive sale of the Tether. Bitfinex has been able to establish a link between accounts and to reveal the potential of the initiators of the attack, tracing transactions from their wallets.

An independent analyst who prepared the report for Bitfinex, believes that the attack was involved cryptocurrency project IMMO, which the media often associated with the name Rothschild brothers (the project itself denies these rumors).

The price of bitcoin on Bitfinex was significantly higher than on other exchanges, because of the mass of the Tether sales through this platform. At the time of abrupt rise of bitcoin on Bitfinex observed technical problems due to the large number of orders. Intelligence report suspicious activity, you start trading bots. Coinspeaker, citing «a source» reports that the trading bots had merged into one system and managed centrally with an accuracy of a fraction of a second. Buy orders bitcoin was created hundreds of accounts, and the price steadily increased. The publication notes that today is the largest use case of such a scheme on the stock market.

The exchange has full information about the order book, which is also stored in history. Using these data, Bitfinex was able to separate normal users who are active on the stock exchange at the time of the pampas, from bots.

All suspicious accounts have been blocked to details. Well as the anonymous interlocutor of the edition noted that in each such account contained approximately the same number of Tether.

Then found out that the funds for dozens of similar addresses came from multiple addresses whales and then gradually poured on Bitfinex, so as not to attract the attention of large sums of money. Prime suspect — one of the whales, which was associated with IMMO, managed to install using de-anonymization of his wallet.

Another angle

If you believe in the involvement of the «reserve cryptocurrency» IMMO, one of the alleged reasons for the attack is to eliminate a competitor — most popular today stablon.

But there is another theory that focuses on other motives of the attack. In his article «Anatomy of an attack on a Tether: vulnerable do stabilini?» Henry Hye, the founder of the Protocol smart contracts SesameOpen and security expert, analyzes the possibility of attacks on stabilini (and their complexity) for example, what happened to Tether. He noted that typically the analysis tablconv is based on normal market conditions, not taking into account the sharply rising at the time of the attack volatility, «In time attack the movement of the market is massive and sudden. Stabilini only those that can survive these attacks, may eventually become the «Holy Grail»,» writes He.

In the absence of detailed information Hye made a picture of the attack, based on publicly available data from Coinmarketcap. He explains that this is a classic speculative attack: the massive and sudden sale of cryptocurrencies within a relatively short period of time.

As can be seen in figure 1, the attack was very fast: it lasted only 3 hours. To lower the price of the Tether to the lower $0.925284, it took about 100 minutes. Then, about 65 minutes later, the price rose to $0.973513 and began to stabilize. The volume of transactions Tether for the 3 hours was $2 billion, which at the time corresponded to the average daily trading volume.

Daily schedule change of the Tether from October 14 until October 15, 2018. Source.

The attackers first opened a large position in Tether and large positions in bitcoin or other cryptocurrencies. Then they suddenly sold Tether that collapsed the price to the lower boundary, at the same time raising bitcoin about 10%. And in the end they sold a large position in bitcoins to make a profit, and (possibly) bought back Tether at a lower price, thus reducing the losses from the dump Tether.

«I think the attacker used the fact that bitcoin and other crypto-assets are an absolute negative correlation with stablename,» says He.

As shown in figure 2, the price of bitcoin began to rise when the attack began, reached a peak, when the price of a Tether coming down to the lower level, and collapsed when the price of Tether was restored.

Daily schedule of changes in the price of bitcoin from October 14 until October 15, 2018. Source.

Xe notes that it is very difficult to accurately assess how profitable was the attack with such limited information, but it is safe to say that it was very profitable. The total capitalization of the stock market soared 10%, or $20 billion, while the Tether was lost in the capitalization of only $210 million. «This difference represents a huge opportunity for profit-taking», — said He.

The expert noted that the resources needed to implement such attacks is huge, but many players of the space they have.

If we assume that the total amount of sale (listed in figure 3) and was the amount necessary in order to break the binding Tether to the dollar and brought it down to $0.925284 in just 100 minutes, the attack took more than $1 billion. But when you consider the possibility of trading with leverage that control 10% of the market can influence on prices of cryptocurrency, the $100 million will be enough to launch an attack and lead the market in motion, and then he will do all the work.

Analysis of trading history during the attack. Source.

Heh believes that the attempt to counter attack was definitely made, but it failed. As can be seen from figure 3, if we assume that the total amount of purchase (Total Buy) was an attempt to protect the Tether, then the defending party spent about $221 million — a substantial sum that few can accumulate over 100 minutes.

«Understanding the economic incentives for attacking and defending it is critically important to understand why the attackers want to attack and how they do it and the defender can actually defend the reference [to the dollar] should they even bother trying [to do it],» notes He.

The ultimate motivation of the attackers during the attack on Fiat currency is a profit. The same motivation is relevant and when the attack on stablon. «Stablein projects should be aware that the gap binding is not the ultimate goal of speculators in the implementation of the attack. It is only a means of helping to cause the expected movement of the market in a short period of attack and profit, even given the fact that stabilini can recover in price after the attack,» — said He.

Not only Tether

Based on their analysis of the attack on a Tether, He said «bad news for all stablly projects», namely: a successful attack on such cryptocurrency quite easily feasible despite the fact that «none of stabilin project today cannot defend themselves against speculative attacks». «People like Tether or not, he receives a small «advance» for trying to protect the binding by the recent speculative attack. He spent at least $200 million. And he’ll probably need $500 million more to make this work on subsequent attempts [attacks],» writes He. He also notes that one of the key challenges for the defending party, is the rapid attack: «Since these attacks occur in a very short time, no time to transfer money from a Bank or issue bonds, because capital for stabilization should be at hand.»

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Silk road: evil or evil genius of Ross Ulbricht

«The silk road» (Silk Road) — darknet-the platform for trading in illegal goods, founded by Ross Ulbricht in 2011 and named in honor of the silk road — trade route between Europe and East Asia laid in the II century BC the «silk road» lasted 2 years and 8 months: in October 2013, Ulbricht was arrested by the FBI in the public library of San Francisco in Glen Park. Today, Ulbricht is serving a life sentence and Twitter account Free_Ross collecting signatures for his release, has over 22,000 followers. As it happened, was dealt with in our material.

Where

The website «silk road» was in the «deep web» (deep web) — part of the Internet that exists «around» available to all of the visible web (surface web) and is not visible to most users. The content is not indexed by search engines like Google, and, as suggested by some experts, it is hundreds of times larger than the visible web. Access to the site was carried out through anonymous network Tor, which concealed the IP addresses of the users and provide non-monitored connection. Because, although the FBI found out about the existence of the site in a couple of months after its launch, the operation for its closure took two years.

Who and why

The marketplace founder Ross Ulbricht, who was known online under the pseudonym Dread Pirate Roberts — dread pirate Roberts, the name of a character in a novel of William Goldman’s «the Princess bride» (and the eponymous film adaptation).

Ross Ulbricht was born in Austin, Texas, received the degree in physics at the University of Texas and a master’s degree in engineering at the State University of Pennsylvania. 5 years worked as a researcher. After that I tried to run several startups, including a bookstore Good Wagon Books, which sold used books and a portion of the funds donated to charity, and unsold books were given to the prison library.

«I love to learn and to use theoretical constructs to better understand the world around me. So I studied physics in College and worked as a researcher… My goal at that time was to expand the boundaries of human knowledge. Now my goals have changed. I want to use economic theory as a tool for the elimination of coercion and aggression amongst mankind. I believe that, like slavery, which was abolished almost everywhere, violence, coercion and all forms [of the use] of force by one person over another can come to an end. The most widespread and systemic use of force [comes] from institutions and governments, and that concentrated my efforts today. However, the best way to change government is to change the minds of the governed. To this end, I create an economic simulation to give people a personal experience of what it’s like to live in a world without the systematic use of force,» the profile of Ross Ulbricht on LinkedIn, presumably during the creation of the «silk road».

The same libertarian ideals, but revised the time and thus personal experience, sound in the letter Ulbricht, judge Katherine Forrest that carried conviction: «I believed at the time that people have the right to buy and sell anything as long as do not harm others. The essence of the Silk Road had to come to this, to give people the freedom to make independent decisions. To go to his own ideal of happiness. What they themselves saw it».

The rules of the site

Because silk road was on the darknet (Tor), communication of its members were anonymous. Some (at that time the highest) level of anonymity provided and the system of payment in bitcoins. Thus, the transaction was bestrasova, which was especially important in the trade of sensitive goods, which was carried out at the site. Goods delivered to the buyers home as normal, not causing suspicions of the parcel. Security was served by the rating system: the participants in the transaction can rate each other according to different criteria.

On the «Silk road» was mainly done on the illegal trade of 340 types of drugs accounted for 70% of turnover. Along with them were sold and legal products: books, jewellery, pornography.

On the idea of Ulbricht all the goods offered for sale on «Silk road», was to fall under the category of «crimes without victims». Because certain categories of products were banned for sale by the rules of the platform. Among them the stolen credit card data, personal information, orders murders, weapons of mass destruction, forged currency and pornography.

However, over time, policy has become increasingly «flexible», when Ulbricht was no longer able or do not want to monitor compliance with the previously established boundaries. So on the «Silk road» was allowed to sell weapons under the pretext that the government imposes increasingly severe restrictions, and people becoming more difficult safely buy it, which is contrary to the libertarian policy platform. In the future, on the platform appeared more «illicit» products.

At this time, the FBI…

The identity of Ulbricht took about 2 years. Authorities were required to penetrate the network and establish contact with vendors and administrators, none of whom knew the real name Ulbricht.

During the operation, the FBI found many of the upcoming «partners» Ulbricht and used their identities to recover the full picture. Last piece of the puzzle was a simple search result in Google linking Ulbricht alias Dread Pirate Roberts with another nickname — altoid: this account touted the «silk road» at an early stage. Through him was able to track the bitcoin forum that Ulbricht had left his personal email address.

Ulbricht was caught red-handed: at the time of arrest in the library of San Francisco, he was logged in to the system of silk road as an administrator and spoke on behalf of the Dread Pirate Roberts with an FBI agent undercover.

Agents found that on the laptop Ulbricht bitcoins are stored on tens of millions of dollars, and millions more — on the flash drive found in his apartment. The computer also kept a personal journal of Ulbricht that contained evidence of his guilt. Within a few hours after his arrest domain of Silk Road was arrested, the marketplace is closed.

During the investigation, the FBI went on a few users sites. Among them is Curtis green, who was the moderator of the «silk road» and started with that sold on the platform of fake prescriptions for drugs. Learning about what green caught Ulbricht was afraid that he would become an informant. He was confirmed in his suspicions after he learned that 20,000 bitcoins ($350,000 at the time) disappeared from various accounts and was on account of green. Then he asked for another one close to «partner» under the name Nob to remove the green. But the Nob really was an agent of Management on fight against drugs named Carl Fors. To be more intimate Ulbricht as part of his job, Nob faked the murder of Curtis Greene, taking it over $40,000. After killing Ulbricht regretted the incident, but believed that it was necessary.

Fors was one of the two Federal agents found guilty of malpractice in the investigation of the «silk road». He used the information available to it about the Dread Pirate Roberts to create alternative personalities on the forum «silk road» and using them to extort Ulbricht money in exchange for «insider information» about the investigation to the FBI. Subsequently, the Force signed a contract for $240,000 with 20th Century Fox Film Studios to create a film about the investigation without the consent of the office for combating drugs. In October 2015, the Force has been sentenced to 6.5 years in prison and damages of $300,000 for extortion, money laundering and obstruction of justice.

As for green, he has really become an informant in January of 2013, and $350,000 was indeed stolen, but not to them. This crime was committed by a Secret service agent Sean bridges, to whom green gave access to his account under the deal. Later, he stole another $450,000 from other accounts. Bridges was arrested in 2015 and sentenced to 71 months in prison on charges of money laundering. In November 2017, bridges was sentenced to additional imprisonment for 2 years.

Returning to Ulbricht: it was later revealed that the order of the green was not the only attempt by Ulbricht to hire hitmen. For example, one of the orders was entrusted to the member of the world famous motorcycle club «hell’s Angels»: he was supposed to kill the user that threatened to hack website using DDoS attack. Just Ulbricht was charged with 6 counts of attempted murder, but none of them was included in the final indictment.

Ulbricht was sentenced to two life sentences without parole. May 20, 2015 a Federal district court in Manhattan found him guilty of money laundering, conspiracy, computer hacking and drug trafficking. «I’ve spent studying this case more than 100 hours. I pondered it in my head over and over again, from every possible angle. What should be the punishment? What it should mean?.. I came to the conclusion that you are a common criminal. You are a very educated man. You have two higher educations, good family, and 98 people were willing to write me letters in your defense. And yet you are here. And you are a criminal. Let this word sounds cruel. Even today… This site, it was your life’s work. Thing your entire life. Would you like to become your legacy. And that’s what he is» — from the indictment of the judge.

After the arrest of Ulbricht in October 2013 the site was restarted by the administrators of the silk road as «silk road 2.0». It was closed down by the FBI November 6, 2014, and its alleged operator Blake Bental (a pseudonym Defcon) arrested.

Price in dollars

It is estimated that during the existence of the site turnover was $1.2 billion in bitcoins, and bichenovii condition Ulbricht at the time of arrest was $28 million.

Attempts to appeal

For several years the family of Ulbricht’s campaign to appeal to the «barbaric sentence to two life terms for non-violent crimes» and collects funds for payment of lawyers on the official website Free Ross.

In may 2018 was rejected the next appeal of Ulbricht on the abolition of the life sentence: he was referring to the fact that during the trial his defense was not aware of the Affairs of the agents of force and bridges. The panel of three judges confirmed the decision of life imprisonment, noting that at sentencing was taken into account suspicion of attempted murder. «People rightly may not agree and do not agree with the social utility of harsh sentences for distribution of controlled substances… it is Very likely that at some point in the future we will consider this policy as a tragic mistake and develop a less punitive and more effective methods of reducing the frequency and cost of drug use… But at the moment the history of democratically elected representatives of the people chose restrictive policies based on harsh punishment,» commented the jury.

Shortly thereafter, on June 28, was denied another appeal: the new lawyer Ulbricht Paul Grant referred to item 33 of the criminal procedure law of the USA, allowing you to reopen the case if within three years after the verdict was discovered new facts of the case. Notice of refusal, judge Katherine Forrest said that «paragraph 33 does not give the right to reopen a closed case or start an investigation with the purpose of discovering new evidence,» and noted that all evidence presented by counsel Grant, was known to the court.

One of the possible violations, the investigation, which lawyers for Ulbricht have tried to use to mitigate or cancel the punishment, surfaced in March, when Edward Snowden published secret documents showing that the national security Agency (NSA) was tracking users of bitcoins with the help of the program-bait. The same documents show that the NSA has worked on exposing users of bitcoin six months before the arrest of Ulbricht. In the court of protection Ulbricht also argued that the history of the FBI about how they found him doesn’t add up, and that the government could penetrate into the servers of the silk road with the help of NSA, possibly illegal. The court rejected these arguments. Patrick Toomey, a lawyer at the national security project of the American Union of civil liberties, said that NSA documents raise important for U.S. law enforcement question: «If in the investigation of crimes the government uses the NSA spying is a serious argument. People who face criminal prosecution, have the right to know how the government obtained the evidence, so they can check whether the government’s methods are legitimate. It is a basic principle of legal procedure.»

The petition, drawn up by activists of the Twitter account Free_Ross collected 100,000 signatures for his release. «Pinch me, I must be dreaming! 100,000 signatories want me out of jail! Incredible to see such a huge wave of support in the first few months after the launch of the petition. Our goal of 500,000 seems now quite feasible. I haven’t felt so much hope for all the time that I was locked up, thank you! Ross» — this handwritten note posted in the Twitter account of Ross Ulbricht.

Silk road culture

The history of the «silk road» was the basis of the documentary «Deep web» (2015) and book nick Bilton «American kingpin: the epic hunt for the criminal leader of the «silk road»». «Let the market decide, not the government» — is the message of Ross is given in the book.

PS

It is known that Ross dictates tweets from prison, and they, like gratitude for the collected signatures, published in his personal Twitter account, created in June of this year.

Given his relationship with the bitcoin expected Ross could not comment on an important milestone in its history — its tenth anniversary. DeCenter published «congratulations» from other members of the community, and now leads the translation of the congratulatory letters of Ross Ulbricht:

Happy birthday, bitcoin!

Bitcoin was ten and, like many of us, I feel like a proud parent, [because] I have watched the growth of his capacity during these years. Even though I’m in prison, I think I’m «living separately» father who can’t help in the upbringing of their child.

Bitcoin: Mommy, when’s daddy coming home?

Mother: He will come as soon as I can, honey.

Bitcoin: Why did he leave us, mommy?

Mom: I’ll explain when you’re older. Now run along and play in the blockchain with other cryptocurrencies.

Bitcoin as a 10-year-old child is a good analogy. Technology is still very young, still growing. It’s been growing like a weed and went through painful stages, but it hardly becomes a teenager and she still has a rocky path of adolescence. It is what we all have to go through to become adults, to understand who we are, and bitcoin is exactly the same. In the coming years we will see what a bitcoin is, how it will be used and what impact it will have on the world. I have high hopes that our gifted child will exceed all expectations and come to greatness, but he’s still a kid to raise and protect.

Bitcoin needs us to continue to guide it with the values on which it was founded, which gave him its potential. We need to focus on decentralization, privacy and empowerment of people. We’re lawyers and representatives of bitcoin. How far he will go and what it will become crucial in the coming years will depend on us. This technology may make such abstractions as peace and equality, a reality. But it is our task to embody these ideals and to become a role model for the growing bitcoin community and the bitcoin.

I’m so looking forward to what will happen in the next ten years, with bitcoin and its crypto cousins. I just hope that I can come home and make up for lost years and show everyone where my heart is.

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The project Numerai reduce emissions, the «most used» tokens in Ethereum to 11 million

California hedge Fund Numerai in an effort to provide the greatest possible decentralization made the decision to reduce the emission of tokens NMR of the project from the current 21 million to 11 million, according to CoinDesk.

As stated by the Numerai founder Richard Craib, reduction of emissions will take place after the upgrade of the smart contract, after which the keys will be destroyed.

«We are extremely decentralized», — he said.

According to Krabi the project from the very beginning assumed emission reduction of tokens, but the publication suggests that this step can be linked to the statements of the us regulators, who were given to understand, more sympathetic to the tokens that no one controls.

Richard Craib declined to comment on the question, and discussed whether Numerai with the Commission on securities and exchange Commission (SEC) its business model, noting that the company at the time refused to hold ICO. Tokens were distributed via airdop, as well as remuneration for successful stock market predictions.

As mentioned earlier ForkLog, Numerai is not a hedge Fund in the usual sense of the word, because it makes transactions using a machine learning model that create anonymous developers. The specialists themselves while participating in the weekly ranking and get the encrypted data that represents an abstract representation of the exchange of information. Then developers create machine learning algorithms to search this information for specific patterns and test their own models, downloading the predictions on the website.

The reward for successful predictions experts receive tokens NMR, which are subsequently converted into bitcoins. The base of the platform are smart contracts, Ethereum, and tokens NMR Numeraire are a kind of bet that makes the developer that the proposed model works on the market. If the trade on the proposed algorithm is successful, the developer receives a reward depending on your ranking.

As stated by the company itself, the token NMR is the most used in Ethereum. In October 2018, was announced the launch of marketplace data called Erasure. It is expected that with its launch issue of tokens will increase by more than 50%, which may be a separate subject of interest to regulators.

Company will not disclose at this stage, as these tokens will be distributed. In her statement at the moment in circulation there are about 7 million tokens NMR, however, CoinMarketCap, for example, says about 2.3 million NMR.

«I don’t know where CoinMarketCap takes this information,» said Richard Craib.

According to him, this discrepancy in numbers is probably due to the fact that in may the project was blocked for the next 10 years about 3 million tokens. Anyway, another 1.7 million tokens are in question.


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The exchange Poloniex added «institutional» accounts

Circle, the parent company of the cryptocurrency exchange, Poloniex, has announced the introduction of a new type of accounts, focused on the so-called institutional clients.

«Large and small organizations can benefit from our carefully selected, but broad selection of pairs for trading scriptactive, dedicated support and reliable API services», — said in a company blog.

Institutional clients Poloniex also offer higher limits for withdrawal of funds, and in the month of December trades for them would be to go with zero commissions.

Separately on the registration page for institutional clients stated that they also requested access to the OTC platform Trade Circle, minimum transaction amount which is $250 000, and the possibility of converting the U.S. dollar in stabilin USDC and back.

We will remind, USD Coin (USDC) appeared in the Poloniex listing in September, shortly after its official launch.

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The Prime Minister spoke about the work on the draft law on cryptocurrency

Prime Minister of Russia Dmitry Medvedev believes that the law on “digital money” will prevent the withdrawal of assets in an unregulated digital environment. Legislators of the Russian Federation is introduced instead of the terms “cryptocurrency” and “token” is a more accurate legal concept of “digital money” and “digital rights,” he said.

“We need to fix in the civil legislation of the basic provisions to translate them into the language of the law. So instead of “cryptocurrency” and “token” legislators develop a more legally rigorous concept of “digital money” and “digital rights”, — expressed his point of view Medvedev at the St. Petersburg legal forum.

According to the Prime Minister, the new regulations will become an obstacle to the withdrawal of assets and guarantees in the event of a dispute, the judicial protection from abuse.

“Hurt to withdraw assets in an unregulated digital environment — this is especially important when combating the legalization of income obtained by criminal means. As well as create the basis for building a tax system of such objects”, — said Medvedev.

Recall that the draft law “On digital of financial assets” was introduced in the state Duma of the Russian Federation on March 20. It is based on a project developed by the Ministry of Finance and published on January 25, reported the head of the Duma Committee on financial markets Anatoly Aksakov. He voiced confidence that the law will be adopted before the end of the spring session in June.

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International criminals prefer the dollar, not cryptocurrency

At a hearing in a court of the United States Senate Committee on modernisation of the laws on combating money laundering sounded data that only a small percentage of the illegal financial transactions carried out through cryptocurrency. It is reported Bitcoinist.com.

The Committee hearing of the Senate was devoted to the bill S1241 “modernisation of laws on combating money laundering and financing of terrorism”. The bill aims to provide law enforcement agencies with the tools needed to prevent, detect and prosecute those who want to break the law.

One of the key aspects of the hearings was how criminal activity is carried out on a global scale. Criminal groups now follow in the footsteps of economies and financial systems — their activities globaliseerumise. Kenneth Blanco (EN Blanco), the Deputy attorney General of the U.S. Department of justice, said the following:

“Transnational criminal organizations, kleptocrats, cyber criminal groups, terrorists, and foreign drug cartels, the smugglers must find ways to hide sources of income from their crimes, so they can use profit without compromising those sources.”

According to estimates of the UN office on drugs and crime, annual proceeds from the illegal activities amount to more than $2 trillion. Laundering the money is a major problem and can be done using several methods: prepaid cards, digital currencies, illegal cash, money laundering through trade.

Many financial regulators have noted the ease of use of cryptocurrencies in illegal financial activities, provide them with anonymity and transborder nature. Similar concerns were expressed by, for example, the Minister of the Treasury Steven Mnuchin (Steven Mnuchin) and a member of the governing Council of the European Central Bank Ewald Nowotny (Ewald Nowotny).

However, according to Jennifer Fowler (Jennifer Fowler), Ministry of Finance representative at the hearings in the Senate, selection of the attackers remains the US dollar:

“While virtual currencies are used for illicit transactions, their volume is small compared to the amount of illegal activities using traditional financial services.”

We will remind, earlier it was reported that the governmental authorities of the United Kingdom acknowledged the risk of terrorist financing through the cryptocurrency low. Also they pointed out that crypto currencies are used to launder “small amounts in large volumes”.

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