This week on cryptocurrencies. Tether and Bitfinex filed a collective lawsuit of $1.4 trillion. Russia proposed a way to determine the official course of Bitcoin. Adoption of the bill On digital financial assets has again delayed.

A similar payment system will be a successful solution for the financial center of Europe. Also, its integration into the global financial system. We should not leave this space to China, Russia, the United States or any private supplier.

Earlier, the German government approved a strategy for blockchain. This places the existence of cryptocurrencies. Such as Libra stablecoin from Facebook on the territory of the country. Of course, the ability to issue currency is a key element of state sovereignty. This task cannot simply rest assured to private companies.

A class-action lawsuit is pending in the U.S. District Court for the Southern District of New York. This all is against Bitfinex, Tether and the parent company iFinex Inc. The amount of investor damage from the companies actions reached $1.4 trillion.

Furthermore, according to the lawyers, Bitfinex and Tether violate the antitrust and commodity exchange laws. Tether controls more than 80% of the U.S. and global steyblock market. The plaintiffs claim that the companies organized a certain scheme. This scheme used to deceive investors, manipulate the cryptorchain and hide illegal income.

The Company reserves the right to disable or freeze the users account. It can deny access to all services at any time and for any reason. Also, Telegram is not responsible for the use of third-party services. Same as loss of personal data and direct, special, incidental or consequential damages of any kind. The use of the wallet is possible only after the age of 18 and only for legitimate purposes.

The development of TON is now in its final stages. They plan to release it by October 31, 2019. In case of failure to meet the deadlines, the company will have to return all their funds to investors in full.

European Commission prepared new unified rules for the regulation of cryptocurrencies. European Commissioner Valdis Dombrovskis announced the problems in the field of digital money. These are associated with unfair competition, cybersecurity and threats to financial stability. Europe needs a common approach to regulating cryptocurrencies such as Libra.

I plan to present new legislation in this area, said the Vice President of the European Commission. Earlier, the organization announced the launch of an investigation into Libra by Facebook. The European Commission will check possible restrictions on the entry of alternative products. Due to the launch of the payment solution from the Facebook project.

The new system will make it possible to introduce the taxation of cryptocurrencies and simplify the process of legal proceedings with their participation. Several exchanges request Bitcoin within 30 seconds. After that, this is how experts calculate the cross-rate to the dollar and ruble. Similarly, the cost of digital money.

Currently, Russia can not regulate cryptocurrencies in any way in Russia. Also, it cannot decide on the status of digital money in the country. The Central Bank advocates a complete ban on new types of assets. Earlier, the first deputy chairman of the financial regulator called cryptocurrencies a high-tech financial pyramid.

(Featured image by Icons8 team via Unsplash)

First published in rbc, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

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Whats happening in the world of cryptocurrency? - Born2Invest

Even Republicans, who have been generally more open to the cryptocurrency plan since it was announced in June, have expressed concern about how it has been organized.

Representative Lance Gooden, a Republican from Texas, criticized the decision by the Libra Association, the Facebook-led coalition behind the cryptocurrency, to base itself in Geneva.

There is an impression that perhaps Facebook wants a clean start somewhere else because they havent enjoyed criticism to their social media platform, but Democrats and Republicans agree that criticism of the social network is entirely justified, Mr. Gooden, a member of the Financial Services Committee, said in a phone interview last week.

One evening last week, Mr. Marcus swirled a glass of bourbon in a downtown, nouveau-Southern restaurant in Washington. Despite a flurry of bad news about his project, Mr. Marcus said he was unfazed.

Look, change of this magnitude was going to be hard all along, he said.

When Facebook announced the project, it had only a rough draft of what Libra would look like. The plan was for the final designs to be done by all the partners as part of the Libra Association, in which Facebook would have only one vote. But that lack of detail has made it hard to explain how Libra would deal with problems like money laundering and cybersecurity.

The basic description that Facebook did put forward was enough to bring out the knives from politicians and regulators all over the world. In the United States, President Trump and his Treasury secretary, Steven Mnuchin, harshly criticized Libra, as did politicians from both parties.

Mr. Marcus, over a dinner of fried green tomato arugula salad and spicy fried chicken, said he had no regrets about how Facebook had introduced the project. He brushed aside criticism that Facebook should have done more to get regulators on board ahead of time.

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Facebook Lays On the Charm for Its Libra Cryptocurrency Plan - The New York Times

On Wednesday, Mark Zuckerberg, Facebooks chief executive, testified about his companys cryptocurrency project at a hearing held by the House Financial Services Committee. In his testimony, Zuckerberg tried to reassure Congress that Facebooks Libra cryptocurrency would square the circle between financial inclusion and regulatory adherence, consumer privacy and proactive fraud detection. The one thing he didnt manage to address is whether the world really wants a crypto offering from the social media giant.

Cryptocurrency has acquired an unseemly status where any use is automatically assumed to have nefarious ends. It doesnt help that the most prominent example, Bitcoin, has been implicated in some horrific criminal conduct. At the same time, a lack of mainstream adoption gives cryptocurrency few redeeming advocates. No surprise, then, that regulators regard Facebooks proposal with suspicion.

Its not that legitimate businesses dont want crypto; its that their customers dont want to use it for payment. When buying stuff on the internet, consumers will choose the payment method that imposes the lowest transaction cost on themselves thats generally the credit card option, which allows deferred payment as well as the accrual of miles or points. An online business that refuses to accept credit cards will always lose out to a competitor that does.

But what if you dont have any competitors? Facebook enjoys quasi-monopoly status when it comes to consumer attention, controlling the reach and distribution of content across its network of users. (So far, 46 attorneys general have joined a New York-led antitrust investigation of the company and its dominance as a social media platform.)

As the driver of over one-fourth of web traffic, Facebook has a lot of influence over who sees what on the internet. And with over 2.3 billion monthly active users around the world, its not a stretch to imagine that the company could have similar influence over who pays whom, and how.

Mark Zuckerbergs Congressional testimony makes it clear that he takes inspiration from China, where WeChat serves as a one-stop portal to the greater internet. There, users conduct their banking, shopping, and bill payments without ever leaving the app. The ability to control users economic interactions comes with the privilege of deciding the medium of exchange. If it follows suit, Facebook may end up looking like another familiar monopolist our own government, which creates the national currency we use to pay our taxes.

Its no wonder regulators and central banks view the Libra project as a threat to the international monetary system. In a recent report, the G7 Working Group warns that global cryptocurrencies could undermine cross-jurisdictional efforts to combat illicit finance. All international transactions using U.S. dollars currently clear through the New York Federal Reserve, where they can be monitored and stopped if deemed unsavory. Previously, members of the Senate Banking Committee have expressed concern over Facebooks ability to handle economic sanctions on foreign regimes.

Zuckerberg has promised that Calibra, Facebooks payment app, will include robust compliance systems to fulfill regulatory obligations. However, the greater risk is that Calibra will go above and beyond its regulatory duty. Facebook already employs a more restrictive speech code than legally required the platform blocks various forms of hate speech, harassment, misinformation and inauthentic behavior. Publishers must accept Facebooks opaque Terms of Service or risk not being seen at all. Its one thing to deny politically incorrect figures the ability to share inflammatory content; its another thing to leave them economically isolated.

In a competitive market, those who disagree with Facebooks terms could simply take their business elsewhere. The Libra Association currently includes twenty-one member companies, after some early members dropped out. If Facebook mimics WeChat in establishing itself as a go-to payment portal, those former members may have no choice but to return to the cartel.

Global regulators are so worried about preserving their own monopoly status that theyve forgotten that monopolies have victims. Just look at what Facebook did to publishers. When Facebook emerged as the arbiter of eyeballs, publishers lost control of their audiences and ad revenue, and consumers ended up with a barrage of clickbait. If Facebook disintermediates the banking system, it could take control of the economic relationship between businesses and their customers, with greater restrictions on financial transactions than ever before. Its almost enough to make you wish for a decentralized currency.

Elaine Ou is a Bloomberg Opinion columnist. She is a blockchain engineer at Global Financial Access in San Francisco. Previously she was a lecturer in the electrical and information engineering department at the University of Sydney.

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Cryptocurrency: Facebook could do to banks what it did to newspapers - Grand Island Independent

The face of global finance is being altered by the growth of digital currency. Any time theres a change in the status quo, there will be those in favor of the changes and those opposed to them, as well as those who try to buck the system in a misguided belief that they dont have to play by the rules. Ever since money was first invented, there have been individuals willing to break the law to serve their own selfish benefits and the Bitcoin ecosystem is not going to operate any differently. As the activity over the past month shows, there have been ups and downs, but everything is pointing to a better, more fine-tuned industry.

Patrick Byrne, the founder and former CEO of eCommerce giant Overstock, became enamored with cryptocurrency so much that he wanted to shift completely away from retail and focus solely on crypto. However, he may have crossed the line and committed securities fraud in the process. Just like with the many instances of securities fraud associated with fiat, hell be held accountable if found guilty.

Tether and Bitfinex are still battling the State of New York for certain alleged financial improprieties. That case will be continuing for quite some time, and the two are now going to have to respond to another suit. Investors are accusing the pair of creating the largest bubble in history by manipulating crypto market prices and there is a lot of evidence to support the claim.

The U.S. Internal Revenue Service (IRS), which asserts that digital assets are a form of property, has provided some new guidance on what constitutes a tax obligation related to crypto. It has already weighed in on several aspects of crypto transactions, and in its latest input, revealed that any gains from hard forks arent taxed until the gains are realized. If the money is held by an exchange after the hard fork, for example, there arent any gains. Once that money is withdrawn, however, its time to give Uncle Sam his cut.

Alipay, the massive China-based payments company, says no to crypto. It doesnt want to be associated with digital currency in any way and wont even let tertiary services use the payments solution if those transactions will involve crypto or lead to crypto withdrawals or deposits. The decision probably stems from the Alibaba-owned companys desire to have its own form of peer-to-peer fiat payment solution.

A Chinese crypto mining equipment provider and solution, Canaan Creative, is going to do what no rival has been able to do so far. It has asserted that it is going to be listed on a U.S. stock exchange in November, beating out competitors like Bitmain, who hasnt been able to resolve questions about its financial health.

The idea that crypto transactions are completely untraceable is incorrect. It was created by individuals who never properly grasped the concept of Bitcoin and didnt understand how it was going to work. A recent international scandal involving a child porn ring and how over 337 people were raided after their crypto transactions were traced shows the fallacy of the misguided belief.

If you cant beat em, join em. That appears to be the motto of the Canadian government, which is reportedly starting to warm to the idea of launching a digital currency. It would replace fiat and, given the inherent and automatic reporting associated with crypto, would allow the country to constantly track all financial movements by everyone in the country.

Cambodia looks to be considering the idea, as well. It wants easier ways to conduct cross-border payments while reducing associated costs, and the countrys central bank is said to be exploring digital wallets as the answer.

Poloniex is no longer under the Circle umbrella. The crypto exchange announced a week ago that it would break away from the payments company and stand on its own. At the same time, to the dismay of crypto fans in the country, it also announced that it would stop U.S. support as of November 1.

The U.S. Financial Crimes Enforcement Network (FinCEN) clarified that crypto companies are required by law to adhere to anti-money-laundering policies. If they dont, they could be charged accordingly, and the announcement is seen as a step forward in showing that crypto can be used as a currency.

China continues to be a leading force behind blockchain innovation. This has been seen by the number of companies that have launched in the country, and there are now a lot more. The Cyberspace Administration of China just approved 309 new blockchain service providers this month, with those entities offering services from eCommerce to tourism and from healthcare to legal matters.

There have now been 452 BTC futures contracts traded on the newly-opened Bakkt futures exchange. There is still a lot to happen and the increase comes as the market weakens, but the prospects of another big bull run are attracting more investors.

Its been a good month for Bitcoin SV (BSV), known better as the original Bitcoin. According to a tweet by expert crypto developer Unwriter, BSV had, as of October 23, eclipsed BTC in organic traffic. He pointed out that it is a very significant point in Bitcoin history. This changes everything. Especially for the BSV builders since it shows that what BSV has expressed all along is true. The blockchain is capable of sustained large blocks, infinite scaling and proven operations. The idea that no blockchain could handle large blocks or massive scaling has just been completely proven false by BSVs performance.

Given how far the Bitcoin ecosystem has come in the past two years, its going to be interesting to look back a year from now and see even more changes. This is just the beginning of a lot of positive growth for crypto and history is being made that will rewrite how the world views money.

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What happened to cryptocurrency: October 2019 highs and lows - CoinGeek

Cryptocurrency has its admirers and its detractors. But there is no denying that it looks to be here to stay.

It is important, therefore, that those in business know how it works, the benefits it can bring and the pitfalls.

There is little doubt that it offers new and exciting business opportunities. The Financial Conduct Authoritys (FCA) definition of cryptocurrency as a publicly available electronic medium of exchange that features a distributed ledger and a decentralised system for exchanging value, may sound like a bit of a mouthful but it is an accurate description. Cryptocurrencies can be accessed via the internet and used for cross-border payments and to fund transfers, all of which can make them useful in business. And being a relatively new concept, cryptocurrency offers investment opportunities.

But while these positives can be welcomed by the business world, it would be foolish and possibly costly to ignore the negatives.

There are plenty of informed observers who believe that cryptocurrency is as much an asset for those looking to commit fraud or launder money as it is for those looking to do legitimate business. Cryptocurrency was allowed to develop with very little regulation although the FCA has now issued its guidance on it - and the anonymity it offers can certainly appeal to those who are looking for a vehicle to commit financial crime. Which is why it needs to be approached with caution.

It would be surprising if anyone with an ounce of business sense committed themselves to a deal or investment opportunity without first making all possible checks into the products involved and the people who are looking to trade. And that approach must also now be taken with cryptocurrency. While to many, cryptocurrency may seem a newly-arrived but relatively unknown quantity, it should be subjected to at least the same level of good, old-fashioned scrutiny that those in business apply to more traditional aspects of their work.

The FCA has emphasised the risks associated with cryptocurrency and the value of managing these risks by having proper procedures in place. But despite any advice that the FCA or other bodies put out regarding cryptocurrency, it remains the responsibility of those in business to make sure they have done all they can to counter the risks.

Cryptocurrency platforms rely on complex infrastructures spread across a variety of countries. Client details will be held by different entities in various countries and jurisdictions. This not only makes it hard for law enforcement agencies and regulators to obtain details they may need it also creates the potential for money laundering and fraud. The result of this, unfortunately, is that it is essentially up to individuals in business and companies to make sure that they and their staff are fully aware of both the risks and the potential warning signs of wrongdoing. The only way to do this properly is by being aware of cryptocurrency developments and carrying out due diligence on any possible trading partners who want to do business involving cryptocurrency.

This may seem a daunting task for those in business who feel they are too busy to find the time and accumulate the expertise to take on such a role. If that is the case they need to seek help and advice from those who have such awareness. What they cannot do is go into any cryptocurrency-related activity not knowing the possible implications. It would be improper to suggest that all aspects of cryptocurrency are a breeding ground for criminality and that everyone who promotes or uses it has illegal gains on their mind. But it certainly offers scope for wrongdoing.

It is important, therefore, that those looking to become involved with it leave nothing to chance. To leap into the world of cryptocurrency without a full knowledge of it or without the necessary precautions in place is to invite problems. Most people in business do their homework and exercise caution in all aspects of their work. They would never think of taking up an opportunity without taking the time to make sure it is as genuine as they have been told. Cryptocurrency is the new kid on the business block. But it still has to be treated with the caution that is exercised in more established aspects of business activity.

Aziz Rahman is founder of Rahman Ravelli; a top-ranked business crime law firm in national and international legal guides.

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Cryptocurrency: the importance of assessing the risks - BQ Live

In June, the Rotman School of Managements seed-stage incubator announced a partnership with Facebooks new venture into cryptocurrency: Libra. As the companys only academic founding partner, U of Ts Creative Destruction Lab (CDL) will participate as part of the Libra Association in its efforts to create a cryptocurrency infrastructure.

While CDL touts the partnership as an exciting opportunity for innovation, recent criticisms leveraged against the tech giant have some wondering if Libra is contributing to Facebooks woes.

Facebooks crypto experiment

On June 18, amid a tense period for the company, Facebook released a statement announcing Calibra, a new subsidiary of Facebook that aims to connect people to financial services through the Libra network.

Calibra intends to create a digital wallet system where people can buy, spend, and save Libra cryptocurrency. Users will be able to use Libras wallet on Facebook-owned services like WhatsApp, Messenger, and as a standalone app.

The Libra network will use a blockchain system that will record every transaction that takes place. As a permissioned network, Libras blockchain can only function on specific servers.

Libras network will be overseen by the Libra Association, which is composed of companies, non-profit organizations, and academic institutions. The association intends to manage the network, provide servers to run the network, and manage the cryptocurrencys reserve. The association also removes Libras control from the hands of Facebook into those of industry, academia, and non-profit sectors.

When it was announced, the Libra Association had 27 members, including Spotify, Lyft, and Uber. Facebook hopes to have at least 100 partners in the association by Libras expected 2020 launch.

CDL joins The Libra Association

While the CDL was established at the University of Toronto in 2012, the lab now operates with locations across the country and in the United Kingdom. As a seed-stage program, CDL supports startups in the science and technology field.

CDLs partnership with Libra is intended to build on the labs incubation role by providing additional opportunities for the startup community. According to Rotman School of Management Professor and CDLs Chief Economist, Joshua Gans, the partnership intends to provide more opportunities for CDL startups in the blockchain stream. In the long-term, Gans said Libra presents an opportunity for the entire startup community. In creating better startup ecosystems, we will be fulfilling our mission, he said.

In an email to The Varsity, Gans discussed how the partnership will benefit the U of T community, saying, for the university, it represents a bold and innovative move with a set of challenges that is not normally in the universitys wheelhouse but is something that its leadership can build on and signal a vision that goes beyond the ordinary day-to-day of academic life.

I think it is particularly gratifying that the university, at its highest levels, has been able to back our role in Libra thus far and I hope that will continue as things evolve, Gans added.

In an interview with The Varsity, Associate Professor of Finance at the Rotman School of Management and at UTMs Department of Management, Andreas Park, said academic institutions should have a role to play in regulating Libra.

I think its really important that an academic institution is part of [the governance process], Park said, adding that academic partners could have a positive influence when outlining Libras objectives, goals, and governance structure.

Libras promise and pitfalls

When announcing the project, Facebook evoked current concerns around financial systems as justification for the product. Specifically, the company noted that financial infrastructures are inaccessible in developing countries especially for women.

Facebook founder and CEO Mark Zuckerberg reflected on this promise in leaked memos, saying he hopes that Libra will create a system of digital money that can work globally and can effectively be implemented by big companies.

For Park, a global cryptocurrency system has significant potential, especially for countries without a stable currency. An effective cryptocurrency system could have a sweeping positive impact by creating a financial structure that transcends borders.

Most people in the world would benefit greatly if they had stable money, Park said. And if you think of Facebook as two billion users, most of them are not from the developed world. So, the developing world can benefit enormously [by] this initiative almost by accident.

I could not envision a world in which the public sector would actually be able to build this, Park added.

However, while Facebook maintains that Libra will protect users private information apart from sharing data to keep people safe and comply with the law some researchers, lawmakers, and advocates have raised concerns with Facebooks track record on privacy.

Amid these mounting concerns, Libra has come under sharp scrutiny. For some companies, the costs of participating in Libra outweighed the benefits. Earlier this month, reports surfaced that seven major partners had left the association: Paypal, Visa, Mastercard, eBay, Stripe, Mercado Pago, and Booking.

Megan Boler, Associate Chair of the Department of Social Justice Education in the Ontario Institute for Studies in Education, raised concerns about Facebooks size and power in an email to The Varsity. Nothing could be more disturbingly symbolic of Facebooks meteoric rise to ruling the globe than Libra, Boler said in an email to The Varsity. Given Facebooks track record with profit over public good, one must cultivate deep suspicion about this corporations ongoing amalgamation of economic, political, legal and increasingly moral power.

Park also discussed possible concerns with Facebooks ownership of a global financial system. Unlike banks, which have limited personal data about customers, Facebook has a plethora of information on every user.

If you have the complete picture, youre extremely powerful, Park explained.

Disclaimer: Kaitlyn Simpson previously served as Volume 138 Features Editor and Volume 139 Managing Online Editor of The Varsity, and currently serves on the Board of Directors of Varsity Publications Inc.

Tags: currency, Facebook, Libra, money, Social Media, Technology

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Creative Destruction Lab partners with Facebook on new cryptocurrency - Varsity