Category Archives: Cryptocurrency

Philippine business press, Businessmirror, has reported that the government has been yet to approve a single virtual currency exchange application. The Philippine central bank, Bangko Sentral ng Pilipinas, introduced regulations for virtual currencies earlier this year which focussed heavily on creating guidelines for the operations of cryptocurrency exchanges.

Also Read:Philippines Central Bank Issues Guidelines for Virtual Currency Exchanges

The Philippine Central Banks Supervision and Examination Sector told Businessmirror that it has not approved any applications for entities seeking to register and establish cryptocurrency exchanges. It has also been revealed that the Bangko Sentral ng Pilipinas (BSP) has so far received less than 10 applications.

BSP representative, Chuchi Fonacier stated that increased Filipino bitcoin adoption had prompted the development of cryptocurrency regulations. We have observed acceleration in transaction volume based on our survey of top industry players last year, prompting us to institute a regulatory framework. We have no updated statistics to date, as these will come from the regular reports that registered entities will submit to the BSP.

The Philipines bitcoin regulations focus upon articulating a juridical framework for the operation of cryptocurrency exchanges, in addition to providing an inclusive regulatory apparatus for cryptocurrency-based remittance services.We want to maximize the benefits from this technological innovation, while adequately managing the risks that come with it. Virtual currencies can help accelerate the delivery of financial services [e.g., payments and remittance] and lower the cost of transactions, which is consistent with our broader financial-inclusion agenda, Fonacier said.

Officials have consistently iterated the Philippines governments intention to simultaneously foster growth and innovation in the cryptocurrency industries, whilst restricting the risk of bitcoin being used for money-laundering or terrorist financing activities. We are particularly keen on addressing money-laundering risk, that is why part of the responsibilities of a virtual-currency exchange is to comply with established anti-money laundering rules, such as know-your-client procedures, as well as proper reporting to the AMLC [Anti-Money Laundering Council].

Despite local press describing the Philippines stance toward bitcoin as a first of its kind in Asia, the regulatory apparatus developed by the BSP appears to be limited in its scope. The regulations focus heavily on providing guidelines for the operation of virtual currency exchanges, yet have largely neglected to develop regulatory or taxation frameworks for general cryptocurrency use or mining. There has also been little effort made to promote and educate Filipino citizens about cryptocurrency, which will be vital for greater Filipino bitcoin adoption as only one in three Filipino citizens is reported to have access to the internet. Furthermore, the BSP has designed regulations so as to monitor the Filipino bitcoin economy through mandatory reporting submitted by virtual currency-based businesses of which the BSP is yet to approve a single application.

Do you think that the Philippines virtual currency regulations are failing to attract and foster investment in the cryptocurrency industries? Share your thoughts in the comments section below!

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Philippines Government yet to Approve Cryptocurrency Exchange ... - Bitcoin News (press release)

The Securities and Exchange Commission (SEC) headquarters building stands in Washington, D.C.

Joshua Roberts/Bloomberg/Getty Images

Cryptocurrency was invented by people who didnt much like regulators, but red tape can still bind the technology that enables it, blockchains. Fresh proof comes from a pronouncement from the Securities and Exchange Commission late Tuesday. It said that regulations applying to investments such as stocks also apply to some initial coin offerings, a novel approach to fundraising that startups have used to draw in more than $1 billion this year.

Described simply, an ICO sounds like a childish money making scheme. A person, project, or company in need of capital creates a new kind of digital coin and sells a tranche of them for real money. Magic! The coins are created using the same kind of technology behind cryptocurrencies such as Bitcoin or Ethereum, and usually paid for using digital currency, not dollars.

ICO boosters describe them as a democratizing financial force that provides capital to projects unlikely to get it from established sources such as banks or venture capitalists. The SECs announcement means that some projects will now have to pay up for the lawyers, disclosures, and paperwork required to register with the SEC before they can solicit money from Americans.

That news was widely expected, but could cool a fever that even proponents of ICOs say risks leading people to stake money on poorly planned, or even outright fraudulent projects. You had a mix of serious teams with good developers and track records and then a bunch of entrants looking for a get rich quick scheme, says Christian Catalini, an MIT professor who has been studying ICOs, and considers them a valuable financial innovation. I think the SEC is worried that many people dont realize its like gambling; many or most of ICOs will go to zero.

So why would you buy into one of these schemes? Often because the brand new coin, or token, youre offered today is supposed to have some kind of utility or value tomorrow.

In May, browser company Brave raised $35 million in less than 30 seconds by selling one billion units of what it calls Basic Attention Tokens, for example. The tokens are intended to be used inside a new market for monetizing online publishing and advertising. Buying in early might give you a chance to shape that market and get better deals on ads than you could by joining up once it takes off. Another reason ICOs have proved popular is that you can usually trade the tokens you just bought right away with other people, offering liquidity you dont usually get when backing early stage startups.

If youre thinking all that sounds similar to how companies already sell shares or other tradeable things to investors, youre thinking like the SEC. An Investor Bulletin issued late Tuesday warned that while ICOs may provide fair and lawful investment opportunities, they can also be used improperly to entice investors with the promise of high returns in a new investment space. To avoid that downside, the SEC says that from now on some ICOs will have to meet the same standards applied to non-crypto securities such as stock offerings. That means registering with the SEC and disclosing information about the investment vehicle and its risks. The policy announcement was prompted by an investigation of Ethereum-based investment scheme The Dao, which attracted $150 million-worth of funding and then saw a third of it stolen by a hacker who exploited sloppy coding.

The new guidance was expected. But its arrival, and the fact that the SEC didnt lay out exact criteria for what would make an ICO a security (or not), makes the business of launching a new ICO in the U.S. more complicated. Wannabe token issuers now face the task of figuring out if their scheme falls under existing securities laws. If it does, theyll have to go to the trouble of registering it with the SEC. Bruce Fenton, founder of blockchain-focused investment advisors Atlantic Financial, says that the legal and administrative fees to do that can cost anywhere from $20,000 to the millions of dollars for more complex operations.

The extra friction will probably slow the pace of new ICOs. Startups raised more than $1.2 billion with ICOs in the first half of 2017, according to financial research company Autonomous. Catalini of MIT thinks a deceleration would not be a bad thing, because recent excitement about ICOs has created a situation where teams with not much of a product, plan, or technology can rapidly raise millions.

Even the valuations of the credible ones are astronomical for an early stage startup, Catalini says. The SEC doesnt want people to put their savings into this who cannot afford to lose them. He believes the frenzy has been stoked by millions flowing into ICOs from people who lucked out and got into Bitcoin and Ethereum early, giving them a lot of unexpected capital to play with.

What next for ICOs? They arent going away, but they may become more select. Catalini guesses that the evolution will be similar to that seen with equity crowdfunding, where startups solicit money in small chunks from many people. The SEC moved to allow that in 2015, triggering excitement about a radical new grassroots funding model for companies. In reality, Catalini says his research indicates crowdfunding that targets accredited investorsa status that requires a net worth of $1 million or a hefty incomehas been much more significant. Targeting only accredited investors can help you avoid having to register your security with the SEC.

Many people in the cryptocurrency world see yesterdays news from the SEC as legitimizing, not constraining. After all, recognition by the SEC might draw in more investors previously unsure about ICOs. Coin Center, a Washington, DC, nonprofit that advocates for cryptocurrencies, says the decision matches up with a regulatory framework it proposed two years ago. It also notes that what the SEC has said leaves plenty of latitude for ICOs to avoid it being categorized as a security. Restricting who can invest is one way; non-profit projects can get also exemptions.

Fenton says any dip in ICO activity caused by the SECs announcement wont much alter the overall trajectory of ICOs. The number of ICOs is likely to grow almost regardless of what roadblocks may slightly slow it down, he says. Overall the space will grow fast, including the market of tokens that are registered securities. Evidence cryptocurrencies will radically disrupt the financial system as some have hoped is still lacking, but they are managing to survive within it.

Read more:
Startups' Cryptocurrency Fundraising Loophole Gets a Regulatory ... - WIRED

Dive Brief:

AMD's CEO said Wednesday that the company does not consider cryptocurrency a long-term growth driver, despite rising demand, according to Business Insider. The company will continue to focus on gaming, its bread and butter.

Lisa Su, CEO of AMD, made the remarks following the release of the company's earnings report. AMD reported higher than expected earnings and revenue, pushing the company's stock up 8%.

Su said the company would "continue to watch the developments around the blockchain technologies as they go forward," but will not include cryptocurrency in their forecast.

Companies like IBM and Microsoft have made big leaps into the cryptocurrency space, so it's surprising to see AMD backing off a bit.

Demand for chips that can be used to help with complex blockchain computing processes are on the rise, so the company could be bypassing a lucrative opportunity.The company's biggest challenger,Nvidia, is building a chip for computers that can be used in cryptocurrencynetworks.

AMD's cautious approach is fueled in part by some of the negative connections to blockchain technology. AMD may simply be trying to distance itself from any negative connotations until the dust settles.

Read more:
AMD backs off cryptocurrency even as demand grows - CIO Dive

Russian legislators are trying to use elements of the New York licensing system and Japanese laws to shape Russias cryptocurrency legislation.

Russia is working on its own legislation for cryptocurrencies and is actively examining the expertise of other nations in this respect, according to Russias Internet ombudsman Dmitry Marinichev.

In an interviewfor the Russia 24 TV channel on Wednesday, Mr Marinichev said that the Russias cryptocurrency legislation will be similar to a degree to that of Japan, and to a degree to that of New York (the New York DFS licensing system).

Concerning the current popularity of Bitcoin trading, he said he would not recommend Russians to participate in Bitcoin trading in the near future, as the risk of loss is too high. One of the factors for that is the pending system upgrade.

Mr Marinichev added, however, that the perspectives for Bitcoin and other cryptocurrencies are better in the longer term talking of a time horizon of at least a couple of years.

He stressed the increased understanding of Russian authorities of blockchain and Bitcoin. Indeed, even the Central Bank of Russia has this year become way more welcoming towards blockchain technologies and cryptocurrencies. This stance has marked a stark contrast to the banks initial position that treated Bitcoin and its likes as money surrogates and warned that any activities associated with them may be treated as violations of AML laws.

In May this year, it became clear that the Ministry of Telecom and Mass Communications expects the legal provisions for the legalization of the DLT technologies like blockchain to be in place in 2019. In March this year, Russias Prime Minister Dmitry Medvedev joined the supporters of blockchain technology by instructing the Ministry of Telecom and Mass Communications and the Ministry of Economic Development to explore the possible applications of the blockchain technology during the preparation of the Digital Economy program.

Russian businesses have been increasingly adopting blockchain-based solutions and have been examining the use of cryptocurrencies in their operations. The latest news in this respect come from airlines. Earlier in July, Russias main airline Aeroflot-Rossiyskiye Avialinii PAO (MCX:AFLT), published a procurement notice for proposals for the implementation of crypto-currencies and related technologies in its operations. Another push in this direction has been made by Alfa-Bank and S7 airlinethat have partnered on a project that will allow selling of flight tickets based on the Ethereum blockchain.

Continue reading here:
Russia's cryptocurrency legislation to resemble that of Japan, US - FinanceFeeds (blog)

Investors are mesmerized with AMD's impressive second quarter as cryptocurrency mining demand drove the company's financial results above Wall Street's expectations.

The chipmaker reported better-than-expected second-quarter earnings and guidance Tuesday. Its shares surged more than 10 percent in after-hours trading following the report and were up more than 9 percent in early regular trading Wednesday.

"AMD turned in a solid beat to our and consensus estimates as the company's new Ryzen desktop CPU ramped into production and GPU demand outstripped supply," Stifel analyst Kevin Cassidy wrote in a note to clients Wednesday. "While management wasn't specific on how much, the GPU revenue upside was driven by cryptocurrency applications."

AMD shares have rallied 102 percent through Tuesday in the previous 12 months compared with the S&P 500's 14 percent return. That performance ranks No. 4 in the entire S&P 500, according to FactSet.

Cryptocurrency miners use graphics cards from AMD and Nvidia to "mine" new coins, which can then be sold or held for future appreciation. AMD traditionally has a better reputation for mining cryptocurrencies.

The ethereum cryptocurrency is up more than 2,400 percent year to date through Wednesday, while bitcoin is up about 160 percent this year, according to data from industry website CoinDesk.

In June, AMD shares jumped after the company told CNBC that the dramatic rise in digital currency prices has driven demand for its graphics cards. At the time, major computer hardware retailers had sold out of AMD's recently launched RX 570 and RX 580 models.

Digital currency mining was the key topic during AMD's earnings conference call with Wall Street on Tuesday evening. Analysts asked company management three times for clarification on the magnitude and sustainability of cryptocurrency mining demand.

One analyst noted the company is working to mitigate future downside risk and is not incorporating continued digital currency mining outperformance in its guidance.

"Crypto mining helped stimulate demand for AMD GPUs in Q2, which we think could translate to a risk should cryptocurrency values decline, AMD is working to manage the crypto risk by targeting supply to the core GPU gaming market, and working with some of its AIB [add in board] partners to offer specific feature sets to segment the market between gaming & mining," Jefferies analyst Mark Lipacis wrote Wednesday. "AMD is not including upside from mining in its outlook."

Lipacis reiterated his buy rating on the company and raised his price target to $19 from $16, representing 35 percent upside from Tuesday's close.

To be sure, some analysts are still skeptical about AMD after its big run.

"We were surprised at the aftermarket reaction for the stock," Morgan Stanley analyst Joseph Moore wrote Wednesday. "We continue to be somewhat cynical on the long-term intrinsic value of the stock, despite being excited about Zen and maintaining numbers that are above the Street. As street numbers start to catch up, absolute valuation levels are going to matter more."

Moore reiterated his equal weight rating and $11 price target for AMD shares.

CNBC's Michael Bloom contributed to this story.

Read more:
Wall Street stunned over AMD's cryptocurrency mining demand - CNBC

Reuters/Arnd Wiegmann

AMD released itsquarterly earnings after the bell Tuesday and the stock took off.

A beat on earnings and revenue, coupled with a higher than expected forecast for the rest of the year, sent AMD's stock up about 8%.

In the earnings call following the company's release, Lisa Su, CEO of AMD, said something surprising.

"Relative to cryptocurrency, we have seen some elevated demand," Su said. "But it's important to say we didn't have cryptocurrency in our forecast, and we're not looking at it as a long-term growth driver. But we'll certainly continue to watch the developments around the blockchain technologies as they go forward."

Su said that despite a boost in graphics processing unit sales due to increased demand from cryptocurrency miners, the company wouldn't focus on the exploding market.

Cryptocurrencies like bitcoin and Ethereum have grown by headline-setting margins this year. Miners are those who lend their often specially-built computers to the cryptocurrency networks to help with complex computing required to verify payments on the platforms. Miners have been buying up lots of GPUs recently in an attempt to make their computers faster and grab a larger portion of the growing cryptocurrencies.

"If you look at GPUs across the world, the inventory in the channel is actually quite lean. And so we're working on replenishing that inventory," Su said. "Our priority, though, really is on our core market, which is the gaming market."

Nvidia, AMD's biggest competitor, is taking the opposite approach. The company is developing a mining specific chip that directly addresses the growing market. A product page for an unreleased Nvidia-based card says a mining-specific chip can increase the hash rate by 36% compared to other general purpose cards.

Cryptocurrencies are notoriously volatile, with hundred dollar moves in the price of Bitcoin the norm, rather than the exception. The currencies have generally been increasing in value but the volatility could greatly affect demand for GPUs as interest wanes with declines prices.

Su addressed this concern, saying that AMD is "doing quite a bit to make sure that [it] protects against any downside as it relates to cryptocurrency," which could also be a reason AMD isn't developing a mining specific card. "We're ensuring that we're not over-calling the demand," Su added.

AMD is up 34.66% this year.

Markets Insider

Continued here:
AMD: Cryptocurrency mining won't be a 'long-term growth driver' (AMD) - Business Insider

Financial News (subscription)

US cryptocurrency crackdown could boost capital raising in Europe Financial News (subscription) European capital raisings in cryptocurrencies could surge after the US financial watchdog said it would crack down on the unregulated practice, dubbed by some as 'the Wild West'. The US Securities and Exchange Commission said in a report yesterday that ...

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US cryptocurrency crackdown could boost capital raising in Europe - Financial News (subscription)

Many investors and cryptocurrency users consider Bitcoin, and other digital assets, the future of finance. But as they become increasingly popular, they are more likely to be targeted by cybercriminals.

There are many reasons why these virtual currencies have gained acceptance in the trading and financial industries. Most importantly, there is no need for third-party intermediaries. Blockchain, the technology underpinning the system, enables users to send and receive funds instantly without the intervention of a middleman.

No government or central bank controls cryptocurrencies, as they are totally decentralized. Despite this, several governments around the world, most notably Japan, have recognized Bitcoin as a legal method of payment. Russia banned Bitcoin in 2014, but the country now seems to be reconsidering its position on regulation, according to Alexey Moiseev, the Deputy Finance Minister of the Russian Federation.

Haim Toledano, a specialist on the capital market and decentralization technologies explains that the lack of regulation and the current uncertain legal status of cryptocurrencies presents a golden opportunity for cybercriminals. Numerous authorities are aiming to regulate the use of Bitcoin, Ethereum and other digital currencies and develop legal frameworks to protect users. In the meantime, however, cybercriminals continue to exploit the unwary.

According to Tyler Moore, Assistant Professor of Cyber Security at the University of Tulsas Tandy School of Computer Science, it is difficult to protect Bitcoin owners from hackers: I am sceptical theres going to be any technological silver bullet thats going to solve security breach problems. No technology, cryptocurrency, or financial mechanism can be made safe from hacks.

The U.S. Department of Homeland Security funded a study conducted by Moore, showing that between 2009 and March 2015, 33% of operational Bitcoin exchanges were hacked. There are several ways to protect your cryptocurrency accounts from cybercriminals. Haim Toledano recommends the best steps to take

Taking these steps will protect you from cyberattacks to a certain extent, but serious cryptocurrency traders should stay up to date with emerging threats by regularly visiting specialist online forums.

Its impossible to guarantee total protection of your digital assets, but this shouldnt deter you from entering the exciting world of cryptocurrency trading. Just make sure to take the necessary precautions to safeguard your portfolio.

Link:
How Secure is Your Cryptocurrency Portfolio? - Finance Magnates

FT Alphaville (registration)

Cryptocurrency exchanges could be subject to SEC regulation, too FT Alphaville (registration) You've probably heard the news about DAO tokens by now: The SEC says they should be regulated securities, and will probably end up regulating other digital coins, too. (At question is whether each digital coin passes the SEC's Howey test, which we ... What's Next for Cryptocurrencies After Regulators Weigh InBloomberg The SEC has finally weighed in on the crypto-token frenzy, and nobody's going to jailyetQuartz SEC Report Finds Cryptocurrency Markets Trade To Federal Securities LawsInternational Business Times ZDNet -Finance Magnates all 80 news articles »

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Cryptocurrency exchanges could be subject to SEC regulation, too - FT Alphaville (registration)

GETTY

1.20pm: Bitcoin needs a few more 'swings' before trend continues

According to Sheba Jafari, head of technical strategy at Goldman Sachs, bitcoin will "need a few more swings" before the witnessed trend continues.

"Anything above 3,000 (Jun. 13th high) will suggest potential to have already started wave V, which again has a minimum target at 2,988 and scope to reach 3,691 (the latter being a preferred target as this assumes a new high)," Ms Jafari wrote in a note to clients.

11am: Bitcoin bounces back from price crash

Bitcoin has recovered from its recent crash, with the price of the cryptocurrency reaching $2,790 at 2.00am BST this morning before falling slightly to $2,691 as of 11.30am BST.

This is close to the high of $2,855 that was recorded on Sunday.

The price has stabilised after Bitcoin miners activated BIP91 a software update aimed at solving Bitcoins scalability problem.

On Saturday, BIP91 was activated after 93 per cent of miners signalled their support well above the 80 per cent threshold that was needed.

The Bitcoin market crashed between July 12 and July 16 amid fears that the update would not be accepted, which would have triggered a user-activated soft fork splitting the cryptocurrency into two assets.

Bitcoin's volatility is very high compared to the euro, the yen or even gold

Francisco Blanch, America Merrill Lynch

Andrew Lee, head of bitcoin-shopping startup purse.io, said: Were thrilled to get past this impasse.

In further good news, Bank of America Merrill Lynch has predicted that Bitcoin will go mainstream once banks start accepting it.

A crucial hurdle for the cryptocurrency will be whether institutions accept it as collateral, the banks commodity and derivatives strategist Francisco Blanch wrote in a report.

"But we are not aware of any major institution that takes cryptocurrency as collateral at the moment, he added.

Blanch detailed how currency has developed through the ages from salt and other commodities, to gold and finally to modern money.

He noted that in the last year, volatility in Bitcoin markets fell below levels witnessed in silver markets.

COIN.DESK

"Bitcoin's volatility is very high compared to the euro, the yen or even gold," he wrote, according to CNBC.

"But it fell twice last year below the volatility of silver, the world's currency for 400 years."

Bitcoins value has more than doubled since the start of the year and has soared almost 740 per cent in the past two years, according The Motley Fool.

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Bitcoin LIVE news: Cryptocurrency soars after fears of crash wobble market - Express.co.uk