The parent company of the stock market announced codes for 169 digital assets. Bitcoin will be part of the SEDOL information service with the financial code BMFH7T7.

The parent company of the London Stock Exchange added 169 cryptocurrencies and tokens to its financial instrument coding service, SEDOL Masterfile. The market, one of the largest in Europe, grouped assets into three categories: digital currencies, digital platforms, and security tokens.

The group highlighted that the incorporation occurred to adopt unique coding within the financial ecosystem. The intention is for operators to become familiar with digital assets as they continue to develop.

The codes on the official SEDOL list are seven alphanumeric characters, which the assets listed on the London Stock Exchange receive. There is a close equivalent in the CUSIP system of the United States and Canada.

Bitcoin leads the preliminary list, not yet officially published, with the code BMFH7T7 and is part of the group of digital currencies (XA). In this category there are up to 39 cryptocurrencies, also including Bitcoin Cash (BMFH7V9), DAI (BMFHBN9), Dash (BMFHBP1), Litecoin (BMFHCZ8), Monero (BMFHDB1), Tether (BMFHG45), Zcash (BMFHGN4), Dogecoin (BMFHBY0), XRP (BMFHGM3), and Stellar (BMFHFW6).

Regarding digital platforms (XB), the organization highlighted the grouping of assets that provide a means to create smart contracts. In this segment, there are 110 coins or tokens, among which are Ether (BMFHC58), Aeternity (BMFH7G4), Basic Attention Token (BMFH7R5), Cardano (BMFH8D8), Lisk (BMFHCY7), Ethereum Classic (BMFHC69), Waves (BMFHGJ0), Steem (BMFHFV5), NEM (BMFHDH7), and EOS (BMFHC47).

Concerning security tokens (XC), these assets are financial instruments in which decentralized properties are applied to financial contracts. The list includes 20 projects, among which the most prominent are Aragon (BMFHK65), Decred (BMFHBR3), Maker (BMFHD33), Stratis (BMFHFZ9), and Peercoin (BMFHDW2).

Among the aspects that draw attention on the list, the first is that there is no clear distinction between digital platforms with their blockchain and the tokens built on them. For example, the Ethereum smart contract network is in the same category as AirSwap, Augur, Bancor, and Storj, both of which depend on the Ethereum blockchain.

Another detail about the Decred project is that the group considers it as a security token, but Dash, which is a similar project, is among digital currencies. Besides, they consider that stablecoin Tether is a digital currency but without differentiating it from its various versions. It is also curious that DAI is in the same category as Bitcoin.

James Nevin, head of data solutions at the London Stock Exchange Group, stated that the identifiers given to cryptocurrencies and tokens will facilitate their processing when operators conduct transactions.

The 169 assets on the list are now part of a financial information service that covers more than 100 million assets. The list was the result of joint work with the Digital Asset Research company.

The inclusion of Bitcoin and the rest of the 168 cryptocurrencies in the SEDOL system is a significant fact of adoption in the world of finance. For example, the decision puts them on a par with stock, bond, and derivative trading.

By Willmen Blanco

The new FATF presidency would raise regulations but would bring new airs of adoption. The organization aims for a digital transformation against money laundering and terrorist financing.

The Financial Action Task Force (FATF) inaugurated its president and, along with it, a renewed regulatory push. The new administration, whose leader is Marcus Pleyer, from Germany, aims at a digital transformation to fight the misuse of Bitcoin and other cryptocurrencies in money laundering or terrorist financing (AML/CFT).

He is a senior executive at the German Ministry of Finance who knows Bitcoin and the other cryptocurrencies first hand, but without ignoring or demonizing them. The fact that he remains the deputy director-general of the ministry is conveying a message about possible new airs of adoption and greater legitimacy.

Pleyer participates in the development of policies related to digital finance and payment methods. In other words, his decisions have allowed Germany to be a country that is friendly to Bitcoin and cryptocurrencies in general.

The weighting that the European country has given to Bitcoin ratifies its recognition from various points of view: as a means of payment, as a haven or, even, as a financial instrument.

For years, Germany has seen the first cryptocurrency as a finance transformation element and a new form of money. Facts have shown this in the past.

In early 2018, the Ministry of Finance published a document that established that the use of Bitcoin as a means of payment, for the purchase of goods or services, was exempt from paying taxes. The legislation also established that exchange operations involving national currencies or vice versa were subject to the payment of contributions.

In July 2019, the country approved the sale of tokens backed by real estate on Ethereum. The bond offering was for USD 280 million and received validation from the German Federal Financial Supervisory Authority (BaFin), an entity under the Ministry of Finance.

In March 2020, BaFin declared cryptocurrencies as financial instruments. The entity decided to comply with the 5^th Directive of the European Union against Money Laundering (5AMDL).

Conflicting Positions between Germany and China

Now that Pleyer is in command of the FATF, Bitcoin could enter a new phase of recognition and legitimacy among its members, whose positions around the first cryptocurrency vary substantially.

The most emblematic example is that of China, a country that held the FATF presidency with Xiangmin Liu before Pleyer. Liu currently serves as CEO of the Legal Department of the Central Bank of China.

The country still engages in double-talk regarding this issue. On the one hand, it is against cryptocurrencies and their promotion, but it encourages the development of distributed ledger technology (DLT) as a State policy.

China also uses double-talk, since it is developing what would be a digital yuan. In other words, they could be making decisions to capitalize on technology as a state and not as a facilitator to empower their citizens in the Bitcoin era.

The FATF has just left an administration of a more regulatory nature to enter another that shows a potential adoption guideline. The administration that will end in June 2021 could demonstrate it.

By Alexander Salazar

This situation occurs just 5 months after DeFi platforms reached USD 1,000 million deposited. Yield farming seems to be the main reason for this increase.

DeFi platforms, which emulate the traditional banking system, exceed a total of capital locked as collateral of USD 2.15 billion. This new mark comes with new leadership since Compound takes MakerDAO’s first place as the DeFi platform with the most funds stored.

Just five months after having exceeded the USD 1 billion mark, the amount of cash available for loans on DeFi platforms reaches a new high, doubling the previous value. The technical term of this type of capital is total value locked (TVL).

Different analysts consider that this growth on DeFi platforms is occurring as a consequence of a phenomenon known as yield farming.

Yield farming arises from a condition that DeFi platforms like Compound have. As an incentive for more participants to deposit their money, DeFi platforms offer reward tokens that they issue and generally use for governance. This would be a stimulus for all those users who provide them with liquidity.

The existence of DeFi platforms in the market has a business model that, in principle, simulates that of a traditional bank. In other words, they earn money by lending money or, in this case, cryptocurrencies, while borrowers accrue interest on their loans.

However, they do have one major difference from traditional banks. By issuing their tokens to reward those entities that give them liquidity, DeFi platforms are issuing money that is, inflating the market.

In the case of Compound, users who deposit cryptocurrencies for collateralized loans receive as a reward the allocation of COMP tokens, in an amount proportional to the money that they have mobilized. Something similar occurs with users who apply for loans.

Opinions about DeFi Platforms

In recent days, some experts have given their opinion on how people have been using the favorable conditions that DeFi platforms offer to obtain a 100% annual interest rate.

Dulce Villarreal, blockchain developer at IOV Labs, said that the Decentralized Finance platforms that currently exist are only for the 1% of the 1% of users. She believes that they do not offer financing solutions for the common user, but that they come from the rich to give them tools to become richer.

These opinions are in addition to many others that are present in the ecosystem. For instance, Messari analyst Jack Purdy notes that this incentive mechanism can theoretically compare to the distribution of capital among a company’s shareholders. As the use of the DeFi network increases, so does the value of the native token. In turn, this motivates the use and continuation of the cycle path.

However, users should remember that when artificial incentives inflate the market, their money may be in a bubble and they risk losing it. Therefore, they need to increase their knowledge on the subject to make their transactions on DeFi platforms more securely.

By Alexander Salazar

According to a study, the use of Bitcoin in the darknet is declining. Dark web operators see XMR as an option to avoid tracking by the authorities.

Monero (XMR) transactions have increased by more than 40% in the last year. This growth could relate to the increased use of cryptocurrencies in darknet markets.

According to data from Coin Metrics, the number of Monero transactions went from 7,308 on July 6^th, 2019, to 10,630 on July 5^th, 2020. This increase has been steady in the last 12 months, with a maximum of 14,073 transactions (a growth of almost 100%) last July 2^nd.

There has been a sustained trend in the last two years, according to the XMR team. They note that this advance would indicate a steady increase in the use of Monero for commercial transactions. They describe this fact as particularly significant since it occurs when the market fluctuates between the drop and stable prices.

In this sense, the data from bitinfocharts.com shows the growth in the number of transactions since the creation of Monero, in 2014. In the transaction graph, it is possible to observe the steady increase in transactions in recent years. The number of operations has doubled over the years, especially since 2016, with a significant increase in 2019.

The all-time high occurred in May 2019, when the number of transactions was 15,325, after having started with 4,732 transactions that year. In January 2020, the number of transactions already exceeded 8,000.

Data on the increase in transactions with XMR, a privacy-focused cryptocurrency, could be extrapolated with the results of various reports on the increase in transactions with cryptocurrencies in dark web markets since 2019.

Chainalysis conducted a study on economic activity on the darknet last year. The analysts concluded that transactions with cryptocurrencies in those markets went from 0.4% in 2018 to 0.8% in 2019.

Last May, Crystal Blockchain Analytics reached a similar conclusion in another study. The analytics platform noted that the total value of BTC moved on the dark web has increased by 65% in the last 12 months and by 340% in the last 36 months.

However, it also identified a decrease in the amount of BTC used in darknet markets. This trend relates to an increase in dark web operators’ use of altcoins.

Advance of Monero on Dark Web

The Crystal Blockchain Analytics team says that darknet market operators are forced to resort to less regulated cryptocurrencies. The analysts consider that this is because countries are applying stricter regulations and exchanges are using more verification processes.

Monero emerges as one of the main options for these markets since it has improved privacy and offers a level of anonymity, which helps users hide the origin of their transactions.

An example of the increased use of Monero in dark markets is a recent update on the news website of ISIS, also known as the Islamic State. The post states that they have reportedly switched from Bitcoin to Monero regarding the acceptance of donations.

They note that the cryptocurrency promotes complete anonymity among its donors, something that they cannot ensure with Bitcoin. The European Police Office (Europol) has asserted that the use of the Tor browser, together with Monero, has made the tracking of both funds and crime masterminds impossible.

Last April, the operators of the Sodinokibi ransomware made a decision similar to that of ISIS, communicating their preference for Monero. They even add 10% surcharges to those who pay ransoms with Bitcoin. For this reason, security expert Lawrence Abrams predicted that Monero could become the preferred means of payment for groups attacking with ransomware.

By Alexander Salazar

More than 40 cryptocurrency-related companies will share the USD 18 million. The loan is part of the Paycheck Protection Program.

The US Small Business Administration (SBA) granted around USD 18 million to more than 40 cryptocurrency and blockchain-related companies, as part of its campaign to fight COVID-19.

The initiative stems from the Paycheck Protection Program (PPP), which the Trump administration created. This program seeks to help companies pay their employees during the economic crisis that COVID-19 has caused.

The SBA released data on more than 660,000 companies that received loans. It detailed the companies and the loans, specifying the amount of money that they received and the bank that assigned it.

Among cryptocurrency and blockchain-related companies is development firm Ethereum ConsenSys, which received between USD 5 million and USD 10 million from the Signature Bank. Zcash developers Electric Coin Company received between USD 350,000 and USD 1 million from Newtek Small Business Finance.

Bittrex, a US cryptocurrency exchange, received between USD 1 million and USD 2 million from Celtic Bank. The analytics firm Messari received between USD 150,000 and 350,000 from the Silicon Valley Bank. ShapeShift, a cryptocurrency exchange platform received between USD 1 million and USD 2 million from the Signature Bank.

The United States Incentivizes Cryptocurrency Companies

IOHK USA LLC, developers of Cardano, received between USD 350,000 and USD 1 million from the Bank of America. MyCrypto and MyEtherWallet, creators of the most widely used cryptocurrency wallets on Ethereum, received between USD 150,000 and USD 350,000 from JPMorgan Chase Bank and Customers Bank, respectively.

Athena Bitcoin, creators of Bitcoin ATMs distributed in Argentina and Colombia, received between USD 150,000 and USD 350,000 from Citizens National Bank. Factom received between USD 150,000 and USD 350,000 from the Silicon Valley Bank. Civic Technologies received between USD 350,000 and USD 1 million from First Republic Bank.

Nebulous, developers of Siacoin, received between USD 150,000 and USD 350,000 from Needham Bank. The exchange Circle received between USD 1 million and USD 2 million from Silicon Valley Bank.

The action that the US government took is a measure to stop dismissals due to the economic situation that the country is undergoing, amid the COVID-19 quarantine. About 44 million US citizens have already applied for unemployment benefits since last March.

Loans to blockchain-related startup loans may give rise to controversy. Libertarian trends in the cryptocurrency industry may have led users to distrust governments and banks.

Last May, US debt exceeded USD 25 trillion due to the crisis that COVID-19 has caused. The US Treasury Department updated the balance to about USD 25,057,924,023,406.80. To counter the effects of possible economic depression in the country, the Treasury Department had USD 3 trillion available for the quarter from April to June.

Cryptocurrencies and blockchain technology have increasingly become important worldwide, especially amid the COVID-19 quarantine that is affecting humanity. This has led the US Small Business Administration to grant companies related to these sectors so that they can help fight this disease.

By Alexander Salazar

German executive Marcus Pleyer will assume command of the organization for the period 2020-2022. The German Presidency announced an initiative to monitor the risks and opportunities of virtual assets.

Keeping an eye on cryptocurrencies as part of the new standard to combat money laundering and terrorist financing (AML/CFT), Germany assumed the presidency of the international Financial Action Task Force (FATF).

Marcus Pleyer, German Executive, who serves as Deputy Director-General in his country’s Federal Ministry of Finance, will be in command of the organization for the period 2020-2022. Pleyer replaced China’s Xiangmin Liu in the presidency.

A memorandum outlines the priorities that the FATF will have for the next two years. The digital transformation of financial services is in the first place. In the document, the audit entity mentions the new standard for virtual assets to address possible emerging risks.

The agency stated that the German Presidency intends to take advantage of this work, focusing on the opportunities that technology can offer.  For this reason, they will launch an initiative to monitor risks and explore the opportunities that the digital transformation of their economies and societies brings to AML and CFT.

The tone of the document does not go directly against Bitcoin or cryptocurrencies in general. It rather establishes a starting point to learn about the challenges and opportunities that they offer to make their regulatory activity more efficient.

At this point, it is important to remember that the FATF published guidelines on cryptocurrencies in 2014 and 2015. Both guidelines define terms related to this ecosystem, but with a risk approach.

In the new priorities of the presidency, they also assume cryptocurrencies risk instruments. However, they are now talking about opportunities to improve their action against money laundering and terrorist financing.

Proximity of Germany to Cryptocurrencies

Germany’s assumption of the presidency of the FATF could open the door for greater visibility of cryptocurrencies. Unlike China as the outgoing presidency, Germany is friendlier towards cryptocurrencies. In the case of the Asian country, there is a prohibition on trading with this type of asset, as well as on any way of promoting it.

Another factor that could play in favor of virtual assets is the fact that Pleyer is directly related to the country’s Ministry of Finance. At this agency, they have made decisions to increase their use and acceptance.

In March 2018, the German Ministry of Finance exempted the payment of taxes on cryptocurrencies when people use them as a means of payment. The state institution added that cryptocurrencies facilitate the use of conventional payment methods.

In December 2019, the largest bank of Germany, Deutsche Bank, even stated that cryptocurrencies like Bitcoin will be the alternative to fiat currencies by 2030. More recently, in March 2020, the German Federal Financial Supervisory Authority (BaFin) stated that cryptocurrencies are financial instruments.

Germany has been able to see all the potential that Bitcoin and other cryptocurrencies have. When they assume the Presidency of the FATF, they will work hard to ensure the use and adoption in that European country.

By Alexander Salazar