SEC will Use Blockchain Companies to Support Its Risk Monitoring

Maria Rodríguez
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SEC will Use Blockchain Companies to Support Its Risk Monitoring

US financial regulators work on mechanisms to make the market more “transparent” by identifying wallet owners

The U.S. Securities and Exchange Commission (SEC) issued a statement on January 31st, in which it explains it is looking for companies which are able to provide data about blockchain technology to strengthen its risk monitoring service, and inform the commission about new digital assets.

The statement issued is related to the publication made last month, in which SEC ensured cryptocurrencies are one of its main priorities of study for the current year. In this way, the institution explained it plans to examine the activities of companies operating in the digital asset market, monitoring the sale, trade, and management of cryptocurrency assets, especially the behavior of those that are considered a “value”.

The statement explains that SEC is “issuing this notice of requested sources as a means to conduct market studies to determine the availability and technical capacity of large and small companies, in order to provide blockchain data to support the efforts of SEC, regarding risk monitoring, With this plan, it would be able to improve compliance and inform the Commission’s policy about new digital assets”.

According to the statement, the agency expressed interest in possible sources of information related to the accounting books of the most popular block of chains. The objective is always to benefit SEC’s database and find new mechanisms to prevent capital loss risks.

Specifically, SEC requests information to have an overview of the data extraction, conversion, and verification processes. In addition, the agency requests participating companies to describe their “ability to obtain information on available data”. It includes identifying the owners of the cryptocurrency addresses. Even, the institution seeks these companies to analyze this type of data and facilitate the review process.

It should be noted that, in August 2018, an agent of the US Drug Enforcement Administration (DEA) highlighted that, even though privacy-focused cryptoactives are more anonymous than Bitcoin, the agency has ways to track them and this must be done for safety.

Lilita Infante, one of the SEC’s agents, said blockchain actually “offers many tools to identify people. In fact, I want them to continue using cryptocurrencies”, she said.

A few days ago, SEC announced that cryptocurrencies would be among its main concerns during 2019. For this reason, the initiative about using blockchain technology to improve its internal processes is part of the plan to achieve that objective.

Last year, Scott Kupor, managing partner of private venture capital firm Andreessen Horowitz, commented that digital currencies are not a risk to security forces. “Bitcoin is the best friend of the Police”. This is due to its ability to track illicit transactions in the block of chains. This is one of the strengths of this technology, which could be exploited by The U.S. Securities and Exchange Commission in the near future.

Companies interested in SEC’s request should send their response through email until Thursday, February 14th, with a brief statement of their capabilities. Once this step is ready, SEC will decide which blockchain companies are going to work with this government agency.

By María Rodríguez

Two Canadian Farmers Made the First Sale of Corn through Blockchain

Maria Rodríguez
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Two Canadian Farmers Made the First Sale of Corn through Blockchain

Thanks to this technology, the transaction was conducted instantaneously and without other intermediaries

Two farmers from Ontario, in Canada, made the first sale of corn through blockchain technology, according to what local media reported in late January.

Larry Reynolds and Lloyd Crowe are the farmers who decided to make this first transaction through a Canadian blockchain platform called Grain Discovery, which these field workers managed to get a buyer through a bidding system, in order to end the sale almost instantaneously.

Grain Discovery is a startup of Canadian origin which operates in the agricultural sector. It seeks to guide the potential of new technologies to the agroindustrial sector and promote direct, safe and instantaneous trade. The system works through a platform that becomes the place where users can advertise the product, which must be ready for sale and receive an offer in real time.

This allows sellers to carry out the commercial negotiation instantaneously and receive the payment in a short time. One of the advantages offered by this new platform is to reduce the time to market the product, speed up the shipping processes and keep the product fresher.

At the end of last year, farmers lost the sale of two shipments of corn because they were contaminated with a toxin that generates a type of Fusarium fungus. This happened because the sale took too much time to be fulfilled and said fact prevented the purchase from materializing. The product had to be discarded.

According to the farmers, this fact hindered a second sales process. Now, both must get a new buyer, verify the quality of the product and conduct negotiations for their purchase and sale. Noticing the time that some sales take, a representative of the Grain Discovery approached Larry and Lloyd to propose them to use this platform in order to get a new buyer and make the sale in a short time.

The farmers decided to use the service and quickly got a buyer, with whom they could make the transaction instantly. “By using Grain Discovery we were not only able to avoid hours of searching for a new buyer, but we found one right at the end of the route, at a better price than the original agreement, and they paid us instantly”, Larry Reynolds told to various media local.

On the other hand, the CEO of the startup company Grain Discovery, Rory O’Sullivan, commented this sale was a historical transaction, since it is the first purchase and sale of corn that was made between farmer and buyer using only blockchain technology as an intermediary.

O’Sullivan stressed that the technology platform of Grain Discovery allows consumers to be able to see the way by which the product will be transported and even be able to verify the levels of carbon present, among other endless possibilities.

“We are participating in a number of other pilot projects this year, which include the traceability of Canadian soybeans for Japan’s export market and Columbia coffee to its sale in Canadian coffee shops”, Rory concluded enthusiastically.

Certainly, there are many possibilities to adapt blockchain technology to the various facets of social, personal and commercial life, in order to facilitate those processes that some time ago took much longer to materialize, inter alia, the purchase and sale in the field of agriculture.

By María Rodríguez

Fintech Experts Forecast Bitcoin Finishing the Year in the $7,500-$9,000 Range

Andres Chavez
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Fintech Experts Forecast Bitcoin Finishing the Year in the $7,500-$9,000 Range

The world’s most valuable digital currency, Bitcoin, has had a rough last 12 months. Not only it collapsed all the way from $19,000 (that was its worth in early January 2018) to less than $4,000 in November, a span of 10 months, but it still has not been able to recover from its drought and is trading in the $3,400-$3,500 range at the time of this writing.

The bear market has been darkening Bitcoin’s landscape for weeks now. However, some experts and pundits have identified a growing opportunity throughout the year, and state that there is light at the end of the tunnel despite BTC’s evident inability to even break the $4,000 barrier in recent days.

The latest community to show its long-term support for Bitcoin and its value is Finder.co.au, most specifically, the financial experts that provided a market forecast in the company’s most recent study. The specialists believe that BTC’s price will be in the $7,500-$9,000 range by the end of the current year.

A Massive Increase

Since Bitcoin’s price is still hovering around $3,400-$3,500, a jump from $3,500 to $9,000 would be a massive one in just 11 months, most precisely; it would be equivalent to a 157% upswing in cost, which would be impressive since the cryptocurrency shed more than 80% of its value in a similar timeframe, from January 2018 to today.

Whilst some people and investors have been selling off their BTC assets for a few weeks now, executives at investment companies and fintech specialists maintain a positive attitude towards cryptocurrencies and, most specifically, Bitcoin, in the long term. They think that there are short term catalysts that can re-activate the bull market.

Several companies and platforms are becoming more involved by offering crypto-related services. For instance, ICE’s Bakkt will launch a Bitcoin futures market in America, and Fidelity will offer cryptocurrency custody. Banks and financial institutions’ activities in the bearish version of the market will go a long way into enhancing investors’ confidence that have recently doubted about the future of digital assets.

Things to Look out for in 2019

According to Ben Ritchie, the COO of Digital Capital Management, “two things to look out for in 2019 will be whether we will see decoupling of the cryptocurrencies, as to date they have trended in a relatively similar manner; and the impact of the traditional markets on cryptocurrencies. Will bitcoin rise if the S&P drops? On-ramp and off-ramps to purchasing cryptocurrencies will improve in 2019 with Bakkt and Fidelity Group entering the market. However, I do not believe we will see many institutional investors enter for some time yet.”

Ritchie’s prediction was in the higher end of the $7,500-$9,000 range, whereas other fintech specialists preferred to keep a more conservative approach, and yet they forecasted Bitcoin ending the year at $7,500.

A very important development is the one reported by Finder.com.au and HiveEx.com. The companies’ co-founder, Fred Schebesta, stated that the adoption of cryptocurrencies by millennials is steadily climbing, at least in Australia.

According to Schebesta, “millennials are particularly open to embracing crypto in order to accumulate wealth for themselves. They’ve grown up with digital technology, so it’s little wonder they want to get involved in digital currency. They are looking at investing very differently to their parents.”

By Andres Chavez

Miners and Crypto Exchanges in Venezuela Must Register Under a New Set of Rules

Andres Chavez
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Miners and Crypto Exchanges in Venezuela Must Register Under a New Set of Rules

In the midst of a political crisis that has the country with two people claiming to be presidents, Venezuela remains closely tied with cryptocurrencies and the regulation of all related activities, including mining.

In fact, the South American nation recently issued a new set of rules for crypto services providers, including miners and exchanges. Despite the country’s current political climate, it remains one of the most active in cryptocurrency-related interests.

Venezuela’s Ministry of Popular Power for Communication and Information (MIPPCI, Ministerio del Poder Popular para la Comunicacion e Informacion,’ for its initials in Spanish) published some changes in last week’s official gazette.

The Constituent Decree on the Integral System of Crypto Assets

The modifications include the “Constituent Decree on the Integral System of Crypto Assets.” The new issuance has; therefore, activate a new regulatory framework that means every business or company that works with crypto-related assets will be required to register to Sunacrip, which will be the country’s regulatory institution for crypto activities.

Through Sunacrip, Venezuela will manage requests and registration requirements, according to the information shown in the official gazette. Sunacrip will also inform affected businesses about such processes, as well, and institutions that do not register under the newly-created governing arm will face penalties that vary in the range of 100 to 300 petros, the famous Venezuelan oil-backed cryptocurrency.

Sunacrip, as the direct result of the decree, is now the highest crypto authority in Venezuela. Among its task will be ensuring that regulations are being followed, executing programs and plans regarding crypto services and assets, and day-to-day oversight, among others.

A total of 63 Articles

The newest decree published in the official gazette has a total of 63 articles, in which it covers numerous elements related to the industry: crypto terms, Sunacrip’s remit, the needs and requirements to register and audit, penalties for criminal behavior and failure to comply with the regulatory framework, and other elements.

One of Sunacrip’s most critical responsibilities from this point forward will be inspecting and auditing crypto companies. The organism will hold the right to revoke licenses whenever it sees it necessary, whether it is because of a failure to comply or because they represent a threat to the community.

The crypto-related companies that are found as non-compliant by Sunacrip will face harsh penalties that will range from 1-3 years of imprisonment and a fine that equals 50-100 petros. Sunacrip will also hold the right to seize mining rigs and retain the equipment destined for the activity.

Venezuelan government, and specifically President Nicolas Maduro, has said in the past that the amount of crypto exchanges functioning in the nation may be decreased. The controversial politician has made efforts to force cryptocurrency adoption in its country, via the Petro. American President Donald Trump ordered sanctions against the digital asset in March 2018.

In December, Maduro stated that he would start using petros for oil sales starting in 2019, and that he wanted the OPEC to recognize petro as the “digital currency for oil.” Venezuelan government also started turning people’s wages and pension payments into petro.

By Andres Chavez

Kraken Acquires UK-Based Exchange Crypto Facilities in “Nine Figure” Deal

Andres Chavez
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Kraken Acquires UK-Based Exchange Crypto Facilities in “Nine Figure” Deal

The rich gets richer, according to the old saying. In this case, one of the biggest and most widely known crypto exchanges of the world, Kraken, keeps broadening its reach and investing in crypto-related companies to ensure a strong presence in foreign markets, among other things.

Via a press release published on Monday, February 4th, Kraken confirmed that it had acquired another crypto exchange that also happens to function as a futures provider, named Crypto Facilities. The latter is located in the United Kingdom, as opposed to the American-based Kraken.

Entering the European Market

The acquisition has several appealing aspects for Kraken. Not only is Crypto Facilities a fully functional exchange that has been up and running since 2015, but it is also fully regulated by the United Kingdom’s Financial Conduct Authority, a highly favorable development for the US-based platform in its quest to successfully earn a foothold in the European market, which remains very attractive.

The exact amount in which the operation was closed was not made public by either party, but they informed that the number has, at least, nine figures, suggesting a minimum of $100 million.

“We are excited to introduce eligible clients to these industry leading futures and index products,” were the words of Kraken’s CEO Jesse Powell in the press release. The executive added that “over the coming months, our teams will continue to enhance and expand these offerings.”

The Regulating Game

The quest to find uniform criteria to successfully regulate crypto assets in the United States of America has caused numerous exchanges and related platforms to look to international markets with the intention of increasing their reach and bypassing the always limiting American restrictions.

The Bittrex crypto exchange took a similar path in recent weeks, as it launched an international version of its traditional trading platform, effectively separating US-based customers from foreign ones with the intention of offering other types of assets to the latter group.

Crypto Facilities and Kraken have both stated that they are thrilled by the recent events, embracing a focus in the London market. “Crypto Facilities will remain London-based, benefiting from the regulatory oversight of the Financial Conduct Authority, one of the world’s most forward looking and innovation-focused regulators, and reflecting Kraken’s commitment to the UK as the leading financial and cryptocurrency hub in Europe,” the press release expressed.

Whereas Crypto Facilities is fully regulated, the country as a whole is still struggling to find common ground when it comes to legislation. The industry sector is continually criticizing plans that threaten to ban some crypto derivatives.

The nation is, however, highly aware of the existence of cryptocurrencies and their advantages as a mean of investment, according to a survey conducted in December 2018.

A little bit more about Kraken

Kraken is an American cryptocurrency exchange that has been present in the market since 2011. It operates in several countries, among them are the USA, the European Union (EU,) Canada, and Japan. It is the planet’s largest Bitcoin exchange in euro volume and liquidity.

By Andres Chavez

Top Bank in Belarus Will Open a Cryptocurrency Exchange House

Maria Rodríguez
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Belarusbank, the most important bank in Belarus, is expected to open an exchange in the country this year

Recently, through the Belarusian local press, it was announced that Belarusbank is considering creating a house of exchange that will be able to operate with the main cryptocurrencies of the world.

Belarusbank, the largest and most important bank in Belarus, an entity with a large volume and management of bank accounts, transactions and customers, commented that it is evaluating the possibility of forming a foreign exchange house that will operate with the bank’s platform and technology, which is necessary to be able to enter the cryptocurrency exchange market.

According to the bank’s President, Viktor Ananich, the financial institution is making important efforts to have this platform ready and create the right body for its proper functioning. In an interview with a television channel, Ananich said: “The possibility of creating an exchange platform for commercial operations with cryptocurrencies is being studied. We are currently evaluating the issue”. For this reason, it is considered that this important step corresponds to the large increase in transactions, traffic and acceptance that blockchain technology is having in that country.

Among other actions expected to do by the financial institution for the near future is to accelerate the growth of the bank with the total adoption of different digital platforms. In fact, Ananich said recently that the board of directors of the bank is in negotiations with a mobile phone service company, in order to expand the services offered by the bank to its customers.

Ananich mentioned that the company’s negotiations with this telephony company are ahead of schedule and that he expects this operation to be a platform that can satisfy customers through mobile technology.

Another important advance of this company is the development of a system that will provide customers with a digital card. With this new option, they could make their purchases in a simpler and safer way, avoiding the preparation of physical cards and spending on them.

For Viktor, the bank performs these movements as a support for progress and growth that must go hand in hand with the rapidity of new technologies and keep updated to provide the industry with the best services and increase their participation in negotiations of all kinds.

Belarusbank is a bank belonging to the State Ownership Committee of Belarus. Currently, it is considered the most important banking institution in the country, with a management of more than 13 billion dollars in assets since 2017. In addition, this company supports the largest number of entrepreneurs and merchants in the country, who obtain loans and special services by the bank.

Belarusbank is not the only financial institution operating with cryptocurrencies and using blockchain technology in the country. In 2017, the National Bank of Belarus consolidated an information network based on blockchain technology, which is focused on the registration of the issuance of bank guarantees.

Aleksandr Lukashenko, President of Belarus, commented in 2017 that “Belarus will become the first government in the world to open ample opportunities for the use of blockchain technology. We have every possibility of becoming a regional center in this area”, he said.

After these years, the European country is still investing and developing programs around blockchain technology and showing that it wants to continue working with it, despite the abrupt changes and the crypto market falls in recent months.

By: María Victoria Rodríguez

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