Vlad Nistor, CEO of Romania’s Largest Crypto Exchange, Arrested on Fraud Accusations

Andres Chavez
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Vlad Nistor, CEO of Romania’s Largest Crypto Exchange, Arrested on Fraud Accusations

US prosecutors keep working hard to ensure that fraudulent activity related to cryptocurrencies is eradicated for the most part. The latest piece of news, coming from Romania, has shocked the world because it involves the largest crypto exchange platform in the European country.

According to reports from local papers and portals this week, Coinflux’s CEO Vlad Nistor was apprehended on December 13th, accused of several charges. The detention was made on a warrant from the United States of America.

The charges are scandalous: As a consequence of the situation, Coinflux stopped providing exchange services on its platform and its accounts were temporarily frozen.

Possible Extradition

The arrest of Nistor occurred on Romanian soil, according to several news hubs in the nation, upon request of US prosecutors. A hearing in the Appeal Court of Bucharest will be held to determine the future fate of the CEO, which can involve its extradition to the United States.

Coinflux, the most prominent cryptocurrency exchange in Romania, was reportedly founded in Cluj, at the heart of the Transylvanian region. It has more than 200 million euro worth of digital assets, namely Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP)in transactions.

In addition to the CEO’s arrest and the exchange’s accounts being currently frozen, Coinflux announced that all transactions would be suspended for the time being, and that there is an ongoing investigation about the subject, which has restricted access to parts of the platform.

Coinflux’s Statement

In a blog post on the Medium platform, Coinflux also claimed it is unable to communicate with users through its website or email: “Due to a recently started, unexpected investigation, we are in the unpleasant situation of temporarily stopping any digital currency exchanges. Unfortunately, our company’s bank accounts have been frozen, a situation which affects theCoinFlux wallets as well. We are doing all possible efforts, along with our legal advisers, to make sure everyone who had money deposited in CoinFluxwallets gets it back.”

Romanian press has reported that Nistor is the son of one of the founders of Banca Transilvania, which is the second-largest financial institution in the nation. He is 29 years old.

Romania, in its quest to regulate the issuance of electronic money, made the decision in July to release an Emergency Ordinance to attend the issue. As a result, entities looking to issue e-money need to have at least €350,000 ($395,000) of share capital. For years,developments regarding cryptocurrencies were thoroughly unregulated. IlanLaufer, who acts as Romania’s  Business,Commerce and Entrepreneurship Environment Minister, states that he believes in digitalassets, but stressed that it needs official regulations.

The exchange celebrated its third anniversary days before the arrest of its CEO, even advertising promotional low prices. Now, and despite the storm, Coinflux stated that their expectation is that we will gain control back, within the next days. We are aware that this is a worrisome situation for the people who have placed their trust in our service, and we assure each and every one of them that we will do everything that is up to us to fix this unfair situation.”

By Andres Chavez

Coinbase Users Will Be able to Withdraw Funds via Paypal

Andres Chavez
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Coinbase Users Will Be able to Withdraw Funds via Paypal

Users often turn to crypto exchanges looking for the best platform to perform their cryptocurrency operations. Each individual trader or investor may have a differing definition of what the “best platform” may offer, but most within the industry agree on the notion that Coinbase qualifies as one of the top such networks.

In the same vein, users got welcome news this week, as well, regarding the American-based cryptocurrency exchange. Now, they will have another mean to withdraw their money earned in crypto transaction: the online, P2P payment system PayPal has been introduced as the newest way to get money out of the platform, according to an announcement made on December 14th.

No-fees Withdrawals

The option to withdraw funds to the users’ PayPal accounts will involve no fees as well. The service will be available as of now to US-based investors, with other nations to be included as well for next year. The platform did not specify the precise moment.

The alliance between PayPal and Coinbase actually started in 2016, but due to “technical difficulties,” the latter stopped offering the option. At the time, Coinbase users could sell Bitcoin assets and receive fiat money deriving from those transactions in their PayPal accounts.

Hence, Coinbase keeps broadening its catalog of features and offerings, cementing its place among the best cryptocurrency exchanges in the planet. A few days ago, it began toying with the idea of offering trading support for 31 additional digital assets, and among the proposed cryptocurrencies are Ripple (XRP), EOS and Cardano (ADA.) According to the release, Coinbase “will be working with local banks and regulators to add them in as many jurisdictions as possible.”

More Announcements

A couple of months ago, the platform made plans public about a new process that would let it list more cryptocurrencies in a faster way. Those with intentions of submitting tokens at the page through the new approach will need to use a special form, eligible for evaluation by the exchange’s staff.

Coinbase keeps innovating and keeping up with modern times. An additional proof of that is the launch of over-the-counter(OTC) trading for institutional customers. Christine Sandler, Head of sales at the platform, stated that the plan was to combine the OTC service with CoinbaseCustody, this is, a crypto custodian tool for institutional investors that saw the light in July.

PayPal wants to keep up with the recent trends, as well, filing a patent with the U.S. Patent and Trademark Office (USPTO) with the intention of increasing speed of crypto payments, in the form of an “ExpeditedVirtual Currency Transaction System.”

A little bit more about PayPal

PayPal is a platform that allows users to pay for goods, items, and services online via electronic money transfers, serving as an alternative to traditional, tangible methods such as cheques or money orders. It is a US-based company, but it operates worldwide.

A little bit more about Coinbase

An American cryptocurrency exchange, Coinbase has its headquarters in the city of San Francisco, California. They broker exchanges of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin (with other coins on the way) with fiat currencies in 32 nations. The platform allows bitcoin transactions and storage in 190 countries. It was created in 2012.

By Andres Chavez

US Lawmaker Proposes the ‘WallCoin’ to Fund the Construction of the Border Wall

Andres Chavez
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US Lawmaker Proposes the ‘WallCoin’ to Fund the Construction of the Border Wall

The United States President Donald Trump has made no secret about the fact that he wants to build a wall right at the American border with Mexico; one of the most dangerous and busiest in the world because of all the migratoryactivity that it sees day in and day out. Thousands of illegal Mexican citizenscross the border to look for much better jobopportunities and higher standards of life.

Trump has said in the past that Mexico, someway or another, is going to pay for the wall. However, a US Congressman has a very creative idea to raise funds for the controversial project: crowdfunding.

Crowdfunding: a Viable Solution?

Warren Davidson, who is a Congressman from the state of Ohio, thinks that crowdfunding is the best solution to raise enough money to pay for the wall, a project that has been on Trump’s mind for months.

To be more specific, one of Davidson’s ideas is to raise money in the form of a cryptocurrency. In a recent interview, the law maker from the Republican Party (the same as president Trump) stated that he has been toying with the idea for quite some time now and has already proposed it.

However, there is significant opposition from the Democrats. The Mexican border wall was an essential aspect of Trump’s presidential campaign in 2016, ranking high in the list of promises made by the colorful leader.

According to Davidson’s idea, the project may involve a private funding round in which both American and Mexican citizens can contribute to raising money for the construction of the so-called wall. Residents of any country may be able to donate.

Davidson is the primary person behind the “Buy a Brick, Build a Wall Act,” a bill that would give the green light to the Secretary of the Treasury to accept monetary gifts from anyone to be used for the designing, construction, or maintenance of a “barrier along the international border between theUnited States of America and Mexico.” The raised money would goin to an account called the “Border Wall Trust Fund.” Additionally, a public web page would manage digital or electronic donations.

The WallCoin

“You could do it with a sort of like a crowdfunding site or you could do a blockchain and you could have WallCoins, but you could raise the money and frankly if we get it right at the Treasury you could even pay with Mexican pesos,” he said in an interview the last week.

The Congressman conceded that the funding initiative most likely would not support a full wall across the whole border, saying that fences could be needed to reinforce some of the sectors of the construction.

“There are areas that you would want to secure with a wall, and if you look at the areas where you have secured them with walls, $5 billion are not going to build a walllike the Great Wall of China, this is going to build secure fences,” were hisexact words about the subject.

Davidson, a known pro-crypto politician in today’s landscape, hosted a meeting in the past in which almost 100 representatives of the finance and crypto industries tried to discuss and reach common ground in a sensitive subject: ICO (Initial Coin Offerings) regulations.

By Andres Chavez

Despite the 2018 Collapse, 54 Million People Joined the Crypto Universe in the Year

Andres Chavez
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Despite the 2018 Collapse, 54 Million People Joined the Crypto Universe in the Year

Judging by all numbers, metrics, and based on empirical evidence, the fact that the cryptocurrency market is in the midst of one of the biggest collapse cannot be denied. Total market cap of the industry has greatly diminished, and the Bitcoin price has shed a significant percentage of its value since January to this date.

However, none of those so-called facts and figures have represented significant obstacles to the renewed interest in said technology: according to a study by the Cambridge Center for Alternative Finance, which is a research center of the famous University, more people are using and holding crypto assets this year when compared to those who did it in the year 2017.

Interest in Crypto Assets is at an all-time-high Fashion

In fact, the number has essentially doubles: in 2017, there were 85 million people registered at crypto service providers, whereas in the first three quarters of the current year, the number has risen up to 139 million.

Part of that can be attributed to the financial success of the crypto industry overall to close last year: between December and January, the sudden rise of BTC, ETH, and other altcoins attracted mainstream attention in all locations. Similarly, ICO projects multiplied, and general interest in crypto currencies and the blockchain technology went up as aresult.

 “Combining public data and survey findings, we estimate that the total number of user accounts at service providers amounts to at least 139 million in late 2018,” accordingto the report of the prestigious education institution.

Also, verified users multiplied by seven when we compare the total amount with data from 2016, and by two if we use last year as a parameter. There were 5 million verified crypto asset holders in 2016, 18million in 2017, and the current projections have the number rising to 35 million in 2018.

 “Using a combination of verified user data and the average share of ID-verified accounts described above, we also estimate there are currently at least 35 million ID-verified users globally,” the report explained.

Crypto-related Service Providers have also Shown Growth

Naturally, as the ecosystem grows, the user base is not the only agent within the industry that has gone up: crypto-related service providers, such as exchanges, have also increased in 2018 despite the bearish market.

Crpytocurrencyexchanges and wallets are now a common occurrence, and the latter have developed the infrastructure to support more users and more assets. Nearly 60percent of exchanges supported multiple coins last year, but the number has reached 89 percent in the current year.

Wallets are not far behind. In fact, they have shown the most progress: those with multi-coin support “surged from 46% in 2017to 90% in 2018, with 60% of wallets currently supporting more than 3cryptoassets as opposed to only 10% in 2017.”

The Cambridge Center for Alternative Finance reports that the US Dollar still dominates crypto to fiat trading, with over 50percent of the volume. The Japanese yen follows with 21 percent.

By Andres Chavez

South Africa Opens Consultation to Reform Law and Include Payments with Cryptocurrencies

Maria Rodríguez
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South Africa Opens Consultation to Reform Law and Include Payments with Cryptocurrencies

More than half of the population receives information about cryptocurrencies. Some South Africans even use cryptoactives to pay their penalty fee. However, this method of payment does not appear in national legislation

South Africa, the country in which citizens can pay their fines with Bitcoin, is among the countries most friendly to cryptoactives, as well as being one of the countries with the most Google searchesabout Bitcoin topics.

On December 5th, the South African authorities announced that they had opened a period for public consultation on the possible changes to be made to the laws currently in force in the country that could regulate payment systems with cryptocurrencies to include them as one of the current methods of payment.

On the Government of South Africa’s website and theReserve Bank of South Africa and the National Treasury’s official page, a document entitled “Review of Law 78 of the National Payment System of 1998” is available to the citizens, so that the interested ones analyze the content and send their opinions, by email, until February 28th, 2019.

The main objective is for the Government of SouthAfrica to review the laws that have become outdated in terms of new payment methods, in order to include regulations for the new existing digital currencies that are not regulated, including cryptocurrencies and the systemsthat arise on blockchain and in the fintech companies.

This decision of the South African Government to reform the law of the payment system seems to indicate that in lieu of creating new laws to regulate the cryptoactive sector, the intention is to adapt the laws in force to the ecosystem.

In April, the authorities of the Public RevenueService of South Africa (SARS) assured that they would soon take into account transactions with cryptocurrencies for the tax rules that were already in force in the country. The government agency explained that there is a very complete legal framework in South Africa; hence, it did not consider it necessary to write a separate interpretation on the subject.

In November, a survey revealed that 69% of SouthAfricans know cryptocurrencies and 39% of them own cryptoactives. The SouthAfrican Government considers that the outdated laws and the lack of regulation of this sector can generate problems since it is a gateway to the economy. The statement adds that, because changes in technology are constant, laws must be flexible too.

The payment industry is moving towards a digital era and financial technology is also moving forward with great strides. Therefore, the regulatory and legislative framework must be flexible and adaptable to these changes and provide an enabling environment for innovation to thrive.

This does not prevent the Government from making sure to avoid scams. This year, SARS was in charge of tracking transactions in order to avoid tax evasion.

For the Government, the development of global policies related to financial stability must take into account a law reform, in addition to international standards and the demands of institutions such as the WorldBank and the International Monetary Fund.

By María Rodríguez

SEC’s Clayton Defends ICOs, as long as they “Follow the Rules”

Andres Chavez
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SEC’s Clayton Defends ICOs, as long as they “Follow the Rules”

The United States’ Securities and Exchange Commission (SEC) may seem to be in sort of a “witch hunt” when it comes to fraudulent ICOs (Initial Coin Offerings.) The truth of that sentence may depend on each person’s view, but to the contrary of what some people within the industry may think, the organism is not against them, at all.

Jay Clayton, currently acting as the SEC’s chairman, recently spoke about the ICOs advantages and benefits for the industry, as an efficient method of raising funds to achieve specific objectives. However, the remarks came with a caveat.

In the same vein, Clayton delivered a speech last week, and the primary subject of his intervention was the SEC’s progress in the year and the future plans for 2019. He stated that he believed that “ICO scan be effective ways for entrepreneurs and others to raise capital,” butsecurities rules must be followed. He implied that fulfilling them will bebeneficial for all parties involved in the initiative.

Securities Laws must be Followed

He stated that “the novel technological nature of an ICO does not change the fundamental point that, when a security is being offered, our securities laws must be followed.” SEC has worked hard all year long to protect investors against potential fraudulent projects and ICOs, with moderate success.

The organization, according to its leader, has spent a significant amount of time” delivering their focus and energies on blockchain and crypto-related assets, and the situation is going to continue in2019 as SEC aims to achieve a safer environment for fund-raising projects.

Clayton also stated that “a number of concerns have been raised regarding the digital assets and ICO markets, including that, as they are currently operating, there is substantially less investorprotection than in the traditional equities and fixed income markets, withcorrespondingly greater opportunities for fraud and manipulation.”

It is not the first time that Clayton, acting as SEC’s most trustworthy spokesperson, has talked about the possible consequences of manipulation of the crypto market. In fact, it has been a common occurrence for quite some time now. He recently said that “the prices retail investors are seeing are those they should rely on, and free from manipulation – not free from volatility, but free from manipulation.”

Awareness is Increasing in the United States

The United States, as a country, is slowly, but surely gaining awareness about the potential pitfalls of crypto markets manipulation, as seen by recent bills in the Congress that aim to prevent the issue. They ask for help from the CFTC (Commodity Futures Trading Commission)and other financial “supervisors” to create a proper plan to achieve smoother regulation regarding crypto assets. The main goal is to protect investors, which are the most vulnerable agents in the ecosystem because of the reasons that Clayton outlined.

Regarding the existence of FinHub, a SECinitiative that intends to simplify startups’ products legal implications, Clayton explained that “as the FinHub and our other activities demonstrate, our door remains open to those who seek to innovate and raise capital in accordance with the law.”

By Andres Chavez

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