Author: Neil Mathew

Neil Mathew is a writer and trader that believes cryptocurrency has the power to change the world. He’s written for various publications and is excited to continue to share his knowledge of the markets as much as possible.

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Malta Is The Crypto Trading Leader

We all know that there are all sorts of different perspectives that different countries have with regards to cryptocurrency. There are some governments that are embracing cryptocurrency exchanges and blockchain startups with open arms, and others that are cracking down hard on the entire sector.

However, Malta has now become the country with the largest crypto trading volume in the world. While Malta has often been touted as “Blockchain Island” – its new position as the leader in trading volume has been subtle and unexpected by many.

About The Numbers

For those wondering just how much Malta has traded in 2018, the answer might surprise you. Specifically, the country traded $40 billion in cryptocurrency during that year. To put this in perspective, it traded over twice the volume of the United States, which is the largest economy in the world currently.

Following behind Malta was China, which processed $32.5 billion in cryptocurrency transactions. This achievement is even more remarkable when one considers that New York and London are considered traditional finance hubs of the world. Malta is clearly bucking that trend.

Embracing Blockchain

Of course, there is a reason for this. The government of Malta is extremely pro-blockchain, to the point where the prime minister of Malta, Joseph Muscat, told the United Nations that crypto was the “future of money”. Since the government is so welcoming to blockchain business, two of the largest exchanges in the world, Binance and Okex, have signed agreements with the Maltese Stock Exchange (MSX) to launch security token platforms, as well.

Changpeng Zhao has praised Malta for embracing blockchain and cryptocurrency, calling the local regulators “very welcoming and reasonable”. He also stated in early 2018 that “Malta will be the next hotbed for innovative blockchain companies, and a centre of the blockchain ecosystem in Europe.” It is also believed that the entrepreneur is also planning on creating the world’s first decentralized bank in the country, as well.

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Seven Crypto Criminals Indicted In Taiwan, Ran Bitcoin (BTC) Fraud Scheme

It’s well known that there are countries in Asia that are not exactly embracing the cryptocurrency markets. For example, China has cracked down on cryptocurrency and initial coin offerings (ICOs), and India is still undecided about a regulatory framework regarding the sector. It appears as though there is now more negative publicity surrounding cryptocurrency and Asia.

This time, the country is Taiwan, which often gets overshadowed, considering it is the seventh largest economy in Asia. Seven individuals have been indicted for allegedly operating a fraudulent Bitcoin (BTC) investment scheme.

Background Information

The individuals were focused on attracting investors from Taiwan and China in particular, even focusing on specific provinces. The way that they lured many investors in is by promising to deliver yearly returns of 355%, meaning that those who invested would be able to more than triple their investment in a year’s time.

While there are many individuals and crime rings around the world that have been able to swindle thousands of dollars out of potential investors – this particular group of individuals was operating on a larger scale. Specifically, the seven were able to defraud over 1,000 investors out of over $50 million. The group may have had more success due to the strict regulatory conditions in China with regards to cryptocurrency.

Context/Indictments

While some investors were allegedly receiving returns at some point, others were not. The group began attracting investors since October 2016, but by April of 2018, all returns had stopped altogether. One of the main individuals involved was a man only identified by Lin, a 47 year-old who actually established an office in Taichung’s West District specifically to defraud potential investors.

There was a whole range of evidence brought forward for the indictments, including witness testimonies, bank accounts, and “more evidence”. The individuals are charged with violating Taiwan’s Banking and Multi-Level Marketing Supervision acts.

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WWF Utilizing Blockchain For Food Tracking

The WWF will be utilizing blockchain technology. For wrestling fans who might be used to the acronym – the WWF does not refer to the “World Wrestling Federation”, but instead refers to World Wildlife Fund. The well-known conservation fund boasts that this will help both businesses and consumers track food “from origin to consumer”.

The announcement was made in a blog post from the Australian arm of the fund. The announcement points out that this will both help consumers eat in a more responsible manner, and help businesses maintain ethical standards, as well.

About The Fund

The World Wide Fund For Nature is an international organization that was founded in 1961. It is easily the world’s largest conservationist organization, and boasts over five million supporters worldwide.

The fund has invested into thousands of organizations, projects, and initiatives, with the hope that the money will help to stop the degradation of Earth’s environment. The organization focuses on six key areas: climate, wildlife, freshwater, forests, oceans, and food.

About OpenSC

The blockchain-based food tracking system is called OpenSc, and was developed through a partnership by WWF-Australia and BCG Digital Ventures. The initiative plans to “add a unique blockchain code at the product’s point of origin”. The idea here would be a consumer who could find out where a fish was caught, and how it traveled across the supply chain.

This is not the first time that blockchain technology has been used to increase transparency in the food sector. Cargill notably incorporated blockchain to increase transparency with their turkeys right before Thanksgiving last year. The largest employer in the United States, Wal-Mart, has also utilized blockchain technology to track its lettuce, as well. This proved to be quite relevant, considering that an E.Coli outbreak related to Romaine lettuce occurred only a few months after the corporation made the announcement.

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Seoul Examining Blockchain Military Applications

In 2019, there is little doubt that blockchain technology will be utilized in a variety of sectors and industries. Over the years, there have been some obvious applications that blockchain is usually associated with, including sectors such as global payments, logistics, and data storage.

Of course, this doesn’t mean that blockchain is limited to these sectors, by any means. In fact, it appears as though South Korea is exploring how blockchain can possibly aid with their military.

Not The First

It should be clarified that South Korea is, by no means, the first country to explore military applications. Superpowers such as the United States and Russia have already been open about the fact that they might utilize blockchain for military purposes, particularly when it comes to making sure that communications are secure.

The Defense Acquisition Program Administration (DAPA) in South Korea is planning on spending over $500,000 for various projects to develop blockchain solutions to military issues. The Defense Advanced Research Projects Agency (DARPA) of the United States has made it clear that they are interested in blockchain, as well.

Fourth Industrial Revolution

South Korea has always been on the cutting edge of technology, and its government has been open about referencing the “Fourth Industrial Revolution”, which would incorporate technological trends such as artificial intelligence, blockchain, and the Internet of Things (IoT).

While some in the Korean government don’t necessarily advocate publicly for blockchain or cryptocurrency markets; there is one high-profile South Korean politician that has always promoted cryptocurrency. This would be Park Won-Soon, the mayor of Seoul. The mayor has even suggested that the city create its own cryptocurrency, the “S Coin”. The city has also set up a 100 billion won (around $88 billion in USD) fund in order to fund blockchain startups, as well.In addition, Korea has already been developing its own blockchain-based voting system since last year.

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Binance Launches Binance Jersey In European Expansion

When it comes to cryptocurrency exchanges that have been able to expand despite the bearish markets of 2018, many point to Binance as an example. The exchange, which is the world’s largest by daily volume, is continuing its expansion plans in the Europe launching a “fiat-to-crypto” trading platform entitled “Binance Jersey”.

The platform will not only allow for traders and investors to invest in Bitcoin (BTC) and Ethereum (ETH) using the euro, but will also allow them to invest using the British pound (GBP). This is interesting timing, considering that many UK politicians are uncertain about “Brexit” and the prime minister, Theresa May, is facing more resistance than ever.

About The Area

For those that are unaware, Jersey is an island in the English channel that is a British self-governing dependency, and is often utilized as an offshore tax haven. It also displayed a remarkable amount of foresight with regards to cryptocurrency markets, as it was the first jurisdiction in the world to greenlight a fully regulated Bitcoin fund five years ago.

It is clear that Binance is viewing the economic controversy around Brexit as an opportunity for more UK citizens to begin adopting and using cryptocurrency instead of the British pound or euro. The CFO (Chief Financial Officer) of Binance, Wei Zhao, also believes in the way that Jersey seems to embrace cryptocurrency, stating: “Jersey is an undisputed pioneer in blockchain development leveraged by this strong framework and talent pool.”

Uncertainty and Context

Zhao was not shy about the fact that there was an opportunity with cryptocurrency, considering that there is so much controversy about fiat currency in the area as of right now. He mentioned “economic opportunities for Europeans as well as freedom from looming Brexit uncertainty where the pound and euro are also in concern.”

Interestingly enough, Binance Jersey will operate independently of its parent company, Binance.com. Binance Jersey is working directly with the government to create jobs for locals, and partnered with its economic development agency back in June 2018.

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First Canada Crypto Law Firm Launched

Canada flag done in red and white begonia flower against a backdrop of the Rocky mountains.

One aspect about the cryptocurrency markets is certain: there are many different countries who feel a different way about regulation, and there will be all sorts of legal work for many lawyers in the years to come. However, there is one lawyer that is actually planning on specializing in the crypto industry.

For those that don’t know, one of the most recognized lawyers in the space is a man by the name of Addison Cameron-Huff. He has now apparently launched Canada’s first all-crypto legal firm, catering specifically to clients with cryptocurrency-related needs.

About Huff

Addison Cameron-Huff is no stranger to the cryptocurrency space, as he has been resolving legal matters in the sector since 2014, before many were even thinking about blockchain technology. He is easily one of the most accomplished lawyers in the industry, and has represented high-profile clients that include “Ethereum cofounders, a Bitcoin code contributor, and exchanges in three countries”, according to his website. For example, Peter Todd, a Bitcoin Core Developer, has nothing but positive things to say about Huff, stating: “I’ve relied on Addison Cameron-Huff’s legal advice since I starting consulting in applied cryptography and Bitcoin full time.”

Huff is not only a lawyer, but an entrepreneur, as well. He is the president of Decentral Inc., which went on to develop the Jaxx crypto-wallet. Additionally, he actually helped shape Canadian cryptocurrency legislation, and taught a cryptocurrency law course at University of Toronto law school.

About The Firm

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The firm will be based in Canada, but that doesn’t mean that it will be focused or partial to the country at all. It plans on developing a global clientele, and Huff believes that there is a real talent gap with regards to blockchain-related lawyers currently. He states that it is an “export opportunity for Canada’s blockchain lawyers.”

There are many law firms that utilize an hourly billing model, with some of the world’s top lawyers charging well over $1,000 an hour. Many have criticized the model, and felt that it has allowed lawyers to charge for unnecessary work, bill hours where they aren’t actually working, or game the system in other ways. Instead, Huff’s firm will rely on a fixed monthly rate for unlimited legal services, which is very rare in the legal industry.

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Swiss Watchmaking Company Launching $100K Crypto Watch

21865711 - panoramic view of the swiss alps

There are certain countries and regions that simply dominate their industry to the point where they are associated with a certain standard. For example, Belgians are known for some of the best chocolate in the world, Germany is known for its incredible engineering with regards to the auto industry, and Switzerland is known for its excellence with regards to watchmaking.

It appears as though one of the most respected Swiss watchmaking companies, A. Favre & Fils, are looking to appeal to cryptocurrency investors, traders, and investors with their newest product, that will come with a built-in cryptocurrency wallet.

About The Product

For those who are unaware, one of the distinguishing characteristics of A.Favre & Fils is that it can actually trace its genealogy to show how the watchmaking tradition was passed on from generation to generation. The CEO of the company specifically appealed to the cryptocurrency community in a statement, saying: “We have developed this first timepiece with the idea of offering something useful for the crypto-community, not simply something to spend their money on.”

The product certainly will be marketed to the affluent, as the watch will cost around $100,000 at the very least. Specifically, a spokeswoman gave the range of $102,000 to $153,000, as a potential price range. This, of course, would depend on the model and features.

Watch Features

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For those who are wondering about the exact features of the watch, the company is noticeably vague. However, it does state that the watch will “guarantee ultimate in-data security and privacy protection”, although how it will do so is unclear.

For those hoping to purchase the product immediately, you might be disappointed. The company announced that the first prototype of the new watch won’t be released until the second quarter of 2019.

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Soto Thinks CFTC Should Regulate Crypto

All over the world, countries and governments are debating about how exactly cryptocurrencies should be regulated. There are some countries that believe that regulation should be minimal, in order to foster innovation, and other governments that are more focused on ensuring that the cryptocurrency sector isn’t rife with fraud and criminal activity.

In line with that debate, a U.S. Congressman by the name of Darren Soto, a Democrat from Florida, has weighed in with his opinion. Specifically, he stated that he believes that cryptocurrency shouldn’t be regulated by the Securities and Exchange Commission (SEC).

Different Agencies

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Specifically, Soto believes that cryptocurrencies and digital assets should be regulated under the U.S. Commodity Futures Trading Commission (CFTC), not the SEC. For those who are unfamiliar, the SEC regulates securities, while the CFTC regulates commodities. Both agencies are independent agencies of the United States federal government, although the CFTC was founded in 1974, decades after the SEC, which was created in 1934.

Of course, at the center of the issue is whether or not a cryptocurrency is a security. This continues to be debated across the world. In the United States, the SEC has stated that Bitcoin, for example, might not be a security, but that initial coin offerings (ICOs) aren’t exempt from securities laws.

About Soto

Soto has been vocal about the fact that the United States doesn’t have a clear regulatory framework for the cryptocurrency sector. In fact, he introduced the Token Taxonomy Act late last year along with Congressman Warren Davidson in order to address this issue. Soto has also helped to introduce a bill addressing cryptocurrency price manipulation, as well.

Soto has made it clear that he believes that the SEC might be too tough on the sector, and believes that a “lighter touch” might be necessary. He recently stated: “Those are agencies with a lighter touch and we have grown consensus among the industry that they’d be appropriate for the majority of these types of cryptocurrency transactions and the nature of these assets.”

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Washington Wants A Blockchain Campus

Typical American college campus.

There are many regions of the world that are interested in attracting blockchain startups in order to revitalize their local economies. For example, the city of Cleveland is attempting to rebrand as “Blockland” to attract blockchain entrepreneurs, and its state, Ohio, now allows business to pay certain taxes in cryptocurrency.

It appears as though another state is making it clear that it wants to foster blockchain innovation, and that state is Washington. The state already has a history of dealing with crypto mining companies, which might provide some unique advantages over other states, as well. Specifically, Washington wants to build a “blockchain innovation campus”.

Why Washington?

19367399 – illustration of a hydroelectric dam generating power and electricity

Washington has also attracted many crypto mining companies and individuals for one very particular reason. The state boasts some very cheap hydroelectric-powered electricity, that allows for miners to mine for Bitcoin and other cryptocurrency without having to spend much more money that they would in other states.

Despite the fact that many crypto miners have lost faith in the industry thanks to the bearish markets of 2018 – there are many that still believe in the sector. One notable proponent is Lisa Parks, who also happens to be the executive director of the Port of Douglas County. Parks states: “There is more to the (cryptocurrency story) than boom and bust.” The county is putting their money where their mouth is, as well, offering $50,000 to help build out the campus.

Previous Activity

While the future might be promising in Washington – there have been companies that have folded in the area. Most famously, Giga Watt, described by media as a “Bitcoin (BTC) pioneer” actually filed for bankruptcy in November 2018, owing the same county – Douglas County – over $300,000.

However, others see opportunity. The world’s largest bitcoin mining producer, Bitmain, opened a $20 million facility in Douglas County the same month that Gigawatt filed for bankruptcy. The amount of power associated with the facility could potentially power thousands of homes.

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J.M. Bullion Accepts Bitcoin (BTC)

Silver ingot and gold bullion. Finance illustration

One of the leading bullion companies in the United States, J.M. Bullion, a leading authorized bullion dealer based in Dallas, now accepts Bitcoin (BTC) as a form of payment. For those who are unfamiliar with the sector, bullion is gold, silver, or other precious metals in the form of “bars” that are typically used for market trading.

The value of a particular bullion is typically determined by the purity and mass of the material. Some of the base metals that are often traded are metals such as aluminum, copper, nickel, and more. There are various regulatory bodies that determine what is fair in terms of “purity”.

Accepting Crypto

J.M. Bullion’s own website proudly states that the company now accepts BTC. For those interested in the amount of BTC that the company accepts, it can range from a $100 order all the way up to a $250,000 order.

Payments made in Bitcoin might take up to one day to be received, and will immediately be converted to U.S. dollars, as well. For those interested in how the company processes payments, or what exchange rate the company will be using for BTC – they are using Bitpay as a Bitcoin payment processor.

Bigger Trend?

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J.M Bullion acknowledges that the popularity of cryptocurrencies is growing, but emphasizes that at the time, they are only accepting BTC. They mention that they are already exploring adding other cryptocurrencies.

The company also emphasizes that orders cannot be cancelled, and that refunds can be made through Bitpay, which (of course) would depend on the price of BTC at the time that the refund was made.

Interestingly enough, the Winklevoss Twins compared Bitcoin to gold recently, stating that they believe that the market capitalization of the digital asset would eventually surpass the $7 trillion market capitalization of the global gold sector.