SEC improves Crypto Crackdown, while US courts mark Cryptos as titles


Coming every Sunday, Hodler's Digest will help you keep track of every single important piece of news that happened this week. The best (and worst) quotes, the salient points of adoption and regulation, the coins, the forecasts and much more – a week on Cointelegraph in a single link.

Top Stories This Week

New York Judges Rules Securities Laws Be "Flexible" And Applies to Cryptocurrencies

At first apparent, a New York federal judge ruled that US securities laws are applicable for allegations of encrypted fraud charges. During the case of fraud against the Brooklyn resident Maksim Zaslavskiy – who allegedly defrauded the investors by promoting two cryptocurrencies supported by property and diamonds – US District Judge Raymond Dearie ruled that federal securities laws could apply to the case. In the words of Dearie, federal securities laws should be interpreted "flexibly" thus rejecting a motion by Zaslavskiy's lawyers to eliminate the allegations based on the fact that the cryptocurrencies do not fall under the Securities Exchange Act.

Vitalik Buterin believes Crypto, Blockchain Space has seen the end of the "1000x" growth

According to recent comments by the co-founder of Ethereum Vitalik Buterin, the growth and innovation of the crypto and blockchain spaces are reaching their level and they will not see "Growth of 1,000 times" again. This is not intended as FUD, since Buterin explains that the period of hype is over and that the phase of the "real applications of real economic activity" has been reached . After a bit of conflict, Buterin elaborated on Twitter that he thinks there is still room for growth, only a 1,000-fold increase.

Founder of OKEx detained in China, then released after denied the allegations of fraud [19659004] In a confusing series of events, the founder of OKEx and CEO of OKCoin Star Xu were held by police in China for 24 hours after being accidentally reported by a group of people in his hotel regarding the fraud charges related to OKEx. After being released, Xu stated in an interview that the allegations of fraud were groundless, noting that he cooperated with the police to clarify the allegations that OKEx allegedly caused financial losses to investors due to system crashes, noting who was neither a shareholder nor director of OKEx.

US regulators SEC, FINRA charges encrypted companies with fraud and title violations

For the first time, both SEC and FINRA this week charged cryptocurrency companies with fraud investors or non-compliant with securities laws . The SEC has issued cessation and divestment orders of Crypto Asset Management (CAM) and its founder Timothy Enneking, as well as of "Ico Superstore" TokenLot, claiming a false statement as a registered company and non-registration respectively. FINRA filed a lawsuit against Timothy Tilton Ayre, accusing him of fraud on the titles and illegal distribution of an unregistered cryptocurrency, HempCoin.

The Bitconnect anti-fraud investigation in India continues, the US is involved

Nalin Kotadiya, a Bharatiya Janata Party (BJP) Former and former member of the Legislative Assembly (MLA), has been postponed to ten-day custody in connection with an extortion of $ 1.3 million Bitcoin (BTC). In April, the Department of Criminal Investigation (CID) in India began investigating the kidnapping and extortion of 200 BTCs by an Indian entrepreneur and builder Sailesh Bhatt, with the case became more complex with the name of Kotadiya and it turned out that several suspects were involved in Bitconnect in India . The authorities of two US states have asked the Criminal Investigation Department (CID) in India to take over the ownership of Bitcoin promoters (BTC), a BitConnect investment company,

Most Memorable Quotations

"If you talk to the person averively educated at this point, they probably have heard of blockchain at least once.There is no more an opportunity for another 1,000-fold growth in anything in space, "- Vitalik Buterin, co – Ethereum founder

"The markets love to retrace the break … we tracked down the whole bubble. #callingabottom," – Mike Novogratz, CEO of Galaxy Digital

Laws And Taxes

Unconfirmed UAE Media Reports See Country ready to adopt ICO, Fintech regulation

The United Arab Emirates (UAE) have approved a draft regulation, which first obtained approval from the Securities and Commodities Authority (SCA) in July, which regulates the Initial Coin Offerings (ICO). Local media now report that the agreement will come into force on its forthcoming publication in the Official Gazette of the United Arab Emirates, a periodical official containing all the legislation of the country with the specification that ICOs will be regulated and recognized as securities . [19659005] France accepts the ICO framework to attract global investors

The French Minister of Economics and Finance has announced that the government has accepted an article of the bill on the growth and transformation of enterprises (PACTE) dedicated to ICOs. The bill means that the regulator of the French stock markets is now able to grant licenses to companies that want to raise funds through an ICO with legislation that aims to protect the interests of contributors . Finance Minister Bruno Le Maire said in his announcement that he hopes the current legal framework for ICOs in France will "attract investors from all over the world".


Two Stablecoins supported by Fiat receive green light from the New York Regulator

The Gemini Dollar, from the Gemelli encryption platform of the Winklevoss twins, now has the support of the New York Department of Financial Services ( NYDFS), together with the stablecoin supported by blockchain of the company Paxos in the United States. The brothers' average post describes coins that are backed by US dollars "held in a bank located in the United States and eligible for" FDIC "pass-through deposit insurance, subject to the applicable limitations "while for Paxos, investors' dollar deposits will be held" in segregated accounts with several FDIC insured US-based banks. "

Canadian Bitcoin Fund obtains common fund status

Canada "first" and "only" regulated Bitcoin (BTC) fund, First Block Capital Inc., has obtained the trust fund status, meaning that Investors in its flagship product FBC Bitcoin Trust – available only to accredited investors – can now place their holdings in such accounts as a registered pension savings Plan (RRSP) and Tax Savings Account (TFSA) . In essence, this allows accredited investors to deposit their fund shares in accounts that provide substantial tax benefits for retirement and savings purposes.

Nasdaq expects to add cryptocurrency assets to the analysis tool

Nasdaq, the New York-based Nasdaq stock market giant, is exploring the addition of cryptographic datasets to its market analysis tool. The head of Nasdaq's alternative data, Bill Dague, stated in an e-mail to Cointelegraph that " gave [an] the abundance of interest, we are exploring the cryptocurrency data sets. see if we will have an encrypted product or not . "Cryptographic datasets could be integrated into the Nasdaq data analysis hub, launched in 2017 with the aim of making unstructured data more intelligible for the benefit of investors.

Crypto, Blockchain Lobbying Group formed in Washington DC

A group of US blockchain and crypto companies have announced that they will form the Blockchain Association, the "first" group of lobbyists representing the blockchain industry in Washington DC . Blockchain Association, the group consists of industry leaders such as Crypto exchange Coinbase, the technology startup Protocol Labs, in addition to the Digital Currency Group and Polychain Capital. The organization plans for represent traditional societies that seek to operate within the political system mainly by addressing political issues and the processing of cryptocurrency from US tax law, as well as the development of AML and KYC.

Bloomberg: Morgan Stanley will offer Bitcoin Trade Swap

An anonymous source told Bloomberg this week that US banking giant Morgan Stanley is planning to offer customers exchange of bitcoin swaps. According to "family" sources, "Morgan Stanley" will treat contracts that offer investors a synthetic exposure to Bitcoin's performance […] Investors will be able to go long or short using the so-called price return swaps, and Morgan Stanley will charge a spread for each transaction. "

Mergers, acquisitions and partnerships

SoftBank partners with TBCASoft, Synchronoss for Blockchain Mobile Payments

The Japanese technology giant SoftBank has developed a blockchain enhanced cross-carrier mobile payment service with blockchain focused on TBCASoft telecommunications and technology services Synchronoss as a partner.Uber's largest shareholder, SoftBank, has partnered with TBCASoft to develop a cross-carrier blockchain Cross-Carrier Payment Service (CCPS) and Synchronoss platform, which will provide a platform of multi-channel communication combining text messages (SMS), e-mail and RCS.

Malta Stock Exchange, sign of Binance MoU for digital security token exchange launch

The subsidiary fintech and digital subsidiary MSX PLC of the Malta Stock Exchange signed a Memorandum of Understanding (MOU) with Binance cryptographic exchange to launch in addition a new security token exchange in the country . The managing director of Binance CZ had declared in an exclusive CT interview that the exchange had opened a bank account on the island, with representatives of the company who had hinted at the exchange plans to open a platform based in Malta.

Korean Customs Service Partner with Samsung SDS For Blockchain Tech Use

Korea Customs Service has signed an agreement with Samsung SDS to implement blockchain technology for its customs clearance system. Samsung's IT branch plans to develop a Nexledger-based blockchain-based platform, which will be used for export customs logistics services . Forty-eight different organizations, including public agencies, shipping companies and insurance companies entered into force together with the Korean Customs Service

Financing Round

VC Firm Ribbit Capital aims to raise $ 420 million for the new fund [19659004] The US venture capital company, Ribbit Capital, whose portfolio includes major cryptocurrency and blockchain projects, aims to raise $ 420 million for its last fund. According to Ribbit, the figure of $ 420 million is a "nominal increase" from the $ 300 million that the company attracted last year . Ribbit Capital also previously invested in Andreessen Horowitz, Battery Ventures and Cross River Bank.

Winners And Losers

The cryptographic markets have seen a more positive week, with Bitcoin returning to $ 6,519 and Ethereum over the $ 200 mark, trading at around $ 219. The total capitalization is about $ 202 billion.

The first three altcoin gainers of the week are RegalCoin, FUTURAX and Piplcoin. The three best losers of the week are EliteShipperToken, Asiadigicoin, Electronic PK Chain.

For more information on cryptography prices, be sure to read Cointelegraph's market analysis.

FUD Of The Week

CEO Behind Scheme of Crypto Ponzi Condemned to cheat investors

Homero Joshua Garza, CEO of the now encrypted US encryption company GAW Miners, was sentenced to 21 months in prison for fraud to investors with the creation and sale of a scamcoin dubbed PayCoin (XPY). Garza will also have to return a $ 9.2 million return to investors. Founded in 2014, GAW Miners was a company specializing in special hardware for mining encryption, but was closed in 2015 following allegations of operating as a Ponzi scheme, which was followed by a lawsuit in 2016 . [19659005] China Social Media Giant Blocks Official sales channel of Bitmain

WeChat, the 1 billion user social media platform developed by Tencent, has blocked the official sales channel of BTC Bitmain this week, along with other channels that were promoting "crypto hype." According to the official sales channel of Bitmain, a notice of violation of the rules states that "[WeChat] has examined and discovered that this account – without having acquired credentials or authorized licenses – has published and distributed information of the relevant companies in which is involved. "At the time of the press, the other Bitmain Wechat accounts, including after-sales services and its official account, remain active.

B erkeley Economics Professor Bashes Stablecoins Viability

Professor of Economics of Berkeley Barry Eichengreen said that stablecoins are a "myth" in a new criticism published this week. According to Eichengreen, the stablecoins including Tether, are not automatically "feasible" just because they are anchored to reserves of, for example, fiat currency . For Tether, for example, the "challenged" states that his tokens are completely collateralized and combined with the "expenses" of his release and circulation to raise questions about scalability.

Study finds that forks can undermine the stability of digital currencies

A new study by the Oak Ridge Institute for Science and Education found that the stability of digital currencies is threatened by "hard fork" software updates . According to lead researcher Benjamin Trump, digital currencies can potentially change trade and information exchange on a global scale thanks to blockchain technology, but clear guidelines for hard forks are needed in order to stabilize cryptocurrencies .

Prediction Of The Week

VC Tim Draper predicts a total cryptocurrency of $ 80 trillion over the next 15 years

Tim Draper, a venture capitalist, predicted at the DealStreetAsia PE-VE Summit in Singapore that the Total market capitalization of cryptocurrency will hit $ 80 trillion over the next 15 years. According to Draper, the recent decline in encrypted markets is due to people who have not adopted digital currencies as a new asset class and once again people become familiar with technology, can transform international industry .

The Best Features

Why We Need Web 3.0

Gav Would, a co-founder of Ethereum and the person who originally coined the term "Web 3.0", discusses the reasons why society must struggle for the adoption of the principles of Web 3.0. In the world of Would, centralization is "not socially sustainable in the long run, and the government is too clumsy to fix things". If the company rejects Web 3.0 in the future, according to the would, the world runs the risk of continuous corruption and final failure, just as medieval feudal systems and Soviet-style communism proved unsustainable in a world of modern democracies. "

As Lehman spells, Spare a Thought for Crypto

Ten years after the collapse of Lehman Brothers, Bloomberg examines what happened with the cryptocurrency industry in an attempt to conduct a partial" estimate of where all the money in encryption is gone. "In the words of Bloomberg -" something like dead ".

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