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There is no denying the impact of cryptocurrencies in the modern financial sector. However, the problems facing the industry such as security and lack of a proper regulatory framework has caused most governments to shun cryptocurrency in their jurisdictions. India is one of the countries that were fighting cryptocurrencies, but according to News BTC, India might be warming up to cryptocurrencies. The country is laying down the framework for a government-backed cryptocurrency.
India put together a board under the Finance Ministry in December 2017, and one of the sitting members in the board has confirmed the plans. At the time, the board was meant to recommend measures on how the government would direct cryptocurrencies. The board was mandated with investigating and it had to present its findings in July 2018. The official maintains that the board is in support of India developing its crypto coin. This is despite the fact that both the central bank and the government have tried to diminish the setup of cryptocurrency exchanges in the country.
Altcoins Remains Banned in India
However, it might be a while before we see India’s first cryptocurrency. A government official while commenting on the plans to create the cryptocurrency saying that it conflicted with the ideals that surround decentralized cryptocurrencies. In spite of this, the government still maintains its stand to ban cryptocurrencies even with their digital currency in circulation. Another official commenting on the issue said that anyone who would be found in possession of a different coin other than the government digital currency would be open to prosecution.
The reports of the government launching its altcoins came after the RBI intensified their efforts to prohibit the use of bitcoin in India. The agency issued an order to all local banks to cut lose all firms that incorporate cryptocurrencies into their business model, including all individual traders and cryptocurrency exchanges.
This order banning cryptocurrency entities from accessing banking services infuriated the stakeholders, and they have taken the central bank to court. However, the case is likely to drag on for a while, and there seems to be no imminent end to the tussle. Other players in the Indian cryptocurrency circles have tried to navigate the order, but they have not found a sustainable plan of doing business.
Lakshmi Token
Both the government and the RBI consider digital currencies too risky, with the fear of money laundering, fraud, and supporting criminal activity taking center stage. The only option left for cryptocurrencies to exist in India is if it is controlled, and this is where the plan of having a government-backed cryptocurrency comes in.
The RBI has proposed to name the government-backed cryptocurrency after Lakshmi, the Hindu goddess of wealth and riches. However, this is not the first government-backed altcoin. Venezuela is a notable case where they have the Petro, an altcoin backed by the nation’s oil reserves. The board convened to look into cryptocurrencies is expected to table its findings in towards the end of the year, and India might be a step closer to launching their Lakshmi token.
Blockchain Events October 2018
There’s a lot on your plate in October when it comes to blockchain events. We’ll try to cover all the cryptocurrency conferences so you don’t miss out on these amazing networking and learning opportunities.
Blockchain Unbound: Toyko
When: October 14-16, 2018
Where: Tokyo, Japan
- Get your tickets for the event HERE.
The Fintech Symposium
When: October 15-16, 2018
Where: Chicago, IL, USA
- Get your tickets for the event HERE.
BlockBeats Blockchain Conference
When: October 15-16, 2018
Where: Munich, Germany
- Get your tickets for the event HERE.
Crypto Economy World 2018
When: October 16-18, 2018
Where: Barcelona, Spain
- Get your tickets for the event HERE.
Blockchain & Bitcoin Conference Astana
When: October 17, 2018
Where: Kazakhstan, Astana
- Get your tickets for the event HERE.
Crypto Games Conference
When: October 17-18, 2018
Where: Minsk, Belarus
- Get your tickets for the event HERE.
Blockchain Summit Latam
When: October 17-18, 2018
Where: Botogá, Colombia
- Get your tickets for the event HERE.
Blockchain Summit: San Francisco
When: October 18, 2018
Where: San Francisco, CA, USA
- Get your tickets for the event HERE.
Block 9 Conference
When: October 18-20, 2018
Where: Richmond, VA, USA
- Get your tickets for the event HERE.
StartEngine Summit: Tokenizing The World
When: October 19, 2018
Where: Santa Monica, CA, USA
- Get your tickets for the event HERE.
Equity ICO Business Summit
When: October 19-20, 2018
Where: Park City, UT, USA
- Get your tickets for the event HERE.
Swisscom Blockchain Training
When: October 22, 2018
Where: Zurich, Switzerland
- Get your tickets for the event HERE.
World Digital Economic Forum
When: October 22, 2018
Where: Geneva, Switzerland
- Get your tickets for the event HERE.
East-West Crypto Conference
When: October 22-23, 2018
Where: Frankfurt, Germany
- Get your tickets for the event HERE.
Blockchain & Bitcoin Conference Malta
When: October 23, 2018
Where: Valletta, Malta
- Get your tickets for the event HERE.
CoinAgenda Global
When: October 23-25, 2018
Where: Las Vegas, NV, USA
- Get your tickets for the event HERE.
The Gibraltar International Fintech Forum London 2018
When: October 24, 2018
Where: London, UK
- Get your tickets for the event HERE.
NYC ArtTech + Blockchain Connect 2018
When: October 24, 2018
Where: New York, NY, USA
- Get your tickets for the event HERE.
World Blockchain Summit Dubai
When: October 24-25, 2018
Where: Dubai, UAE
- Get your tickets for the event HERE.
Crypto Expo Asia
When: October 25-26, 2018
Where: Suntec City, Singapore
- Get your tickets for the event HERE.
CEE Block Sofia
When: October 25-26, 2018
Where: Sofia, Bulgaria
- Get your tickets for the event HERE.
BlockChain World Forum – BEIJING
When: October 25-27, 2018
Where: Beijing, China
- Get your tickets for the event HERE.
Texas Bitcoin Conference 2018
When: October 27-28, 2018
Where: Austin, TX, USA
- Get your tickets for the event HERE.
3rd Edition Crypto Summit 2018
When: October 28-29, 2018
Where: Zurich, Switzerland
- Get your tickets for the event HERE.
Decentralized Insurance Developer Conference
When: October 29, 2018
Where: Prague, Czech Republic
- Get your tickets for the event HERE.
IoT Blockchain Summit
When: October 29-30, 2018
Where: Atlanta, GA, USA
- Get your tickets for the event HERE.
World Crypto Conference
When: October 31- November 2, 2018
Where: Las Vegas, NV, USA
- Get your tickets for the event HERE.
Cryptocurrency exchanges are making headway in improving the penetration of digital currencies, but few have the popularity that Bitcoin enjoys. According to CCN, YoBit is looking to use unconventional methods to drive up the number of traders on their platform. The plan is to randomly pump coins with the intent of driving up their prices. The exchange based in Russia said that it would inject 10 BTC which is equivalent to $66,000 into ten random markets.
In a tweet, YoBit plans to buy one random coin for 1BTC every 1-2 minutes, ten times. This is a drop in the ocean given that the global cryptocurrency market records $12 billion in daily trading volume. However, this will lead to a massive increase in prices of microcap altcoin markets that do not get much trading.
While many Twitter users thought that the YoBit account might have been hacked, the report seems to be true. Their website has a countdown timer to the self-described pump, which means that they are serious about pumping up coins.
Market Manipulation Ploy
Early on in the year, the US Securities Exchange Commission issued a customer advisory warning against such kind of pump-and-dump schemes and warned that they are illegal. While it remains to be seen if YoBit’s action is unlawful according to the SEC definition, the move is being heralded by many as a form of market manipulation.
According to the US Commodity Futures Trading Commission chairperson, J. Christopher Giancarlo, the CFTC is focused on combating fraudulent forces that seek to manipulate the cryptocurrency markets. In a Wall Street Journal report, CFTC has seen a significant increase in civil penalties in 2018. In the current fiscal year, CFTC has issued $900 million worth of penalties, which is larger than the amount levied in five out of eight years of the Obama administration combined.
CoinMarketCap currently ranks YoBit as the 51st largest cryptocurrency exchange in the world as per their adjusted daily trading volume. By the time of writing this article, YoBit had processed $19 million across 482 markets in the past 24 hours and more than $198 million over the past one month. The news come after a vast majority of cryptocurrencies closed the market on Wednesday at a loss. It is estimated that the market lost an estimated $13 billion with bitcoin leading the pack.
Pump and Dump Schemes
According to the Wall Street Journal, pump and dump schemes are on the rise and YoBit seems to be riding the wave too. The report by the WSJ claims that the operator of the scheme benefits the most and traders get anything from pump and dump schemes. It is thought that the allure of involvement keeps traders coming back. Big Pump Signal, a chat room with more than 74,000 followers on Telegram, initiated 26 pump operations that raised $222 million in December 2017.
YoBit announcement to randomly pump certain coins to increase their value borrows heavily from the pump and dump schemes model. A Business Insider investigation in November 2017 on pump and dump schemes revealed that there were traders conducting pump and dump schemes on YoBit via Telegram. It is not clear whether the YoBit team is aware of the activity on their platform, but their latest news does not help their cause.
Traditional financial institutions do not see eye to eye with cryptocurrency firms, but this is about to change. According to Ethereum World News, the Monetary Authority of Singapore is looking to bridge the gap by helping cryptocurrency firms set up accounts in local banks. The financial watchdog cited that digital currency firms are finding it hard to open bank accounts the world over, and this will only impair the growth of the financial services sector. Despite this, the agency vowed that it would not slacken its rules to favor and entice cryptocurrency firms.
Crypto fintech firms in the Asian country have let their complaints known, and they continue to push the government to set up a regulatory framework that will allow them to open regular bank accounts. On the issue, Ravi Menon, the Monetary Authority of Singapore Managing Director, said that they are not trying to create lax regulations to attract the crypto business, but the aim is to bring cryptocurrency fintech startups and banks together to reach a common understanding.
Cryptocurrency Firms and Banks Collaboration
Ravi adds that due to the obscure nature of cryptocurrencies, banks must establish robust methods of authentication. The fintech startups must also chip in to ensure a strong collaboration in good faith. Ravi adds that the Singaporean banks need to apply caution due to the obscurity associated with cryptocurrency business model.
The main agenda of the Monetary Authority of Singapore is to protect investors from fraud, and curbing money laundering especially when it comes to the cryptocurrency sector. The move to ease the tension between cryptocurrency fintech startups and banks is geared toward creating more jobs and spurring innovation. The country had placed stringent measures that sought to harbor the operations of cryptocurrency firms.
Leading Cryptocurrency Adoption in South East Asia
Other than the lack of regulation, Singapore is the third largest ICO launch pad after US and Switzerland. For example, Line Corporation, which is Japan’s biggest instant messaging platform, launched its cryptocurrency exchange platform, Bitbox, in Singapore in July 2018. Binance, one of the largest cryptocurrency exchanges in the world, also set up its camp in Singapore and promised a fiat-cryptocurrency exchange that would be operational by September 2018.
Singapore is looking to go the Japan way and allow as many cryptocurrency trading and exchange platforms to operate in the country as long as they stick to the rules. Their approach to cryptocurrency regulation is more relaxed than in Japan, and this makes the country a testing ground for new technologies. Crypto.com, a blockchain fintech startup with headquarters in Hong Kong, is looking to issue the first Asian cryptocurrency Visa debit card, and it is starting the rollout in Singapore.
Different Approach to Regulation
Japan remains the ideal model for countries looking to regulate cryptocurrency firms, but Singapore in a bid to pave the way for cryptocurrency adoption is looking to a different supervisory model. They have three categories, utility tokens that pay for computing services and will hardly require any regulation. Digital tokens will be governed by the Securities and Futures Act and payment tokens which the Ravi and the Monetary Authority of Singapore do not have a problem with unless they are securities. Surprisingly, the country expressed interest in becoming the first country that will fully integrate DLTs and virtual currency.