Ripple Reveals Which Countries Really Support Bitcoin, Ethereum and XRP in Key Remittance Markets
Ripple has released an extensive overview on digital asset regulations around the world.
In a 2020 report called The Last Mile Playbook, the San Francisco payments startup offers a look at the extent to which countries in key remittance markets support crypto assets such as Bitcoin, Ethereum and XRP.
“Today, countries around the world are addressing the frictions inherent in the last mile by upgrading and modernizing their domestic payment schemes. Out of 195 countries, there are now over 54 real-time payment schemes developed and many more in development globally. These new systems enable real-time settlement of low-value payments and rich data transfer.”
In the US, Ripple highlights the fact that the Commodity Futures Trading Commission has officially declared that Bitcoin (BTC) is a commodity. In addition, the agency’s current chairman, Heath Tarbert, has said he believes Ethereum is a commodity as well.
Ripple has met with regulators around the world in an effort to drive adoption of XRP in the world of cross-border payments.
After working directly with central banks and lawmakers, including a recent virtual meeting with Banco Central do Brasil, here’s a look at the company’s take on the global regulation of cryptocurrency.
“Legal status of a token or coin dependent on its individual characteristics, which determines whether existing regulations apply (i.e. does the token confer rights and is it a security?). CFTC has ruled that BTC and other digital assets are commodities…
Exchanges must register with FinCEN as a money service business, obtain money transmission licenses (MTLs) from certain states and ‘Bitlicense’ if services touch New York…
Financial institutions treat the decision to engage in digital asset activity as a risk-based analysis.”
“XRP is considered a ‘virtual asset’ that is freely tradable by non-financial institutions. Financial institutions must obtain approval from the central bank to transact in a particular virtual asset, and even then may only do so for internal purposes.
Exchanges must meet specific guidance on AML requirements…
Certain activities that rely on traditional banking rails may be viewed as requiring authorization under newly adopted laws (e.g. providing custody of fiat currency).”
“Legal status of a token or coin dependent on its individual characteristics, which determines whether existing regulations apply (i.e. does the token confer rights and is it a financial product?).
[Crypto exchanges] must register with Austrac, the local financial crimes regulator…
A digital asset may be treated as an asset that is held or traded and not as money or a currency. Certain activities could deem an entity to be categorized as a ‘remittance provider.’”
“No specific classification of digital assets. FX regulations limit purchase of digital assets via credit or debit and must transfer funds to the exchange account through non-card payment rails.
[Exchanges are] not subject to licensure or registration. Currently not subject to anti-money laundering (AML) regimes, but likely to change soon…
Foreign exchange laws and currency controls are a potential hurdle.”
“Although Colombia’s Central Bank has issued public remarks recognizing digital assets and warning against potential risks, financial watchdogs have not yet taken an official position or adopted a specific regulatory framework. Banks are largely blocked from providing services to digital asset companies.”
“No specific classification of digital assets…
[Exchanges are] not subject to licensure, registration or any specific guidance from regulators, including AML authorities.
Foreign exchange laws and currency controls are a potential hurdle.”
“Although nations in the EU (and EEA) conform to general standards (for example, set by the European Commission and/or European Central Bank), each individual region may have a particular stance on both digital assets in general as well as whether or not a financial institution can hold a digital asset. Therefore, it is largely a facts and circumstances analysis…
Exchanges in EU regions must comply with the Fifth Anti-Money Laundering Directive (5AMLD), which requires each country to transpose 5AMLD into local law.”
“No specific classification of digital assets… Foreign exchange laws and currency controls are a potential hurdle. The ‘last mile’ rate that a beneficiary receives may be impacted by the regulatory status of a local market participant.”
[Exchanges are] not subject to licensure, registration or any specific guidance from regulators, including AML authorities.”
“No specific classification of digital assets…
[For exchanges,] money exchange activities are subject to AML/ CFT obligations and must be listed in the register maintained and published by the local regulator.”
“Philippines SEC is working with the Central Bank to implement a new framework for digital assets. Date of implementation is unknown…
[For exchanges,] licensure with the Central Bank required.”
“Thailand is positive on digital assets with regulations in place permitting and regulating the trading of digital assets…
[Trading Platforms] must be licensed as a Digital Asset Exchange by the SEC.”
The report also covers India where digital assets are now legal after the courts ruled that a banking ban on the crypto industry that was issued in 2018 is unconstitutional.
You can check out the full report here.
DeFi Team Launches a New Layer 2 Exchange on Ethereum (ETH)
- The DeversiFi Exchange is now live.
- It utilizes the ZK-Rollup Layer 2 Scalability Solution on Ethereum.
- It can handle 9,000 transactions per second and more.
- Traders can trade directly from the ETH Wallets such as MetaMask, Ledger, and Keystone.
- Privacy is further guaranteed through the use of StarkWare zkSTARKS technology.
As the Ethereum community eagerly waits for the launch of ETH2.0 in Q3 of 2020, the DeversiFi Exchange has been launched and utilizes the Ethereum’s layer 2 scalability solution known as ZK-Rollup. The team at DeversiFi has been working on the platform for the last year and has done all the necessary stress tests to allow for a full launch earlier today.
The Co-Founder of Ethereum, Joseph Lubin, notified the crypto community of the launch of DeversiFi via the following tweet.
Thousands of TPS are online or coming online at Layer 2 of Ethereum. Scalability has arrived. Congrats to our friends at @StarkWareLtd and @Deversifi. https://t.co/smR2B1sXEc
— Joseph Lubin (@ethereumJoseph) June 3, 2020
The DeversiFi exchange allows traders to experience the benefit of Decentralized Finance markets with a fast-moving, off-chain order book. With the order book being on Layer 2, transactions can be processed quickly and settled on the Ethereum blockchain. The team further explains that DeversiFi is more than just a Decentralized exchange in that traders will enjoy the transaction speeds seen in centralized exchanges.
For the first time, traders can enjoy all the benefits that they would expect from a legacy large centralised exchange, but with no exchange or counterparty risk.
Traders, therefore, can link the following Ethereum wallets supported by DeversiFi.
The team has promised to add support for additional Ethereum wallets. A screenshot of the DeversiFi homepage can be found below.
Also to note, is that DeversiFi caters for the privacy-conscious traders through its use of StarkWare zkSTARKS technology. The latter is a form of Zero-Knowledge Rollup technology that allows for higher throughput in transactions while at the same time guaranteeing privacy.
StarkWare is the company behind the technology called zkSTARKS or Zero-Knowledge STARKS. The latter is a form of cryptographic proofs that allows for thousands of transactions to be rolled into one batch transaction on the Ethereum blockchain for settlement. This type of scaling is known as ZK-Rollup.
DeversiFi currently has the following Ethereum based trading pairs.
- Nectar – NEC/ETH
- Maker – MKR/ETH
- Kleros – PNK/ETH
- Ox – ZRX/ETH
The exchange also supports the following Tether (USDT) and DAI trading pairs.
- Wrapped BTC – BTC/USDT
- Ethereum – ETH/USDT
- Ox – ZRX/USDT
- Nectar – NEC/USDT
- Maker – MKR/USDT
- Dusk – DUSK/USDT
- Kleros – PNK/USDT
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.
Author: John P. Njui·CryptocurrencyEthereum (ETH) News·June 4, 2020
The World of Finance May Start Using Ethereum to Set Interest Rates
One of the most important metrics in the world of finance, LIBOR, is being phased out due to banks supplying false data. One potential replacement, an Ethereum fork, would bridge blockchain technology and traditional finance.
Last week, Fed Chairman Jerome Powell was asked what he thought of the AMERIBOR index, an Ethereum-based LIBOR competitor developed by the American Financial Exchange (AFX).
Powell responded that it was a cohesive metric that reflects the accurate cost of funding for banks, but may not be appropriate for adoption by all financial institutions.
The LIBOR, the London Interbank Offer Rate, is an important metric that measures the average cost of funding for the top banks in the world. This helps to set a benchmark rate for corporate loans, student debt, and other credit instruments.
Each bank reports the rate at which they borrow money for various time periods, and the average of each bank’s answer is the definitive LIBOR.
The LIBOR index used data from between 10-20 banks for each currency calculation.
However, banks have understated the rates at which they have been borrowing funds, thereby deceiving the market. LIBOR’s credibility has suffered a great deal due to this practice.
In 2019, the United Kingdom’s securities regulator announced that LIBOR will be phased out of existence in 2021.
Two potential replacements have emerged since the regulator made the announcement last year.
The Federal Reserve established the Secured Overnight Funding Rate (SOFR) as a means of developing a benchmark rate to replace the LIBOR. The SOFR only captures data from the overnight repo market, however.
Alternatively, AMERIBOR, an Ethereum fork, gathers funding rates from various time periods from 1,000 American banks and financial institutions.
This means tokens on the AFX blockchain can be easily migrated to the main Ethereum blockchain, bridging legacy and crypto finance on a single database. Adopting such a bridge would be a historic achievement for the blockchain community as well as Ethereum enthusiasts.
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You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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‘Ethereum-Based’ LIBOR Alternative Gets a Nod From Fed Chairman
The US Federal Reserve (Fed) Chairman Jerome Powell has seemingly expressed support for an “Ethereum-based” replacement of LIBOR, the average interest rate at which major global banks borrow from one another, stressing that it may not be suitable for everyone.
This alternative to LIBOR (the London Interbank Offered Rate), comes in the form of a permissioned “AFX Ethereum proof-of-authority blockchain”, as a transaction-based interest rate benchmark for banks, AMERIBOR, facilitated via the American Financial Exchange (AFX)’s electronic trading platform.
In response to a question from Senator Tom Cotton, Powell described AMERIBOR as “a reference rate created by the AFX based on a cohesive and well-defined market that meets the International Organization of Securities Commission’s principles for financial benchmarks.” However, the Chairman stressed that while AMERIBOR is a fully appropriate rate for the banks that fund themselves through the AFX “or for other similar institutions for whom AMERIBOR may reflect their cost of funding, it may not be a natural fit for many market participants.”
In either case, earlier this week, Dr. Richard L. Sandor, Chairman and CEO of the AFX said that “Chairman Powell’s response to Sen. Cotton’s question reinforces the importance of choice in the use of benchmarks and is key to the development of SOFR [Secured Overnight Financing Rate, or another alternative to LIBOR] and AMERIBOR,” which are complementary to each other.
AFX launched in November 2015, while AMERIBOR, developed together with the Chicago Board of Exchange Futures subsidiary, went live four years later. Since the start of the AFX and the AMERIBOR benchmark, more than USD 970 billion in value has been transacted, according to the company.
Upon the benchmark’s launch, Sandor said that it is AFX’s first major blockchain initiative, and that they “believe the blockchain has the potential to transform electronic trading and financial markets. AFX is committed to remain at the forefront of this new technology.”
Per the company, the AFX blockchain uses proof-of-authority consensus mechanism (unlike Ethereum’s proof-of-work, transitioning to proof-of-stake), thus leaving some control in the hands of AFX. It mints two non-fungible tokens for each party in each AMERIBOR transaction, which are compliant with the ERC-721 token standard, and which contain information on the transaction and the counterparty. The process of token minting and settling is automatic.
The news of this possible endorsement of something blockchain-related by one of the most conservative US institutions has traveled quickly through the Cryptoverse. The opinions are divided as usual though: while there are bound to be those who see this is a step forward for both blockchain in general and Ethereum in particular, others are wondering how much of Ethereum is AFX using.
Author: By Sead Fadilpašić
Corporate Money Flows to Ethereum (ETH)!
Grayscale, the leading cryptocurrency investment and asset management firm, has more than 1% of the total Ethereum available. This was explained in the company’s Net Assets Under Management (AUM) report, released on June 2. The report shows that Grayscale has $ 338.8 million AUM, which represents more than 1% of the circulating supply for Ethereum.
06/02/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
Total AUM: $4.0 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $XRP $ZEC pic.twitter.com/E3EmPeOPAG
— Grayscale (@GrayscaleInvest) June 2, 2020
Grayscale has been aggressively buying Ethereum since the beginning of the year. As at the end of April, the company made a purchase equivalent to 50% of all mined Ether in 2020. This was due to the need to keep Ethereum Trust strong on the platform as interest in Ethereum continues to grow.
Ethereum has been performing really well lately. It is currently one of the best performing assets by price, and its future still seems alive as its fundamentals are appreciated by analysts.
It is unclear whether Grayscale contributed to the performance of the large investment it made in the asset, but Ethereum continues to rise steadily.
Meanwhile, Grayscale is buying Bitcoin on a large scale this year. Recently, it bought more than 30% of all mined Bitcoins in 2020 because it is the asset with the largest AUM. Other digital assets such as Bitcoin Cash, Ethereum Classic, Litecoin, Stellar Lumen, XRP, Zcash and Horizen are held by the company with significant shares from their available resources.
Strengthening since its foundation, the company has become a reliable investment platform for institutional investors to invest in digital assets. If the company continues to grow at this rate, asset holdings may reach unprecedented levels by the end of the year. The platform is still buying Ether to increase their presence and may exceed the current volume in the near future.
Author: Leonard Mansonhttps://somagnews.com
EOS, Ethereum and Ripple’s XRP – Daily Tech Analysis – 05/06/20
EOS rose by 0.88% on Thursday. Following on from a by 0.67% gain on Wednesday, EOS ended the day at $2.7223.
A bullish start to the day saw EOS rise to an early morning intraday high $2.7476 before hitting reverse.
EOS broke through the first major resistance level at $2.7223 before sliding to a late morning intraday low $2.6651.
Steering clear of the first major support level at $2.6480, EOS broke back through the first major resistance level.
A visit to an afternoon high $2.7463 was brief, however, with EOS falling back to sub-$2.70 levels.
Late support delivered the upside on the day, however. EOS broke back through the first major resistance level before wrapping up the day at $2.7223.
At the time of writing, EOS was down by 0.17% to $2.7177. A bearish start to the day saw EOS fall from an early morning high $2.7238 to a low $2.7159.
EOS left the major support and resistance levels untested early on.
EOS would need to avoid sub-$2.71 levels to take a run at the first major resistance level at $2.7582 into play.
Support from the broader market would be needed, however, for EOS to break out from Thursday’s high $2.7476.
Barring another extended crypto rally, the first major resistance level at $2.7582 would likely cap any upside.
Failure to avoid sub-$2.71 levels could see EOS fall deeper into the red.
A fall through the $2.71 pivot would bring the first major support level at $2.6757 into play.
Barring another crypto meltdown, however, EOS should steer clear of sub-$2.65 support levels. The second major support level sits at $2.6292.
Major Support Level: $2.6757
Major Resistance Level: $2.7582
23.6% FIB Retracement Level: $6.62
38% FIB Retracement Level: $9.76
62% FIB Retracement Level: $14.82
Ethereum fell by 0.58% on Thursday. Partially reversing a 2.90% gain from Wednesday, Ethereum ended the day at $243.18.
A bullish start to the day saw Ethereum rise to an early morning intraday high $246.73 before hitting reverse.
Falling short of the first major resistance level at $248.90, Ethereum fell to a late morning intraday low $236.17.
The reversal saw Ethereum fall through the first major support level at $236.79 before revisiting $246 levels.
Ethereum once more fell back to sub-$240 levels before finding late support to wrap up the day at $243 levels.
At the time of writing, Ethereum was down by 0.39% to $242.23. A mixed start to the day saw Ethereum rise to an early morning high $243.45 before falling to a low $241.72.
Ethereum left the major support and resistance levels untested early on.
Ethereum would need to avoid sub-$242 levels to support a run at the first major resistance level at $247.88.
Support from the broader market would be needed, however, for Ethereum to break out from Thursday’s high $246.73.
Barring a broad-based crypto rally, the first major resistance level and Thursday’s high should cap any upside.
Failure to avoid sub-$242 levels could see Ethereum see another day in the red.
A fall back through the morning low $241.72 would bring the first major support level at $237.32 into play.
Barring an extended crypto sell-off, however, Ethereum should steer clear sub-$230 levels on the day.
The second major support level at $231.47 should limit any downside on the day.
Major Support Level: $237.32
Major Resistance Level: $247.88
23.6% FIB Retracement Level: $257
38.2% FIB Retracement Level: $367
62% FIB Retracement Level: $543
Ripple’s XRP ended the day flat on Thursday. Following a 0.59% gain on Wednesday, Ripple’s XRP ended the day at $0.2042.
It was a mixed start to the day. Ripple’s XRP rallied to an early morning intraday high $0.20736 before hitting reverse.
Ripple’s XRP broke through the first major resistance level at $0.2058 before sliding to a late morning intraday low $0.19938.
The reversal saw Ripple’s XRP fall through the first major support level at $0.2016 to sub-$0.20 before finding support.
An early afternoon rally saw Ripple’s XRP break back through the first major resistance level before easing back into the red.
Finding late support, however, Ripple’s XRP moved back through to $0.2050 levels before ending the day flat. The second major resistance level at $0.2074 had capped the upside in the early part of the day.
At the time of writing, Ripple’s XRP was down by 0.14% to $0.20392. A mixed start to the day saw Ripple’s XRP rise to an early morning high $0.2045 before falling to a low $0.20349.
Ripple’s XRP left the major support and resistance levels untested early on.
Ripple’s XRP will need to move back through to $0.2040 levels to support a run at the first major resistance level at $0.2079.
Support from the broader market would be needed, however, for Ripple’s XRP to break out from Thursday’s high $0.20736.
Barring a broad-based crypto rally, the first major resistance level and Thursday’s high would likely cap any upside on the day.
Failure to move through to $0.2040 levels could see Ripple’s XRP fall deeper into the red.
A fall back through the morning low $0.20349 would bring the first major support level at $0.1999 into play.
Barring another crypto sell-off, however, Ripple’s XRP should steer clear of the second major support level at $0.1957.
Major Support Level: $0.1999
Major Resistance Level: $0.2079
23.6% FIB Retracement Level: $0.3638
38.2% FIB Retracement Level: $0.4800
62% FIB Retracement Level: $0.6678
Please let us know what you think in the comments below.
Author: Bob Mason5 hours ago (Jun 05, 2020 12:26 AM GMT)