Weeks after the UAE Securities and Commodities Exchange issued their announcement and Arabic crypto assets legislation, the SCA has issued the English version, which can be found in the this article below. This is a huge move given that it provides legislation for crypto assets, exchanges, and custodial services onshore within the country and not within free zone areas. The UAE SCA regulation aims to regulate the offering, issuing, and trading of crypto assets in the state and its related financial activities.
As per our previous articles, the SCA has defined in its law a crypto asset as the following, “A record within an electronic network or distribution database functioning as a medium for exchange, storage of value, unit of account, representation of ownership, economic rights, or right of access or utility of any kind, when capable of being transferred electronically from one holder to another through the operation of computer software or an algorithm governing its use.”
The UAE SCA also defined security tokens as a security to the extent issued, transferred or traded in the form of a Crypto Asset or a Crypto Asset that is deemed to be a Security pursuant to Article (4) of this Regulation, subject to the exclusion stipulated in in Article (3/ Second/ 3) of this Regulation.
While it defined commodity tokens as any crypto Asset that is not a Security Token and Regulated Commodity token as Commodity Token designated as a Regulated Commodity Token under Article (11) of this Regulation or any other Commodity Token listed and traded on a Crypto Asset Exchange in any jurisdiction to the extent promoted, offered and/or issued in the State or the subject of any other financial activities conducted in the State.
The law also discussed loyalty scheme which can utilize commodity tokens as a reward for purchase of consumer products.
In addition the law also defines crypto asset exchanges as a “platform or facility for the trading, conversion and/or exchange of Crypto Assets in return for other Crypto Assets, fiat currency, Securities and/or Commodities, which applies non-discretionary trading and/or order matching rules, or which brings potential buyers and sellers together (regardless of whether any resulting transaction is executed on the platform), or which is deemed to be a Crypto Asset Exchange under Chapter (6) of this Regulation, and is not otherwise excluded from being a Crypto Asset Exchange under Chapter (6) of this Regulation or is approved or licensed as a Crypto Fundraising.”
As for Crypto Asset Custody Services the law considers the following activities as part and parcel of crypto custody services, A) In respect of Security Tokens and Regulated Commodity Tokens, any activity that would be considered Custody Services in respect of Crypto Assets if the Crypto Assets were Securities or commodities; B) Services to control, safeguard, or manage private cryptographic keys (or equivalent) associated with Crypto Assets for or on behalf of any person; and C) Other services, where the service provider holds, takes responsibility for or otherwise conducts control, safeguarding, or management of Crypto Assets for or on behalf of any person.
The law also discusses Crypto Fundraising platform which is defined as an electronic platform accessible online through which a facility is available for persons to commit funds to subscribe for Crypto Assets.
The SCA legislation talks about the definition of virtual currency, digital currency which will need to be approved by Central Bank pursuant to its regulations that are issued from time to time.
As for who can trade in crypto assets, it is made clear that only accredited investors and investment firms can invest. Crypto assets have to be listed and available for trading on more than one crypto asset exchange.
UAE has now joined countries such as Bahrain, Singapore, Malta, Estonia, Switzerland and others as one of the few countries who have regulated crypto assets and crypto trading.
Author: Lara Abdul Malak
Cryptocurrency exchange Liquid confirms hack – TechCrunch
Cryptocurrency exchange Liquid has confirmed it was hacked, but that the scope of the incident is still under investigation.
The company’s chief executive Mike Kayamori said in a blog post the attack happened on November 13. The hacker gained access to the company’s domain records, allowing the hacker to take control of several employee email accounts, and later compromised the company’s network.
Kayamori said that while cryptocurrency funds are “accounted for,” the hacker may have accessed the company’s document storage. “We believe the malicious actor was able to obtain personal information from our user database. This may include data such as your email, name, address and encrypted password,” he said.
The company said it was “continuing to investigate” if the hacker gained access to documents that users submitted to verify their identity with the exchange, such as a government-issued ID, selfie, or proof of address, which could put users at a heightened risk of identity theft or for targeted attacks.
Liquid told users in an email that they should change their passwords to be safe.
Attacks that target a company’s network infrastructure take advantage of weak or reused passwords that were used to register the company’s domain name. By breaking in and changing those network settings, attackers can invisibly control the network and gain access to email accounts and systems that would be far more difficult through other routes of attack.
Cryptocurrency startups and exchanges are high-value targets for hackers, given the potential for massive financial rewards of a successful breach. In 2018, Nano saw $170 million stolen in a breach, Coinrail lost $40 million after a hack, Bithumb lost $30 million, and Binance and Coincheck each lost a massive $400 million after hackers broke in.
Liquid was founded in 2014, and claims to have facilitated the trade of $50 billion in cryptocurrency over the past year.
Author: Zack Whittaker
3 On-Chain Metrics Show Why Bitcoin Price Could Hit $20K
Bitcoin inched towards $18,500 on Tuesday night. A sell-off occurred, and the cryptocurrency lost its support base of $18,000 in the early Wednesday hours. But ahead of the US session, it managed to secure the $18,000-support all over again.
The seesaw intraday price move in the Bitcoin market shows that bulls are in full control. Any attempt to mass short the cryptocurrency’s local tops are getting outnumbered by an increasing buying hysteria. As a result, the BTC/USD exchange rate is sustaining its short-term bullish bias as it attempts to retest its all-time high near $20,000.
Independent market analyst Cole Garner stated in a Wednesday tweet that Bitcoin is far from topping out. He cited three on-chain metrics that show why the cryptocurrency’s parabolic rally will likely go higher in the coming sessions.
Many analysts agree that traders withdraw Bitcoin en masse from exchanges when they don’t plan to trade it for other assets. The analogy comes from a common safety standard that promotes the idea of depositing only those cryptocurrencies with exchanges that traders may want to trade.
As of now, the Bitcoin balances are going down. It proves that traders want to hold the cryptocurrency, thereby removing the market supply against rising institutional demand.
Mr. Garner provided further evidence of an extending Bitcoin rally with the Miner’s Position Index (MPI).
“Miner’s Position Index has not yet hit the danger zone,” said Mr. Garner after noticing the MPI under ‘2.’
As stated above, any attempts to sell-off Bitcoin are meeting incredible buying demands. And the hourly Binance BTC/USDT order book shows why.
The chart above shows that Binance’s aggregated order book has barely any sell volume. On the other hand, its buy volume is astonishingly higher. It further shows that more and more traders are buying Bitcoin only to withdraw them later to their private wallets to hold.
Therefore, BTC/USD hitting its previous bubble peak of $20,000 looks like a doable task.
This post was originally published on www.newsbtc.com
Huobi Plans Takeover of Major Japanese and South Korean Crypto Exchanges – news.kuaidiantou.vip
Huobi, Chinaâs largest crypto trading desk Huobi is reportedly pursuing an aggressive globalization agenda that involves the acquisition of major crypto exchanges across Asia.
According to an exclusive report by Chinese crypto news source @WuBlockchain, Huobi is set to purchase major Asian crypto exchanges bitFlyer and Bithumb. BitFlyer is the largest crypto trading desk in Japan with over 2.5 million users while Bithumb is one of the âbig fourâ South Korean cryptocurrency exchange platforms.
Data from crypto market aggregator Coingecko puts Huobi as the 7th-largest crypto exchange by spot volume with bitFlyer and Bithumb ranked 19th and 12th respectively. If successful, the deal could firmly establish Huobiâs presence outside China since it pulled out of the US market back over a year ago.
However, both bitFlyer and Bithumb operate in tightly regulated markets. Bithumb is one of only four platforms in South Korea that utilize real-name trading accounts, a rule mandated by South Korean authorities back in March.
The bitFlyer acquisition deal is reportedly in the $500 million range with no information yet as to the asking price for Bithumb. Back in Sept., BTCManager reported that the South Korean crypto exchange giant may be up for sale for $430 million.
At a combined price of almost $1 billion, Huobiâs targeted acquisition strategy likely points towards a healthy financial status for the Chinese crypto trading behemoth. Commenting on Huobiâs financials, Wu remarked:
âWith the rapid rise of Huobi Contract derivatives and other businesses this year, a large amount of profits can be used for acquisitions. Bloomberg once disclosed that Huobi’s revenue in 2019 was approximately $680m [with] the profit margin estimated to be 50% or higher. Due to the sharp rise in currency prices this year, Huobi’s revenue is expected to rise by more than 50%.â
Huobiâs plans have reportedly hit a snag with crypto exchanges under the microscope in China. Indeed, several high-ranking executives of Chinese crypto trading platforms are reportedly under investigation by law enforcement in the country.
The situation is part of a larger anti-money laundering offensive by Beijing that is focusing squarely on the telecoms and cryptocurrency industries. Commercial banks are reportedly freezing credit and debit cards associated with over-the-counter (OTC) crypto transactions.
Chinese miners caught in the rising card freezing tide are also facing difficulties in paying for electricity.
Like BTCMANAGER? Send us a tip!