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London Stock Exchange Confirms Tech Sale To Hong Kong Cryptocurrency Exchange

The London Stock Exchange (LSE) is entering the cryptocurrency market, albeit cautiously, after it sold its trading technology to Hong Kong exchange AAX.


LSE Conscious Of Crypto Exchange Boom

As the Financial Times reported January 22, LSE has offered its Millenium Exchange matching system to AAX, in a deal similar to that signed by Nasdaq and Estonia’s DX Exchange earlier this month.

“If you look at the traditional market, there is a limited number of traditional exchanges,” the publication quoted Lorne Chambers, global head of sales and marketing at LSEG Technology as saying.

But there are a number of crypto exchanges springing up.

Unlike both Nasdaq and US counterpart Intercontinental Exchange, which owns the New York Stock Exchange, LSE has maintained a hands-off approach to the cryptocurrency sector until now.

The UK is currently getting to grips with its cryptocurrency regulation, with noises from lawmakers alarming industry businesses and commentators after they included potential bans on cryptocurrency-related financial products and services.

Exchange Owner: ‘We Need Regulated Tech’

For AAX backer Atom Group, however, bringing in regulated entities is necessary to strengthening the exchange sector.

“One of the things we see in crypto is a lot of people have built their own technology,” CEO Peter Lin commented.

One of the things we need moving forward is to bring in more technology from regulated markets to make sure this is safer for investors.

The Legality of Cryptocurrency in Zimbabwe Brought into Question

While Bitcoin advocates disagree with the regulation logic, arguing instead that security is only possible through private custody of cryptocurrency and not through legislation via tightly-regulated third parties, many jurisdictions continue to advance their local landscapes.

Nearby Hong Kong, Japan rolled out licenses to several exchanges in recent weeks, including to Coincheck, the domestic operator which lost over half a billion dollars in a hack one year ago.

After a buyout, new owner Monex Group has slowly restored functionality to the platform, along with arranging refunds to those who lost their holdings.

What do you think about LSE’s deal with AAX? Let us know in the comments section below!


Images courtesy of Shutterstock

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Wyoming Bill Would Clear the Way for Crypto Custody at Banks

Wyoming may soon become the first state in the U.S. to provide clear banking permissions for cryptocurrencies and digital assets.

A bipartisan group of state legislators introduced SF0125 to the government on Friday, which, if passed, would classify digital assets as property within existing laws. It would also establish “an opt-in framework for banks to provide custodial services for digital asset property as directed custodians,” determine standards for such services, clarify how Wyoming courts might classify digital assets and more.

Caitlin Long, co-founder of the Wyoming Blockchain Coalition, told CoinDesk that the bill is a major step forward for the state, and could prove a boon for crypto startups and users alike.

“A lot of companies are setting up as New York trust companies … the [Wyoming proposal] is a much better license than a New York Trust license because it’s [aimed at banks] and it’s in a state that has clarified the legal status of digital assets. Those two things are equally important,” she said. “There isn’t another state that’s providing that clarity.”

One of the most notable aspects of the bill is the support it has upon its introduction. The leadership of both Wyoming’s House and Senate are cosponsoring the bill, which includes members from both the Democratic and Republican parties.

On the list of sponsors are senators Drew Perkins (R.), president of the Senate, Vice President of the Senate Ogden Driskill (R.) and Senate minority leader Chris Rothfuss (D.). Also on board are representatives Steve Harshman (R.), Speaker of the House, and House Majority Whip Tyler Lindholm (R.), alongside a handful of other representatives and senators.

That being said, getting the bill introduced is just the first step.

“This [bill] was just released, it still has to go through everything,” Long noted. “Anything can happen in a legislative process, it’s not done till the governor signs the bill, but it has a lot of momentum behind it and a lot of support.”

She continued to say that just getting the bill to this point was a “labor of love,” adding:

“It truly gives the blockchain industry something I think it needs, which is legal clarity to bring it to the next level, and even the bitcoin purists who would be opposed to intermediate [entities] being in [charge] would take comfort in knowing they now have legal status for their assets.”

There had also been an alternative proposal in the works, Long explained, which would have classified cryptocurrencies similarly to securities and would have forced owners to store such assets through intermediaries.

“We would have lost direct property rights of [those assets],” she said. “There was momentum building behind that proposal … and Wyoming went in a different direction that’s much better for cryptocurrencies.”

Wyoming Senate Room image via Shutterstock

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Bitcoin Price Analysis: Weekly TA Reveals Bulls Under Pressure

As Bitcoin closed the week on another ‘Bloody Sunday’ candle, which dropped to new 2019 lows, making yet another painful yet somewhat predictable reversal, we take a look at the price action and try to establish what we should be looking for with the week ahead.   


Weekly

Bitcoin price 00 closed the week at $3536, with the decline on Sunday largely reversing the gains made through the week.

Despite making lows on Sunday at $3481, a bounce back to a close at $3542 meant avoiding a new 2018 candle close low, with the weekly candle forming an inverted hammer, which is considered a relatively bullish sign.

Despite this, Bitcoin is still stuck in no man’s land with initial significant resistance overhead at $4,050 and support at $3200.

Daily

The daily chart shows a slightly clearer picture, illustrating that Bitcoin does have some preliminary support at $3500, which is now coming under some pressure and likely to be retested again at some point this week despite there being early signs of a tweezer bottom early on Monday morning.

The more concerning factor for the bulls is the continued declining resistance which ultimately suggests that any bullish move will be capped between $3700 – $3800 where there will be significant short interest.

This would imply that there is likely to be a test towards the lows at $3200s where we last saw significant buying interest and strong historical support when Bitcoin fell from $5,000 to $3,000 during 2017.

The question will be if it is tested, could it go on to complete a W shapedbottom or Adam and Eve, or will we look to new lower lows in this bear market.

4 Hour

The 4 hour chart shows that should there be a further decline, there may be a pit stop at the $3350 range which is the 78.6% retracement level from the move from the previous lows.

If tested, a strong bounce here would be a positive sign for the bulls but the main task remains; to break the declining resistance and the $4,000 handle.

All oscillators are drifiting sideways and  not really adding anything for the analysis so are not shown on that basis.

Market Sentiment

As reported previously, the balance of market sentiment remains bullish, with the leveraged bull positions out weighing the bears by 1.4:1, which is not positive for a bullish narrative while the price is declining.

As we have seen in previous senarios like this – the bulls are essentially exposed, which leads the author to believe that a hard test of the low $3,000s is likely given what has happened

Trade Bitcoin, Litecoin and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets.  

To get receive updates for the writer you can follow on Twitter (@filbfilb) and TradingView.


Images courtesy of Tradingview, Shutterstock

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Privacy Cryptocurrency Beam Experiences Blockchain Stoppage

Update (14:04 UTC, Jan. 21 2019): Beam has now announced: “The fix was commited on Github. We will be performing additional testing. We will release the binaries in the coming hours. Thanks for your patience.”

Its GutHub page puts the error down to a bug involving “improper block generation upon cut-through of old-new UTXOs.”

Newly released privacy-oriented cryptocurrency Beam reported this morning that its blockchain is experiencing technical difficulties.

Beam announced the information on its official Twitter account Monday, saying that its network “stopped at block 25709” and that it was investigating the matter.

Within the last hour, the project tweeted an update saying:

“Issue identified and fix found. Funds are safe. Commit to GitHub in the coming hour. Binaries and detailed Post-mortem later today. Thanks for your patience and stay tuned.”

At its January launch, Beam became the first cryptocurrency based on Mimblewimble – a protocol that makes transactions confidential and virtually untraceable.

Since then, though, Beam has faced some technical issues. On Jan. 9, the team discovered a “critical vulnerability” in its wallet software and asked users to uninstall the wallet app immediately and re-download a patched version from their website.

While the critical bug was fixed, it could have put users’ funds at risk by allowing attackers to modify transactions and subsequently send funds directly into their own wallet, Beam’s developers said at the time.

Last week, a second privacy cryptocurrency based on Mimblewimble – Grin – also went live. While it has seen high interest from cypherpunks, sources told CoinDesk at the time that several VC funds were planning to mine the crypto.

Broken chain image via Shutterstock

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Washington State County Doubles Down on Cryptocurrency After Mining Bust

After the boom, backlash, and (partial) bust of Bitcoin in central Washington, one might expect an aversion to the technology. But instead, one authority wants to capitalize on the resources left in the aftermath, to promote new growth in blockchain.


A Story Sad To Tell

Central Washington’s story is not uncommon in the cryptocurrency world. A cool climate and a shed-full of cheap hydro-electric power attracted speculators from as far away as China. The new cryptocurrency gold-rush promised a rebirth for this sleepy rural part of the United States.

But when cryptocurrency prices dropped, so did the area’s fortunes. Companies over-leveraged through ambitious expansion plans, found themselves facing bankruptcy. While at the same time, the public backlash caused some authorities to take measures such as increasing electricity costs for miners.

But Douglas county has taken an alternative tack.

Speculate To Accumulate

Authorities there see huge potential in all the high-speed computing power and blockchain expertise leftover from the boom. By repositioning itself as a center of blockchain excellence, Douglas county hopes to benefit as the technology revolutionizes other industries.

Hydroelectric dam

Lisa Parks, executive director of the Port of Douglas county explains:

There is more to the cryptocurrency story than the boom and the bust. We have some unique assets that make our region appealing… Let’s figure out a way to capitalize on it.

But the proposed ‘Blockchain Innovation Campus’ is only part of the picture. In order to entice new development in the blockchain industry, Douglas county continues to encourage its existing cryptocurrency miners.

Bucking The Trend

Unlike neighboring Chelan and Grant counties, which essentially priced miners out of the market with energy-cost hikes, Douglas’s rate increase was far more modest.

The result of this has been continued investment from new mining operations. In November, Bitmain opened a $20 million mine in the region, near the town of East Wenatchee. And the county is trying to revive the mining operations of GigaWatt, which had become an unfortunate poster-boy for the area’s Bitcoin bust.

While some might expect a once-bitten twice shy attitude, having previously been burned, local authorities have a different outlook. As the next iteration of blockchain continues to develop, such an outlook should see them well placed for the next phase.

There is, after all, trusted wisdom in not throwing out the baby with the bathwater.

Will Douglas Country’s economy benefit from supporting the blockchain industry? Share your thoughts below!


Images courtesy of Shutterstock