ECB To Study Off-Chain Data In Crypto Surveillance

ECB To Study Off-Chain Data In Crypto Surveillance
August 8, 2019


The cryptocurrency market continues to trade in the green with Bitcoin (BTC) hovering around the $12,000 level. At the time of writing this article, Bitcoin was trading at $11,942.89, up 3.3% from prior close. There are three reasons given by analysts for the strong rebound of Bitcoin. Firstly, stock markets across the globe are tumbling due to the US-China trade war. Secondly, Bitcoin is now seen as a hedge against global uncertainty. Thirdly, designating China as a currency manipulator by the US has encouraged the Bank of China to openly support a weak yuan. Surprisingly, Ethereum (ETH) continues to stay almost flat at $225.27, representing a 0.1% decline in the past 24 hours.

Other altcoins which have rallied in the past 24 hours include Leo (LEO-$1.26, 0.3%), (LTC-$95.42, 0.6%), EOS (EOS-$4.22, 0.4%), Monero (XMR-$95.46, 5.1%), Bitcoin Cash (BCH-$336.76 1.1%), Huobi (HT-$4.95, 0.8%), and OKB (OKB-$3.54, 1.3%). Some of the major altcoins which are trading in red are Ripple (XRP-0.3094, -1.1%), Cardano (ADA-$0.0508, -5.7%) and Stellar (XLM-$0.0783, -1.3%). Tron (TRX-$0.0216, -1.2%), Cosmos (ATOM-$3.46, 4.5%), Dash (DASH-$106.77, -0.5%).


Government level initiatives

The FIU intends to bring crypto exchanges under its straight forward control

The Financial Intelligence Unit (FIU), which is overseen by South Korea’s Financial Services Commission, has disclosed its intention to bring cryptocurrency exchanges under its straight forward control. Business Korea has stated that the FIU’s plans to move away from its prevailing custom of regulating cryptocurrency exchanges circumlocutorily by offering managerial suggestions to local banks.

To include cryptocurrency exchanges into South Korea’s regulatory mechanism, according to FIU official, the South Korean government will bring about a crypto exchange licensing framework, as suggested by the Financial Action Task Force (FATF). This will supposedly improve the openness of cryptocurrency trades.

Lee Tae-hoon, head of administration and planning at the FIU, in a public hearing conducted at the National Assembly Member’s Office in Seoul, issued the following statement: “If an amendment to the Act on Reporting and Use of Certain Financial Transaction Information, which reflects the FATF’s international standards for cryptocurrencies, passes the National Assembly, it will be possible to prevent money laundering through cryptocurrencies.”

Lee further stated that lawmakers had reacted positively to the decision to move away from “indirect regulation through commercial banks to direct regulation.”


Private sector initiatives

Samsung launches its DApp kit – Jupiter, and password wallet – Mars

Samsung, the South Korean consumer electronics company, is offering two new services related to blockchain and decentralized application (DApp) Software Development Kit. The company unveiled its DApp kit last month, pointing that it permits for account administration and backup, digital signature facilitation and payment, Samsung Keystore and even support for other cold wallets.

Samsung has incorporated a digital analytics DApp named “Jupiter” and a password wallet “Mars,” which uses QR code, into Galaxy S10 and the latest versions of Samsung smartphones.

Jupiter uses artificial intelligence-based price forecast and analytics system created by TrustVerse on Microsoft Azure architecture. The DApp facilitates users to monitor the volatility of digital assets, such as Bitcoin (BTC) and Ether (ETH), among others, by studying past records of market movements.

The facility thus offers a prediction on crypto prices trend over the next few hours. Samsung’s customers will supposedly be able to receive in-depth study reports on blockchain token market and cryptocurrency prices. The next app, Mars, allows users to perform peer-to-peer cryptocurrency transfers via QR code. The document published along with the release of the tool elaborates as follows: “Complex address input can be avoided just by clicking on a QR code and therefore, typo error or entering the wrong address can be avoided.”


Standard Charted Bank completes first blockchain-powered supply chain finance deal

London-based Standard Chartered bank has successfully finished its first blockchain-powered supply chain financing deal. The financial institution revealed that the transaction was conducted in partnership with China headquartered supply chain financing firm Linklogis. It can be remembered that an MoU (memorandum of understanding) was inked between Standard Chartered and Linklogis in February 2019. The deal ensures expanding the supply chain visibility of the bank while assisting in the continuing growth of China’s economy and innovation.

In particular, the latest deal used Linklogis platform, named WeQChain, which was created by China’s internet firm Tencent. The blockchain technology-based platform improves transparency and minimizes charges related to credits for vendors who are part of the China-based venture named Digital Guangdong.



The ECB looking at improving studies of cryptocurrencies

The European Central Bank (ECB) has stated that the “central banking community” will improve its tracking of both on- and off-chain cryptocurrency trades. In a report entitled “Understanding the crypto-asset phenomenon, its risks, and measurement issues,” the ECB claims that “closing the data gaps associated with crypto-assets” remains a considerable challenge for financial institutions and monitoring agencies.

As the threats and other impact of cryptocurrencies to the economy cannot be brushed away, the ECB wants to improve its quantitative and qualitative study of cryptocurrencies.

Even though distributed ledger technology-based cryptocurrencies possess characteristics such as transparency, transactions related to cryptocurrencies make systematic data collection a cumbersome task.

This is mainly due to the lack of reliable trade information encompassing both off- and on-chain dealings, resulting in only a skewed view of the cryptocurrency market.

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.


Andrew Wright

Prior to founding in 2014, Andrew worked as a proprietary trader, then as a market maker. As a market maker, he traded options in over 100 stocks, he then began trading currency pairs in 2013. Andrew still actively trades both, and prides himself on educating and informing traders on the benefits of both Binary Options and Forex.

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