Japan’s House of Representatives Pass Crypto Regulation

Japan’s House of Representatives Pass Crypto Regulation
June 4, 2019

 

After the stupendous rally seen last month, the cryptocurrency market is undergoing a slight correction. Bitcoin (BTC) fell sharply by a little more than $1000 earlier this week before recovering a portion of the lost ground to trade at 8,000 levels, representing a decline of 9.1% and 7.8% in the past seven days and 24 hours, respectively. Likewise, Ethereum (ETH) has lost 7.5% in the past 24 hours to trade at $249.25. Among major altcoins, IOTA (MIOTA) has lost 10% in the past 24 hours to trade at $0.4425. Likewise, Binance Coin (BNB) has lost 6.7% to trade at $30.45. Other altcoins which are trading with considerable daily losses include Ripple (XRP-$0.4194, -8.4%), Stellar (XLM-$0.1263, -8.8%), Cardano (ADA-$0.0873, -8.3%), Bitcoin Cash ($399.38, -10.4%), Litecoin (LTC-$105.50, -8.1%), Tron (TRX-$0.0341, -9.7%) and EOS (EOS-$6.74, -11.2%).

 

Government level initiatives

Commission to regulate Bitcoin and other crypto’s in Brazil

Brazil’s President of the Chamber of Deputies has been instructed to set up a commission to look at cryptocurrency related rule in the country. The Chamber of Deputies is a federal legislative organization and the lower house of the National Congress of Brazil and comprises of state representatives chosen once every four years. The Chamber debates and endorses suggestions for economic and social domains such as health, housing, education, and transport.

Two days ago, Deputy Rodrigo Maia, the President of the Chamber of Deputies has appealed the establishment of a special commission to provide suggestions on bill 2303/2015, which intends to regulate Bitcoin (BTC) and other cryptocurrencies in Brazil. The commission will be made up of 34 members in conformity with the House Rules of Procedure. The memo also highlights that Federal Deputy Aureo Ribeiro granted two ventures regarding cryptocurrency rule.

Earlier last week, Fernando Furlan, the president of the Brazilian Association of Crypto and Blockchain (ABCB), had a conference with other representatives of the business establishments and authorities of the Attorney General’s Office, the Internal Revenue Service, the Central Bank of Brazil and the Financial Activities Control Council.

 

New bill in Japan to monitor crypto related business

The Japanese House of Representatives has endorsed a new bill that brings about changes to national laws that oversee crypto related business. The bill, drafted by Japan’s Financial Services Agency (FSA) and approved by the House in mid-March of this year, has been ratified by a majority in the House of Councilors meeting.

The bill aims to make two changes to two national laws that govern crypto assets: the Act on Settlement of Funds and the Financial Instruments and Exchange Act. With the passing of the bill, the amendments are anticipated to become effective in April 2020.

The suggested amendments to Japan’s financial instruments and payment services laws will make cryptocurrency regulation more stringent in an attempt to encourage user safety, more efficiently oversee crypto derivatives trading, nullify industry threats such as exchange hacks, and widely set up a more open regulatory platform for the new asset class.

The bill also legalizes the term “crypto assets,” for cryptocurrencies, which were earlier referred to as “virtual currencies.”

Additionally, the bill also limits the leverage offered for crypto margin trading to between 2x to 4x the initial deposit.

 

Private sector initiatives

Ernst & Young load Nightfall Ethereum as an opensource software on GitHub

Ernst & Young (EY), one of the big four auditing firms, has made the code of its Nightfall Ethereum (ETH) private transactions tool an open source software and have loaded it on GitHub on the last day of May. The readme file, which provides the necessary information, available for download on the GitHub repository clarifies the role of the software being discussed.

“Nightfall integrates a set of smart contracts and microservices, and the ZoKrates zk-snark toolkit, to enable standard ERC-20 and ERC-721 tokens to be transacted on the Ethereum blockchain with complete privacy.”

In the same readme file, EY has released its study in the desire of quickening the embracing of public blockchains. Despite this, the release “is not intended to be a production-ready application, and we do not recommend that you use it as such.”

Alternatively, the paper warns: “It is an experimental solution and still being actively developed.”

In April, EY also published two new blockchain tools: an updated version of its Blockchain Analyzer and a zero-knowledge proof protocol.

The crypto community was outraged when government agencies came down hard on mixers, which ensure privacy and anonymity in cryptocurrency transactions.

Cybersecurity specialist and cryptocurrency enthusiast John McAfee said: “Bitcoin mixers are now being targeted. Anonymity itself is slowly being considered a crime. The word ‘Privacy’ will soon mean ‘Criminal Intent.’”

On the other hand, Vitalik Buterin, Ethereum co-founder, has suggested establishing an on-chain smart contract-based ether mixer, as per the note on collaborative development platform HackMD.

 

Raiffeisenbank builds a corporate blockchain platform

A Russian branch of Raiffeisenbank, which is a subsidiary of Austria’s Raiffeisen Bank International (RBI), has built a corporate blockchain platform. The platform aims to serve parent companies by facilitating settlements by enterprise clients without human interference. In particular, the software mechanizes supply settlement procedures between buyers and sellers, and also provides tools for financial administration.

Originally created by Raiffeisenbank at the behest of Askona Life Group, a manufacturer of sleep products, the blockchain powered platform is now being offered to the bank’s corporate customers.

Evgeniy Kirillov, investment manager at Askona Life Group, asserted that Raiffeisenbank’s blockchain tool enabled the institution to bring down labor expenses by more than 40%, as well as to reduce human error risks to zero.

Earlier, Raiffeisenbank had collaborated with Russian government-controlled oil behemoth Gazprom Neft to disburse a bank guarantee on blockchain.

Raiffeisen Bank International had recently initiated the trial of a blockchain trade finance platform built on R3 consortium’s enterprise blockchain platform Marco Polo. Prominent customers of the platform include major global banking institutions such as BNP Paribas, Sumitomo Mitsui Banking Corporation, and ING.

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.

Sammy

Sammy

Sammy is our forex expert, with over 20 years experience in the financial sector, she will be keeping you up to date with the ups and downs of currencies around the world


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