In the aftermath of the recent hack within the Japanese cryptocurrency exchange, the Japanese FSA has issued a warning to Lastroots cryptocurrency exchange to improve their business practices or suffer the risk of being sanctioned, while FSHO and Eternal Link have both been ordered to cease operation for two months. The suspension according to Japan’s Financial Security Authority issued was due to the unsatisfactory procedures of these exchanges to prevent money laundering and minimise system risk.
The ongoing inspections of cryptocurrency exchanges are what lead to the discovery and also the suspension. According to Reuters, Eternal link were ordered to halt every activity from Friday 6th April while FSHO will do likewise on the 8th of April.
This suspension does not come as a surprise as Nagoya-based Bit Station and FSHO were suspended till April 7. They were suspended for not performing proper and thorough checks on large-scale transactions and had not implemented necessary measures “to run the exchange in a decent and assured way”.
Asides from maintaining proper checks, Bit Station were penalized because it was discovered that some of its senior officials were implicated in an embezzlement scam which involved clients cryptocurrency deposits. Similar scrutiny has led to the arrest of high ranking officials of two cryptocurrency exchanges.
This level of scrutiny, regulations, stiff penalty emanated from the attack on Coincheck where hackers stole $550 million worth of NEM from the Japanese exchange
According to the Japanese press, Bit Station was penalized because its senior officials were implicated in the embezzlement of clients’ crypto deposits. Similar charges have led to the arrests of four high-ranking representatives of two cryptocurrency exchanges in South Korea.
Japanese authorities have decided to set up a system which major focus of combatting cybercrime, including crypto theft. 500 analysts and investigators from different branches of the country’s law enforcement agencies have joined the unit. At least 149 crypto-related attacks took place in 2017, Japan’s National Police Agency recently revealed.
Earlier this week, after passing through the necessary checks and approval, Monex group was able to acquire Coincheck worth in excess of $33.6 million USD.
Monex confirmed that it will acquire 100% of all 1,775,257 shares. The agreement which was signed today would see the transfer of shares take effect from the 26th of April with Coincheck founder and chief executive Koichiro Wada and chief operating officer Yusuke Otsuka to step down from management on the same day after taking responsibility for the $530 million theft of NEM tokens in January.
This reshuffle will also see Monex COO take over as president of Coincheck and with other prominent members joining the board. In a statement, according to CCN.COM
“We recognize blockchain technology and cryptocurrencies as next-generation technologies and platforms which are likely to drastically change the way people approach money,” Monex said. As the fifth-largest retail stock brokerage by transactions in 2017, the company began to explore and develop blockchain applications by establishing the ‘Money Cryptocurrency Lab’ in October 2017 as a means to get a proactive leg-up by embracing financial technologies.
Also in the statement, the brokerage has pledged its support to build a secure and safe Coincheck trading platform for all its customers in order to avoid any incident similar to the NEM theft, insisting that it would employ its expertise and human resource in risk management, administration and customer asset protection system against hacks.
The goal is to provide and support our customers in any way possible and to re-establish the trust and confidence in the firm and also grow sustainably as a valuable cryptocurrency exchange, Monex added
This takeover would be one of the biggest takeovers within the industry since its inception and with the recent rise illegal crypto mining, false affiliations and hacking, this deal would breathe a sigh of relief to the Japanese exchange market and restore credibility.
Zambia’s Central Bank Declares, ‘Cryptocurrencies are not legal tender’
Zambia is just making its entrance into the blockchain space. However, the Southern African country is taking a different approach. The Zambian central bank has declared that cryptocurrencies aren’t legal tender. The decree which was issued on October 12 cautioned those transacting in digital currencies as they will have no one but themselves to blame if the market should fail. Also, the Central bank of Zambia is trying hard to promote the value of its local currency, the Kwacha which appears to be depreciating in value.
Similar to most African countries, the Bank of Zambia (BoZ) does not have any authority nor regulatory framework over cryptocurrency investments or trading. For the BoZ to have any say over the cryptocurrency industry, it would need legal backing. This means that the parliament will have to amend the law to enable the BoZ have any authority over the cryptocurrency industry.
The Zambian central bank issued a statement on Friday warning people about the risk of investing in cryptocurrency. The BOZ claims that it has observed the alarming rate at which interest in cryptocurrencies is growing through the enquires they have received on the subject. The statement released by the BOZ explained that although cryptocurrencies have some of the characteristics of money, such as being used as a means of payment, cryptocurrencies are not legal tender in Zambia.
The statement explains that the interest of the people and the integrity of the financial system in Zambia had to be maintained. The BoZ listed the following as the reason why cryptocurrency cannot be considered legal tender. For one, the BoZ bears the exclusive rights to issue notes and coins in the country according to Section 30 of the Bank of Zambia Act. Since the BoZ has not issued any cryptocurrency, they cannot be classified as legal tender.
Also, since the BoZ does not have a regulatory framework for cryptocurrencies, “the usage of cryptocurrencies are performed at owner’s risk.” The BoZ went on to list the risks associated with cryptocurrency usage. It adds, “Some of these risks include money laundering, financing activities of terrorism and general consumer protection risks such as fraud and hacking, to which in most cases, no legal recourse would be available to customers due to the unregulated nature of cryptocurrency-related transactions.”
What do you think about Zambia’s stance on cryptocurrency? Share your opinion with us in the comment section below.
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Huobi’s Global Elite Program Offers 2BTC Incentive to Members Who Introduce Eligible Candidates to The Program
A referal bonus of 2 BTC awaits anyone that introduces a candidate that gets accepted into the Global Elite program. Influencers of the world’s largest blockchain company, Huobi has announced earlier that eligibility into the new Huobi Global Elites program had been reopened. The Huobi Global Elites program is the company’s way of boosting the development of its partners in strategic locations. As a result, Huobi is offerings a variety of incentives including a 2BTC Referral Fee to those who introduce Huobi to Global Elite candidates who are successfully integrated into the program starting from this month.
Huobi Elite Alliance program offers its members a wide range of benefits including referral bonuses, business collaboration, and business networking initiative. The program which had its third launch on september 19 is now officially opened. With members in more than 20 countries, the Huobi Global Elites program aims to liase with top blockchain influencers, and other fintech industry. Members of the Huobi Global Elite program also get incentives for referring new members to Huobi. The referral bonus can be as high as 40% of the trading fees Huobi earns from that business (+ bonuses granted in Houbi Token).
Why You should be a Huobi Global Elite
Asides earning referral bonuses, members of Huobi Global Elites have a variety of benefits awaiting them. Members get the opportunity to network with other members of the Huobi Global Elite program around the world, both online and in-person. They will also get unlimited access to research and news sources and information before it gets to the public. These sources will include Huobi Research, Huobi News, Huobi Capital, Huobi Labs, and the Huobi Ecosystem Fund. Equally, members have the opportunity of collaborating with Huobi or institutions in investment recommended by Huobi. Members of Huobi Global Elites also get the privilege of participating in in-depth business training and global conferences of Huobi.
Qualities of a Good Candidate for the Program.
Global Elites should be top blockchain influencers, cryptocurrency and blockchain enthusiasts, or have access to reliable blockchain resources. Bitcoinexchange listed the qualities of a Global Elite to include a blockchain and crypto assets enthusiasts, someone with notable experience in managing large teams and a reasonable understanding of the brokerage sector and legally compliant to local regulations. Also, a candidate with 3 referrals from reputable and experienced blockchain experts is eligible for the program. Candidates who are interested and eligible to be Global Elite candidates can contact http://bit.ly/HuobiGlobalElites.
The Information provided on the website is designed to provide helpful information regarding blockchain and cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading.
British Pound-Backed Stablecoin to be launched in the London Block Exchange
LBX CEO Benjamin Dives
Driving adoption of cryptocurrency in any economic state is not as easy as it sounds. With the recent state of things happening in the space a lot of kudos would have to be given to LBX for such huge step it is taking in launching the first ever Pound-backed Cryptocurrency.
The London Block Exchange has most recently made known her intentions to launch the LBXPeg which is also known as “stablecoin”. In a recently published article by Business Insider on the 29th of September 2018, the said Exchange was permitted by their banking partner to move forward with the project. This would be backed by UK’s Sterling reserves with one-for-one ratio and held in an account at the third party bank.
LBX’s latest plans are fueled by the high activity rate and interests in “stablecoins.” These are cryptocurrencies where the price is pegged to real-world assets, usually the dollar like in the case of the Tether. This simply is to give cryptocurrencies what is called price stability of a mainstream currency while also still retaining their compatibility and digital nature.
Benjamin Dives, with the help of a Professional Accounting company, plans to introduce auditing of the UK Sterling reserves as part of ways to ensure transparency. In his speech, Dives showed great confidence in the LBXPeg Stablecoin and assured that minting of the token would be in ten days.
Amongst the 50 stable coins, LBXPeg is proud to be the first coin pegged to the British pound and this affords it specific regional advatages over existing stablecoins . In addition, the use case of the new cryptopound would be for OTC trades in the london market and also in commonwealth exchanges where there do not have fiat banking and then securities token who want to pay dividends in a cryptopound.
We are not at Home with Cryptocurrency – CBN Governor
Taking further steps in openly stating its non-acceptance of cryptocurrency, the CBN Governor, Godwin Emefiele, who was represented by the Director Banking and Payment System Department, Dopo Fatoku, gave a rather interesting speech at the Vanguard Economic Forum Series on Financial Technology (FINTECH), Lagos.
In his speech,the CBN governor pointed out and I quote “Blockchain is a distributed Ledger Technology and we are at home with it and we know that it could be used for many good things especially in the financial services and industry.
But further in his speech, he then gave his reasons why the authorities were not in support of Cryptocurrency (one of the products acively used on the Blockchain). Among His reasons were that there is no issuing authority and according to him, this was a major challenge for Regulation. He backs his claim on notions that the supposed researches done by the English, Canadian and Monetary Authority of Singapore do not approve the use of Cryptocurrency for Central Banks.
Meanwhile the members and analysts from Blockchain Association of Nigeria (BAN), in a closed group conversation had a lot to say about this.
Mr Chimezie Chuta, coordinator Blockchain User Group Nigeria debunked the news above stating that this was not the official position of the CBN on cryptocurrency. He begged to question the authenticity of the publication.
Meanwhile, Mr Eze a member of BAN obviously opined that not having an issuing authority is the main idea of the crypto adding that it is a plus and that the idea of decentralization is what the Blockchain stands for. He takes solace in the fact that disruptive technologies never had Government endorsement not failing to add that the CBN Governor needed genuine education on the subject matter as all his statement reek with ignorance, biased information or pure mischief.
Also, Chimezie Chuta went ahead to point out that this could not be true as CBN recently did an internal restructuring that separates Banking from payments systems. Blockchain and its associated techs fall into the later. Even though the opinions from the former remains legit, it carries less weight. In his lengthy speech he said that official positions begin with an official definition, which the CBN are yet to give. Hence the need for clarification.
So in Chuta’s opinion, the remarks does not have CBN’s support. Another question is do the CBN really believe that the current players in the crypto space of Nigeria are small and insignificant?
The chief initiator of the conversation, Senator Ihenyen in trying to bring the house together, asked these questions;
Is CBN manipulating Nigerians About cryptocurrency through the use of media?
Is the media manipulating Nigerians about crypto by misquoting CBN or is it that some big interested persons are manipulating the media about cryptocurrency?
The answers to these questions vary from opinion to opinion but the summary remains that whether or not there is manipulation, the sole possible reasons for this could be because no one wants to be held directly responsible for the direct outcome which a clear statement will bring. Thus, ambiguity is the choice of all playing parties.
The questions still remains, if this were to be the case, when would the talks for regulation gain footings in the Nigeria economic market?