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Bitcoin Advocacy Group Coin Center: Privacy Improvements are Next Regulatory Battleground

Bitcoin Advocacy Group Coin Center: Privacy Improvements are Next Regulatory Battleground

If you’re unaware of Coin Center, they’re basically the Night’s Watch for Bitcoin and other cryptocurrencies — or at least that was the analogy used by Coin Center Research Director Peter Van Valkenburgh at the 2019 MIT Bitcoin Expo.

Much like the Night’s Watch in Game of Thrones stay on alert for the various dangers that can be found beyond the wall, Coin Center is always looking into the future to predict the next regulatory battle the cryptocurrency space will face.

After working on the potential regulatory issues around initial coin offerings (ICOs) for the past few years, Coin Center is now looking to protect privacy-focused permissionless blockchains.

The Battle Over ICOs and Securities Laws

Coin Center started working on issues around securities laws in 2014, and they eventually released an explanatory paper (PDF) of their views on the matter. In other words, Coin Center was working on this kind of stuff long before the ICO boom of 2017.

“We were really concerned most fundamentally that the SEC would confuse the distinction between a running network with something like bitcoin on it and an ICO, which quite frankly often does look a lot like a security and maybe should be regulated for investor protection like a security,” said Van Valkenburgh during a panel on cryptocurrency regulation at the 2019 MIT Bitcoin Expo.

According to Van Valkenburgh, the recommendations made by Coin Center in their paper are basically the same as how the SEC views the ICO market today. However, he also added that SEC policy could still be clarified further and codified in statutory law.

“From Coin Center’s perspective, we’ve done most of the good work that we think we could actually manage to do on that issue, and now we’re looking for that next thing,” said Van Valkenburgh.

Privacy-Focused Cryptocurrencies are the Next Battle

Coin Center is now turning their focus to the emergence of robustly private, permissionless blockchains. Van Valkenburgh specifically mentioned Monero, Zcash, and various MimbleWimble implementations as examples of these private, permissionless blockchains.

“Even Bitcoin, whether it’s through wallet software like Wasabi or whether it’s through actual changes to the protocol, will deliver on the promise of electronic cash — i.e. transactions that don’t leave a record,” added Van Valkenburgh.

“If that’s what’s coming in the next three years, there is going to be a massive decline in the amount of surveillable data related to cryptocurrency transactions,” Van Valkenburgh continued. “And that’s a very good thing if you believe in human dignity and individual autonomy, but if you’re law enforcement, that can be threatening because you worry that you won’t have the information you need to catch criminals and money launderers and things like this.”

For this reason, Coin Center has started to write about the proper policy responses to this change in the level of privacy offered by cryptocurrencies. As a general summary, Coin Center views the availability of anonymous digital cash as a free speech issue at a fundamental level (you can read more on that here).

“Perhaps an overzealous or overbroad [government will] attempt to surveil these networks through new laws or policies. Perhaps [they’ll] attempt to apply the Bank Secrecy Act (BSA) . . . to people who aren’t traditionally understood as financial institutions but maybe even directly to software developers or to the users of the networks themselves to say, ‘You’re now technical a financial institution, which means you’re deputized by the U.S. government to collect information on your counterparties and report that information to government when it’s suspicious,’” explained Van Valkenburgh.

To Van Valkenburgh’s point, there have already been rumblings of possible regulation in this area. In France, President of the Finance Committee of the French National Assembly Éric Woerth shared his view that anonymous cryptocurrencies should be banned. In Texas, a bill introduced to the Texas Legislature is threatening to break the use of cryptocurrencies in a private manner.

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The benefits of Ethereum 2.0 will come sooner rather than later according to Vitalik Buterin

The benefits of Ethereum 2.0 will come sooner rather than later according to Vitalik Buterin

Quick take

1 minute read

  • Vitalik Buterin, has recently answered a number of questions from the community as a part of a “ask me anything“ session on Reddit. 
  • The co-founder highlighted many different topics but specifically said that he expects some significant and noticeable network improvements to come for the project sooner rather than later. 

Vitalik Buterin, the co-founder of one of the biggest crypto projects in the industry known as Ethereum has recently answered a number of questions from the community as a part of a “ask me anything“ session on Reddit. The co-founder highlighted many different topics but specifically said that he expects some significant and noticeable network improvements to come for the project sooner rather than later. He further said:

“TLDR: merge happens faster, PoS happens faster, you get your juicy 100k TPS faster.”

Over the years, the network for Ethereum has experienced some significant rounds of high congestion. Three years ago in 2017, the popular CryptoKitties game slowed down the network massively but with the decentralised finance space growing rapidly, the network has been seriously clogged up.

As a result of this, it has led to high fees and longer than average confirmation times.

With Ethereum 2.0 very much just around the corner, there is a significant scaling upgrade solution that is supposedly going to speed up the network rapidly. This will increase the number of transactions per second and it will also move the blockchain to a different consensus algorithm known as a proof of stake. Phase 0 for the upgrade is set to occur on the 1st of December in two weeks!

The co-founder further went on to say that “all of these changes are designed to decrease the time until eth2 becomes useful to people.” 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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The second richest man in Mexico invest 10% of his portfolio into BTC

The second richest man in Mexico invest 10% of his portfolio into BTC

Quick take

1 minute read

  • Ricardo Salinas Pliego is the second wealthiest businessman in Mexico and the 166th richest man in the world. 
  • It was recently announced last week that he has invested 10% of his liquid portfolio into the leading cryptocurrency, bitcoin. 

Ricardo Salinas Pliego is the second wealthiest businessman in Mexico and the 166th richest man in the world. It was recently announced last week that he has invested 10% of his liquid portfolio into the leading cryptocurrency, bitcoin. This came after he shared a video throwing huge amounts of paper money into the garbage. Not only does it show how worthless the government-issued cash is in today’s world but it also shows how important digital assets such as bitcoin could become.

Furthermore, the video indicates the hyperinflation and how bad it got in Venezuela.

Ricardo is worth more than $11 billion at the time of writing and is the only billionaire from Mexico who seems to have benefited from the coronavirus pandemic and the economic crisis that has come as a result.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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Coinbase co-founder, Fred Ehrsam set to join Fireblocks as a member of the board

Coinbase co-founder, Fred Ehrsam set to join Fireblocks as a member of the board

Quick Take

1 minute read

  • Fred Ehrsam, the co-founder of the crypto platform known as Coinbase is getting ready to join the digital asset security platform Fireblocks. 
  • It was announced last week that Fred would be joining the board following a recent round of funding.

Fred Ehrsam, the co-founder of the crypto platform known as Coinbase is getting ready to join the digital asset security platform Fireblocks. It was announced last week that Fred would be joining the board following a recent round of funding.

The co-founder of the well-known crypto platform is getting ready to join the company as a board member following a $30 million funding ground to help expand its operations on an international level.

Throughout 2020, Fireblocks has launched a secure asset transfer network which would allow more institutions to efficiently transfer assets on chain. And on top of this, the platform also announced that it has seen more than $150 billion in transferred assets over the course of the past year. Fred has said:

“Fireblocks has become the go-to for any business looking to build new digital asset operations or scale existing ones… The extraordinary growth of the Fireblocks Network and its team in the last year attests to the enormous value they have unlocked for enterprise and institutional customers.”

 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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XRP Price Analysis: XRP Continues Correcting

XRP Price Analysis: XRP Continues Correcting

This analysis brought to you by RoboForex.

On Friday, November 27th, XRP has reached stability but is still correcting and trading at $0.5550.

As we can see in the daily chart, after finishing a quick rising wave, XRP/USD price is correcting to the downside. At the moment, the asset is trading close to 61.8% fibo, a breakout of which will indicate further pullback towards 50.0% fibo. The MACD histogram has broken 0 and is still moving to the upside – it may be another signal in favor of a new rising impulse. The upside target of the completion of the correction will be at 0.6800.

In the H4 chart, the cryptocurrency continues correcting to the downside. Right now, it is testing the support level, a breakout of which will result in further decline towards 50.0% fibo. The Stochastic indicator has formed a “Black cross” inside the “overbought area” and is still falling, which is an additional signal in favor of further decline towards 50.0% fibo. After completing the correction, the asset may test and break 61.8% fibo, and then continue trading upwards. The upside target is similar to the daily chart, 0.6800.

Ripple started its rally on November 20th, together with other cryptocurrencies. There are a lot of explanations of why it happened, from investors’ search for alternatives to fiat instruments to a surge in interest in cryptoassets from institutional players. Indeed, all of this really took place and, of course, expansion of the interest was in favor of cryptocurrencies. The entire market is on the rise but since “trees don’t grow sky-high”, active purchases faded to the correction.

Over this period of time, XRP has managed to update its high reached in May 2018. The asset is still moving like 80% below the highs of January 2018, when it was trading at $3.7, but investors are surely positive about further growth.

At the moment, XRP is back to third place in the list of the strongest and most popular cryptoassets.

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

 

Disclaimer

Any predictions contained herein are based on the author's particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

 

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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