US Government Officials Must Disclose Crypto Holdings

The U.S Office of Government Ethics has moved towards creating transparency in government officials cryptocurrency holdings.

Those working for the executive branch of the U.S. government must disclose their cryptocurrency holdings, ethics officials said Monday.

In a legal advisory released Monday, the U.S. Office of Government Ethics (OGE) clarified that cryptocurrency is "property held … for investment or the production of income" instead of a "real" currency or legal tender. As a result, the OGE will now require executive branch employees to report holdings of digital currencies because they "may create a conflict of interest for employees who own it."

The disclosure requirement is a major move, requiring members of the U.S. executive branch – officials working for the White House as well as the galaxy of federal agencies – to reveal their crypto holdings. Earlier this year, a member of the U.S. Congress submitted a petition seeking similar requirements for federal lawmakers.

The OGE's document also specifically...


‘A Moral Hazard’: Bank of Korea Opposes Central Bank Digital Currency

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The Bank of Korea (BoK) has revealed it is against the idea of issuing a central bank digital currency following a feasibility review.

South Korea’s central bank isn’t keen on issuing a central bank digital currency (CBDC) citing concerns related to its impact on the basic mechanics of monetary policy and implementation as well as the bank’s influence on open market operations, a report released on Monday revealed.

As reported by the Korea Times, the BoK is also concerned about costs related to issuing a digital currency alongside the potential ‘moral hazard’ it could cause. Pointedly, BoK researcher Kwon Oh-ik at the central bank’s economic research institute argued that a central bank digital currency would ‘destabilize the market order’ by claiming digital currencies do not function as money.

The researcher said in the report:

We reviewed the possible feasibility of digital currencies as currency; however, our thoughts are that digital currencies have been exposed to various categories of risk associated with credit, liquidity...


A Japanese Village Is Planning Its ICO

A small Japanese village is turning to cryptocurrencies in an effort to bolster its economy.

Nishiawakura – a village of approximately 1,500 people in the Okayama prefecture in Japan – revealed its plan last week to launch a regional initial coin offering as a way to secure funding. The municipality, in particular, relies on forestry to support its economy - about 95 percent of the town is made up of forest area, according to the village's official announcement.

Nishiawakura Coin (NAC) will be issued by Nishiawakura's Token Economy Association. While the launch date has not yet been released, some details about the coin can be found on its official website.

The village launched the...


Escalation Overflow

Hi Everyone,

Financial markets appear to be reacting to the latest escalation in the trade war between the U.S. and China.

It now appears that the United States may have the upper hand due to the wide trade imbalance between the two nations. Indeed, it would be very difficult for the Chinese to find $200 billion worth of US imports to curtail.

Under the circumstances, I guess you could say that markets are holding up pretty well, as we’ll see below. Even though the declines are sizeable, this doesn’t come close to the volatility we saw in February.

President Trump’s approval ratings are now as high as they’ve ever been despite outrage over recent hardline anti-immigration actions that saw authorities separating more than 2,300 children from their parents.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Stocks Minor Sell-off
  • What Brexit Negotiations?
  • Crypto Off the Lows (Focus on ETC)

Traditional Markets

Looking at the financial markets today it seems there is a bit of fear creeping in.

The Chinese stock market is down 3% and the Japanese market isn’t far behind with losses of 2.5%. Though these are quite substantial movements for any stock index, by putting things in context on the long-term chart we can see that it’s not the end of the world.

Please notice how in February, before the whole trade tensions began, the stocks experienced a much sharper sell-off.

On this chart of the VIX we can also see that even though volatility spiked yesterday, it’s still way below the levels seen...


Decentralized Asset Management Network RigoBlock Partners with TokenMarket

RigoBlock

Lugano, Switzerland - June 19, 2018 - RigoBlock, the decentralized asset management protocol that allows users to create and run a fund on the Ethereum blockchain, has announced its partnership with leading ICO advisory firm TokenMarket. The recently announced relationship comes as part of RigoBlock’s aim to roll out its blockchain infrastructure programme later this year.

The Rigo token, which is built on top of the RigoBlock platform, allows users to: establish a meritocratic and incentives-based framework for traders, separating the fee logic from the funds and create an incentive mechanism on top of the token. All of these elements will allow the Rigo token to become easily accessible and more cost effective for traders to use, which aims to reshape the $63 trillion dollar asset management industry.

TokenMarket will deliver a set of building blocks in order for the RigoBlock project to run smoothly. These include: token issuance and creation, marketing, PR and community management, as well as providing its award winning advisory services to the RigoBlock team.

We are very excited to be working together with TokenMarket to ensure that RigoBlock can be a success” Gabriele Rigo, CEO and Founder of RigoBlock, said. “TokenMarket’s experience in this industry is second to none and we are pleased to be working together” Rigo stated....


The Rise of Cryptocurrencies Securities Lawsuits

OPINION

Op Ed: The Rise of Cryptocurrency Securities Lawsuits

As the cryptocurrency market develops and grows, cryptocurrencies have become the subject of an increasing number of securities lawsuits. This year alone, more than 10 cryptocurrency securities lawsuits have been filed in federal district courts throughout the country.

While regulations and laws governing the cryptocurrency market continue to develop, recent activity involving cryptocurrency has raised a host of questions concerning investor protections. As federal and state regulators and policymakers grapple with how to regulate digital currencies, some investors have sought protection through securities lawsuits.

Based on the number of lawsuits filed to date and the recent decline in the price of cryptocurrencies, such litigation will likely increase in volume in the coming year. Investors should be aware of recent cryptocurrency case law to safeguard their rights and preserve their legal remedies. A selection of recent securities lawsuits against five cryptocurrency companies is highlighted below to illustrate some of the typical cases in which investors have found reason to pursue legal action against cryptocurrency companies.

Longfin Corp., a global cryptocurrency company, was a “pure stock scheme.” On April 9 and April 19, 2018, two classes of investors sued Longfin and its top officers for allegedly violating Sections 10(b) and 20(a) of the Securities Exchange Act. The investors allege that Longfin misrepresented the location of its primary offices and the identity of key employees in its public statements; had numerous material weaknesses in its operations and internal financial reporting controls; and was ineligible for inclusion in certain stock indices.

The investors allege that when this information was made public, Longfin’s stock value declined more than 86 percent in two weeks. The investors are attempting to recover damages associated with the decline in stock value.

Takeaway: This case is an example of a cryptocurrency company’s shares plummeting after company executives disclosed financial information to the public. Prospective investors should be wary of giving too much credibility to unsubstantiated statements made by cryptocurrency companies and should be selective when determining the trustworthiness of sources.

Nano: Danger of Foreign Exchanges and Hacks

Nano, a U.S.-based blockchain developer and cryptocurrency issuer, was involved in a hack scandal. On April 6, 2018, a class action was filed against Nano and its key officials for allegedly violating federal securities laws.

The complaint alleges that Nano engaged in an unregistered offering and sale of securities by issuing cryptocurrencies on BitGrail, an Italian cryptocurrency exchange, in violation of Sections 12(a) and 15(a) of the Securities Act. The complaint also alleges that Nano wrongly encouraged investors to invest assets with BitGrail, which lost $170 million worth of the cryptocurrency “XRB” due to a hack on the exchange platform. The investors are asking for, among other relief, rescission of their investments.

Takeaway: This case is noteworthy because it illustrates the vulnerabilities of cryptocurrency exchanges and their susceptibility to theft. To protect cryptocurrency investments from possible hacks and cyber theft, investors should take a number of precautionary measures, including closely examining where funds are being held and inquiring about the security controls in place to prevent potential hacks.

Giga Watt: Mismanagement Allegations

Giga Watt, a U.S.-based cryptocurrency startup, was a promising venture that was arguably mismanaged by its founder. On , an investor sued Giga...


A Comparison of Digital Transformations: Blocknet and Evernote

This is a submitted sponsored story. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content below.

Blockchain technology. The Evernote app. Two completely different worlds, right? Well, there might be a whole lot more in common than you may think. Before the internet took an irreversible hold on the world, digital note-taking took place on simple programs like Notepad. Notes could be easily taken and saved onto your local—but isolated—machine. As the internet grew, the need to access this type of saved information across multiple devices soon became vital. Eventually, Notepad was usurped by the Evernote app, which utilized the power of “the cloud.” Evernote allowed notes to now become accessible across multiple devices and via peripheral services, including Quickbooks, Dropbox, Google Drive and many more.

As the internet opened the door to a new wave of cloud applications—just like Evernote—Blocknet is creating an internet of blockchains for a new generation of decentralized applications that can interconnect any blockchain to another. Blockchains today are at the cutting edge of technology, yet their isolation is similar to that of the original Notepad app. Specifically, there’s an obstacle that needs to be tackled: blockchains can only communicate with themselves and cannot communicate with any other blockchain. Data cannot be transferred between blockchains. This places enormous limitations on what blockchain technology (as a whole) has the potential to achieve. Blockchains need to evolve in the same way that Notepad lead to Evernote. Blockchains should be able to freely and effortlessly connect with any other blockchain.

The Internet of Blockchains

Blocknet has built an interoperability infrastructure that enables blockchains to connect with one another, creating an “Internet of Blockchains.” The Blocknet protocol gives blockchains the ability to communicate, opening the door for cross-chain applications. By allowing blockchains to integrate with each other, directly chain-to-chain, without being a middleman to the data itself, the Blocknet protocol gives any application the ability to utilize different blockchains. In addition, the Blocknet protocol offers a solution to the issue of...


Crypto Critics Ignite After EOS Blockchain 'Freeze'

You may have missed it, but over the weekend, transactions on the live EOS blockchain came to a complete – yet temporary – halt.

Coming less than 48 hours after the much-anticipated blockchain network went live, the announcement kicked off a social firestorm (not to mention a reported 5 percent drop in the value of the network's cryptocurrency).

Some background: the EOS launch, reported last week by CoinDesk, came at the end of a topsy-turvy period illustrated by last-minute code tweaks, an elaborate election of entities tasked with creating the network's transaction blocks, and, of course, the $4 billion EOS token sale.

So, it came as a surprise to some that the network would run into enough trouble that it triggered a failsafe network freeze. And unsurprisingly, critics of EOS were quick to pounce.

A patch to fix the issue was released and implemented less than five hours later.

However, in the fast-moving world of crypto, there was already damage done to the network's reputation.

That's not to say that EOS didn't have any commentators – or outright supporters – going to bat for it during the weekend debate. From a more supportive perspective, the weekend stoppage was seen largely as a growing pain and a symptom of a network controlled by no single entity, still getting its bearings so soon after...


Accounting Blockchain (TAB) Token Sale

Accounting Blockchain (TAB) ICO

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The future of accounting, saving businesses billions and sparing the individual sole reliance on expensive accountants.Integrating blockchain into the industry streamlining the supply chain, saving money to businesses, and moving towards a healthier economy away from the risk of fraud and away from present gross accounting inefficiencies.

Owning TAB tokens gives access to three solutions to 3 problems in dire need...


Colombian Cryptocurrency Exchange Won’t Go Down Without a Fight

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Colombian crypto exchange won t go down without a fight

In an unregulated crypto environment task of managing a crypto exchange is one of the hardest ones. One of the prerequisites for successful crypto exchange is a good cooperation with a traditional bank. This is a must-have for the exchanges as they need to have some sort of official bank accounts in order to regulate their money flow. In Europe, there are certain regulations and banks are starting to build business relationships with crypto exchanges which are a great sign. European crypto exchanges at least know what to expect, there are no unpleasant surprises dealing with the European banks. Unfortunately, this is not the case in other parts of the world.

Buda to challenge Colombian banks

Buda, one of the biggest crypto exchanges in South America recently encountered problems after three major banks closed their accounts without giving an official notice, as CoinIdol reports. Buda’s director Alejandro Beltran noted that crypto exchange is doing everything in their power to get back their closed account and resume working.

Buda is a crypto-to-crypto exchange with 35,000 accounts in Colombia and over 45,000 in Chile, Peru, and Argentina. Being that large, Buda represents one of the pillars of the crypto community in South America. Buda's director...