Friday, February 21, 2020

Binance is not authorized in Malta / Research: Lightning Network is becoming "centralized" / Belgium updates crypto blacklist

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Market Watch: Coin prices are in the green today, ending the work week on a positive note. Lesser-known coin iExec RLC is enjoying a rise in value, jumping over 20 percent in 24 hours.

  • Bitcoin: $9,704 (⬆️ 1.48%) // $176.9 billion market cap.
  • Ethereum: $266 (⬆️ 4.59%) // $29.2 billion market cap.
  • XRP: $0.276 (⬆️ 2.38%) // $12 billion market cap.
  • Bitcoin Cash: $384 (⬆️ 5.18%) // $7 billion market cap.
  • Top 100 Winner: iExec RLC: $0.717 (⬆️ 21.95%) // $57 million market cap.
  • Top 100 Loser: Lisk: $1.51 (⬇️ 3.74%) // $184 million market cap. 

Prices are as of 3:30 p.m. ET.

1. The Malta Financial Services Authority (MFSA) has issued a statement saying that crypto exchange Binance is not authorized by the financial regulator to operate in the country. The MFSA highlighted that a recent media report, which is doesn't list, had incorrectly said that Binance was a "Malta-based cryptocurrency company." The regulator went on to add that the exchange has not received approval from it to operate in the crypto space and is "not subject to regulatory oversight by the MFSA." The notice said that the regulator will assess whether Binance "has any activities in Malta, which may not fall within the realm of regulatory oversight." One example of Binance being referred to as a Malta-based company can be found on publications like Malta Today. -MFSA

2. A research paper has found that the Lightning Network, a second-layer payment protocol on the Bitcoin blockchain, is becoming "increasingly centralized." That's according to researchers from Canada, France, Italy, and Switzerland. Over a period of 18 months, from Jan. 14, 2018, to July 13, 2019, the team gathered information on the network, which saw it reaching 8,216 users, 122,517 active channels, and 2,732.5 transacted Bitcoins. The researchers analyzed the node and wealth distribution of the payment network. They found that there were high Gini coefficients regarding node centralization and wealth distribution. The amount of Bitcoins across the nodes was found to be "very unequal," with the Gini index totaling to 0.88. This amounted to around 10 percent of nodes holding 80 percent of Bitcoin. -ARXIV

What do you make of this? Considering Bitcoin was created to be a decentralized network, do you think this will have an impact on the development of the Lightning Network? Hit reply and let me know. - Rebecca

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3. Follow Friday: Demetrios Zamboglou, Ph.D.

Zamboglou is chief operation officer at BABB, a decentralized platform that uses the blockchain and biometric technology. The aim of the organization is to deliver decentralized banking services that are designed to empower the global microeconomy.

Described as a "top-level blockchain executive," Zamblglou is noted as being an entrepreneur with extensive experience in emerging markets. He has also completed multiple award-winning research projects from the likes of Amazon and Microsoft.

Some of his tweets include a minor decline in Bitcoin's price, a top-five crypto summary, and crypto industry news.

You can follow him on Twitter @zamboglou.

4. Belgium's Financial Services and Markets Authority (FSMA) has added new crypto-related companies to its blacklist. In an announcement today, the FSMA states that over the last few weeks, it has continued to receive complaints from customers who had responded to fraudulent investment offers in crypto. Due to the fact that fraudsters continue "making victims in Belgium," it has updated its crypto blacklist, bringing the total to 141. Recently identified websites include:

  • www.man-investments.com
  • www.mgclogic.com
  • www.mycoin-banking.com

The FSMA states: "The principle remains the same: they offer you an investment they claim is secure, easy and very lucrative. In the end, the result is always the same: the victims find themselves unable to recover their money." -FSMA

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5. Changpeng Zhao, CEO of crypto exchange Binance, doesn't think Bitcoin's price has been priced in yet for its upcoming halving reward. In an interview with BlockTVNews, the founder said: "I personally believe the halving has not been priced in." Zhao went on to note that, historically, block reward halvings for Bitcoin have been positive for its price. Continuing, he added that in the future, there will be more upward movement with Bitcoin's value, due in part to the fact that there will be a lower Bitcoin block reward and less inflation. -BLOCKTVNEWS

6. A former cannabis grower from Dublin, Ireland, has lost the codes to his $56 million Bitcoin fortune. According to a report, Clifton Collins, who started purchasing Bitcoin in 2011 and early 2012 with the money he made growing cannabis, printed out the codes for his 12 accounts on an A4 piece of paper. He then hid that information in the cap of his fishing rod, which he kept at his home in Co Galway. As a result of his arrest, he was jailed for five years. During that time, there was a break-in at his home, in addition to a clear-out on behalf of the landlord, with many of Collins' things taken to the dump. Workers at the dump told police they remember seeing fishing gear; however, waste from the dump is sent to Germany and China to be incinerated and the fishing equipment has never been found. -THE IRISH TIMES

7. An increase in unregulated crypto betting companies is posing a threat to horse racing firms in Asia. According to Hong Kong Jockey Club's executive director of racing integrity and betting analysis Tom Chignell, unregulated markets open the door for race-fixing and it's up to racing authorities to monitor them as they would legal ones. -THE SOUTH CHINA MORNING POST

8. E-commerce giant Shopify has joined the Libra Association. According to an announcement from the company, the Canada-based firm will be working on building "a payment network that makes money easier to access and supports merchants and consumers everywhere." With more than one million merchants on its platform, Shopify states that its "mission has always been to support the entrepreneurial journey" of them. Its entrance to the Libra Association comes after several major companies such as Mastercard, Visa, and PayPal have left the project, citing regulatory uncertainty. -SHOPIFY

9. Jemma Green, executive chair and co-founder of Australian blockchain energy firm Power Ledger, has said that you need "a miracle" to succeed with an initial coin offering (ICO) in Australia. Even though her company is one of the 1 percent that has succeeded in the country, Green said that "it's really kind of a miracle that we exist in the first place." In her opinion, there could be many more miracles "if we actually set the tax regulation around ICOs to be fit for purpose." -ZDNet

10. The IOTA Foundation is recommending that users of the Trinity Wallet change their passwords and use the seed migration tool to protect their assets. According to a tweet from the foundation, users who opened or updated their wallets between Dec. 17, 2019, and Feb. 18, 2020, may be vulnerable. -@IOTATOKEN/TWITTER

This newsletter was written and curated by Rebecca Campbell. She has been writing and reporting on various industries for the past 10 years, more specifically tech in the last three. Connect with her on Twitter.

Edited by Beth Duckett, staff writer at Inside.

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