Welcome to the Crypto Weekly Update, where we organize all the crypto news from the previous week for your reading pleasure. The Crypto Weekly Update will be released every Monday afternoon. Think we can improve? Let us know in the comments section below!
Japan Wants Cryptocurrency Exchanges to Ban Privacy Altcoins
Japan’s Financial Services Agency (FSA) wants local cryptocurrency exchanges to de-list privacy altcoins such as Monero, Zcash, and Dash.
Japan’s FSA claims these privacy coins support the “criminal underworld.” It appears the FSA is “taking all available steps to pressure domestic trading platforms to drop support for altcoins that tout the ability for users to make anonymous transactions.”
This is an interesting development to say the least. The fact that a national governmental agency is starting to attack privacy based altcoins should come no surprise to anyone. Governments must hate these cryptocurrencies since these privacy coins make it harder, if not impossible, to track transactions on the blockchain network. Governments also hate the idea that criminals can be using these cryptocurrencies to move illegal money. Although nothing has occurred yet, the crypto-community should follow this as it may set a precedent in the future.
Venezuela Certifies 16 Cryptocurrency Exchanges
Nicolas Maduro, Venezuela’s President, recently certified 16 crypto exchanges. Maduro also announced the end of Petro’s pre-sale. Petro, the country’s national cryptocurrency, raised nearly 3 billion dollars during the pre-sale.
Maduro stated, “The certification of these 16 exchanges is a demonstration of confidence in the system of the Petro, as a cryptocurrency, and will allow liquidity and solid transaction volume.”
In addition, Venezuela offered India a 30% discount on all crude oil purchases if India uses the new Petro cryptocurrency. This is another example of how cryptocurrencies are spreading in the world and the different blockchain use cases which are emerging.
The end of ICOs?
Initial Coin Offerings was all the buzz in 2017 for new cryptocurrencies trying to raise capital. However, ICOs now have a negative connotation due to all the attempted fraud schemes. The process is now being re-branded as a “security token offering” or STO.
Overstock CEO Patrick Byrne said “The ICO craze of last year created a toxic waste dump of financial assets. To me, that world of ICOs is a Superfund site… What we’re developing is a mechanism so that there will be a legal way to go forward and not create any new toxic waste.” Byrne continued, “The industry is distinguishing very clearly now between ICOs and STOs….It is a very clever offering, and could represent a whole new model for American entrepreneurship.”
This is a great sign for the community to see new tokens act responsibly and trying to set a standard in working legally with regulators. It is a big step in the right direction for the technology and future of cryptocurrencies.