Tag: Regulations

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Crypto Videos

Swiss Regulators Now Allow Crypto Transactions! Another Big Step Forward!

https://youtu.be/hD7qUrB6-3I

https://youtu.be/hD7qUrB6-3I

Swiss Regulators Allow Crypto Transactions to a Local Bank – Major News

InCore bank became the first Swiss b2b bank that was approved by the financial regulators to operate with cryptocurrencies.
The Swiss Financial Market Supervisory Authority has authorized InCore bank to transact digital assets, therefore allowing customers worldwide to access as well as transact within the bank. The firm now has the ability to allow institutional clients to trade, transfer, and hold digital assets. Regulators have also allowed the bank to develop its own tokenization capabilities.

InCore announces partnership with IT crypto-asset consulting firm

Mark Dambacher, the CEO of InCore Bank, praised the decision that the regulators have made and commented:
“Our customers benefit greatly from the expansion to the new asset class without ever having to invest in infrastructure or new processes themselves. And all this while maintaining the usual security standards.”
The bank has already partnered up with Inacta AG, an independent Swiss-based consulting firm, in order to provide more information as well as crypto-asset management to its customers.

Boosting blockchain adoption within the banking sector

InCore company executives said that the bank plans to expand its strategy regarding blockchain in the coming months. They also have plans to include brokerage, custody, as well as transfer services to security tokens.
This can be a great start to Switzerland’s further adoption of blockchain technology and cryptocurrencies.

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Crypto Guides

What’s Stopping Blockchain’s Mass Adoption?

Introduction

Introduction

Introduction

Blockchain technology came into the picture with the advent of cryptocurrencies. Since the value of cryptocurrencies is increasing exponentially day by day, people have started exploring its base technology, which is Blockchain. Blockchain has a lot of use cases in various industries say Supply chain, healthcare, agriculture, energy, data storage. In spite of all the use cases and numerous numbers of projects, consortiums in action today still the technology is considered to be nascent. Any technology takes time to reach masses, but Blockchain has certain hindrances that are stopping it from mass adoption. Let’s see some of them below.

No Universal Use Case

People often compare Blockchain as a new age internet. Just as the Internet changed the world forever, Blockchain is considered to do the same in the digital world. The Internet was created to provide information worldwide with the worldwide web. It created an industry for itself and reigned it. When it comes to Blockchain, it doesn’t have an industry of its own. It surely promises enough to revolutionize most of the existing sectors, but if there were one industry of its own, then the adoption and results would have been very promising. The combination of next-generation technologies, Artificial intelligence, machine learning, Blockchain, and the Internet of things may create an industry of its own that could be revolutionary.

Complicated Usage

The technology is quite complicated to use provided its secure nature. To perform a transaction in the bitcoin network, there should be an address with a string of numbers, wallets, transaction time, transaction fees, and a lot of stuff. All this terminology is pretty new to a novice user and finds it pretty challenging to use. Mass adoption will be possible only if we educate people enough. Most of the people know about Blockchain only through cryptocurrencies, and that notion should change. People should understand that Blockchain is much more than just cryptocurrencies.

Scalability

One of the significant issues with mass adoption is scalability, i.e., the number of transactions per second (TPS). When we take cryptocurrencies, the original bitcoin blockchain processed only 7 TPS. As the adoption of cryptocurrencies increased, processing time and transaction fees increased drastically, which will discourage people from using cryptocurrencies. Visa/Mastercard supports 24000 TPS, which is used worldwide and is very reliable. Even though some platforms are claiming 40000 TPS, we should check whether they are safe enough or not.

Standardization of Smart Contracts

Smart contracts have received popularity, and many enterprises have started using the same for their business needs. But there is no standardization, and there are a lot of vulnerabilities when it comes to smart contracts. The code is not standard. There is a scope for a lot of vulnerabilities. Hence if certain standards are established like formal verification of contracts to check vulnerabilities, the security of the system increases more.

Energy Consumption Issues

It is a well-known fact that proof of work, which is mainly used in bitcoin blockchain as of today, consumes a lot of energy. Environmentalists throughout the world are entirely against it. Hence the usage of energy friendly consensus algorithms like proof of stake should be used if mass adoption is to be made. Recently Ethereum has shifted to proof of stake from proof of work, which is a welcome move.

Regulation by Governments

Finally, governments should agree or accept the trade, registrations, or any legal matter of the sort to be done in blockchain platforms. As per the government rules, if certain transactions should be done only on paper, then it is not possible to use Blockchain. Governments across the world are at least trying to regularize cryptocurrency, considering the widespread usage. Hence, technology use in other aspects should also be considered.

These are some of the reasons that are holding back the mass adoption of this amazing technology. It is important to note that there is a lot of research and development being done in this space to overcome the above-mentioned hurdles.

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Crypto Daily Topic Crypto Guides

What Are Pump and Dump Schemes in Cryptocurrency?

Introduction

Introduction

Introduction

Cryptocurrencies and the blockchain technology are relatively new to the financial markets. This makes them vulnerable to the traditional scams that used to take place on stock and some new ones. Since cryptocurrencies are not regulated by the exchange board, it makes them more prone to scam and schemes than regulated securities.

Out of the many scams around, the most common scam is the so-called pump-and-dump. It originated from the stock market, but the issue was rectified and made illegal on regulated exchanges. However, the cryptocurrency market is not immune to it.

The pump-and-dump schemes are such that they put every rise or fall in the market a question mark. So, a genuine investor would be unaware of the rise was being pumped or was shooting up for real.

The working of Pump-and-dump schemes

The actors behind the scene of pump-and-dump schemes are well-organized groups working over some private messenger. They are referred to as the inner core investors, who basically shoot up the volume of a coin by targeting a single exchange. To do so, they even take the help of whales as well. The coin under target must be of low volume so that the core can lock up as much liquidity at the price they intend. Moreover, they make sure that liquidity is relatively small.

By this, most part of the inner core investor is done. And that’s when the outer core investors kick in. These are the investors who have no clue of the planned pump-and-dump. Once the pump is implanted, all the actors in the scene, mostly the outer core investors, get buying. There are also unaware flocks who see a drastic rise and began to buy as a cause of FOMO. This drives the prices much higher and more swiftly.

Once the price anticipated by the inner core actors is reached, they step back into the business. In other terms, they initiate their dumping. Since they are the first ones to short sell, they get the best price available. Then there are the outer investors who were left scammed, sitting with huge positions looking to sell at higher prices. But the dumping brings it down. Hence, this leaves the investors harmed as well as the integrity of the coin been pumped and dumped.

The pump-and-dump has been annihilated from the stock market and other regulated exchanges. However, the haunting in cryptocurrencies or non-regulated exchanges is still in existence. With this into account, the U.S Commodity Futures Trading Commission warned people about these schemes in virtual currencies. Click the image to learn more.

Conclusion

Pump-and-dump are schemes that cannot be put to a stop in the cryptocurrency space due to its non-regulated nature. The only way to get away with it is to avoid trading cryptos with very low liquidity and low volume. Or you may research the coin on its rise and fall and predict if the move is real or just an illusion.