Beware of Anything to Do With Cryptocurrencies


South Africa's financial services regulators, the Financial Sector Conduct Authority (FSCA), have declared that anything to do with cryptocurrencies is suspect.

"Every con man is using cryptocurrency, so people should be very careful when dealing with anything related to encryption," said FSCA head of investigations and oversight Brandon Topham.

"Not all players on the field are [crooks], hence the need to regulate the advisors and intermediaries in that field. [So] if people are going to choose to 'invest', at least they're using legitimate suppliers."

Topham said this kind of regulation is what South Africa's financial regulators are working on.

"There are some very good developments and technologies coming from the cryptographic world, but because it has limited traceability, it is the method of choice for criminals to escape,"

Topham said

"If we can regularize the industry a little, we will have more certainty and credibility for users. It is currently free for everyone. "

Play cryptocurrencies like gambling

Asked about his statement easing "playing" in cryptocurrencies to gambling, Topham told MyBroadband that gambling may be too liberal a term.

"Speculating on an asset that has no legal basis, no legal entity to pay to the bearer and your only chance of being paid in the future is a 'hope' that someone, anyone, somewhere will give you some value for your cryptographic asset amounts to something … maybe gambling is too liberal a word."

Topham said it might be more like buying a lottery ticket than betting on a casino.

"As long as people have confidence in encryption, it may have some value, but if you look at the many cryptographic assets that have been released, failed and lost value, I think the point is clear. It's a bet. "

Topham also said that people interested in cryptocurrency should prefer to go to a casino because it is at least a regulated industry.

"A casino will play according to the rules of the rules on gambling," he argued.

"There are no rules in cryptography, so if you want to take a chance on someone who will pay you in the future, so be it."

Topham emphasizes that this does not mean that the government is seeking to ban cryptocurrencies.

"We support everyone's right to buy and use encryption. Just understand that there is no certainty as to the value you will have (or will not) in the future."

No cryptocurrency regulation in South Africa

MyBroadband also asked Topham to clarify its observations that cryptocurrencies will never be regulated in South Africa.

"Based on all the current discussions of our financial sector participants - and most countries - the crypto-assets themselves probably cannot be regulated. [That's why] people like it,"

Topham said

"However, we want to limit the risks by regulating the consulting services and intermediaries that accompany encryption."


Bitcoin Whale Issues Big Warning to Traders


A wealthy Bitcoin investor is warning the crypto community that certain digital assets may soon be attacked by government regulators.

In a new series of tweets, pseudonymous trader Joe007 highlights the news that the US Commodity Futures Trading Commission has accused three individuals who own and operate BitMEX - including co-founder and CEO Arthur Hayes - for violating various CFTC regulations, including anti-money laundering procedures.

The Justice Department has also filed criminal proceedings against the individuals.

Joe007, known for making big BTC bets on Bitfinex, says he believes regulators won't stop there, and crypto traders should prepare. He points to the new crypto asset UNI, which is the governance symbol of Uniswap decentralized exchange, as the type of currency that will likely be examined by U.S. authorities.

While some argue that UNI should be subject to U.S. securities regulations, Phil Liu, legal director of digital asset management firm Arca, says he doesn't think the asset will have that problem.

Liu says the tokens do not pass the Securities and Exchange Commission's securities test, since the network is no longer controlled by the Uniswap team. He also notes that the Uniswap team never raised money through a token offering to create the network and that only users, staff members, investors and consultants were entitled to receive uni initially.


Improve the Bitcoin payment experience


Paying with Bitcoin has been a tedious process for most of the past decade. This has made it difficult to use as a payment method, with the number of merchants accepting payments in digital currency still being quite low globally. On the first day of CoinGeek Live 2020, some of the companies that changed this narrative took the virtual stage to talk about why the customer experience is the key to adopting Bitcoin in payments.

The panel brought together Derrick Horton, the president of Anypay; Daniel Lipshitz, the CEO of GAP600; Founder and CEO of Zumo, Nick Jones and Bernhard Müller, president of Centi Limited.

One of the reasons why Bitcoin has been unable to establish itself as a means of payment over the years has been the high fees and low transaction speed. However, after being reborn as Bitcoin SV, he solved these two challenges, a critical first step, according to Lipshitz.

However, that alone is not enough, "it just takes you to the table," he added. Bitcoin developers must create applications as easy to use as their fiduciary counterparts.

Zumo is already working on the Bitcoin payment user and is about to launch a debit card in the UK to allow users to pay with digital currencies, Jones said.

"We bitcoiners like to think that at some point people will see all the benefits. But in the end, merchants and consumers don't care about that. They care about speed, simplicity, security and resources. To have more adoption, we need to take advantage of these characteristics for consumers and compete with fiduciary payment systems, "explained Müller.

Speakers also plunged into the perception that many have of Bitcoin as merely a speculative asset. This prevents many traders from accepting it as payment for fear of losing their profit margin if the price drops. Bitcoin SV is finally proving to the world that digital currency payments can be in real time at very low rates, Jones said.

Centi is going the extra mile and allowing merchants to instantly convert Bitcoin payments into their bank accounts or withdraw into a fiat immediately. This allows retailers to use Bitcoin without having to set up portfolios or worry about volatility. Zumo, meanwhile, is allowing companies to make cross-border payments and then use efficiency savings to pay their workers. Jones revealed that his team is working with nChain to build a token in Bitcoin SV to fuel cross-border payments.

While most Bitcoin payment services have been targeted by non-Bitcoiners, Anypay has taken a different angle, Horton said.

"I think the way in which adoption is through Bitcoiners. If I can make the payment experience delicious for people who love and want to use Bitcoin, then we can attract the rest of the world. Money comes into a market because it is useful for some thing ", concluded.


$1 billion in Bitcoin wrapped now being audited using Chainlink’s ‘Proof of Reserve’

Wrapped Bitcoin is now even more secure with Chainlink's oracles checking custody portfolios every ten minutes.

The wrapped Bitcoin custodian BitGo adopted Chainlink's Proof of Reserve mechanism in order to increase the transparency and auditability of the tokenized asset for DeFi protocols.

The functionality, which is currently live on testnet, allows Ethereum-based dApps to completely automate the wBTC audit load. The move comes as the amount of Bitcoin wrapped in Ethereum approaches $1 billion in value or the equivalent of more than 92,500 BTC.

The mechanism denies the need to rely on manual processes outside the chain, such as audit reports. It streamlines the process reliably and resistant to censorship, which gives more credibility and security to the tokenized version of Bitcoin.

The wrapped Bitcoin guardian BitGo announced Chainlink's collaboration on October 1, adding that this meant that DeFi applications could now receive definitive chain-mail proof of the fully supported collateralization of the wBTC.

The Reserve contract will access a decentralized Oracle from Chainlink to check the balances of bitGo custody portfolios for wBTC every ten minutes, which is the average time between BTC blocks. If there is a deviation from a defined limit, the oracle will press a chain update to refer to the new balance.

Chainlink nodes will continuously monitor the contract outside the chain, but will only update it on-chain when events change the balance, such as mining or wBTC burning. User funds can also be protected - for example, a money market can check the collateralization of the WBTC before executing a loan or loan action. The announcement added;

"This feature can be especially beneficial for decentralized applications that use wBTC as collateral to secure other digital assets."

This has the general effect of increasing the user's confidence in the asset and protecting against unexpected events in decentralized financial markets. Chainlink protocol co-founder Sergey Nazarov told Forbes:

"I think the concept of Proof of Reserve is usually really about proving that an underlying asset is somewhere in a certain state. And that proof is really very fundamental to how financial systems work."

He used the 2008 financial crisis as an example of how there was a disconnect between an asset's underlying real value and the market.

Bitcoin in its native form doesn't work well with DeFi, which is largely based on Ethereum. Wrapping it, or tokenizing it in ERC-20 form, has become immensely popular this year, as income farming opportunities have come up almost daily.

According to, there are currently 125,300 BTC, or $1.33 billion, tokenized for use on Ethereum. Of this total, which increased by 970% in the last three months, the WBTC represents 76%.


How and Why Diversify Your Cryptocurrency Portfolio?

crypto invest

Risk management and the diversification of an investment portfolio are fundamental to the success of your financial operations. Although the crypto market is still relatively young, diversifying your portfolio can be a crucial aspect of winning the battle and being part of the small percentage of investors who make real profits. What are the necessary steps to diversify your investment portfolio and what impact can the inclusion of cryptocurrency have?

Diversification: An Essential Tool to Balance Investment Risk

Experts agree that diversification is absolutely essential for investors who want to maximize the gains from their operations and holdings; from those with a long-term perspective to those who practice day-trading (trading financial assets in a single daily session).

Fidelity, one of the most important and recognized financial institutions in the world, confirms this premise. In an article on the official website, they define the concept of diversification as the “practice of spreading your investments so that your exposure to any type of asset is limited. This practice was designed to help reduce the volatility of your portfolio over time.”

Diversify a cryptocurrency portfolio

The introduction of cryptocurrencies has enabled many people outside this space to show interest and even to decide to invest in cryptocurrencies. In the strict sense of the concept, diversification refers precisely to the addition of different types of assets in an investment portfolio. However, many digital currency investors consider only leading Bitcoin and one or two other popular altcoins. Certain cryptocurrency exchange platforms have opened the door to investments with minimal capital, in some cases under $ 10. Where capital is very low, diversification loses focus, and, therefore, it is more possible to limit your portfolio to the fewest financial instruments.

Now, what is the best way to diversify with cryptocurrencies? There is no right answer. A portfolio can only consist of cryptocurrencies. If so, the investor has an implicitly high-risk profile. In other words, they are willing to lose more capital in the hope of making more profit. This is due to the volatile nature of the vast majority of cryptocurrencies. However, diversification does not lose its validity in this area. In fact, some currencies are more stable than others and it is still possible to diversify within the same type parameters.

Assess the volatility of your favorite crypto assets

If your decision is to keep only cryptographic assets in your portfolio, you should have a non-intuitive idea of how stable they are in price. Although the price of Bitcoin moves violently, Nakamoto is in fact one of the most stable assets in the industry. Other smaller altcoins register even faster and bigger changes. For example, Cardano has registered 5 times more volatility than BTC in the last 3 months, according to the analysis website “Crypto Volatile”, which calculates the volatility index according to the evolution of prices.

Determine your risk profile

The decision on how to distribute the investment capital will depend essentially on the investor's risk profile. In general, conservative investors fill more than 80% of their portfolio with more stable assets, thus reducing the possibility of losses, but also of gains. Conversely, aggressive investors allocate more than 85% of their portfolio to volatile assets with possible price changes. In any case, we suggest limiting the number of assets in your portfolio, ensuring that you can track and monitor all open positions. Each trade must have, among other things, correct risk management.

Cryptocurrencies as part of an investment portfolio

However, in order to achieve real diversification, it will be necessary to evaluate the addition of other types of financial instruments. According to the cited Fidelity article, this is essential to "balance risk and reward in your investment portfolio". They also recommend the distribution of investment assets in different classes or categories.

For this type of trading, the recommendation is to use our platform to exchange and spread your risk.

PayPal invests $17 million in startups of cryptocurrency risk control


PayPal Ventures is one of the investors at startup TRM Labs, focused on risk management and cryptocurrency compliance for the financial sector. According to Coindesk, the company raised $4.2 million, with the participation of PayPal's venture capital arm.

With the new investment, TRM, which emerged from the US accelerator Y Combinator project, now has $5.9 million in cash to tap compliance solutions for the traditional financial sector.

On the TRM Web site, the company says it was built by experts who have already gone through Google, Amazon, and universities like Harvard and Stanford.

Although it will compete with the well-known Chainalysis and Elliptic, the startup is focused only on the financial sector.

According to a statement shared with Coindesk, TRM will help financial institutions simplify customer due diligence and meet regulatory requirements.

"Financial institutions use TRM to rate the risk of their cryptocurrency-related transactions, customers or partnerships," the startup said in a statement.

The focus, therefore, is to help financial institutions combat money laundering, prevent fraud and maintain compliance - which is a set of actions to ensure compliance with the standards set by law.

Speaking to Coindesk, Esteban Castaño, co-founder and CEO of TRM, said his team is helping financial institutions think about the potential of cryptocurrencies and mitigate market-related risks.

“By designing solutions to prevent cryptocurrency fraud and financial crime, we enable this vision of building a safer financial system for billions of people,” said Castaño.

According to Coindesk, in addition to PayPal, they invested in TRM Initialized Capital, the company of Reddit founder Alexis Ohanian, and Blockchain Capital.

PayPal post Libra

PayPal recently left the Facebook Libra project, where it was scheduled to be one of the Foundation's 100 node blockchain.

As the company reported, the reason for leaving was that it needed to focus more on its own projects.

However, a report in several newspapers revealed that PayPal has begun to move away from the project due to criticism and recent regulatory issues discussed by various countries around the Libra.

However, at the time the company did not hesitate to say that it supports the initiative of the social networking giant:

"We maintain our support for Libra's aspirations and look forward to continuing dialogue on how we can work together in the future."

China undertakes campaign to combat scams associated with blockchain and cryptocurrencies


The Chinese government launched a campaign through state-controlled media to address the proliferation of scams in the name of blockchain technology and cryptocurrencies. Reports indicate that, following the recent public support from the president of that country, Xi Jinping, there was a kind of frenzy in the Chinese blockchain network market.

According to some reports from China, the CCTV television station (Central China TV), the official channel of the Chinese Communist Party (CCP), issued a report called "Blockchain is not a cash chain." The special was presented in the space of a program of a high audience, in primetime, called "Focus Interview".

The audiovisual report, issued on Monday, November 18, indicates that 32,000 projects are promoted in China that claim to use blockchain networks. However, he warns that less than 10% of these firms actually use this technology or work with it. The data is attributed to an official named Wu Zhen, head of a state-owned technological-financial laboratory, in a note on the CCTV website.

Wu Zhen said that many of these companies are taking advantage of the current boom in the concept behind blockchain to gain momentum, but in reality, their projects do not have a blockchain. Figures were also released from the National Internet Emergency Center, which Zhen directs, according to which the price of 755 types of digital currencies in China has dropped to zero and 102 correspond to pyramid schemes (ponzi).

Additionally, statements by the president of China, Xi Jinping, were included, which states that cryptocurrencies are insecure, financial fraud and ponzi schemes. The statement ratifies the “blockchain yes, no cryptocurrency” model that China has been handling, and makes it clear that the endorsement of the use of blockchain networks does not imply openness to public network cryptocurrencies.

From his Twitter account, Dovey Wan, co-founder of Primitive Ventures, noted that the Chinese president did not include Bitcoin specifically as a fraudulent cryptocurrency. "For me, it is quite clear that China has no intention of adopting any public open cryptocurrency and that is why it always has a narrative of" Blockchain, not Bitcoin, "Wan said in a tweet thread. In his opinion, it is likely that in the future the Chinese government will nationalize the infrastructure related to cryptocurrencies, such as ASIC equipment, mining and cryptocurrency trading.

For his part, the CEO of Sino Global Capital, Matthew Graham, published a tweet this Tuesday, November 19, where he reports that the government offers rewards to Chinese citizens who report illegal collection through cryptocurrencies, or through the use of blockchains. As he explained, this measure could severely affect second level exchange houses, such as Biki.

SEC’s Court Hearing on Telegram Token Delayed Till Next Year

Telegram will have to wait to make its case to the U.S. Securities and Exchange Commission (SEC) that its “gram” token is not a security. According to the latest court filing (see below), the hearing on the case has been postponed until Feb. 18–19, 2020, pushed forward from an Oct. 24. slot. The judge hearing the case, P. Kevin Castel, ruled that Telegram should not distribute its tokens before that date, and not until the court makes its decision on the case. Earlier this week, Telegram committed to delaying the launch of the TON blockchain project and gram issuance to the project’s investors until April 30, 2020, so it had time to deal with the SEC’s concerns. In a court filing and emails to TON investors, Telegram disagreed with the SEC that grams are securities, expressing frustration over the agency’s late motion to halt the upcoming late October launch. On Oct. 11, the SEC has obtained an emergency restraining order to halt the launch of TON. The hearing at the Southern District Court of New York was then scheduled for Oct. 24. As it postponed the launch, Telegram further offered investors the chance to approve the date change, adding that if the majority of gram holders disagree with the delay, they will receive 77 percent of their investment back.

LocalBitcoins Reveals Security Breach With Some Crypto Wallets Affected

Finland-based LocalBitcoins, a peer-to-peer bitcoin trading portal, says it has suffered a hack that affected a small number of users. The firm posted an update on Reddit on Saturday saying that it detected the security breach at around 10:00 UTC the same day, “which was related to a feature powered by a third party software.” As a result, the hacker was able to access some user accounts and make transactions. So far six user accounts are known to have been compromised LocalBitcoins said, adding that it is further investigating the attack to determine the exact number of accounts affected. A Twitter user posted that the LocalBitcoins forum site had apparently been replaced by a fake phishing site that stole users’ two-factor authentication (2FA) details and used them to access their crypto wallets. While this is not yet fully confirmed by LocalBitcoins, it said, “For security reasons, the forum feature has been disabled until further notice.” A Reddit user who said they owned one of the accounts to have been hit in the attack also stated: “I’m afraid to use my 2fa code for the time being until the server is confirmed secure.” “When i first tried to logon with my 2fa code there was an error then when i tried again, my wallet was wiped clean. So these hackers move fast,” they added. LocalBitcoins said “We have taken a number of measures to address this issue and secure the limited number of accounts that might have been at risk.” While the firm had disabled outgoing transactions when the breach was identified, these are now functioning again and user accounts are “currently safe to log in and use,” it said. LocalBitcoins further urged users to enable two-factor authentication on their accounts. Source:

New Zealand Crypto Exchange Cryptopia Goes Offline Citing Hack

New Zealand-based cryptocurrency exchange Cryptopia has gone offline citing a major hack. The exchange announced the news on Twitter this morning, stating that it “suffered a security breach which resulted in significant losses.” No information has yet been provided on the value of the losses, the tokens and currencies affected or any measures to refund users. The exchange’s website, including support and blog pages, is currently completely offline, with a notice stating: “Cryptopia is currently in unscheduled maintenance mode. We will be back soon.” Meanwhile, tweets from Whale Alert on Saturday indicated that 19,391 ether (ETH) tokens worth nearly $2.44 million and around 48 million centrality (CENNZ) tokens worth about $1.18 million were transferred from Cryptopia to unknown wallets on Jan. 13. It is not currently clear if those funds were moved by the hacker or by the exchange. Cryptopia further mentioned in its tweet that it has notified and involved relevant government agencies, including the New Zealand police and the High-Tech Crimes Unit, who are “jointly and actively investigating the matter as a major crime and they are assisting us with advice.” The announcement further reads:
“Until this has been carried out, The Cryptopia Exchange will remain in maintenance mode, with trading suspended. We are committed to getting this resolved as quickly as possible and will keep you all updated every step of the way.”