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Peru’s Central Bank Warning: Will it Affect South America’s Cryptomarket?

  By David Drake   Some South American countries have widely accepted the use of cryptocurrencies more than others. The cryptomarket growth in this region has been linked to the need for citizens to find ways to make ends meet. Peru has experienced an increase in the use and trading of virtual currencies and is positive about its prospects. However, the Central bank in Peru has warned that cryptocurrencies, due to their unpredictability and unstable nature, are risky for investors. The bank outlined that the value of virtual currencies is not based on tangible assets, but on the trust of individuals, hence their uncertainty. The bank also noted that virtual currencies are used in illegal activities such as terrorism, money laundering and are also vulnerable to fraud. But how is this warning likely to affect the growth of cryptocurrency market in Peru and South America in general? Qupon‘s CEO, Joseph ... Read More »

Can South America Achieve Sustainable Cryptocurrency Growth?

  By David Drake   For a long time, the financial sector has largely remained unchanged, but this may no longer be the case. Cryptocurrencies are slowly but surely making headway towards transforming the way transactions are carried out significantly. For instance, companies such as Microsoft are accepting cryptocurrencies as payment for goods and services offered. The inherent benefits of low transaction costs and faster transaction speeds offer value to cryptocurrency users, compared to the current financial system. Before global acceptance can be achieved, conventional financial institutions need to start integrating the new technologies into their systems. But this might not be happening in Peru as yet after the country’s central bank issued a cryptocurrency warning. The Status Quo In its Twitter account, the Central Bank of Peru stated that digital currencies are very volatile, are being used for illegal undertakings and are vulnerable to fraud incidences. For these reasons, ... Read More »

Top 3 Ways to Attract Institutional Investors to Crypto Assets

  By David Drake   KPMG, a Big Four Audit Corporation, issued a report on last month agreeing, to a large extent, with the sentiments of other bullish investors that are already circling. According to the company, ignoring cryptocurrencies now is somewhat an impossibility. While institutional investors have remained on the fence regarding this nascent asset class, KPMG, in its 42-page long report, stated that this risk-averse group will likely embrace cryptocurrencies. For this company, it’s no longer a matter of whether or not the big players will hop on board. It is more of what governments and other key industry players should do to make this happen. The Necessary Action One of the major reasons institutional investors have not been keen to test the waters is the wide scale scamming of millions of dollars in funds. Many exchanges still operate under unregulated schemes as governments struggle to adapt to ... Read More »

What Really Needs to Happen to Attract Institutional Participation In Crypto-Assets?

  By David Drake   Crypto-assets are worth paying attention to, according a report recently released by KPMG. The audit firm points out that crypto-assets have the potential to solve some of the challenges that current economies face but must first attract institutional participation. The report argues that institutions, such as exchanges, fintech companies, banks, payment providers, broker dealers, and others need to be involved in the cryptocurrency industry to ensure trust, utility and scalability is reached in the global financial system. But for such synergy to be achieved, what role should industry players and governments play? 1.  Regulation One of the most significant boosts that governments can offer the cryptocurrency industry is developing clear, crypto-friendly regulation. Companies involved in crypto-assets recognize the role that governments have in protecting customers through regulation within their jurisdictions. However, there is need to have progressive regulation tailored to the industry as opposed to ... Read More »

Why Hong Kong’s Crypto Regulations Favor Institutional Investors

  By David Drake   While the western world grapples with decisions concerning cryptocurrency and governance, the Asian community is forging ahead. Hong Kong’s Securities and Futures Commission (SFC) is not derailed by indecision. Just recently, the commission announced favorable regulations towards cryptocurrencies. The country’s financial agency unveiled a comprehensive list of rules in an unprecedented move that could see Hong Kong become a major hub for digital assets in future. The new rules are geared towards controlling funds that invest in digital assets, and by extension, the platforms they use to trade. Companies engaged in retail services will be banned from using platforms that are strictly for professional investors. Also, a crucial element of the regulation is that funds have to be licensed by the SFC if they invest in excess of 10 percent of their portfolios in digital currencies. They are required to have insurance for almost all ... Read More »

Bitcoin Price and the Probable Causes of its Downward Trend

  By David Drake   The world’s leading cryptocurrency, Bitcoin, has been on a downhill trend with its price dipping to below $4000 last month. This kind of price drop was last seen in August 2017, yet it is the lowest Bitcoin has ever gotten and raises questions on whether this could be the end of the cryptocurrency. Optimists, however, note that the last time Bitcoin price sunk this low, they dramatically recovered to the highest price of $20,000 in December 2017. Why the Price Dip The most likely reason for the price dip is the ongoing differences in Bitcoin Cash fork which led to two factions, the Bitcoin cash and Bitcoin cash SV. As a result of the fork, these factions have been dumping Bitcoins, leading to an increase in supply and pushing Bitcoin prices down. Also, the tough regulations provided by the Securities and Exchange Commission (SEC) have ... Read More »

What is Potential of the African Cryptocurrency Market?

  By David Drake   As the interest in blockchain grows around the world, Africa as a continent is progressively embracing cryptocurrencies in various sectors. Just recently, Binance Exchange, a facilitator of crypto transactions, began operations in Uganda. This move came as a surprise to many in the crypto industry, and has since generated the interest of among other exchanges. Soon after Binance’s entry, Luno, a London crypto-based company, set its eyes on Uganda. The company already has a regional headquarter in South Africa and is aiming at changing the financial industry and improving trading through the banking sector. This interest by Luno and Binance, shows the potential of the African market in adopting blockchain technology and cryptocurrencies. Key Drivers Several factors have led to the growing interest of crypto companies in Africa and money transfer is one of them. The high cost of transferring and converting money across borders ... Read More »

Why Community Divisibility Might be Behind the Recent Market Crash

  By David Drake   Over the past weeks, the cryptocurrency industry has experienced a dramatic decline in its total market capitalization. The prices of most cryptocurrencies took a sharp nosedive, disappointing investors. The industry’s growth had started to slow down after hitting highs towards the end of 2017. This is particularly true for Bitcoin which reached an all-time high of about $20,000 in price. After the market crash, its price dropped below the $4000 mark for the first time this year. At its lowest price, the cryptocurrency market lost about $92 million in capitalization since the price began to drop on the 14th of November. Bitcoin History Although this picture might fuel concerns about the industry’s future, crashes like this are not uncommon. Due to the value of the industry and its decentralized nature, compared to traditional markets such as stock and forex markets, the cryptocurrency industry has a ... Read More »

What Caused the Recent Sharp Decline of Crypto Market Capitalization?

  By David Drake   The cryptocurrency market by its nature is unpredictable and has recently experienced a major downfall. By close of 2017, the value of Bitcoin and Ethereum rose to the highest point with Bitcoin reaching a high of almost $20,000. This high value of Bitcoin caused some countries to introduce cryptocurrency regulations to curb speculation in the industry. This, however, has not been the case in 2018. Trading in digital assets has been below those recorded in 2017 and have deteriorated further in the recent past. The total value of Bitcoin dropped significantly as its price dropped to below the $4000 mark last month. Its fall has had an adverse effect on the crypto market, triggering a drop in the value of other digital currencies to their lowest point ever. Key Triggers The cause of the cryptocurrency price crash may be difficult to pinpoint but several factors ... Read More »

How Thailand is Integrating Blockchain and Machine Learning in Tax Management

  By David Drake   Last month, Thailand’s Revenue Department took a bold step to include blockchain technology in its tax management strategy. By integrating the distributed ledger technology (DLT) ingrained in blockchain, the financial arm of the Thai government is hoping to better account for tax payments and refunds, while using machine learning to detect tax fraud. The government has not set timelines on when this initiative will be launched, but it remains a top priority. This is not the first initiative to utilize blockchain outside of its original focus which has been safeguarding digital coins. A report published by the International Monetary Fund (IMF) this past October showed that despite the financial crash predictions made due to the exponential growth of digital coins, more than 64 blockchain use cases exist across sectors including supply chain management, climate control and forestry management. More Sectors Elsewhere in Thailand, The Ministry ... Read More »

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