“Progress lies not in enhancing what is, but in advancing toward what will be.”
- Khalil Gibran
Happy Tuesday fellow readers! It's good to see you back here again today. I hope everyone had a splendid Monday! 😄 Today in history, former U.S. president Abraham Lincoln was elected to be the 16th president of the U.S (1860)! To our friends in the U.S., it's voting day so don't forget to vote! 🗳️
In today's newsletter, we will be covering the SEC planning to release a "plain English" guidance on token offerings, MUFG's subsidiary believes to have found the hackers responsible for the Zaif crypto exchange hackand a confidential letter from Switzerland's FINMA to EXPERTsuisse.
Do enjoy today's newsletter, and please don't forget to answer the polls down below too! It's a great way for us to interact with you, and it's always nice hearing your thoughts. 💭 Happy reading! 📚
Another small win for the crypto space! Total market capitalization is up from ~$211.4 billion to ~$215.4 billion. 😊 Volume continues to remain relatively high at the ~$14 billion levels, which is a great sign. The notable mover of the day is XRP, currently up ~17%, and only about ~$200 million away from overtake ETH as the 2nd largest cryptocurrency by total market capitalization for the 4th time this year. 👀
BTC didn't change from yesterday and is still at ~$6,450 and continues to challenge its 21-day EMA line. Nonetheless, all top 10 coins (less USDT) by total market capitalization are in the green for the day. 🎉
Work in progress
According to the U.S. SEC's director of Corporation Finance, William Hinman, the SEC plans to release a "plain English" guidance for developers to refer to when planning their token offerings, to help them determine on their own whether their potential token offering may be classified as a security or not. 👍
Hinman spoke at the D.C. Fintech Week conference, and explained that if developers are still uncertain after looking at the "plain English instrument (guidance)", they can then contact the SEC's new Finhub that's tasked to provide rapid feedback on questions pertaining to securities offerings. 😁
Although Hinman himself isn't sure when the guidance will be published, he says that the SEC are considering key issues such as accounting, custody and token valuation. The guidance will also address secondary market transactions, to grant clarity on how the SEC might look at tokens post-initial offering.
Tracing the steps
A subsidiary of the Japanese bank MUFG, Japan Digital Design Co. (JDD), believes to have found the hackers responsible for the $60 million hack of the FSA licensed Japanese crypto exchange, Zaif, in September this year. 👏
JDD partnered with local cybersecurity researchers TokyoWesterns, and they have been monitoring the stolen funds comprising of BTC, BCH and MONA since soon after the hack. 🕵️ They then used several cloud-hosted MONA nodes to analyze transactions involving the stolen funds that began moving around since October 20, and managed to identify clues such as the source IP address. The relevant information has been relayed to authorities. 👍
Switzerland's Financial Market Supervisory Authority (FINMA) has issued a confidential letter to the Swiss Expert Association for Audit, Tax and Fiduciary (EXPERTsuisse), which revealed its stance on how financial institutions should weight crypto assets in their loss-absorbing capital buffer calculations.
The letter revealed that FINMA advises financial institutions to assign a "flat risk weight of 800% to cover market and credit risks" against crypto assets. For example, if the current price of BTC is $6,000, institutions would have to value each coin on their books at $48,000 (8x) when deciding on an adequate buffer. This 800% buffer places them on the higher range, similar to the status of hedge funds, meaning that FINMA considers crypto assets to be volatile. 🤯
Swissinfo.ch reports that FINMA has also set a crypto-trading cap of 4% for banks' total capital, and requires them to report back if that limit is ever reached.
At the moment, no official statement has been released by FINMA on how Swiss Banks should deal with cryptocurrencies. 😔
The chairman of the Bahamas-based Deltec Bank & Trust has said that the public letter about stablecoin issuer Tether's US$1,831,322,828 account with them is "authentic." 🤔
The Hong Kong-based stock market commentator, Raymond Yuen, who became popular in the early 2000s for his stock market analyses and finance related radio shows, has been indicted for misleading investors into investing into a ~$880,000 crypto ponzI mining scheme. 👮
An ethereum project called "Lition" is helping German citizens find cheaper energy through its Lition market that connects consumers directly with big and small energy producers. 🏡
Poll of the Day
How much do you agree with this statement: "The U.S. SEC is taking way too long to create regulatory guidance for cryptocurrencies"💭
And...do you think that cryptocurrencies should be classified as its own asset class? Also, will the U.S. SEC come up with clear regulatory guidance by 2019? Share with me in the polls! 😆
What you said
"How much do you agree with this statement: "Bitcoin (BTC) will still remain as the top cryptocurrency by total market capitalization by 2025"
The average vote was only a 8.2. It's hard to fathom a crypto market that has a cryptocurrency with a greater market capitalization than BTC. 🤔 Although I think this will happen eventually, I strongly doubt it would happen in the near future. ⏱️
"Why do you think so?"
You guys said:
BTC is king. Store of value and mother of blockchain. - All hail BTC! 👑
Much can happen in 7 years and wide acceptance of Ripple. - Ripple certainly has been making some strong moves as of late. 👍
It is the international standard and is likely to become less volatile - Agree and agree. However, the degree to which it will be adopted is debatable. There are many great coins out there with better scaling potential. That being said, BTC also has an overwhelmingly strong first mover advantage. 🤔
Great information today - Why thank you! I aim to please. 😉
It’s bitcoin hello - Apologies 🙏
Natural - I believe it will happen as well, but it will take a long long time. ⌛
Bitcoin (BTC) will always remain the top in market cap. Its gold standard. Other crypto currencies or the crypto market on the whole will always be relative to it. As bitcoin has no real world utility other than a store of value I think it will be surpassed by something with real world use. - 'Always' is a really strong word. 😁 Nonetheless, very solid points! 👍
"If it happens, which cryptocurrency will be the first to overtake the #1 spot? Why do you think so?"
You guys said:
ETH, Second best, Biggest platform coin. - In my eyes, ETH is the most likely coin to overtake BTC. It has great institutional support and its network continues to rapidly expand. The Enterprise Ethereum Alliance network is a very impressive one. 👏
One that’s not around......yet - Ooooo, the mystery... 😮
XRP, Mainstream adoption by Central banks, financial institutions, dapps via coil and 3rd party development through xpring. - Ripple has been stepping up their game too. 💪
Bitcoin (BTC),Bitcoin (BTC),Bitcoin (BTC),Bitcoin (BTC) - PERIOD, not a chance for any other product... - Never say never 😜
Thank you all for reading thus far! Catch you back here again tomorrow! 💙
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