- No, South Korea will not ban Crypto Exchanges. At least not now!
- Is Bitcoin dying as a possible Payment Method?
- Crypto Songs: Anthems for Bitcoin!
- LINE: Japan's most popular Chat App integrates Cryptocurrencies!
- KFC Canada: The Bitcoin Bucket!
- Telefónica Deutschland and LBBW rely on Blockchain Technology!
- Bitmain mining Giant establishes Subsidiary in Switzerland!
After the police had searched the largest South Korean crypto exchanges, the news circulated that the government would ban the trading of cryptocurrencies. As it turned out, this was just an idea that probably will not be implemented. But the affair is not over completely ...
Maybe you already heard it on another website, South Korea is planning a ban on crypto exchanges. The Minister of Justice of the country has told journalists that such a law is already in preparation.
Crypto-market observers know how devastating this news can be. South Korea has been infected with crypto-fever in recent years, many of the price jumps we've seen in recent months emanate from the high-volume crypto exchanges of South Korea, and rumors are that rich Chinese Bitcoin traders are after the end of the Chinese crypto exchanges emigrated to the South Korean platforms.
Only a few days after the announcement, the scene can breathe easy: The ban will probably not exist. But there can be no question of a real all-clear. What is really going on?
Police are searching the big crypto exchanges
It all started when a squad of police and tax inspectors raided the big crypto exchanges like Bithumb or Coinone. As Reuters reports, the reason for the search of the offices of the crypto exchanges was a suspected tax evasion.
"A couple of National Tax Services officials raided our office this week," said a Coinone employee, "the police have been investigating our company since last year. They think what we do is gambling. "A Bithumb employee also explained that" tax officials yesterday told us to show files and other things. "
At the same time, financial regulators have visited six banks to conduct inspections. Banks have opened virtual accounts for businesses, which is causing regulators to fear that these virtual accounts will be used as a back door to attract crypto investors. Supervisors have banned banks from offering such virtual accounts to prevent speculation with virtual currencies continuing to spread.
You can not say that's the good news. But that was just the beginning.
Minister of Justice announces Bitcoin ban
Immediately after the raids on the crypto exchanges, South Korea's Justice Minister Park Sang-Ki said the government is preparing a bill banning the trading of virtual currencies on domestic exchanges.
"We're worried about virtual currency," Park said in a press conference, "so the Ministry of Justice is preparing a bill banning cryptocurrency trading through crypto exchanges." According to a spokesman for the ministry, the ban was not announced until after " sufficiently discussed with other authorities such as the Ministry of Finance and Financial Supervision.
As soon as this news came out, the courses on South Korean and global crypto exchanges began to go down.
Democracy
However, a bill is not yet a law. For this to happen, the draft must first be approved by Parliament. And this was suddenly exposed to a rush to the public to prevent this.
The "Blue House" of South Korea is the seat of the President. On the Blue House online page, there is a page where you can submit online petitions. Within hours, an objection to the proposed ban reached more than 40,000 signatories and became one of the top petitions for economic issues.
"It is the invididae who should take responsibility for their investment, whether they fail or win. The risks are there in all areas, be they virtual currencies or stocks, "the petition says. Meanwhile, the number of signatories increased to more than 100,000.
In addition, 30,000 people demand the resignation of the finance and justice ministers, who have initiated the possible ban.
Houses of Parliament
On Tuesday, a spokesman for the South Korean presidential office went public. He said, according to Reuters, that a ban on the crypto exchanges is not yet established. It is one of the measures that the Ministry of Justice has prepared, but it is not yet approved.
Meanwhile, Joseph Young, a Korean-born crypto-journalist, tweeted:
Young has seen the Korean news, as the screenshot suggests. Unlike Reuters, a ban is not only "not yet final", but excluded by the government, at least in the short term. According to Young, the Ministry of Finance also ranks back:
The Ministry of Strategy and Finance does not share the Ministry of Justice's view on a potential ban on cryptocoin exchanges.
Another journalist confirmed this. A colleague in Korea said that the ban was a pure rumor:
Korean authorities are taking unregulated and non-compliant crypto exchanges to the chest. They also check the quality of the customer identification measures. A ban is not on the table ...
Indeed …
So it looks like a ban on crypto exchanges in South Korea is not forthcoming, at least in the near future. Nevertheless, the country's crypto industry has to face tough times.
By the end of 2017, Prime Minister Lee Nay-yeon had warned that cryptocurrencies were "corrupting the youth" and calling on regulators to create a cryptocurrency entity. He said that virtual currencies are a gateway to pyramid games and speculative investments if they are not better controlled.
It seems inevitable that South Korea will tighten the crypto exchanges more rigorously. But ministries are still discussing the extent of this regulation. Like everywhere else in the world, people in South Korea who want to ban the phenomenon with stub and stalk, as well as people who fear, with a ban, kill innovations around cryptocurrencies and fintech.
The government is reported to require stock exchanges to comply with stricter regulations. They should introduce rules to protect investors and provide more transparency. In addition to supervision, the Ministry of Finance is particularly interested in stricter controls. For the trading volume of the crypto exchanges has meanwhile become just as large as that of the South Korean technology stock index Kosdaq. The taxes, which should arise from the trade, are quite attractive for the tax offices.
So much is unclear. The only certainty is that the story of Krypto and South Korea does not lead directly to a ban, but has not yet come to an end. South Korea could become the new China, whose bitcoin policy has caused speculation and horror for years. One should just hope that South Korea in the end is not the same way as China and the trade actually prohibits.
About six months ago, the news was littered with companies that wanted to integrate Bitcoin as a payment system. However, things have changed dramatically in the fast-moving environment of the cryptocurrency.
Is Bitcoin dying due to slowness?
Now there are a multitude of companies that either turn away from Bitcoin or make a full U-turn. Microsoft recently announced that it will not accept Bitcoin after almost three years.
Steam, the gaming platform, also stopped using Bitcoin as a payment system in early December last year. Their reasons contradicted general consensus, with high fees and unbelievable volatility being the main issues.
However, it is not just the companies that move outside the crypto market; The North American Bitcoin Conference, due to take place next week in Miami, will no longer accept Bitcoin for last-minute tickets.
Bitcoin dies? Transactions far too expensive
The cost of a Bitcoin transaction has often been a bone of contention. Now that transactions cost more than $ 20, people have started to see Bitcoin as something other than a digital currency.
The North American Bitcoin Conference said on its website that network congestion and manual processing had influenced the decision to stop accepting cryptocurrency payments.
"We have and will always accept cryptocurrencies for our conferences up to fourteen days before the event," the organizers write. "Due to the manual entry of data into our ticketing platforms when paying in cryptocurrencies, we have decided to stop Bitcoin payments for last-minute sales due to print dates."
Digital gold
Bitcoin has always had problems defining itself as a digital currency or digital gold. It was assumed that SegWit2x would help reduce costs and speed up the network; as a result, the value of Bitcoin as a store of value could probably get hit. And since there was interest in Bitcoin being driven by the general acceptance of the digital currency as an exponential growth asset, it seemed that the community was more interested in turning it into digital gold.
The still relatively liquid nature of Bitcoin suggests that it could continue to be a very useful and sustainable currency. But that decides the community. The last change that can help is the Lightning Network, which would greatly help with the Bitcoin scaling problem.
The Lightning Network would implement an intelligent contract script into the Bitcoin network that would open private payment channels between a peer and all other peers they work with. In addition to all the private pay channels they belong to, each peer would have its own channel for the Bitcoin blockchain.
An interesting phenomenon that has come up in this new year is crypto songs: songs that sing about cryptocurrencies, investment strategies and, of course, the prospect of making quick money. These are quite entertaining for the crypto connoisseur. But the songs also say something about the way in which cryptocurrency is currently being invested.
So it says in the song by Kool Savas with the meaningful title "Hodln":
German
English translation
The new song shows that cryptocurrencies have arrived in mainstream hip-hop. The feature of the rapper Sido and Kool Savas can be heard a number of other well-known German rappers on crypto-Invests, such as Frauenarzt, Manny Marc and Felix Krull. The vocal contribution is garnished by interspersed quotes by TenX founder Julian Hosp, who has a high profile in the crypto community through continuous public relations.
In terms of content, the eight stanzas cover all imaginable aspects that go through the mind of the interested observer on the topic of cryptocurrencies. In addition to numerous allusions to various coins, keywords such as Fork, ICO, Bubble, Referral Link, Wallet and, of course, Blockchain should not be missing. It is played as usual with common stereotypes. Phrases such as "To The Moon" or "Make a few million" fuel the expectations of investors, especially those who have little or no understanding of the technology behind the cryptocurrency use case.
If the song "Hodln" is the first of its kind in German-speaking countries in the current hypes, there are already several comparable songs in Anglo-American that push the acceptance and awareness of cryptocurrencies in society and encourage them to invest in it. A popular and very striking example of the kind of crypto-romance is the song "Lambo Land" of the group teamHODL, which is held in a very similar tenor as the German counterpart:
It gets even crazier when you look at Japan. There has recently been a girl band called Kasotsuka Shojo formed - translates into about "virtual currencies girl". True to their band name, the eight girls each represent a cryptocurrency, alongside Bitcoin including Ethereum, Ripple, Monero and Cardano.
The Girlband already enjoys a high popularity, Japan has been the crypto-currency market since crypto-hostile regulation in China. In terms of content, the girls seem to be moving in a similar direction to the other bands described: their first song is titled "The Moon and Virtual Currencies and Me".
The emergence of cryptocurrencies in popular culture, of course, reflects wonderfully the increased relevance of the blockchain application in business and society. On the other hand, however, it is also apparent here how the current hype is changing the way in which cryptocurrencies are invested. The focus on fast and easily earned money has long been superimposed on the idea of a decentralized payment system. This explains the increase, but also the high volatility and above all nervousness, which is reflected in the sensitive reactions to external factors.
The free chat app LINE currently has 168 million users who regularly communicate about it. As reported by the Japan Times, the operating company is currently negotiating with several companies to integrate cryptocurrencies into the mobile payment service LINE Pay. After the announcement, the shares of the company shot up.
The Line Corp. operates the most popular chat software on portable devices in Japan. According to insider information, negotiations are currently underway with several companies not mentioned by name in order to integrate cryptocurrencies into the portable payment service LINE Pay. Not only is the popularity of the app to be increased. Also, the users should be tempted to return again and again to this app. LINE Pay is also available to German users, but at the moment it can only be paid with one of the recognized credit cards. The pay-as-you-go platform LINE Pay was founded in 2014 and is currently working with 30 Japanese banks. More than 30 million Japanese pay. The value is currently estimated at 10.75 billion US dollars. According to information from Bloomberg negotiations are currently underway with representatives of the South Korean trading platform UPbit. Officially, nobody wanted to take a stand. After the announcement of this rumor from anonymous circles, the stock shot up in the short term by 10%. In December last year it was claimed that UPbit had even overtaken the trading volume of the market leader Bithump. UPbit trades more than 120 different cryptocurrencies because of its collaboration with Bittrex.
The management of LINE hopes with the new feature to gain a competitive advantage over the social networks Facebook and Snapchat, especially since Facebook CEO Mark Zuckerberg has recently brought the topic of crypto-currencies themselves into conversation. Most users of the app live in Thailand, Taiwan and Japan. They often send cute or expressive Hello Kitty-style stickers to their contacts and use LINE for food ordering, job hunting or watching video streams, for example. Since this often requires paid services, the integration of crypto currencies appears logical as a new payment option.
LINE well rated in tests
The German press praises the possibility that you can use this chat app, without having to grant the software as with WhatsApp and other competitors, obligatory access to the phone book of your own smartphone. Also praised in tests that in the business model of Line Corp. the collection and analysis of user behavior is not yet planned. This software does not have to hide in comparison to the competition, when it comes to chat with the app or make phone calls. The free software is available cross-platform for tablet PCs and smartphones with Android, Windows Phone and BlackBerry as well as in the desktop version for Windows and Mac OS X. In addition, the app is also available as an extension for the browser Chrome. The only downside is the small number of European users. For a chat or a phone call, of course, both communication partners must have installed this app.
KFC Canada, the well-known fast food chain that offers fried chicken in buckets, will accept Bitcoin for a short time as a means of payment.
For a short time, a "Bitcoin bucket" is offered for sale at the Canadian branches. On the social media platform Facebook, there will be a live tracker tracking the exact price of the bucket. The price of a container is said to be around $ 20, but will adjust to the bitcoin price.
The option is also only available if you want to have food delivered to your home. When paying, Bitcoin can be selected via BitPay. The Bitcoin bucket also has a $ 5 charge.
The company twittered also about the promotion:
In the past, similar actions have boosted the stock prices of the offering companies. Yum! However, Brands, the parent company of KFC, has so far not been able to make much profit from the stock trading action.
In another tweet, the company hinted that it would like to do similar things with other cryptocurrencies in the future.
Telefónica Deutschland is working with LBBW and DZ Bank on a joint voucher transaction with a volume of 200 million euros. The transaction is intended to demonstrate for the first time the performance of the blockchain in combination with a traditional financing process and a larger number of investors.
Telefónica Deutschland, Landesbank Baden-Württemberg (LBBW) and the cooperative central bank DZ Bank announced on Thursday that a promissory note loan with a target volume of 200 million euros had been launched. The special feature of this is that a blockchain technology is being used throughout a tranche exclusively marketed by LBBW.
For the first time, a broad range of investors will participate in blockchain financing, and the necessary technical infrastructure has already been implemented by interested lenders in advance. "With this transaction, we want to show that the intelligent use of digital technology leads to more efficient processes," said Markus Rolle, CFO of Telefónica Germany. Role also stated "to gain valuable experience applying the blockchain in other business areas".
In the summer of 2017, LBBW had already used a blockchain for the presentation of a financial transaction together with Daimler. At that time, Daimler placed a promissory note loan of more than EUR 100 million with LBBW via three LBBW banks and LBBW. The entire transaction, together with the IT subsidiaries TSS (Daimler) and Targens (LBBW), has been completely digitally mapped on a blockchain, from initiation through placement, allotment and contract conclusion to interest payment and repayment confirmation.
According to LBBW and Daimler, promissory note loans with their long value-added chain are an ideal use case for blockchain because this instrument can replace previously labor-intensive manual process steps with digital processes. Daimler and LBBW see similar efficiency potential, for example, in syndicated loans or export finance.
Kurt Schäfer, Head of Daimler Treasury, explained:
More and more companies - including medium-sized companies that are too small for the capital market - use the promissory note bond as an alternative to financing instruments such as bank or syndicated loan, according to LBBW. "The promissory note is gaining importance for many companies - especially as an option to issue bonds," explains LBBW analyst Hans-Peter Kuhlmann: "The main advantages of the promissory note loan are the low spreads, the distribution of the tranches over different maturities and lower transaction costs and liabilities no need for publicity obligations. "
According to LBBW, the market for corporate promissory note bond reached the record level of the previous year at 27 billion euros in 2017, and the outstanding market volume of all promissory note bonds increased by around 17 billion euros to more than 100 billion euros. The number of emissions rose to a new record. LBBW wants to make the promissory note bonds even more attractive as a financing instrument for companies and investors with the help of the blockchain.
Switzerland is known worldwide for its banking secrecy, but now a new financial industry is settling in the country. Bitmain, one of the largest Chinese mining companies, has set up a branch in the Swiss canton of Zug.
Bitmain in Switzerland
Bitmain Technologies Ltd., manufacturer of ASIC chips headquartered in Beijing, has opened a branch office in Zug. The Chinese company said that Switzerland is "one of the most advanced countries" with "good legal stability" and skilled labor and that the manufacturer chose the location. Bitmain also announced that it would hire more employees in the future. Furthermore, the company believes that close cooperation with the Financial Market Authority is important.
A spokesman for the company told the Handelszeitung:
The company already has offices in the United States, Singapore and Israel. The branch in Zug is the first branch in Europe. "Now is a good time to develop a hub in Europe to provide better services," the spokesman said.
China's global diversification
Many Chinese companies are expanding worldwide. This is also supported by the government of the country. However, the Chinese bitcoin mining industry also has other motives for opening two-digit outside China.
There is currently some legal uncertainty about the legality of mining. In some provinces, it should come to an "orderly exit from the cryptocurrency mining". However, the Chinese government has not yet announced a nationwide closure of all mining companies.
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