Cryptocurrencies started the week with losses as speculation of more trades by “whales”, as traders with big crypto holdings are known, and regulatory worries damped market sentiment.
Bitcoin and peers recovered by Thursday as some positive news emerged. A prominent crypto bull Michael Novogratz predicted that cryptocurrencies are ripe for a rebound after several days of decline.
An eye-catching move this week was by Ripple, carrying the symbol XRP. The altcoin surged about 60 percent on Thursday on news that Ripple Labs is set to launch a service as early as next month that use the XRP digital currency.
As of 10.33 am ET, XRP was up 61.14 percent at $0.58 on CoinMarketCap where Ripple briefly displaced Ethereum to be second largest crypto after Bitcoin.
Markets were also likely encouraged by the US SEC to postpone a decision on the VanEck/SolidX Bitcoin exchange-traded fund as it sought more details, rather than an outright rejection.
Overall cryptocurrency market capitalization was $225.05 billion and the Bitcoin dominance rate was 51.8 percent as of 10.53 am ET on CoinMarketCap.
Here is a collection of the main news from the cryptocurrency and blockchain world this week.
UK Lawmakers Recommend Regulation For ‘Wild West’ Crypto-asset Market
A British parliamentary committee has called on the government to introduce regulation to protect investors from the current “Wild West” situation in the crypto-asset market. The Treasury Committee has made recommendations in a report published Wednesday on crypto-assets for its Digital Currencies inquiry.
Over 55% of Circulating Bitcoins Sitting In Investment Wallets: Diar
A report from digital asset market researcher Diar said the majority of circulating Bitcoins, 55 percent, are sitting in wallets that are valued more than $1.3 million at current prices. Further, more than a third of these Bitcoins have never made an outgoing transaction, the report said. This could be due to lost private keys, lowering real supply or simply holding for value appreciation or HODL.
China’s CB Warns Of Risks In Cryptos; NY AG Cautions On Exchanges
China’s central bank warned investors of risks in the Initial Coin Offerings or ICOs and cryptocurrency investments amid the increased activity by overseas operators. Elsewhere, A report from the New York Attorney General have laid bare several problems with cryptocurrencies exchanges, including some leading ones such as Coinbase and Kraken. A probe by the AG’s office found that crypto exchanges were yet to implement strict measures to monitor and prevent abusive trading.
Binance To Open New Crypto-Fiat Exchange In Singapore
Binance, the largest global crypto exchange by traded volume, plans to launch a fiat-to-crypto exchange in Singapore. Binance co-founder and CEO Changpeng Zhao or CZ tweeted that the company will begin Binance Singapore fiat exchange live money closed beta testing on September 18, in three days.
Hackers Loot $60 Mln Worth Cryptocurrencies In Japan
Japanese cryptocurrency exchange Zaif has lost 5,966 bitcoins worth 6.7 billion yen ($60 million) in a hacking attack, the company operating the exchange said on Thursday. This is the second major hack of cryptocurrency exchange in Japan this year.
US Reps Write To IRS Seeking Clarity In Cryptocurrency Tax Guidance
Five US Representatives has sent an open letter to the Internal Revenue Service (IRS) seeking provisional guidelines on how digital currency transactions and investments should be handled when tax payers file their income tax return. In a letter to IRS Acting Commissioner David Kautter, they strongly urged that the IRS expeditiously issue more robust guidance clarifying taxpayers’ obligations when using virtual currencies. In addition, they asked the Government Accountability Office to undertake an audit on this matter.
UN Women To Use Blockchain For Cash Transfers To Refugees In Jordan
UN Women and the World Food Programme (WFP) are set to use blockchain technology to transfer cash to Syrian refugee women under the UN Women’s cash-for-work programs running at the Za’atari and Azraq refugee camps in Jordan. UN Women is a United Nations organization dedicated to gender equality and the empowerment of women.
Pharma Firm Verseon To Use Blockchain For Drug Development Funding
U.S.-based pharma company Verseon plans to use blockchain technology for drug development funding through tokenization of securities. The technology is developed by its unit, BlockRules Ltd. BlockRules’ token platform supports the sale, launch, and trading of financial securities on a public blockchain.
Blockchain Solutions Can Fix Environmental Challenges: WEF
A new research by the World Economic Forum (WEF) says blockchain technology can be applied in more than 65 ways to address the world’s most pressing environmental challenges. The research report, titled “Building Block(chain)s for a Better Planet,” calls for new global platforms to incubate “responsible blockchain ecosystems” rather than just individual applications or companies.
As of 10.54 am ET, Bitcoin was up 3.48 percent for the week at $6,728.01 and Ethereum was higher by 8.17 percent at $230.19 on Coinbase.
by Jyotsna V