Cryptocurrency prices rebounded at the start of the week as sentiment improved after the G20 signaled that is it not planning to regulate cryptocurrencies for now as they do not pose considerable risk to financial stability. Bitcoin climbed back above $9,000 on the back of the news by the middle of the week.
Here is a collection of some of the major news from the world of cryptocurrency and blockchain this week.
Bitcoin Suffers As Japanese Regulator Warns Crypto Exchange Binance
Japan’s Financial Services Agency or FSA has warned Hong Kong-based cryptocurrency exchange Binance for operating in Japan without a license. The FSA reportedly is planning to work with police to file criminal charges against Binance, which is believed to be one of the the world’s biggest cryptocurrency exchange operators, if it fails to halt its Japan operations.
U.S. President Trump Bans Venezuela’s Petro
U.S. President Donald Trump on Monday had issued an executive order banning U.S. persons from using, purchasing and selling Venezuela’s digital currency, Petro. While, the Time magazine reported that the cryptocurrency launched by Venezuela’s Nicolas Maduro government was the result of a hidden collaboration between officials and businessmen from the South American country and Russia, to evade the economic sanctions imposed by the United States.
G-20 Constructive Approach To Cryptos Sent Bitcoin Above $9K
Cryptocurrencies need not be strictly regulated at present as they pose little risk to global financial stability, Mark Carney, Bank of England governor and chair of the G20’s Financial Stability Board, said. “The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time,” Carney wrote in a letter to G20 finance ministers and central bank governors, who held their summit in the Argentine capital of Buenos Aires on Monday. The price of Bitcoin climbed back above $9,000 on this news.
Morgan Stanley Warns Bitcoin Unfolding 15 Times Faster Than Nasdaq 2000 Crash
Bitcoin is unwinding in a similar fashion to the Nasdaq during the dot-com bubble nearly two decades ago, but 15 times faster, global investment firm Morgan Stanley said. The firm’s strategist Sheena Shah said the Nasdaq in 2000 and Bitcoin now both rallied 250 to 280 percent during their peaks ahead of bear markets.
Bitcoin Bull Tom Lee Predicts End of Alt-coin Bear Market
Bitcoin bull Tom Lee predicted the bear market for alt-coins, which are small-cap cryptocurrencies, is over. The head of Fundstrat Global Advisors also said that investors should stick to larger cryptocurrencies such as Bitcoin as the alt-coins are likely to go through a purgatory period before starting a bull market.
UK Government Announces Cryptoassets Task Force
The British government on Thursday announced the creation of a Cryptoassets Task Force that it hopes will help to manage the risks surrounding such tokens and harness the potential benefits of the underlying technology such as Blockchain. “The Fintech Sector Strategy will include a Cryptoassets Task Force consisting of HM Treasury, the Bank of England, and the Financial Conduct Authority,” the HM Treasury said in a statement. “This will help the UK to be at the forefront of harnessing the potential benefits of the underlying technology, while guarding against potential risks.”
Snowden Leak Reveals NSA Tracking Bitcoin Users
US National Security Agency has been tracking Bitcoin transactions as early as 2013, online news outlet The Intercept reported citing classified documents made available by whistle-blower Edward Snowden. Citing an internal NSA report dating to March 2013, The Intercept reported that the watchdog had at least one source which helped it “harvest and analyze raw, global internet traffic while also exploiting an unnamed software program that purported to offer anonymity to users.
Twitter Also To Ban Cryptocurrency-related Ads?
Twitter is likely to follow Google and Facebook as it prepares to ban advertisements for cryptocurrencies and related products, according to Sky News. Later, Twitter co-founder and CEO Jack Dorsey said in an interview to the Times of London that Bitcoin will be the single currency of the internet and the world in a decade. Dorsey, who is also the chief of the crypto-friendly mobile payment app Square, acknowledged that Bitcoin does not have the capabilities right now to become an effective currency.
Study Finds Links To Child Pornography Within Blockchain
German researchers have found illegal content, including hundreds of links to child pornography within the blockchain, which is required to participate in Bitcoin. The report, published by RWTH Aachen University, Germany, noted that the findings especially endangers the multi-billion dollar markets powering cryptocurrencies such as bitcoin, making it illegal in at least 112 countries in which possessing content such as child pornography is unlawful.
Google Reportedly Developing Own Blockchain Tech To Support Cloud
Google’s parent Alphabet Inc. is developing its own distributed ledger or blockchain technology to give an edge to its cloud business versus those of rivals, Bloomberg reported Wednesday, citing people familiar with the matter. While it is unclear, when the internet giant would release a blockchain-based product, the company plans to offer a white-label version that other companies can test on their servers, the report said.
As of 9.57 am ET on Friday, Bitcoin was up 0.38 percent for the week at $8,353.39 and Ethereum was lower by 14.42 percent at $514.87 on Coinbase.