Crypto News Weekly 30.11.18: London’s FCA Gets Tough on Crypto, Crypto Code of Conduction from New Alliance
Crypto code of conduct from new alliance
10 major players in the digital assets industry have come together to form the Association for Digital Asset Markets (ADAM) and have published their own code of conduct as a blueprint for the industry .Amongst the firms involved are Paxos (with their new dollar pegged stablecoin) and Mike Novogratz’s bank, Galaxy Digital.
They say their aim is to work with current and former regulators to develop comprehensive standards that cover Know Your Customer, Anti–Money Laundering (AML) policies, custody, record keeping, clearing and settlement, market manipulation, data protection, and research.
Galaxy Digital also recently announced their Quarter 3 results which amounted to a loss this year of $ 136 million, with Mike Novogratz expressing his frustration saying that building the business amongst the current carnage, sucks.
London’s FCA to crack down on 50 traders
The United Kingdom’s Financial Conduct Authority, the FCA (think SEC for Great Britain) has revealed it is now investigating 50 crypto related firms for possible trading outside of regulations. It also said for the first time, it had received 7 whistleblowing reports from disgruntled employees of digital asset projects where as in the last three years it had received none.
Whilst cryptocurrencies per se are unregualted in Great Britain previously the FCA have partnered with the Bank of England, and the Treasury to form a crypto assets task force to monitor the impact on the financial system.
Paraguay to build the world’s largest crypto mining centre
A South Korean firm, the Blockchain Technology Foundation , also known as the Commons Foundation have agreed a deal with the government in Paraguay that will see the largest mining farm in the world being built over 50 000 square meters. The Golden Goose project will take advantage of cheap electricity from hydro sources there that is 1/5th of price in South Korea guaranteed for the next 15 years.
Recently Norway took legislative action that exempts crypto mining facilities from tax subsidies previously available which has been reported to have halted one project for $ 116 million overnight and forced all existing businesses to re-examine their models and location.
Cryptovest also recently ran a story on how Chinese miners with old Asic rigs were finding it so hard to shift previously used equipment they were now resorting to selling it by the kilo for scrap.
Bitcoin Cash wars over, counting the cost
As a week on the markets showed all players still suffering a prolonged bear attack with the possibility of further losses, the war between the two Bitcoin Cash versions ended with Craig Wrights side naming a new currency as Bitcoin SV which since its formation enjoyed a spurt of growth crashing into the top 10 chart by market cap.
The two sides were reported to have spent $ 3 million in losses on unprofitable mining but in addition the indirect costs from lost trading, lost profitable mining, cancelled futures contracts etc runs into many billions and may have a far longer effect on the general market.
All this in the same that one publication named Craig Wright not as the real Satoshi but the real Donald Trump of crypto.