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Cryptocurrency market is ready to change the trend

Mar 13, 2019

Over the past 2-3 days, there have been no fundamental changes in the cryptocurrency market. In a nutshell, the general mood of the market is moderately optimistic. According to CoinMarketCap, all 12 cryptocurrencies with a capitalization of more than $1 billion show an increase in the last 24 hours. Stellar (XLM), Binance Coin (BNB) and Litecoin (LTC) are growth leaders, adding from 5% to 6%. At the same time, buyers’ activity is still weak, although there are no active sellers either.

SEC: Ethereum does not apply to securities

Jay Clayton, the chairman of the US Securities and Exchange Commission (SEC), questions the feasibility of applying securities law to Ethereum. Discussing Ethereum and securities, Clayton mentioned Bitcoin, which, in his opinion, is also not a security.

“Putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network and its decentralized structure, current offers and sales of Ether are not securities transactions. And, as with Bitcoin, applying the disclosure regime of the federal securities laws to current transactions in Ether would seem to add little value.”

At the same time, the SEC notes that a digital asset (including a cryptocurrency) can function as security. It is worth noting that the status of security is not static for cryptocurrencies. The SEC notes that a cryptocurrency can be sold as security immediately after issuance, considering as an investment contract. However, after a while, the digital asset may be sold or offered to other users, not as an investment object.

$ 990 000 fine

1Broker has announced that it managed to close lawsuits filed against it by SEC and CFTC. 1pool Ltd (1Broker) also aimed to continue working in a new form. However, the CFTC decided to fine the platform 1pool Ltd (1Broker) and its creator Patrick Brunner for $990,000 for conducting illegal bitcoin operations with citizens of the United States and a number of other countries.

Imposed CFTC penalty is $175 000. In addition, the company is obliged to return $ 246 000 which considers illegally obtained profits. Among other things, 1pool should return almost 93 BTC to US users of the platform.

Security increase

Malta teams up with Crypto Security Firm to manage the risks of financial crime. On March 11, Malta Financial Services Authority (MFSA) announced that it will integrate CipherTrace product to monitor compliance with the requirements for “protecting consumers, investors and business partners.”

Joseph Kushieri, the CEO of  MFSA, mentioned: “Being strongly aware of the money laundering and financing of terrorism risks associated with entities operating in this sphere, the decision has been taken to engage the services of CipherTrace in order to reduce fraud and detect transactions with illegal sources of funds”.

The MFSA will track the risks associated with the digital assets business, including cryptocurrency exchanges, collective investment schemes and initial coin offers (ICO).

“Cryptocurrency businesses often have difficulty establishing trust and maintaining banking relationships because of their perceived risk,” said Dave Jevans, CEO CipherTrace.

CipherTrace’s tools can help financial institutions decide which crypto businesses to trust and avoid declining “valuable customers,” he added.

The level of security in the market of cryptocurrency and blockchain technologies continues to increase. In the long term, this contributes not only to the development of these technologies but also to the growth of cryptocurrency.

Based on this, we can assume that the cryptocurrency market has already experienced its worst times.

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