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Crypto Daily Roundup - February 13


Bitcoin lost its value by more than 4 percent in trading Tuesday. After opening at $8925, the price dropped to trade as low as $8370.

After plunging below $6,000 last week, the most popular crypto currency has been showing signals of recovery.

Here is a wrap up of the main news from the cryptocurrency market over the last 24 hours.

South Korea Considers Licensing System For Cryptocurrency Exchanges

The South Korean authorities are mulling a licensing system for cryptocurrency exchanges based on the Bitlicense model, a report said. Adopting the Bitlicense model would help bring cryptocurrency trading into a more familiar institutional framework and help the government supervise a notoriously volatile market, according to Business Korea. A final decision is expected after the local elections in June.

Russia Proposes Law To Regulate ICO Issuers

Russia's Ministry of Communications and Mass Media released a document that specifies capital requirement and other criteria for the operation of initial coin offering (ICO) issuers. The draft requires ICOs to register as legal entity within the Russian territory and also get license for the development, production and issuance of tokens. The ICOs should also possess a licensed bank account. The proposal is currently open for public comments.

Virtual Currencies among European Regulator's Top Priorities

The European Securities and Markets Authority (ESMA) in its 2018 Supervisory Convergence Work Programme (SCWP) said, " ESMA expects the rapid pace of financial innovation developments across the EU securities markets to continue in 2018. These developments influence the way in which securities are developed, traded and supervised. In turn, ESMA is undertaking material analysis on the emergence of such instruments as virtual currencies, such platforms as ICOs and such tools as the distributed ledger technology. Additionally, ESMA will analyse how market participants are embracing regulatory technology to comply with recently implemented regulation, and how supervisors are deploying supervisory technology to undertake what has become a data driven supervisory process."

Citi Bank India bans use of debit, credit cards to buy cryptocurrency

Citi Bank India has banned the purchase of cryptocurrency using its debit or credit cards.

"Given concerns, both globally and locally including from the Reserve Bank of India, cautioning members of the public regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with bitcoins, cryptocurrencies and virtual currencies, Citi India has decided to not permit usage of its credit and debit cards towards purchase or trading of such bitcoins, cryptocurrencies and virtual currencies". Citi Bank now joins the ranks of Bank of America, JP Morgan and Lloyds that stopped their customers from using credit or debit cards for the cryptocurrency business.

Chechen President Ramzan Kadyrov To Buy Bitcoin

Chechen president Ramzan Kadyrov, already a strong supporter of the blockchain technology, reportedly said he intends to purchase a fraction of Bitcoin to be part of the evolution of the cryptocurrency market. The Head of the Chechen Republic has been a strong advocate of the blockchain technology, which underlies Bitcoin and other cryptocurrencies, and plans to introduce the technology in the Chechen Republic. However, he wants to see the investment and trading in cryptocurrencies to be strongly regulated in order to protect citizens from financial pyramids and other fraudulent schemes.

Microsoft to develop blockchain technology for Digital Identity

In a blog post, Ankur Patel, Principal Program Manager on the team of Alex Simons, Director of Program Management, Microsoft Identity Division, said blockchain technology and protocols are well suited to enable Decentralized Digital Identities (DID).

Some public blockchains like Bitcoin, Ethereum, Litecoin, provide a solid foundation for rooting DIDs, recording DPKI operations, and anchoring attestations, the blog post says.

"While some blockchain communities have increased on-chain transaction capacity (e.g. blocksize increases), this approach generally degrades the decentralized state of the network and cannot reach the millions of transactions per second the system would generate at world-scale. To overcome these technical barriers, we are collaborating on decentralized Layer 2 protocols that run atop these public blockchains to achieve global scale, while preserving the attributes of a world class DID system," Ankur said.

European Regulators Warn Consumers On Risk Of Virtual Currencies

The European Supervisory Authorities (ESAs) for securities (ESMA), banking (EBA), as well as insurance and pensions (EIOPA) have in a release stated that Bitcoin and other virtual currencies "have shown clear signs of a pricing bubble". The regulators added that the cryptocurrency exchanges are not regulated under EU law. This puts the consumers' investments at risk as the exchanges are vulnerable to either cyber attack or go out of business.

Current Prices

As of this writing, Bitcoin is trading at $8647 and Ethereum at $845 on Coinbase.

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