Philippines Legalizes Cryptocurrency in Economic Zone of CEZA

The Philippine government is welcoming nearly a dozen cryptocurrency companies to operate in a special tax-friendly economic zone situated in close proximity to a number of neighboring countries.

According to a Reuters report, the Philippines will legalize the entry of  top 10 blockchain and cryptocurrency companies to operate in the Cagayan Economic Zone Authority (CEZA), a government-controlled economic zone that is within an hour’s flight away from the likes of Hong Kong, China, and Taiwan.

The government aims to woo cryptocurrency companies to operate out of the economic zone with tax benefits to help generate employment opportunities locally, Cagayan Economic Zone Authority chief Raul Lambino told Reuters.

Notably, the official confirmed that the government will also license – in effect legalize – the cryptocurrency firms in the special zone.

The companies will also be allowed to operate exchanges, offer initial coin offerings (ICOs) and engage in cryptocurrency mining within the zone, he added, stating:

We are about to license 10 platforms for cryptocurrency exchange. They are Japanese, Hong Kong, Malaysians, Koreans…They can go into cryptocurrency mining, initial coin offerings, or they can go into exchange.

There is a caveat, however. Any exchange of fiat money into cryptocurrencies or vice-versa should be conducted beyond Philippines’ borders to avoid infringing the country’s laws.

To aid in bringing jobs to those companies, the economic zone’s regulator is also considering establishing a new financial technology university in the economic zone with a specific focus on blockchain technology, Lambino added.

The embracive stance follows newly introduced rules by the CEZA in February which allowed cryptocurrency companies to legally establish offices and facilities in the special zone. To gain a license, companies must invest at least $ 1 million in the zone over two years and pay up to $100,000 in licensing fees.

Meanwhile, in the mainland, the Philippines’ central bank was previously known to be reviewing the applications of a dozen operators vying to register and launch cryptocurrency exchanges in the country as recently as December. It remains to be seen if these operators have since switched tact to register in the economic zone instead.

The Philippines became one of the earliest nations in the world to publish regulations for cryptocurrency exchanges in early 2017. The deputy director of the central bank, appearing in a televised interview in October 2017, lauded the ‘pioneering regulation’ and said bitcoin, as a monetary instrument, is “fast, near real-time and convenient”.

UK Watchdog to Publish its Review on Cryptocurrencies Later this Year

Britain’s financial regulator and markets watchdog outline its policy thinking on cryptocurrencies with a review to be published later this year.

In revealing its business plan for the coming financial year, the Financial Conduct Authority (FCA) underlined cryptocurrencies as ‘an area of increasing interest for markets and regulators globally’. While admitting that cryptocurrencies do not directly fall under its regulatory scope, the FCA stressed that certain models of their usage bring them under its purview in a ‘complex’ landscape.

Pointedly, the FCA confirmed it would reveal its own take on cryptocurrencies, policy-wise, later this year. The regulator said:

We will work with the Bank of England and the Treasury as part of a taskforce to develop thinking and publish a Discussion Paper later this year outlining our policy thinking on cryptocurrencies.

The FCA is notably a member of the ‘Cryptoassets Task Force’ established by the British government in March 2018, consisting of the regulator, Her Majesty’s Treasury and the Bank of England (the central bank). The working group will explore and study the benefits and risks of cryptocurrencies, UK Chancellor of the Exchequer Philip Hammond said last month, helping the UK’s fintech sector to ‘grow and flourish’ in a regulatory climate that has broadly been supportive of blockchain technology and cryptocurrencies over the years.

On Friday, the FCA mandated firms offering cryptocurrency derivatives to comply with all applicable rules to be authorized, stating it would be a ‘criminal offence’ otherwise.

Earlier in February, the UK’s Treasury Select Committee, an influential group of cross-party members of parliament (MPs), launched an inquiry into cryptocurrencies in an effort to better understand them.

While the Treasury Committee confirmed it would look at risks and threats posed by cryptocurrencies to ‘consumers, businesses and governments’, committee chair Nicky Morgan stressed the group would “also examine the potential the potential benefits of cryptocurrencies and the technology underpinning them, how they can create innovative opportunities, and to what extent they could disrupt the economy and replace traditional means of payment.”

Committee member Alison McGovern added that the inquiry would help UK lawmakers and politicians to better educate themselves on cryptocurrencies before enforcing policies. “It is time that Whitehall and Westminster understood cryptocurrency better and thought more clearly about the policy environment for blockchain technology,” she stated.

Bitcoin Raise 7% to $8,460 Overnight as Cryptocurrency Market Rebounds

After dipping below $7,300 on most major cryptocurrency exchanges, the price of bitcoin has raised 7 percent overnight, increasing from $7,240 to $8,467, triggered by a variety of factors.

G20

Many analysts have attributed the recent increase in the price of bitcoin to the result of the 2018 G20 Buenos Aires summit, during which the Financial Stability Board (FSB), the global watchdog that oversees banks and financial networks as a representative of 20 major economies, stated that existing regulations on cryptocurrencies like bitcoin will be held and no additional restriction or regulation shall be issued.

FSB’s official report referencing FSB Chair and Governor of the Bank of England Mark Carney’s letter read:

“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets were to become significantly more widely used or interconnected with the core of the regulated financial system.”

Previously, up until this week, several analysts noted that the upcoming G20 meetup has contributed to the decline in the value of cryptocurrencies, as investors anticipated the G20 financial watchdog FSB to crackdown on cryptocurrencies and issue stricter regulations. Investors expected major economies to come together to regulate the global cryptocurrency market with harsher policies.

However, governments have decided to accommodate existing regulations on the global cryptocurrency market, which are already strict in regions like the US and Japan, and follow the regulatory roadmap of leading cryptocurrency markets to facilitate the rapidly growing demand for the emerging asset class.

It is highly unlikely that the G20 meetup was the sole factor behind the recent price surge of bitcoin and the entire cryptocurrency market. But, the cryptocurrency market was in need of an optimistic and positive development to secure an upward trend again, after being in a slump for over a week.

Consequently, the valuation of the cryptocurrency market recovered beyond $310 billion, subsequent to falling below $280 billion, and is eyeing to initiate a short-term rally.

In previous reports, CCN emphasized that the January correction would require several months to recover because many investors were hurt by the decline in the price of cryptocurrencies. In 2017, the cryptocurrency market was considered the path for short-term profits. In early 2018, investors have stated to view the market differently, and speculators or weak hands have left the market.

2018 saw significantly developments in bitcoin, Ethereum, and other major cryptocurrencies along with emerging blockchain technologies. Yet, the price has not represented the magnitude of developments that have happened in the space, most likely because speculators and weak hands were not interested in the technology, but rather in short-term profits.

Short-Term

In the short-term, given the continuous increase in the dominance index of bitcoin, it is highly likely that bitcoin will maintain its dominance over the market in a volatile period like this. Bitcoin’s dominance index is already at 44 percent, and has been increasing since February, as more investors have started to eye bitcoin as a safe investment over other cryptocurrencies.

Traditional Liechtenstein Bank Launches Cryptocurrency Investment Platform

Citizens of Liechtenstein, a country that has become rather famous for its cryptocurrency acceptance, will soon be able to purchase digital currencies directly from a bank. Given the royal family’s demonstrated interest in the asset class and the general willingness to embrace cryptocurrency development, the move is perhaps not too surprising.

According to a press release issued by Bank Frick on February 28, 2018, it will be offering a wide variety of cryptocurrencies on its trading platform effective immediately. The initial set of digital currencies available for purchase will include BitcoinEthereumLitecoin, Ripple and Bitcoin Cash.

The target audience of the bank likely comprises of high net worth individuals and institutional investors, or rather, the type of individuals that already have a sizeable amount of funds in various banking instruments.

For any cryptocurrency exchange or broker, especially those, security is an important consideration. As is traditional for any cryptocurrency exchange, Bank Frick has stated that it will store all of its customers’ cryptocurrency assets in cold wallets, or rather, on computers air-gapped from the internet for the most part. Other security features, however, were not detailed in the press release.

The financial institution in question is already a fully-regulated bank that complies with all know-your-customer related laws at the country and EU level. Thus, it is safe to conclude that the same identification requirements will be carried over for any investor looking to purchase any amount of cryptocurrency from Bank Frick.

The bank also confirms regulatory compliance in its statement,

“At Bank Frick, cryptocurrency investments are subject to the same strict statutory measures as traditional financial transactions,” and “Clients can only invest in cryptocurrencies once they have been fully identified and verified. The verification and identification process also involves checking the origin of the money used to invest in them.”

Even though Bank Frick is a financial institution that primarily caters to Liechtenstein citizens, it has announced that the platform will be available to any European entity interested in it. The Chief Client Officer, Huber Büchel, said,

“Our services are in demand from companies across the whole of Europe. This is because they know that we can offer them reliable support in implementing their business models with cryptocurrencies and blockchains in line with the existing regulatory framework.”

Furthermore, the bank has announced that it will be accepting foreign currencies in exchange for cryptocurrency assets. At this time, investors can transact in US Dollars, Euros or Swiss Francs.

Bank Frick joins a rather exclusive list of banks willing to not only adopt, but also facilitate the buying and selling of cryptocurrencies. With most financial institutions around the world heading in the exact opposite direction, it is clear that Liechtenstein’s banks have other intentions.

One crypto strategy that work: A basket of low market cap coins

I’ve been investing some energy attempting to thoroughly consider where the famous hockey puck will go in cryptocurrency money, and here’s one thought I think may work.

At the present time, in the event that you place $100 in an investment account, you’d be fortunate to get even $2 every year. However, with this move in cryptographic forms of money to Proof of Stake, the correct pick could net you $50 to $80 every year for that underlying $100 speculation.

Moving from Proof of Work to Proof of Stake is one major investigation happening now

The predominant digital currencies like Bitcoin and Ethereum work on verification of work. Diggers need to do genuinely confounded math issues to make sense of what the subsequent stage in the blockchain will be. Consequently, they get a mining reward, which is the essential type of swelling for generally monetary standards.

Verification of stake is unique. Rather than costly GPU-based or ASIC-based mining rigs, you simply run an ordinary, non-computationally-serious bit of programming on any sort of PC, and connect your “stake” — some measure of the digital currency that you are setting up as evidence that you are running the correct programming and won’t attempt to cheat the framework. In the event that you are found tricking, you lose the sum you set up for stake. This is essential in that now ordinary individuals who simply hold the cash can really get a loan fee on holding it.

Creating yield is a major ordeal

This diverts crypto from a negative convey resource (like gold, or placing cash in your sleeping pad) into one that really produces yield.

The world’s capital is frantic for yield nowadays, which is the reason money markets is so overheated, why pessimistic or close to zero financing cost loaning now exists, and why individuals are so stressed over resource value bubbles extensively. Individuals need to develop their capital and it has never been harder to discover reliable approaches to get it.

For example, take a gander at the eye-popping 11% rate of profit you would get for’s return in 1984!

The times of hazard less return were our folks’ age, and not our own. In any case, digital forms of money that utilization evidence of stake for accord have the guarantee of a steady 3% to 8% yearly yield, in light of the fact that as opposed to offer that to diggers to run the system, they can simply impart them to holders who will stake.

One system with unbalanced upside: A crate of low market top Proof-of-Stake coins

Evidence of Stake hasn’t been demonstrated to work at the sort of scale that Bitcoin or Ethereum have had yet. Crypto specialists have quite disparate suppositions on whether it will work at scale after some time, which is a hazard that is forestalling selection now.

In any case, as with anything new, it needs to begin some place, and that is the place coins like Decred and Navcoin are driving the route in the endeavor. Navcoin (at the season of composing) is around $100M showcase top, and Decred is around $220M. On the off chance that both of them can get the chance to top 10 cryptographic forms of money, that is a 10X in esteem from here. Clearly these things are dependably a ridiculously enormous if, however I like it as a wager with exceedingly topsy-turvy upside.

Navcoin yields around 5% every year, except Decred yields up to 31% exacerbated every year. That is entirely astounding. Yet, in the event that the coin itself can 10X in esteem, you’re taking a gander at half to 80% yearly yield on the underlying fiat you may use to purchase in. I like a one-time half increment in esteem, yet what’s far and away superior to that is an a half to 310% yield each year into what’s to come. Those yields stack as you increment your possessions in every digital currency also, which is another pleasant intensifying impact like naturally re-putting profits into a stock.

The rundown of PoS coins is entirely long, and a comprehensive survey of them is left as an activity to the peruser. A fragmented rundown of more well known ones notwithstanding the ones above incorporate Peercoin (one of the first to do it), Lisk coin (biggest by advertise top), Nxt coin , and numerous others. I’ve additionally observed perusing coin subreddits to be quite important—these coins have a tendency to live beyond words designer and group intrigue, and you can get an awesome measure on these things through their gatherings and subreddits.

Verification of Stake isn’t the main way you can get yield from these coins. NEO is another coin (named the Ethereum of China) that gives NEO wallet holders another coin called GAS, which at current time yields around 4.8%.

The considerable thing is whether you are an early holder of Ethereum, you’ll as of now get this impact hugely, if/when the Casper move up to Proof of Stake enters the photo one year from now.

At long last, I would suggest little sums (maybe with a dollar cost normal system) that you wouldn’t be disturbed about losing, and as a piece of a portfolio to such an extent that in the event that one Proof of Stake cryptographic money doesn’t work out (and be set up for most to stagnate or fall flat) you have a not too bad shot at owning the possible victor. The best thing about hilter kilter upside is that you can at most lose 1X, yet have the potential for significantly more on the flipside.