BitDigest - Monday June 10, 2019
The Headlines
G20 Communiqué Highlights Crypto-Assets
In a Communique published by the Japanese Ministry of Finance ahead of the month ending G20 session, the Ministry said that “technological innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy.” Highlighting that “crypto-assets do not yet pose a threat to global financial stability,” it warns that “we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT),” and formally supports the recently amended FATF Standards to virtual assets and related providers for AML and countering the financing of terrorism (CFT).
Iran Wants to Charge Real Pricing to Crypto Miners
Iran’s Deputy Energy Minister for Electricity and Energy said that energy bills for crypto miners should be calculated in real prices. In fact, Homayoun Haeri said crypto miners should pay their power bills as per the same rates considered for electricity export. Haeri made this statement as Iran attempts to reduce the $1 billion in subsidies the government pays to reduce the gap between real energy costs and the amount paid by consumers.
Russia Considers Creating Crypto Hub on Border with China
A proposal was submitted to create an offshore financial center on Bolshoy Ussuriysky, an island, located between the borders of China and Russia. Leonid Petukhov, the head of the Agency of the Far East for Investments and Exports, proposed the idea to establish a hub for cryptocurrency trading, crypto-related stock exchanges, and other foreign exchange markets.
Liechtenstein Begins Approval Process for Blockchain Act
The parliament of Lichtenstein passed the first step in approving the nation’s Blockchain Act. Acknowledging both the opportunities and risk, MP Günter Vogt said, “the law is an opportunity for Liechtenstein’s economy to take the lead in an emerging technology.” MP Daniel Oehry took a practical view warning that The technology is already there and it’s impossible to block technological progress. Thus, the role of the government is to create the legal framework within all participants can operate.” The bill now needs to pass two additional hearings before the parliaments can officially approve the legislation.
San Marino Addresses Blockchain Technology
The Republic of San Marino has issued guidelines covering blockchain-based organizations in the Italian located microstate. The decree outlined the difference between utility and security tokens by referring to the former as “vouchers for the purchase of services or goods offered by [an existing] Blockchain Entity.” Security tokens are representative of an underlying financial instrument and as such require government approval.
Market Data
EOS Falls on Centralization Concerns
A report from Weiss Ratings has led to a sudden drop in EOS. EOS fell 10% before a slight recovery on the downgrade suggesting that last week’s Block.One announcement supported concerns that the protocol is centralized. “EOS has serious problems with centralization, and their event last week did anything to alleviate that, so we’ve severely downgraded its technology score,” Weiss Ratings tweeted.
Bitcoin Mining Averages $0.05/kw Cost
In a new report on Bitcoin’s Mining Network, CoinShares found the market-average, all-in margin cost for bitcoin to be $0.05 per kw/h. At current prices, “the average miner is highly profitable”. They suggested “a conservative estimate of the renewables penetration in the energy mix powering the bitcoin mining network at 74.1%, making bitcoin mining more renewables-driven than almost every other large-scale industry in the world.“
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Bittrex Limiting Token Markets for US Customers
Bittrex has become the next exchange to limit available token markets for US citizens. The Seattle based exchange announced plans to block 32 digital currencies and said it would send an email communication that “provides guidance on what they can and cannot do with their affected Tokens/Coins in connection with this change before an affected market is no longer accessible.” Bittrex did not provide any reasoning for this action.
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BitDigest is a weekday news update on digital currencies and blockchain technology for friends and partners of Parsons & Whittemore, a single family office based in Rye Brook, New York. Receipt of BitDigest is by approval of the Author. The commentary, analysis, opinions and recommendations in this newsletter represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in this newsletter is obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. Neither the Author nor any of the Author's affiliates make any guarantee or other promise as to any results that may be obtained from reading this newsletter. While past performance may be analyzed in this newsletter, past performance should not be considered indicative of future performance. No reader should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. The Author is not making a solicitation or offer to buy or sell any securities of any kind.