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Cryptocurrency Morning Brief

Jul 05, 2018

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  • Spain’s governing party believes that the government should use blockchain to operate the country’s public administration more efficiently. Last week, 133 deputies form the Popular party submitted a blockchain proposal which recommended that the government use blockchain to improve internal processes, traceability, robustness and transparency. The proposal also believes that the technology will bring extra revenue to the administration. Additionally, lawmakers recommended blockchain models to lower costs, increase productivity and encourage specialized employment.
  • Transaction costs for Ethereum have been much higher than usual over the past few days. It is reported that miners have been collecting 10x more fees than average over the past 5 days. It is reported that this increase is caused by a cryptocurrency exchange China, FCoin, which has inappropriately incentivized users to deposit tokens. As a result, there has been an influx of ERC20 tokens. The reason for the deposits is because FCoin is letting users vote via depositing tokens for its next cryptocurrency listing. The exchange’s voting process is a cumulative deposit number ranking process where each deposit of a token counts as a vote towards the listing. Blockchain data from ‘Gaz Guzzlers’ section of EtherScan allegedly show a correlation between the top voted tokens on FCoin and the ‘Gaz Guzzlers’. The gas prices, which are usually 5 Gwei, have risen to 50 Gwei because users on the Ethereum network have brought their transactions to the front of the pending transaction line. This has raised the average fee from USD$.20 to USD$3.50 within 48 hours.
  • Thailand will govern initial coin offerings (ICOs) with a new rule which takes effect on July 16th. Any project that wishes to conduct an ICO must file an application with regulators before the token sale. However, Thailand’s SEC will first screen ICO portals, where ICO token sales take place. Approved ICO portals will be responsible for screening ICOs primarily and then the SEC will make a final decision.
  • Malta has established a comprehensive legal framework for cryptocurrencies. The parliament of Malta has passed three bills regulating cryptocurrency activities: the Malta Digital Authority Act (MDIA), the Innovative Technological Arrangement and Services Act (ITASA) and the Virtual Financial Asset Act (VFA). Malta’s Junior Minister for Financial Services, Silvio Schembri claims that the country is the first to provide legal certainty to the cryptocurrency field. The VFA will regulate ICOs and states that each issuer needs to make his/her financial history public. The MDIA is setting up an industry-specific regulatory body. The ITASA defines blockchain enterprises and recognizes them under the law.
  • Independent Reserve, the first regulated cryptocurrency exchange in Australia is expanding and will be listing Ripple. The platform also allows trading in Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Users can purchase Ripple in $USD, $AUD, and $NZD. Adrian Przelozny, Independent Reserve’s CEO has said that adding Ripple is in line with its strategy of adding high quality digital currencies. Independent Reserve is Australia’s first cryptocurrency exchange that is regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC) which is one of the world’s leading regulatory bodies focused on monitoring cryptocurrency trading platforms.