South Korea has decided on exchanges. It's big. 💣
In my humble opinion...
it's more about control than you think.
"[Bitcoin's] mere existence is an insurance policy that will remind governments that the last object establishment could control, namely, the currency, is no longer their monopoly. This gives us, the crowd, an insurance policy against an Orwellian future" -@nntaleb
— Spencer Bogart (@CremeDeLaCrypto) January 22, 2018
Coin of the Day Let's fix shipping.
(CRYPTO: CXO) The shipping industry is crucial in the transport of goods from producers to consumers. As the products undergo the process of change of ownership, legally, the holder of Bill of Lading (receipt of shipment) is recognized as the owner of the goods in question. The Bill of Lading is conventionally sent via express courier services, which involves high costs and relatively long delivery times - not to mention exposure to theft. CargoX offers smart Bill of Lading on their blockchain platform, providing users with a digitalized and a secure Bill of Lading which can also easily be archived. CargoX threatens the existing shipping industry with its low costs and significantly shorter transfers time for Bill of Ladings.
Please calm down everyone. South Korea has come to a consensus about the whole crypto exchange ordeal, and it seems like it's going to be big.
ICYMI, the market's in a bit of a downturn no doubt thanks to South Korea's decision to tax crypto exchanges a whopping 24.5% (22% corporate tax and 2.2% income tax). Just to make yesterday an even more overwhelming day for South Korea, an anti-laundering probe found that big Korean banks made 36x more from crypto exchanges in 2017 than in 2016. Gulp. So, to recap, some South Korean exchanges aren't letting non-foreigners deposit money into their wallets, or anonymous users create accounts (that is, if anyone can even get a new account). Is it right for something that prides itself on privacy to demand personal information from its users? Some say that with the incredible amount of money going through their system, yes.
But there is good news at the end of this (well, it depends on who you ask). Six major South Korean banks are ready to provide services to crypto exchanges later this month, but here's the catch – the government requires exchanges to hand over their user's data. Exchange users will be required to provide their legal bank accounts to continue trading by January 30th – this is still a significant step in cryptocurrency history because South Korea is on its way to creating definitive, longer-term legislature around digital currency. At least they're decisive.
Traditional businesses are playing catchup to ride the blockchain/crypto wave. But there's a catch.
Can Bezos be stopped? There have been recent rumblings of Amazon creating their own crypto exchange (would we really be surprised?) after the e-commerce giant registered several crypto-themed domain names; but we're putting our money on the move as a mere legal protection game. Not that slapping the word "blockchain" on anything will make it instantly successful – and the Securities and Exchange Commission certainly agrees (uh oh). The SEC is scrutinizing companies that haphazardly throw "blockchain" into their name or business title after corporations like Long Island Ice Tea changed their name to Long Blockchain and subsequently saw their shares soar almost 300%. That's...a bit ridiculous. You know who doesn't need the crypto hype anymore? Coinbase – they overshot their 2017 revenue goal by 66% and have continued to reject VC offers repeatedly. That's pretty badass if you ask us.
Meanwhile, Microsoft, Hyperledger, and the UN have joined the ID2020 Alliance – the blockchain-based digital identity initiative which focuses on personal data on the blockchain. While we're not loving the hypocrisy of supporting user data ownership from companies that almost definitely harvest your info unknowingly, a significant use case here is fighting against human trafficking. So, we're giving them a huge pass. Oh, and it seems that TD Ameritrade was getting a bit envious of crypto's flexibility, as they opened 24-hour trading with specific ETFs including the S&P 500, Emerging Markets, and gold. Talk about FOMO.
Come together, right now. The IMF is calling for global cooperation around cryptocurrencies to help create productive legislature.
Huobi, a former Chinese crypto exchange (let's take a moment to mourn) is launching a token – but it's not an ICO. Just so you know.
Coin to Watch
We're seeing a bit of lag in the market concerning South Korea's good news, so perhaps take this opportunity to take another look at beloved Ripple (XRP).