Russia’s Ministry of Finance Legalizes Cryptocurrency Trading, Central Bank Disagrees

Russia’s Ministry of Finance introduces a digital assets regulation bill legalizing cryptocurrency trading despite disagreement with central bank.

The Ministry of Finance of the Russian Federation (Minfin) has presented the Digital Assets Regulation Bill which defines and establishes a regulatory system for cryptocurrencies, ICOs, mining and trading, local media outlet TASS news agency reported today Jan. 25.

Notably, the central bank of Russia disagrees with Ministry of Finance that cryptocurrency exchange should be legally accepted. According to the central bank, the digital currency trading rules should be only applied to tokens that would attract financial investments.

However, the authors of the bill are sure that the legal status of cryptocurrency exchange would reduce the risks of fraud and will provide fiscal transparency, which is expected to increase tax revenue of the government. In contrast, banning cryptocurrency trading would cause a situation when the currency is used for unlawful purposes.

According to the terms of the bill, cryptocurrency and tokens represent a digital financial asset which are not allowed to be used as payment in Russia.

As for cryptocurrencies and tokens exchanged for other cryptocurrencies, Rubles and foreign currencies, Minfin claims to protect the rights of unqualified investors by allowing trading only via authorized cryptocurrency exchange operators.

Concerning ICOs, tokens can be issued by legal entities or sole proprietors for the purpose of fundraising. ICOs must be accompanied with some legal documents disclosing the details of the contract such as issuer’s full name, location, official website and price of a token.

According to the document, non-professional investors are not allowed to invest more than 50,000 Rubles, equivalent to about $900 in each ICO.

In addition, the final version of the bill was earlier reported to be released no later than July 1, 2018, according to Forklog.

Ethereum Price Technical Analysis – ETH/USD Remains Supported

Key Highlights

  • ETH price is slowly recovering and is currently trading above the $1050 level against the US Dollar.
  • There is a bullish trend line forming with current support at $1040 on the hourly chart of ETH/USD (data feed via SimpleFX).
  • The pair may slowly move higher towards the last swing high of $1089 and the $1110 resistance area.

Ethereum price is in a bullish trend against the US Dollar and Bitcoin. ETH/USD’s dips remains supported on the downside at $1040 and $1020.

Ethereum Price Support

There was a decent rise in ETH price above the $1050 level against the US Dollar. The price traded as high as $1089 from where a downside correction was initiated. It broke the 23.6% Fib retracement level of the last wave from the $947 low to $1089 high. There was even a break below the $1050 support area, but the downside move found support at $1010.

The 50% Fib retracement level of the last wave from the $947 low to $1089 high acted as a major support. Moreover, there is a bullish trend line forming with current support at $1040 on the hourly chart of ETH/USD. The pair also stayed above the $1000 support and the 100 hourly simple moving average. It recovered later and is currently trading above the $1050 level. As long as the trend line support at $1040 is intact, the price may continue to rise in the near term.

Ethereum Price Technical Analysis ETH USD

A downside break below $1040 could push the price towards the 76.4% Fib retracement level of the last wave from the $947 low to $1089 high. On the upside, the price will most likely retest the $1089 high. Above $1089, the price may even test the $1110 resistance.

Hourly MACD – The MACD is slowly moving in the bullish zone.

Hourly RSI – The RSI is currently just above the 50 level with no bearish sign.

Major Support Level – $1040

Major Resistance Level – $1090

 

Charts courtesy – SimpleFX

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Bitcoin Cash Price Technical Analysis – BCH/USD Consolidating Below $1720

Key Points

  • Bitcoin cash price is consolidating in a range above the $1500 support against the US Dollar.
  • There is an ascending channel forming with support at $1600 on the hourly chart of BCH/USD (data feed from Kraken).
  • The pair has to break the $1720 resistance level to gains upside momentum toward $2000.

Bitcoin cash price mostly traded in a range above $1500 against the US Dollar. BCH/USD has to move past $1720-1750 to move further higher in the near term.

Bitcoin Cash Price Support

There was no major upside move in bitcoin cash price above the $1650 level against the US Dollar. The price mostly traded in a tiny range with a slight bullish angle toward $1700. There was a low formed at $1500 from where the price moved higher. There was a slow and steady upside move above the $1600 level and the 100 hourly simple moving average.

Buyers push the price above the 23.6% Fib retracement level of the last major decline from the $2085 high to $1500 swing low. Moreover, there was a break above a major bearish trend line with resistance at $1650. It opened the doors for more gains toward $1700. At the moment, it seems like there is an ascending channel forming with support at $1600 on the hourly chart of BCH/USD. On the upside, the channel resistance is at $1720. It also coincides with the 38.2% Fib retracement level of the last major decline from the $2085 high to $1500 swing low.

Bitcoin Cash Price Technical Analysis BCH USD

Therefore, a break and close above $1720 is needed for an upside push toward $1800. Above $1800, the price may head toward the $2000 resistance level.

Looking at the technical indicators:

Hourly MACD – The MACD for BCH/USD is positive, but there is no major bullish signal.

Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently moving higher above the 50 level.

Major Support Level – $1600

Major Resistance Level – $1720

 

Charts courtesy – Trading View, Kraken

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Ripple Spreading out Its xRapid Platform Usage and the Companies Growing Strategy

XRP future

Ripple and XRP –

Upon being questioned on Twitter about the actual utility of XRP, Brad Garlinghouse the CEO of Ripple replied:

“Over the last few months, I’ve spoken with ACTUAL banks and payment providers. They are indeed planning to use xRapid (our XRP liquidity product) in a serious way.”

For the time of the event, being so direct to response to criticism by Garlinghouse seemed like a hastened move, but with the two new partnerships being declared out using the xRapid system, the move in fact looks more clearing out in favor of the CEO.

One of the main points of contention when it came to assessing Ripple as a company and XRP as a cryptocurrency was the linkage between the software and platforms that Ripple is developing and the level at which XRP was a required part of these systems. A space of could-give birth to mistrust which was growing rapidly among some elements of the cryptocurrency community centered around the idea that XRP was a way for Ripple to fund the company but not actually key to these payment systems. An idea that was often fueled by wariness of centralization and a conspiratorial edge that is often seen among early backers of bitcoin and other cryptocurrencies.

During last year, there were many moments when there was a feeling of weight coming from that side of the table as it was not specified or announced to what degree XRP was used by partners as they tried out the platform.

However, this year was different and much more dynamic for the team and company behind Ripple. This time around, the firm has signed down various partnerships and the usage of XRP being explicit.

Around the beginning this month, Moneygram [one of the global leaders in money transfer and remittance] confirmed the trial partnership. Another one just now is with MercuryFX and IDT Corporation. Despite the fact that these events came just after the value of XRP catapulted but was followed up with spiky fall, it does indeed add more to Ripple’s story and its potential.

If this flow continues the firm is able to add more partners to its list, then the dynamic that has currently existed in attempting to judge XRP’s value will completely change. Ripple since its debut had a unique marketing strategy creating a leading path in the crypto-ecosystem. It has focused on financial institutions as potential partners rather than opponents to be toppled, not shied away from ditching mining as part of XRP’s design and focused crystal clear goal and using case rather than trying to market themselves as a totally transformative technology. It looks like this strategy may be paying off.

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No-Fee Crypto Trading: Robinhood Trading APP for the Win!

fee less trading

The giant stock-treading phone application Robinhood after gathering up more than 3 million users has turned its eye towards crypto-trading.

From February, the fee-less digital asset trading ground will be available on the platform giving the opportunity for the user to pair Bitcoin and Ethereum on the way they see fit [buying/selling] with no additional transaction fees – compared to the 1.5 – 4 percent fees in the US coming from Coinbase.

“We’re planning to operate this business on a break-even basis and we don’t plan to profit from it for the foreseeable future” says Robinhood co-founder Vlad Tenev. “The value of Robinhood Crypto is in growing our customer base and better serving our existing customers.”

As we mentioned above, the 3 million users that Robinhood already has could very soon be just a small marked that was passed very quickly. A more resting and simplified created traded area for BTC and ETH combined with option trading, ETF and traditional stock in just a single app – the platform could hoist the crypto-rush even more.

Robinhood is also immediately adding charts and custom price alerts for 16 different coins: bitcoin, ether, litecoin, ripple, bitcoin cash, bitcoin gold, ethereum classic, Zcash, dash, monero, stellar, lisk, Qtum, OmiseGo, NEO, and dogecoin.

Almost 4 years ago, when the app was born – various figures that did not believe in its strategy thought that making investment so easy for millennials could be a fire to play with as from that point individuals with no understanding about stock market or other fields could just deposit money from the bank account and hit the buttons.

The issue above is not something to weight your mind on as the cryptocurrency investing gold-rush is even a better example of fears being formed: as an example – Ethereum token price against the US Dollar in just a year has grown from $10.0 (ETH/USD) to around $10,000 now. The movement from the app many are considering equal to a warning alarm for exchanges to come up with plans and improvements as competition is stepping in.

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Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano: Price Analysis, Jan. 25

As the market seems to be recovering, see what orders might be a good idea (or not).

The massive upwards movement in cryptocurrencies over 2017 has not gone unnoticed. The participants at the World Economic Forum (WEF) in Davos are being questioned about cryptocurrencies and Cointelegraph has been one of the main voices representing the fraternity.

The traditional investors are still not willing to accept the rising clout of the cryptocurrencies and are pushing for tighter regulation. Only recently, Nordea Bank banned its employees from owning Bitcoin by Feb. 28. However, this move is facing strong opposition from the large unions.

Even the fears of a cryptocurrency ban by South Korea gathered a massive petition opposing the move. Finally, the Korean government only banned the traders from using anonymous bank accounts for cryptocurrency trading.

The classical investors and regulators fail to understand that these kinds of bans are unlikely to dent the popularity of the cryptocurrencies.

BTC/USD

Bitcoin is currently in no man’s land. It is facing resistance at the down trendline one. If the bulls succeed in breaking out of this resistance, we can expect a rally towards the down trendline two. Aggressive traders can trade this pullback.

BTC/USDOthers should wait for a confirmation of a bottom formation because, if the bulls fail to sustain above the down trendline one, the likelihood of $10,000 levels breakdown increases.

Unlike the previous falls, this time, the BTC/USD pair is struggling to hold on to higher levels. With the price quoting below both the 20-day EMA and the 50-day EMA, the trend remains down to range bound.

The downtrend will reassert itself if the price breaks down to $10,000 levels. So, the swing traders should wait and watch for the next few days for the trend to change from down to up before initiating any long positions.

ETH/USD

Ethereum is in a pullback in an uptrend because it is still quoting above both the 20-day EMA and the 50-day SMA. Additionally, it has successfully held on to the uptrend line, which is another positive sign.   

ETH/USDBut the 20-day EMA has flattened out, which points to a range bound trading action for the next few days. The support of the range is likely to be at $900 levels, whereas, the resistance will be at $1,160 levels.

The ETH/USD pair will become negative only after it breaks down of the trendline and the 50-day SMA, which is at $845.

Long positions for the medium-term can be initiated on dips to $1,000 levels, with a stop loss at $840. We believe that if the 50-day SMA holds, the cryptocurrency will attempt to resume its uptrend and rally to the highs. This is a risky trade, hence, please keep the position size small.

BCH/USD

The traders, both the bulls and the bears, are not taking any keen interest in Bitcoin Cash. As a result, it has been trading in a small range since Jan. 23.

BCH/USDSupport on the downside exists at the Jan. 17 low, $1,364.9657. On the upside, as the moving averages have completed bearish crossover, the 20-day EMA is likely to act as a resistance. Additionally, the $2,072 levels and the downtrend line will also act as a strong overhead resistance.

We don’t find any tradable setup on the BCH/USD pair.

XRP/USD

Ripple has formed a doji candlestick pattern on both Jan. 23 and Jan. 24. Even the price action currently points to a very small range day.

XPR/USDAs forecast in our previous analysis, the XRP/USD pair is likely to remain range bound between $0.87 and $1.74. A trading opportunity will pop up only if the supports of the range hold or if the cryptocurrency breaks out of the overhead resistance. We should wait until then.      

IOTA/USD

IOTA’s range has been shrinking for the past two days. It has formed successive inside day candlestick patterns on Jan. 23 and Jan. 24. Today, it is trying to resume the downtrend.

IOT/USDOn the downside, support exists at $1.9232 levels. If this breaks, the IOTA/USD pair can extend its losses to the Dec. 22 low of $1.1.

The first signs of a recovery will be seen once the price breaks out of $3.032 and the down trendline of the descending triangle.

If the support and the overhead resistance levels hold, we may see a few days of range bound action.

LTC/USD

Litecoin has held on to the critical support level of $175.199. However, the bounce doesn’t have any strength, which shows a lack of interest in buyers.

LTC/USDIf the bears succeed in breaking down the supports, a fall to $140.001 is likely.

On the other hand, the first signs of a recovery will be on a breakout above $215 levels.

Aggressive traders can buy the LTC/USD pair at $187, which is just above the high of past couple of days. The stop loss for the trade can be kept at $163 and the target objective is $215.

However, this is a very risky trade, hence, please place it only with less than 50 percent of the usual allocation.

XEM/USD

NEM has held on to the 0.86 levels for the past few days, but the bulls are unable to push prices above the down trendline.

XEM/USDThis is likely to lead to another attempt to break down of $0.86 within a couple of days. If the bears succeed, a fall to the Jan. 16 lows of $0.55134 is likely. The 20-day EMA has turned down and is likely to complete a bearish crossover if the support breaks.

We don’t find any bullish setups on the XEM/USD pair with price trading below the trendline and both the moving averages. A change in trend will be signaled once it rallies above $1.21.

ADA/BTC

Cardano is again attempting to break out of the 0.00006 levels. If successful, it is likely to rally to the overhead resistance at 0.00006915. A very short-term trader can buy at 0.00006 with a stop loss of 0.00005. This is a risky trade, hence, please attempt it with less than 50 percent of the usual position size.

ADA/BTCSwing traders should wait for a breakout of the 0.00006915 levels to initiate any long positions. We believe that unless the sentiment turns bullish for the cryptocurrencies, the ADA/BTC pair will find it difficult to breakout of the overhead resistance and may drift down to 0.000047 to 0.000049 levels again, which can be a good level to initiate long positions.

Serenity Prepares for ICO on 25 January

Serenity blockchain platform announces the start of the main ICO period, which will start on 25 January 2018 and will last for a total of six weeks, ending on 7 March. The main ICO period offers a unique opportunity for investors to purchase Serenity tokens with a 40% discount.

The pre-sale round (Pre-ICO period) that previously took place, resulted in $524,790 being raised.

Vasily Alexeev, CTO Serenity:

“At the Pre-ICO stage, we received valuable feedback from our investors and thank all for the constructive criticism. After the Pre-ICO, we worked on improving the website and positioning the project, making it more understandable for all market participants. I think we managed to change this, as there are already a large number of applications for participation in the ICO and the community actively supports the idea.”

Serenity is the first escrow broker-platform for financial markets that protect investors’ funds from fraud and trading interferences by using smart contracts.  The project is a platform that includes several functional modules: escrow, blockchain transaction recording, quote verification and a trading exchange.

The idea is based on the practice of segregated accounts, that is, keeping deposits separate from the funds used for trading, which is required by the FCA (the British financial regulator), and is translated into the language of the blockchain. The idea of recording transactions in the blockchain has also emerged under the influence of traditional regulations, such as financial legislation in the EU (MiFID II and EMIR). These regulations have always demanded reports on all trade operations, but have had no way of storing them efficiently and reliably.

In addition, the project’s scope will include the creation of a proprietary trading exchange for quick entry into the Serenity system and cryptocurrency purchases.

The company plans to raise $19 million to develop the platform. The project will be launched in separate stages, with the exchange’s launch being promised for May 2018. The prototype has already been published on the website.

The ICO will be held in one stage, from 25 January to 7 March. The opening price of a token is 0.0001 ETH. The token name is Serenity. The stock ticker is SRNT. Meanwhile, the token’s release on stock exchanges is planned for immediately after the completion of the ICO, i.e. just after 7 March.

At the time of writing this press release, the SRNT token has been listed by the largest Russian exchange, Yobit. Talks with several more exchanges are currently underway.

The project has been supported by major brokers from the Forex and binary option industries, including IQoption, Liteforex, NordFX, as well as Alexey Kutsenko (Founder of Tools for Brokers), Yagub Rahimov (adviser of the ICO project nagaico.com and founder of AtoZForex), and many others.

During the ICO, tokens will be sold at a discount of up to 40%.

The ICO started on 25 January and will go on until 7 March 2018.

We cordially invite you to take part.

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Bitcoin Price Watch; Tonight’s Key Levels

We’re quickly closing in on the end of the European session in the bitcoin price and it’s about time to put together our second price watch analysis of the day. This morning, we had one wish – that price would find its footing in and around the levels at which it opened the session and that, in turn, we’d be able to use these levels to try and build into a sustainable upside position.

Unfortunately, we didn’t get what we were looking for.

Price hasn’t been able to gain any real traction during the session and, almost immediately subsequent to our primary analysis, things started to dip.

We’re currently looking at what could be a relatively flat evening session (which equates to the US afternoon session for our North American readers) and, if this is the case, intrarange trading might be the order of the day.

We can’t say that for certain of course, but we’ll cover our bases and put forward an intrarange approach anyway, just to complement our primary breakout strategy in the event of a shift in a approach.

So, with all this noted, let’s get our key levels in place. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand right now. It’s a one-minute candlestick chart and it’s got our primary range overlaid in green.

As the chart shows, then, the range we’re looking at for the session is defined by support to the downside at 10916 and resistance to the upside at 11132. A close above the latter will signal long towards 11250, while a close below the former will signal a short entry towards 10800.

From an intrarange perspective, long on a bounce from support with a target of 11132 and short on a correction from resistance towards 10916.

Let’s see what happens.

Charts courtesy of Trading View

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John McAfee: We’ll Screw up the Future, But It’ll Still be Better Than What We Have Today

An interview with John McAfee about the coins he promotes, Twitter hack, promises he’ll keep and much more.

John McAfee has already established himself as a prominent figure in the cryptocurrency world. With his background in programming and cybersecurity, he seems to be pretty fascinated by the decentralized technology and what it has to offer to the world.

We had a talk with him during the Cruise Asia, that took place Jan. 15- 19, and found out how he researches the coins to promote, whether he has any regrets about them and why Blockchain is the best thing that happened to the humanity.

Crypto Daria: You’ve got 700,000 followers on Twitter. Do you realize how big of an influence you have in the crypto market and do you think it’s positive?

John McAfee: Of course! I mean for the cryptocurrency community that’s a fairly large number of followers. But it’s not just that. I also speak at all the major conferences, I’m close friends with Jihan Wu of BITMAIN – the main manufacturer of, virtually, all the Bitcoin miners, Roger Ver, for instance, or Brock Pierce is my party animal that I party with. I have as much influence in that arena as I do with my followers. In fact, even more. To sit down with Roger Ver and Jihan Wu and talk about Bitcoin Cash – I think vastly is much more influential than tweeting to 700,000 people.

John McAfee

John McAfee speaking in front of the public during the Cruise Asia, January 2018

CD: How do you decide which coin to promote? How do you research them?

JM: First and foremost are the principles able to actually produce what they say. Can you develop the product in a timely fashion? Do you have the team in place that understands the Blockchain, the software, the marketplace? But more importantly is something that I would like to use myself. Like Outings – hell, yes! I would love to use that program. Okay, I’ll pay a dollar to get the info I can get from the app. The same with coins. I would love to have that facility – the KWHCoin. I mean I’ve had a lot of homes that were off the grid. There’s no greater nightmare than having more electricity than you can use and this goes to waste; or not having enough. So to be able to transfer back to the electric company through tokens and someone in a place that has access to let me buy from them. Who wouldn’t want that facility? So if it’s something I personally want – yes, if they can do it, it’s a great idea, if it’s helpful to the society – there is something I would like to pass on to my children. Then, yes. I would talk about it. Because if I don’t talk about it, then who else? Nobody’s reading those white papers.

CD: Do you evaluate coins differently with time?

JM: Yes, of course. Everybody makes mistakes, you know. In the beginning, they said that’s a great idea and then they don’t pull this through.

CD: Has anyone ever tried to pay you for mentioning their project and if yes, what were the projects?

JM: I would say definitely they tried to pay me. I’m not going to talk about my personal finances where I make my money or from who. I set up on stage as it’s my business and it should be everybody’s business. And actually, I think it’s rude to even ask such questions of people. No offense.

CD: Do you feel responsible for the weight of your words and subsequent pump-and-dumps that follow?

JM: Absolutely not. Let’s imagine: if I see something that I think the world needs to know about – I’m gonna say it. No sense in me being the only to know. I don’t want to whisper it to my friends. Isn’t it far worse? The fact that people take that and pump it, and dump it – that’s their business, not mine. I mean look at on the Verge token. I said Verge would probably double in price in the next few months, well it went up fifteen thousand percent.

It wasn’t my fault that people go and buy it at twenty cents. I thought two cents was a lot of money! It’s not my problem, you know, I’m just recommending. Because it [company] does have some privacy things to it [coin] and it has the possibility with the race protocol to actually become a real privacy point. When it’s going to happen now, I don’t know. But it’s sure not worth what it is.

Verge Charts

Coinmarketcap

And for the other people: if people want to be greedy and to look at this arena as simply a way to make money – well then they deserve what they get. They could look underneath this and say: this is a revolution! Unlike anything that the world has ever seen. Then forget the money! Why don’t you look at the utility, the power of the specific token or coin and how it could change your life and the life of your friends, your loved ones and your children. I’m not gonna stop doing that. You can throw as many rotten tomatoes at me, as you want; call me any names you want – names don’t hurt me. You think I’m gonna care what people call me, what they say about me? I could care less.

CD: Of course. Do you have any regrets or disappointments about the coins you’ve mentioned?  

JM: Yes, of course. I regret about FINA coin.

I found out later that one of the founders was a member of a Nigerian criminal organization. It’s hard to know all the facts until someone says “By the way, we resources and found this out.” I immediately tweeted and said that I apologize and I took back my recommendation.

But this is the nature of the business. I mean if we’re in a brand new economy, brand new paradigm if I don’t step in mud bubbles than I’m not doing my job.

CD: What’s your number one piece of advice for the crypto investors?

JM: There is none. Because whatever I recommend today will change tomorrow. There’ll be something that comes and replaces it. I believe that the future of cryptocurrency is in the new emerging coins technologies and creative ideas that are coming out to through the ICOs. And everybody’s overlooking this. People seem to be only concerned with making money – “Is Bitcoin going to rise or fall?” “Is Ethereum going to rise or fall?” “Is there going to be another fork in Bitcoin?”,”What’s that gonna be?” “Is it Bitcoin or a Bitcoin Cash?” Screw that, this has nothing to do with these things. It has to do with what’s coming behind us, what’s emerging from the ground and what is going to change our future. We’re forgetting that these are real, life-changing, culture-changing events, attitudes, products, creations. And we have got to watch them. If not – we’re gonna miss out on something and the good stuff is gonna get swamped and drowned in the garbage. That is the overall sea of ICOs. We already know, what Bitcoin is, we know what Ethereum is. Fine, do what you want with it. Start digging into the new technologies in there. There’s going to be a Henry Ford, there’s gonna be the concept equivalent to the railroad, there’s going to be something that will change our lives in such a beautiful way, that if we miss it, we will regret it for a lifetime.

CD: Are you worried about the recent Bitcoin price dip, given your promise in case it falls?

JM: Not at all. When Jamie Dimon announced that Bitcoin was a fraud, Bitcoin dropped 40 percent in a matter of hours. I didn’t worry then, I’m not worried now. It has its own life.

CD: What made you make that promise in the first place?​

JM: I was on television and it just came out. They said “Will the Bitcoin fall?” And I said: “I’m gonna eat my eat my genitals if it’s not five hundred thousand dollars. And this is back when Bitcoin was four thousand dollars. It’s since gone way beyond what I thought it would go. I thought i was wrong, so my projections are way wrong, I changed it to a million dollars. You will see, it will happen.

CD: In your opinion, what prompted the recent market fall and what to expect next?

JM: The same thing that prompted the original crash of Bitcoin, which was JP Morgan, one of the world’s largest banks and certainly America’s largest bank. All banks all terrified. Everybody’s wallet is a bank now and we won’t need banks anymore. Banks are going to disappear, if they do not do something.

CD: Your Twitter account seems to be a constant victim of hacks. How does it happen?

JM: It’s only been hacked once. I know exactly how it happened, because the people who did it contacted me. They used a new technique called SIM Swapping. At first I thought they didn’t hack my account – I can’t be active. I thought they hacked Twitter, but what they did, they hacked my carrier AT&T, which is the largest carrier.  So what they did, using social engineering, kept calling local offices until they found the sympathetic hero. “Oh, my name is John McAfee, I lost my SIM cards, I have a new one. Can you please change my account to this?” And eventually someone did. My phone stopped working. Then they went into Twitter and say I forgot my password, please, send it to my phone.

And so they sent a code to what is supposed to be to my phone but it’s their phone. They use that code, change my password and they were on for two and a half hours while I struggled to get back in. I finally hacked myself back in and through the mail. I’ve never heard of that technique before. It’s a brand new social engineering technique of hackling. So it was not Twitter, it was AT&T. I complained to AT&T; they did nothing. What I did is that I took off two-factor authentication, if I had not had  two-factor authentication, they could not have hacked me. So now, what used to be the best way to protect yourself, turned out to be the worst, because if you have your phone number in there, then they can get it; they can go in and send that. If you don’t have a phone number, they can’t send the code anywhere, and they’ve got to figure out my password, which is impossible.

CD: How do you perceive the core philosophy behind cryptocurrency?

JM: Well the core philosophy is one of the greatest in the world – “let’s take power away from the centralized agencies!” When power coalesces, when it compresses into a large entity, it always becomes corrupt. And power always corrupts whether you’re an individual or a corporation. So it [the Blockchain technology] takes that away and distributes that power to us. So what this means is that the entire structure of civilization is going to unwind and will reassemble itself in a way that it should have been from the very beginning. We, as people, having our own freedom, our own power. Not having to ask you permission or the government’s permission before I can do something. Like send somebody money or receive money, or buy something as long as I’m not harming you or my neighborhood. Then why the hell should I ask permission from anyone to do anything? So this is what’s happening, we’re entering a permissionless world, where when you reach adulthood, wherever that is, in whatever country and it’s different, in Central America, it’s the age of 12 (*note: in the countries of Central America the legal age varies from 14 to 18), in America it’s 21, when you become an adult, you become your own master. You don’t need to ask anybody’s permission to do anything. This is the change and this is what’s going to take this world and give us finally the opportunity to create Eden, to create perfection. Now we will screw it, we always do, but even in screwing it up – it would be far better than what exists today.

CD: And how do you see the future of the crypto industry?

JM: It’s going to explode. I mean we’re just in the infancy right now. As I mentioned every aspect of life is getting its own coin and it should have its own coin. It needs its own coin. Because every coin has a different function or should have. So it’s going to be like the Internet when it first began. Only a hundred times more profound, more deep and will have an impact that I cannot possibly ignore you foresee even five years out.

CD: Thank you for taking the time!

*Note from the Cointelegraph editorial team

South Korea Intelligence Creates Task Force to Oversee Local Cryptocurrency Exchanges

South Korean financial authorities in cooperation with Korea Financial Intelligence Unit (KFIU) have created a task force to oversee cryptocurrency exchanges.

South Korean financial authorities in cooperation with Korea Financial Intelligence Unit (KFIU) created a task force to oversee cryptocurrency exchanges and to ensure cryptocurrency businesses are compliant with existing regulations, authorities announced on Jan. 25. It will collaborate with local cryptocurrency exchanges to ensure that money laundering and fraudulent activities using cryptocurrencies do not occur in the local market, according to KFIU.

Local financial authorities will also require six major South Korean banks that have decided to support cryptocurrency exchanges to report to KFIU if suspicious activities are unraveled. Local banks including Shinhan Bank, Nonghyup, IKB, Woori Bank are expected to file regular reports to the KFIU on suspicious trading and prevent financial crimes.

Stricter regulations, optimistic

After officially refuting the Justice Ministry’s cryptocurrency trading ban proposal, the South Korean government has allocated significant resources to regulate the local cryptocurrency market and provide a more stable and robust infrastructure to investors within the market.

For many weeks, the majority of South Korean investors in both the traditional finance sector and cryptocurrency market have been outraged by insider trading initiated by government officials working for the South Korea Financial Services Commission.

Last week, Choi Heung Sik, director of the FSC, admitted that employees of the agency sold Bitcoin immediately before the false cryptocurrency trading ban announcement of the country’s Justice Minister Park Sang-ki and bought Bitcoin after the announcement.

At the time, Hong Nam-ki, head of the state coordination division, said:

“The government is currently investigating into the several government officials that were alleged to have initiated insider trading. Given that it is not appropriate for a government official to trade cryptocurrencies, the agency will encourage its employees to prevent from trading cryptocurrencies in the short-term.”

In the aftermath of the South Korean cryptocurrency trading ban fiasco, the approval rating of President Moon Jae-in hit an all-time low below 60 percent, and the government was heavily criticized for negligence.

Starting this week, to counterbalance the mishandling of the false cryptocurrency trading ban by the Justice Ministry, the South Korean government and financial authorities have begun to regulate the local cryptocurrency market and businesses strictly. Previously, the South Korean government was hesitant towards regulating cryptocurrency businesses because it feared the South Korean people would consider it as an endorsement of the market.

Regulation is beneficial to local investors

Up until last week, South Korean investors feared that banks would cut money flow into the market by disabling bank accounts, as the Justice Minister claimed in his controversial premature statement about the cryptocurrency market.

Concerns of local investors only intensified when Kookmin Bank announced the closure of virtual bank accounts deployed on cryptocurrency exchanges.

However, since then, six major South Korean banks have provided support to local exchanges, KFIU has started to regulate the market and the government has begun to consider cryptocurrency businesses as legitimate financial service providers.