South Korean regulators admit closing crypto exchanges may be 'impossible'

Leo Zhang

By Leo Zhang

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News

Impossible to Close Exchanges Say South Korean Regulators (Bitcoinist)

"In fact, according to the chairman of the South Korean Fair Trade Commission, Kim Sang-jo, closing exchanges is 'impossible in reality.'"

Joint statement from CFTC and SEC Enforcement Directors Regarding Virtual Currency Enforcement Actions (CFTC)

"When market participants engage in fraud under the guise of offering digital instruments – whether characterized as virtual currencies, coins, tokens, or the like – the SEC and the CFTC will look beyond form, examine the substance of the activity and prosecute violations of the federal securities and commodities laws."

Cryptocurrency ETFs Are Off the Table for Now, the SEC Says (Fortune)

"We stand ready to engage in dialogue with sponsors regarding the potential development of these funds. We believe, however, that there are a number of significant investor protection issues that need to be examined before sponsors begin offering these funds to retail investors."

Bank of Japan Looks to Massage Its Message as Inflation Edges Up (WSJ)

"The Bank of Japan is optimistic about hitting its 2% inflation target within two years and is considering how best to communicate any possible policy changes, say people familiar with its thinking."

Commentary

The Lightning Network Could Make Bitcoin Faster—And Cheaper (Wired)

"The opening of a channel gets broadcast to the blockchain and incurs the normal bitcoin transaction fee. The channel can stay open for however long—say, a month—during which time the two users can exchange as many payments as they like for free. When the time expires, the channel closes and broadcasts the final state of the pair’s transactions to the blockchain."

Why Is Volatility So Low? (Bloomberg)

"We checked in with seven experts, including a Nobel laureate. They cited ‘Minsky moments,’ chaos and crowded trades."

Cryptocurrency Doesn’t Have the Same Price Between Countries — Here’s Why (Hackernoon)

"The vendors know that their buyers cannot buy from vendors outside of the country; therefore, the only competition they have is the other local vendors. Also, with the local vendors, there will only be a handful of them at any given time, because procuring a vast reserve of Bitcoins is not an easy task."

7 Cybersecurity Trends to Watch Out for in 2018 (CSO)

"2017 wasn't a great year for cyber-security. We saw a large number of high-profile cyberattacks; including Uber, Deloitte, Equifax and the now infamous WannaCry ransomware attack. Despite the constant flow of security updates and patches, the number of attacks continue to rise."

This Is How Chinese Bitcoin Buyers Are Getting Around The Government Ban (Zerohedge)

"Of course, Chinese buyers who still want to participate in the market are doing so at significantly higher prices. On OTC platforms, prices are 10% to 20% higher than the prices on traditional exchanges. On Jan. 18, when bitcoin was trading at $11,730 on Coinbase, the biggest US brokerage, the lowest price on the Huobi OTC platform was 84,000 yuan, or $13,085."

Technical

Forget Viruses or Spyware—Your Biggest Cyberthreat Is Greedy Cryptocurrency Miners (MIT Technology Review)

"This week, cybersecurity firm Check Point published its regular Global Threat Index. It shows that Coinhive, a piece of software that uses processing power on someone’s device in order to mine cryptocurrency, has become the most prevalent form of malware on the Internet."

Cornell IC3 Researchers Propose Solution to Bitcoin’s Multisig “Paralysis” Problem (Bitcoin Magazine)

"IC3’s solution proposes replacing a trusted third party, such as a lawyer or a bank, who would put money in an escrow, with a trusted hardware solution that retains control of a master key to the funds."

Updates

Bitcoin BitGo Engineer announces that as of this morning there are 89 channels on Lightning Network mainnet. Twitter

Cardano Michael Parsons spoke on BBC World News about cryptocurrencies and the need for regulation from banks and governments. Outlined importance of the balance between regulation and personal privacy, plus the importance of KYC and how value is derived from use cases of the technology. Forum

Vertcoin Jern Jernsen: “We have heard your voices and are prioritizing communications with exchanges that will bring more volume to our network, as well give access to the masses who previously had none.” Reddit

Decred Decred and the meaning of Governance at TNABC 2018. Youtube