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German Financial Regulator Targets Illegal Bitcoin ATMs: Report

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The German Financial regulator targeted illegal Bitcoin ATMs that were operating in the country as we are reading further in the latest cryptocurrency news.

The German Financial regulator came down on illegal Bitcoin ATMs that were operating in the country without having a license. According to the reports, the German Federal Financial Supervisory Authority which targeted operators of BTC ATMs that were working in the country illegally. Only the BTC machines with a BaFin license according to the German Banking Act can operate in Germany. The report revealed that the operator of BTC ATMs under the name Shitcoins Club came under the spotlight as the BaFin ordered Adam Gramowski who is the manager of the ATM to stop all operations in Germany.

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Shitcoins Club’s BATMs are splattered in different parts of Europe such as Italy, Poland, and Spain and according to the German Financial watchdog, Gramowski conducted trading commercially without permission. While it seemed that Gramowksi stopped all services, the reports noted that the operator resumed services in the country. Some of the BTC ATM kiosks are active in cities such as Offenbach in addition to the 16 BATM kiosks that operate in Germany.

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In the meantime, the operators in the country seem to be very cautious. One of the providers Ivan Mircetic explained that BaFin’s latest regulations were quite confusing and requirements were difficult for smaller companies. Mircetic added that the BTC ATM operators are exposed to a major crackdown that is yet to come. The number of Bitcoin machines in Germany is now 51 with Munich and Berlin having the highest number of installations. BTC ATM’s are close to 9000 with the United States owning 75% of the market.

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BTC ATM

The German Financial regulator classified crypto as a financial asset after the Fifth anti-Money Laundering Directive and the custodians in the country which have to obtain a license from BaFin. The reports by CipherTrace revealed that crypto thefts and hacks and frauds reached $1.4 billion. On the other hand, 88% of the funds sent to the US Bitcoin ATM users went across the world. Most of the funds were sent to higher risk exchanges and the percentage of which recorded the exponential growth skyrocketing since 2017. CipherTrace outlined that the BATMs will come under the regulator’s radar and will indicate harsher regulatory measures.

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Source: https://www.dcforecasts.com/bitcoin-news/german-financial-regulator-targets-illegal-bitcoin-atms-report/

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Ethereum Founder Recommends L2 Solutions for ETH Payments

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Ethereum co-founder Vitalik Buterin has suggested that more people should use ETH for payments opting for Layer 2 solutions to avoid hefty gas fees.

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In a response to a tweet suggesting that payments platform Square refusing to support crypto payments was ‘dumb’, Ethereum co-founder Vitalik Buterin has highlighted the benefits of supporting the digital asset as a payment method.

He stated that using ETH for payments would also add support for other crypto assets including MKR, UNI, wBTC, and any other stablecoin.

Naturally, there was quite a reaction from the crypto community considering that transfer fees have skyrocketed in recent months making Ethereum slow and expensive to use.

The DeFi farming frenzy, driven by yield jumping ‘degens’ (degenerate farmers), has resulted in massive demand being placed on Ethereum which has driven network fees through the roof.

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September has witnessed the highest gas fees on record with several spikes taking the average cost into double figures. At the time of writing, average transaction fees had fallen to around $3 according to bitinfocharts.com, but that is still way too high for the average user.

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Average tx fees – bitinfocharts.com

Buterin responded with a suggestion to use Layer 2 options such as zkSync, Loopring, or the OMG Network. Matter Labs launched the L2 payments gateway zkSync to mainnet in mid-June this year, with the claim that it enables ‘PayPal-scale’ throughput for dApps or wallets.

Ethereum zkRollup exchange and payment protocol Loopring launched a Layer 2 token swap DEX in mid-September for high speed, low-cost token exchanges. Meanwhile, the OMG Network, which launched in 2017 to provide Plasma scaling for Ethereum, integrated the Tether stablecoin in August to facilitate cost-efficient payments.

There are other options such as the Matic Network but Buterin did not mention them in this dialogue.

When ETH 2.0?

The real scaling for Ethereum will come when Serenity Phase 1 is launched but that is still at least a year away. Beacon Chain, or Phase 0, must be rolled out first and the good news is that it could be before the end of 2020.

Testing for Beacon Chain is entering the final stages now with around 65,000 validators operating on the Medalla testnet. A further testnet called ‘Spadina’ was recently run as a ‘dress rehearsal’ for ETH 2.0 genesis but it failed due to client issues and low participation. Another testnet called ‘Zinken’ has been planned for launch on Oct. 12.

Until Phase 1 is ready, these Layer 2 solutions are the only viable options for avoiding heavy gas fees.


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Author: Martin Young




Martin has been writing on cyber security and infotech for two decades. He has previous forex trading experience and has been covering the blockchain and crypto industry since 2017.

Source: https://coingape.com/ethereum-founder-recommends-l2-solutions-for-eth-payments/

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A South Korean court dismisses a lawsuit brought by Bithumb investor over a data breach.

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A South Korean court dismisses a lawsuit brought by Bithumb investor over a data breach. – Coinnounce




























A South Korean court denied relief to an investor who claims to have lost some $400,000 due to the negligence of cryptocurrency exchange Bithumb.

According to the Yonhap news agency report, the investor, known as Mr. A, had taken Bithumb to court in connection with the losses, which he alleges were the result of a significant data breach at the exchange back in 2017. However, a judge in the high court refused the case and dismissed liability after Mr. A failed to sufficiently prove that the exchange’s negligence had caused his losses. Following the ruling, the crypto exchange will not be required to compensate Mr. A. Crypto news aggregator platforms like cryptopanic can help you keep up with the crypto industry. 

The losses were from the data breach prior to 2017. 

According to the plaintiff, the losses came from Korean won stored on the exchange prior to a data breach in 2017. Hackers had allegedly gained unlawful access to the won and bought Ethereum tokens with it through the Bithumb exchange, before converting these back into fiat at four separate intervals. The case against the South Korean exchange was only the latest to have been raised by investors concerned about losses emerging after the 2017 data breach. This month, two of these claims were dismissed for $126,000 and $38,000, respectively, while a third was awarded just $5,000 in a partial settlement.

South Korean court had ordered to seize investors’ shares of Bithumb. 

South Korea’s leading cryptocurrency exchange Bithumb came under inspection of Seoul Police due to certain accusations earlier this year. The chairman of Bithumb was found defrauding Bithumb’s customers by fooling them into buying fake tokens. Bithumb was accused of dumping its customers by selling an unlisted token. Bithumb has been a hot topic among the crypto community as it was the second cryptocurrency exchange to come under police scrutiny. The Seoul Central District Court passed an order to seize Bithumb investors’ share last month. 

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Jai Pratap

Jai Pratap

A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.


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Source: https://coinnounce.com/bithumb-investor-lawsuit-was-dismissed-in-south-korea/

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Australian Securities Exchange to triple capacity of DLT system

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The Australian Securities Exchange will delay its blockchain-based CHESS replacement after huge trading volumes due to the pandemic required a massive expansion of capacity. The DLT- based system had been scheduled for official trials in December, with a planned launch window of early 2022.

At its annual meeting this year, ASX chief executive Dominic Stevens told shareholders they were looking to triple the capacity of its planned DLT system based on the surge in trade volumes seen earlier in March.

He also said that the firm was looking into how much further the timeline needed to be extended to accommodate “demand for significant additional capacity and functionality from the day it goes live.”

The blockchain-based clearance system to replace CHESS was originally planned for launch in April 2022, with official trials scheduled for December this year.

The ASX has been working on the CHESS-replacement for the last four years, which has become the subject of much debate.

Last year, the CHESS Replacement Stakeholder Group, a group of financial market firms consisting of over 6 million “mum and dad investors,” raised concerns about the ASX’s potential to entrench its monopoly position. According to the CRSG, the integration of the DLT system could lead to hampering competition in key market segments, “damaging, or even threatening the long-term survival of brokers, share registries, and other stakeholders.”

ASX chairman Rick Holliday-Smith claims that the DLT platform will open up new paths for competition, and make clearance and settlement much simpler for market participants. 

Source: https://cointelegraph.com/news/australian-securities-exchange-to-triple-capacity-of-dlt-system

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