In a major decision, on Wednesday the Supreme Court eliminated the curbs put on controlled institutions such as banks and NBFCs by the Reserve Bank of India from virtual currencies and from the provision of services for crypto companies. This Court held that the RBI circular, banning licensed institutions from giving banking services to traders or encouraging trading in VCs, could be set aside on the “ground of proportionality”.
When the consistent stand of RBI is that they have not banned VCs and when the Government of India is unable to take a call despite several committees coming up with several proposals including two draft bills, both of which advocated exactly opposite positions, it is not possible for us to hold that the impugned measure is proportionate
The Court noted. A jury bench composed of Justices R F Nariman, Aniruddha Bose, and V Ramasubramanian, (The Web and the Wireless Association of India vs Reserve Bank of India) heard the case.
In April 2018, RBI released a circular banning regulated financial entities from supplying crypto companies with services. The prohibition came into force three months later and banks immediately locked crypto-exchange accounts.
The Circular released on 6 April 2018 instructed RBI-regulated agencies:
- Not to trade with virtual currencies or to provide services that would encourage the processing or settlement of virtual currencies by any person or entity; and
- Leave the partnership with those individuals or organizations if they have already been offering these services.
The Internet and Mobile Association of India and a few other stakeholders questioned this in the Supreme Court. The Association consisted of a few companies that run online crypto assets trading sites, certain companies ‘ shareholders/founders and a few individual crypto asset traders.
The Court noted three considerations when overruling the circular:
- RBI has not, in the past 5 years or more, found that the activities of Virtual Currency Exchanges have actually adversely affected the functioning of RBI-regulated entities
- The consistent position was taken by RBI, including in its answer dated 04-09-2019, is that RBI has not banned virtual currency in the country and
- Also, the Inter-Ministerial Committee formed on 02-11-2017, which originally recommended a special legal framework, including the introduction of a new law, namely the Crypto-token Regulation Bill 2018, were of the opinion that a ban could be an extreme tool and that regulatory measures can achieve the same objectives
The Court noted:
The position as on date is that VCs are not banned, but the trading in VCs and the functioning of VC exchanges are sent to comatose by the impugned Circular by disconnecting their lifeline namely, the interface with the regular banking sector. What is worse is that this has been done (i) despite RBI not finding anything wrong about the way in which these exchanges function and (ii) despite the fact that VCs are not banned
Advocate Ashim Sood, appearing for IAMI, argued that Reserve Bank of India had no jurisdiction to prohibit transactions in cryptocurrencies. The general ban was based on a misconception that it was impossible to regulate cryptocurrencies, Sood argued. It was also claimed that cryptocurrencies were not “currency” in the strict sense, and could be referred to as a medium of exchange or a store of value. Senior Advocate Shyam Divan, appearing for RBI, disagreed and said that it was a mode of digital payment that RBI had the power to control. Divan argued that the contested decisions were necessary because, in the opinion of RBI, VC transactions could not be referred to as a payment system, but only peer-to-peer transactions that do not involve a system provider under the Payments and Settlement Systems Act. Despite this, VC transactions have the potential to develop as a parallel payment system. It was also submitted that VCs could be used for illegal activities because of their anonymity.
Cardano, Ontology, Crypto.com Coin Price Analysis: 19 September
Cardano formed a bearish pattern on the charts as it braced for another dip in its price. The bearish pressure on the crypto-asset abated briefly, but sellers once more stepped in at a level of resistance to effect a slide for ADA. Crypto.com Coin, on the other hand, formed a bullish pattern. Ontology also displayed signs of bullishness.
However, since major altcoins seem to bleed whenever Bitcoin makes a move to the upside or down, another move could invalidate altcoin chart patterns.
Cardano appeared to form an uptrend from its recent lows as it briefly rose past its resistance at $0.097. However, sellers have prevailed since and the price was forming lower highs over the past week.
ADA formed a descending triangle pattern, as shown by the white line. This was accompanied by falling trading volume, also highlighted by the same. Such a bearish pattern signaled an imminent drop in the asset’s price.
The next level of support for ADA, beneath $0.091, lay at $0.085.
Cardano was in the news recently when IOHK announced a $250K public fund for Cardano community innovation, Project Catalyst. “Anyone can bring their idea and create a proposal,” the announcement said. “Through a public vote” winning proposals will begin a development process, it added.
The 20, 50, and 100 SMA (white, yellow, and pink respectively) showed that the past couple weeks have seen an uptrend. Their crossovers also indicated bullishness in the near-term.
Further, the MACD was forming a bearish crossover over the past few days. And yet, the previous week saw every price drop beneath this support being bought up as many candles near the $0.78-support level had significant tail wicks.
The outlook for ONT remained bullish, but a close beneath the support might suggest short-term bearishness.
Crypto.com Coin [CRO]
Crypto.com Coin was forming a bull pennant on its 4-hour charts. The same was evidenced by the white lines which formed the pennant, while the yellow line formed the flag pole of the pattern. The height of the flagpole is generally the upside target for this pattern. Here, the target would be $0.19.
The Parabolic SAR also gave a buy signal. The dots formed by the indicator would be a good place to set a stop-loss, as the pattern would be invalidated if the price closes beneath the pennant.
MyCoinStory is the 1st exchange to list SUN and KLAY derivatives
MyCoinStory is the first cryptocurrency exchange to launch SUN and KLAY tokens derivates SUNUSDT and KLAYUSDT future contracts are the first MCS’s “Colorful Quanto” products This comes as a part of expanding MCS’s portfolio of products Today comes the news of the world first. MyCoinStory (MCS), a global exchange specialized for trading cryptocurrency derivatives, has […]
- MyCoinStory is the first cryptocurrency exchange to launch SUN and KLAY tokens derivates
- SUNUSDT and KLAYUSDT future contracts are the first MCS’s “Colorful Quanto” products
- This comes as a part of expanding MCS’s portfolio of products
Today comes the news of the world first. MyCoinStory (MCS), a global exchange specialized for trading cryptocurrency derivatives, has listed SUNUSDT and KLAYUSDT future contracts.
Both of these products are the very first of their kind in the world. They are also among MCS’s first two offerings in what they call the “Colorful Quanto” group of products.
SUN token in SUNUSDT futures is widely considered to be the most acclaimed experimental Decentralized Finances project run by the TRON Foundation. As a reminder, TRON Foundation is the company behind TRON Protocol.
KLAY token is the native currency of the Klaytn blockchain behind which is the Ground X. This company is the subsidiary of the largest South Korean mobile platform, Kakao Corporation.
MyCoinStory offers quanto futures
Quanto contracts are special derivative instruments that are not settled in either base or counter currency of the pair. Instead, they are settled as a different asset. In the case of these two products, settlements are in bitcoins.
MyCoinStory has announced that it will continue to focus on introducing new unique quanto contracts products. This they hope will preserve their position as leaders in the market.
There is a wealth of different cryptocurrencies on the market, and often they show a high frequency of fluctuations. With quanto features, MCS is striving to increase the diversity of products they offer on their trading platform.
What is MCS?
MyCoinStory or MCS is a brainchild of financial and blockchain experts. It’s a trading platform centered around bitcoin derivative products.
As their mission, MCS states the curation of a democratic trading platform for cryptocurrency derivative. One where anyone can trade with disregard for their location of level of expertise.
For this purpose, MCS has partnered with custodian BitGo, one of the leaders in the digital assets custody industry. Based on the customers’ feedback, MyCoinStory continually improves its trading platform and diversifies its products’ offer.
Etherum Fees Double In a Week As DeFi Heats Up
The average fee for transactions on Ethereum has reached its second-highest level ever, after setting the record earlier this month.
- The average Ethereum transaction fee rose to more than $11, more than double last week’s figure.
- Daily average fees still haven’t dipped below $2, continuing a record-breaking streak.
- More hash power is being added to the network.
Ethereum fees remain at historically elevated levels, as miners scramble to add capacity and profit from record-breaking network activity levels.
Average transaction fees on the Ethereum network have more than doubled since last week, rising to $11.61 on September 17 and maintaining a streak of prices above $2 that’s now lasted for more than a month, far longer than any previous stretch at those levels.
The Ethereum blockchain hash rate—the amount of computational power that supports the network—has also increased to levels unseen since 2018 as miners add capacity to their operations, signaling market activity on both the supply and demand sides that have (almost) never been higher.
Fees paid by users to send tokens or interact with smart contracts on the Ethereum network serve as a measure of network activity, with higher averages translating to more transactions on the network. The average fee of $11.61 was the second-highest daily average on record, only falling short of the record $14.58 average daily fee set a few weeks earlier on September 2, according to blockchain data provider BitInfoCharts.
The total amount of mining power helping process transactions on the Ethereum blockchain has also been on the rise. Ethereum miners use ‘rigs’ of connected computer graphics cards (GPUs) to produce blocks for the Ethereum blockchain, adding ‘hash power’ to the overall pool. In return, miners receive a small and gradually decreasing block reward of ETH, as well as mining fees paid by users to use the network.
With fees at some of their highest levels ever, miners have been adding more and more hash power, increasing the total close to 250 terahashes per second—that’s 250 trillion tries to find the right mathematical computation to find the next blockchain block. That figure is up 30% since the start of July according to blockchain explorer Etherscan, and the hash rate has only ever been higher during a period from February to November 2018, when the hash rate peaked at more than 290 terahashes per second.
Record activity on the Ethereum network is being driven by DeFi, a system of decentralized applications enabling non-custodial, crypto-based lending services and fees for users providing liquidity for trades on decentralized exchanges. DeFi aims to replace centralized rent-seeking financial institutions with protocols offering the same services, but in the hands of the community of supporters and users.
With average fees at some of their highest levels ever and Ethereum miners gearing up for even more network activity, it seems like ETH prices, still off from a recent September 1 peak of more than $480, could be headed skyward, too.
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