We're presenting "the image of the day". Bitnewstoday.com has chosen the most important news about the digital economy and virtual currencies. Only the most valuable stories from only the trusted sources. Each and every event from this list will change the world of the digital economy either way. The most important stories of this day in the most indicative quotes are below!
1. THE CROWN IS NOT HAPPY (News.Bitcoin)
Treasury committee criticizes UK regulators’ “unsustainable” crypto stance
The parliamentary report published by the UK Treasury Committee has advocated for regulation of the “wild west” crypto-assets sector. The report criticizes the “ambiguity” of the current stance of UK regulators, arguing that with effective regulations, the United Kingdom could become a “global center” for the emerging cryptocurrency sector.
The report asserts that “in deciding the regulatory approach, the Government and regulators should evaluate the risks of crypto-assets, and assess whether their growth should be encouraged.”
2. SHAMEFUL DISPLAY! (Daily Hodl)
Hacked Japanese will provide 5 billion yen for lost Bitcoin, Monacoin and Bitcoin Cash
Japanese cryptocurrency exchange Zaif was hacked with losses totaling $59.7 million. The exchange reports that it detected server abnormality on September 17 and confirmed the hack the following day. As a result of a security breach, hackers managed to steal cryptocurrencies totaling about 6.7 billion yen from the exchange’s hot wallets, including 2.2 billion yen in assets from the company.
To make up for the losses to its customers, Zaif, which is owed by Tech Bureau, says it will sign a deal with Fisco Digital Asset Group which will provide roughly $44,486,165 in financial support in exchange for a majority control of the company.
3. ROOM FOR THE REGULATOR (The Next Web)
PAX stablecoin has a backdoor for freezing and seizing cryptocurrency
The Ethereum community has found some rather unnerving facts about a new stablecoin known as PAX. It turns out the cryptocurrency – backed by the US dollar – contains backdoors that give unrestricted access to law enforcement (or anyone else, for that matter).
PAX has a function – called “setLawEnforcementRole” – which creates a new Ethereum address with administrative permissions over the circulating PAX supply. This practically means anyone with these permissions can tamper with any wallet they please.The stablecoin allows the new addresses powerful functions – particularly “freeze” and “wipeFrozenAddress” – that lets “authorities” freeze wallets (and addresses) at will, and even destroy any assets they possess.
UPD: We have been reached out by the Paxos spokesperson that came up with a clarification: they do have backdoors built into the PAX, purely for regulatory reasons. On of the “killer features” of the stablecoin, approval, coming straight from the Wall Street, was out of reach without it. Furthermore, they point out that their README in the contract code on Github explicitly states that the dreaded “lawEnforcementRole” is specifically intended for use only when they are required to do so by law.
4. TIM DRAPER STAYS BY HIS WORD (The Street)
Tim Draper is not backing down from his prediction of Bitcoin $250,000 by 2022
Earlier this month, TheStreet caught up with Draper in Half Moon Bay, Calif. at the Crypto-Finance-Conference, an elite series of talks about crypto that originally was held in Switzerland, to get his thoughts on where Bitcoin prices are headed. After a big rise in 2017, cryptocurrency prices are mostly negative this year, with Bitcoin, the largest cryptocurrency, down over 50%.
In the conversation Bitcoin superbull revealed that he continues to be a firm supporter of the Bitcoin and blockchain. “This is Industry that is going to change finance. It encompasses commerce and banking and insurance and real estate. More broadly, medicine and healthcare are going to change because of smart contracts,” – said Draper.
Crypto pioneer David Chaum says he’s built a better Bitcoin
The godfather of the cryptocurrency movement is back with a plan to address Bitcoin’s biggest shortcoming: speed.
David Chaum, who built his own digital currency more than a decade before Bitcoin was introduced, is unveiling a new platform that he claims would allow digital cash to be traded almost as quickly as physical cash. A new platform, called Elixxir, promises to improve on Bitcoin’s speed by processing thousands of transactions a second.
6. CRUSH’N’BURN (Forbes)
Bitcoin just flash-crashed before powering higher
The Bitcoin price just dropped $200 to slightly above $6,000 before leaping to near $6,500 as the OG crypto continues to battle against volatility, with the price dip reflected in the likes of other major cryptocurrencies – Ethereum, Ripple and EOS.
Bitcoin's continued volatility could mean the U.S. SEC opts to again back away from a Bitcoin ETF, something it has previously rejected due to fears around Bitcoin's wild price swings and possible price manipulation.
7. GREED IS BAD FOR YOU! (News.Bitcoin)
Brazil’s biggest banks are under investigation for monopoly in cryptocurrency trade
Some of Brazil’s biggest banks have come under investigation for alleged monopolistic tendencies in the trade of Bitcoin and other cryptocurrencies. The Administrative Council for Economic Defense, a transparency and competition body, accuses the financial institutions of shutting down accounts of brokers trading cryptocurrency without merit.
Brazil is a groundswell of cryptocurrency activity in Latin America. The number of people trading Bitcoin or any other cryptocurrency has soared from a few dozen thousands two years ago, to about 1.4 million today. More than $2.4 billion worth of Bitcoin was traded in the country last year, up from just $160 million in 2016.
8. WE DID NOT ENGAGED IN INSIDER TRADING! (CNBC)
Coinbase denies trading cryptocurrencies for its own benefit
Cryptocurrency firm Coinbase has denied engaging in proprietary trading after the New York Attorney General said that almost 20 percent of transactions on its platform were attributable to the company.Proprietary trading is when a firm invests for its own gain rather than on behalf of its clients. Coinbase has its own cryptocurrency trading platform and wallet.
In a blog post late on Wednesday, Coinbase's Chief Policy Officer Mike Lempres said that the company "does not engage in proprietary trading."
9. CRYPTOPHONE FOR CRYPTO PEOPLE (Wired)
The HTC Exodus blockchain phone comes into focus
HTC’s Phil Chen, who spearheaded Exodus development, has at least started to fill in the blanks of how the Exodus will pull off its most important trick: keeping your cryptocurrency safe.
The Exodus has loftier ambitions than mere storage, of course. “A few years down the road, we see a world where people own their own identities and data, where everyone understands the concept and economics of digital property,” says Chen, HTC's decentralized chief officer. For the moment, though, the primary concern for the Exodus’s intended audience is how well it works as a hardware wallet.
10. VISIONS OF THE BLOCKCHAIN (Forbes)
Blockchain video delivery platform Theta partners with South Korean media giants
Two of South Korea’s largest media companies have teamed up with upstart blockchain video content platform Theta Labs in an effort to drive viewer engagement in one of Asia’s hottest economies.
MBN, a division of Maekyung Media Group – a large player in South Korea’s communications and broadcasting realm, and CJ Hello – a subsidiary of one of the nation’s largest cable television and mobile providers will use Theta’s decentralized video restreaming platform to broaden their geographic reach and strengthen customer engagement and retention. The companies serve as key producers and distributors of South Korean television and music, such K-Pop, which has also become popular in other parts of East Asia and around the world.