Daily Roundup 28th July 2018 – Romania regulates ICO, only 2% of US investors own Crypto & more

Romanian Ministry of Finance determines criteria for running an ICO

The regulation specifies that any entity that intends to issue its own cryptocurrency must have capital of at least  €350,000 EUR. This means that you already have to own a significant amount of money before being able to start an ICO. In addition to that, founders and other persons in responsible positions have to conduct a verification and approval process successfully. While the legislation is not necessarily hostile towards crypto, it is definitely hindering start-up projects from realizing their ideas. Instead, professional institutions are privileged through this legislation. A measurement that does not only aim to prevent money laundering but, of course, also scams and amateurism.

Only 2% of US investors own Bitcoin

A study by Wells-Fargo/Gallup found out that onyl 2% of all investors in the USA own Bitcoin. According to the report, many investors prefer security and safe returns over high risk assets. Bitcoin’s high volatility and massive corrections deters many professional traders. An obvious reason is that Bitcoin is still a new technology. Many traders are older than the average crypto trader of which almost 60% are in the age of 18 – 34. The potential for cryptocurrencies is therefore still much higher. So while the technical analysis seems to be bullish, we have to wait for fundamental parameters to realize this potential.

South Korean regulators urge legislation to release crypto bill

South Korea’s enthusiasm for cryptocurrencies is well known. However, so far the country’s legislation has not released a single bill on cryptocurrencies. This leads to problems and uncertainty about how to deal with them. At this point, Korea’s population would receive prohibitive or negative legislation on cryptocurrencies highly negative. But the government’s cryptofriendly stance is known. It is, however, concerned about scams and money laundering.

BCH adoption in darknet takes off

An overwhelming majority of vendors on the darknet start to accept Bitcoin Cash. Purchases on the darknet were one of the first use cases for Bitcoin. And experts estimate that a considerable amount of Bitcoin’s transactions are still made up by transactions on the darknet. With transaction fees recently as high as $0.70 USD per transaction on Bitcoin legacy, more and more traders start to accept altcoins. And of course Bitcoin Cash which represents the Peer-to-peer cash system outlined in Satoshi Nakamoto’s original whitepaper is the first go to for vendors. Around 75% of all traders on Dream, the darknet’s biggest marketplace, accept Bitcoin Cash now. The transaction fee is now below $0.05 USD for BCH which makes it much more viable than Bitcoin Core.