NASDAQ Analytics Hub - One Small Step for Man … One Giant Leap for Cryptocurrency Trading?

Colleagues, the Cryptocurrency Academy has closely tracked and reported on the NASDAQ’s interest in trading cryptocurrencies. Therefore, it comes as no surprise that CEO Adena Friedman was recently quoted by Ethereum World News that is now beta testing a Crypto Pricing Prediction Model, which would become part of the exchanges’ Analytics Hub. Moreover, Friedman is on record as stating NASDAQ would “consider becoming a crypto exchange over time.” We believe there are two fundamental issues standing between the NASDAQ and its implementation of full-blown crypto trading services: Security and Regulation. The global crypto ecosystem has been wrought with security breaches on all sides during the past two years. Moreover, the US SEC has been sending mixed signals with regard to its consideration of cryptocurrencies (and related ETFs) as financial “securities”. Security threats and lack of regulatory clarification notwithstanding, we believe NASDAQ’s drive to be on the bleeding edge of financial innovation will lead it to provide crypto trading and exchanges services within 12-24 months. Send us your thoughts today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

How will the lack of regulatory clarity impact Goldman, JP Morgan and Blackrock crypto trading desks?

Colleagues, in H1 2018 the cryptosphere was abuzz about top tier financial institutions implementing cryptocurrency trading and investment services. For the time being Goldman Sachs has decided to focus on crypto custody services while halting any plans for cryptocurrency trading for institutional clients citing concerns about the direction of the US SEC’s regulatory framework. Under the leadership of incoming CEO David Solomon and its current CFO Martin Chavez is taking a cautious “wait and see” approach. GS notwithstanding, other tier one player such as JPM, Blackrock, Vanguard and Fidelity appear to be less risk averse. Bottom line: The Cryptocurrency Academy anticipates two key developments. First, the aforementioned players are likely to move ahead with their plans for crypto trading. Second, given time (perhaps 24-36 months) we still believe that Goldman Sachs will launch a crypto trading service once the SEC firms-up its regulatory guidelines and other financial institutions begin to gain traction in crypto trading. Send us your thoughts today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Will Gemini’s New Crypto Key Storage System Prevent Double-Spend Cyber Attacks?

Colleagues, co-founders of the Gemini crypto exchange Tyler and Cameron Winklevoss have been granted a patent for “Systems and methods for storing digital math-based assets using a secure portal”. Digital asset ledgers will be used to protect users from “double-spend” cyber-attacks. Unlike traditional paper currencies, cryptocurrencies have the potential to be copied and rebroadcasted. This leads to the opportunity for nefarious cyber criminals to spend the same cryptocurrency twice. Multiply this type of transaction known as “double-spend” by 100s of thousands of transactions and the value of crypto jacking easily runs into the millions of USD. Bottom line: How effective will the new crypto key storage system be in preventing illicit “double-spend”? Our readers along with the global crypto ecosystem will not know the answer until this system is designed, developed and battle tested in the real world. Yes, we will be tracking this matter closely. Send us your thoughts today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Will Blockchain’s Time-Stamped and Immutable Data Bolster the Fight Against Crypto Cyber Crime?

Colleagues, China has become one of the first countries to recognize Blockchain-based smart contracts as legally binding evidence. Moreover, the PRC has opened two courts dedicated to processing Internet and cybercrime. These moves would appear to strengthen crypto cyber security in both domestic and cross-border transactions. The UK Law Commission reported in July 2018 that it has launched a research project to assess the legitimacy of smart contracts as well. Meanwhile, the American Bar Association (ABA) views recognizes Blockchain-based smart contracts as a “disruptive advancement” which have the potential of transforming the legal system. Surely, there is a vocal minority in the global crypto ecosystem who view such measures as a hindrance to cryptocurrency adoption. By contract, we believe that collectively these initiatives will have two positive outcomes. First, enhanced security in cryptocurrencies and the Blockchains that enable them. Second, improvement in consumer and institutional confidence in cryptocurrencies. Send us your thoughts today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

IBM to join the parade of Blockchain-based payment systems vendor … with what level of security?

Colleagues, two of the greatest value propositions Blockchain offers the established financial and banking system is faster transaction speed accompanied by lower OPEX. This is especially appealing for trans-border payments. IBM’s World Wire joins the ranks of RippleNet, Ant Financial and GMO in this enticing market niche. The key players will likely tout their systems at the up-coming Sibos fintech conference in Australia this October. These systems are based upon on model integrated into a bank’s existing systems, fiat currency is exchanged into a digital asset at bank A which in turn is transferred to bank B where it is converted back into a second fiat currency. Sounds attractive, indeed. Bottom line: There are three critical success factors needed for this process to be commercially viable. They have speed and can reduce OPEX, but with what level of security … which is the Achilles heel of all Blockchains in the banking sector and beyond. We will closely monitor the aforementioned vendor’s system and report this fall. Send us your thoughts today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)

Which steps can Internet browser vendors take to reduce cyber crypto mining attacks?

Colleagues, crypto jacking has become a monumental cyber challenge for cryptocurrency mass adoption. Most crypto jacking attacks target Chrome, Firefox, IE and Safari browsers by adding nefarious scripts, which perform illicit mining unbeknownst to end-users. The Google Play Store and Apple App Store have implemented policies to remove suspicious apps from their online stores. However, this is just one small step. Google, Apple, Microsoft and the Mozilla Foundation all need to proactively integrate tools, which will prevent scripts and related adware. Moreover, a more user-friendly method for automatically pushing security patches to mobile devices and laptop-desktop computers alike. Bottom line: The security and browser software firms have some of the best minds on the planet within the ranks of their employer. We need something comparable to a moonshot commitment to innovate security protection rather than constantly play catch-up to cyber criminals if the cryptocurrency ecosystem is to achieve the credibility needed by investors small and large. Send us your thoughts today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Can Japan’s National Police Agencies’ New Software Security Tool Reduce Crypto Money Laundering?

Colleagues, it is common knowledge that money laundering is bonanza for crypto cyber criminals. The Japanese NPA has decided to fund the development of AML software by a private sector security firm. Japan is home to some of some prominent crypto exchanges including Coincheck, BitOcean, Bitarg, Zaif and GMO Coin. With cyber-attacks on both crypto exchanges and users, running rampant Japan is on the bleeding edge of cyber enforcement … not by choice, rather by necessity.  The NPA reported some 170 cases of suspected crypto crime during a mere six-month period in 2017 alone.  Does this strategy represent a silver bullet for resolving the crypto AML dilemma? Not at all. It is, however, one more important counter-measure to protect the global crypto ecosystem. We expect other nation’s securities and law enforcement agencies to fund similar tools in an effort to gain an upper hand against the crypto cybercrime contagion. Send us your thoughts today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)