Can the KingMiner mining malware attack impact crypto assets beyond Monero?

Colleagues, the KingMiner is the latest in a virtual tsunami of crypto mining malware attacks during the past year. First detected by cyber security experts at Check Point Software this malware has the ability to morph once it has penetrated the target host … thus making identification and mitigation much difficult than its predecessors. Check Point reports that KingMiner primarily targets Microsoft SQL and IIS server software for the purpose of mining Monero. While Monero only ranks 12th in market value among cryptocurrencies according to CoinMarketCap, the potential for KingMiner to capture 100% of GPU/CPU power of the targeted system is a real and present danger. Bottom line question: Does KingMiner have the ability to move beyond Monero and move up the cryptocurrency food chain and mine for Bitcoin Cash, Ripple, Ethereum and ultimately Bitcoin? We believe this worst-case scenario is highly unlikely. However, given KingMiner’s malicious success the potential for ‘copycat’ malware code with the similar morphing capability remains a serious threat. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

How secure are cryptocurrency software wallets against cyber criminals injecting malicious code?

Colleagues, the on-going debate regarding which type of crypto wallet is more secure continues with no clear consensus – hardware, software, clod-based and paper wallets. This debate has returned to the spotlight given the recent security breach of BitPay’s Copay (software) Wallet. Copay claims its mobile The Copay app securely stores multiple, distinct bitcoin wallets, allowing both business and privacy-conscious users to keep funds carefully separated. GitHub issued a memo to users reporting an  ‘event-stream` dependency attack steals wallets from users of copay. For details take a look at the YCombinator news feed on this attack. The bottom line: For individual digital asset traders software wallets are immensely more convenient than hardware and paper wallets, however, they are far more prone to cyber-attacks – quantum password processing, malware and adware … just to name a few. If you do use a software wallet we highly recommend using any and all security features at both the application and OS levels. The Copay breach reminds us that the cryptocurrencies are no more secure than the weakest link in the crypto ecosystem. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

What impact will ICE’s decision to delay the Bakkt platform launch on Bitcoin futures trading?

Colleagues, those of us in the technology or financial services sectors know that product delays are common. The Cryptocurrency Academy applauds ICE’s move to postpone Bakkt’s launch until late January 2019 for the primary purpose of due diligence and quality control. ICE fully acknowledges that Bitcoin futures are “commodities” (and not “securities”) which must be refreshing news to the US CFTC. Bakkt will set the price in a one-day physically settled Bitcoin futures contract. The billion-dollar question is what impact this delay will have on cryptocurrency futures trading in general and Bitcoin prices in particular. Bakkt is a strategic and high visibility launch for the global cryptocurrency ecosystem. ICE is determined to get it right. The implications of a faulty Bakkt platform launch would have major repercussions. We deem this delay to be for all the right reasons, however, if it is pushed into February or March institutional investor confidence will be heavily eroded. Share a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

What is the fate of cryptocurrency derivatives?

Colleagues, cryptocurrency ETFs, Exchange-Traded Notes (ETNs), Futures Contracts and Swaps have drawn the scrutiny and ire of regulatory bodies … particularly in England and the US. A key factor is whether cryptocurrencies are categorized as securities or commodities. Moreover, government entities are committed to protect the public interest of consumer or individual traders which may not have the resources nor expertise of institutional investors. This is true for the US CFTC and the British Financial Conduct Authority (FCA). In the US the CFTC has approved TrueEx exchange for Designated Contract Marketplace (DCM) swaps. Brexit aside, the British FCA is seeking to enforce the EU Anti-Money Laundering Directive (5AMLD). The Cryptocurrency Academy predicts that regulatory scrutiny for derivatives will not be resolved until the more fundamental issues (e.g. the legitimacy of crypto assets as securities or commodities are fully resolved in the coming 12-24 months. For now, we recommend the individual traders take a cautious approach to derivatives. Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Is there a Crypto Ruble Central Bank Digital Currency in Russia’s future?

Colleagues, central bankers around the world have commented on the viability of a CDDC in their respective nations for the past 2-3 years. The US Federal Reserve, PBoC, Bank of England, EBC and the State Bank of the Russian Federation have each weighed-in on this critical matter. Although the Cryptocurrency Academy does not want to handicap the odds and timetable for each nation state this we do know: The central banks of many of the world’s largest economics are seriously considering a CBDC. We have previously published posts on the US Fed and the PBoC. More recently, we have seen Russia’s central bankers prediction of a CBDC within the next 24-36 months. This forecast is generally in line with the statements (and actions) of their peers in other nations. Nevertheless, the BoE would appear to be in the lead with the PBoC Closely behind. The US Fed is cautiously assessing the viability of a US CBDC; however, major concerns over security and transparency remain. Not so with the PBoC which is actively developing the infrastructure for a Chinese CBDC as is the BoE. Russian officials state that future Crypto Ruble might even have parity with the existing fiat Ruble. We hold fast to our own prognostication: Within 2-3 years, these nations – along with Japan – are highly likely to have launched or be in an advanced development and testing phase of CBDCs. Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Will the enforcement of economic sanctions force crypto exchanges to purge Iranian traders?

Colleagues, Bittrex, BitMex and now Binance have banned Iranian cryptocurrency traders in an effort to avoid penalties in the wake of US economic sanctions. The exchanges issue a warning to users based in Iran to withdraw their funds or face the confiscation of their assets. There are surely legitimate crypto traders in the Persian state, however, the goal is to place an embargo on any state-sponsored entities from circumventing US trade sanctions. Binance has moved from China to Japan, while BitMex HQ is in Hong Kong and Bittrex is located in the US. Exchanges, whether with large or modest trading volumes, face penalties for aiding and abetting Iranian actors from participating – even on the margins – in the global economy. Will other crypto exchanges follow their lead? We believe the strategies of other crypto platforms will depend on the rigor of direct or indirect US penalties. Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)  

Cryptocurrency Triple Play - How common are pyramid schemes similar to those in China, South Korea and Japan?

Colleagues, East Asia has become a hotbed for multi-level marketing schemes which exploit the allure of and poor transparency of cryptocurrencies, namely Bitcoin. Whether this past May in China ($47m) or more recently in South Korea ($20m) and Japan ($68m), crypto fraud schemes are running rampant across the region. Bottom line: Despite many efforts by credible members of the global crypto ecosystem, digital such as Bitcoin, Ethereum, Ripple and others, are wrought with the potential for scams and related cybercrimes. Government enforcement entities such as China’s Ministry of Public Security or the US SEC only have the bandwidth to track and prosecute a small minority of crypto fraud cases. We do not foresee a significant reduction in crypto cybercrimes until government agencies have both the cyber tools and manpower to launch a counter-offensive which is likely to be 2-3+ years in the future. Post a comment today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/)