Prasos, a bitcoin broker based in Finland, announced it has obtained a license from a payment organization, which will enable it to offer additional payment services in fiat currencies both for users of its Coinmotion platform and in other countries of the European Economic Area (EEA).
As emphasized in the statement of Prasos, the company has become the only third organization in Europe that has received such a license.
Big news! @prasosltd has received payment institution license. This is a license in Europe. The license was granted by the Finnish FSA. https://t.co/1NZ2pskuYN
– Henry Brade ⚡ (@ Technom4ge) July 12, 2019
The license was issued by the Finnish Financial and Budget Supervision Service.
“The process of obtaining a license took us almost a year and a half, and during this time, European legislation has become more understandable. We worked a lot on the development of our business, and I am very happy that we have come to this moment and received a license from a payment organization, ”said Prasos CEO Heidi Hurskainen.
In March 2018, Prasos announced that four Finnish banks had immediately closed down the company's accounts and refused to cooperate further, fearing a potential violation of AML legislation. After that, Prasos was left with only one banking partner and did not rule out that his entire business would be frozen.
The obtained license will allow the company to conduct more productive cooperation with financial institutions. In addition, Prasos intends to register as a virtual services operator in accordance with the EU Fifth Directive on combating money laundering and terrorist financing, which entered into force in Finland on 1 May 2019.
“We believe that in the following years the cryptocurrency sector will become more mainstream, and the license obtained is a strategically very important achievement for us. This is the first step towards creating new products for investors, which improves our position in the European market and supports wider cooperation with financial operators , ”added the head of the company.
Recall, Prasos announced the purchase of the Coinmotion cryptocurrency exchange in February 2016. The company also owns another Bittiraha.fi and Bittimaatti's Bitcoin-ATM network operating in Finland.
G7: stablecoins pose a threat to the financial system
A recent report from G7 suggests that global stablecoins can be dangerous to the stability of the financial system.
The report describes many of the risks that are associated with the use of digital currencies. It even explains that even if the companies involved in Libra could manage to solve some minor regulatory problems, they would not be able to get permission from the main regulators. The document also notes that G7 believes that no stablecoin project should have the right to start its activities until certain problems with the supervision and management of the crypto industry are resolved, all risks are eliminated.
G7 also thinks that stablecoins that have the ability to scale quickly can suppress the development of competitors and threaten financial stability, as there is a risk that users may one day be disappointed in this coin. It is anticipated that the provisions of this document will be discussed by finance ministers at the IMF's annual meeting, scheduled for this week.
Such statements explain the hostility of world regulators to Libra and TON projects. For example, Gabor Gurbaks, a digital assets strategist at VanEck, said on his Twitter blog the day before that companies, such as Visa, Mastercard, eBay, Stripe, received letters from regulators asking them not to experiment with Libra before leaving Libra. a new project, otherwise they would have additional, undesirable obligations to regulators.
The growing complexity of Bitcoin mining in 2019, how is it determined and what depends on it?
This year, the price of Bitcoin (BTC) ranged from a minimum of just over $ 3,000 to a maximum of about $ 13,000. At the same time, the complexity of BTC mining , which measures the complexity of the calculations needed to mine new coins and create new network blocks, has been growing unprecedented.
Bitcoin mining difficulty is adjusted approximately every two weeks to take into account the hashrate of new miners on the network. Despite the fact that the general trend has been upward almost since the creation of the network, short but significant failures happen. For example, in December 2018, mining complexity decreased three times in a row, the total drop was almost 30%.
In this calendar year, the difficulty of mining BTC decreased five times, but no more than 1.18%. This is unprecedented. In no previous year, the most serious drop was so low. In the entire history, at least one drop was more than 5%.
Of course, 2019 has not yet ended, but it is worth noting that at that time last year, the difficulty of mining BTC decreased only once (3.45%, which is more significant than any decrease in 2019).
If this trend continues, it will confirm that the BTC miner community is less sensitive to currency price fluctuations than ever before.
To understand why, it is worth considering the basics of the complexity of cryptocurrency mining . The Bitcoin network produces 2016 new blocks every two weeks. Maintaining this speed is important for network operation. Blocks are generated by miner computing systems that solve mathematical problems. In this case, it is appropriate to compare the miners with the players in the lottery, and the difficulty of mining is with a very low chance of each individual player to win. Each time someone “wins” the lottery, a block is created.
Since bitcoin networks need blocks that are generated at a predictable speed, the complexity of this “lottery” should vary depending on the number of “players” (miners). For example, if many miners leave the network, the mining complexity should be reduced, or the rest will not have enough power needed to generate new blocks at the speed required to maintain the network.
In fact, the Bitcoin mining system is more complicated than described above, however, according to its basic principle, the upward movement of Bitcoin this year is a bullish sign. Investors come and go, the price fluctuates up and down, but interest in Bitcoin mining is clearly growing, and this year it has become more stable than ever before.
Publication date 10/14/2019
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Europol: Bitcoin remains the most popular cryptocurrency among cybercriminals
Bitcoin is still the preferred cryptocurrency for cybercriminals, Europol stated in the annual report “Assessing the threats of organized crime on the Internet” (IOCTA 2019). “Although we previously reported a slight shift towards more private cryptocurrencies such as Monero, bitcoin is still the currency of choice for both legal and criminal use,” the organization said. In previous IOCTA reports […]
Bitcoin is still the preferred cryptocurrency for cybercriminals, Europol stated in the annual report “Assessing the threats of organized crime on the Internet” (IOCTA 2019).
“Although we previously reported a slight shift towards more private cryptocurrencies such as Monero, bitcoin is still the currency of choice for both legal and criminal use,” the organization said.
In previous IOCTA reports, the organization pointed to the growing popularity of altcoins such as Zcash, Monero, and Ethereum among cybercriminals.
This year, Monero was the only altcoin mentioned by the EU police organization in a report. It notes that the use of the coin mainly relates to darknet markets that accept or trade Monero.
Europol emphasized that Monero was widely used for hidden mining, the distribution of which has been declining throughout the current year. The latter is partially due to the termination of the Coinhive browser mining service in March, the organization said.
Recall, it was previously reported that the volume of bitcoin transactions in the darknet for 2019 may exceed $ 1 billion.
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