Category Archives: GMO

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New Japan Internal Regulator Flexes Muscles, Limits Margin Trading Loans

The recently-formed Japan Virtual Currency Exchange Association (JVCEA) is proposing to set a limit on margin trading loans. Margin trading is the process of borrowing money from a broker to trade in cryptocurrency when the investor or trader has insufficient funds to do so.

It has been suggested that the new borrowing limit for trading platforms in Japan should be set at four times the customer deposit when margin trading. Currently, there are no limits on how much cryptocurrency investors can borrow when margin trading.

The Financial Services Agency (FSA) has released figures showing that in April, there were 142,000 crypto traders in Japan. That monthly figure represents a small percentage of the total of 3 million Japanese traders.

Out of 2017’s recorded USD 543 billion of crypto trading in Japan, margin traders accounted for more 90% of the derivatives trading total, which was over 80% of the entire cryptocurrency trading volume for that year.

The proposal which is now set to be presented to the FSA may rebound on the industry as there is some thought that by setting limits on investors, this may well lead to some investors moving away from using cryptocurrency exchanges, although the proposed changes would allow exchanges to set their own limits.

The JVCEA, which is proposing the new limit, comprises of 16 licensed crypto exchanges, who are self-described as security inspectors of Japan’s cryptocurrency exchanges. The association has gone to great lengths to cover all aspects of how exchanges should function, drawing up nearly 1,000 pages of self-regulatory measures. The JVCEA was formed by Japanese crypto exchanges earlier this year in response to a USD 534 million heist on the Coincheck platform.

The chairman and president of the organization is Taizen Okuyama of Money Partners. Bitflyer CEO Yuzo Kano is the vice chairman, along with Bitbank president Noriyuki Hiroeno. The other two directors are SBI Virtual Currencies’ Yoshitaka Kitao and GMO Coin’s Tomitaka Ishimura.

 

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Japanese Exchange Association to Ban Insider Trading and Anonymous Coins

Japan’s Virtual Currency Exchange Association (JVCEA) is set to announce new laws on insider trading next week, reports the Nikkei Asian Review.

The chairman and president of the organization is Taizen Okuyama of Money Partners. Bitflyer CEO Yuzo Kano is the vice chairman, along with Bitbank president Noriyuki Hiroeno. The other two directors are SBI Virtual Currencies’ Yoshitaka Kitao and GMO Coin’s Tomitaka Ishimura.

The JVCEA comprises of 16 licensed crypto exchanges, who are self-described as security inspectors of Japan’s cryptocurrency exchanges. It is proposing a ban, along with penalties for infringement, on cryptocurrency insider trading.

Also, the regulations may extend to “anonymity-oriented cryptocurrencies” on exchanges. These are currencies which can’t be traced to previous sellers as its felt that they could be used for money laundering purposes, such as Monero, Dash, and Zcash.

Other proposed regulations that are thought to become prioritized by the association relating to the protection of customer assets suggest a better management process for customers keeping private keys offline to prevent hacking opportunities. The publication further measure aimed at protecting customers:

“…exchanges will be required to keep their quoted rates from widely deviating from the prevailing market rates. Exchanges would also need to introduce circuit breakers to halt trading should a currency’s value suddenly surge or plunge.”

It is thought these new measures concerning private coins will be introduced due to earlier reports that if a major exchange were to handle a new currency this would cause a market surge, followed by the suspicion that the market had been manipulated. The new rules by banning the private coins will eliminate this risk, according to JVCEA.

According to the Nikkei Asian review, the association has gone to great lengths to cover all aspects of how exchanges should function, drawing up nearly 1,000 pages of self-regulatory measures.

The new requirement hasn’t gone down well with all exchanges, however. One exchange spokesman commented, “We’re being subjected to rules almost as tough as the Financial Instruments and Exchange Act.” – the rules which govern securities companies in Japan.

 

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New ASIC with 7nm Architecture Boasts 20+ billion transistors

The Japanese company GMO Internet Group announced on Wednesday the launch of their bitcoin application specific integrated circuit (ASIC) miner built on a 7nm architecture. They are aiming for the new compact chip design to launch on the 6th of June and for mass production of the B2 miner to lead to the shipping of the final product in October.

The company claims to have already mined a total of 906 bitcoin and 537 bitcoin cash as of April, with current CoinDesk prices that amount to almost USD 8 million in cryptocurrency.

New entries are welcome in the market as according to Bernstein, “Bitmain accounts for as much as 80% of bitcoin application specific integrated circuits (ASICs)”. Bitmain has generated between USD 3 billion and USD 4 billion in profits in 2017. The Beijing-based company rivals profits of one of the market leaders Nvidia, who specializes in chipset design and manufacture. Nvidia’s market cap was USD 147 billion, turning profits of USD 3 billion in 2017. With mining technology reaching similar levels to that of well-established companies it puts into perspective the rate of growth that the market is experiencing. Bitmain has achieved what Nvidia took several decades to achieve in a brief window, this is partially down to the rapid increase in the value of bitcoin. This year they announced their Ethereum ASIC which is going to add to their already expanding profits.

Bitfury Group is also generating competitive revenue with its bitcoin mining operations, and software services turning over USD 93.7 million revenue in 2017’s financial year.

7nm architecture and hardware accelerators

Samsung revealed earlier this year that it is due to start manufacturing ASIC chips in January 2018. Intel has been developing some of its own technologies, claiming their hardware accelerator could create a power reduction of as much as 35 percent.

“Because the software and hardware utilized in Bitcoin mining uses brute force to repeatedly and endlessly perform SHA-256 functions, the process of Bitcoin mining can be very power-intensive and utilize large amounts of hardware space. The embodiments described herein optimize Bitcoin mining operations by reducing the space utilized and power consumed by Bitcoin mining hardware.”

The 7nm Architecture will be the latest advancement in the bitcoin mining sector as well as the computer industry with four-fold efficiency. 7nm semiconductors contain 20+ billion transistors, whilst fitting on your fingertip they are still capable of performing complex computations. Samsung and IBM are also researching and developing these 7nm chips. With 7nm chips on the horizon, this then sets the future for 5nm semiconductors and a move closer to the end of Moore’s Law.

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