Good morning traders!
In the spirit of my recent blog, where we reviewed high-frequency trading and asked, whether it has made it's way to cryptocurrency markets, there is more news out on this topic.
Bitasia, a Chinese cryptocurrency exchange, has announced that they will start allowing Bitcoin Cash transactions with 0-confirmations. With that move, they are one of the first exchanges to make that change, making cryptocurrency trading instant. Via their website (Google translation tools used):
Important Announcement: Bit Asia Technical Support BCH Zero Confirmation (0-conf) Arrival
Published: 2018-03-21 16:54:51 . After careful consideration and careful consideration, BitAsia will support the BCH zero confirmation ( 0 - conf ) arrival and instant trading.
Most of the cryptocurrency communities, until now, preferred that all transactions need at least on confirmation, in order to prevent double sends. Recently an online store selling various giftcards for Bitcoin Cash and others, cryptonize.it, offered a challenge to the cryptocurrency community, where they could try to exploit the 0-confirmation BCH transfers, that were enabled on their online shop. The community reacted to try yet everyone failed.
According to the Bitcoin Cash developers, 0-confirmation transfers on their network are complety safe.
So what effect will this move have on trading cryptocurrencies? Whether the change is safe or not, only time will tell, as more hackers, whether with good or evil intentions, try their hand. But one thing is certain, enabling 0-confirmation transactions on exchanges, will open the door for high speed trading. Wall Street and software guys are always watching and looking for markets to exploit. You, as a retail trader, trying to trade Bitcoin Cash, should be aware of the potentially hazardous price moves, that HFT brings with it.
I hope every retail trader takes this into account. Many newer guys don't even remember or are not aware of the flash crashes that have occurred on cryptocurrencies. Remember the Status ICO, when the price of Ethereum crashed from 400 to 10 in a matter of seconds? This is what could be coming to cryptos, perhaps on a smaller scale, though. Until there is much much more real liquidity, not ghost liquidity that the HFT brings, the threat remains real.
This is not FUD or end of days fear spreading. I, as a trader believe that every trader, new or experienced, should have as much information as possible, about who they are up against. For now, we are all part of the cryptorevolution and we can just monitor, how the cryptoworld evolves and shapes itself around us. Be informed and be aware.
Sources:
https://www.bitasiaex.com/
bitcoin.com
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By now, probably everyone knows, that China and Japan are not exactly rolling the red carpet for Binance, the cryptocurrency exchange. Binance has had to move it's main offices from China to Japan under the governments crackdown, but now face another move - namely the Financial Services Agency of Japan has announced that Binance has been operating in their country without a proper licence and demand the exchange to halt it's operations or face criminal charges. The FSA believes that Binance is not applying KYC properly and does little to prevent money laundering.
Now the exchange is looking to set up their tent in Europe, namely Malta. Malta has recently announced their plans to start a legal body to regulate and certify blockchain businesses, instead of cracking down on them, so it comes as no surprise, that Binance has turned it's eyes towards them.
What's the peculiar thing about it? I never would have guessed that a country's Prime Minister himself would welcome a cryptocurrency exchange, but this is exactly what happened.
Via twitter.com
On March 23rd, the Prime Minister of Malta, welcomed Binance to their country via a short announcement on Twitter and stating that they "aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies".
Looking how different countries all have different approaches to cryptocurrencies, it solidifies my opinion, that all countries are not equal. When some goverments organize witch-hunts for the revolutionary industries that will rock the wold, other are looking to compromise, evolve and give chances. Regulation is what will help the blockchain become a revolutionary invention, not crackdowns.
Sources:
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