Alex Morris

Crypto-related Money Laundering Cases Experience Eight-Fold Increase in Japan

It might seem like crypto crime has skyrocketed in Japan this year, but it’s simply the direct result of the policy that puts exchanges under closer scrutiny
Crypto-related Money Laundering Cases Experience Eight-Fold Increase in Japan
Contents

According to The Japan Times, the number of money laundering cases that involve cryptocurrencies has experienced an eight-fold increase this year. Still, digital assets are only responsible for a minuscule two percent of all suspicious transactions.    

An eight-fold spike  

On Dec. 6, the National Police Agency (NPA) released a report which states that almost 6,000 of cryptocurrency-related money laundering cases were recorded in ten months. This figure is almost eight times bigger than the previous one – in 2017, only 700 similar cases were reported from January till October. Criminals would use a fake ID in order to get unauthorized access to other accounts.

Overall, there were more than 346,000 instances of suspicious trading (mainly related to traditional banking institutions).     

Misleading figures

The results are not necessarily indicative of the growth of crypto-related criminal activities given that exchanges weren’t supposed to report suspicious trading activity to the FSA. In April, the NPA eventually imposed such an obligation on local cryptocurrency trading platforms for them to align with anti-money laundering (AML) regulations. NPA states that transactions are being monitored more ‘rigorously’ with the current notification system.

Regulatory hindrances

U.Today has recently reported that Singaporean authorities are struggling to battle fake Bitcoin investment scams because of the anonymous nature of Bitcoin. In the case with money laundering, discrepancies between cryptocurrency regulations in different countries create yet another hindrance.

It is worth mentioning that Japan is considered one of the most progressive nations when it comes to regulating digital assets. Cryptocurrency exchanges are legal in Japan, but sometimes they get subjected to an ALM shakeup in order to enhance investor protection. The Japanese Virtual Currency Exchange Association (JVCEA) has been recently granted a self-regulatory status by the FSA, the country’s major financial watchdog.

💼 Related Article
6 Japanese Firms Launch Crypto Exchanges on Tokyo Stock Exchange
🔥 Hot
6 months 3 weeks
256
6 Japanese Firms Launch Crypto Exchanges on Tokyo Stock Exchange

views
👓 Recommended articles
🎤 Interviews Masha Beetroot

Ripple’s David Schwartz: What Bitcoin and Ethereum Should Do to Catch Up With Ripple

🎤 Interviews
What is the next step for Ripple after having Revolut coin added?
Ripple’s David Schwartz: What Bitcoin and Ethereum Should Do to Catch Up With Ripple

Ripple’s Chief Cryptographer David Schwartz aka “JoelKatz” is one of the original architects of the Ripple consensus network. In an exclusive interview to CryptoComes, he talks about the Ripple’s next steps and the evolution of crypto exchanges.

Masha Beetroot: According to EToro study, Ripple’s XRP turned out to be the most traded coin by users of all age groups. What should Bitcoin and Ethereum do to catch up?

David Schwartz: I think the key they need to have is adoption for real use cases. Just a clear vision on what they are for, why would people use them, to do what.

I think Ethereum kind of built market share by this sort of broad idea that you can use it for anything with the smart contracts.

Now I think it’s time to answer the question like here are some very specific things. You have to have some example you can’t just say use it for anything.

Bitcoin I think has kind of painted itself into a corner a little bit as a store of value that you can’t easily transfer competing stores of value you can easily transfer. It just comes back again to use cases; people need a clear idea of what they are going to use it for.

💼 Related Article
EOS Platform Vulnerabilities Detected by 360, Chinese Internet Security Giant
🔥 Hot
6 months 3 weeks
256
EOS Platform Vulnerabilities Detected by 360, Chinese Internet Security Giant

MB: What is the next step for Ripple after having Revolut coin added?

DS: I think the next step for XRP, the token, is going to be broader adoption for people who see advantages to the high-speed low cost and decentralized exchange. I think the next step for Ripple as a company is going to be proving that we can actually use XRP to settle institutional payments.

💼 Related Article
Federico Pistono: Bitcoin’s Power Structure is Very Robust, Altcoins Are Test Bed
🔥 Hot
7 months
256
 Federico Pistono: Bitcoin’s Power Structure is Very Robust, Altcoins Are Test Bed

MB: In what direction will the evolution of crypto exchanges go? Maybe it’s about consolidation or what do you think?

DS: I think interoperability is going to be the big focus. We have something like 1,500 cryptocurrencies right now that are aiming at different use cases. Whether one of them will be for trade finance or settling equities transactions or smart contracts.

If we have all these different tokens that are aimed at different use cases, then it becomes a pain point because if my money is on this one token and I need to pay you some other token, we need to solve the interoperability problem.

It’s very ironic a lot of people got into this business because they saw like liquidity or Silo, like some like dollars or they are on PayPal or they are on these different payment systems. So we said build these systems that will solve this problem.

And what happened is we built Bitcoin which is a Silo, we built Ethereum which is a Silo, we have XRP which is a Silo. We actually replicated a newer sexier version of the problem we were trying to solve.

💼 Related Article
Adult Industry on Blockchain: Leah Callon-Butler Changes State of Play
🔥 Hot
7 months 3 weeks
256
Adult Industry on Blockchain: Leah Callon-Butler Changes State of Play

🎤 Interviews
views
👓 Recommended articles
David Dinkins

Mt. Gox Has Tanked Bitcoin Price Again, Bankruptcy Trustee Reveals $405 Mln in Sales

We thought Mt. Gox was done interfering with the Bitcoin markets, but the bankruptcy trustee spent the last several months dumping $400 mln in Bitcoins onto the market.
Mt. Gox Has Tanked Bitcoin Price Again, Bankruptcy Trustee Reveals $405 Mln in Sales
Contents

The bankruptcy trustee for the defunct Mt. Gox exchange announced yesterday that he had sold $405 mln in Bitcoin over the last few months, a total of 35,800 BTC and 34,000 BCH. The selling of such massive volumes could be a big part of the reason Bitcoin fell from its high of $20,000 to its current price of $9,300. Even if the coins were traded over-the-counter (OTC) rather than on exchanges, it still would have suppressed demand, by filling the needs of buyers who otherwise would have bought off exchanges.

Backstory

Mt. Gox was the original Bitcoin exchange, transformed from a website that sold Magic: The Gathering playing cards to the largest Bitcoin exchange in the world, with over 80% market share. (Mt. Gox stands for “Magic: The Gathering Online Exchange”.) In early 2014, withdrawals from Mt. Gox were frozen, and eventually the company admitted to losing an astonishing 650,000 Bitcoins (which would have been worth $6 bln today).

Shortly after shuttering the exchange, Mt. Gox announced that it had found a paper wallet containing 200,000 BTC, which was turned over the the bankruptcy trustee. The trustee has now revealed that following years of wrangling, he has sold enough Bitcoins – 35,800 – to pay back Mt. Gox’s creditors, including customers who lost funds when the exchange closed down. Unfortunately, for the moment it appears that the creditors will be paid for the value of their holdings at the time of their loss – $440 each, to be exact.

Creditors are seeking a prorated portion of the remaining Bitcoins, instead, but Japanese law appears to be against them.

Karpeles’ revenge

In fact, Ars Technica reported that former CEO Mark Karpeles could end up receiving the balance of the Bitcoins – over $1 bln worth – once the creditors are paid for the fiat value of their loss. Many consider Karpeles himself to be responsible, or at least negligent, for the loss of their Bitcoins. It eventually came to light that Mt. Gox had created bots to drive up the price in November 2013 in an effort to earn back the Bitcoin that had been lost. Authorities arrested a man last year wanted in connection with laundering the missing Mt. Gox Bitcoins through the now defunct BTC-e exchange.

The collapse of the Mt. Gox exchange in early 2014 is credited for the multi-year bear market that followed, taking Bitcoin down from around $800 to a low of $150 in 2015. It would be supremely ironic if it turned out that the Mt. Gox trustee, selling $405 mln in Bitcoin at or near its 2017 peak, was responsible for tanking the price this time around, also.

For what it’s worth, the bankruptcy trustee has told the court that he may sell more Bitcoins, though he didn’t specify the amount. He still has $1.9 bln worth of Bitcoin left.

views
👓 Recommended articles
Cryptotips Darryn Pollock

5 Crypto Tips: How to Keep Your Bitcoins and Other Coins Safe

💡 Cryptotips
The cryptocurrency space still has lots of scary and dark places, so keep those coins safe with these tips
5 Crypto Tips: How to Keep Your Bitcoins and Other Coins Safe
Contents

Cryptotip 1

This may sound obvious, but then again it may not, but never share your private key with anyone. Its obvious because that is basically tour pin, but for many crypto users, a private key is an ethereal piece of information as many of them will be using centralized exchanges which do not hand out users’ own private keys.

Cryptotip 2

When it comes to using exchanges, especially the centralized ones which are like honey to hackers, do all you can to secure your account - so, use 2FA. Two Factor Authentication is offered by most exchanges and makes it a lot harder than simply knowing your password to access your account. This multi-factor authentication means there is another piece of information that is needed that only the user has one them. Great for sensitive information and Bitcoin.

Cryptotip 3

If you are getting big into the crypto game, it is probably a good idea to diversify, that is to say, not only your coins - which your portfolio is up to you - but also how and where you hold them. A large sum of coins or money held in one account means the target on your back is bigger, and it also means you are only one step from losing it all.

Cryptotip 4

Even if you are going to be even smarter, and you are holding large sums of coins for growth, it is probably wise to take the risk out entirely and get them offline and into a Cold Wallet. A cold wallet is a storage space for your coin that is not connected to the Internet, and thus, not accessible by hackers. Of course, your coins then take up a physical object that is prone to be lost, physically stolen or damaged, so don’t be clumsy with it.

Cryptotip 5

Have common sense. Again, it sounds basic, but in the world of cryptocurrencies, there is such hype and excitement about this money making space that the unbelievable is often true. That opens the doors for scammers and fraudster. So, if you feel something is a bit odd in an offer or opportunity, don’t be gung-ho, check it out thoroughly before making the plunge.

Cryptotips
views
👓 Recommended articles
🎓 Trading Guide Andrew Strogoff

Bitstamp Review: Cryptocurrency Exchange For All Types Of Traders

Trading Guide
Bitstamp is a very tough player of the crypto exchange industry, offering many features to its clients
Bitstamp Review: Cryptocurrency Exchange For All Types Of Traders
Contents

trading platform

Hello, mates. I know that many of you are looking for a trading place where you can buy and sell both cryptos and fiat money. This review is related to Bitstamp cryptocurrency exchange. Here I will cover such points as registration procedure (including personal verification), trading features, conditions (including fees) and some other important aspects.

Before I start describing the main features of this trading platform, I would like to familiarize you with the company itself. Bitstamp is one of the oldest cryptocurrency marketplaces in the world. The company began its activity in 2011 in the UK. However, later they have opened other offices in Luxemburg and New York. Crypto exchange Bitstamp received its license in Luxemburg.

This marketplace is widely known within the cryptocurrency community and I would tell that this is true as you hardly can find a trader who heard nothing about it. Moreover, several famous and popular tabloids like Forbes, Coindesk, Reuters have mentioned Bitstamp in their articles. The company has established cooperation with Ripple, CACEIS and Swissquote.

This crypto exchange trading place offers English only. There are no other language options at all. However, it gathers traders from all over the world.

💼 Related Article
Bitcoin Price Volatility Explained
🔥 Hot
6 months 1 week
256
Bitcoin Price Volatility Explained

How to create an account with Bitstamp

Before you start trading with this exchange, you need to create your account. There are no difficulties to do it, as the form is very easy. You need to fill in your name, email address and accept terms of use and Bitstamp Privacy Policy.

 account with Bitstamp

Above you can find the form that I have already filled in. After pressing on “Register” you will proceed to the second step. You will be sent an email with a confirmation link in order to end account creation procedure.

💼 Related Article
How to Trade Cryptocurrencies
🔥 Hot
6 months 1 week
256
How to Trade Cryptocurrencies

Once you have created your account, you can proceed with its verification. Here I want to make a reservation. I think it is not a secret that there are trading platforms with no obligatory verification procedure, meaning without confirming your identity, you will be able to trade but with some limitations.

Bitstamp requires verification from all service users without any exception. Moreover, you will not be able to proceed to deposit and withdrawal step before you confirm your identity. This requirement is obligatory because the platform has a license.

Now I am going to stop on details of the verification procedure. After you have created your account, you can login and navigate to “Verify account.”

I can say that this procedure is a bit harder than creating an account as you have not only to provide your personal data, but also to provide exchange with your ID documents scans. What kind of personal information is required?

You need to provide Bitstamp with data, indicated in your ID. Additionally, you need to upload the following documents:

  1. ID photo.

  2. Proof of residence document photo (this can be your bank statement, utility bill or taxes certificate, for example).

💼 Related Article
What is Trading and Cryptocurrency Trading, Their Main Features
🔥 Hot
6 months 1 week
256
 What is Trading and Cryptocurrency Trading, Their Main Features

How to deposit and withdraw money

Bitstamp offers the opportunity for all its clients to deposit and withdraw in both fiat currencies and cryptos. You can use, for example, VISA or MasterCard as well as SEPA (European Bank). As for cryptocurrencies, you are allowed to deposit and withdraw with Bitcoin, Litecoin, Ripple, Ethereum and others.

How to place your first order with Bitstamp, order types, trading tools

When you have already created your account and verified it, deposited some amount, you can start trading. Here, I want to make a couple of points for you to pay attention to. Bitstamp offers a high-quality trading platform with several features including professional charts and some other important.

The first thing that I have noticed when I have entered the platform for the first time was the number of currency pairs, which is lower as compared to the most of competitors. The number of pairs is slightly above 10.

order typesNow let’s get down to the trading platform. This is a very important aspect for every trader as charts allow users not only to see the current price but also to analyze it using historical data. Bitstamp offers modern full functional chart with several trading tools.

Take a look at the screenshot. You can see there candlestick chart. In the upper part of the chart, you can choose indicators and different graphic tools. As for indicators, there are many useful algorithms including the most popular Bollinger Bands, ADX, ATR and the others. Graphic tools are represented by different types of lines and other geometric patterns. Here you can find Fibonacci retracement as well.

Before you open any trade you need to choose a trading pair. This option is also available in the upper side of the platform. The next step is to choose the order type. Here I want you to pay attention to the different types of trades that are available with Bitstamp: they are the following:

  1. Instant order. The easiest one that is recommended by the exchange to beginner traders. Here you buy or sell cryptocurrency at the current market price.

  2. Market order. Is it a kind of instant order, but you can buy or sell cryptocurrencies at best prices. This order is suitable for those who have some trading skills already and want to improve their entry points.

  3. Limit order allows traders and investors to choose the price at which they will buy or sell cryptos. This one is suitable for professionals and skilled market players. The main idea of this order is to set a price at a desirable level and wait for the crypto to reach it.

  4. Stop order. This kind of trade allows users to limit their losses in case if the price goes in the opposite direction.

Once you have chosen your pair and order type, you can input the amount you want to sell or to buy and start trading. As far as you can see, there is nothing difficult here.

💼 Related Article
Major Cryptocurrency Market Analysis Methods
🔥 Hot
6 months 1 week
256
Major Cryptocurrency Market Analysis Methods

Bitstamp fees

Almost all cryptocurrency exchanges take their fees not only for trading but also for deposit and withdrawal procedures. Trading fees at Bitstamp are diversified meaning the more you trade, the less you pay. This is a fair approach, I think as exchange earns more when you have higher month trading volumes.

As for deposit and withdrawal fees, they are taken by the company but they do not come directly to the company’s pocket as this money goes to payment systems.

The highest trading commission rate is 0.25 percent. It is taken from all those who’s monthly trading volume is below $20,000.

Security and support service

I have a good news for you. Bitstamp requires two-factor authentication since June 2018. This is a mandatory procedure, which increases the security level of your own trading account. You can use both Google Autenticator or Duo Mobile services.

💼 Related Article
Cryptocurrency Trading Signals, How to Choose and to Use Them
🔥 Hot
5 months
256
Cryptocurrency Trading Signals, How to Choose and to Use Them

Moreover, you can switch on notifications about all the important events that take place in your trading account. Those messages will be transferred directly to your email address. This allows users to get updates on all the important events and take measures in case of any suspicious acts.

As for the support service, some users say that sometimes it takes time to receive any answer from the team. The speed of reaction is slow, but to tell the truth, I think that this is due to the inflow of investors. Bitstamp is one of many exchanges having such problems and I hope they are going to solve them in the future.

Pros and cons

This is my most preferable part of any crypto exchange review. Here I’m going to underline those pros and cons I think the most important of the company. I’m going to start with advantages. Here they are:

  1. Great working experience. Bitstamp operates since 2011. The team does not hide their members, which is a positive aspect as they are trusted by the crypto community.

  2. Bitstamp has its license and operates according to legislation. Users may be sure that their money is safe and they will not be scammed by the administration.

  3. Liquidity. This exchange has high liquidity as there are serious daily trading volumes. This means that the currency pairs are less volatile and you can use all types of orders.

  4. Several payment methods allowed. Bitstamp offers not only cryptocurrencies but also fiat money. You can deposit USD and EUR as well as withdraw them from your trading account. Credit and debit cards such as MasterCard or VISA are also available.

  5. Friendly user interface. I heard no complaints about Bitstamp’s interface from users and I found no negative testimonials about it.

💼 Related Article
NEO Trading Guide For Beginners
🔥 Hot
5 months 1 week
256
NEO Trading Guide For Beginners

And now I’m going to share with you my negative thoughts about the exchange. They are not numerous, but I think it will be interesting for you:

  1. Verification requirements. This is not the big problem, but I think there are those who want to stay anonymous in crypto industry. Bitstamp does not allow to stay in shadow as every user has to do the verification procedure before getting access to trading.

  2. A small number of cryptocurrency pairs. It is true. You will not find any altcoins from above the top 20. However, Bitstamp offers in its turn the possibility to work with hybrid pairs including USD and other fiats. The exchange can be used as your pass into the world of altcoins as you may buy BTC or ETH here and then transfer those cryptos to other exchanges with a wider range of pairs, which do not support fiat money.

  3. Lack of localization. The website is in English only. Other languages are unavailable. I’m far from thinking that the international language is not enough for such a trading platform, but for some traders, it may be a real problem to work with the exchange.

Bitstamp overview

Before making the full stop, I would like to make a brief overview of this crypto exchange. I’m not going to give any recommendations as it is up to you to decide whether to place your investments there or to find some other trading platforms. However, I want you to pay attention to some interesting moments.

Bitstamp operates since 2011 and there were no significant security issues. This is the first thing that I have paid attention to. Bitstamp offers great opportunities for all those traders who want to use technical analysis in their trading routine as there is a large number of indicators and other important tools available.

💼 Related Article
ZCash Price Prediction- How Much Will cost ZEC in 2018?
🔥 Hot
5 months 2 weeks
256
ZCash Price Prediction- How Much Will cost ZEC in 2018?

🎓 Trading Guide
views
👓 Recommended articles
Wikicoin Katya Michaels

WikiCoin: Selling Bitcoin

📚 Wikicoin
Once you have acquired Bitcoin and chosen a place to store it, you may want to sell your cryptocurrency for cash or to get a start in trading.
WikiCoin: Selling Bitcoin
Contents

Now that we have discussed buying Bitcoin and setting up a wallet, it is time to address the sale of Bitcoin and other cryptocurrencies.

There can be many reasons for selling cryptocurrency: maybe you’re converting the salary you receive in Bitcoin to fiat, maybe you are exchanging funds for other coin investments. If you are selling with the intention to make a profit you should consider doing your research first. Sometimes, fraudsters take advantage of inexperienced consumers and the cryptocurrency market is very volatile.

Price evaluation

Numerous tools are available online for monitoring the changes in the cryptocurrency market. One tool you might use to evaluate the condition of the market is price reviews. A price review analyzes the price movements of different coins on the cryptocurrency market, offering possible explanations and predictions for price changes based on the market’s history.

Options

Nearly any platform that allows you to buy Bitcoin will allow you to sell Bitcoin — this includes all exchanges and some Bitcoin ATMs. Just like storing different cryptocurrencies in different wallets, you might want to use different exchanges to sell cryptocurrency depending on your needs. Different platforms may have different advantages for different types of investors. Platforms like GDAX and Gemini are intended for large volume trading by institutional investors; on the other hand, exchanges like Coinbase, Kraken, Bitstamp and Poloniex are more convenient for retail investors because they provide additional services like secure storage.

Some things to remember

There are a couple of things to keep in mind when selling cryptocurrency.

First, while the market coin price is locked in at the time of sale, the time until the transaction is completed and you receive your funds may differ, so plan ahead. The standard exchange procedure is that a transaction needs to go through six verifications before it is considered complete.

Second, some exchanges will require identity verification for all transactions while others are less stringent. You may want to consider this before signing up for an exchange.

And lastly, make sure to declare any profits you make on cryptocurrency sales to the appropriate tax authorities. Although one of the greatest advantages of using Bitcoin and other cryptocurrencies is the ability to complete transactions without a third party, not declaring your crypto profits is illegal. The transparency of the public ledger and the government’s heightened attention to cryptocurrency industry could result in punitive measures.

Wikicoin
views
👓 Recommended articles