Bitcoin
$ 56,909
Ethereum
$ 3,562.7
Litecoin
$ 347.76
okex ads

Defi Hacks, European Regulations and a world expecting 3.1 trillion Dollar in 2030

 

Wow, what a week folks. Germany announced institutional can exchange and buy into cryptocurrencies up to 20% of their value. That sounds fantastic and ongoing from July you will see a lot of invests. Germany is one of the world countries which has a high understanding of Bitcoin. In the beginning of Bitcoin, a lot of nodes have been operated from German users. Because Germany has a lot of tech hubs. So with the Suttgarter Stock Exchange (called “Stuttgarter Boerse”) there is a regulated “Wall Street” pendant who separated one of his branches to open the most supported Bitcoin Platform in Germany.

But the good times for investors and companies in Germany had yet come to an end. That’s the reason why you do not see any Bitcoin ATM in Germany. The financial authority called “BaFin” won a fight over a couple of years who is responsible for crypto related business. The former chied operator and head of BaFin has been suspended not by crypto crime – he is one of the leading heads in the “Wirecard Case”. But germans regulators are not fine with Crypto. They say “they love Blockchain” and do not understand that Blockchain only exists in Bitcoin, Bitcoin hard forks (hard copies like BCH, Doge, BSV, Bitcoin Private) and copy coded systems like Etherum 1.0.

What they love is Distributed Ledger Technology because it is centralized and has a responsible entity. Bitcoin ATM’s have been forbidden. It was a long way because in a court trial it was declared that you do not need a financial permission to operate. This Berlin statement unfortunately does only operate for a year. The German legislative changed their opinion and directed the decisions into BaFin hands again. First act was to remove BTM`s (Bitcoin Teller Machines). Today Europe except Germany already operate BTM’s. So if you invested under the new rules it is a hard tracked game.

On the other hand, FinTec business and so called “Blockchain companies” have no problems operating and doing money laundering. Because this is no “crypto” business. Only 1% have been used in Crypto for Drugs and more reports from all over the world just declared. In fact 99% is fiat laundering like Wirecard with the BaFin.

 

Spanish regulators break down on crypto business .

With the directive 2018/843 (AMLD5) every company providing Crypto Service must be registered there no matter where they operate in the Europe. Every custody service for Bitcoin and other cryptocurrencies has to send the report about suspicious activities. More about everyone who offers a wallet must collect users’ data and report. Regulators covers Exchanges, mutual funds, and custodians .

 

The steps are an easy to do list:

1) Creation of a single registration system Data held here are the personal data from those who use the services and the data from the Mercantile Registry (https://en.wikipedia.org/wiki/List_of_official_business_registers)

2) Cross check data with other countries of the European Union – the public access has been restricted and is no longer limited to obligated parties and authorities

These regulations have been invented in 2018 and have gone online in parts this year. Autumn this year the systems should be fully implemented.

A point which is interesting to know: They do not share data with United States but they followed the advice of the Task Force in the US how to track and monitor (FATF)

 

A new DeFi hack – the result of ignorance in the DLT world

Uranium Finance Platform has lost $50 Million of his funds in Bitcoin, Ethereum, Binance and more. Ugly said it has happened on the Binance Smart Chain. As you know Binance is the leader in the financial world and always praise his system as the securest.

What a mistake 😉 But the mistake is another. Disregarding the problem is the same like the DAO on Ethereum times ago will continuously lead in new hacks in the DeFi world.

Solidity is a smart contract language which created the ERC-standard. And solidity is bag full of bugs. Cybersecurity is no longer a topic for the DLT (so called Blockchain world) as long you do not change smart contract scripting and native implementation far away from a layer solution.

As long we do not accept and hesitate to recreate this concepts – no one can be sure his assets will be stolen

Yes it is true – You can for example steal an NFT which is just an ERC-721 and likewise contract. Its that easy like hacking a Defi System. The protocols we use are the platform for hackers making it easy.

Will ETH continue to raise after his all-time high? Well now it is an advertisement and promotion campaign. After people realizing that MetaMask wallets are a problem itself in custodian service and the ETH stack overflow problem comes to fully targeting the system no one will go for a long time maybe it will split again and again. ETH 2.0 POS and ETH 1.0 POW are also in fight of interest… the future is clear… ETH will stay but the value will get under pressure through more hacks, uncertain of developments and of course scalability. This is the reason why DeFi will lost also his coins like wBTC sooner or later. Bitcoin is not DeFi and therefor scalability is only for those who wanted an alternative banking system and not a digital copy of the old world.

 

Written by : Prof. (Dr.) h. c. Joerg Molt

 

Related Posts

Leave a Reply

Newsletter

Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

Popular Posts

Bitcoin vs. Gold vs. Standardization
May 6, 2021By
Bahrain based Fasset tokenization platform tokenizes Tesla with NEC payments
May 6, 2021By
Trade and Get Paid, As P2P Crypto Marketplace, Bitzlato introduces 30% Cashback for the Next 7 Days.
May 6, 2021By

Advertisement

Video Posts

In
Getting Fintech And Blockchain Startup Ready For Investment
May 5, 20210
In
Discussion Around Fintech And Financial Inclusion
April 27, 20210

Crypto Stats


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin56,909 0.22 % 0.79 % 3.83 %
Ethereum3,562.7 0.63 % 3.77 % 29.61 %
Binance Coin635.32 0.63 % 2.13 % 12.93 %
XRP1.680 1.36 % 7.34 % 23.32 %
Dogecoin0.5983 0.31 % 1.26 % 85.44 %
Tether1.000 0.03 % 0.02 % 0.02 %
Cardano1.620 0.35 % 14.27 % 21.64 %
Polkadot40.88 2.32 % 3.94 % 20.26 %
Bitcoin Cash1,539.3 8.02 % 21.66 % 69.43 %
Litecoin347.76 1.28 % 2.13 % 34.32 %