16/07/2018: Biggest Stories in the Cryptosphere

1. FSB Releases Framework For Crypto Monitoring

The Financial Stability Board (FSB), an international body tasked with monitoring the global financial system and giving suggestions to the G20, has published a framework for monitoring cryptocurrency assets along with a report. A table outlining the first metrics to be monitored was also included in the document as annex. The project is mainly focused on how the crypto asset markets could lead to risks which would spread to other parts of the financial system. The framework will enable to track the size and growth of crypto markets, in an attempt to determine the impact they could have on the system as a whole. This would enable to detect financial stability risks sooner. However, the data is still inconsistent, and, therefore, future studies aimed at determining if more data is required might be carried out.

2. BlackRock Sets Up Team To Research Crypto

The investment management corporation BlackRock has set up a group tasked with researching how it could take advantage of the cryptocurrency market. The news comes following CEO Laurence D. Fink’s criticism of the emerging technology. The team, formed of employees from different areas of the business, will investigate both cryptocurrency and blockchain, along with how the competitors are including the technology in their business and how this might affect the asset manager. The findings will also determine if BlackRock should invest in Bitcoin futures or not.

3. Hong Kong Launches Blockchain Trade Finance

Hong Kong’s de facto central bank will launch a blockchain-backed trade finance platform next month. HSBC and Standard Chartered are two of the banks which will be connected thanks to the project, which was designed by Chinese Ping An Group. This will be one of the first and largest governmental programs upgrading a global trade finance industry worth $9 trillion. However, we also previously reported on projects conducted by banks focused on developing blockchain-backed trade finance platforms. Examples include UBS-backed Batavia, Indian ICICI and a project by nine banks from Malaysia. One of the main advantages of integrating this technology into one’s business is the reduction in process time and paperwork.

4. ICO for “Uber for Escorts” Criticised by Sex Workers

PinkDate, a platform that matches sex workers with clients, has been dubbed “Too pimp-like and not safe to use” by one sex worker speaking anonymously. The platform allows clients to find sex workers, and pay them with Bitcoin or Monero. The ICO is set to end this month. PinkDate’s token is a security, offering a share of profit. However, PinkDate runs no KYC or AML checks on its token purchasers and is not licensed to be selling a security. Consequently, the issuers are remaining anonymous. Sex workers who use the platform are expected to show PinkDate their government IDs, which is a leap of faith for those who work in such a stigmatised industry. Yet many claim that PinkDate has not done enough to foster their trust. PinkDate also charges sex workers on its platform higher fees than other similar projects in the crypto space, though these are lower than traditional platforms where sex workers can display their services. However, PinkDate has not made clear what other services and support it will be able to offer sex workers. Traditional platforms tend to attract sex workers with offers such as a safe place to work, or photoshoots and advertising.

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