Cryptocurrency Latest: Stablecoins, the crypto ecosystem and North Korean hackers
Lawyers fight to bring jurisdiction and more stable currencies could offer a new future, as people look to make digital currencies viable. The Tradefair team brings you the latest cryptocurrency roundup...
"At this important moment for the global adoption of digital assets, establishing trust among market participants will be critical for success."
- Sydney Schaub, General Counsel at Gemini.
Crypto assets aren't appealing to everyone, but the industry is slowly but surely evolving to facilitate trading in this new market and better support investors who want to take the risk. Here are some of the biggest stories happening in cryptocurrency investment this week:
North Korea group leading crypto hacking
Lazarus, a hacker group based in North Korea, has been responsible for at least five attacks on cryptocurrency exchanges, according to Bitcoin Australia. In a new report, cyber security company Group-IB say these crimes have resulted in a total loss of $571.3 million.
It looked at data from 14 hacks in the past 18 months and identified security solutions to defend against the latest hacker technology.
Speaking at the CyberCrimeCon in Moscow, Group-IB CTO Dmitry Volkov warned that the attacks could increase.
"Last year we warned that hackers competent enough to carry out a targeted attack might have a new target - cryptocurrency exchanges. And at the beginning of 2018, hackers' interest in cryptocurrency exchanges ramped up."
Lawyers are fighting to define crypto coins
Forbes has reported that lawyers are being positioned at the heart of the fight to regulate the crypto ecosystem, making it easier and simpler for investors to partake.
It featured three women in particular, who each specialise in cryptocurrency related matters, who are leading innovative techniques to help make digital assets more appealing to the global financial market. Joshua Ashley Klayman, Veronique Dalli, and Sydney Schaub are all working towards creating a better legal framework for cryptocurrencies in their different jurisdictions.
Schaub has joined Gemini as General Counsel to help the firm expand its in-house legal capabilities and focus on providing a structure for digital assets. She said: "At this important moment for the global adoption of digital assets, establishing trust among market participants will be critical for success."
Dalli, a cryptocurrency legal specialist based in Malta, has a more overarching strategy, helping the country develop an innovative framework. She said "It must be understood that the Maltese government is a sound legal system that doesn't come up with any surprises once an initial coin offering (ICO) is launched."
Klayman, Founder and Managing Member of a boutique blockchain-focused law firm, believes that steps need to be taken from a legal point of view to enable more investors to get involved in the crypto market. She said enhanced disclosure in connection with token sales could play in key role in widespread adoption.
The rise of stablecoins
Stablecoins, which are supported by blockchain systems but tie their value to identifiable sources such as the US dollar or gold, are becoming a viable asset for the future, according to Ethereum World News.
It states that, while companies were drawn to the ERC-20 token model for ICOs in 2017, as the end of 2018 draws closer, investors are exploring the benefits of stablecoin models.
With a more predictable system for determining value, stablecoins are less vulnerable to the mass fluctuation seen by cryptocurrencies throughout 2018. This will be welcome to some traders as it's much more similar to the established financial system they are experienced in.