Cryptocurrency Market Update (Jan 11)

Market Update

South Korea Plans To Ban Bitcoin Trading

South Korea is planning a law to ban cryptocurrencies such as Bitcoin being traded through its exchanges. The justice minister said cryptocurrencies were causing the government great concern. Meanwhile, several Seoul cryptocurrency exchanges have been raided this week in a probe into alleged tax evasion. The South Korean justice minister, Park Sang-ki, stated:

"There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges."

SEC Suspends Trading in UBI Blockchain Firm

The US Securities and Exchange Commission (SEC) has announced the temporary suspension of trading in the securities of UBI Blockchain Internet, Ltd on January 8, 2018. The SEC explained why it suspended trading in the securities of UBI:

“Questions regarding the accuracy of assertions, since at least September 2017, by UBIA in filings with the Commission regarding the company’s business operations; and concerns about recent, unusual and unexplained market activity in the company’s Class A common stock since at least November 2017.”

Florida Bill Legally Recognize Blockchain Signatures, Smart Contracts

A lawmaker in Florida has introduced a bill that, if passed, would create a legal foundation for blockchain data and smart contracts in the U.S. state. Notably, the bill states that a record or contract that is secured through blockchain technology is in an electronic form and is an electronic record, and confirms that a signature recorded through a blockchain also qualifies as a valid electronic signature.

As a result of these qualifications, the bill outlines that, if a person uses a blockchain to secure interstate or foreign commercial ventures, it would not impact ownership rights. In other words, if someone used a blockchain ledger to store information, the bill would legally recognize that person's rights to that information. Similarly, the bill states:

"A contract may not be denied legal effect or enforceability solely because: 1. An electronic record was used in the formation of the contract [and] 2. The contract contains a smart contract term."