The National Bank of Rwanda, the country’s central bank, has issued a public service announcement on alleged cryptocurrency scams, according to an official Twitter post on May 30. The central bank specifically warns the public about initial coin offering (ICO) scams and crypto-based Ponzi schemes, which purport to offer a quick and significant return on investment for early adopters. These sorts of scams have reportedly been active in Rwanda, through firms like Supermarketings Global Ltd, 3 Friends System (3FS) Group Ltd, OneCoin, and Kwakoo (OnyxCoin). The National Bank of Rwanda cautions investors to vet their potential projects, and reminds the …

The Australian Securities and Investment Commission (ASIC) published new initial coin offering (ICO) and cryptocurrency guidelines on its official website on May 30. The regulator detailed the prerequisites that a cryptocurrency business needs to follow in order to comply with both the Australian Corporations and ASIC Acts, but did not cover regulations enforced by other national institutions. Notably, the guideline specified that if a crypto asset is a financial product, then the issuer and firms dealing with it are required to hold an Australian financial services license. The report also notes that miners will be considered part of the clearing …

The Securities and Futures Commission (SFC) of Hong Kong has expressed concern over the lack of regulation for dealing with fraud in the crypto space, local news agency The Standard reports May 30. SFC enforcement chief Thomas Atkinson has recently pointed out problems associated with the existing regulatory uncertainty over initial coin offerings (ICOs) and cryptocurrency trading. Atkinson, who resigned from Canada’s largest securities enforcement authority, the Ontario Securities Commission (OSC), back in 2016, emphasized that the structure of certain crypto exchanges is “beyond the scope of the SFC,” the report notes. The official urged local lawmakers and authorities to …

Bermuda-based fintech firm Velocity Ledger Technology (VLT) has launched a testnet and blockchain API for trading digital assets in Bermuda, according to a press release shared with Cointelegraph on May 28. VLT is reportedly letting users develop digital asset applications with their blockchain viewer and web portal, if they are granted early access to the products via request forms. User can create apps for issuing, trading and settling digital asset tokens. Companies can reportedly launch initial coin offerings (ICOs) via these applications via a white label software-as-a-service basis, provided that they are approved by the Ministry of Finance of Bermuda …

Between May 23 and 26, 2019, the European Union’s citizens are renewing their continental parliament. Among the countries that will participate in the poles is Italy (voting on May 26) — one of the founding members of the EU, alongside France, Germany, Belgium, Netherlands and Luxembourg. Due to the very nature of cryptocurrencies, it's tough to get a correct figure of the actual penetration of these technologies in a single country. However, relying on some proxies — as in the chart below — it is likely that the Bel Paese (the Beautiful Country) would fall outside the leading European group. …

The initial coin offerings (ICO) sector is showing signs of an uptick due to positive investor sentiment, apparently spurred by the recent crypto market rally. The data was revealed in a new report from token rating platform ICObench, shared with Cointelegraph on May 25. Providing data as of May 21, the report notes that the success rate of ICOs has increased, ostensibly reflecting a rise in projects’ quality. 85% of total funds raised so far in May reportedly belong to projects with a high (3-3.5) rating — as compared with 68% in April. According to ICObench’s data, the number of …

The Atlanta division of the United States district court of the northern district of Georgia claims in an order published on May 20 on Twitter by lawyer Stephen Palley that Rapper T.I. — real name Clifford Joseph Harris Jr. — sold unregistered securities in his FLiK initial coin offering (ICO). According to the document published by Palley, although the flik tokens had additional functionality (such as granting access to events), the token holders were promised profits from the work of the company. Harris’ business partner Ryan Felton allegedly said on social media: “FLiK tokens will be redeemable for $3.99 in …

Coming every Sunday, the Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions, and much more — a week on Cointelegraph in one link. Top Stories This Week Bitstamp Starts Investigation After Large BTC Sell Leads to $250 Million Liquidated on BitMEX Major crypto exchange Bitstamp launched an investigation this week after a large bitcoin (BTC) sell order heavily impacted its order book. Bitstamp reported on the execution of the large bitcoin sell order from BTC to United States dollars, without specifying …

One of the most significant introductions that blockchain has made available in recent years is adding new tools through which companies can raise capital. The technology has made it possible to raise funds for a project from investors of just about any pocket size through initial coin offerings (ICOs) as well as security token offerings (STOs). Typically, these investors put in their money not just in return for a big payday, but they’re usually believers in the project as well. These investors form the community around which new projects are built. This is the concept that popularized the colloquial term …

Purported bitcoin (BTC) exchange Goxtrade has been accused of being a scam, technology news publication TechCrunch reported on May 17. Chief among the report’s revelations is that Goxtrade takes photos of unaffiliated people from social media sites and compiles them to make its online staff gallery. Goxtrade reportedly even retains some of their real names. Amber Baldet, co-founder of blockchain startup Clovyr, is one person whose name and picture were featured on Goxtrade’s staff roster. She responded to the appearance on Twitter: “Fraud alert: I am not a developer at Goxtrade and probably their entire business is a lie.” In …

Blockchain startups RepuX and JoyToken have reportedly pulled a joint initial coin offering (ICO) exit scam, according to an exposé by Hard Fork of The Next Web (TNW) on May 16. RepuX and JoyToken reportedly ran their ICO promotions during March and April of 2018, and are now walking away with $4.7 million and $3.3 million, respectively. As far as the startups’ stated plans were concerned, Hard Fork reports: “RepuX claimed that it was trying to build what it called a ‘blockchain-powered data marketplace,’ while JoyToken was trying to create a decentralized gambling platform, powered by its own JOY token.” …

Lobbying groups are urging the Reserve Bank of India (RBI) to allow crypto-related products to be tested in its regulatory sandbox, Indian daily The Economic Times reported on May 16. The RBI’s proposed framework, unveiled last month, would allow blockchain technology to be tested on a small number of consumers — but cryptocurrencies, exchanges and initial coin offerings are excluded. Nasscom, a trade association of Indian IT companies, is calling for the regulator to rethink, and argues the RBI would better understand the risks associated with crypto by including it in the sandbox. The organization said: “Since cryptocoins and tokens …