UK Cryptocurrency Bank, China’s New Password Law, and Other Recent Crypto News

| January 3, 2020 10:38 am PDT

The New Year has started, and we’ve already seen some action in the crypto world. Bitcoin dropped to $6,800 briefly, only to bounce back almost immediately and return to $7,200-7,300 levels.

The other big currencies followed a similar pattern, and it will be interesting to see where the prices go in the next several days.

As always, I won’t try to predict that movement in my weekly recap of the most important crypto news. Instead, I will cover events and announcements that could affect the long-term future of the industry or are simply interesting.

The First Regulated Crypto Bank in the UK Coming in 2020?

The former Barclays head of technology Mark Hipperson has announced that he will launch the first regulated UK crypto bank in the first quarter of 2020. The project is called Ziglu and could be a game-changer for crypto users from the country.

British customers will be able to open free accounts and use them for various purposes. There will be the option to buy major cryptocurrencies for both trading and long-term investments, as well as transfers to other Ziglu users.

All of your balance will be available through MasterCard debit cards connected to your account. You will be able to pay anywhere in the world and use ATMs.

This is excellent news as it helps the mainstream status of cryptocurrencies because the company has applied to the UK’s Financial Conduct Authority for permission to become an issuer of electronic money.

Initially, Ziglu will be open exclusively to UK customers. The company’s plans are to accept users from other countries in the future. Let’s hope this works out well, as it will open the door to more similar projects.

It also provides an easy, secure, and easily accessible way to operate with cryptocurrencies.

South Korea Is Working on New Crypto Taxing Draft

The end of 2019 brought a lot of confusion in South Korea when it comes to the taxation of cryptocurrencies. The National Tax Service intended to collect taxes from the exchange Bithumb Korea, but the government stated that it can’t happen under the current law.

Simply put, individual profits from crypto transactions are not part of the current income tax legislation. It’s a messy situation that has forced the government to start working on a new draft that will cover crypto in the future.

The South Korean authorities have a lot of work to do and need to define what cryptocurrency is first. Representatives of the government stated that the main goal would be to explore what other countries have done in the past and try to adopt best practices from their experience.

I have mixed feelings about the news, as potential taxes could kill the industry. On the other hand, if crypto is legal, that could open the door to more and more local users.

China Introduces a New Password Law in Preparation for Crypto Future

In one of my previous weekly crypto recaps, I mentioned that China intends to utilize the blockchain technology and launch the first state cryptocurrency in the world. The country is not wasting any time in the process of preparation, as it introduced a new password law at the start of 2020.

That’s another step towards China’s main goal, as it defines a couple of different types of passwords. There will be core, common, and commercial passwords. The first two categories will be regulated by the government, and it also will play a role in the control over commercial passwords.

The idea is to create a secure platform for the future government-released cryptocurrency.

China is already doing some tests with selected banks, and the coin will likely go live in 2020. I’m not sure what to think about it, as it may limit the crypto industry in the Asian country to only the state’s currency and kill the likes of Bitcoin and other independent digital assets.

Ethereum’s Muir Glacier Hard Fork Completed Successfully

As I reported in my last post of 2019, there was a planned Ethereum update for the start of the New Year. The Muir Glacier hard fork was completed successfully on January 2nd, and the difficulty bomb was delayed by more than 20 months.

That should give the development team behind Ethereum more time in the search for a more permanent solution that should prevent the predicted Ice Age.

Let me remind you that the difficulty increase would’ve likely harmed the speed and functionality of ETH to a point in which the currency would’ve been practically unsustainable.

For now, the danger is gone, and I certainly hope to see a long-term resolution of the issues. Ethereum remains the second most popular cryptocurrency, and its health is vital for the whole field.

Final Words

As you can see by the news in this weekly crypto recap, 2020 will be crucial in the development of the whole industry. More and more countries are working on local laws that could open or shut the door for crypto companies.

Let’s hope that the legislators will stay reasonable and try to pave the way for a safe crypto environment for their citizens.

If you’re looking for some additional recommended cryptocurrency tools and resources you can use to stay up to date with all kinds of facets of the crypto world, check out our cryptocurrency resources page.

Jerry Summer

Jerry Summer has a wide-ranging interest in gambling and the gambling industry. He's made a living out of both playing poker and betting on sports.

The English Premier League and the NBA are among Jerry's primary areas of expertise. He's knowledgeable about many other sports, too, along with poker and several casino games.

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